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A03009 Summary:

BILL NOA03009
 
SAME ASSAME AS UNI. S04009
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2023-2024 state fiscal year; provides the authority to abate interest for taxpayers impacted by declared disasters (Part A); clarifies the definition of limited partner for the purposes of the metropolitan commuter transportation mobility tax (Part B); makes an investment tax credit refundable for eligible farmers for five years (Part C); extends and enhances the empire state film production credit and the empire state film post-production credit (Part D); provides for the abatement of penalties for underpayment of estimated tax by a corporation (Part E); requires business entities to submit an application for a COVID-19 capital costs tax credit by September 30, 2023 (Part F); establishes the child care creation and expansion tax credit program (Part G); extends the authorization of a city having a population of one million or more to provide a biotechnology credit (Part H); extends the current corporate tax rates for tax years before January 1, 2027 (Subpart A); extends the rehabilitation of historic properties tax credit through taxable years before January 1, 2030 (Subpart B); extends provisions of law relating to the empire state commercial production tax credit for five years from January 1, 2024 until January 1, 2029 (Subpart C); extends provisions of law relating to the grade No. 6 heating oil conversion tax credit (Subpart D); extends provisions of the NYC musical and theatrical production tax credit and increases the aggregate amount of such credits (Subpart E)(Part I); provides technical corrections to the credit for companies who provide transportation to individuals with disabilities (Subpart A); clarifies brownfield redevelopment tax credit eligibility (Subpart B); provides technical corrections to the pass-through entity tax and city pass-through entity tax (Subpart C)(Part J); simplifies the senior citizen real property tax exemption (Part K); extends provisions of law relating to oil and gas charges (Part L); requires excess proceeds from a tax foreclosure sale to be returned to the former owner (Part M); clarifies the solar or wind energy system appraisal model (Part N); makes permanent the authority of counties to impose sales and compensating use taxes (Part O); eliminates congestion surcharge registration requirements (Part P); provides for the payment of tax on increased quantities of motor fuel and Diesel fuel on which the taxes pursuant to articles 12-a, 13-a and 28 were not previously paid (Part Q); extends the sales tax exemption for certain sales made through vending machines for those operated by business enterprise program participants (Part R); increases the rate of taxes on cigarettes (Part S); revokes certain certificates and provides for civil penalties for refusal of a cigarette and tobacco inspection (Part T); extends the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds (Part U); authorizes the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part V); clarifies the deposit timeframe for moneys deposited by the commissioner of taxation and finance (Part W); requires the New York Racing Association, Inc. to enter into a repayment agreement with the state of New York for the repayment of funds provided by the state for the renovation of Belmont Park racetrack (Part X); clarifies restrictions on the Quick Draw game (Part Y); provides for procedures for the termination of operations of the Catskill regional off-track betting corporation (Part Z); authorizes the utilization of funds in the Capital region off-track betting corporations' capital acquisition funds (Part AA); extends certain provisions of law with regard to pari-mutuel wagering, simulcasting and disposition of revenues (Part BB); conforms to the federal taxation of S-corporations (Part CC).
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A03009 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 4009                                                  A. 3009
 
                SENATE - ASSEMBLY
 
                                    February 1, 2023
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when printed to be committed to the Committee on Finance
 
        IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
          article seven of the Constitution -- read once  and  referred  to  the
          Committee on Ways and Means

        AN  ACT  to amend the tax law, in relation to providing the authority to
          abate interest for taxpayers impacted by declared disasters (Part  A);
          to  amend  the  tax  law,  in relation to clarifying the definition of
          limited partner for the purposes of the metropolitan  commuter  trans-
          portation  mobility tax (Part B); to amend the tax law, in relation to
          making the investment tax credit refundable for eligible  farmers  for
          five  years  (Part C); to amend the tax law, in relation to the empire
          state film production credit and the empire state film post-production
          credit (Part D); to amend the tax law, in relation to the abatement of
          penalties for underpayment of estimated tax by a corporation (Part E);
          to amend the economic development law, in  relation  to  the  COVID-19
          capital  costs  tax  credit  program  (Part  F);  to  amend the social
          services law and the tax law, in relation to creating a tax credit for
          the creation and expansion of child care (Part G); to  amend  the  tax
          law,  in  relation to extending the authorization of any city having a
          population of one million or more to provide  a  biotechnology  credit
          against  the general corporation tax, unincorporated business tax, and
          banking corporation tax of such city (Part H); to amend the  tax  law,
          in  relation to extending the current corporate tax rates (Subpart A);
          to amend the tax law, in relation to extending the  rehabilitation  of
          historic  properties  tax credit (Subpart B); to amend the tax law, in
          relation to extending the empire state commercial production tax cred-
          it for five years (Subpart C); to amend the tax law,  in  relation  to
          extending  provisions  of  law relating to the grade No. 6 heating oil
          conversion tax credit (Subpart D); to amend subpart B of  part  PP  of
          chapter  59  of  the  laws  of 2021 amending the tax law and the state
          finance law relating  to  establishing  the New  York city musical and
          theatrical production tax credit and establishing the New  York  state
          council  on  the arts cultural program fund, in relation to the effec-
          tiveness thereof; and to amend the tax law, in  relation  to  the  New
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12574-01-3

        S. 4009                             2                            A. 3009
 
          York  city  musical  and  theatrical  production  tax  credit (Subpart
          E)(Part I); to amend the tax law,  in  relation  to  making  technical
          corrections  to the credit for companies who provide transportation to
          individuals  with  disabilities  (Subpart A); to amend the tax law, in
          relation to eligibility for the brownfield  redevelopment  tax  credit
          (Subpart  B);  to  amend  the tax law, in relation to the pass-through
          entity tax and city  pass-through  entity  tax  and  making  technical
          corrections  thereto (Subpart C) (Part  J); to amend the real property
          tax law, in relation to simplifying the senior citizens real  property
          tax  exemption  (Part  K);  to  amend chapter 540 of the laws of 1992,
          amending the real property tax law relating to oil and gas charges, in
          relation to the effectiveness thereof (Part  L);  to  amend  the  real
          property  tax law, in relation to requiring excess proceeds from a tax
          foreclosure sale to be returned to the former owner (Part M); to amend
          the real property tax law and the state administrative procedure  act,
          in  relation  to  clarifying the solar or wind energy system appraisal
          model (Part N); to amend the tax law, in relation to the authority  of
          counties  to  impose  sales and compensating use taxes permanently; to
          amend chapter 67 of the laws of 2015, relating to authorizing the city
          of Yonkers to impose additional sales tax, in relation to  the  effec-
          tiveness  thereof;  to  amend section 2 of item R of subpart C of part
          XXX of chapter 58 of the laws of 2020 amending the tax law relating to
          extending the expiration of the authorization to the county of Genesee
          to impose an additional  one  percent  of sales and  compensating  use
          taxes,  in  relation  to  making  such  provisions permanent; to amend
          section 2 of item Z of subpart C of part XXX of chapter 58 of the laws
          of 2020 amending the tax law relating to the imposition    of    sales
          and    compensating  use taxes by the county of Monroe, in relation to
          making such provisions permanent; to amend section 4  of  item  EE  of
          subpart  C  of part XXX of chapter 58 of the laws of 2020 amending the
          tax law relating to extending the authorization of the county of Onon-
          daga to impose an  additional  rate  of  sales  and  compensating  use
          taxes,  in  relation  to  making  such  provisions permanent; to amend
          section 2 of item GG of subpart C of part XXX of  chapter  58  of  the
          laws  of 2020 amending the tax law relating to extending the authority
          of the county of Orange to impose an  additional  rate  of  sales  and
          compensating  use  taxes, in relation to making such provisions perma-
          nent; to amend section 3 of item XX of subpart C of part XXX of  chap-
          ter  58 of the laws of 2020 amending the tax law relating to extending
          the authority of the county  of  Ulster  to  impose  an  additional  1
          percent  sales  and  compensating  use tax, in relation to making such
          provisions permanent; and to repeal certain  provisions  of  such  law
          relating  thereto  (Part  O);  to repeal certain provisions of the tax
          law,  relating  to  eliminating  congestion   surcharge   registration
          requirements  (Part  P);  to  amend  the  tax  law, in relation to the
          payment of tax on increased quantities of motor fuel and Diesel  motor
          fuel  on  which  the taxes pursuant to articles 12-A, 13-A and 28 were
          not previously paid (Part Q); to amend the tax  law,  in  relation  to
          extending the sales tax exemption for certain sales made through vend-
          ing machines for those operated by business enterprise program partic-
          ipants  (Part  R); to amend the tax law, in relation to an increase in
          the rate of tax on cigarettes (Part S);  to  amend  the  tax  law,  in
          relation to the revocation of certain certificates and civil penalties
          for  refusal  of a cigarette and tobacco inspection (Part T); to amend
          the tax law and the administrative code of the city of  New  York,  in
          relation  to extending the tax rate reduction under the New York state

        S. 4009                             3                            A. 3009
 
          real estate transfer tax and the New York city real property  transfer
          tax  for  conveyances of real property to existing real estate invest-
          ment funds (Part U); to amend the tax law, in relation  to  permitting
          the  commissioner  of  taxation and finance to seek judicial review of
          decisions of the tax appeals tribunal (Part V);  to  amend  the  state
          finance  law,  in  relation  to  clarifying  the deposit timeframe for
          moneys deposited by the commissioner of taxation and finance (Part W);
          to amend the tax law, in relation to requiring  the  New  York  Racing
          Association,  Inc.  to enter into a repayment agreement with the state
          of New York for the repayment of funds provided by the state  for  the
          renovation of Belmont Park (Part X); to amend the tax law, in relation
          to a keno style lottery game (Part Y); to amend the racing, pari-mutu-
          el  wagering  and  breeding law, in relation to the operations of off-
          track betting corporations (Part Z); to amend the racing,  pari-mutuel
          wagering  and breeding law, in relation to the utilization of funds in
          the Capital region off-track betting corporations' capital acquisition
          funds (Part AA); to amend the racing, pari-mutuel wagering and  breed-
          ing law, in relation to licenses for simulcast facilities, sums relat-
          ing  to track simulcast, simulcast of out-of-state thoroughbred races,
          simulcasting of races run by out-of-state harness tracks and  distrib-
          utions  of  wagers;  to amend chapter 281 of the laws of 1994 amending
          the racing, pari-mutuel wagering  and  breeding  law  and  other  laws
          relating  to  simulcasting;  to  amend chapter 346 of the laws of 1990
          amending the racing, pari-mutuel wagering and breeding law  and  other
          laws  relating to simulcasting and the imposition of certain taxes, in
          relation to extending certain provisions thereof;  and  to  amend  the
          racing, pari- mutuel wagering and breeding law, in relation to extend-
          ing certain provisions thereof (Part BB); and to amend the tax law, in
          relation to conforming to the federal taxation of S corporations (Part
          CC)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law major  components  of  legislation
     2  which are necessary to implement the state fiscal plan for the 2023-2024
     3  state  fiscal  year.  Each  component  is wholly contained within a Part
     4  identified as Parts A through CC. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part.   Any provision in  any  section  contained  within  a  Part,
     7  including  the  effective date of the Part, which makes a reference to a
     8  section "of this act", when used  in  connection  with  that  particular
     9  component,  shall  be  deemed  to  mean  and  refer to the corresponding
    10  section of the Part in which it is found. Section three of this act sets
    11  forth the general effective date of this act.
 
    12                                   PART A
 
    13    Section 1. The opening paragraph of paragraph a of  subdivision  twen-
    14  ty-eighth  of  section  171 of the tax law, as amended by chapter 451 of
    15  the laws of 2022, is amended to read as follows:
    16    [In the case of a taxpayer who is determined for federal tax  purposes
    17  under  the  provisions  of] Have the authority to postpone certain dead-
    18  lines for a period of up to ninety days, or  longer  when  necessary  to
    19  align  with  relief provided by the Internal Revenue Service pursuant to

        S. 4009                             4                            A. 3009
 
     1  section seven thousand five hundred eight-A of the internal revenue code
     2  [to be affected by a presidentially declared disaster, or  who],  for  a
     3  taxpayer who is determined [under regulations promulgated by the commis-
     4  sioner]  to  be  affected  by a presidentially declared disaster or by a
     5  disaster emergency declared by the governor[, have authority to  provide
     6  that a period of up to ninety days, or a longer period when necessary to
     7  align with relief that has already been provided by the Internal Revenue
     8  Service  under  the  authority  to postpone certain deadlines in section
     9  seven thousand five hundred eight-A of the internal revenue code,  may].
    10  Any extension period provided pursuant to the authority in this subdivi-
    11  sion  shall  be disregarded in determining under the tax law, or under a
    12  law enacted pursuant to the authority of the tax law or  former  article
    13  2-E  of  the general city law where administered by the commissioner, in
    14  respect of any tax liability (including  any  interest,  penalty,  addi-
    15  tional amount, or addition to the tax) of such taxpayer:
    16    §  2.  Paragraph  c of subdivision twenty-eighth of section 171 of the
    17  tax law, as added by chapter 8 of the laws of 1998, is amended  to  read
    18  as follows:
    19    c.  Definitions.  1. Presidentially declared disaster. For purposes of
    20  this subdivision, the term "presidentially declared disaster" means  any
    21  disaster which, with respect to an area, resulted in a subsequent deter-
    22  mination  by  the president of the United States that such area warrants
    23  assistance by the federal government under the disaster relief and emer-
    24  gency assistance act.
    25    2. Taxpayer. For purposes of this  subdivision,  the  term  "taxpayer"
    26  means any person or entity required to file a return or remit any tax to
    27  the commissioner pursuant to this chapter.
    28    §  3.  Subdivision  twenty-eighth  of  section  171  of the tax law is
    29  amended by adding a new paragraph d to read as follows:
    30    d. Where a taxpayer who,  pursuant  to  section  seven  thousand  five
    31  hundred  eight-a of the internal revenue code, is determined for federal
    32  tax purposes to be affected by a presidentially  declared  disaster,  or
    33  who is determined to be affected by a disaster emergency declared by the
    34  governor, but the commissioner has not postponed a tax deadline pursuant
    35  to  the authority in  paragraph a of this subdivision due to such disas-
    36  ter, the commissioner may abate any amount of interest from  the  under-
    37  payment  of  any tax administered by the commissioner under this chapter
    38  that accrued for the period during which the taxpayer was unable to meet
    39  such deadline due to direct impacts of the disaster.
    40    § 4. This act shall take effect immediately.
 
    41                                   PART B
 
    42    Section 1. Subsection (e) of section 800 of the tax law, as  added  by
    43  section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
    44  read as follows:
    45    (e) Net earnings from self-employment. Net earnings from  self-employ-
    46  ment  has  the  same  meaning as in section 1402 of the internal revenue
    47  code, provided, however, that for purposes of  determining  whether  the
    48  exclusion  pursuant to paragraph 13 of subsection (a) of section 1402 of
    49  the internal revenue code applies, an individual shall not be considered
    50  a limited partner if the individual, directly or indirectly, takes  part
    51  in  the  control, or participates in the management or operations of the
    52  partnership such that the individual is not a passive investor,  regard-
    53  less  of  the individual's title or characterization in a partnership or
    54  operating agreement.

        S. 4009                             5                            A. 3009
 
     1    § 2. This act shall take effect immediately.
 
     2                                   PART C

     3    Section  1. Paragraph (d) of subdivision 1 of section 210-B of the tax
     4  law, as amended by section 31 of part T of chapter 59  of  the  laws  of
     5  2015, is amended to read as follows:
     6    (d) Except as otherwise provided in this paragraph, the credit allowed
     7  under this subdivision for any taxable year shall not reduce the tax due
     8  for such year to less than the fixed dollar minimum amount prescribed in
     9  paragraph  (d)  of  subdivision  one  of section two hundred ten of this
    10  article. However, if the amount of credit allowable under this  subdivi-
    11  sion  for  any  taxable  year  reduces  the tax to such amount or if the
    12  taxpayer otherwise pays tax based on the fixed  dollar  minimum  amount,
    13  any  amount  of  credit  allowed  for a taxable year commencing prior to
    14  January first, nineteen hundred eighty-seven and not deductible in  such
    15  taxable  year may be carried over to the following year or years and may
    16  be deducted from the taxpayer's tax for such year or  years  but  in  no
    17  event  shall  such credit be carried over to taxable years commencing on
    18  or after January first, two thousand  two,  and  any  amount  of  credit
    19  allowed  for  a taxable year commencing on or after January first, nine-
    20  teen hundred eighty-seven and not deductible in such year may be carried
    21  over to the fifteen taxable years next following such taxable  year  and
    22  may be deducted from the taxpayer's tax for such year or years.  In lieu
    23  of  such carryover, (i) any such taxpayer which qualifies as a new busi-
    24  ness under paragraph (f) of this subdivision  may  elect  to  treat  the
    25  amount  of  such  carryover  as  an overpayment of tax to be credited or
    26  refunded in accordance with  the  provisions  of  section  one  thousand
    27  eighty-six of this chapter, and (ii) any such taxpayer that is an eligi-
    28  ble  farmer,  as  defined in subdivision eleven of this section, may for
    29  taxable years beginning before January first, two thousand twenty-eight,
    30  elect to treat the amount of such carryover as an overpayment of tax  to
    31  be credited or refunded in accordance with the provisions of section one
    32  thousand  eighty-six  of this chapter, provided, however, the provisions
    33  of subsection (c) of section one thousand eighty-eight of  this  chapter
    34  notwithstanding, no interest shall be paid thereon.
    35    §  2.  Paragraph 5 of subsection (a) of section 606 of the tax law, as
    36  amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
    37  follows:
    38    (5)  If  the  amount of credit allowable under this subsection for any
    39  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    40  allowed  for  a taxable year commencing prior to January first, nineteen
    41  hundred eighty-seven may be carried over to the following year or  years
    42  and  may be deducted from the taxpayer's tax for such year or years, but
    43  in no event shall such credit be carried over to taxable years  commenc-
    44  ing  on  or  after January first, nineteen hundred ninety-seven, and any
    45  amount of credit allowed for a taxable year commencing on or after Janu-
    46  ary first, nineteen hundred eighty-seven and not deductible in such year
    47  may be carried over to the ten taxable years next following such taxable
    48  year and may be deducted from the taxpayer's tax for such year or years.
    49  In lieu of carrying over any such excess, (A) a taxpayer  who  qualifies
    50  as  an  owner  of  a  new business for purposes of paragraph ten of this
    51  subsection may, at [his] the taxpayer's option, receive such excess as a
    52  refund, and (B) a taxpayer that is an  eligible  farmer  as  defined  in
    53  subsection  (n) of this section may, at the taxpayer's option, for taxa-
    54  ble years beginning before  January  first,  two  thousand  twenty-eight

        S. 4009                             6                            A. 3009
 
     1  receive  such excess as a refund. Any refund paid pursuant to this para-
     2  graph shall be deemed to be  a  refund  of  an  overpayment  of  tax  as
     3  provided  in  section  six hundred eighty-six of this article, provided,
     4  however, that no interest shall be paid thereon.
     5    §  3.  This  act  shall  take effect immediately, and apply to taxable
     6  years beginning on or after January 1, 2023.

     7                                   PART D
 
     8    Section 1.  Paragraph 2 of subdivision (a) of section 24  of  the  tax
     9  law,  as  separately amended by sections 1 and 2 of part M of chapter 59
    10  of the laws of 2020, is amended to read as follows:
    11    (2) The amount of the credit shall be the product (or pro  rata  share
    12  of  the  product,  in the case of a member of a partnership) of [twenty-
    13  five] thirty percent, or thirty-five percent in the case of an  eligible
    14  relocated  television series, and the qualified production costs paid or
    15  incurred in the production of a qualified film, provided that:  (i)  the
    16  qualified  production  costs  (excluding  post production costs) paid or
    17  incurred which are attributable to the use of tangible property  or  the
    18  performance  of  services at a qualified film production facility in the
    19  production of such qualified film equal or exceed  seventy-five  percent
    20  of  the  production  costs  (excluding  post  production  costs) paid or
    21  incurred which are attributable to the use of tangible property  or  the
    22  performance of services at any film production facility within and with-
    23  out  the state in the production of such qualified film, and (ii) except
    24  with respect to a  qualified  independent  film  production  company  or
    25  pilot,  at least ten percent of the total principal photography shooting
    26  days spent in the production of such qualified film must be spent  at  a
    27  qualified film production facility. However, if the qualified production
    28  costs  (excluding  post  production costs) which are attributable to the
    29  use of tangible property or the performance of services at  a  qualified
    30  film  production  facility  in  the production of such qualified film is
    31  less than three million dollars,  then  the  portion  of  the  qualified
    32  production  costs  attributable  to  the use of tangible property or the
    33  performance of services in the production of such qualified film outside
    34  of a qualified film production facility shall be  allowed  only  if  the
    35  shooting days spent in New York outside of a film production facility in
    36  the  production  of  such  qualified  film  equal or exceed seventy-five
    37  percent of the total shooting days spent within  and  without  New  York
    38  outside  of  a film production facility in the production of such quali-
    39  fied film. The credit shall be allowed for the taxable year in which the
    40  production of such qualified film is completed. However, in the case  of
    41  a  qualified  film that receives funds from additional pool 2, no credit
    42  shall be claimed before the later of (1) the taxable year the production
    43  of the qualified film is complete,  or  (2)  the  [first]  taxable  year
    44  [beginning  immediately  after  the]  that  includes the last day of the
    45  allocation year for which the film has  been  allocated  credit  by  the
    46  governor's  office for motion picture and television development. If the
    47  amount of the credit is at least one million dollars but less than  five
    48  million  dollars,  the  credit  shall  be claimed over a two year period
    49  beginning in the first taxable year in which the credit may  be  claimed
    50  and  in the next succeeding taxable year, with one-half of the amount of
    51  credit allowed being claimed in each year. If the amount of  the  credit
    52  is  at  least  five  million dollars, the credit shall be claimed over a
    53  three year period beginning in the first taxable year in which the cred-
    54  it may be claimed and in the next two  succeeding  taxable  years,  with

        S. 4009                             7                            A. 3009
 
     1  one-third  of  the  amount  of  the credit allowed being claimed in each
     2  year.
     3    §  2.  Paragraph 5 of subdivision (a) of section 24 of the tax law, as
     4  amended by section 2 of part M of chapter 59 of the  laws  of  2022,  is
     5  amended to read as follows:
     6    (5)  For the period two thousand fifteen through two thousand [twenty-
     7  nine] thirty-four, in addition to the amount of  credit  established  in
     8  paragraph  two of this subdivision, a taxpayer shall be allowed a credit
     9  equal to the product (or pro rata share of the product, in the case of a
    10  member of a partnership) of ten percent and the amount of wages or sala-
    11  ries paid to individuals directly employed (excluding those employed  as
    12  writers,  directors, [music directors] composers, producers and perform-
    13  ers, including background actors with no scripted lines) by a  qualified
    14  film  production  company  or  a  qualified  independent film production
    15  company for services performed by those individuals in one of the  coun-
    16  ties  specified  in  this  paragraph in connection with a qualified film
    17  with a minimum budget of five hundred thousand dollars. For purposes  of
    18  this additional credit, the services must be performed in one or more of
    19  the  following  counties: Albany, Allegany, Broome, Cattaraugus, Cayuga,
    20  Chautauqua, Chemung, Chenango, Clinton,  Columbia,  Cortland,  Delaware,
    21  Dutchess,  Erie,  Essex,  Franklin,  Fulton,  Genesee, Greene, Hamilton,
    22  Herkimer, Jefferson, Lewis,  Livingston,  Madison,  Monroe,  Montgomery,
    23  Niagara,  Oneida,  Onondaga,  Ontario,  Orange, Orleans, Oswego, Otsego,
    24  Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler,  Seneca,
    25  St.  Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Wash-
    26  ington, Wayne, Wyoming, or Yates. The aggregate amount  of  tax  credits
    27  allowed  pursuant  to  the  authority  of  this  paragraph shall be five
    28  million dollars each year during the period two thousand fifteen through
    29  two thousand [twenty-nine] thirty-four of  the  annual  allocation  made
    30  available  to  the program pursuant to paragraph four of subdivision (e)
    31  of this section. Such aggregate amount of credits shall be allocated  by
    32  the  governor's  office  for  motion  picture and television development
    33  among taxpayers in order of priority based upon the date  of  filing  an
    34  application  for  allocation of film production credit with such office.
    35  If the total amount of allocated credits applied for  under  this  para-
    36  graph  in  any  year exceeds the aggregate amount of tax credits allowed
    37  for such year under this paragraph, such  excess  shall  be  treated  as
    38  having  been applied for on the first day of the next year. If the total
    39  amount of allocated tax credits applied for under this paragraph at  the
    40  conclusion  of any year is less than five million dollars, the remainder
    41  shall be treated as part of the annual allocation made available to  the
    42  program  pursuant  to paragraph four of subdivision (e) of this section.
    43  However, in no event may the total of the credits allocated  under  this
    44  paragraph  and the credits allocated under paragraph five of subdivision
    45  (a) of section thirty-one of this article exceed five million dollars in
    46  any year during the period two thousand  fifteen  through  two  thousand
    47  [twenty-nine] thirty-four.
    48    § 2-a. Paragraph 1 of subdivision (b) of section 24 of the tax law, as
    49  amended  by  section  4  of part B of chapter 59 of the laws of 2013, is
    50  amended to read as follows:
    51    (1) "Qualified production costs" means production costs  only  to  the
    52  extent  such  costs  are attributable to the use of tangible property or
    53  the performance of services within the state directly and  predominantly
    54  in  the  production  (including pre-production and post production) of a
    55  qualified film.   The aggregate   total  eligible  qualified  production
    56  costs for producers, writers, directors, actors, and composers shall not

        S. 4009                             8                            A. 3009
 
     1  exceed  forty  percent of the aggregate sum total of all other qualified
     2  production costs.
     3    §  3.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
     4  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
     5  amended to read as follows:
     6    (2)  "Production costs" means any costs for tangible property used and
     7  services performed directly and predominantly in the production (includ-
     8  ing  pre-production  and  post  production)   of   a   qualified   film.
     9  "Production  costs"  shall  not include (i) costs for a story, script or
    10  scenario to be used for a qualified film and (ii) wages or  salaries  or
    11  other  compensation  for writers, directors, including [music directors]
    12  composers, producers and performers (other than background  actors  with
    13  no  scripted  lines)  to  the  extent  those  wages or salaries or other
    14  compensation  exceed  five  hundred  thousand  dollars  per  individual.
    15  "Production  costs"  generally  include  technical  and  crew production
    16  costs, such as expenditures for film production facilities, or any  part
    17  thereof, props, makeup, wardrobe, film processing, camera, sound record-
    18  ing, set construction, lighting, shooting, editing and meals.
    19    §  4.  Paragraph 8 of subdivision (b) of section 24 of the tax law, as
    20  added by section 2 of part B of chapter 59  of  the  laws  of  2013,  is
    21  amended to read as follows:
    22    (8)  "Relocated television production" shall mean, notwithstanding the
    23  limitations in subparagraph (i) of paragraph three of this  subdivision,
    24  a television production that is a talk or variety program that filmed at
    25  least  [five] two seasons outside the state prior to its first relocated
    26  season in New York, the episodes are filmed before a studio audience  of
    27  two  hundred or more, and the relocated television production incurs (i)
    28  at least thirty million dollars in annual production costs in the state,
    29  or (ii) at least ten million dollars in capital expenditures at a quali-
    30  fied production facility in the state.
    31    § 5. Subdivision (b) of section 24 of the tax law is amended by adding
    32  a new paragraph 9 to read as follows:
    33    (9) "Eligible relocated television series" shall mean  the  first  two
    34  years of a regularly occurring production intended to run in its initial
    35  broadcast,  regardless  of  the medium or mode of its distribution, in a
    36  series of narrative and/or thematically related episodes, each of  which
    37  has  a  running  time of at least thirty minutes in length (inclusive of
    38  commercial advertisement and interstitial programming, if any). For  the
    39  purposes  of  this  definition only, a television series produced by and
    40  for media services providers  described  as  streaming  services  and/or
    41  digital  platforms  (and excluding network/cable) shall mean a regularly
    42  occurring production intended to run in its initial release in a  series
    43  of  narrative and/or thematically related episodes, the aggregate length
    44  of which is at least seventy-five minutes, although the  episodes  them-
    45  selves  may  vary  in  duration  from  the  thirty minutes specified for
    46  network/cable production, which had filmed six  episodes  of  the  tele-
    47  vision  series  outside the state immediately prior to relocating to the
    48  state, where each episode of the  television series had a minimum budget
    49  of at least one million dollars.
    50    § 6. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
    51  amended  by  section  3  of part M of chapter 59 of the laws of 2022, is
    52  amended to read as follows:
    53    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
    54  subdivision (a) of this section shall be increased by an additional four
    55  hundred twenty million dollars in each year starting in two thousand ten
    56  through  two  thousand  [twenty-nine]  twenty-three  and  seven  hundred

        S. 4009                             9                            A. 3009
 
     1  million  dollars  each year starting in two thousand twenty-four through
     2  two thousand thirty-four, provided however, seven million dollars of the
     3  annual allocation shall be available for  the  empire  state  film  post
     4  production  credit pursuant to section thirty-one of this article in two
     5  thousand thirteen and two thousand fourteen, twenty-five million dollars
     6  of the annual allocation shall be available for the  empire  state  film
     7  post production credit pursuant to section thirty-one of this article in
     8  each  year  starting in two thousand fifteen through two thousand [twen-
     9  ty-nine and] twenty-three, and forty-five millions dollars of the annual
    10  allocation shall be available for the empire state film post  production
    11  credit  pursuant  to  section  thirty-one  of  this article in each year
    12  starting in two thousand twenty-four through two  thousand  thirty-four.
    13  Provided further, five million dollars of the annual allocation shall be
    14  made available for the television writers' and directors' fees and sala-
    15  ries  credit  pursuant  to section twenty-four-b of this article in each
    16  year starting in two thousand twenty through two thousand  [twenty-nine]
    17  thirty-four. This amount shall be allocated by the governor's office for
    18  motion  picture and television development among taxpayers in accordance
    19  with subdivision (a) of this section. If the  commissioner  of  economic
    20  development  determines  that the aggregate amount of tax credits avail-
    21  able from additional pool 2 for the empire  state  film  production  tax
    22  credit  have  been previously allocated, and determines that the pending
    23  applications from eligible applicants for the  empire  state  film  post
    24  production  tax credit pursuant to section thirty-one of this article is
    25  insufficient to utilize the balance of  unallocated  empire  state  film
    26  post  production  tax  credits from such pool, the remainder, after such
    27  pending applications are considered, shall be made available  for  allo-
    28  cation  in  the  empire  state film tax credit pursuant to this section,
    29  subdivision twenty of section two hundred ten-B and subsection  (gg)  of
    30  section  six  hundred  six of this chapter. Also, if the commissioner of
    31  economic development determines that the aggregate amount of tax credits
    32  available from  additional  pool  2  for  the  empire  state  film  post
    33  production  tax  credit  have  been previously allocated, and determines
    34  that the pending applications from eligible applicants  for  the  empire
    35  state  film  production  tax credit pursuant to this section is insuffi-
    36  cient to utilize the balance of unallocated film production tax  credits
    37  from  such  pool,  then all or part of the remainder, after such pending
    38  applications are considered, shall be made available for allocation  for
    39  the  empire  state film post production credit pursuant to this section,
    40  subdivision thirty-two of section two hundred ten-B and subsection  (qq)
    41  of  section  six  hundred six of this chapter. The governor's office for
    42  motion picture and television development must notify taxpayers of their
    43  allocation year and include the allocation year on  the  certificate  of
    44  tax  credit.  Taxpayers eligible to claim a credit must report the allo-
    45  cation year directly on their empire state film  production  credit  tax
    46  form for each year a credit is claimed and include a copy of the certif-
    47  icate  with  their  tax  return.  In  the  case of a qualified film that
    48  receives funds from additional pool 2, no empire state  film  production
    49  credit  shall  be  claimed  before  the  later  of  the taxable year the
    50  production of the qualified film is complete, or the taxable year  imme-
    51  diately  following the allocation year for which the film has been allo-
    52  cated credit by the governor's office for motion picture and  television
    53  development.
    54    §  7.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
    55  amended by section 4 of part M of chapter 59 of the  laws  of  2022,  is
    56  amended to read as follows:

        S. 4009                            10                            A. 3009
 
     1    (4) Additional pool 2 - The aggregate amount of tax credits allowed in
     2  subdivision (a) of this section shall be increased by an additional four
     3  hundred twenty million dollars in each year starting in two thousand ten
     4  through  two  thousand  [twenty-nine]  twenty-three  and  seven  hundred
     5  million  dollars  in  each  year  starting  in  two thousand twenty-four
     6  through  two  thousand  thirty-four,  provided  however,  seven  million
     7  dollars of the annual allocation shall be available for the empire state
     8  film post production credit pursuant to section thirty-one of this arti-
     9  cle  in  two  thousand thirteen and two thousand fourteen [and], twenty-
    10  five million dollars of the annual allocation shall be available for the
    11  empire state film post production credit pursuant to section  thirty-one
    12  of  this  article  in each year starting in two thousand fifteen through
    13  two thousand [twenty-nine] twenty-three, and forty-five million  dollars
    14  of  the  annual  allocation shall be available for the empire state film
    15  post production credit pursuant to section thirty-one of this article in
    16  each year starting in two  thousand  twenty-four  through  two  thousand
    17  thirty-four. This amount shall be allocated by the governor's office for
    18  motion  picture and television development among taxpayers in accordance
    19  with subdivision (a) of this section. If the  commissioner  of  economic
    20  development  determines  that the aggregate amount of tax credits avail-
    21  able from additional pool 2 for the empire  state  film  production  tax
    22  credit  have  been previously allocated, and determines that the pending
    23  applications from eligible applicants for the  empire  state  film  post
    24  production  tax credit pursuant to section thirty-one of this article is
    25  insufficient to utilize the balance of  unallocated  empire  state  film
    26  post  production  tax  credits from such pool, the remainder, after such
    27  pending applications are considered, shall be made available  for  allo-
    28  cation  in  the  empire  state film tax credit pursuant to this section,
    29  subdivision twenty of section two hundred ten-B and subsection  (gg)  of
    30  section  six  hundred  six of this chapter. Also, if the commissioner of
    31  economic development determines that the aggregate amount of tax credits
    32  available from  additional  pool  2  for  the  empire  state  film  post
    33  production  tax  credit  have  been previously allocated, and determines
    34  that the pending applications from eligible applicants  for  the  empire
    35  state  film  production  tax credit pursuant to this section is insuffi-
    36  cient to utilize the balance of unallocated film production tax  credits
    37  from  such  pool,  then all or part of the remainder, after such pending
    38  applications are considered, shall be made available for allocation  for
    39  the  empire  state film post production credit pursuant to this section,
    40  subdivision thirty-two of section two hundred ten-B and subsection  (qq)
    41  of  section  six  hundred six of this chapter. The governor's office for
    42  motion picture and television development must notify taxpayers of their
    43  allocation year and include the allocation year on  the  certificate  of
    44  tax  credit.  Taxpayers eligible to claim a credit must report the allo-
    45  cation year directly on their empire state film  production  credit  tax
    46  form for each year a credit is claimed and include a copy of the certif-
    47  icate  with  their  tax  return.  In  the  case of a qualified film that
    48  receives funds from additional pool 2, no empire state  film  production
    49  credit  shall  be  claimed  before  the  later  of  the taxable year the
    50  production of the qualified film is complete, or the taxable year  imme-
    51  diately  following the allocation year for which the film has been allo-
    52  cated credit by the governor's office for motion picture and  television
    53  development.
    54    §  8.  Paragraph 2 of subdivision (a) of section 31 of the tax law, as
    55  amended by section 5 of part M of chapter 59 of the  laws  of  2020,  is
    56  amended to read as follows:

        S. 4009                            11                            A. 3009
 
     1    (2)  The  amount of the credit shall be the product (or pro rata share
     2  of the product, in the case of a member of a  partnership)  of  [twenty-
     3  five] thirty percent and the qualified post production costs paid in the
     4  production  of  a qualified film at a qualified post production facility
     5  located  within  the  metropolitan  commuter  transportation district as
     6  defined in section twelve hundred sixty-two of  the  public  authorities
     7  law  or  [thirty]  thirty-five percent and the qualified post production
     8  costs paid in the production of a qualified film  at  a  qualified  post
     9  production facility located elsewhere in the state.
    10    §  9.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
    11  amended by section 6 of part M of chapter 59 of the  laws  of  2022,  is
    12  amended to read as follows:
    13    (6)  For the period two thousand fifteen through two thousand [twenty-
    14  nine] thirty-four, in addition to the amount of  credit  established  in
    15  paragraph  two of this subdivision, a taxpayer shall be allowed a credit
    16  equal to the product (or pro rata share of the product, in the case of a
    17  member of a partnership) of ten percent and the amount of wages or sala-
    18  ries paid to individuals directly employed (excluding those employed  as
    19  writers,  directors, [music directors] composers, producers and perform-
    20  ers, including background actors with no scripted  lines)  for  services
    21  performed  by those individuals in one of the counties specified in this
    22  paragraph in connection with the post production  work  on  a  qualified
    23  film  with a minimum budget of five hundred thousand dollars at a quali-
    24  fied post production facility in one of  the  counties  listed  in  this
    25  paragraph.  For purposes of this additional credit, the services must be
    26  performed in one or more of the following  counties:  Albany,  Allegany,
    27  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
    28  Columbia, Cortland, Delaware, Dutchess, Erie, Essex,  Franklin,  Fulton,
    29  Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madi-
    30  son,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga, Ontario, Orange,
    31  Orleans, Oswego,  Otsego,  Putnam,  Rensselaer,  Saratoga,  Schenectady,
    32  Schoharie,  Schuyler,  Seneca,  St.  Lawrence, Steuben, Sullivan, Tioga,
    33  Tompkins, Ulster, Warren, Washington,  Wayne,  Wyoming,  or  Yates.  The
    34  aggregate  amount  of  tax  credits allowed pursuant to the authority of
    35  this paragraph shall be five million dollars each year during the period
    36  two thousand fifteen through two thousand [twenty-nine]  thirty-four  of
    37  the  annual  allocation  made  available  to  the empire state film post
    38  production credit pursuant to  paragraph  four  of  subdivision  (e)  of
    39  section  twenty-four  of  this article. Such aggregate amount of credits
    40  shall be allocated by the governor's office for motion picture and tele-
    41  vision development among taxpayers in order of priority based  upon  the
    42  date  of  filing an application for allocation of post production credit
    43  with such office. If the total amount of allocated credits  applied  for
    44  under  this  paragraph  in  any year exceeds the aggregate amount of tax
    45  credits allowed for such year under this paragraph, such excess shall be
    46  treated as having been applied for on the first day of the next year. If
    47  the total amount of allocated tax credits applied for under  this  para-
    48  graph  at  the conclusion of any year is less than five million dollars,
    49  the remainder shall be treated as part of the annual allocation for  two
    50  thousand  seventeen  made  available  to  the  empire  state  film  post
    51  production credit pursuant to  paragraph  four  of  subdivision  (e)  of
    52  section  twenty-four of this article. However, in no event may the total
    53  of the credits allocated under this paragraph and the credits  allocated
    54  under  paragraph  five of subdivision (a) of section twenty-four of this
    55  article exceed five million dollars in any year during  the  period  two
    56  thousand fifteen through two thousand [twenty-nine] thirty-four.

        S. 4009                            12                            A. 3009
 
     1    §  10. This act shall take effect immediately for new initial applica-
     2  tions received on or after such effective date; provided, however,  that
     3  the  amendments  to  paragraph 4 of subdivision (e) of section 24 of the
     4  tax law made by section six of this act shall take effect  on  the  same
     5  date  and  in the same manner as section 6 of chapter 683 of the laws of
     6  2019, as amended, takes effect.

     7                                   PART E
 
     8    Section 1. Section 1085 of the tax law is  amended  by  adding  a  new
     9  subsection (e-1) to read as follows:
    10    (e-1)  Waiver  of addition for underpayment of estimated tax. No addi-
    11  tion to tax shall be imposed under subsection (c) of this  section  with
    12  respect  to  any  underpayment to the extent the commissioner determines
    13  that by reason of casualty, disaster or other unusual circumstances  the
    14  imposition  of  such  addition  to  tax would be against equity and good
    15  conscience.
    16    § 2. This act shall take effect immediately.
 
    17                                   PART F
 
    18    Section 1. Subdivision 4 of section 484 of  the  economic  development
    19  law,  as added by section 1 of part E of chapter 59 of the laws of 2022,
    20  is amended to read as follows:
    21    4. The business entity must submit its application by  [March  thirty-
    22  first] September thirtieth, two thousand twenty-three.
    23    § 2. This act shall take effect immediately.
 
    24                                   PART G
 
    25    Section 1. Article 6 of the social services law is amended by adding a
    26  new title 1-A to read as follows:
    27                                  TITLE 1-A
    28            CHILD CARE CREATION AND EXPANSION TAX CREDIT PROGRAM
    29  Section 394.   Short title.
    30          394-a. Definitions.
    31          394-b. Eligibility criteria.
    32          394-c. Application and approval process.
    33          394-d. Child care creation and expansion tax credit.
    34          394-e. Allocation of credit.
    35          394-f. Powers and duties of the commissioner.
    36          394-g. Maintenance of records.
    37    §  394. Short title. This title shall be known and may be cited as the
    38  "child care creation and expansion tax credit program act".
    39    § 394-a. Definitions. For the purposes of this title:
    40    1. "Certificate of tax credit" shall mean the  document  issued  to  a
    41  business  entity  by  the  office after the office has verified that the
    42  business entity has met all  applicable  eligibility  criteria  in  this
    43  title.  The certificate shall specify the exact amount of the tax credit
    44  under this title that a business entity may claim, pursuant  to  section
    45  three hundred ninety-four-d of this title, and the service year.
    46    2.  "Child  care  program"  shall  mean  a  child day care for which a
    47  license or registration to operate such program has been issued  by  the
    48  office pursuant to section three hundred ninety of this article.
    49    3.  "Child  care rate" shall mean the weekly child care subsidy market
    50  rates, based on the eightieth percentile of the 2021-22 New  York  state

        S. 4009                            13                            A. 3009
 
     1  child care market rate survey, for infant and toddler care provided by a
     2  licensed  or  registered  child  care  program, as reflected in the 2022
     3  child care market rate survey report published by the office in  compli-
     4  ance with section 98.45 of title forty-five of the code of federal regu-
     5  lations.
     6    4.  "Child care seats" shall mean the maximum number of children to be
     7  allowed on the premises of a child care program at any  time  that  such
     8  program  is  in  operation  as  specified on the license or registration
     9  issued for such program by the office.
    10    5. "Creates child care" shall mean the making available of child  care
    11  seats  in a child care program by a business entity, directly or through
    12  a third-party, for employees of such business entity, where  such  child
    13  care  program was not available prior to April first, two thousand twen-
    14  ty-three, provided that the costs imposed on  such  employees  for  such
    15  child care program do not exceed forty percent of the child care rate.
    16    6.  "Commissioner"  shall  mean commissioner of the office of children
    17  and family services.
    18    7. "Expands child care" shall mean the increase in the number of child
    19  care seats in a child care program made available by a business  entity,
    20  directly  or through a third party, for employees of such business enti-
    21  ty, provided that such increase requires a new  or  amended  license  or
    22  registration  issued  by  the  office  pursuant to section three hundred
    23  ninety of this article on or after April  first,  two  thousand  twenty-
    24  three,  and,  provided further, that the costs imposed on such employees
    25  for such child care program do not exceed forty  percent  of  the  child
    26  care rate.
    27    8.  "Occupied" shall mean, for each service year in which a child care
    28  program is in operation, the average daily number of children in attend-
    29  ance on the premises of such child care program.
    30    9. "Office" shall mean the office of children and family services.
    31    10. "Service year" shall mean  the  twelve-month  period,  or  portion
    32  thereof,  commencing  on  January  first  and ending on December thirty-
    33  first.
    34    § 394-b. Eligibility criteria. 1. To be  eligible  for  a  tax  credit
    35  under  the child care creation and expansion tax credit program, a busi-
    36  ness entity must:
    37    (a) be a business entity that is required to file a tax return  pursu-
    38  ant to article nine-A, twenty-two or thirty-three of the tax law;
    39    (b) be a child care program, or contract with such child care program,
    40  as  defined  in  this  title  that is licensed or registered pursuant to
    41  section three hundred ninety of this article;
    42    (c) create or expand child care seats, directly  or  through  a  third
    43  party,  for  the  employees  of  such  business entity on or after April
    44  first, two thousand twenty-three and before January first, two  thousand
    45  twenty-five;
    46    (d) operate a business location in New York state;
    47    (e)  be  in  substantial compliance with any child care licensing laws
    48  and regulations related to the entity's business sector  or  other  laws
    49  and regulations as determined by the commissioner; and
    50    (f)  not  owe  past due state taxes or local property taxes unless the
    51  business entity is making payments and complying with an approved  bind-
    52  ing payment agreement entered into with the taxing authority.
    53    §  394-c.  Application and approval process. 1. A business entity must
    54  submit a complete application as prescribed by the commissioner  by  the
    55  thirty-first of January after the end of the service year.

        S. 4009                            14                            A. 3009
 
     1    2.  The  commissioner shall establish procedures for a business entity
     2  to submit applications. As part of the application, each business entity
     3  must:
     4    (a)  provide  evidence  in a form and manner prescribed by the commis-
     5  sioner of their business eligibility;
     6    (b) provide the license or registration issued to the business entity,
     7  directly or through a third party, by the office to operate a child care
     8  program indicating the number of child care seats  created  or,  in  the
     9  case  of a child care program that has experienced an expansion of child
    10  care seats, the license or registration issued by the office demonstrat-
    11  ing such expansion;
    12    (c) provide evidence in a form and manner prescribed  by  the  commis-
    13  sioner establishing:
    14    (i) the total number of child care seats that were occupied during the
    15  service year;
    16    (ii)  of such total number of child care seats that were occupied, the
    17  number of infant child care seats that were occupied and the  number  of
    18  toddler child care seats that were occupied;
    19    (iii)  that,  to the extent the business entity, directly or through a
    20  third party, has expanded child care, the number of child care seats  in
    21  existence  before such expansion and the number of such child care seats
    22  that were occupied before such expansion; and
    23    (iv) that the costs imposed on the  business  entity's  employees  for
    24  such  child  care  program do not exceed forty percent of the child care
    25  rate.
    26    (d) agree to allow the department of taxation and finance to share the
    27  business entity's tax information relevant to the administration of this
    28  title with the office. However, any information shared as  a  result  of
    29  this title shall not be available for disclosure or inspection under the
    30  state freedom of information law;
    31    (e)  allow  the  office and its agents access to any and all books and
    32  records the office may require to monitor compliance; and
    33    (f) agree to provide any additional information required by the office
    34  relevant to this title.
    35    3. After reviewing a business entity's completed final application and
    36  determining that the business entity meets the eligibility  criteria  as
    37  set  forth in this title, the office may issue to that business entity a
    38  certificate of tax credit, which shall set forth the amount of the cred-
    39  it that may be claimed and the service year.
    40    § 394-d. Child care creation and expansion tax  credit.  Allowance  of
    41  credit.  1.  A  business entity in the child care creation and expansion
    42  tax credit program that meets the eligibility  requirements  of  section
    43  three  hundred  ninety-four-b  of  this title may be eligible to claim a
    44  credit for the portion of the service  year  in  which  the  child  care
    45  program  was  in  operation, equal to the sum of: (a) the product of the
    46  number of infant child care seats that have been created or expanded and
    47  twenty percent of the child care rate for such infant child  care  seats
    48  and  (b) the product of the number of toddler child care seats that have
    49  been created or expanded and twenty percent of the child care  rate  for
    50  such  toddler  child  care  seats; provided that such infant and toddler
    51  child care seats are child care seats that are occupied.   Notwithstand-
    52  ing  the preceding sentence, a credit shall not be allowed for more than
    53  twenty-five child care seats that are occupied, and the amount  of  such
    54  credit  may  be reduced as a result of an allocation of available funds,
    55  as described in section three hundred ninety-four-e of this title.

        S. 4009                            15                            A. 3009
 
     1    2. The credit shall be allowed as  provided  in  section  forty-eight,
     2  subdivision fifty-nine of section two hundred ten-B, subsection (ooo) of
     3  section  six hundred six and subdivision (ee) of section fifteen hundred
     4  eleven of the tax law.
     5    §  394-e.  Allocation  of  credit. The aggregate amount of tax credits
     6  allowed under this title, subdivision fifty-nine of section two  hundred
     7  ten-B,  subsection (ooo) of section six hundred six and subdivision (ee)
     8  of section fifteen eleven of the tax law shall  be  twenty-five  million
     9  dollars  each  year  during the period two thousand twenty-three and two
    10  thousand twenty-four. Such aggregate amount of credits  shall  be  allo-
    11  cated  by  the  office  on a pro rata basis to each business entity that
    12  demonstrates eligibility pursuant to section three hundred ninety-four-b
    13  of this title.
    14    § 394-f. Powers and duties of the commissioner.  1.  The  commissioner
    15  may  promulgate  regulations  establishing  an  application  process and
    16  eligibility criteria, which will be applied consistent with the purposes
    17  of this title so as not to exceed the annual  cap  on  tax  credits  set
    18  forth in this title, that, notwithstanding any provisions to the contra-
    19  ry in the state administrative procedure act, may be adopted on an emer-
    20  gency basis.
    21    2.  The  commissioner  shall,  in  consultation with the department of
    22  taxation and finance, develop a certificate of tax credit that shall  be
    23  issued  by  the  commissioner  to  eligible businesses. Such certificate
    24  shall contain such information as required by the department of taxation
    25  and finance.
    26    3. The commissioner shall solely  determine  the  eligibility  of  any
    27  business entity applying for entry into the program and shall remove any
    28  business entity from the program for failing to meet any of the require-
    29  ments set forth in section three hundred ninety-four-b of this title.
    30    § 394-g. Maintenance of records. Each business entity participating in
    31  the  program  shall  keep all relevant records for the duration of their
    32  participation in the program for at least three years.
    33    § 2. The tax law is amended by adding a new  section  48  to  read  as
    34  follows:
    35    §  48.  Child care creation and expansion tax credit. (a) Allowance of
    36  credit. A taxpayer subject to tax under article  nine-A,  twenty-two  or
    37  thirty-three of this chapter shall be allowed a credit against such tax,
    38  pursuant  to  the  provisions  referenced  in  subdivision  (f)  of this
    39  section. The amount of the credit is  equal  to  the  amount  determined
    40  pursuant  to  section three hundred ninety-four-d of the social services
    41  law and shall be claimed in the taxable year that includes the last  day
    42  of  the  service  year  for  which  the credit is calculated. No cost or
    43  expense paid or incurred by the taxpayer that is included as part of the
    44  calculation of this credit shall be the basis of any  other  tax  credit
    45  allowed under this chapter.
    46    (b) Eligibility. To be eligible for the child care creation and expan-
    47  sion  tax  credit,  the taxpayer shall have been issued a certificate of
    48  tax credit by the office of children and  family  services  pursuant  to
    49  section  three  hundred  ninety-four-c  of  the  social  services law. A
    50  taxpayer that is a partner in a partnership, member of a limited liabil-
    51  ity company or shareholder  in  a  subchapter  S  corporation  that  has
    52  received a certificate of tax credit shall be allowed its pro rata share
    53  of  the  credit  earned by the partnership, limited liability company or
    54  subchapter S corporation.
    55    (c) Tax return requirement. The taxpayer shall be required  to  attach
    56  to  its  tax return in the form prescribed by the commissioner, proof of

        S. 4009                            16                            A. 3009

     1  receipt of its certificate of tax credit issued by the  commissioner  of
     2  the office of children and family services.
     3    (d)  Information  sharing. Notwithstanding any provision of this chap-
     4  ter, employees of the office of children and  family  services  and  the
     5  department shall be allowed and are directed to share and exchange:
     6    (1)  information  regarding the credit applied for, allowed or claimed
     7  pursuant to this section and taxpayers that are applying for the  credit
     8  or that are claiming the credit; and
     9    (2)  information  contained  in  or  derived  from  credit claim forms
    10  submitted to the department. Except as provided in paragraph one of this
    11  subdivision, all information exchanged between the  office  of  children
    12  and  family  services and the department shall not be subject to disclo-
    13  sure or inspection under the state's freedom of information law.
    14    (e) Credit recapture. If a certificate of tax  credit  issued  by  the
    15  office of children and family services under title 1-A of article six of
    16  the  social services law is revoked by such office, the amount of credit
    17  described in this section and claimed by  the  taxpayer  prior  to  that
    18  revocation  shall  be added back to tax in the taxable year in which any
    19  such revocation becomes final.
    20    (f) Cross references. For application of the credit  provided  for  in
    21  this section, see the following provisions of this chapter:
    22    (1) article 9-A: section 210-B, subdivision 59;
    23    (2) article 22: section 606, subsection (ooo);
    24    (3) article 33: section 1511, subdivision (ee).
    25    §  3. Section 210-B of the tax law is amended by adding a new subdivi-
    26  sion 59 to read as follows:
    27    59. Child care creation and expansion tax  credit.  (a)  Allowance  of
    28  credit.    A  taxpayer  shall  be  allowed  a  credit, to be computed as
    29  provided in section forty-eight  of  this  chapter,  against  the  taxes
    30  imposed by this article.
    31    (b)  Application  of credit. The credit allowed under this subdivision
    32  for the taxable year shall not reduce the tax due for such year to  less
    33  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    34  section two hundred ten of this article. However, if the amount of cred-
    35  it allowed under this subdivision for the taxable year reduces  the  tax
    36  to  such amount or if the taxpayer otherwise pays tax based on the fixed
    37  dollar minimum amount, any amount of credit thus not deductible in  such
    38  taxable year shall be treated as an overpayment of tax to be credited or
    39  refunded  in  accordance  with  the  provisions  of section one thousand
    40  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    41  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    42  notwithstanding, no interest will be paid thereon.
    43    § 4. Section 606 of the tax law is amended by adding a new  subsection
    44  (ooo) to read as follows:
    45    (ooo)  Child  care creation and expansion tax credit. (1) Allowance of
    46  credit. A taxpayer shall be allowed a credit, to be computed as provided
    47  in section forty-eight of this chapter, against the tax imposed by  this
    48  article.
    49    (2)  Application  of credit. If the amount of the credit allowed under
    50  this subsection for the taxable year exceeds the taxpayer's tax for such
    51  year, the excess shall be treated as an overpayment of tax to be credit-
    52  ed or refunded in accordance with the provisions of section six  hundred
    53  eighty-six  of this article, provided, however, that no interest will be
    54  paid thereon.
    55    § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    56  of the tax law is amended by adding a new clause (l) to read as follows:

        S. 4009                            17                            A. 3009
 
     1  (l) Child care creation and          Amount of credit
     2  expansion tax credit under           under subdivision 59
     3  subsection (ooo)                     of section two hundred
     4                                       ten-B
     5    §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
     6  sion (ee) to read as follows:
     7    (ee) Child care creation and expansion tax credit.  (1)  Allowance  of
     8  credit. A taxpayer shall be allowed a credit, to be computed as provided
     9  in  section forty-eight of this chapter, against the tax imposed by this
    10  article.
    11    (2) Application of credit. The credit allowed under  this  subdivision
    12  shall  not  reduce the tax due for such year to be less than the minimum
    13  fixed by paragraph four of subdivision (a) of  section  fifteen  hundred
    14  two  or  section  fifteen  hundred  two-a  of this article, whichever is
    15  applicable.  However, if the amount of the  credit  allowed  under  this
    16  subdivision  for  any  taxable  year  reduces the taxpayer's tax to such
    17  amount, any amount of credit thus not deductible will be treated  as  an
    18  overpayment  of  tax  to  be credited or refunded in accordance with the
    19  provisions  of  section  one  thousand  eighty-six  of   this   chapter.
    20  Provided,  however,  the  provisions  of  subsection (c) of one thousand
    21  eighty-eight of this chapter notwithstanding, no interest shall be  paid
    22  thereon.
    23    § 7. This act shall take effect immediately.
 
    24                                   PART H
 
    25    Section 1. Paragraph 5 of subdivision (d) of section 1201-a of the tax
    26  law,  as  amended by chapter 260 of the laws of 2015, is amended to read
    27  as follows:
    28    5. Any local law adopted pursuant to this subdivision may provide  for
    29  a  credit  as  authorized  by  this  subdivision  for a maximum of three
    30  consecutive calendar years, provided, however, that any such credit  may
    31  not  apply to taxable years beginning before January first, two thousand
    32  [ten] twenty-three or beginning on or after January first, two  thousand
    33  [nineteen] twenty-six.
    34    § 2. This act shall take effect immediately.
 
    35                                   PART I
 
    36    Section  1.  This Part enacts into law major components of legislation
    37  relating to extending various taxes and tax credits. Each  component  is
    38  wholly  contained  within  a Subpart identified as Subparts A through E.
    39  The effective date for each particular provision contained  within  such
    40  Subpart  is set forth in the last section of such Subpart. Any provision
    41  in any section contained within a Subpart, including the effective  date
    42  of  the  Subpart, which makes reference to a section "of this act", when
    43  used in connection with that particular component, shall  be  deemed  to
    44  mean  and  refer to the corresponding section of the Subpart in which it
    45  is found. Section three of this Part sets forth  the  general  effective
    46  date of this Part.
 
    47                                  SUBPART A
 
    48    Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
    49  section 210 of the tax law, as amended by section 1 of part HHH of chap-
    50  ter 59 of the laws of 2021, is amended to read as follows:

        S. 4009                            18                            A. 3009
 
     1    For  taxable  years  beginning  before  January  first,  two  thousand
     2  sixteen,  the  amount  prescribed by this paragraph shall be computed at
     3  the rate of seven and  one-tenth  percent  of  the  taxpayer's  business
     4  income  base. For taxable years beginning on or after January first, two
     5  thousand  sixteen,  the amount prescribed by this paragraph shall be six
     6  and one-half percent of the taxpayer's business income base. For taxable
     7  years beginning on or after January first, two thousand  twenty-one  and
     8  before  January  first,  two thousand [twenty-four] twenty-seven for any
     9  taxpayer with a business income base for the taxable year of  more  than
    10  five  million  dollars, the amount prescribed by this paragraph shall be
    11  seven and one-quarter percent of the taxpayer's  business  income  base.
    12  The  taxpayer's  business  income  base  shall  mean  the portion of the
    13  taxpayer's business income apportioned within the state  as  hereinafter
    14  provided.  However, in the case of a small business taxpayer, as defined
    15  in paragraph (f) of this subdivision,  the  amount  prescribed  by  this
    16  paragraph  shall be computed pursuant to subparagraph (iv) of this para-
    17  graph and in the case of a manufacturer, as defined in subparagraph (vi)
    18  of this paragraph, the amount prescribed  by  this  paragraph  shall  be
    19  computed  pursuant  to  subparagraph (vi) of this paragraph, and, in the
    20  case of a qualified emerging technology company, as defined in  subpara-
    21  graph  (vii)  of this paragraph, the amount prescribed by this paragraph
    22  shall be computed pursuant to subparagraph (vii) of this paragraph.
    23    § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of  section  210
    24  of the tax law, as amended by section 2 of part HHH of chapter 59 of the
    25  laws of 2021, is amended to read as follows:
    26    (1)  (i)  The  amount  prescribed  by this paragraph shall be computed
    27  at .15 percent for each dollar of the taxpayer's total business capital,
    28  or the portion thereof  apportioned  within  the  state  as  hereinafter
    29  provided  for taxable years beginning before January first, two thousand
    30  sixteen.  However, in the case of a cooperative housing  corporation  as
    31  defined  in  the internal revenue code, the applicable rate shall be .04
    32  percent until taxable years beginning on or  after  January  first,  two
    33  thousand twenty and zero percent for taxable years beginning on or after
    34  January  first,  two thousand twenty-one. The rate of tax for subsequent
    35  tax years shall be as follows: .125 percent for taxable years  beginning
    36  on  or  after  January  first,  two  thousand sixteen and before January
    37  first, two thousand seventeen; .100 percent for taxable years  beginning
    38  on  or  after  January  first, two thousand seventeen and before January
    39  first, two thousand eighteen; .075 percent for taxable  years  beginning
    40  on  or  after  January  first,  two thousand eighteen and before January
    41  first, two thousand nineteen; .050 percent for taxable  years  beginning
    42  on  or  after  January  first,  two thousand nineteen and before January
    43  first, two thousand twenty; .025 percent for taxable years beginning  on
    44  or  after  January  first, two thousand twenty and before January first,
    45  two thousand twenty-one; and .1875 percent for  years  beginning  on  or
    46  after  January  first, two thousand twenty-one and before January first,
    47  two thousand [twenty-four] twenty-seven, and zero  percent  for  taxable
    48  years  beginning  on  or after January first, two thousand [twenty-four]
    49  twenty-seven. Provided however, for taxable years beginning on or  after
    50  January  first,  two  thousand  twenty-one,  the rate of tax for a small
    51  business as defined in paragraph (f) of this subdivision shall  be  zero
    52  percent.  The rate of tax for a qualified New York manufacturer shall be
    53  .132 percent for taxable years beginning on or after January first,  two
    54  thousand  fifteen  and  before January first, two thousand sixteen, .106
    55  percent for taxable years beginning on or after January first, two thou-
    56  sand sixteen and before January  first,  two  thousand  seventeen,  .085

        S. 4009                            19                            A. 3009
 
     1  percent for taxable years beginning on or after January first, two thou-
     2  sand  seventeen  and  before  January first, two thousand eighteen; .056
     3  percent for taxable years beginning on or after January first, two thou-
     4  sand  eighteen  and  before  January  first, two thousand nineteen; .038
     5  percent for taxable years beginning on or after January first, two thou-
     6  sand nineteen and  before  January  first,  two  thousand  twenty;  .019
     7  percent for taxable years beginning on or after January first, two thou-
     8  sand  twenty and before January first, two thousand twenty-one; and zero
     9  percent for years beginning on or  after  January  first,  two  thousand
    10  twenty-one.  (ii)  In no event shall the amount prescribed by this para-
    11  graph exceed three hundred fifty thousand dollars for qualified New York
    12  manufacturers and for all other taxpayers five million dollars.
    13    § 3. This act shall take effect immediately.
 
    14                                  SUBPART B
 
    15    Section 1. Subparagraph (A) of  paragraph  1  of  subsection  (oo)  of
    16  section 606 of the tax law, as amended by section 1 of part CCC of chap-
    17  ter 59 of the laws of 2021, is amended to read as follows:
    18    (A)  For  taxable years beginning on or after January first, two thou-
    19  sand ten and before January first, two thousand [twenty-five] thirty,  a
    20  taxpayer  shall be allowed a credit as hereinafter provided, against the
    21  tax imposed by this article, in an amount equal to one  hundred  percent
    22  of the amount of credit allowed the taxpayer with respect to a certified
    23  historic structure, and one hundred fifty percent of the amount of cred-
    24  it  allowed  the taxpayer with respect to a certified historic structure
    25  that is a small project, under internal revenue code  section  47(c)(3),
    26  determined  without  regard to ratably allocating the credit over a five
    27  year period as required by subsection  (a)  of  such  section  47,  with
    28  respect  to  a  certified  historic  structure located within the state.
    29  Provided, however, the credit shall not exceed five million dollars. For
    30  taxable years beginning on or after January first, two  thousand  [twen-
    31  ty-five]  thirty,  a  taxpayer  shall be allowed a credit as hereinafter
    32  provided, against the tax imposed by this article, in an amount equal to
    33  thirty percent of the amount of credit allowed the taxpayer with respect
    34  to a certified historic structure under internal  revenue  code  section
    35  47(c)(3),  determined  without  regard  to ratably allocating the credit
    36  over a five year period as required by subsection (a)  of  such  section
    37  47,  with  respect  to a certified historic structure located within the
    38  state; provided, however, the credit shall not exceed one hundred  thou-
    39  sand dollars.
    40    §  2.  Subparagraph  (i) of paragraph (a) of subdivision 26 of section
    41  210-B of the tax law, as amended by section 2 of part CCC of chapter  59
    42  of the laws of 2021, is amended to read as follows:
    43    (i)  For  taxable years beginning on or after January first, two thou-
    44  sand ten, and before January first, two thousand [twenty-five] thirty, a
    45  taxpayer shall be allowed a credit as hereinafter provided, against  the
    46  tax  imposed  by this article, in an amount equal to one hundred percent
    47  of the amount of credit allowed the taxpayer for the same  taxable  year
    48  with  respect  to  a certified historic structure, and one hundred fifty
    49  percent of the amount of credit allowed the taxpayer with respect  to  a
    50  certified  historic  structure  that  is a small project, under internal
    51  revenue code section 47(c)(3),  determined  without  regard  to  ratably
    52  allocating  the credit over a five year period as required by subsection
    53  (a) of such section 47, with respect to a certified  historic  structure

        S. 4009                            20                            A. 3009
 
     1  located within the state. Provided, however, the credit shall not exceed
     2  five million dollars.
     3    §  3.  Clause (B) of subparagraph (ii) of paragraph (a) of subdivision
     4  26 of section 210-B of the tax law, as added by section 17 of part A  of
     5  chapter  59  of the laws of 2014, is redesignated as paragraph (a-1) and
     6  is amended to read as follows:
     7    (a-1) If the taxpayer is a partner in a partnership or  a  shareholder
     8  in  a  New York S corporation, then the credit caps imposed in [subpara-
     9  graph (A)] paragraph  (a)  of  this  [paragraph]  subdivision  shall  be
    10  applied at the entity level, so that the aggregate credit allowed to all
    11  the  partners  or  shareholders  of each such entity in the taxable year
    12  does not exceed the credit cap that is applicable in that taxable year.
    13    § 4. Subparagraph (ii) of paragraph (a) of subdivision 26  of  section
    14  210-B  of  the tax law, as amended by section 2 of part RR of chapter 59
    15  of the laws of 2018, is amended to read as follows:
    16    (ii) For taxable years beginning on or after January first, two  thou-
    17  sand [twenty-five] thirty, a taxpayer shall be allowed a credit as here-
    18  inafter  provided, against the tax imposed by this article, in an amount
    19  equal to thirty percent of the amount of credit allowed the taxpayer for
    20  the same taxable year determined without regard  to  ratably  allocating
    21  the  credit  over  a  five  year period as required by subsection (a) of
    22  section 47 of the internal revenue code, with  respect  to  a  certified
    23  historic structure under subsection (c)(3) of section 47 of the internal
    24  revenue  code  with  respect  to  a certified historic structure located
    25  within the state. Provided, however, the credit  shall  not  exceed  one
    26  hundred thousand dollars.
    27    §  5.  Subparagraph  (A)  of paragraph 1 of subdivision (y) of section
    28  1511 of the tax law, as amended by section 3 of part CCC of  chapter  59
    29  of the laws of 2021, is amended to read as follows:
    30    (A)  For  taxable years beginning on or after January first, two thou-
    31  sand ten and before January first, two thousand [twenty-five] thirty,  a
    32  taxpayer  shall be allowed a credit as hereinafter provided, against the
    33  tax imposed by this article, in an amount equal to one  hundred  percent
    34  of the amount of credit allowed the taxpayer with respect to a certified
    35  historic structure, and one hundred fifty percent of the amount of cred-
    36  it  allowed  the taxpayer with respect to a certified historic structure
    37  that is a small project, under internal revenue code  section  47(c)(3),
    38  determined  without  regard to ratably allocating the credit over a five
    39  year period as required by subsection  (a)  of  such  section  47,  with
    40  respect  to  a  certified  historic  structure located within the state.
    41  Provided, however, the credit shall not exceed five million dollars. For
    42  taxable years beginning on or after January first, two  thousand  [twen-
    43  ty-five]  thirty,  a  taxpayer  shall be allowed a credit as hereinafter
    44  provided, against the tax imposed by this article, in an amount equal to
    45  thirty percent of the amount of credit allowed the taxpayer with respect
    46  to a certified historic structure under internal  revenue  code  section
    47  47(c)(3),  determined  without  regard  to ratably allocating the credit
    48  over a five year period as required by subsection (a) of such section 47
    49  with respect to a certified historic structure located within the state.
    50  Provided, however, the credit shall  not  exceed  one  hundred  thousand
    51  dollars.
    52    § 6. This act shall take effect immediately.
 
    53                                  SUBPART C

        S. 4009                            21                            A. 3009
 
     1    Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
     2  law, as amended by section 1 of part AAA of chapter 59 of  the  laws  of
     3  2019, is amended to read as follows:
     4    (1)  A taxpayer which is a qualified commercial production company, or
     5  which is a sole proprietor of a qualified commercial production company,
     6  and which is subject to tax under article nine-A or twenty-two  of  this
     7  chapter,  shall  be  allowed  a credit against such tax, pursuant to the
     8  provisions referenced in subdivision (c) of this section, to be computed
     9  as provided in this section. Provided, however, to be eligible for  such
    10  credit, at least seventy-five percent of the production costs (excluding
    11  post  production  costs)  paid or incurred directly and predominantly in
    12  the actual filming or recording of  the  qualified  commercial  must  be
    13  costs  incurred  in  New  York state. The tax credit allowed pursuant to
    14  this section shall apply  to  taxable  years  beginning  before  January
    15  first, two thousand [twenty-four] twenty-nine.
    16    §  2. Paragraph (c) of subdivision 23 of section 210-B of the tax law,
    17  as amended by chapter 518 of the laws of 2018, is  amended  to  read  as
    18  follows:
    19    (c)  Expiration  of  credit. The credit allowed under this subdivision
    20  shall not be applicable to taxable years beginning on or  after  January
    21  first, two thousand [twenty-four] twenty-nine.
    22    §  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
    23  amended by chapter 518 of the laws  of  2018,  is  amended  to  read  as
    24  follows:
    25    (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
    26  provisions of section twenty-eight of this chapter shall  be  allowed  a
    27  credit  to  be  computed  as  provided  in  such section against the tax
    28  imposed by this article. The tax credit allowed pursuant to this section
    29  shall apply to taxable years beginning before January first,  two  thou-
    30  sand [twenty-four] twenty-nine.
    31    § 4. This act shall take effect immediately.
 
    32                                  SUBPART D
 
    33    Section  1.  Paragraph  1  of subdivision (a) of section 47 of the tax
    34  law, as added by section 1 of part I of chapter 59 of the laws of  2022,
    35  is amended to read as follows:
    36    (1)  Allowance  of  credit.  A  taxpayer  that  meets  the eligibility
    37  requirements of subdivision (b) of this section and is  subject  to  tax
    38  under  article  nine-A  or twenty-two of this chapter may be eligible to
    39  claim a grade no. 6 heating oil conversion tax  credit  in  the  taxable
    40  year  the  conversion  is  complete.  The credit shall be equal to fifty
    41  percent of the conversion costs for  all  of  the  taxpayer's  buildings
    42  located at a facility regulated pursuant to section 19-0302 or title ten
    43  of article seventeen of the environmental conservation law, paid by such
    44  taxpayer  on  or after January first, two thousand twenty-two and before
    45  [July] January first, two  thousand  [twenty-three]  twenty-four.    The
    46  credit cannot exceed five hundred thousand dollars per facility.
    47    § 2. This act shall take effect immediately.
 
    48                                  SUBPART E
 
    49    Section 1. Section 6 of subpart B of part PP of chapter 59 of the laws
    50  of  2021  amending  the  tax  law  and the state finance law relating to
    51  establishing the New York city musical  and  theatrical  production  tax
    52  credit  and establishing the New York state council on the arts cultural

        S. 4009                            22                            A. 3009
 
     1  program fund, as amended by section 7 of part F of  chapter  59  of  the
     2  laws of 2022, is amended to read as follows:
     3    §  6.  This  act shall take effect immediately; provided however, that
     4  [section] sections one, two, three and four of this act shall  apply  to
     5  taxable  years beginning on or after January 1, 2021, and before January
     6  1, [2024] 2026 and shall expire and be deemed repealed January 1, [2024]
     7  2026; provided further, however that the obligations under  paragraph  3
     8  of  subdivision  (g) of section 24-c of the tax law, as added by section
     9  one of this act, shall remain in effect until December 31, [2025] 2027.
    10    § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
    11  amended by section 1 of part F of chapter 59 of the  laws  of  2022,  is
    12  amended to read as follows:
    13    (2)  The  amount of the credit shall be the product (or pro rata share
    14  of the product, in the case of a member of a partnership) of twenty-five
    15  percent and the sum of the qualified production  expenditures  paid  for
    16  during  the  qualified New York city musical and theatrical production's
    17  credit period. Provided however that the amount  of  the  credit  cannot
    18  exceed  three  million  dollars  per qualified New York city musical and
    19  theatrical production for productions whose first performance  is  prior
    20  to  January  first,  two  thousand  [twenty-three]  twenty-five.    [For
    21  productions whose first performance is on or after  January  first,  two
    22  thousand  twenty-three,  such  cap  shall  decrease  to one million five
    23  hundred thousand dollars per qualified New York city musical and  theat-
    24  rical production unless the New York city tourism economy has not suffi-
    25  ciently  recovered, as determined by the department of economic develop-
    26  ment in consultation with the division of  the  budget.  In  determining
    27  whether  the  New  York city tourism economy has sufficiently recovered,
    28  the department of economic development will perform an analysis  of  key
    29  New York city economic indicators which shall include, but not be limit-
    30  ed  to,  hotel  occupancy  rates  and  travel metrics. The department of
    31  economic development's analysis shall also be informed by the status  of
    32  any  remaining COVID-19 restrictions affecting New York city musical and
    33  theatrical productions.] In no event shall a  qualified  New  York  city
    34  musical  and  theatrical production be eligible for more than one credit
    35  under this program.
    36    § 3. Subparagraph (i) of paragraph 5 of  subdivision  (b)  of  section
    37  24-c  of the tax law, as amended by section 2 of part F of chapter 59 of
    38  the laws of 2022, is amended to read as follows:
    39    (i) "The credit period of a qualified New York city musical and theat-
    40  rical production company" is the period starting on the production start
    41  date and ending on the earlier of the date  the  qualified  musical  and
    42  theatrical  production  has  expended  sufficient  qualified  production
    43  expenditures to reach its credit cap, September thirtieth, two  thousand
    44  [twenty-three]  twenty-five or the date the qualified musical and theat-
    45  rical production closes.
    46    § 4.  Subdivision (c) of section 24-c of the  tax  law,  as  added  by
    47  section  1 of subpart B of part PP of chapter 59 of the laws of 2021, is
    48  amended to read as follows:
    49    (c) The credit shall be allowed for the taxable year beginning  on  or
    50  after  January  first, two thousand twenty-one but before January first,
    51  two thousand [twenty-four]  twenty-six.    A  qualified  New  York  city
    52  musical  and theatrical production company shall claim the credit in the
    53  year in which its credit period ends.
    54    § 5. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the  tax
    55  law,  paragraph 1 as amended by section 3 of part F of chapter 59 of the

        S. 4009                            23                            A. 3009
 
     1  laws of 2022, and paragraph 2 as amended by section 4 of part F of chap-
     2  ter 59 of the laws of 2022, are amended to read as follows:
     3    (1)  The  aggregate  amount of tax credits allowed under this section,
     4  subdivision fifty-seven of section  two  hundred  ten-B  and  subsection
     5  (mmm)  of  section  six hundred six of this chapter shall be [two] three
     6  hundred million dollars. Such aggregate amount of credits shall be allo-
     7  cated by the department of economic development among taxpayers based on
     8  the date of first performance of the qualified  musical  and  theatrical
     9  production.
    10    (2)  The  commissioner  of economic development, after consulting with
    11  the commissioner, shall promulgate regulations to  establish  procedures
    12  for  the  allocation  of  tax  credits as required by this section. Such
    13  rules and regulations shall include provisions describing  the  applica-
    14  tion  process,  the  due dates for such applications, the standards that
    15  will be used to evaluate the applications, the documentation  that  will
    16  be  provided  by applicants to substantiate to the department the amount
    17  of qualified production expenditures of such applicants, and such  other
    18  provisions  as  deemed  necessary  and  appropriate. Notwithstanding any
    19  other provisions to the contrary in the state  administrative  procedure
    20  act, such rules and regulations may be adopted on an emergency basis. In
    21  no  event  shall  a  qualified  New  York  city  musical  and theatrical
    22  production submit an application for this program after June  thirtieth,
    23  two thousand [twenty-three] twenty-five.
    24    §  6. This act shall take effect immediately; provided that the amend-
    25  ments to section 24-c of the tax law made by sections two,  three,  four
    26  and  five  of  this  act shall not affect the repeal of such section and
    27  shall be deemed repealed therewith.
    28    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    29  sion, section or part of this act shall be  adjudged  by  any  court  of
    30  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    31  impair, or invalidate the remainder thereof, but shall  be  confined  in
    32  its  operation  to the clause, sentence, paragraph, subdivision, section
    33  or part thereof directly involved in the controversy in which such judg-
    34  ment shall have been rendered. It is hereby declared to be the intent of
    35  the legislature that this act would  have  been  enacted  even  if  such
    36  invalid provisions had not been included herein.
    37    §  3.  This  act shall take effect immediately provided, however, that
    38  the applicable effective dates of Subparts A through E of this act shall
    39  be as specifically set forth in the last section of such Subparts.
 
    40                                   PART J
 
    41    Section 1. This act enacts into law major  components  of  legislation
    42  relating  to  taxation.  Each  component  is  wholly  contained within a
    43  Subpart identified as Subparts A through C. The effective date for  each
    44  particular  provision  contained within such Subpart is set forth in the
    45  last section of such Subpart. Any provision  in  any  section  contained
    46  within  a  Subpart,  including  the effective date of the Subpart, which
    47  makes reference to a section "of this act", when used in connection with
    48  that particular component, shall be deemed to  mean  and  refer  to  the
    49  corresponding section of the Subpart in which it is found. Section three
    50  of this act sets forth the general effective date of this act.
 
    51                                  SUBPART A

        S. 4009                            24                            A. 3009
 
     1    Section 1. Paragraph (b) of subdivision 38 of section 210-B of the tax
     2  law,  as  amended  by  section  2 of part L of chapter 59 of the laws of
     3  2022, is amended to read as follows:
     4    (b)  Definitions.  The  term "accessible by individuals with disabili-
     5  ties" shall, for the purposes of this subdivision, refer  to  a  vehicle
     6  that complies with federal regulations promulgated pursuant to the Amer-
     7  icans  with Disabilities Act applicable to vans under twenty-two feet in
     8  length, by the federal Department of Transportation, in Code of  Federal
     9  Regulations, title 49, parts 37 and 38[, and by the federal Architecture
    10  and  Transportation  Barriers Compliance Board, in Code of Federal Regu-
    11  lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
    12  ty Standards, Code of Federal Regulations, title 49, part [57] 571.  The
    13  term  "electric  vehicle"  shall,  for the purposes of this subdivision,
    14  have the same meaning as in section sixty-six-s of  the  public  service
    15  law.
    16    §  2. Paragraph 2 of subsection (tt) of section 606 of the tax law, as
    17  amended by section 4 of part L of chapter 59 of the  laws  of  2022,  is
    18  amended to read as follows:
    19    (2)  Definitions.  The  term "accessible by individuals with disabili-
    20  ties" shall, for the purposes of this subsection,  refer  to  a  vehicle
    21  that complies with federal regulations promulgated pursuant to the Amer-
    22  icans  with Disabilities Act applicable to vans under twenty-two feet in
    23  length, by the federal Department of Transportation, in Code of  Federal
    24  Regulations, title 49, parts 37 and 38[, and by the federal Architecture
    25  and  Transportation  Barriers Compliance Board, in Code of Federal Regu-
    26  lations, title 36, section 1192.23,] and the Federal Motor Vehicle Safe-
    27  ty Standards, Code of Federal Regulations, title [29] 49, part [57] 571.
    28  The term "electric vehicle" shall, for the purposes of this  subsection,
    29  have  the  same  meaning as in section sixty-six-s of the public service
    30  law.
    31    § 3. This act shall take effect immediately and shall apply to taxable
    32  years beginning on or after January 1, 2023.
 
    33                                  SUBPART B
 
    34    Section 1. Paragraph 2 of subdivision (b) of section  21  of  the  tax
    35  law,  as  amended  by  section 7 of part LL of chapter 58 of the laws of
    36  2022, is amended to read as follows:
    37    (2) Site preparation costs. The term "site  preparation  costs"  shall
    38  mean  all  amounts  properly  chargeable to a capital account, which are
    39  paid or incurred which are necessary  to  implement  a  site's  investi-
    40  gation,  remediation,  or qualification for a certificate of completion,
    41  and shall include costs of: excavation; demolition; activities undertak-
    42  en under the oversight of the department of labor or in accordance  with
    43  standards  established  by  the  department  of  health to remediate and
    44  dispose of regulated materials including asbestos, lead  or  polychlori-
    45  nated  biphenyls;  environmental  consulting;  engineering; legal costs;
    46  transportation, disposal, treatment or containment of contaminated soil;
    47  remediation measures taken to address  contaminated  soil  vapor;  cover
    48  systems  consistent  with  applicable  regulations;  physical support of
    49  excavation; dewatering and other work to facilitate  or  enable  remedi-
    50  ation  activities;  sheeting,  shoring,  and  other engineering controls
    51  required to prevent off-site migration of contamination from the  quali-
    52  fied  site  or migrating onto the qualified site; and the costs of fenc-
    53  ing, temporary electric wiring,  scaffolding,  and  security  facilities
    54  until  such  time as the certificate of completion has been issued. Site

        S. 4009                            25                            A. 3009
 
     1  preparation shall include all costs paid or incurred within sixty months
     2  after the last  day  of  the  tax  year  in  which  the  certificate  of
     3  completion  is issued that are necessary for compliance with the certif-
     4  icate of completion or subsequent modifications thereof, or the remedial
     5  program  defined  in  such  certificate  of completion including but not
     6  limited to institutional controls,  engineering  controls,  an  approved
     7  site  management plan, and an environmental easement with respect to the
     8  qualified site; provided, however, with respect to  any  qualified  site
     9  for  which  [the  department  of environmental conservation has issued a
    10  notice to the taxpayer on or after July first, two thousand fifteen  but
    11  on  or  before  June  twenty-fourth,  two  thousand  twenty-one that its
    12  request for participation has been accepted  under  subdivision  six  of
    13  section  27-1407 of the environmental conservation law] a certificate of
    14  completion was issued on or after July first, two thousand  fifteen  but
    15  on  or before June twenty-fourth, two thousand twenty-one, site prepara-
    16  tion shall include all costs paid or incurred within eighty-four  months
    17  after  the  last  day  of  the  tax  year  in  which  the certificate of
    18  completion is issued that are necessary for compliance with the  certif-
    19  icate of completion or subsequent modifications thereof, or the remedial
    20  program  defined  in  such  certificate  of completion including but not
    21  limited to institutional controls,  engineering  controls,  an  approved
    22  site  management plan, and an environmental easement with respect to the
    23  qualified site. Site preparation cost shall not  include  the  costs  of
    24  foundation  systems  that  exceed  the  cover system requirements in the
    25  regulations applicable to the qualified site.
    26    § 2. This act shall take effect immediately and  shall  be  deemed  to
    27  have been in effect on and after April 9, 2022.
 
    28                                  SUBPART C
 
    29    Section  1.  Paragraphs 1, 2 and 3 of subsection (h) of section 860 of
    30  the tax law, paragraph 1 as added by section 1 of part C of  chapter  59
    31  of the laws of 2021, and paragraph 2 as amended and paragraph 3 as added
    32  by  section 2 of subpart A of part MM of chapter 59 of the laws of 2022,
    33  are amended to read as follows:
    34    (1) In the case of an electing partnership, the sum of (i)  all  items
    35  of  income,  gain, loss, or deduction derived from or connected with New
    36  York sources to the extent they are included in the taxable income of  a
    37  nonresident partner subject to tax under article twenty-two, under para-
    38  graph  one  of  subsection (a) of section six hundred thirty-two of this
    39  chapter; [and] (ii) all items of income, gain, loss, or deduction to the
    40  extent they are included in the taxable income  of  a  resident  partner
    41  subject  to  tax under article twenty-two of this chapter; and (iii) all
    42  pass-through entity taxes including taxes paid under this article to New
    43  York, taxes paid under article twenty-four-B of this chapter to the city
    44  of New York, and taxes paid to other jurisdictions that are substantial-
    45  ly similar to the taxes paid under this article, to the extent that, for
    46  federal income tax purposes, the taxes are  paid  and  deducted  in  the
    47  taxable  year,  and  are  included in the taxable income of the partners
    48  subject to tax under article twenty-two of this chapter for the  taxable
    49  year.
    50    (2)  In the case of an electing standard S corporation, the sum of (i)
    51  all items of income, gain, loss, or deduction derived from or  connected
    52  with  New  York sources to the extent they would be included under para-
    53  graph two of subsection (a) of section six hundred  thirty-two  of  this
    54  chapter  in  the  taxable  income  of a shareholder subject to tax under

        S. 4009                            26                            A. 3009
 
     1  article twenty-two of this chapter; and  (ii)  all  pass-through  entity
     2  taxes  including  taxes  paid under this article to New York, taxes paid
     3  under article twenty-four-B of this chapter to the city of New York, and
     4  taxes  paid to other jurisdictions that are substantially similar to the
     5  taxes paid under this article, to the extent that,  for  federal  income
     6  tax  purposes,  the taxes are paid and deducted in the taxable year, and
     7  are included in the taxable income of the shareholders  subject  to  tax
     8  under article twenty-two of this chapter for the taxable year.
     9    (3)  In the case of an electing resident S corporation, the sum of (i)
    10  all items of income, gain, loss, or deduction to  the  extent  they  are
    11  included  in  the  taxable  income of a shareholder subject to tax under
    12  article twenty-two of this chapter; and  (ii)  all  pass-through  entity
    13  taxes  including  taxes  paid under this article to New York, taxes paid
    14  under article twenty-four-B of this chapter to the city of New York, and
    15  taxes paid to other jurisdictions  that  are  substantially  similar  to
    16  taxes  paid  under  this article, to the extent that, for federal income
    17  tax purposes, the taxes are paid and deducted in the taxable  year,  and
    18  are  included  in  the taxable income of the shareholders subject to tax
    19  under article twenty-two of this chapter for the taxable year.
    20    § 2. Subsection (c) of section 861 of  the  tax  law,  as  amended  by
    21  section  3 of subpart A of part MM of chapter 59 of the laws of 2022, is
    22  amended to read as follows:
    23    (c) The annual election must be made [by] on or before the due date of
    24  the first estimated payment under section eight  hundred  sixty-four  of
    25  this article and will take effect for the current taxable year. Only one
    26  election  may  be made during each calendar year. An election made under
    27  this section is irrevocable [as of] after the due date.
    28    § 3. Paragraphs 1 and 2 of subsection (b) of section 867  of  the  tax
    29  law,  as added by section 1 of subpart B of part MM of chapter 59 of the
    30  laws of 2022, are amended to read as follows:
    31    (1) In the case of an electing city partnership, the sum  of  (i)  all
    32  items  of  income,  gain,  loss,  or  deduction  to  the extent they are
    33  included in the city taxable income of a partner or member of the elect-
    34  ing city partnership who is a city taxpayer; and (ii)  all  pass-through
    35  entity  taxes  including  taxes paid under article twenty-four-A of this
    36  chapter to New York, taxes paid under this article to the  city  of  New
    37  York, and taxes paid to other jurisdictions that are substantially simi-
    38  lar  to  taxes  paid under article twenty-four-A of this chapter, to the
    39  extent that, for federal income tax purposes, the taxes  were  paid  and
    40  deducted  in  the  taxable  year,  and  they are included in the taxable
    41  income of the partners subject to tax under article twenty-two  of  this
    42  chapter for the taxable year.
    43    (2) In the case of an electing city resident S corporation, the sum of
    44  (i)  all  items  of  income, gain, loss, or deduction to the extent they
    45  would be included in the city taxable income of  a  shareholder  of  the
    46  electing  city  resident  S corporation who is a city taxpayer; and (ii)
    47  all pass-through entity taxes including taxes paid under  article  twen-
    48  ty-four-A  of this chapter to New York, taxes paid under this article to
    49  the city of New York, and taxes paid to  other  jurisdictions  that  are
    50  substantially  similar to taxes paid under article twenty-four-A of this
    51  chapter, to the extent that, for federal income tax purposes, the  taxes
    52  were paid and deducted in the taxable year, and they are included in the
    53  taxable  income of the shareholders subject to tax under article twenty-
    54  two of this chapter for the taxable year.

        S. 4009                            27                            A. 3009
 
     1    § 4. Subsection (e) of section 867 of the tax law, as added by section
     2  1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
     3  to read as follows:
     4    (e)  City  taxpayer. A city taxpayer means [a city resident individual
     5  subject to the tax imposed pursuant to the authority of  article  thirty
     6  of this chapter]:
     7    (1)  a  city  resident  individual,  as  defined  in subsection (a) of
     8  section thirteen hundred five of this chapter; and
     9    (2) a city resident trust or estate, as defined in subsection  (c)  of
    10  section thirteen hundred five of this chapter.
    11    § 5. Subsection (i) of section 867 of the tax law, as added by section
    12  1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
    13  to read as follows:
    14    (i) Eligible city partnership. Eligible  city  partnership  means  any
    15  partnership as provided for in section 7701(a)(2) of the Internal Reven-
    16  ue  Code that has a filing requirement under paragraph one of subsection
    17  (c) of section six hundred fifty-eight of  this  chapter  other  than  a
    18  publicly  traded  partnership as defined in section 7704 of the Internal
    19  Revenue Code, where at least one partner or member is a  city  [resident
    20  individual]  taxpayer. An eligible city partnership includes any entity,
    21  including a limited liability company,  treated  as  a  partnership  for
    22  federal  income  tax  purposes  that otherwise meets the requirements of
    23  this subsection.
    24    § 6. Subsection (j) of section 867 of the tax law, as added by section
    25  1 of subpart B of part MM of chapter 59 of the laws of 2022, is  amended
    26  to read as follows:
    27    (j)  Eligible  city  resident  S corporation. Eligible city resident S
    28  corporation means any New York S  corporation  as  defined  pursuant  to
    29  subdivision  one-A  of section two hundred eight of this chapter that is
    30  subject to tax under section two hundred nine of this chapter  that  has
    31  only  city [resident individual] taxpayer shareholders. An eligible city
    32  resident S corporation includes any entity, including a limited  liabil-
    33  ity company, treated as an S corporation for federal income tax purposes
    34  that otherwise meets the requirements of this subsection.
    35    § 7. Subsection (c) of section 868 of the tax law, as added by section
    36  1  of subpart B of part MM of chapter 59 of the laws of 2022, is amended
    37  to read as follows:
    38    (c) The annual election to be taxed pursuant to this article  must  be
    39  made [by] on or before the due date of the first estimated payment under
    40  section  eight  hundred  sixty-four of this chapter and will take effect
    41  for the current taxable year. Only one election to be taxed pursuant  to
    42  this  article  may  be  made during each calendar year. An election made
    43  under this section is irrevocable [as of] after such due  date.  To  the
    44  extent  an  election  made under section eight hundred sixty-one of this
    45  chapter is revoked or otherwise invalidated an election made under  this
    46  section is automatically invalidated.
    47    §  8. This act shall take effect immediately, provided, however, that:
    48  (i) sections one and two of this act shall be deemed  to  have  been  in
    49  full force and effect on and after the effective date of part C of chap-
    50  ter  59  of  the laws of 2021; (ii) sections three and seven of this act
    51  shall be deemed to have been in full force and effect on and  after  the
    52  effective date of section 1 of subpart B of part MM of chapter 59 of the
    53  laws  of  2022;  and (iii) sections four, five and six of this act shall
    54  apply to taxable years beginning on or after January 1, 2023.
    55    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    56  sion, section or part of this act shall be  adjudged  by  any  court  of

        S. 4009                            28                            A. 3009
 
     1  competent  jurisdiction  to  be invalid, such judgment shall not affect,
     2  impair, or invalidate the remainder thereof, but shall  be  confined  in
     3  its  operation  to the clause, sentence, paragraph, subdivision, section
     4  or part thereof directly involved in the controversy in which such judg-
     5  ment shall have been rendered. It is hereby declared to be the intent of
     6  the  legislature  that  this  act  would  have been enacted even if such
     7  invalid provisions had not been included herein.
     8    § 3. This act shall take effect immediately; provided,  however,  that
     9  the applicable effective dates of Subparts A through C of this act shall
    10  be as specifically set forth in the last section of such Subparts.
 
    11                                   PART K
 
    12    Section  1.  Paragraphs (a) and (d) of subdivision 1 of section 467 of
    13  the real property tax law, as amended by section 1 of part B of  chapter
    14  686 of the laws of 2022, are amended to read as follows:
    15    (a)  Real  property  owned  by  one  or  more persons, each of whom is
    16  sixty-five years of age or over, or real property owned by [husband  and
    17  wife]  a  married couple or by siblings, one of whom is sixty-five years
    18  of age or over, or real property owned by one or more persons,  some  of
    19  whom  qualify  under  this  section and the others of whom qualify under
    20  section four hundred fifty-nine-c of this title, shall  be  exempt  from
    21  payments  in lieu of taxes (PILOT) to the battery park city authority or
    22  from taxation by any municipal  corporation  in  which  located  to  the
    23  extent  of  fifty per centum of the assessed valuation thereof, provided
    24  the governing board of such municipality, after public hearing, adopts a
    25  local law, ordinance or resolution providing therefor. For the  purposes
    26  of  this  section,  [sibling  shall  mean a brother or a sister, whether
    27  related] the term "sibling" shall include persons whose relationship  as
    28  siblings  has been established through either half blood, whole blood or
    29  adoption.
    30    (d) The real property tax or PILOT exemption on real property owned by
    31  [husband and wife] a married couple, one of whom is sixty-five years  of
    32  age  or  over,  once  granted,  shall  not be rescinded by any municipal
    33  corporation solely because of the death of the older spouse so  long  as
    34  the surviving spouse is at least sixty-two years of age.
    35    §  2.  Subdivision  3  of section 467 of the real property tax law, as
    36  amended by section 1 of part B of chapter 686 of the laws of 2022, para-
    37  graph (a) as separately amended by chapter 488 of the laws of  2022,  is
    38  amended to read as follows:
    39    3. No exemption shall be granted:
    40    (a)(i) if the income of the owner or the combined income of the owners
    41  of  the property for the applicable income tax year [immediately preced-
    42  ing the date of making application for exemption]  exceeds  the  sum  of
    43  three  thousand  dollars, or such other sum not less than three thousand
    44  dollars nor more than [twenty-six thousand dollars beginning July first,
    45  two thousand six, twenty-seven thousand dollars  beginning  July  first,
    46  two  thousand seven, twenty-eight thousand dollars beginning July first,
    47  two thousand eight, twenty-nine thousand dollars beginning  July  first,
    48  two  thousand  nine,  fifty  thousand  dollars beginning July first, two
    49  thousand twenty-two, and in a city with a population of one  million  or
    50  more  fifty  thousand  dollars beginning July first, two thousand seven-
    51  teen,] fifty thousand dollars, as may be  provided  by  the  local  law,
    52  ordinance or resolution adopted pursuant to this section.
    53    (ii)  Where  the taxable status date is on or before April fourteenth,
    54  the applicable income tax year shall [mean] be the  twelve-month  period

        S. 4009                            29                            A. 3009
 
     1  for which the owner or owners filed a federal personal income tax return
     2  for  the  year before the income tax year immediately preceding the date
     3  of application and where the taxable status date is on  or  after  April
     4  fifteenth,  the  applicable  income tax year shall [mean] be the twelve-
     5  month period for which the owner or  owners  filed  a  federal  personal
     6  income tax return for the income tax year immediately preceding the date
     7  of application.
     8    (iii) Where title is vested in [either the husband or the wife, their]
     9  a  married  person, the combined income of such person and such person's
    10  spouse may not exceed such sum, except where [the husband  or  wife,  or
    11  ex-husband  or ex-wife] one spouse or ex-spouse is absent from the prop-
    12  erty as provided in subparagraph (ii) of paragraph (d) of this  subdivi-
    13  sion,  then  only  the income of the spouse or ex-spouse residing on the
    14  property shall be considered and may not exceed such sum.  [Such  income
    15  shall  include  social security and retirement benefits, interest, divi-
    16  dends, total gain from the sale or exchange of a capital asset which may
    17  be offset by a loss from the sale or exchange of a capital asset in  the
    18  same  income  tax  year,  net rental income, salary or earnings, and net
    19  income from self-employment, but shall not include a return of  capital,
    20  gifts,  inheritances,  payments  made  to  individuals  because of their
    21  status as victims of Nazi persecution, as defined  in  P.L.  103-286  or
    22  monies  earned  through  employment  in  the  federal foster grandparent
    23  program and  any  such  income  shall  be  offset  by  all  medical  and
    24  prescription  drug  expenses  actually paid which were not reimbursed or
    25  paid for by insurance, if the governing board of a municipality, after a
    26  public hearing, adopts a local law, ordinance  or  resolution  providing
    27  therefor.  In  addition,  an  exchange  of  an  annuity  for  an annuity
    28  contract, which resulted in non-taxable gain, as determined  in  section
    29  one thousand thirty-five of the internal revenue code, shall be excluded
    30  from  such income. Provided that such exclusion shall be based on satis-
    31  factory proof that such an exchange was solely an exchange of an annuity
    32  for an annuity contract that resulted in a non-taxable  transfer  deter-
    33  mined  by  such  section of the internal revenue code. Furthermore, such
    34  income shall not include the proceeds of a reverse mortgage, as  author-
    35  ized  by  section  six-h  of  the  banking law, and sections two hundred
    36  eighty and two hundred eighty-a of  the  real  property  law;  provided,
    37  however,  that  monies  used  to  repay  a  reverse  mortgage may not be
    38  deducted from income, and provided additionally  that  any  interest  or
    39  dividends  realized  from  the  investment  of reverse mortgage proceeds
    40  shall be considered income. The provisions of  this  paragraph  notwith-
    41  standing,  such  income  shall  not  include veterans disability compen-
    42  sation, as defined in Title 38 of the United States  Code  provided  the
    43  governing  board  of  such  municipality, after public hearing, adopts a
    44  local law, ordinance or resolution providing therefor. In computing  net
    45  rental  income  and  net  income  from  self-employment  no depreciation
    46  deduction shall be allowed for the exhaustion, wear and tear of real  or
    47  personal property held for the production of income;]
    48    (iv)  The  term "income" as used herein shall mean the "adjusted gross
    49  income" for federal income tax purposes as reported on  the  applicant's
    50  federal  or  state income tax return for the applicable income tax year,
    51  subject to any subsequent amendments or revisions, plus any social secu-
    52  rity benefits not included in such  adjusted  gross  income,  minus  any
    53  distributions,  to the extent included in federal adjusted gross income,
    54  received from an individual retirement account and an individual retire-
    55  ment annuity; provided that if no such return was filed for the applica-
    56  ble income tax year, the applicant's income shall be determined based on

        S. 4009                            30                            A. 3009
 
     1  the amounts that would have so been reported if such a return  had  been
     2  filed;  and provided further, that the governing board of a municipality
     3  may adopt a local law, ordinance or resolution providing that any social
     4  security  benefits  that  were  not included in the applicant's adjusted
     5  gross income shall  not  be  considered  income  for  purposes  of  this
     6  section;
     7    (b)  unless  the owner shall have held an exemption under this section
     8  for [his] the owner's previous residence or  unless  the  title  of  the
     9  property shall have been vested in the owner or one of the owners of the
    10  property  for  at  least  twelve consecutive months prior to the date of
    11  making application for exemption, provided, however, that in  the  event
    12  of  the  death  of  [either a husband or wife] a married person in whose
    13  name title of the property shall have been vested at the time  of  death
    14  and then becomes vested solely in [the survivor] such person's surviving
    15  spouse  by  virtue of devise by or descent from the deceased [husband or
    16  wife] spouse, the time of ownership of  the  property  by  the  deceased
    17  [husband or wife] spouse shall be deemed also a time of ownership by the
    18  [survivor]  surviving  spouse and such ownership shall be deemed contin-
    19  uous for the purposes of computing such  period  of  twelve  consecutive
    20  months.  In  the event of a transfer by [either a husband or wife to the
    21  other] a married person to such person's spouse of all or  part  of  the
    22  title  to  the  property,  the  time of ownership of the property by the
    23  transferor spouse shall be deemed also a time of ownership by the trans-
    24  feree spouse and such ownership  shall  be  deemed  continuous  for  the
    25  purposes  of  computing  such period of twelve consecutive months. Where
    26  property of the owner or owners has been acquired  to  replace  property
    27  formerly  owned  by  such owner or owners and taken by eminent domain or
    28  other involuntary proceeding, except a tax sale, the period of ownership
    29  of the former property shall be combined with the period of ownership of
    30  the property for which application is made for exemption and such  peri-
    31  ods  of ownership shall be deemed to be consecutive for purposes of this
    32  section. Where a residence is sold and replaced with another within  one
    33  year  and  both residences are within the state, the period of ownership
    34  of both properties shall be  deemed  consecutive  for  purposes  of  the
    35  exemption from taxation by a municipality within the state granting such
    36  exemption. Where the owner or owners transfer title to property which as
    37  of  the  date  of  transfer  was exempt from taxation or PILOT under the
    38  provisions of this section, the reacquisition of title by such owner  or
    39  owners  within  nine  months  of the date of transfer shall be deemed to
    40  satisfy the requirement of this paragraph that the title of the property
    41  shall have been vested in the owner or one of the owners for such period
    42  of twelve consecutive months. Where, upon or subsequent to the death  of
    43  an owner or owners, title to property which as of the date of such death
    44  was exempt from taxation or PILOT under such provisions, becomes vested,
    45  by  virtue of devise or descent from the deceased owner or owners, or by
    46  transfer by any other means within nine months after such death,  solely
    47  in  a  person or persons who, at the time of such death, maintained such
    48  property as a primary residence, the requirement of this paragraph  that
    49  the  title of the property shall have been vested in the owner or one of
    50  the owners for such period of twelve consecutive months shall be  deemed
    51  satisfied;
    52    (c)  unless the property is used exclusively for residential purposes,
    53  provided, however, that in the event any portion of such property is not
    54  so used exclusively for residential  purposes  but  is  used  for  other
    55  purposes,  such  portion  shall  be subject to taxation or PILOT and the

        S. 4009                            31                            A. 3009

     1  remaining portion only shall be entitled to the  exemption  provided  by
     2  this section;
     3    (d) unless the real property is the legal residence of and is occupied
     4  in  whole or in part by the owner or by all of the owners of the proper-
     5  ty: except where, (i) an  owner  is  absent  from  the  residence  while
     6  receiving  health-related  care  as an inpatient of a residential health
     7  care facility, as defined in section twenty-eight  hundred  one  of  the
     8  public  health  law,  provided  that  any income accruing to that person
     9  shall only be income only to the extent that it exceeds the amount  paid
    10  by  such  owner,  spouse,  or  co-owner  for  care  in the facility, and
    11  provided further, that during such  confinement  such  property  is  not
    12  occupied  by  other  than the spouse or co-owner of such owner; or, (ii)
    13  the real property is owned by a [husband and/or wife, or  an  ex-husband
    14  and/or an ex-wife, and either] married person or a married couple, or by
    15  a  formerly  married person or a formerly married couple, and one spouse
    16  or ex-spouse is absent from the residence due to  divorce,  legal  sepa-
    17  ration  or  abandonment and all other provisions of this section are met
    18  provided that where  an  exemption  was  previously  granted  when  both
    19  resided  on the property, then the person remaining on the real property
    20  shall be sixty-two years of age or over.
    21    § 3. Paragraph (a) of subdivision 3-a of section 467 of the real prop-
    22  erty tax law, as amended by section 1 of part B of chapter  686  of  the
    23  laws of 2022, is amended to read as follows:
    24    (a)  For  the  purposes of this section, title to that portion of real
    25  property owned  by  a  cooperative  apartment  corporation  in  which  a
    26  tenant-stockholder  of such corporation resides and which is represented
    27  by [his] the tenant-stockholder's share  or  shares  of  stock  in  such
    28  corporation  as  determined by its or their proportional relationship to
    29  the total outstanding stock of the corporation, including that owned  by
    30  the  corporation, shall be deemed to be vested in such tenant-stockhold-
    31  er.
    32    § 4. Subdivisions 5 and 5-a of section 467 of the  real  property  tax
    33  law,  as  amended  by  section 1 of part B of chapter 686 of the laws of
    34  2022, are amended to read as follows:
    35    5. Application for such exemption must be made by the owner, or all of
    36  the owners of the property, on forms prescribed by the  commissioner  to
    37  be  furnished  by  the appropriate assessing authority and shall furnish
    38  the information and be executed in the manner required or prescribed  in
    39  such  forms,  and  shall be filed in such assessor's office on or before
    40  the appropriate taxable status date. Notwithstanding any other provision
    41  of law, at the option of the municipal corporation, any person otherwise
    42  qualifying under this section shall not be denied  the  exemption  under
    43  this  section  if [he] such person becomes sixty-five years of age after
    44  the appropriate taxable status date and on or  before  December  thirty-
    45  first of the same year.
    46    5-a.  Any  local law or ordinance adopted pursuant to paragraph (a) of
    47  subdivision one of this section may be amended, or a local law or  ordi-
    48  nance  may  be  adopted  to provide, notwithstanding subdivision five of
    49  this section, that an application for such exemption may be  filed  with
    50  the  assessor  after  the  appropriate taxable status date but not later
    51  than the last date on which a petition with  respect  to  complaints  of
    52  assessment  may  be  filed,  where  failure to file a timely application
    53  resulted from: (a) a death of the applicant's  spouse,  child,  parent[,
    54  brother  or sister] or sibling; or (b) an illness of the applicant or of
    55  the applicant's spouse, child, parent[, brother or sister]  or  sibling,
    56  which  actually prevents the applicant from filing on a timely basis, as

        S. 4009                            32                            A. 3009
 
     1  certified by a licensed physician. The assessor shall  approve  or  deny
     2  such application as if it had been filed on or before the taxable status
     3  date.
     4    §  5.  Subdivision  6  of section 467 of the real property tax law, as
     5  amended by section 1 of part B of chapter 686 of the laws  of  2022,  is
     6  amended to read as follows:
     7    6.  (a)  At  least  sixty days prior to the appropriate taxable status
     8  date, the assessing authority shall mail to each person who was  granted
     9  exemption  pursuant  to  this section on the latest completed assessment
    10  roll an application form and a notice  that  such  application  must  be
    11  filed  on or before the taxable status date and be approved in order for
    12  the exemption to be granted. The assessing authority shall, within three
    13  days of the completion and filing  of  the  tentative  assessment  roll,
    14  notify  by mail any applicant [who has included with his] whose applica-
    15  tion includes at least one self-addressed,  pre-paid  envelope,  of  the
    16  approval  or  denial  of  the  application;  provided, however, that the
    17  assessing authority shall, upon the receipt and filing of  the  applica-
    18  tion,  send  by  mail  notification  of receipt to any applicant who has
    19  included two of such envelopes with the application. Where an  applicant
    20  is  entitled  to  a  notice of denial pursuant to this subdivision, such
    21  notice shall be on a form prescribed by the commissioner and shall state
    22  the reasons for such denial and shall further state that  the  applicant
    23  may  have  such  determination  reviewed  in the manner provided by law.
    24  Failure to mail any such application form or notices or the  failure  of
    25  such  person  to  receive  any  of  the same shall not prevent the levy,
    26  collection and enforcement of the payment of the taxes or PILOT on prop-
    27  erty owned by such person.
    28    (b) Except in cities of one million or more, any person who  has  been
    29  granted  exemption  pursuant  to  this  section  on five (5) consecutive
    30  completed assessment rolls, including any years when the  exemption  was
    31  granted  to a property owned by [a husband and/or wife] a married person
    32  or a married couple while both spouses resided in such  property,  shall
    33  not  be  subject  to the requirements set forth in paragraph (a) of this
    34  subdivision provided the governing board of the  municipality  in  which
    35  said property is situated after public hearing adopts a local law, ordi-
    36  nance  or  resolution  providing  therefor  however said person shall be
    37  mailed an application form and a notice [informing him of  his]  setting
    38  forth such person's rights. Such exemption shall be automatically grant-
    39  ed  on each subsequent assessment roll. Provided, however, that when tax
    40  payment is made by such person a sworn affidavit must be  included  with
    41  such payment which shall state that such person continues to be eligible
    42  for  such exemption. Such affidavit shall be on a form prescribed by the
    43  commissioner. If such affidavit is not included with  the  tax  payment,
    44  the  collecting  officer  shall proceed pursuant to section five hundred
    45  fifty-one-a of this chapter.
    46    (c) In cities of one million or more, any person who has been  granted
    47  exemption  pursuant to this section shall file the completed application
    48  with the appropriate assessing authority every twenty-four  months  from
    49  the date such exemption was granted without the necessity of having been
    50  granted  exemption  pursuant  to  this  section  on five (5) consecutive
    51  completed assessment rolls including any years when  the  exemption  was
    52  granted  to a property owned by [a husband and/or wife] a married person
    53  or a married couple while both spouses resided in such property.
    54    § 6. Subdivision 8-a of section 467 of the real property tax  law,  as
    55  amended  by  section  1 of part B of chapter 686 of the laws of 2022, is
    56  amended to read as follows:

        S. 4009                            33                            A. 3009
 
     1    8-a. Notwithstanding any provision of law to the contrary,  the  local
     2  governing  body of a municipal corporation that is authorized to adopt a
     3  local law pursuant to subdivision  eight  of  this  section  is  further
     4  authorized  to adopt a local law providing that where a renewal applica-
     5  tion  for the exemption authorized by this section has not been filed on
     6  or before the taxable status date, and  the  owner  believes  that  good
     7  cause  existed  for  the failure to file the renewal application by that
     8  date, the owner may, no later than the last  day  for  paying  taxes  or
     9  PILOT without incurring interest or penalty, submit a written request to
    10  the assessor asking [him or her] the assessor to extend the filing dead-
    11  line  and grant the exemption. Such request shall contain an explanation
    12  of why the deadline was missed, and shall be accompanied  by  a  renewal
    13  application,  reflecting  the facts and circumstances as they existed on
    14  the taxable status date. The assessor may extend the filing deadline and
    15  grant the exemption if [he or she] the assessor is  satisfied  that  (i)
    16  good  cause  existed  for the failure to file the renewal application by
    17  the taxable status date, and that (ii) the applicant is otherwise  enti-
    18  tled  to the exemption. The assessor shall make a determination and mail
    19  notice [of his or her determination] thereof to the owner. If the deter-
    20  mination states that the assessor has granted the exemption, [he or she]
    21  the assessor shall thereupon be authorized and directed to  correct  the
    22  assessment  roll  accordingly,  or,  if  another  person  has custody or
    23  control of the assessment roll, to direct that person to make the appro-
    24  priate corrections. If the correction  is  not  made  before  taxes  are
    25  levied,  the  failure to take the exemption into account in the computa-
    26  tion of the tax shall be deemed a "clerical error" for purposes of title
    27  three of article five of this chapter, and shall be corrected according-
    28  ly.
    29    § 7. This act shall take effect immediately and  shall  apply  to  all
    30  applications for exemptions pursuant to section 467 of the real property
    31  tax  law  on  assessment  rolls  that  are based on taxable status dates
    32  occurring on and after October 1, 2023.
 
    33                                   PART L
 
    34    Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
    35  real  property  tax  law  relating to oil and gas charges, as amended by
    36  section 1 of part C of chapter 59 of the laws of  2020,  is  amended  to
    37  read as follows:
    38    §  2.  This  act  shall take effect immediately and shall be deemed to
    39  have been in full force and effect on and after April 1, 1992; provided,
    40  however that any charges imposed by section 593 of the real property tax
    41  law as added by section one of this act shall first be  due  for  values
    42  for assessment rolls with tentative completion dates after July 1, 1992,
    43  and  provided  further,  that  this  act  shall remain in full force and
    44  effect until March 31, [2024] 2027, at which time  section  593  of  the
    45  real  property  tax  law  as  added  by section one of this act shall be
    46  repealed.
    47    § 2. This act shall take effect immediately.
 
    48                                   PART M
 
    49    Section 1. The real property tax  law  is  amended  by  adding  a  new
    50  section 989 to read as follows:
    51    §  989.  Distribution  of  surplus in tax enforcement proceedings.  1.
    52  Notwithstanding the provisions of any general, special or local  law  to

        S. 4009                            34                            A. 3009

     1  the  contrary,  when  a  property  owner is divested of title due to the
     2  foreclosure of a delinquent real property tax lien on the property,  and
     3  the  property  is sold to a third party, the proceeds of such sale shall
     4  be distributed as follows:
     5    (a)  If  the  proceeds of the sale are less than or equal to the total
     6  taxes due on the property plus interest,  penalties  and  other  charges
     7  duly imposed upon the property, including the administrative costs asso-
     8  ciated  with  the foreclosure process, the entire proceeds shall be paid
     9  to the local government.
    10    (b) If the proceeds of the sale exceed the  total  taxes  due  on  the
    11  property  plus  interest,  penalties and other charges duly imposed upon
    12  the property, including the administrative  costs  associated  with  the
    13  foreclosure process, the excess shall be distributed as follows:
    14    (i) If the property is not subject to other liens, the excess proceeds
    15  shall be paid to the prior owner or owners of the property.
    16    (ii)  If the property is subject to other liens, the lienholders shall
    17  be paid from the excess proceeds in the  same  order  and  to  the  same
    18  extent as they would be in an action to foreclose a mortgage pursuant to
    19  article  thirteen  of the real property actions and proceedings law. Any
    20  proceeds remaining after the other lienholders have been so  paid  shall
    21  be paid to the prior owner or owners of the property.
    22    2. The provisions of this section shall apply whether property is sold
    23  through a public auction or otherwise.
    24    3.  When a foreclosure concludes with the tax district taking title to
    25  property, the provisions of this section  shall  not  apply  unless  and
    26  until  the  tax  district  sells the property to a third party; provided
    27  that in such a case, if there are excess proceeds  to  be  paid  to  the
    28  prior  owner  or  owners of the property, such proceeds shall be paid to
    29  the owner or owners of the property prior to its acquisition by the  tax
    30  district.
    31    4.  The  provisions of this section shall not apply to the enforcement
    32  of tax liens on abandoned real property. For purposes of  this  section,
    33  real property shall be deemed abandoned if it:
    34    (a)  has  been included on a local municipal roll, registry or list of
    35  vacant and abandoned residential property  pursuant  to  section  eleven
    36  hundred eleven-a of this chapter, or
    37    (b)  has  been  certified  as  abandoned commercial or industrial real
    38  property pursuant to article nineteen-A of the real property actions and
    39  proceedings law, or
    40    (c) has been included on the statewide registry of  vacant  and  aban-
    41  doned  property  pursuant  to  section  thirteen hundred ten of the real
    42  property actions and proceedings law.
    43    5. This section shall be construed to supersede all  general,  special
    44  and  local laws relating to tax enforcement to the extent that such laws
    45  would otherwise allow the proceeds of a sale  to  be  distributed  in  a
    46  manner  other  than  as  set  forth in this section. This section is not
    47  intended to supersede such laws in other respects.
    48    § 2. Subdivision 2 of section 1104 of the real property  tax  law,  as
    49  amended  by  chapter 532 of the laws of 1994, paragraph (iii) as further
    50  amended by subdivision (b) of section 1 of part W of chapter 56  of  the
    51  laws of 2010, is amended to read as follows:
    52    2. The provisions of this article shall not be applicable to a county,
    53  city or town which: (i) on January first, nineteen hundred ninety-three,
    54  was authorized to enforce the collection of delinquent taxes pursuant to
    55  a county charter, city charter, administrative code or special law; (ii)
    56  adopted  a local law, no later than July first, nineteen hundred ninety-

        S. 4009                            35                            A. 3009
 
     1  four, providing that the collection of taxes in  such  county,  city  or
     2  town  shall  continue  to  be enforced pursuant to such charter, code or
     3  special law, as such charter, code or special law may from time to  time
     4  be  amended;  and  (iii) filed a copy of such local law with the commis-
     5  sioner  no  later  than  August  first,  nineteen  hundred  ninety-four.
     6  Provided,  however,  that nothing contained herein shall be construed to
     7  exempt any such county, city or town from the provisions of section nine
     8  hundred eighty-nine of this chapter.
     9    § 3. Subdivision 1 of section 1166 of the real property  tax  law,  as
    10  amended  by  chapter  500  of  the  laws  of 2015, is amended to read as
    11  follows:
    12    1. Whenever any tax district shall become vested  with  the  title  to
    13  real  property by virtue of a foreclosure proceeding brought pursuant to
    14  the provisions of this article, such tax district is  hereby  authorized
    15  to  sell  and  convey the real property so acquired, which shall include
    16  any and all gas, oil or mineral rights associated with such real proper-
    17  ty, either with or without advertising  for  bids,  notwithstanding  the
    18  provisions  of any general, special or local law.  The proceeds obtained
    19  from any such sale shall  be  distributed  in  the  manner  provided  by
    20  section nine hundred eighty-nine of this chapter.
    21    §  4.  This  act shall take effect October 1, 2023, and shall apply to
    22  all tax foreclosure proceedings commenced on and after such date.
 
    23                                   PART N

    24    Section 1. Section 575-b of the real property tax law  is  amended  by
    25  adding a new subdivision 1-a to read as follows:
    26    1-a.  Notwithstanding  any provision of law to the contrary, the solar
    27  or wind energy system appraisal model authorized by this  section  shall
    28  be  identified, formulated, adopted, published, and updated periodically
    29  in the manner provided in this section without regard to the  provisions
    30  of article two of the state administrative procedure act.
    31    §  2. Subparagraph (viii) of paragraph (b) of subdivision 2 of section
    32  102 of the state administrative procedure act, as amended by chapter  74
    33  of the laws of 1987, is amended to read as follows:
    34    (viii)  appraisal  models,  discount  rates, state equalization rates,
    35  class ratios, special equalization rates and special equalization ratios
    36  established pursuant to the real property tax law;
    37    § 3.  No assessing unit that failed to use the appraisal model  pursu-
    38  ant  to section 575-b of the real property tax law in 2022 shall be held
    39  liable for failing to use such model in 2022. Within fifteen  days  from
    40  the effective date of this act, the commissioner of taxation and finance
    41  may  readopt  the  2022 appraisal model or models and discount rates for
    42  use in 2023, without additional consultation with  the  New  York  state
    43  energy  research  and development authority or the New York state asses-
    44  sors association,  and  without  soliciting  or  considering  additional
    45  public comments.
    46    §  4.  This  act  shall take effect immediately and shall be deemed to
    47  have been in full force and effect on and after the  effective  date  of
    48  part X of chapter 59 of the laws of 2021.

    49                                   PART O
 
    50    Section  1.  Subparagraph (i) of the opening paragraph of section 1210
    51  of the tax law is REPEALED and a new subparagraph (i) is added  to  read
    52  as follows:

        S. 4009                            36                            A. 3009
 
     1    (i)  with  respect  to a city of one million or more and the following
     2  counties: (1) any such city having a population of one million  or  more
     3  is  hereby authorized and empowered to adopt and amend local laws, ordi-
     4  nances or resolutions imposing such taxes in any such city, at the  rate
     5  of four and one-half percent;
     6    (2)  the following counties that impose taxes described in subdivision
     7  (a) of this section at the rate of three percent as authorized above  in
     8  this  paragraph are hereby further authorized and empowered to adopt and
     9  amend local laws, ordinances, or  resolutions  imposing  such  taxes  at
    10  additional  rates,  in  quarter  percent  increments,  not to exceed the
    11  following rates, which rates are additional to the  three  percent  rate
    12  authorized above in this paragraph:
    13    (A)  One  percent  -  Albany, Broome, Cattaraugus, Cayuga, Chautauqua,
    14  Chemung, Chenango,  Clinton,  Columbia,  Cortland,  Delaware,  Dutchess,
    15  Essex,  Franklin,  Fulton,  Genesee, Greene, Hamilton, Jefferson, Lewis,
    16  Livingston, Madison, Monroe,  Montgomery,  Niagara,  Onondaga,  Ontario,
    17  Orange,  Orleans,  Oswego,  Otsego,  Putnam,  Rensselaer,  Rockland, St.
    18  Lawrence, Saratoga, Schenectady, Schoharie, Schuyler,  Seneca,  Steuben,
    19  Suffolk,  Sullivan,  Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
    20  Westchester, Wyoming, Yates;
    21    (B) One and one-quarter percent - Herkimer, Nassau;
    22    (C) One and one-half percent - Allegany;
    23    (D) One and three-quarters percent - Erie, Oneida.
    24    (E) Provided, however, that (I) the  county  of  Rockland  may  impose
    25  additional  rates  of five-eighths percent and three-eighths percent, in
    26  lieu of imposing such additional rate  in  quarter  percent  increments;
    27  (II)  the  county  of  Ontario may impose additional rates of one-eighth
    28  percent and three-eighths percent, in lieu of imposing  such  additional
    29  rate  in quarter percent increments; (III) three-quarters percent of the
    30  additional rate authorized to be imposed by the county of  Nassau  shall
    31  be  subject to the limitation set forth in section twelve hundred sixty-
    32  two-e of this article; (IV) the one  and  three-quarters  percent  addi-
    33  tional  rate to be imposed by the county of Erie shall be subject to the
    34  limitations set forth in section  twelve  hundred  sixty-two-q  of  this
    35  article.
    36    § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
    37  tax  law  is  REPEALED  and  a new subparagraph (ii) is added to read as
    38  follows:
    39    (ii) the following cities that impose taxes described  in  subdivision
    40  (a) of this section at the rate of one and one-half percent or higher as
    41  authorized  above  in  this paragraph for such cities are hereby further
    42  authorized and empowered to adopt and amend local laws,  ordinances,  or
    43  resolutions  imposing such taxes at additional rates, in quarter percent
    44  increments, not to exceed the following rates,  which  rates  are  addi-
    45  tional  to the one and one-half percent or higher rates authorized above
    46  in this paragraph:
    47    (1) One percent - Mount Vernon; New Rochelle; Oswego; White Plains;
    48    (2) One and one-quarter percent - None;
    49    (3) One and one-half percent - Yonkers.
    50    § 3. Subparagraphs (iii) and (iv) of the opening paragraph of  section
    51  1210  of  the tax law are REPEALED and a new subparagraph (iii) is added
    52  to read as follows:
    53    (iii) the maximum rate referred to in section twelve  hundred  twenty-
    54  four  of this article shall be calculated without reference to the addi-
    55  tional rates authorized for counties, other than the counties of Cayuga,

        S. 4009                            37                            A. 3009
 
     1  Cortland, Fulton, Madison, and Otsego, in clause two of subparagraph (i)
     2  and the cities in subparagraph (ii) of this paragraph.
     3    §  4.  Section 1210 of the tax law is amended by adding a new subdivi-
     4  sion (p) to read as follows:
     5    (p) Notwithstanding any provision of this section or any other law  to
     6  the  contrary, a county authorized to impose an additional rate or rates
     7  of sales and compensating use taxes by clause two of subparagraph (i) of
     8  the opening paragraph of this section, or a city, other than the city of
     9  Mount Vernon, authorized to impose an additional rate of such  taxes  by
    10  subparagraph  (ii)  of  such  opening  paragraph, may adopt a local law,
    11  ordinance, or resolution by a majority vote of its governing body impos-
    12  ing such rate or rates for a period not to exceed  two  years,  and  any
    13  such  period  must  end  on  November thirtieth of an odd-numbered year.
    14  Notwithstanding the preceding sentence, the  city  of  White  Plains  is
    15  authorized  to exceed such two-year limitation to impose the tax author-
    16  ized by subparagraph (ii) of  such  opening  paragraph  for  the  period
    17  commencing  on  September first, two thousand twenty-three and ending on
    18  November thirtieth, two thousand twenty-five.  Any such local law, ordi-
    19  nance, or resolution shall also be subject to the provisions of subdivi-
    20  sions (d) and (e) of this section.
    21    § 5. Section 1210-E of the tax law is REPEALED.
    22    § 6.  Subdivision (a) of section 1223 of the tax law,  as  amended  by
    23  chapter 44 of the laws of 2019, is amended to read as follows:
    24    (a)  No  transaction taxable under sections twelve hundred two through
    25  twelve hundred four of this article shall  be  taxed  pursuant  to  this
    26  article  by any county or by any city located therein, or by both, at an
    27  aggregate rate in excess of the highest rate set forth in the applicable
    28  subdivision of section twelve hundred one of this  article  or,  in  the
    29  case  of  any  taxes imposed pursuant to the authority of section twelve
    30  hundred ten or twelve hundred eleven of this article (other  than  taxes
    31  imposed  by the county of Nassau, Erie, [Steuben, Cattaraugus, Suffolk,]
    32  Oneida, [Genesee, Greene, Franklin, Hamilton,] Herkimer,  [Tioga,  Orle-
    33  ans,]  and  Allegany[,  Ulster,  Albany,  Rensselaer, Tompkins, Wyoming,
    34  Columbia, Schuyler, Rockland, Chenango, Monroe, Chemung, Seneca,  Sulli-
    35  van,  Wayne,  Livingston,  Schenectady,  Montgomery,  Delaware, Clinton,
    36  Niagara, Yates, Lewis, Essex, Dutchess, Schoharie,  Putnam,  Chautauqua,
    37  Orange, Oswego, Ontario, Jefferson, St. Lawrence, Westchester or Ononda-
    38  ga  and  by  the  county of Cortland and the city of Cortland and by the
    39  county of Broome and the city of Binghamton and by the county of  Cayuga
    40  and  the  city  of  Auburn  and  by the county of Otsego and the city of
    41  Oneonta and by the county of Madison and the city of Oneida and  by  the
    42  county  of Fulton and the city of Gloversville or the city of Johnstown]
    43  as provided in section twelve hundred ten of this article) at a rate  in
    44  excess of [three] four percent, except that, in the city of Yonkers[, in
    45  the  city  of  Mount Vernon, in the city of New Rochelle, in the city of
    46  Fulton, in the city of Oswego, and in the city  of  White  Plains,]  the
    47  rate  may not be in excess of four and one-half percent, and except that
    48  in the city of Poughkeepsie in the county of Dutchess,  if  such  county
    49  withdraws  from the metropolitan commuter transportation district pursu-
    50  ant to section twelve hundred seventy-nine-b of the  public  authorities
    51  law  and  if  the revenues from a three-eighths percent rate of such tax
    52  imposed by such county, pursuant to  the  authority  of  section  twelve
    53  hundred  ten  of this article, are required by local laws, ordinances or
    54  resolutions to be set aside for mass transportation purposes,  the  rate
    55  may not be in excess of [three] four and three-eighths percent.

        S. 4009                            38                            A. 3009
 
     1    §  7.  Subdivisions  (d), (e), (f), (g), (h), (i), (j), (k), (l), (m),
     2  (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z),  (z-1),
     3  (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section
     4  1224 of the tax law are REPEALED.
     5    § 8. Section 1224 of the tax law is amended by adding three new subdi-
     6  visions (d), (e), and (f) to read as follows:
     7    (d)  For  purposes  of this section, the term "prior right" shall mean
     8  the preferential right to impose any tax described  in  sections  twelve
     9  hundred  two  and twelve hundred three, or twelve hundred ten and twelve
    10  hundred eleven, of this article and thereby to preempt such tax  and  to
    11  preclude  another  municipal corporation from imposing or continuing the
    12  imposition of such tax to the  extent  that  such  right  is  exercised.
    13  However, the right of preemption shall only apply within the territorial
    14  limits of the taxing jurisdiction having the right of preemption.
    15    (e)  Each  of  the  following  counties and cities shall have the sole
    16  right to impose the following additional rate of sales and  compensating
    17  use taxes in excess of three percent that such county or city is author-
    18  ized  to  impose  pursuant to clause two of subparagraph (i) or subpara-
    19  graph (ii) of the opening paragraph of section  twelve  hundred  ten  of
    20  this  article.  Such  additional  rates  of  tax shall not be subject to
    21  preemption.
    22    (1) Counties:
    23    (A) One percent - Albany, Broome,  Cattaraugus,  Chautauqua,  Chemung,
    24  Chenango,  Clinton, Columbia, Delaware, Dutchess, Essex, Franklin, Gene-
    25  see, Greene, Hamilton, Jefferson, Lewis, Livingston, Monroe, Montgomery,
    26  Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Putnam, Rensselaer,
    27  Rockland, St.   Lawrence, Saratoga,  Schenectady,  Schoharie,  Schuyler,
    28  Seneca,  Steuben,  Suffolk,  Sullivan,  Tioga, Tompkins, Ulster, Warren,
    29  Washington, Wayne, Westchester, Wyoming, Yates;
    30    (B) One and one-quarter percent - Herkimer, Nassau;
    31    (C) One and one-half percent - Allegany;
    32    (D) One and three-quarters percent - Erie, Oneida.
    33    (E) Provided, however, that the county of Westchester shall  have  the
    34  sole  right  to impose the additional one percent rate of tax which such
    35  county is authorized to impose pursuant to the authority of  clause  two
    36  of  subparagraph  (i) of the opening paragraph of section twelve hundred
    37  ten of this article in the area of the  county  outside  the  cities  of
    38  Mount Vernon, New Rochelle, White Plains, and Yonkers.
    39    (2) Cities:
    40    (A) One-quarter of one percent - Rome;
    41    (B) One-half of one percent - None;
    42    (C) Three-quarters of one percent - None;
    43    (D) One percent - Mount Vernon, New Rochelle, White Plains;
    44    (E) One and one-quarter percent - None;
    45    (F) One and one-half percent - Yonkers.
    46    (f)  Each  of  the following cities is authorized to preempt the taxes
    47  imposed by the county in which it is located pursuant to  the  authority
    48  of section twelve hundred ten of this article, to the extent of one-half
    49  the  maximum  aggregate rate authorized under section twelve hundred ten
    50  of this article, including the additional rate that the county in  which
    51  such  city is located is authorized to impose: Auburn, in Cayuga county;
    52  Cortland, in Cortland county;  Gloversville  and  Johnstown,  in  Fulton
    53  county;  Oneida, in Madison county; Oneonta, in Otsego county. As of the
    54  date this subdivision takes effect, any such preemption by such  a  city
    55  in effect on such date shall continue in full force and effect until the
    56  effective  date  of  a  local  law,  ordinance, or resolution adopted or

        S. 4009                            39                            A. 3009
 
     1  amended by the city to change such preemption. Any preemption by such  a
     2  city  pursuant to this subdivision that takes effect after the effective
     3  date of this subdivision shall be subject to the notice requirements  in
     4  section  twelve  hundred  twenty-three  of this subpart and to the other
     5  requirements of this article.
     6    § 9. Subdivision (b) of section 1262-b of the tax law is REPEALED.
     7    § 10. Section 1262-e of the tax law, as amended by section 2  of  item
     8  BB  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
     9  amended to read as follows:
    10    § 1262-e. Establishment of local  government  assistance  programs  in
    11  Nassau  county. 1. Towns and cities. Notwithstanding any other provision
    12  of law to the contrary, for  the  calendar  year  beginning  on  January
    13  first, nineteen hundred ninety-eight and continuing through the calendar
    14  year  beginning  on  January  first, two thousand twenty-three, and each
    15  calendar year thereafter beginning  on  January  first,  the  county  of
    16  Nassau  shall  enact and establish a local government assistance program
    17  for the towns and cities within such county to  assist  such  towns  and
    18  cities  to  minimize real property taxes; defray the cost and expense of
    19  the treatment, collection, management, disposal, and  transportation  of
    20  municipal  solid waste, and to comply with the provisions of chapter two
    21  hundred ninety-nine of the laws of nineteen  hundred  eighty-three;  and
    22  defray  the  cost  of maintaining conservation and environmental control
    23  programs. Such special assistance program for the towns and cities with-
    24  in such county and the funding for such program shall equal one-third of
    25  the revenues received by such county from the imposition of  the  three-
    26  quarters  percent  sales  and use tax during calendar years two thousand
    27  one, two thousand two, two thousand three, two thousand four, two  thou-
    28  sand five, two thousand six, two thousand seven, two thousand eight, two
    29  thousand  nine,  two  thousand  ten,  two  thousand eleven, two thousand
    30  twelve, two thousand  thirteen,  two  thousand  fourteen,  two  thousand
    31  fifteen,  two  thousand  sixteen,  two  thousand seventeen, two thousand
    32  eighteen, two thousand nineteen, two thousand twenty, two thousand twen-
    33  ty-one, two thousand twenty-two [and],  two  thousand  twenty-three  and
    34  each  calendar  year  thereafter additional to the regular three percent
    35  rate authorized for such county in section twelve hundred  ten  of  this
    36  article.  The monies for such special local assistance shall be paid and
    37  distributed to the towns and cities on a  per  capita  basis  using  the
    38  population  figures  in  the  latest  decennial federal census. Provided
    39  further, that notwithstanding any other law to the contrary, the  estab-
    40  lishment  of  such special assistance program shall preclude any city or
    41  town within such county from preempting  or  claiming  under  any  other
    42  section  of  this  chapter  the revenues derived from the additional tax
    43  authorized by section twelve  hundred  ten  of  this  article.  Provided
    44  further,  that  any  such  town  or towns may, by resolution of the town
    45  board, apportion all or a  part  of  monies  received  in  such  special
    46  assistance  program  to  an  improvement  district  or  special district
    47  account within such town or towns in order to accomplish the purposes of
    48  this special assistance program.
    49    2. Villages. Notwithstanding any other provision of law to the contra-
    50  ry, for the calendar year beginning on January first,  nineteen  hundred
    51  ninety-eight and continuing through the calendar year beginning on Janu-
    52  ary first, two thousand twenty-three, and each calendar year thereafter,
    53  the  county  of  Nassau,  by local law, is hereby empowered to enact and
    54  establish a local government assistance program for the villages  within
    55  such  county  to  assist  such villages to minimize real property taxes;
    56  defray the cost and expense of the  treatment,  collection,  management,

        S. 4009                            40                            A. 3009
 
     1  disposal,  and  transportation  of municipal solid waste; and defray the
     2  cost of maintaining conservation and environmental control programs. The
     3  funding of such local assistance program for the  villages  within  such
     4  county  may  be  provided  by  Nassau county during any calendar year in
     5  which such village local assistance program is in effect and  shall  not
     6  exceed  one-sixth  of  the  revenues received from the imposition of the
     7  three-quarters percent sales and use tax that are  remaining  after  the
     8  towns  and cities have received their funding pursuant to the provisions
     9  of subdivision one of this section.  The funding for such village  local
    10  assistance  program  shall  be paid and distributed to the villages on a
    11  per capita basis using the population figures in  the  latest  decennial
    12  federal census. Provided further, that the establishment of such village
    13  local  assistance  program shall preclude any village within such county
    14  from preempting or claiming under any other section of this chapter  the
    15  revenues  derived  from  the additional tax authorized by section twelve
    16  hundred ten of this article.
    17    § 11. Section 1262-g of the tax law, as amended by section 2  of  item
    18  DD  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
    19  amended to read as follows:
    20    § 1262-g. Oneida county allocation and distribution of net collections
    21  from the additional [one percent rate] rates of sales  and  compensating
    22  use  taxes.  Notwithstanding  any  contrary provision of law, (a) if the
    23  county of Oneida imposes sales and compensating  use  taxes  at  a  rate
    24  which  is one percent additional to the three percent rate authorized by
    25  section twelve hundred ten  of  this  article,  as  authorized  by  such
    26  section,  [(a)]  (i) where a city in such county imposes tax pursuant to
    27  the authority of subdivision (a) of such  section  twelve  hundred  ten,
    28  such county shall allocate, distribute and pay in cash quarterly to such
    29  city one-half of the net collections attributable to such additional one
    30  percent  rate of the county's taxes collected in such city's boundaries;
    31  [(b)] (ii) where a city in such county does not impose tax  pursuant  to
    32  the  authority  of  such  subdivision (a) of such section twelve hundred
    33  ten, such county shall allocate, distribute and pay in cash quarterly to
    34  such city not so imposing tax a portion of the net collections attribut-
    35  able to one-half of the county's additional  one  percent  rate  of  tax
    36  calculated  on the basis of the ratio which such city's population bears
    37  to the county's total population,  such  populations  as  determined  in
    38  accordance  with  the  latest  decennial federal census or special popu-
    39  lation census taken pursuant to section twenty of the general  municipal
    40  law  completed  and  published prior to the end of the quarter for which
    41  the allocation is made, which special census  must  include  the  entire
    42  area  of the county; [and (c)] provided, however, that such county shall
    43  dedicate the first one million five  hundred  thousand  dollars  of  net
    44  collections  attributable  to  such  additional  one percent rate of tax
    45  received by such county after the county receives in the aggregate eigh-
    46  teen million five hundred thousand dollars of net collections from  such
    47  additional  one  percent  rate  of  tax [imposed for any of the periods:
    48  September first, two thousand twelve through  August  thirty-first,  two
    49  thousand thirteen; September first, two thousand thirteen through August
    50  thirty-first,  two  thousand fourteen; and September first, two thousand
    51  fourteen through August thirty-first, two  thousand  fifteen;  September
    52  first,  two  thousand  fifteen through August thirty-first, two thousand
    53  sixteen; and September first, two thousand sixteen through August  thir-
    54  ty-first,  two  thousand seventeen; September first, two thousand seven-
    55  teen through  August  thirty-first,  two  thousand  eighteen;  September
    56  first,  two  thousand eighteen through August thirty-first, two thousand

        S. 4009                            41                            A. 3009

     1  twenty; and September first, two thousand twenty through August  thirty-
     2  first,  two  thousand  twenty-three,]  to  an allocation on a per capita
     3  basis, utilizing figures from the latest  decennial  federal  census  or
     4  special population census taken pursuant to section twenty of the gener-
     5  al  municipal  law, completed and published prior to the end of the year
     6  for which such allocation is made, which special census must include the
     7  entire area of such county, to be allocated and  distributed  among  the
     8  towns  of  Oneida  county  by appropriation of its board of legislators;
     9  provided, further, that nothing  herein  shall  require  such  board  of
    10  legislators to make any such appropriation until it has been notified by
    11  any  town  by  appropriate  resolution and, in any case where there is a
    12  village wholly or partly located within a town, a  resolution  of  every
    13  such  village,  embodying  the  agreement  of  such  town and village or
    14  villages upon the amount of such appropriation to be distributed to such
    15  village or villages out of the allocation to the town or towns in  which
    16  it  is located. (b) If the county of Oneida imposes sales and compensat-
    17  ing use taxes at a rate which is one and  three-quarters  percent  addi-
    18  tional  to  the  three percent rate authorized by section twelve hundred
    19  ten of this article, as authorized pursuant to clause  two  of  subpara-
    20  graph (i) of the opening paragraph of section twelve hundred ten of this
    21  article,  net  collections attributable to the additional three-quarters
    22  percent of such additional rate shall not  be  subject  to  any  revenue
    23  distribution  agreement entered into by the county and the cities in the
    24  county pursuant to the authority of subdivision (c)  of  section  twelve
    25  hundred sixty-two of this part.
    26    §  12. Section 1262-h of the tax law, as amended by chapter 315 of the
    27  laws of 2020, is amended to read as follows:
    28    § 1262-h. Allocation and distribution  of  net  collections  from  the
    29  additional one percent rate of sales and compensating use taxes in Steu-
    30  ben county. Notwithstanding any provision of law to the contrary, of the
    31  net  collections  received  by  the county of Steuben as a result of the
    32  imposition of the additional one  percent  rate  of  tax  authorized  by
    33  section twelve hundred ten of this article [(a) during the period begin-
    34  ning  December  first, nineteen hundred ninety-three and ending November
    35  thirtieth, nineteen hundred ninety-four, the county of Steuben shall pay
    36  or cause to be paid to the city of Hornell the sum of two hundred  thou-
    37  sand  dollars,  to the city of Corning the sum of three hundred thousand
    38  dollars, and the sum of five hundred thousand dollars to the  towns  and
    39  villages  of  the county of Steuben, on the basis of the ratio which the
    40  full valuation of real property in each town or  village  bears  to  the
    41  aggregate  full  valuation  of  real  property  in  all of the towns and
    42  villages in such area. Of the net collections received by the county  of
    43  Steuben  as  a  result  of the imposition of said additional one percent
    44  rate of tax authorized by section twelve hundred  ten  of  this  article
    45  during the period beginning December first, nineteen hundred ninety-four
    46  and  ending November thirtieth, nineteen hundred ninety-five, the county
    47  of Steuben shall pay or cause to be paid to the city of Hornell the  sum
    48  of  three  hundred  thousand  dollars, to the city of Corning the sum of
    49  four hundred fifty thousand dollars, and the sum of seven hundred  fifty
    50  thousand  dollars to the towns and villages of the county of Steuben, on
    51  the basis of the ratio which the full valuation of real property in each
    52  town or village bears to the aggregate full valuation of  real  property
    53  in all of the towns and villages in such area; and (b) during the period
    54  beginning December first, nineteen hundred ninety-five and ending Novem-
    55  ber  thirtieth, two thousand seven, the county of Steuben shall annually
    56  pay or cause to be paid to the city of Hornell the sum of  five  hundred

        S. 4009                            42                            A. 3009

     1  fifty  thousand  dollars,  to the city of Corning the sum of six hundred
     2  thousand dollars, and the sum of seven hundred fifty thousand dollars to
     3  the towns and villages of the county of Steuben, on  the  basis  of  the
     4  ratio  which the full valuation of real property in each town or village
     5  bears to the aggregate full valuation of real property  in  all  of  the
     6  towns  and villages in such area; and during the period beginning Decem-
     7  ber first, two thousand seven and ending November thirtieth,  two  thou-
     8  sand  nine, the county of Steuben shall annually pay or cause to be paid
     9  to the city of Hornell the sum of six hundred ten thousand  dollars,  to
    10  the  city  of Corning the sum of six hundred fifty thousand dollars, and
    11  the sum of seven  hundred  fifty  thousand  dollars  to  the  towns  and
    12  villages  of  the county of Steuben, on the basis of the ratio which the
    13  full valuation of real property in each town or  village  bears  to  the
    14  aggregate  full  valuation  of  real  property  in  all of the towns and
    15  villages in such area; and during the period beginning  December  first,
    16  two  thousand  nine  and ending November thirtieth, two thousand eleven,
    17  the county of Steuben shall annually pay or cause to be paid to the city
    18  of Hornell the sum of seven hundred ten thousand dollars, to the city of
    19  Corning the sum of seven hundred ten thousand dollars, and  the  sum  of
    20  seven  hundred  fifty  thousand dollars to the towns and villages of the
    21  county of Steuben, on the basis of the ratio which the full valuation of
    22  real property in each town or village bears to the aggregate full  valu-
    23  ation  of  real  property in all of the towns and villages in such area;
    24  and during the period beginning December first, two thousand eleven  and
    25  ending  November thirtieth, two thousand thirteen, the county of Steuben
    26  shall annually pay or cause to be paid to the city of Hornell the sum of
    27  seven hundred forty thousand dollars, to the city of Corning the sum  of
    28  seven hundred forty thousand dollars, and the sum of seven hundred fifty
    29  thousand  dollars to the towns and villages of the county of Steuben, on
    30  the basis of the ratio which the full valuation of real property in each
    31  town or village bears to the aggregate full valuation of  real  property
    32  in  all  of  the  towns and villages in such area; and during the period
    33  beginning December first, two  thousand  thirteen  and  ending  November
    34  thirtieth,  two  thousand  fifteen, the county of Steuben shall annually
    35  pay or cause to be paid to the city of Hornell the sum of seven  hundred
    36  sixty-five  thousand  dollars,  to  the city of Corning the sum of seven
    37  hundred sixty-five thousand dollars, and the sum of seven hundred  fifty
    38  thousand  dollars to the towns and villages of the county of Steuben, on
    39  the basis of the ratio which the full valuation of real property in each
    40  town or village bears to the aggregate full valuation of  real  property
    41  in  all  of  the  towns and villages in such area; and during the period
    42  beginning December first, two thousand fifteen and ending November thir-
    43  tieth, two thousand seventeen, the county of Steuben shall annually  pay
    44  or  cause  to  be  paid  to the city of Hornell the sum of seven hundred
    45  sixty-five thousand dollars, to the city of Corning  the  sum  of  seven
    46  hundred  sixty-five thousand dollars, and the sum of seven hundred fifty
    47  thousand dollars to the towns and villages of the county of Steuben,  on
    48  the basis of the ratio which the full valuation of real property in each
    49  town  or  village bears to the aggregate full valuation of real property
    50  in all of the towns and villages in such area;  and  during  the  period
    51  beginning  December  first,  two  thousand seventeen and ending November
    52  thirtieth, two thousand twenty, the county of Steuben shall annually pay
    53  or cause to be paid to the city of Hornell  the  sum  of  seven  hundred
    54  eighty thousand dollars, to the city of Corning the sum of seven hundred
    55  eighty  thousand  dollars,  and  the sum of seven hundred fifty thousand
    56  dollars to the towns and villages of the county of Steuben, on the basis

        S. 4009                            43                            A. 3009

     1  of the ratio which the full valuation of real property in each  town  or
     2  village bears to the aggregate full valuation of real property in all of
     3  the  towns  and  villages  in  such area; and during the] for any period
     4  beginning  on  or  after December first, two thousand twenty [and ending
     5  November thirtieth, two thousand twenty-three], the  county  of  Steuben
     6  shall annually pay or cause to be paid to the city of Hornell the sum of
     7  eight hundred twenty thousand dollars, to the city of Corning the sum of
     8  eight  hundred  twenty  thousand  dollars,  and the sum of seven hundred
     9  ninety thousand dollars to the towns and villages of the county of Steu-
    10  ben, on the basis of the ratio which the full valuation of real property
    11  in each town or village bears to the aggregate full  valuation  of  real
    12  property in all of the towns and villages in such area.
    13    §  13. Subdivision (c) of section 1262-j of the tax law, as amended by
    14  section 2 of item TT of subpart C of part XXX of chapter 58 of the  laws
    15  of 2020, is amended to read as follows:
    16    (c)  Notwithstanding  any provision of law to the contrary, of the net
    17  collections received by the  county  of  Suffolk  as  a  result  of  the
    18  increase  of one percent to the tax authorized by section twelve hundred
    19  ten of this article for [the] any period beginning or after June  first,
    20  two  thousand  one  [and ending November thirtieth, two thousand twenty-
    21  three], imposed by local laws or resolutions (by simple majority) by the
    22  county legislature, and signed by the county executive,  the  county  of
    23  Suffolk  shall  allocate  such  net collections as follows: no less than
    24  one-eighth and no  more  than  three-eighths  of  such  net  collections
    25  received  shall  be dedicated for public safety purposes and the balance
    26  shall be deposited in the general fund of the county of Suffolk.
    27    § 14. Section 1262-l of the tax law, as amended by section 2  of  item
    28  MM  of  subpart  C  of  part  XXX  of chapter 58 of the laws of 2020, is
    29  amended to read as follows:
    30    § 1262-1. Allocation and distribution  of  net  collections  from  the
    31  additional rate of sales and compensating use tax in Rockland county. 1.
    32  Notwithstanding  any  provision of law to the contrary, if the county of
    33  Rockland imposes the additional five-eighths of one percent rate of  tax
    34  authorized  by  section  twelve hundred ten of this article [during the]
    35  for each period beginning on or after March  first,  two  thousand  two,
    36  [and  ending November thirtieth, two thousand twenty-three,] such county
    37  shall allocate and distribute twenty percent of the net collections from
    38  such additional rate to the towns and villages in the county in  accord-
    39  ance  with  subdivision  (c) of section twelve hundred sixty-two of this
    40  part on the basis of the ratio which the population of each such town or
    41  village bears to such county's total population; and
    42    2. Notwithstanding any provision of law to the contrary, if the county
    43  of Rockland imposes the additional three-eighths of one percent rate  of
    44  tax  authorized  by  section  twelve hundred ten of this article [during
    45  the] for any period beginning on or  after  March  first,  two  thousand
    46  seven,  [and ending November thirtieth, two thousand twenty-three,] such
    47  county shall allocate and distribute [sixteen  and  two-thirds]  thirty-
    48  three  and one-third percent of the net collections from such additional
    49  rate to the general funds of towns and villages  within  the  county  of
    50  Rockland  with  existing town and village police departments from [March
    51  first, two thousand seven through December  thirty-first,  two  thousand
    52  seven and thirty-three and one-third percent of the net collections from
    53  such  additional  rate  from] January first, two thousand eight [through
    54  November thirtieth,  two  thousand  twenty-three]  and  thereafter.  The
    55  monies  allocated  and distributed pursuant to this subdivision shall be
    56  allocated and distributed to towns and villages with police  departments

        S. 4009                            44                            A. 3009
 
     1  on  the  basis  of  the  number  of full-time equivalent police officers
     2  employed by each police department and shall not be  used  for  salaries
     3  heretofore or hereafter negotiated.
     4    §  15.  Section 1262-n of the tax law, as amended by section 2 of item
     5  CC of subpart C of part XXX of chapter  58  of  the  laws  of  2020,  is
     6  amended to read as follows:
     7    §  1262-n.  Disposition  of  net  collections  from the additional one
     8  percent rate of sales and  compensating  use  taxes  in  the  county  of
     9  Niagara.    Notwithstanding any contrary provision of law, if the county
    10  of Niagara imposes the additional one percent rate of sales and  compen-
    11  sating  use taxes authorized by section twelve hundred ten of this arti-
    12  cle for all or any portion of [the] each period beginning  on  or  after
    13  March  first,  two  thousand  three  [and ending November thirtieth, two
    14  thousand twenty-three,] the county shall use all  net  collections  from
    15  such  additional one percent rate to pay the county's expenses for Medi-
    16  caid. The net collections from the additional one percent  rate  imposed
    17  pursuant  to  this  section  shall  be deposited in a special fund to be
    18  created by such county separate and  apart  from  any  other  funds  and
    19  accounts  of the county. Any and all remaining net collections from such
    20  additional one percent tax, after the Medicaid expenses are paid,  shall
    21  be deposited by the county of Niagara in the general fund of such county
    22  for any county purpose.
    23    § 16. Section 1262-o of the tax law, as amended by section 2 of item F
    24  of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
    25  to read as follows:
    26    § 1262-o. Disposition of net collections from the additional  rate  of
    27  sales and compensating use taxes in the county of Chautauqua.  [Notwith-
    28  standing  any  contrary  provision  of  law, if the county of Chautauqua
    29  imposes the additional one and one-quarter percent  rate  of  sales  and
    30  compensating  use taxes authorized by section twelve hundred ten of this
    31  article for all or any portion of the period beginning March first,  two
    32  thousand  five  and  ending  August  thirty-first, two thousand six, the
    33  additional one percent rate authorized by such section for all or any of
    34  the period beginning September first, two thousand six and ending Novem-
    35  ber thirtieth, two thousand seven, the additional three-quarters of  one
    36  percent  rate  authorized  by  such section for all or any of the period
    37  beginning December first, two thousand seven and ending November thirti-
    38  eth, two thousand ten, the county shall allocate one-fifth  of  the  net
    39  collections  from  the  additional  three-quarters of one percent to the
    40  cities, towns and villages in the county on the basis of  their  respec-
    41  tive  populations,  determined  in  accordance with the latest decennial
    42  federal census or special population census taken  pursuant  to  section
    43  twenty of the general municipal law completed and published prior to the
    44  end  of  the  quarter for which the allocation is made, and allocate the
    45  remainder of the net collections from the additional  three-quarters  of
    46  one  percent  as  follows: (1) to pay the county's expenses for Medicaid
    47  and other expenses required by law; (2) to pay for local road and bridge
    48  projects; (3) for the purposes of  capital  projects  and  repaying  any
    49  debts  incurred  for  such  capital projects in the county of Chautauqua
    50  that are not otherwise paid for by revenue received  from  the  mortgage
    51  recording  tax;  and  (4)  for  deposit  into  a reserve fund for bonded
    52  indebtedness established pursuant to the general municipal law. Notwith-
    53  standing any contrary provision of law,  if  the  county  of  Chautauqua
    54  imposes  the  additional one-half percent rate of sales and compensating
    55  use taxes authorized by such section twelve hundred ten for all  or  any
    56  of  the  period  beginning  December  first, two thousand ten and ending

        S. 4009                            45                            A. 3009

     1  November thirtieth, two thousand  fifteen,  the  county  shall  allocate
     2  three-tenths  of the net collections from the additional one-half of one
     3  percent to the cities, towns and villages in the county on the basis  of
     4  their  respective  populations, determined in accordance with the latest
     5  decennial federal census or special population census taken pursuant  to
     6  section  twenty  of  the  general  municipal law completed and published
     7  prior to the end of the quarter for which the allocation  is  made,  and
     8  allocate  the  remainder of the net collections from the additional one-
     9  half of one percent as follows: (1) to pay  the  county's  expenses  for
    10  Medicaid  and  other expenses required by law; (2) to pay for local road
    11  and bridge projects; (3) for the purposes of capital projects and repay-
    12  ing any debts incurred for such capital projects in the county of  Chau-
    13  tauqua  that  are  not  otherwise  paid for by revenue received from the
    14  mortgage recording tax; and (4) for deposit  into  a  reserve  fund  for
    15  bonded  indebtedness established pursuant to the general municipal law.]
    16  Notwithstanding any contrary provision of law, if the county of Chautau-
    17  qua imposes the additional one percent rate of  sales  and  compensating
    18  use  taxes  authorized by such section twelve hundred ten for all or any
    19  of [the] any period beginning on or after December first,  two  thousand
    20  fifteen  and [ending November thirtieth, two thousand twenty-three,] the
    21  county shall allocate three-twentieths of the net collections  from  the
    22  additional  one  percent to the cities, towns and villages in the county
    23  on the basis of their respective populations, determined  in  accordance
    24  with  the  latest  decennial federal census or special population census
    25  taken pursuant to section twenty of the general municipal law  completed
    26  and  published  prior to the end of the quarter for which the allocation
    27  is made, and allocate the remainder of  the  net  collections  from  the
    28  additional  one percent as follows: (1) to pay the county's expenses for
    29  Medicaid and other expenses required by law; (2) to pay for  local  road
    30  and bridge projects; (3) for the purposes of capital projects and repay-
    31  ing  any debts incurred for such capital projects in the county of Chau-
    32  tauqua that are not otherwise paid for  by  revenue  received  from  the
    33  mortgage  recording  tax;  and  (4)  for deposit into a reserve fund for
    34  bonded indebtedness established pursuant to the general  municipal  law.
    35  The  net  collections from the additional rates imposed pursuant to this
    36  section shall be deposited in a special fund to be created by such coun-
    37  ty separate and apart from any other funds and accounts of the county to
    38  be used for purposes above described.
    39    § 17. Section 1262-p of the tax law, as amended by section 2 of item X
    40  of subpart C of part XXX of chapter 58 of the laws of 2020,  is  amended
    41  to read as follows:
    42    §  1262-p.  Disposition  of  net  collections  from the additional one
    43  percent rate of sales and  compensating  use  taxes  in  the  county  of
    44  Livingston.  Notwithstanding any contrary provision of law, if the coun-
    45  ty  of  Livingston  imposes the additional one percent rate of sales and
    46  compensating use taxes authorized by section twelve hundred ten of  this
    47  article for all or any portion of [the] any period beginning on or after
    48  June first, two thousand three [and ending November thirtieth, two thou-
    49  sand  twenty-three],  the county shall use all net collections from such
    50  additional one percent rate to pay the county's expenses  for  Medicaid.
    51  The  net collections from the additional one percent rate imposed pursu-
    52  ant to this section shall be deposited in a special fund to  be  created
    53  by  such  county separate and apart from any other funds and accounts of
    54  the county. Any and all remaining net collections from  such  additional
    55  one percent tax, after the Medicaid expenses are paid, shall be deposit-

        S. 4009                            46                            A. 3009
 
     1  ed  by  the  county of Livingston in the general fund of such county for
     2  any county purpose.
     3    §  18.  Subdivision  1 of section 1262-q of the tax law, as amended by
     4  chapter 243 of the laws of 2011, is amended to read as follows:
     5    (1) If the county of Erie imposes the additional one percent  rate  of
     6  sales  and  compensating use taxes authorized by [item (i) of clause (4)
     7  of subparagraph (i) of the opening paragraph of] section twelve  hundred
     8  ten of this article [during the] for any period beginning January first,
     9  two thousand seven, or thereafter, the county shall allocate each calen-
    10  dar  year  the first twelve million five hundred thousand dollars of the
    11  net collections from such one percent rate to the cities of such  county
    12  and the area in such county outside its cities to be applied or distrib-
    13  uted  in  the same manner and proportion as the net collections for such
    14  cities and area are applied or distributed under  the  revenue  distrib-
    15  ution  agreement  entered  into pursuant to the authority of subdivision
    16  (c) of section twelve hundred sixty-two of this part in effect on  Janu-
    17  ary  first,  two  thousand  six,  and  subject to all provisions of such
    18  agreement governing the net collections for such  cities  and  area  and
    19  shall  retain  the  remainder  of  such  net  collections for any county
    20  purpose.
    21    § 19. Subdivision 2 of section 1262-q of the tax law,  as  amended  by
    22  section  2  of item N of subpart C of part XXX of chapter 58 of the laws
    23  of 2020, is amended to read as follows:
    24    (2) Net collections from the additional three-quarters of one  percent
    25  rate  of  sales  and  compensating use taxes which the county may impose
    26  [during the period] commencing December first, two thousand eleven, [and
    27  ending November thirtieth, two thousand twenty-three,] pursuant  to  the
    28  authority of [item (ii) of clause (4) of subparagraph (i) of the opening
    29  paragraph  of]  section twelve hundred ten of this article shall be used
    30  by the county solely for county purposes and shall not be subject to any
    31  revenue distribution agreement the county entered into pursuant  to  the
    32  authority of subdivision (c) of section twelve hundred sixty-two of this
    33  part.
    34    § 20. The opening paragraph of section 1262-r of the tax law, as added
    35  by chapter 37 of the laws of 2006, is amended to read as follows:
    36    (1)  Notwithstanding  any  contrary provision of law, if the county of
    37  Ontario imposes the additional one-eighth of one percent and  the  addi-
    38  tional  three-eighths of one percent rates of tax authorized pursuant to
    39  clause two of subparagraph (i)  of  the  opening  paragraph  of  section
    40  twelve hundred ten of this article, net collections from such additional
    41  three-eighths  of  one percent rate of such taxes shall be set aside for
    42  county purposes and shall not be subject to any agreement  entered  into
    43  by  the county and the cities in the county pursuant to the authority of
    44  subdivision (c) of section twelve hundred sixty-two of this part or this
    45  section.
    46    (2) Notwithstanding the  provisions  of  subdivision  (c)  of  section
    47  twelve  hundred sixty-two of this part to the contrary, if the cities of
    48  Canandaigua and Geneva in the county of Ontario do not impose sales  and
    49  compensating  use  taxes  pursuant  to  the  authority of section twelve
    50  hundred ten of this article and such cities and  county  enter  into  an
    51  agreement pursuant to the authority of subdivision (c) of section twelve
    52  hundred sixty-two of this part to be effective March first, two thousand
    53  six, such agreement may provide that:
    54    § 21. Section 1262-s of the tax law, as amended by section 3 of item U
    55  of  subpart  C of part XXX of chapter 58 of the laws of 2020, is amended
    56  to read as follows:

        S. 4009                            47                            A. 3009
 
     1    § 1262-s. Disposition of net collections from the additional one-quar-
     2  ter of one percent rate of sales and compensating use taxes in the coun-
     3  ty of Herkimer. Notwithstanding any contrary provision of  law,  if  the
     4  county  of  Herkimer imposes [the additional] sales and compensating use
     5  tax  at  a  rate  that  is one and one-quarter [of one] percent [rate of
     6  sales and compensating use taxes] additional to the three  percent  rate
     7  authorized  by  section twelve hundred ten of this article as authorized
     8  by [section twelve hundred ten-E] clause two of subparagraph (i) of  the
     9  opening paragraph of section twelve hundred ten of this article [for all
    10  or  any  portion  of  the  period beginning December first, two thousand
    11  seven and ending November thirtieth,  two  thousand  twenty-three],  the
    12  county  shall  use  all  net collections [from such] attributable to the
    13  additional one-quarter [of one] percent of such additional rate  to  pay
    14  the  county's  expenses  for the construction of additional correctional
    15  facilities. The net collections from [the] such  additional  one-quarter
    16  percent  of  such  additional  rate  [imposed pursuant to section twelve
    17  hundred ten-E of this article] shall be deposited in a special  fund  to
    18  be  created  by  such county separate and apart from any other funds and
    19  accounts of the county. Any and all remaining net collections from  such
    20  additional  tax, after the expenses of such construction are paid, shall
    21  be deposited by the county of Herkimer in the general fund of such coun-
    22  ty for any county purpose.
    23    § 22. Section 1262-t of the tax law, as added by  chapter  67  of  the
    24  laws of 2015, is amended to read as follows:
    25    §  1262-t.  City  of Yonkers - disposition of net collections from the
    26  additional one-half of one percent rate of sales  and  compensating  use
    27  taxes  in  the  city of Yonkers. Notwithstanding any provision of law to
    28  the contrary, if the city of Yonkers imposes the additional one-half  of
    29  one percent rate of sales and compensating use taxes authorized by [item
    30  (b)  of  clause  one  of]  subparagraph (ii) of the opening paragraph of
    31  section twelve hundred ten of this article, the city shall use  the  net
    32  collections from such additional one-half of one percent rate solely for
    33  the  support  of  education, unless the city council votes, on an annual
    34  basis, to use such net collections for a different purpose of the  city,
    35  provided,  however,  that the requirements of paragraph b of subdivision
    36  five-b of section two thousand five hundred seventy-six of the education
    37  law are met.
    38    § 23. The tax law is amended by adding a new section 1262-w to read as
    39  follows:
    40    § 1262-w. Disposition of net collections from the additional  rate  of
    41  sales  and  compensating  use tax in Clinton county. Notwithstanding any
    42  contrary provision of law, if the county of Clinton  imposes  the  addi-
    43  tional  one  percent rate of sales and compensating use taxes authorized
    44  pursuant to clause two of subparagraph (i) of the opening  paragraph  of
    45  section  twelve  hundred  ten of this article, net collections from such
    46  additional rate shall be paid to the county and  the  county  shall  set
    47  aside such net collections and use them solely for county purposes. Such
    48  net  collections shall not be subject to any revenue distribution agree-
    49  ment entered into by the county and the city in the county  pursuant  to
    50  the  authority of subdivision (c) of section twelve hundred sixty-two of
    51  this part.
    52    § 24. The tax law is amended by adding a new section 1262-x to read as
    53  follows:
    54    § 1262-x. Allocation and distribution  of  net  collections  from  the
    55  additional one percent rate of sales and compensating use taxes in West-
    56  chester  county.   Notwithstanding any provision of law to the contrary,

        S. 4009                            48                            A. 3009
 
     1  if the county of Westchester imposes the additional one percent rate  of
     2  sales  and compensating use tax authorized by section twelve hundred ten
     3  of this article, the  county  shall  allocate  and  credit  or  pay  net
     4  collections  from  such  additional one percent rate with respect to the
     5  area of the county outside any city imposing sales and compensating  use
     6  taxes  at  a rate of one and one-half percent or greater pursuant to the
     7  authority of subdivision (a) or at any rate pursuant to the authority of
     8  subdivision (b) of  section  twelve  hundred  ten  of  this  article  as
     9  follows:
    10    (1)  Seventy  percent of such net collections shall be retained by the
    11  county to be used for any county purpose.
    12    (2) Ten percent of such net collections shall be  allocated  and  paid
    13  quarterly by the county commissioner of finance, in cash, to the several
    14  school districts in such area of the county outside any such city impos-
    15  ing  sales  and  compensating use taxes. Such allocation and payment, to
    16  such several school districts, shall be made on the basis of  the  ratio
    17  which the population of each such school district bears to the aggregate
    18  population  of  all of the school districts in such area. In the case of
    19  school districts which are partially within and  partially  without  the
    20  county,  or partially within or partially without the area of the county
    21  outside a city imposing sales and compensating use taxes, the allocation
    22  and payment to each such school district shall be made on the  basis  of
    23  the population in such school district in the county, or in such area of
    24  the  county outside a city imposing sales and compensating use taxes, as
    25  the case may be. Such populations shall be determined in accordance with
    26  the latest federal census or special  population  census  under  section
    27  twenty of the general municipal law completed and published prior to the
    28  end  of the quarter in which such allocation and payment are made, which
    29  special population census shall include the entire area of  the  county;
    30  provided  that  such  special  population census shall not be taken more
    31  than once in every two years. A school district split between  Westches-
    32  ter  county  and  another county shall apply such allocation and payment
    33  solely to the benefit of the residents of the county in which the  sales
    34  and compensating use taxes are imposed.
    35    (3) Twenty percent of such net collections shall be allocated and paid
    36  quarterly  by the county commissioner of finance, in cash, to the cities
    37  not imposing sales and compensating use  taxes  and  to  the  towns  and
    38  villages  on which such rate is imposed, on the basis of the ratio which
    39  the population of each such city, town or village on which such rate  is
    40  imposed  bears  to  the  entire population of all such cities, towns and
    41  villages in the area on which such rate  is  imposed.  Such  populations
    42  shall  be  determined  in  accordance  with the latest federal census or
    43  special population census under section twenty of the general  municipal
    44  law  completed  and  published  prior to the end of the quarter in which
    45  such allocation is made, which special population census  shall  include
    46  the  entire  area  of  the county; provided that such special population
    47  census shall not be taken more than once in every two years.
    48    § 25. Paragraph 2 of subdivision (c) of section 1261 of the  tax  law,
    49  as  amended  by  chapter  67  of the laws of 2015, is amended to read as
    50  follows:
    51    (2) However, the taxes, penalties and interest from the additional one
    52  percent rate which the city of Yonkers is authorized to impose  pursuant
    53  to  [item  (a)  of clause one of] subparagraph (ii) of the opening para-
    54  graph of section twelve hundred ten of this  article,  after  the  comp-
    55  troller has reserved such refund fund and such cost shall be paid to the
    56  special  sales  and  compensating  use  tax fund for the city of Yonkers

        S. 4009                            49                            A. 3009
 
     1  established by section ninety-two-f of the  state  finance  law  at  the
     2  times set forth in the preceding sentence.
     3    §  26.  The tax law is amended by adding a new section 1265 to read as
     4  follows:
     5    § 1265. References to certain provisions authorizing additional rates.
     6  Notwithstanding any provision of law to the contrary, any  reference  in
     7  any  section  of  this  chapter or other law, or in any local law, ordi-
     8  nance, or resolution adopted pursuant to the authority of this  article,
     9  to  net  collections  or revenues from a tax imposed by a county or city
    10  pursuant to the authority of a clause, or to a subclause of a clause, of
    11  subparagraph (i) or (ii) of the  opening  paragraph  of  section  twelve
    12  hundred  ten of this article repealed by section one or two of a part of
    13  the chapter of the laws of two thousand  twenty-three  that  added  this
    14  section  or  pursuant  to  section  twelve hundred ten-E of this article
    15  repealed by section five of such part shall be deemed to be a  reference
    16  to net collections or revenues from a tax imposed by that county or city
    17  pursuant  to  the authority of the equivalent provision of clause two of
    18  subparagraph (i) or to subparagraph (ii) of  the  opening  paragraph  of
    19  such  section  twelve hundred ten as added by such section one or two of
    20  such part of the chapter of the laws of two thousand twenty-three.
    21    § 27. Section 7 of chapter 67 of the laws of 2015,  amending  the  tax
    22  law  relating  to  authorizing  the city of Yonkers to impose additional
    23  sales tax, as amended by section 2 of item CCC of subpart C of part  XXX
    24  of chapter 58 of the laws of 2020, is amended to read as follows:
    25    §  7.  This act shall take effect immediately [and shall expire and be
    26  deemed repealed November 30, 2023].
    27    § 28. Section 2 of item R of subpart C of part XXX of  chapter  58  of
    28  the  laws of 2020 amending the tax law relating to extending the expira-
    29  tion of the authorization to the county of Genesee to  impose  an  addi-
    30  tional  one  percent  of sales and compensating use taxes, is amended to
    31  read as follows:
    32    § 2. Notwithstanding any other provision of law to the  contrary,  the
    33  one  percent increase in sales and compensating use taxes authorized for
    34  the county of Genesee [until November 30, 2023] pursuant to  [clause  20
    35  of subparagraph (i) of the opening paragraph of] section 1210 of the tax
    36  law[,  as  amended  by section one of this act,] shall be divided in the
    37  same manner and proportion as  the  existing  three  percent  sales  and
    38  compensating use taxes in such county are divided.
    39    §  29.   Section 2 of item Z of subpart C of part XXX of chapter 58 of
    40  the laws of 2020 amending the tax law relating to  the  imposition    of
    41  sales   and   compensating use taxes by the county of Monroe, is amended
    42  to read as follows:
    43    § 2. Notwithstanding the provisions of subdivisions  (b)  and  (c)  of
    44  section 1262 and section 1262-g of the tax law, net collections, as such
    45  term is defined in section 1262 of the tax law, derived from the imposi-
    46  tion  of sales and compensating use taxes by the county of Monroe at the
    47  additional rate of one percent as authorized pursuant to [clause (25) of
    48  subparagraph (i) of the opening paragraph of] section 1210  of  the  tax
    49  law[,  as  amended by section one of this act,] which are in addition to
    50  the current net collections derived from the imposition of such taxes at
    51  the three percent rate authorized by [the opening paragraph of]  section
    52  1210 of the tax law, shall be distributed and allocated as follows:  for
    53  [the]  any  period  [of] beginning on or after December 1, 2020 [through
    54  November 30, 2023] in cash, five percent to the school districts in  the
    55  area  of  the county outside the city of Rochester, three percent to the
    56  towns located within the county, one  and  one-quarter  percent  to  the

        S. 4009                            50                            A. 3009
 
     1  villages  located  within  the  county,  and  ninety  and three-quarters
     2  percent to the city of Rochester and county of Monroe. The amount of the
     3  ninety and three-quarters percent to be distributed and allocated to the
     4  city  of  Rochester  and county of Monroe shall be distributed and allo-
     5  cated to each so that the combined total distribution and allocation  to
     6  each from the sales tax revenues pursuant to sections 1262 and 1262-g of
     7  the tax law and this section shall result in the same total amount being
     8  distributed and allocated to the city of Rochester and county of Monroe.
     9  The  amount so distributed and allocated to the county shall be used for
    10  county purposes. The foregoing cash payments  to  the  school  districts
    11  shall  be  allocated  on the basis of the enrolled public school pupils,
    12  thereof, as such term is used in subdivision (b) of section 1262 of  the
    13  tax  law,  residing  in  the  county of Monroe. The cash payments to the
    14  towns located within the county of Monroe  shall  be  allocated  on  the
    15  basis  of  the ratio which the population of each town, exclusive of the
    16  population of any village or portion  thereof  located  within  a  town,
    17  bears  to the total population of the towns, exclusive of the population
    18  of the villages located within such towns.  The  cash  payments  to  the
    19  villages  located  within  the county shall be allocated on the basis of
    20  the ratio which the population of each village bears to the total  popu-
    21  lation of the villages located within the county. The term population as
    22  used  in this section shall have the same meaning as used in subdivision
    23  (b) of section 1262 of the tax law.
    24    § 30. Section 4 of item EE of subpart C of part XXX of chapter  58  of
    25  the laws of 2020 amending the tax law relating to extending the authori-
    26  zation  of  the county of Onondaga to impose an additional rate of sales
    27  and compensating use  taxes, is amended to read as follows:
    28    § 4. Notwithstanding any contrary provision of  law,  net  collections
    29  from the additional one percent rate of sales and compensating use taxes
    30  which  may  be imposed by the county of Onondaga during [the] any period
    31  commencing on or after December 1, 2022 [and ending November 30,  2023],
    32  pursuant  to  the authority of section 1210 of the tax law, shall not be
    33  subject to any revenue distribution agreement entered into under  subdi-
    34  vision  (c)  of  section 1262 of the tax law, but shall be allocated and
    35  distributed or paid, at least quarterly, as follows: (i)  1.58%  to  the
    36  county  of  Onondaga  for any county purpose; (ii) 97.79% to the city of
    37  Syracuse; and (iii) .63% to the  school  districts  in  accordance  with
    38  subdivision (a) of section 1262 of the tax law.
    39    §  31.  Section 2 of item GG of subpart C of part XXX of chapter 58 of
    40  the laws of 2020 amending the tax law relating to extending the authori-
    41  ty of the county of Orange to impose an additional  rate  of  sales  and
    42  compensating use taxes, is amended to read as follows:
    43    §  2.  Notwithstanding subdivision (c) of section 1262 of the tax law,
    44  net collections from any additional rate of sales and  compensating  use
    45  taxes  which may be imposed by the county of Orange [during the] for any
    46  period commencing on or after December 1, 2020, [and ending November 30,
    47  2023,] pursuant to the authority of section 1210 of the tax  law,  shall
    48  be  paid to the county of Orange and shall be used by such county solely
    49  for county purposes and shall not be subject to any revenue distribution
    50  agreement entered into pursuant to the authority of subdivision  (c)  of
    51  section 1262 of the tax law.
    52    §  32.  Section 3 of item XX of subpart C of part XXX of chapter 58 of
    53  the laws of 2020 amending the tax law relating to extending the authori-
    54  ty of the county of Ulster to impose an additional 1 percent  sales  and
    55  compensating use tax, is amended to read as follows:

        S. 4009                            51                            A. 3009
 
     1    §  3.  If, pursuant to the authority of this act, the county of Ulster
     2  imposes sales and compensating use taxes at a rate  greater  than  three
     3  percent  for  all  or  any  portion of [the] any period commencing on or
     4  after September 1, 2002, [and ending November 30, 2023,] net collections
     5  from  such  additional  rate  of tax imposed during such period shall be
     6  deemed to be, and shall be included in, net collections subject to  such
     7  county's  existing  agreement  with  the  city  of Kingston entered into
     8  pursuant to subdivision (c) of section 1262 of the tax law and such  net
     9  collections shall be allocated in accordance with such agreement.
    10    § 33. This act shall take effect immediately.

    11                                   PART P
 
    12    Section 1. Section 1299-C of the tax law is REPEALED.
    13    § 2. Notwithstanding any provision of law to the contrary, there shall
    14  be  no  refund of any registration fees paid prior to the effective date
    15  of this act.
    16    § 3. This act shall take effect immediately.
 
    17                                   PART Q
 
    18    Section 1. Section 285-a of the tax law is amended  by  adding  a  new
    19  subdivision 4 to read as follow:
    20    4.  Upon  each sale of motor fuel, other than a sale that is otherwise
    21  exempt under this article, the distributor must charge the  tax  imposed
    22  by  this  article  to  the  purchaser  on each gallon sold. If the taxes
    23  imposed by this article have not already  been  assumed  or  paid  by  a
    24  distributor  on any quantity of such fuel for any reason, including, but
    25  not limited to, the expansion of such fuel as a  result  of  temperature
    26  fluctuation,  the  distributor must remit such taxes to the commissioner
    27  on the return for the period in which such sale was made.
    28    § 2. Section 285-b of the tax law is amended by adding a new  subdivi-
    29  sion 5 to read as follows:
    30    5.  Upon  each  sale  of  Diesel motor fuel, other than a sale that is
    31  otherwise exempt under this article, the distributor must charge the tax
    32  imposed by this article to the purchaser on each  gallon  sold.  If  the
    33  taxes imposed by this article have not already been assumed or paid by a
    34  distributor  on any quantity of such fuel for any reason, including, but
    35  not limited to, the expansion of such fuel as a  result  of  temperature
    36  fluctuation,  the  distributor must remit such taxes to the commissioner
    37  on the return for the period in which such sale was made.
    38    § 3. Section 308 of the tax law is amended by adding a new subdivision
    39  (j) to read as follows:
    40    (j) Every petroleum business subject to tax under this article that is
    41  also a distributor, as defined in section two hundred eighty-two of this
    42  chapter, must charge the tax imposed by this article to the purchaser on
    43  each gallon sold, unless otherwise exempt. If the taxes imposed by  this
    44  article have not already been assumed or paid by such petroleum business
    45  on  any quantity of such fuel for any reason, including, but not limited
    46  to, the expansion of such fuel as a result of  temperature  fluctuation,
    47  such petroleum business must remit such taxes to the commissioner on the
    48  return for the period in which such sale was made.
    49    §  4.  Section 1102 of the tax law is amended by adding a new subdivi-
    50  sion (g) to read as follows:
    51    (g) The tax imposed by this section must be charged on the sale, other
    52  than a retail sale or a sale that is otherwise exempt under  this  arti-

        S. 4009                            52                            A. 3009
 
     1  cle,  of  each  gallon  of motor fuel or Diesel motor fuel. If the taxes
     2  imposed by this section have not already been assumed  or  paid  by  the
     3  distributor  on any quantity of such fuel for any reason, including, but
     4  not  limited  to,  the expansion of such fuel as a result of temperature
     5  fluctuation, the distributor must remit such taxes to  the  commissioner
     6  on the return for the period in which such sale was made.
     7    §  5.  This act shall take effect on September 1, 2023 and shall apply
     8  to sales of motor fuel and Diesel motor fuel on or after such date.
 
     9                                   PART R
 
    10    Section 1. Subparagraph (B) of  paragraph  1  of  subdivision  (a)  of
    11  section 1115 of the tax law, as amended by section 1 of part GG of chap-
    12  ter 59 of the laws of 2022, is amended to read as follows:
    13    (B) Until May [thirty first] thirty-first, two thousand [twenty-three]
    14  twenty-four,  the food and drink excluded from the exemption provided by
    15  clauses (i), (ii) and (iii) of subparagraph (A) of this  paragraph,  and
    16  bottled  water,  shall  be exempt under this subparagraph: (i) when sold
    17  for one dollar and fifty cents or less through any vending machine oper-
    18  ated by a participant in the "business enterprise program", as such term
    19  is defined in paragraph two of subdivision  a  of  section  eleven-a  of
    20  chapter  four  hundred  fifteen of the laws of nineteen hundred thirteen
    21  that accepts coin or currency only; or (ii) when sold for two dollars or
    22  less through any vending machine operated by  such  a  participant  that
    23  accepts  any form of payment other than coin or currency, whether or not
    24  it also accepts coin or currency.
    25    § 2. This act shall take effect June 1, 2023.
 
    26                                   PART S

    27    Section 1. Subdivision 1 of section 471 of the tax law, as amended  by
    28  section  1  of  part D of chapter 134 of the laws of 2010, is amended to
    29  read as follows:
    30    1. There is hereby imposed and shall be paid a tax on  all  cigarettes
    31  possessed  in the state by any person for sale, except that no tax shall
    32  be imposed on cigarettes sold under such circumstances that  this  state
    33  is  without power to impose such tax, including sales to qualified Indi-
    34  ans for their own use and consumption on their nations' or tribes' qual-
    35  ified reservation, or sold to the United States  or  sold  to  or  by  a
    36  voluntary  unincorporated organization of the armed forces of the United
    37  States operating a place for the sale of goods pursuant  to  regulations
    38  promulgated by the appropriate executive agency of the United States, to
    39  the extent provided in such regulations and policy statements of such an
    40  agency  applicable  to  such  sales.  The tax imposed by this section is
    41  imposed on all cigarettes sold on an Indian reservation  to  non-members
    42  of  the  Indian  nation or tribe and to non-Indians and evidence of such
    43  tax shall be by means of an affixed cigarette tax stamp. Indian  nations
    44  or  tribes  may  elect to participate in the Indian tax exemption coupon
    45  system established in section four hundred seventy-one-e of this article
    46  which provides a mechanism for the collection of the tax imposed by this
    47  section on cigarette sales on qualified reservations to such non-members
    48  and non-Indians and for the delivery of quantities of  tax-exempt  ciga-
    49  rettes  to Indian nations or tribes for the personal use and consumption
    50  of qualified members of the Indian nation or tribe. If an Indian  nation
    51  or  tribe  does  not  elect  to  participate in the Indian tax exemption
    52  coupon system, the prior approval system shall be the mechanism for  the

        S. 4009                            53                            A. 3009
 
     1  delivery  of  quantities  of  tax-exempt cigarettes to Indian nations or
     2  tribes for the personal use and consumption of qualified members of  the
     3  Indian  nation  or tribe as provided for in paragraph (b) of subdivision
     4  five  of  this  section.  Such tax on cigarettes shall be at the rate of
     5  [four] five dollars and thirty-five cents for each twenty cigarettes  or
     6  fraction  thereof,  provided,  however,  that if a package of cigarettes
     7  contains more than twenty cigarettes, the rate of tax on the  cigarettes
     8  in  such  package  in  excess  of twenty shall be one dollar and [eight]
     9  thirty-three and three-quarters cents for each five cigarettes or  frac-
    10  tion  thereof.  Such tax is intended to be imposed upon only one sale of
    11  the same package of cigarettes. It shall be presumed that all cigarettes
    12  within the state are subject to tax until the contrary  is  established,
    13  and  the  burden  of proof that any cigarettes are not taxable hereunder
    14  shall be upon the person in possession thereof.
    15    § 2.  Section 471-a of the tax law, as amended by section 5 of part  D
    16  of chapter 134 of the laws of 2010, is amended to read as follows:
    17    §  471-a.  Use tax on cigarettes. There is hereby imposed and shall be
    18  paid a tax on all cigarettes used in the state  by  any  person,  except
    19  that  no  tax  shall  be imposed (1) if the tax provided in section four
    20  hundred seventy-one of this article is paid, (2) on  the  use  of  ciga-
    21  rettes  which are exempt from the tax imposed by said section, or (3) on
    22  the use of four hundred or less cigarettes, brought into the  state  on,
    23  or  in the possession of, any person. Such tax on cigarettes shall be at
    24  the rate of [four] five dollars and thirty-five cents  for  each  twenty
    25  cigarettes  or fraction thereof, provided, however, that if a package of
    26  cigarettes contains more than twenty cigarettes, the rate of tax on  the
    27  cigarettes  in  such package in excess of twenty shall be one dollar and
    28  [eight] thirty-three and three-quarters cents for each  five  cigarettes
    29  or  fraction  thereof.  Within twenty-four hours after liability for the
    30  tax accrues, each such person shall file with the commissioner a  return
    31  in  such  form  as the commissioner may prescribe together with a remit-
    32  tance of the tax shown to be due thereon. For purposes of this  article,
    33  the  word  "use"  means  the  exercise  of  any right or power actual or
    34  constructive and shall include but is not limited to the receipt,  stor-
    35  age  or  any  keeping or retention for any length of time, but shall not
    36  include possession for sale. All other provisions of this article if not
    37  inconsistent shall apply to the administration and  enforcement  of  the
    38  tax  imposed  by  this  section in the same manner as if the language of
    39  said provisions had been incorporated in full into this section.
    40    § 3. Notwithstanding any other provision of law to the  contrary,  the
    41  tax  due  on  cigarettes  possessed in New York state as of the close of
    42  business on August 31, 2023, by any person for sale solely  attributable
    43  to the increase imposed by the amendments to section 471 of the tax law,
    44  as  amended  by  section  one of this act, shall be paid by November 20,
    45  2023, subject to such terms and conditions as the commissioner of  taxa-
    46  tion and finance shall prescribe.
    47    §  4. This act shall take effect on September 1, 2023, and shall apply
    48  to all cigarettes possessed in this state by any person for sale and all
    49  cigarettes used in this state by any person on or after such date.
 
    50                                   PART T
 
    51    Section 1. Subdivision 4 of section 474 of the tax law, as amended  by
    52  chapter 61 of the laws of 1989, is amended to read as follows:
    53    4.  (a)  At the time of delivering cigarettes to any person each agent
    54  or wholesale dealer, and at the time of delivering tobacco  products  to

        S. 4009                            54                            A. 3009
 
     1  any  person  each  distributor  or wholesale dealer of tobacco products,
     2  shall make a true duplicate invoice showing the date  of  delivery,  the
     3  number  of  packages and number of cigarettes contained therein, in each
     4  shipment  of cigarettes delivered, and the items and quantity and whole-
     5  sale price of each item in each shipment of tobacco products  delivered,
     6  and the name of the purchaser to whom delivery is made, and shall retain
     7  the  same  for a period of three years subject to the use and inspection
     8  of the commissioner [of taxation and finance]. Each dealer shall procure
     9  and retain invoices showing the number of packages and number  of  ciga-
    10  rettes contained therein, in each shipment of cigarettes received by him
    11  or  her,  and the items and quantity and wholesale price of each item in
    12  each shipment of tobacco products received by him or her, the date ther-
    13  eof, and the name of the shipper, and shall retain the same for a period
    14  of three years subject to the use and inspection of the commissioner [of
    15  taxation and finance]. The commissioner [of  taxation  and  finance]  by
    16  regulation  may provide that whenever cigarettes or tobacco products are
    17  shipped into the state, the railroad company, express company,  trucking
    18  company  or other public carrier transporting any shipment thereof shall
    19  file with the commissioner [of taxation  and  finance]  a  copy  of  the
    20  freight  bill  within  ten  days after the delivery in the state of each
    21  shipment. All dealers shall maintain and keep  for  a  period  of  three
    22  years  such  other  records  of cigarettes or tobacco products received,
    23  sold or delivered within the state as may be required by the commission-
    24  er [of taxation and finance]. The commissioner [of taxation and finance]
    25  is hereby authorized to examine the books, papers,  invoices  and  other
    26  records  of  any person in possession, control or occupancy of any prem-
    27  ises where cigarettes or tobacco products are placed,  stored,  sold  or
    28  offered for sale, and the equipment of any such person pertaining to the
    29  stamping of cigarettes or the sale and delivery of cigarettes or tobacco
    30  products  taxable under this article, as well as the stock of cigarettes
    31  or tobacco products in any such premises or vehicle. To verify the accu-
    32  racy of the tax imposed and assessed by this article, each  such  person
    33  is hereby directed and required to give to the commissioner [of taxation
    34  and  finance]  or his or her duly authorized representatives, the means,
    35  facilities and opportunity for such examinations as are herein  provided
    36  for and required.
    37    (b)  If  a  retail dealer, or its employees or agents, refuses to give
    38  the commissioner or his or  her  duly  authorized  representatives,  the
    39  means,  facilities and opportunity for such examinations as are required
    40  and provided for by this section: (i) its  registration  to  sell  ciga-
    41  rettes  and  tobacco products shall be revoked for a period of one year;
    42  (ii) for a second such failure within  a  period  of  three  years,  its
    43  registration  shall  be  permanently revoked. If such retail dealer does
    44  not possess a valid registration, either because it failed to  obtain  a
    45  registration  or its registration is suspended or revoked at the time of
    46  such refusal, the retail dealer shall be subject to a penalty of  up  to
    47  five thousand dollars for a first refusal and up to ten thousand dollars
    48  for a second refusal within three years.
    49    § 2. This act shall take effect immediately.
 
    50                                   PART U
 
    51    Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
    52  subdivision  (b) of section 1402 of the tax law, as amended by section 1
    53  of item UUU of subpart B of part XXX of chapter 58 of the laws of  2020,
    54  is amended to read as follows:

        S. 4009                            55                            A. 3009
 
     1    For  purposes  of this subdivision, the phrase "real estate investment
     2  trust transfer" shall mean any conveyance of real property or an  inter-
     3  est  therein  to  a  REIT, or to a partnership or corporation in which a
     4  REIT owns a controlling interest immediately following  the  conveyance,
     5  which  conveyance (I) occurs in connection with the initial formation of
     6  the REIT, provided that the conditions set forth in clauses (i) and (ii)
     7  of this subparagraph are satisfied, or (II) in  the  case  of  any  real
     8  estate  investment trust transfer occurring on or after July thirteenth,
     9  nineteen hundred ninety-six and before  September  first,  two  thousand
    10  [twenty-three]  twenty-six,  is  described  in the last sentence of this
    11  subparagraph.
    12    § 2. Subparagraph 2 of paragraph (xi) of subdivision  (b)  of  section
    13  1201 of the tax law, as amended by section 2 of item UUU of subpart B of
    14  part  XXX  of  chapter  58  of  the  laws of 2020, is amended to read as
    15  follows:
    16    (2) any issuance or transfer of an interest in a REIT, or in  a  part-
    17  nership or corporation in which a REIT owns a controlling interest imme-
    18  diately  following the issuance or transfer, in connection with a trans-
    19  action described in subparagraph one of this paragraph.  Notwithstanding
    20  the foregoing, a transaction described in the preceding  sentence  shall
    21  not  constitute  a  real  estate investment trust transfer unless (A) it
    22  occurs in connection with the initial formation  of  the  REIT  and  the
    23  conditions  described  in subparagraphs three and four of this paragraph
    24  are satisfied, or (B) in the case of any real  estate  investment  trust
    25  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
    26  ty-six and before September first, two thousand  [twenty-three]  twenty-
    27  six, the transaction is described in subparagraph five of this paragraph
    28  in which case the provisions of such subparagraph shall apply.
    29    §  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
    30  11-2102 of the administrative code of the city of New York,  as  amended
    31  by  section  3 of item UUU of subpart B of part XXX of chapter 58 of the
    32  laws of 2020, is amended to read as follows:
    33    (B) any issuance or transfer of an interest in a REIT, or in  a  part-
    34  nership or corporation in which a REIT owns a controlling interest imme-
    35  diately  following  the issuance or transfer in connection with a trans-
    36  action described in subparagraph (A) of this paragraph.  Notwithstanding
    37  the foregoing, a transaction described in the preceding  sentence  shall
    38  not  constitute  a  real  estate investment trust transfer unless (i) it
    39  occurs in connection with the initial formation  of  the  REIT  and  the
    40  conditions  described in subparagraphs (C) and (D) of this paragraph are
    41  satisfied, or (ii) in the case  of  any  real  estate  investment  trust
    42  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
    43  ty-six and before September first, two thousand  [twenty-three]  twenty-
    44  six,  the transaction is described in subparagraph (E) of this paragraph
    45  in which case the provision of such subparagraph shall apply.
    46    § 4. This act shall take effect immediately.
 
    47                                   PART V
 
    48    Section 1. Section 2016 of the tax law, as amended by chapter  401  of
    49  the laws of 1987, is amended to read as follows:
    50    § 2016. Judicial review. A decision of the tax appeals tribunal, which
    51  is  not  subject to any further administrative review, shall finally and
    52  irrevocably decide all the  issues  which  were  raised  in  proceedings
    53  before  the  division  of  tax appeals upon which such decision is based
    54  unless, within four months after notice of such decision  is  served  by

        S. 4009                            56                            A. 3009
 
     1  the  tax appeals tribunal upon every party to the proceeding before such
     2  tribunal by certified mail  or  personal  service,  the  petitioner  who
     3  commenced the proceeding [petitions] or the commissioner, or both, peti-
     4  tion for judicial review in the manner provided by article seventy-eight
     5  of  the  civil  practice  law and rules, except as otherwise provided in
     6  this [section] chapter.    Such  service  by  certified  mail  shall  be
     7  complete  upon  deposit of such notice, enclosed in a post-paid properly
     8  addressed wrapper, in a post office or  official  depository  under  the
     9  exclusive  care  and custody of the United States postal service.  [The]
    10  Where the petitioner who commenced the proceeding before the division of
    11  tax appeals files a petition for judicial  review,  the  petition  shall
    12  designate the tax appeals tribunal and the commissioner [of taxation and
    13  finance]  as  respondents  in the proceeding for judicial review.  Where
    14  the commissioner files a petition  for  judicial  review,  the  petition
    15  shall  designate  the  tax  appeals  tribunal  and  the  petitioner  who
    16  commenced the proceeding before the division of tax appeals as  respond-
    17  ents  in  the  proceeding  for judicial review. The tax appeals tribunal
    18  shall not participate in proceedings for judicial review  of  its  deci-
    19  sions and such proceedings for judicial review shall be commenced in the
    20  appellate  division of the supreme court, third department. In all other
    21  respects the provisions and standards of article  seventy-eight  of  the
    22  civil  practice law and rules shall apply.  The record to be reviewed in
    23  such proceedings for judicial review shall include the determination  of
    24  the  administrative law judge, the decision of the tax appeals tribunal,
    25  the stenographic transcript of the hearing before the administrative law
    26  judge, the transcript of any oral proceedings  before  the  tax  appeals
    27  tribunal  and  any  exhibit  or  document submitted into evidence at any
    28  proceeding in the division of tax appeals upon which  such  decision  is
    29  based.
    30    §  2.  This act shall take effect immediately and shall apply to deci-
    31  sions and orders issued by the tax appeals tribunal  on  or  after  such
    32  date.
 
    33                                   PART W
 
    34    Section  1.  Subdivision 1 of section 105 of the state finance law, as
    35  amended by chapter 204 of the laws  of  2002,  is  amended  to  read  as
    36  follows:
    37    1.  All moneys received by the commissioner of taxation and finance on
    38  account of the state, excepting such moneys as are required by law to be
    39  deposited to the credit of the comptroller, but including such moneys as
    40  are thereafter paid into the state treasury by the comptroller, shall be
    41  deposited by the commissioner of taxation and finance within three busi-
    42  ness days after the receipt thereof, either as a demand  deposit  or  an
    43  interest-bearing  time  deposit (other than a time certificate of depos-
    44  it), as [he] the commissioner and the comptroller may determine, in such
    45  banks, trust companies and industrial banks as in [his] the  opinion  of
    46  the  commissioner  and  the  opinion  of the comptroller are secure. The
    47  moneys so deposited shall be placed to the account of  the  commissioner
    48  of taxation and finance.  [He] The commissioner shall keep a bankbook in
    49  which  shall  be  entered  [his]  their account of deposit in and moneys
    50  drawn from the banks and trust companies and industrial banks  in  which
    51  deposits  are  made  by  [him]  the  commissioner, which [he] they shall
    52  exhibit to the comptroller for [his] inspection on the first Tuesday  of
    53  every  month  and  oftener  if required. [He] The commissioner shall not
    54  draw any moneys from such banks, trust  companies  or  industrial  banks

        S. 4009                            57                            A. 3009
 
     1  unless  by  checks  signed and countersigned in the manner prescribed by
     2  section one hundred one, unless otherwise provided  by  law.  No  moneys
     3  shall  be paid by any such bank, trust company or industrial bank out of
     4  any  such  deposit  except upon such checks.  Moneys may be paid through
     5  electronic transfer in  accordance  with  procedures  developed  by  the
     6  commissioner  of taxation and finance and the comptroller and consistent
     7  with the requirements of  this  section  for  recording  payments.  Such
     8  payments  through  electronic transfer shall be considered, for purposes
     9  of this chapter, to be moneys drawn by check.   Every such  bank,  trust
    10  company  or  industrial  bank  shall transmit to the comptroller monthly
    11  statements of all moneys received and paid  by  it  on  account  of  the
    12  commissioner of taxation and finance.
    13    § 2. This act shall take effect immediately.
 
    14                                   PART X
 
    15    Section  1.  Legislative findings. The legislature finds that it is in
    16  the interests of the state to assist The New  York  Racing  Association,
    17  Inc.,  which  is  the  franchised  corporation  pursuant  to section two
    18  hundred six of the racing, pari-mutuel wagering  and  breeding  law,  to
    19  renovate  Belmont  Park  racetrack  and repurpose the Aqueduct property.
    20  The legislature further finds and determines that the  anticipated  cost
    21  of  renovating Belmont Park racetrack is four hundred fifty-five million
    22  dollars and that the renovation of Belmont Park racetrack shall initial-
    23  ly be financed by the state subject to the provisions of  the  repayment
    24  agreement  of the franchised corporation required by section two of this
    25  act. The franchised corporation will be responsible for repayment of the
    26  state funds in accordance with the terms of such repayment agreement.
    27    § 2. Prior to, and as a condition to  the  state  initially  providing
    28  funds  for  the  renovation  of  Belmont  Park racetrack, the franchised
    29  corporation shall enter  into  a  repayment  agreement  with  the  state
    30  authorizing  and directing that a portion of the funds of the franchised
    31  corporation dedicated for capital expenditures of the franchised  corpo-
    32  ration  pursuant  to  paragraph  3  of  subdivision f and paragraph 3 of
    33  subdivision f-1 of section 1612 of the tax law shall be  used  to  repay
    34  the  state  for  the  funds  provided by the state for the renovation of
    35  Belmont Park racetrack,  in  accordance  with  the  repayment  agreement
    36  between  the  state and the franchised corporation. Such agreement shall
    37  further provide that in the event the  franchised  corporation  receives
    38  future  statutory  payments  enacted for the specific purpose of holding
    39  the franchised corporation harmless for any loss of payments pursuant to
    40  paragraph 3 of subdivision f and  paragraph  3  of  subdivision  f-1  of
    41  section  1612 of the tax law, such statutory payments shall also be used
    42  to repay the state for the funds provided by the  state  for  the  reno-
    43  vation  of  Belmont  Park  racetrack. Such agreement may also be amended
    44  from time to time as agreed to by the state and  the  franchised  corpo-
    45  ration.    At any time prior to the repayment of the state funds for the
    46  renovation of Belmont Park racetrack, the state may issue state personal
    47  income tax revenue bonds or state sales tax revenue bonds. In the  event
    48  of  the issuance of such bonds, the repayment agreement shall be revised
    49  to reflect the obligation of the franchised corporation to  fully  repay
    50  the debt service costs associated with such bonds.
    51    §  3.  Prior  to, and as a condition of, the state initially providing
    52  funds for the renovation  of  Belmont  Park  racetrack,  the  franchised
    53  corporation  shall  also  enter  into an agreement with the state relin-
    54  quishing to the state its leasehold interest in real property located in

        S. 4009                            58                            A. 3009
 
     1  South Ozone Park, commonly known as Aqueduct Racetrack, upon substantial
     2  completion of the renovation of Belmont Park racetrack.
     3    §  4.  The  New  York State Gaming Commission shall ensure that to the
     4  extent that the law allows for a franchise agreement for  the  operation
     5  of  Belmont  Park  racetrack with a franchisee other than the franchised
     6  corporation, the term of any  such  franchise  agreement  awarded  after
     7  funding  provided  by the state for the renovation of Belmont Park race-
     8  track described by section one of this act  shall  include  a  provision
     9  obligating  such  franchisee  to  assume  the payments of the franchised
    10  corporation required by section two of this act.
    11    § 5. The opening paragraph of paragraph 3 of subdivision f of  section
    12  1612  of  the  tax law is designated subparagraph (i) and a new subpara-
    13  graph (ii) is added to read as follows:
    14    (ii) Notwithstanding subparagraph (i) of this paragraph, in the  event
    15  the  state  provides  funds  to the franchised corporation for the reno-
    16  vation of Belmont Park racetrack, out of the amount payable to the fran-
    17  chised corporation for capital expenditures pursuant to subparagraph (i)
    18  of this paragraph during any state fiscal year, an  amount  pursuant  to
    19  the repayment agreement between the state and the franchised corporation
    20  shall instead be deposited into the miscellaneous capital projects fund,
    21  New  York racing capital improvement fund as required to repay the state
    22  for funds provided for the renovation of Belmont Park  racetrack.    Any
    23  amount payable to the  franchised corporation  in any  state fiscal year
    24  for  capital expenditures pursuant to subparagraph (i) of this paragraph
    25  in excess of the  amount  pursuant to the  repayment  agreement  between
    26  the  state and the franchised corporation shall be deposited pursuant to
    27  subparagraph (i) of this paragraph.  Once the state has been fully reim-
    28  bursed for the costs related to the renovation  of  Belmont  Park  race-
    29  track,  this  subparagraph shall no longer apply and subparagraph (i) of
    30  this paragraph shall apply.
    31    § 6. The opening paragraph  of  paragraph  3  of  subdivision  f-1  of
    32  section  1612  of  the  tax law is designated subparagraph (i) and a new
    33  subparagraph (ii) is added to read as follows:
    34    (ii) Notwithstanding subparagraph (i) of this paragraph, in the  event
    35  the  state  provides  funds  to the franchised corporation for the reno-
    36  vation of Belmont Park racetrack, and in the event the amount  deposited
    37  pursuant  to  subparagraph  (ii)  of paragraph three of subdivision f of
    38  this section is insufficient to make the required repayment pursuant  to
    39  such subparagraph during any state fiscal year, an amount payable to the
    40  franchised corporation for capital expenditures pursuant to subparagraph
    41  (i)  of this paragraph shall instead be deposited into the miscellaneous
    42  capital projects fund, New York racing capital improvement fund  to  the
    43  extent  necessary,  when  combined with the amount set forth in subpara-
    44  graph (ii) of paragraph three of subdivision f of this section, to  make
    45  any  required  repayment  of  funds provided by the state related to the
    46  renovation of Belmont Park racetrack during such fiscal year. Any amount
    47  payable to the franchised corporation in any state fiscal year for capi-
    48  tal expenditures pursuant to  subparagraph  (i)  of  this  paragraph  in
    49  excess  of  the  amount  pursuant to the repayment agreement between the
    50  state and the franchised corporation  shall  be  deposited  pursuant  to
    51  subparagraph  (i) of this paragraph. Once the state has been fully reim-
    52  bursed for such costs related to the renovation of  Belmont  Park  race-
    53  track,  this  subparagraph shall no longer apply and subparagraph (i) of
    54  this paragraph shall apply.
    55    § 7. The state comptroller is hereby authorized and directed  to  loan
    56  money  in  accordance  with the provisions set forth in subdivision 5 of

        S. 4009                            59                            A. 3009
 
     1  section 4 of the state finance law to the miscellaneous capital projects
     2  fund, New York racing capital improvement fund.
     3    §  8. 1.  Notwithstanding any other provisions of law to the contrary,
     4  the dormitory authority, the urban development corporation, and the  New
     5  York  state  thruway  authority  are hereby authorized to issue personal
     6  income tax revenue bonds or notes or state sales tax  revenue  bonds  or
     7  notes  in  one  or  more  series in an aggregate principal amount not to
     8  exceed four hundred fifty-five million dollars ($455,000,000)  excluding
     9  bonds  or  notes  issued to pay costs of issuance of such bonds or notes
    10  and bonds or notes issued to refund or otherwise  repay  such  bonds  or
    11  notes  previously issued, for the purpose of financing the renovation of
    12  Belmont Park racetrack.
    13    2. Notwithstanding any other provision of  law  to  the  contrary,  in
    14  order  to assist the dormitory authority, urban development corporation,
    15  and the New York state thruway authority in  undertaking  the  financing
    16  for the renovation of Belmont Park racetrack, the director of the budget
    17  is hereby authorized to enter into one or more financing agreements with
    18  the  dormitory authority, the urban development corporation, and the New
    19  York state thruway authority, upon such  terms  and  conditions  as  the
    20  director  of  the budget and the dormitory authority, the urban develop-
    21  ment corporation and the New York state thruway authority agree,  so  as
    22  to  annually  provide  to the dormitory authority, the urban development
    23  corporation, and the New York state thruway authority, in the aggregate,
    24  a sum not to  exceed  the  principal,  interest,  and  related  expenses
    25  required  for such bonds and notes. Any financing agreement entered into
    26  pursuant to this section shall provide that the obligation of the  state
    27  to  pay  the  amount therein provided shall not constitute a debt of the
    28  state within the meaning of any constitutional  or  statutory  provision
    29  and shall be deemed executory only to the extent of monies available and
    30  that  no  liability  shall  be  incurred  by the state beyond the monies
    31  available for such purpose,  subject  to  annual  appropriation  by  the
    32  legislature. Any such contract or any payments made or to be made there-
    33  under  may be assigned and pledged by the dormitory authority, the urban
    34  development corporation, and the New York  state  thruway  authority  as
    35  security for such bonds and notes, as authorized by this section.
    36    §  9.  Notwithstanding any law to the contrary, and in accordance with
    37  section 4 of the state finance law, the comptroller is hereby authorized
    38  and directed in each state fiscal year to transfer, upon request of  the
    39  director  of  the budget, up to the unencumbered balance or an amount up
    40  to twenty-five million eight hundred thousand dollars ($25,800,000) from
    41  the  miscellaneous  capital  projects  fund,  New  York  racing  capital
    42  improvement fund to the general fund.
    43    § 10. This act shall take effect immediately.
 
    44                                   PART Y
 
    45    Section  1.  Paragraph  1  of subdivision a of section 1612 of the tax
    46  law, as amended by chapter 174 of the laws of 2013, is amended  to  read
    47  as follows:
    48    (1) sixty percent of the total amount for which tickets have been sold
    49  for  [a  lawful lottery] the Quick Draw game [introduced on or after the
    50  effective date of this paragraph,] subject to [the following provisions:
    51    (A) such game shall be available only on premises occupied by licensed
    52  lottery sales agents, subject to the following provisions:
    53    (i) if the licensee does not hold a license  issued  pursuant  to  the
    54  alcoholic  beverage control law to sell alcoholic beverages for consump-

        S. 4009                            60                            A. 3009

     1  tion on the premises, then the  premises  must  have  a  minimum  square
     2  footage greater than two thousand five hundred square feet;
     3    (ii)  notwithstanding  the  foregoing provisions, television equipment
     4  that  automatically  displays  the  results  of  such  drawings  may  be
     5  installed and used without regard to the square footage if such premises
     6  are used as:
     7    (I) a commercial bowling establishment, or
     8    (II)  a facility authorized under the racing, pari-mutuel wagering and
     9  breeding law to accept pari-mutuel wagers;
    10    (B) the] rules for the operation of such game [shall be] as prescribed
    11  by regulations promulgated and adopted by the division[, provided howev-
    12  er, that such rules shall provide that no person under the age of  twen-
    13  ty-one  may  participate in such games on the premises of a licensee who
    14  holds a license issued pursuant to the alcoholic beverage control law to
    15  sell alcoholic beverages for consumption on the premises; and, provided,
    16  further, that such regulations may be revised on an emergency basis  not
    17  later than ninety days after the enactment of this paragraph in order to
    18  conform such regulations to the requirements of this paragraph]; or
    19    § 2. This act shall take effect immediately.
 
    20                                   PART Z
 
    21    Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
    22  amended by adding a new section 502-a to read as follows:
    23    § 502-a. Closure of Catskill regional off-track  betting  corporation.
    24  1.  Catskill  regional  off-track  betting corporation established under
    25  section five hundred two of this article is terminated, subject  to  the
    26  satisfaction  of  outstanding  debts and obligations and distribution of
    27  any remaining assets, as set forth in this section.
    28    2. Catskill regional off-track betting corporation shall  continue  in
    29  its existence solely for the purpose of satisfying all outstanding debts
    30  and  obligations  and  distribution of any remaining assets, taking into
    31  account the priority requirements of subdivision  two  of  section  five
    32  hundred  six and subdivision two of section five hundred sixteen of this
    33  article.  Such corporation shall submit a list of all outstanding  debts
    34  and  obligations  to  the  commission  and a plan proposing the order in
    35  which such debts and obligations  shall  be  satisfied.  The  commission
    36  shall  approve  or  modify such plan. Once all debts and obligations are
    37  satisfied or all available funds have been exhausted, and any  remaining
    38  assets  are  distributed,  such  corporation shall be terminated for all
    39  purposes.  Such corporation may use the following to satisfy its  exist-
    40  ing debts and obligations:
    41    (a)  in  accordance with subdivision four of section five hundred nine
    42  of this article, any  remaining  money  in  such  corporation's  capital
    43  reserve  fund,  after  use of such funds for payment of the principal of
    44  bonds, interest on such bonds and the payment of any redemption  premium
    45  required, as set forth in such section; and
    46    (b) in accordance with subdivision four of section five hundred nine-a
    47  of this article, funds from its capital acquisition fund.
    48    §  2. Paragraph c of subdivision 1 of section 509 of the racing, pari-
    49  mutuel wagering and breeding law, as amended by chapter 243 of the  laws
    50  of  2020,  is  amended  and  a  new  subdivision  4 is added, to read as
    51  follows:
    52    c. Any other moneys that may be made available to the corporation  for
    53  the purpose of such capital reserve fund from any other source or sourc-
    54  es. All moneys held in the capital reserve fund, except as [hereinafter]

        S. 4009                            61                            A. 3009
 
     1  provided  in  this  paragraph  and  in subdivision four of this section,
     2  shall be used solely for the payment of the principal of  bonds  of  the
     3  corporation,  the  payment  of interest on such bonds, or the payment of
     4  any  redemption premium required to be paid when such bonds are redeemed
     5  prior to maturity;  provided,  however,  that  moneys  in  such  capital
     6  reserve fund shall not be withdrawn therefrom at any time in such amount
     7  as  would reduce the amount of such fund to less than the maximum amount
     8  of principal and interest maturing and becoming due  in  any  succeeding
     9  fiscal  year  of  the  corporation  on all bonds of the corporation then
    10  outstanding, except for the purpose of paying principal of and  interest
    11  on  such  bonds of the corporation maturing and becoming due and for the
    12  payment of which other moneys of the corporation are not available.  Any
    13  income  or interest earned by, or increment to, the capital reserve fund
    14  due to the investment thereof may  be  transferred  to  other  funds  or
    15  accounts  to  the  extent  it  does not reduce the amount of the capital
    16  reserve fund below the maximum amount of principal and interest maturing
    17  and becoming due in any such succeeding fiscal year on all bonds of  the
    18  corporation then outstanding.
    19    4.  Upon the termination of Catskill regional off-track betting corpo-
    20  ration pursuant to section five  hundred  two-a  of  this  article,  the
    21  remainder  of  the  corporation's capital reserve fund, after such funds
    22  are used for the purposes set forth in paragraph c of subdivision one of
    23  this section, shall be used to pay other obligations, debts and  liabil-
    24  ities  of  the  corporation  pursuant  to  the  commission-approved plan
    25  described in subdivision two of section five hundred two-a of this arti-
    26  cle.
    27    § 3. Section 509-a of the racing, pari-mutuel  wagering  and  breeding
    28  law is amended by adding a new subdivision 4 to read as follows:
    29    4.  As  of  April  first, two thousand twenty-three, Catskill regional
    30  off-track betting corporation may use any remaining money in its capital
    31  acquisition fund to pay off any outstanding  debts  and  obligations  in
    32  accordance  with  the  commission-approved plan described in subdivision
    33  two of section five hundred two-a of this article. The use of such money
    34  shall be subject to the approval of the commission and shall not be used
    35  to pay the wages and benefits of employees of such corporation until all
    36  other debts and obligations have been satisfied. Any money remaining  in
    37  the  fund  after  such  debts and obligations have been paid upon termi-
    38  nation of such corporation shall  be  distributed  to  the  counties  in
    39  accordance with law.
    40    §  4. Section 521 of the racing, pari-mutuel wagering and breeding law
    41  is amended by adding a new subdivision 9 to read as follows:
    42    9. Notwithstanding any other provision of this article to the  contra-
    43  ry,  a  county  for  whose  benefit  Catskill regional off-track betting
    44  corporation had been established may enter into  an  agreement  with  an
    45  existing  off-track  betting  corporation  from  a  different  region to
    46  provide the services authorized under this article within such county.
    47    § 5. This act shall take effect immediately.
 
    48                                   PART AA

    49    Section 1. Subdivision 2 of section 509-a of the  racing,  pari-mutuel
    50  wagering and breeding law, as amended by section 1 of part DD of chapter
    51  59 of the laws of 2022, is amended to read as follows:
    52    2.  a. Notwithstanding any other provision of law or regulation to the
    53  contrary, from April nineteenth, two thousand twenty-one to March  thir-
    54  ty-first,  two  thousand  twenty-two, twenty-three percent of the funds,

        S. 4009                            62                            A. 3009
 
     1  not to exceed two and one-half million dollars,  in  the  Catskill  off-
     2  track  betting  corporation's  capital acquisition fund and twenty-three
     3  percent of the funds, not to exceed four hundred forty thousand dollars,
     4  in  the Capital off-track betting corporation's capital acquisition fund
     5  established pursuant to this section shall also  be  available  to  such
     6  off-track betting corporation for the purposes of statutory obligations,
     7  payroll, and expenditures necessary to accept authorized wagers.
     8    b.  Notwithstanding  any  other  provision of law or regulation to the
     9  contrary, from April first, two thousand  twenty-two  to  March  thirty-
    10  first, two thousand twenty-three, twenty-three percent of the funds, not
    11  to  exceed  two  and one-half million dollars, in the Catskill off-track
    12  betting corporation's capital acquisition fund established  pursuant  to
    13  this  section, and twenty-three percent of the funds, not to exceed four
    14  hundred forty thousand dollars, in the Capital off-track betting  corpo-
    15  ration's  capital acquisition fund established pursuant to this section,
    16  shall be available  to  such  off-track  betting  corporations  for  the
    17  purposes  of  statutory obligations, payroll, and expenditures necessary
    18  to accept authorized wagers.
    19    c. Notwithstanding any other provision of law  or  regulation  to  the
    20  contrary,  from  April first, two thousand twenty-three to March thirty-
    21  first, two thousand twenty-four, twenty-three percent of the funds,  not
    22  to  exceed four hundred forty thousand dollars, in the Capital off-track
    23  betting corporation's capital acquisition fund established  pursuant  to
    24  this  section,  shall be available to such off-track betting corporation
    25  for the purposes of statutory  obligations,  payroll,  and  expenditures
    26  necessary to accept authorized wagers.
    27    d.  Prior  to a corporation being able to utilize the funds authorized
    28  by [paragraph] paragraphs b and c of this subdivision,  the  corporation
    29  must  submit  an  expenditure  plan to the gaming commission for review.
    30  Such plan  shall  include  the  corporation's  outstanding  liabilities,
    31  projected  revenue  for the upcoming year, a detailed explanation of how
    32  the funds will be used, and any other information  determined  necessary
    33  by the commission. Upon review, the commission will make a determination
    34  as to whether access to the funds is needed and warranted.
    35    § 2. This act shall take effect immediately.
 
    36                                   PART BB
 
    37    Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
    38  racing, pari-mutuel wagering and breeding law, as amended by  section  1
    39  of  part  EE  of  chapter  59 of the laws of 2022, is amended to read as
    40  follows:
    41    (a) Any  racing  association  or  corporation  or  regional  off-track
    42  betting  corporation,  authorized  to conduct pari-mutuel wagering under
    43  this chapter, desiring to display the simulcast of horse races on  which
    44  pari-mutuel  betting shall be permitted in the manner and subject to the
    45  conditions provided for in this article may apply to the commission  for
    46  a  license  so to do. Applications for licenses shall be in such form as
    47  may be prescribed by the commission and shall contain  such  information
    48  or  other material or evidence as the commission may require. No license
    49  shall be issued by the commission authorizing the simulcast transmission
    50  of thoroughbred races from a track located in Suffolk  county.  The  fee
    51  for  such  licenses shall be five hundred dollars per simulcast facility
    52  and for account wagering licensees that do not operate either  a  simul-
    53  cast facility that is open to the public within the state of New York or
    54  a  licensed racetrack within the state, twenty thousand dollars per year

        S. 4009                            63                            A. 3009
 
     1  payable by the licensee to the commission for deposit into  the  general
     2  fund.  Except  as  provided  in  this  section, the commission shall not
     3  approve any application to conduct simulcasting into individual or group
     4  residences,  homes  or  other areas for the purposes of or in connection
     5  with pari-mutuel wagering. The commission may approve simulcasting  into
     6  residences,  homes or other areas to be conducted jointly by one or more
     7  regional off-track betting corporations and one or more of  the  follow-
     8  ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
     9  harness racing corporation or association; provided (i) the simulcasting
    10  consists only of those races on which pari-mutuel betting is  authorized
    11  by  this  chapter  at  one  or more simulcast facilities for each of the
    12  contracting off-track betting corporations which  shall  include  wagers
    13  made  in  accordance  with  section  one  thousand fifteen, one thousand
    14  sixteen and one thousand seventeen of  this  article;  provided  further
    15  that  the  contract  provisions or other simulcast arrangements for such
    16  simulcast facility shall be no less favorable than those  in  effect  on
    17  January  first,  two  thousand  five;  (ii)  that each off-track betting
    18  corporation having within its  geographic  boundaries  such  residences,
    19  homes  or  other  areas  technically  capable of receiving the simulcast
    20  signal shall be a contracting party; (iii) the distribution of  revenues
    21  shall  be  subject  to  contractual agreement of the parties except that
    22  statutory payments to  non-contracting  parties,  if  any,  may  not  be
    23  reduced;  provided,  however,  that nothing herein to the contrary shall
    24  prevent a track from televising its races on an irregular basis primari-
    25  ly for promotional or marketing purposes as found by the commission. For
    26  purposes of this paragraph, the provisions of section one thousand thir-
    27  teen of this article shall  not  apply.  Any  agreement  authorizing  an
    28  in-home simulcasting experiment commencing prior to May fifteenth, nine-
    29  teen hundred ninety-five, may, and all its terms, be extended until June
    30  thirtieth,  two  thousand [twenty-three] twenty-four; provided, however,
    31  that any party to such agreement may elect to terminate  such  agreement
    32  upon  conveying written notice to all other parties of such agreement at
    33  least forty-five days prior to the effective date  of  the  termination,
    34  via  registered mail. Any party to an agreement receiving such notice of
    35  an intent to terminate, may request the commission  to  mediate  between
    36  the  parties new terms and conditions in a replacement agreement between
    37  the parties as will permit continuation of an in-home  experiment  until
    38  June  thirtieth,  two  thousand  [twenty-three] twenty-four; and (iv) no
    39  in-home simulcasting in the thoroughbred special betting district  shall
    40  occur without the approval of the regional thoroughbred track.
    41    §  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
    42  1007 of the racing, pari-mutuel wagering and breeding law, as amended by
    43  section 2 of part EE of chapter 59 of the laws of 2022,  is  amended  to
    44  read as follows:
    45    (iii) Of the sums retained by a receiving track located in Westchester
    46  county  on  races received from a franchised corporation, for the period
    47  commencing January first, two thousand eight and continuing through June
    48  thirtieth, two thousand  [twenty-three]  twenty-four,  the  amount  used
    49  exclusively  for purses to be awarded at races conducted by such receiv-
    50  ing track shall be computed as follows: of the sums so retained, two and
    51  one-half percent of the total pools. Such amount shall be  increased  or
    52  decreased  in  the  amount  of  fifty percent of the difference in total
    53  commissions determined by  comparing  the  total  commissions  available
    54  after  July  twenty-first,  nineteen  hundred  ninety-five  to the total
    55  commissions that would have been available to such track prior  to  July
    56  twenty-first, nineteen hundred ninety-five.

        S. 4009                            64                            A. 3009
 
     1    §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
     2  racing, pari-mutuel wagering and breeding law, as amended by  section  3
     3  of  part  EE  of  chapter  59 of the laws of 2022, is amended to read as
     4  follows:
     5    The  provisions of this section shall govern the simulcasting of races
     6  conducted at thoroughbred tracks located in another state or country  on
     7  any day during which a franchised corporation is conducting a race meet-
     8  ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
     9  thirtieth, two  thousand  [twenty-three]  twenty-four  and  on  any  day
    10  regardless  of  whether  or not a franchised corporation is conducting a
    11  race meeting in Saratoga county at Saratoga thoroughbred racetrack after
    12  June thirtieth, two thousand [twenty-three] twenty-four. On any  day  on
    13  which  a franchised corporation has not scheduled a racing program but a
    14  thoroughbred racing corporation located within the state  is  conducting
    15  racing, each off-track betting corporation branch office and each simul-
    16  casting  facility licensed in accordance with section one thousand seven
    17  (that has entered into a written agreement with such  facility's  repre-
    18  sentative  horsemen's  organization, as approved by the commission), one
    19  thousand eight, or one thousand nine of this article shall be authorized
    20  to accept wagers and display the live simulcast signal from thoroughbred
    21  tracks located in another  state  or  foreign  country  subject  to  the
    22  following provisions:
    23    § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
    24  and  breeding  law,  as amended by section 4 of part EE of chapter 59 of
    25  the laws of 2022, is amended to read as follows:
    26    1. The provisions of this section shall  govern  the  simulcasting  of
    27  races  conducted  at  harness tracks located in another state or country
    28  during the period July first, nineteen hundred ninety-four through  June
    29  thirtieth,  two  thousand [twenty-three] twenty-four. This section shall
    30  supersede all inconsistent provisions of this chapter.
    31    § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
    32  racing,  pari-mutuel  wagering and breeding law, as amended by section 5
    33  of part EE of chapter 59 of the laws of 2022,  is  amended  to  read  as
    34  follows:
    35    The  provisions of this section shall govern the simulcasting of races
    36  conducted at thoroughbred tracks located in another state or country  on
    37  any  day  during which a franchised corporation is not conducting a race
    38  meeting in Saratoga county at Saratoga thoroughbred racetrack until June
    39  thirtieth, two  thousand  [twenty-three]  twenty-four.  Every  off-track
    40  betting  corporation  branch  office  and  every  simulcasting  facility
    41  licensed in accordance with section one thousand seven that have entered
    42  into a written agreement with such facility's representative  horsemen's
    43  organization  as  approved  by the commission, one thousand eight or one
    44  thousand nine of this article shall be authorized to accept  wagers  and
    45  display  the  live  full-card  simulcast  signal  of thoroughbred tracks
    46  (which may include quarter horse or mixed  meetings  provided  that  all
    47  such wagering on such races shall be construed to be thoroughbred races)
    48  located  in  another  state or foreign country, subject to the following
    49  provisions; provided,  however,  no  such  written  agreement  shall  be
    50  required of a franchised corporation licensed in accordance with section
    51  one thousand seven of this article:
    52    §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
    53  wagering and breeding law, as amended by section 6 of part EE of chapter
    54  59 of the laws of 2022, is amended to read as follows:
    55    Notwithstanding any other provision of this chapter,  for  the  period
    56  July  twenty-fifth, two thousand one through September eighth, two thou-

        S. 4009                            65                            A. 3009
 
     1  sand  [twenty-two]  twenty-three,  when  a  franchised  corporation   is
     2  conducting  a  race  meeting  within  the state at Saratoga Race Course,
     3  every off-track betting corporation branch office and every simulcasting
     4  facility  licensed  in  accordance with section one thousand seven (that
     5  has entered into a written agreement with such facility's representative
     6  horsemen's organization as approved by  the  commission),  one  thousand
     7  eight or one thousand nine of this article shall be authorized to accept
     8  wagers  and  display  the live simulcast signal from thoroughbred tracks
     9  located in another state,  provided  that  such  facility  shall  accept
    10  wagers  on  races  run  at  all  in-state  thoroughbred tracks which are
    11  conducting  racing  programs  subject  to  the   following   provisions;
    12  provided,  however,  no  such  written  agreement shall be required of a
    13  franchised corporation licensed in accordance with section one  thousand
    14  seven of this article.
    15    §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
    16  racing, pari-mutuel wagering and breeding law and other laws relating to
    17  simulcasting, as amended by section 7 of part EE of chapter  59  of  the
    18  laws of 2022, is amended to read as follows:
    19    §  32.  This act shall take effect immediately and the pari-mutuel tax
    20  reductions in section six  of  this  act  shall  expire  and  be  deemed
    21  repealed  on  July  1,  [2023]  2024;  provided,  however,  that nothing
    22  contained herein shall be deemed to affect the  application,  qualifica-
    23  tion,  expiration,  or  repeal  of  any  provision of law amended by any
    24  section of this act, and such provisions shall be applied  or  qualified
    25  or  shall  expire  or be deemed repealed in the same manner, to the same
    26  extent and on the same date as the case may be as otherwise provided  by
    27  law;  provided  further, however, that sections twenty-three and twenty-
    28  five of this act shall remain in full force and effect only until May 1,
    29  1997 and at such time shall be deemed to be repealed.
    30    § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
    31  racing, pari-mutuel wagering and breeding law and other laws relating to
    32  simulcasting  and the imposition of certain taxes, as amended by section
    33  8 of part EE of chapter 59 of the laws of 2022, is amended  to  read  as
    34  follows:
    35    §  54.  This  act  shall  take  effect immediately; provided, however,
    36  sections three through twelve of this act shall take effect  on  January
    37  1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
    38  ing  law, as added by section thirty-eight of this act, shall expire and
    39  be deemed repealed on July 1, [2023] 2024; and section eighteen of  this
    40  act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
    41  two of this act shall take effect as of the same date as chapter 772  of
    42  the laws of 1989 took effect.
    43    §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
    44  pari-mutuel wagering and breeding law, as amended by section 9  of  part
    45  EE of chapter 59 of the laws of 2022, is amended to read as follows:
    46    (a)  The  franchised  corporation  authorized  under  this  chapter to
    47  conduct pari-mutuel betting at a race meeting or races run thereat shall
    48  distribute all sums deposited in any pari-mutuel pool to the holders  of
    49  winning tickets therein, provided such tickets are presented for payment
    50  before  April  first  of  the year following the year of their purchase,
    51  less an amount that shall be established and retained by such franchised
    52  corporation of between twelve to seventeen percent of the total deposits
    53  in pools resulting from on-track regular bets, and fourteen  to  twenty-
    54  one  percent  of  the  total  deposits  in pools resulting from on-track
    55  multiple bets and fifteen to twenty-five percent of the  total  deposits
    56  in  pools  resulting from on-track exotic bets and fifteen to thirty-six

        S. 4009                            66                            A. 3009
 
     1  percent of the total deposits in pools  resulting  from  on-track  super
     2  exotic  bets,  plus  the breaks. The retention rate to be established is
     3  subject to the prior approval of the commission.
     4    Such rate may not be changed more than once per calendar quarter to be
     5  effective  on  the  first day of the calendar quarter. "Exotic bets" and
     6  "multiple bets" shall have  the  meanings  set  forth  in  section  five
     7  hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
     8  meaning set forth in section three hundred  one  of  this  chapter.  For
     9  purposes  of  this  section, a "pick six bet" shall mean a single bet or
    10  wager on the outcomes of six races. The breaks are hereby defined as the
    11  odd cents over any multiple of five for payoffs greater than one  dollar
    12  five  cents  but  less  than  five dollars, over any multiple of ten for
    13  payoffs greater than five dollars but  less  than  twenty-five  dollars,
    14  over  any  multiple  of twenty-five for payoffs greater than twenty-five
    15  dollars but less than two hundred fifty dollars, or over any multiple of
    16  fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
    17  retained  there  shall  be  paid  by  such franchised corporation to the
    18  commissioner of taxation and finance, as a reasonable tax by  the  state
    19  for  the privilege of conducting pari-mutuel betting on the races run at
    20  the race meetings held by such  franchised  corporation,  the  following
    21  percentages of the total pool for regular and multiple bets five percent
    22  of regular bets and four percent of multiple bets plus twenty percent of
    23  the  breaks;  for  exotic  wagers seven and one-half percent plus twenty
    24  percent of the breaks, and for super  exotic  bets  seven  and  one-half
    25  percent plus fifty percent of the breaks.
    26    For  the period April first, two thousand one through December thirty-
    27  first, two thousand [twenty-three] twenty-four, such tax on  all  wagers
    28  shall  be  one and six-tenths percent, plus, in each such period, twenty
    29  percent of the breaks. Payment to the New York state thoroughbred breed-
    30  ing and development fund by such franchised corporation  shall  be  one-
    31  half  of one percent of total daily on-track pari-mutuel pools resulting
    32  from regular, multiple and exotic bets and three percent of super exotic
    33  bets and for the period April first, two thousand one  through  December
    34  thirty-first,  two  thousand  [twenty-three]  twenty-four,  such payment
    35  shall be seven-tenths of one percent of  regular,  multiple  and  exotic
    36  pools.
    37    § 10. This act shall take effect immediately.
 
    38                                   PART CC
 
    39    Section  1.  Subdivision 1-A of section 208 of the tax law, as amended
    40  by section 4 of part A of chapter 59 of the laws of 2014, is amended  to
    41  read as follows:
    42    1-A.  The  term  "New  York  S corporation" means, with respect to any
    43  taxable year, a federal S corporation [subject to tax under this article
    44  for which an election is in effect pursuant to] required to  file  as  a
    45  New York S corporation pursuant to subsection (a) of section six hundred
    46  sixty  of this chapter for such year, and any such year shall be denomi-
    47  nated a "New York S year", [and such election  shall  be  denominated  a
    48  "New York S election"] unless the corporation is treated as a New York C
    49  corporation  for  such  year under subsection (b) of section six hundred
    50  sixty of this chapter. The term "New York  C  corporation"  means,  with
    51  respect  to  any  taxable  year, a corporation subject to tax under this
    52  article which is not a New York S corporation, and any such  year  shall
    53  be  denominated  a  "New York C year". The term "termination year" means
    54  any taxable year of a corporation during which the corporation's  status

        S. 4009                            67                            A. 3009
 
     1  as  a  New  York S [election] corporation terminates on a day other than
     2  the first day of such year. The  portion  of  the  taxable  year  ending
     3  before  the  first  day for which such termination is effective shall be
     4  denominated  the  "S short year", and the portion of such year beginning
     5  on such first day shall be denominated the "C  short  year".  [The  term
     6  "New  York  S  termination year" means any termination year which is not
     7  also an S termination year for federal purposes.]
     8    § 2. Subdivision 1-B of section 208 of the  tax  law,  as  amended  by
     9  section  4  of  part  A of chapter 59 of the laws of 2014, is amended to
    10  read as follows:
    11    1-B. The term "QSSS" means a corporation which is a qualified subchap-
    12  ter S subsidiary as defined in subparagraph (B) of  paragraph  three  of
    13  subsection  (b)  of  section  thirteen hundred sixty-one of the internal
    14  revenue code. [The term "exempt QSSS" means a QSSS exempt from tax under
    15  this article as provided in paragraph (k) of subdivision  nine  of  this
    16  section,  or a QSSS described in subclause (i) of clause (B) of subpara-
    17  graph two of paragraph (k) of subdivision nine of this section,  wherein
    18  the parent corporation of the QSSS is subject to tax under this article,
    19  and  the  assets,  liabilities,  income  and  deductions of the QSSS are
    20  treated as the assets, liabilities, income and deductions of the  parent
    21  corporation. Where a QSSS is an exempt QSSS, then for all purposes under
    22  this  article]  When  the parent corporation of the QSSS is a New York S
    23  corporation:
    24    (a) the assets, liabilities, income,  deductions,  property,  payroll,
    25  receipts, capital, credits, and all other tax attributes and elements of
    26  economic  activity of the QSSS shall be deemed to be those of the parent
    27  corporation,
    28    (b) the stocks, bonds and other securities issued by, and any  indebt-
    29  edness from, the QSSS shall not be investment or business capital of the
    30  parent corporation,
    31    (c)  transactions between the parent corporation and the QSSS, includ-
    32  ing the payment of interest and  dividends,  shall  not  be  taken  into
    33  account, [and]
    34    (d)  general  executive  officers  of  the  QSSS shall be deemed to be
    35  general executive officers of the parent corporation, and
    36    (e) the QSSS shall not be subject to tax under this article.
    37    § 3. Paragraph (k) of subdivision 9 of section 208 of the tax law,  as
    38  amended  by  section  4  of part A of chapter 59 of the laws of 2014, is
    39  amended to read as follows:
    40    (k) QSSS. (1) [New York S corporation. In the case of  a  New  York  S
    41  corporation  which  is the parent of a qualified subchapter S subsidiary
    42  (QSSS) with respect to a taxable year:
    43    (A) where the QSSS is not an excluded corporation,
    44    (i) in determining the entire net income of such  parent  corporation,
    45  all  assets,  liabilities,  income  and  deductions of the QSSS shall be
    46  treated as assets, liabilities, income  and  deductions  of  the  parent
    47  corporation, and
    48    (ii)  the QSSS shall be exempt from all taxes imposed by this article,
    49  and
    50    (B) where the QSSS is an excluded corporation, the entire  net  income
    51  of  the  parent  corporation  shall be determined as if the federal QSSS
    52  election had not been made.
    53    (2)] New York C corporation. In the case of a  federal  S  corporation
    54  that  is  a  New  York  C corporation [which is] under subsection (b) of
    55  section six hundred sixty of this chapter and is the parent  of  a  QSSS
    56  with respect to a taxable year:

        S. 4009                            68                            A. 3009

     1    (A) where the QSSS is a taxpayer,
     2    (i)  in  determining the entire net income of such parent corporation,
     3  all assets, liabilities, income and deductions  of  the  QSSS  shall  be
     4  treated  as  assets,  liabilities,  income  and deductions of the parent
     5  corporation, and
     6    (ii) the QSSS shall be exempt from all taxes imposed by this  article,
     7  and
     8    (B) where the QSSS is not a taxpayer,
     9    (i) if the QSSS is not an excluded corporation, the parent corporation
    10  may  make  a QSSS inclusion election to include all assets, liabilities,
    11  income and deductions of the QSSS as  assets,  liabilities,  income  and
    12  deductions of the parent corporation, and
    13    (ii) in the absence of such election, or where the QSSS is an excluded
    14  corporation,  the  entire  net income of the parent corporation shall be
    15  determined as if the federal QSSS election had not been made.
    16    [(3) Non-New York S corporation not excluded. In  the  case  of  an  S
    17  corporation which is not a taxpayer and not an excluded corporation, and
    18  which  is  the parent of a QSSS which is a taxpayer, the shareholders of
    19  the parent corporation shall be entitled to make the New York S election
    20  under subsection (a) of section six hundred sixty of this chapter.
    21    (A) For any taxable year for which such election  is  in  effect,  the
    22  parent  corporation  shall be subject to tax under this article as a New
    23  York S corporation, and the provisions of clause (A) of subparagraph one
    24  of this paragraph shall apply.
    25    (B) For any taxable year for which such election is not in effect, the
    26  QSSS shall be a New York C corporation, and the entire net income of the
    27  QSSS shall be determined as if the federal QSSS election  had  not  been
    28  made. For purposes of such determination, the taxable year of the parent
    29  corporation  shall  constitute  the taxable year of the QSSS, excluding,
    30  however, any portion of such year during which the QSSS is not a taxpay-
    31  er.
    32    (4) S corporation excluded. In the case of an S corporation  which  is
    33  an  excluded  corporation  and  which is the parent of a QSSS which is a
    34  taxpayer, the QSSS shall be a New York C corporation and the  provisions
    35  of clause (B) of subparagraph three of this paragraph shall apply.
    36    (5)] (2) Excluded corporation. The term "excluded corporation" means a
    37  corporation  subject  to  tax  under  sections  one hundred eighty-three
    38  through one hundred eighty-six, inclusive, or  article  thirty-three  of
    39  this  chapter, or a foreign corporation not taxable by this state which,
    40  if it were taxable, would be subject to tax under any of  such  sections
    41  or article.
    42    [(6)]  (3) Taxpayer. For purposes of this paragraph, the term "taxpay-
    43  er" means a parent corporation or QSSS subject to tax under  this  arti-
    44  cle, determined without regard to the provisions of this paragraph.
    45    [(7)] (4) QSSS inclusion election. The election under subclause (i) of
    46  clause  (B)  of subparagraph [two] one of this paragraph shall be effec-
    47  tive for the taxable year for which made and for all succeeding  taxable
    48  years  of the corporation until such election is terminated. An election
    49  or termination shall be made on such form and  in  such  manner  as  the
    50  commissioner may prescribe by regulation or instruction.
    51    § 4. Subparagraph (A) of paragraph 5 of subdivision (a) of section 292
    52  of  the  tax law, as added by section 48 of part A of chapter 389 of the
    53  laws of 1997, is amended to read as follows:
    54    (A) In the case of a shareholder of an S corporation, (i)  [where  the
    55  election  provided for in] except for when such S corporation is treated
    56  as a New York C corporation under subsection [(a)] (b)  of  section  six

        S. 4009                            69                            A. 3009
 
     1  hundred  sixty of this chapter [is in effect with respect to such corpo-
     2  ration], there shall be added  to  federal  unrelated  business  taxable
     3  income an amount equal to the shareholder's pro rata share of the corpo-
     4  ration's  reductions  for taxes described in paragraphs two and three of
     5  subsection (f) of section thirteen hundred  sixty-six  of  the  internal
     6  revenue  code,  and  (ii)  where  such  [election has not been made with
     7  respect to such corporation] S corporation is treated as a  New  York  C
     8  corporation  under  subsection  (b) of section six hundred sixty of this
     9  chapter, there shall be subtracted from federal unrelated business taxa-
    10  ble income any items of income of the corporation included therein,  and
    11  there  shall  be  added to federal unrelated business taxable income any
    12  items of loss or deduction included therein, and (iii) in the case of [a
    13  New York] an S termination year, the amount  of  any  such  items  of  S
    14  corporation  income,  loss,  deduction and reductions for taxes shall be
    15  adjusted in the manner provided in paragraph two or three of  subsection
    16  (s) of section six hundred twelve of this chapter.
    17    §  5. Paragraph 18 of subsection (b) of section 612 of the tax law, as
    18  amended by chapter 606 of the laws of 1984, subparagraph (A) as  amended
    19  by  chapter  28  of  the laws of 1987 and subparagraph (B) as amended by
    20  chapter 190 of the laws of 1990, is amended to read as follows:
    21    (18) In the case of a shareholder of an S corporation as described  in
    22  subsection (a) of section six hundred sixty of this article:
    23    (A)  [where the election provided for in subsection (a) of section six
    24  hundred sixty is in effect with respect to such corporation,] an  amount
    25  equal  to  [his]  such shareholder's pro rata share of the corporation's
    26  reductions for taxes described in paragraphs two and three of subsection
    27  (f) of section thirteen hundred sixty-six of the internal revenue  code,
    28  and
    29    (B)  in  the  case of [a New York] an S termination year, subparagraph
    30  (A) of this paragraph shall apply to the amount of reductions for  taxes
    31  determined under subsection (s) of this section.
    32    §  6. Paragraph 19 of subsection (b) of section 612 of the tax law, as
    33  amended by chapter 606 of the laws of 1984, subparagraph (A) as  amended
    34  by    chapter  28 of the laws of 1987 and subparagraph (B) as amended by
    35  chapter 190 of the laws of 1990, is amended to read as follows:
    36    (19) In the case of a shareholder of an S corporation (A)  where  [the
    37  election provided for in]  such S corporation is treated as a New York C
    38  corporation under subsection [(a)] (b) of section six hundred sixty [has
    39  not  been  made  with  respect to such corporation] of this article, any
    40  item of loss or deduction of the corporation included in  federal  gross
    41  income  pursuant  to  section thirteen hundred sixty-six of the internal
    42  revenue code, and (B) in the case of [a New York] an S termination year,
    43  subparagraph (A) of this paragraph shall apply to the amounts of loss or
    44  deduction determined under subsection (s) of this section.
    45    § 7. Paragraph 20 of subsection (b) of section 612 of the tax law,  as
    46  amended  by  chapter  606  of  the  laws  of 1984, is amended to read as
    47  follows:
    48    (20) S corporation distributions to the extent not included in federal
    49  gross income for the taxable year because of the application of  section
    50  thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
    51  seventy-one  or  subsection (c) of section thirteen hundred seventy-nine
    52  of the internal revenue  code  which  represent  income  not  previously
    53  subject  to  tax  under  this article (a) for tax years beginning before
    54  January first, two thousand twenty-four, because the  election  provided
    55  for  in  subsection (a) of section six hundred sixty of this article had
    56  not been made, or (b) for tax years beginning on or after January first,

        S. 4009                            70                            A. 3009
 
     1  two thousand twenty-four, because the S corporation filed a return under
     2  article nine-A of this chapter pursuant to subsection (b) of section six
     3  hundred sixty of this article. Any  such  distribution  treated  in  the
     4  manner  described in paragraph two of subsection (b) of section thirteen
     5  hundred sixty-eight of the internal revenue code for federal income  tax
     6  purposes  shall be treated as ordinary income for purposes of this arti-
     7  cle.
     8    § 8.  Paragraph 22 of subsection (c) of section 612 of the tax law, as
     9  amended by chapter 606 of the laws of 1984, subparagraph (A) as  amended
    10  by    chapter  28 of the laws of 1987 and subparagraph (B) as amended by
    11  chapter 190 of the laws of 1990, is amended to read as follows:
    12    (22) In the case of a shareholder of an S corporation (A)  where  [the
    13  election  provided for in] such S corporation is treated as a New York C
    14  corporation under subsection [(a)] (b) of section six hundred sixty [has
    15  not been made with respect to such corporation]  of  this  article,  any
    16  item  of  income  of  the  corporation  included in federal gross income
    17  pursuant to section thirteen hundred sixty-six of the  internal  revenue
    18  code, and
    19    (B)  in  the  case of [a New York] an S termination year, subparagraph
    20  (A) of this paragraph shall apply to the amounts  of  income  determined
    21  under subsection (s) of this section.
    22    §  9. The section heading and paragraph 1 of subsection (s) of section
    23  612 of the tax law, as amended by chapter 760 of the laws  of  1992,  is
    24  amended to read as follows:
    25    (s)  [New York] S termination year. (1) General. In the case of [a New
    26  York] an S termination year, the amount of any  item  of  S  corporation
    27  income,  loss  and  deduction  included  in  the  shareholder's  federal
    28  adjusted gross income and any reductions  for  taxes  (as  described  in
    29  paragraphs  two  and three of subsection (f) of section thirteen hundred
    30  sixty-six of the internal revenue code) shall be adjusted in  accordance
    31  with   the  treatment  provided  in  paragraph  two  or  three  of  this
    32  subsection.
    33    § 10. Paragraph 6 of subsection (c) of section 615 of the tax law,  as
    34  added by chapter 606 of the laws of 1984, subparagraph (B) as amended by
    35  chapter 190 of the laws of 1990, is amended to read as follows:
    36    (6) in the case of a shareholder of an S corporation
    37    (A) where [the election provided for in] such S corporation is treated
    38  as  a  New  York C corporation under subsection [(a)] (b) of section six
    39  hundred sixty [has not been made] of this article, S  corporation  items
    40  of deduction included in federal itemized deductions, and
    41    (B) in the case of [a New York] an S termination year, [the portion of
    42  such  items  assigned  to  the  period beginning on the day the election
    43  ceases to be effective, as] the modification under subparagraph  (A)  of
    44  this  paragraph  shall be determined under subsection (s) of section six
    45  hundred twelve of this part.
    46    § 11. Subparagraph (C) of paragraph 1 of subsection (b) of section 631
    47  of the tax law, as amended by chapter  586  of  the  laws  of  1999,  is
    48  amended to read as follows:
    49    (C)  in  the  case  of  a  shareholder  of an S corporation [where the
    50  election provided for in] subject  to  subsection  (a)  of  section  six
    51  hundred  sixty  of  this article [is in effect], the ownership of shares
    52  issued by such corporation, to the extent determined under  section  six
    53  hundred thirty-two of this [article] part; or
    54    §  12.  Subparagraph (E-1) of paragraph 1 of subsection (b) of section
    55  631 of the tax law, as added by section 3 of part C of chapter 57 of the
    56  laws of 2010, is amended to read as follows:

        S. 4009                            71                            A. 3009
 
     1    (E-1) in the case of an S corporation [for which  an  election  is  in
     2  effect  pursuant] subject to subsection (a) of section six hundred sixty
     3  of this article that terminates its taxable  status  in  New  York,  any
     4  income or gain recognized on the receipt of payments from an installment
     5  sale  contract entered into when the S corporation was subject to tax in
     6  New York, allocated in a manner consistent with the  applicable  methods
     7  and  rules for [allocation] apportionment under article nine-A or former
     8  article thirty-two of this chapter, in the year that the  S  corporation
     9  sold its assets.
    10    § 13. The section heading and paragraph 2 of subsection (a) of section
    11  632 of the tax law, the section heading as amended by chapter 606 of the
    12  laws of 1984, and paragraph 2 of subsection (a) as amended by section 71
    13  of  part  A  of  chapter  59 of the laws of 2014, are amended to read as
    14  follows:
    15    Nonresident partners and [electing] shareholders of S corporations.
    16    (2) In determining New York source income of a nonresident shareholder
    17  of [an] a New York S corporation [where the  election  provided  for  in
    18  subsection  (a)  of section six hundred sixty] as defined in subdivision
    19  one-A of section two hundred eight of [this article is in  effect]  this
    20  chapter,  there  shall  be  included  only  the  portion derived from or
    21  connected with New York sources of such shareholder's pro rata share  of
    22  items  of  S  corporation income, loss and deduction entering into [his]
    23  such  shareholder's  federal  adjusted  gross   income,   increased   by
    24  reductions for taxes described in paragraphs two and three of subsection
    25  (f)  of section thirteen hundred sixty-six of the internal revenue code,
    26  as such portion shall be determined under regulations of the commission-
    27  er consistent with the applicable methods  and  rules  for  [allocation]
    28  apportionment  under  article  nine-A  of  this  chapter[, regardless of
    29  whether or not such item or reduction is included in entire  net  income
    30  under article nine-A for the tax year]. If a nonresident is a sharehold-
    31  er  in [an] a New York S corporation [where the election provided for in
    32  subsection (a) of section six hundred sixty] as defined  in  subdivision
    33  one-A  of  section two hundred eight of [this article is in effect] this
    34  chapter, and the S corporation has distributed an installment obligation
    35  under section 453(h)(1)(A) of the Internal Revenue Code, then  any  gain
    36  recognized  on  the  receipt of payments from the installment obligation
    37  for federal income tax purposes will  be  treated  as  New  York  source
    38  income  allocated in a manner consistent with the applicable methods and
    39  rules for [allocation] apportionment under article nine-A of this  chap-
    40  ter  in  the  year that the assets were sold. In addition, if the share-
    41  holders of the  S  corporation  have  made  an  election  under  section
    42  338(h)(10) of the Internal Revenue Code, then any gain recognized on the
    43  deemed asset sale for federal income tax purposes will be treated as New
    44  York  source income allocated in a manner consistent with the applicable
    45  methods and rules for [allocation] apportionment under article nine-A of
    46  this  chapter  in  the  year  that  the  shareholder  made  the  section
    47  338(h)(10) election. For purposes of a section 338(h)(10) election, when
    48  a  nonresident  shareholder  exchanges his or her S corporation stock as
    49  part of the deemed liquidation, any gain or  loss  recognized  shall  be
    50  treated  as the disposition of an intangible asset and will not increase
    51  or offset any gain recognized on the deemed assets sale as a  result  of
    52  the section 338(h)(10) election.
    53    §  14.  Paragraph  2 and subparagraph (A) of paragraph 4 of subsection
    54  (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190
    55  of the laws of 1990, and subparagraph (A) of paragraph 4 as  amended  by

        S. 4009                            72                            A. 3009
 
     1  section  72  of part A of chapter 59 of the laws of 2014, are amended to
     2  read as follows:
     3    (2)  S  corporations.  Every  S  corporation  [for  which the election
     4  provided for in subsection (a)  of  section  six  hundred  sixty  is  in
     5  effect]  treated  as  a New York S corporation as defined in subdivision
     6  one-A of section two hundred eight of this chapter shall make  a  return
     7  for  the  taxable  year  setting  forth  all  items  of income, loss and
     8  deduction and such other pertinent information as  the  commissioner  of
     9  taxation and finance may by regulations and instructions prescribe. Such
    10  return  shall be filed on or before the fifteenth day of the third month
    11  following the close of each taxable year.
    12    (A) General. Every entity which is a partnership, other than a public-
    13  ly traded partnership as defined in section 7704 of the federal Internal
    14  Revenue Code, subchapter K limited liability company or [an] a New  York
    15  S  corporation [for which the election provided for in subsection (a) of
    16  section six hundred sixty of this part  is  in  effect]  as  defined  in
    17  subdivision  one-A  of  section two hundred eight of this chapter, which
    18  has partners, members or shareholders who are  nonresident  individuals,
    19  as  defined  under  subsection  (b)  of section six hundred five of this
    20  article, or C corporations, and which has any income  derived  from  New
    21  York  sources,  determined  in  accordance  with the applicable rules of
    22  section six hundred thirty-one of this article  as  in  the  case  of  a
    23  nonresident individual, shall pay estimated tax on such income on behalf
    24  of such partners, members or shareholders in the manner and at the times
    25  prescribed  by subsection (c) of section six hundred eighty-five of this
    26  article. For purposes of this paragraph, the term "estimated tax"  shall
    27  mean  a  partner's,  member's or shareholder's distributive share or pro
    28  rata share of the entity income derived from New  York  sources,  multi-
    29  plied  by  the highest rate of tax prescribed by section six hundred one
    30  of this article for the taxable year of any partner,  member  or  share-
    31  holder  who  is  an individual taxpayer, or paragraph (a) of subdivision
    32  one of section two hundred ten of this chapter for the taxable  year  of
    33  any  partner, member or shareholder which is a C corporation, whether or
    34  not such C corporation is subject to tax under article nine,  nine-A  or
    35  thirty-three  of  this chapter, and reduced by the distributive share or
    36  pro rata share of any  credits  determined  under  section  one  hundred
    37  eighty-seven,  one  hundred  eighty-seven-a,  six hundred six or fifteen
    38  hundred eleven of this chapter, whichever is  applicable,  derived  from
    39  the entity.
    40    §  15.  Section  660  of the tax law, as amended by chapter 606 of the
    41  laws of 1984, subsections (a) and (h) as amended by section 73 of part A
    42  of chapter 59 of the laws of 2014, paragraph  3  of  subsection  (b)  as
    43  amended by section 51, paragraphs 4 and 5 of subsection (b) as added and
    44  paragraph   6  of  subsection  (b)  as  renumbered  by  section  52  and
    45  subsections (e) and (f) as added and subsection  (g)  as  relettered  by
    46  section  53 of part A of chapter 389 of the laws of 1997, subsection (d)
    47  as added by chapter 760 of the laws of 1992, subsection (i) as added  by
    48  section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of
    49  subsection  (i)  as amended by section 39 of part T of chapter 59 of the
    50  laws of 2015, is amended to read as follows:
    51    § 660. [Election by shareholders of S corporations] Tax  treatment  of
    52  federal S corporations.  (a) [Election.] If a corporation is an eligible
    53  S  corporation, except for eligible S corporations treated as New York C
    54  corporations under subsection (b) of this section, the  shareholders  of
    55  the  corporation [may elect in the manner set forth in subsection (b) of
    56  this section to] shall take into account, to the extent provided for  in

        S. 4009                            73                            A. 3009
 
     1  this  article  (or in article thirteen of this chapter, in the case of a
     2  shareholder which is a taxpayer under such article), the  S  corporation
     3  items  of  income, loss, deduction and reductions for taxes described in
     4  paragraphs  two  and three of subsection (f) of section thirteen hundred
     5  sixty-six of the internal revenue code which are taken into account  for
     6  federal  income  tax  purposes  for the taxable year. [No election under
     7  this subsection shall be effective unless all shareholders of the corpo-
     8  ration have so elected.] An eligible S  corporation  is  (i)  [an  S]  a
     9  corporation  [which] that has elected to be an S corporation for federal
    10  income tax purposes pursuant to section thirteen  hundred  sixty-two  of
    11  the internal revenue code that is subject to tax under article nine-A of
    12  this  chapter,  or (ii) [an S] a corporation [which] that has elected to
    13  be an S corporation for federal income tax purposes pursuant to  section
    14  thirteen  hundred  sixty-two  of  the  internal revenue code that is not
    15  subject to tax under article nine-A of  this  chapter,  or  an  excluded
    16  corporation, and is the parent of a qualified subchapter S subsidiary as
    17  defined  in  subparagraph  (B)  of  paragraph three of subsection (b) of
    18  section thirteen hundred sixty-one of the internal revenue code  subject
    19  to  tax  under  article  nine-A[,  where the shareholders of such parent
    20  corporation are entitled to make the election under this  subsection  by
    21  reason  of  subparagraph  three  of paragraph (k) of subdivision nine of
    22  section two hundred eight] of this  chapter.    Except  as  provided  in
    23  subsection  (b) of this section, an eligible S corporation is a New York
    24  S corporation.
    25    (b)  [Requirements  of  election]  Treatment  of  qualified  New  York
    26  manufacturers  as  New York C corporations.  [An election] An eligible S
    27  corporation that meets the requirements of subparagraph  (vi)  of  para-
    28  graph  (a) of subdivision one of section two hundred ten of this chapter
    29  to be a qualified New York manufacturer may be treated as a New  York  C
    30  corporation  subject to tax under article nine-A of this chapter. Treat-
    31  ment under this subsection [(a) of this section] as a New York C  corpo-
    32  ration shall be made on such form and in such manner as the [tax commis-
    33  sion] commissioner may prescribe by regulation or instruction.
    34    (1)  [When  made]  Timing.    [An  election]  To be treated under this
    35  subsection [(a) of this section may be  made  at  any  time  during  the
    36  preceding  taxable  year  of  the  corporation or at any time during the
    37  taxable year of the corporation and on or before the  fifteenth  day  of
    38  the third month of such taxable year.
    39    (2) Certain elections made during first two and one-half months. If an
    40  election made under subsection (a) of this section is made for any taxa-
    41  ble  year  of  the  corporation  during  such  year and on or before the
    42  fifteenth day of the third month of such year, such  election  shall  be
    43  treated as made for the following taxable year if
    44    (A)  on  one or more days in such taxable year before the day on which
    45  the election was made the corporation did not meet the  requirements  of
    46  subsection  (b)  of  section  thirteen hundred sixty-one of the internal
    47  revenue code or
    48    (B) one or more of the shareholders who held stock in the  corporation
    49  during  such  taxable  year  and  before  the  election was made did not
    50  consent to the election.
    51    (3) Elections made after first two and one-half months. If an election
    52  under subsection (a) of this section is made for any taxable year of the
    53  corporation and such election is made after the  fifteenth  day  of  the
    54  third  month  of such taxable year and on or before the fifteenth day of
    55  the third month of the following taxable year, such  election  shall  be
    56  treated as made for the following taxable year.

        S. 4009                            74                            A. 3009

     1    (4)  Taxable years of two and one-half months or less. For purposes of
     2  this subsection, an election for a taxable year made not later than  two
     3  months and fifteen days after the first day of the taxable year shall be
     4  treated as timely made during such year.
     5    (5)  Authority  to  treat  late  elections, etc., as timely. If (A) an
     6  election under subsection (a) of this section is made  for  any  taxable
     7  year  (determined  without regard to paragraph three of this subsection)
     8  after the date prescribed by this subsection for  making  such  election
     9  for  such  taxable  year, or if no such election is made for any taxable
    10  year, and
    11    (B) the commissioner determines that there was  reasonable  cause  for
    12  failure to timely make such election, then
    13    (C)  the  commissioner  may  treat such an election as timely made for
    14  such taxable year (and paragraph three  of  this  subsection  shall  not
    15  apply).
    16    (6)  Years  for  which  effective. An election under subsection (a) of
    17  this section shall be effective for the taxable year of the  corporation
    18  for  which it is made and for all succeeding taxable years of the corpo-
    19  ration until such election is terminated under subsection  (c)  of  this
    20  section.]  as  a  New  York C corporation for a taxable year, the corpo-
    21  ration shall file a report as a New York  C  corporation  under  article
    22  nine-A  of this chapter for such year. Such treatment shall be effective
    23  as of the first day of the taxable year covered by such report.
    24    (c) Termination. [An election] (1) Treatment of  a  federal  S  corpo-
    25  ration as a New York S corporation under subsection (a) of this section,
    26  and  treatment  of  a  federal S corporation as a New York C corporation
    27  under subsection [(a)] (b) of this section shall cease to be effective
    28    [(1)] on the day an election to be  an  S  corporation  ceases  to  be
    29  effective  for federal income tax purposes pursuant to subsection (d) of
    30  section thirteen hundred sixty-two of the internal revenue code[, or
    31    (2) if shareholders holding more than one-half of the shares of  stock
    32  of  the  corporation  on  the day on which the revocation is made revoke
    33  such election in the manner the tax commission may  prescribe  by  regu-
    34  lation,
    35    (A)  on  the  first day of the taxable year of the corporation, if the
    36  revocation is made during  such  taxable  year  and  on  or  before  the
    37  fifteenth day of the third month thereof, or
    38    (B) on the first day of the following taxable year of the corporation,
    39  if  the  revocation  is  made  during  the  taxable  year  but after the
    40  fifteenth day of the third month thereof, or
    41    (C) on and after the date so specified, if the revocation specifies  a
    42  date for revocation which is on or after the day on which the revocation
    43  is made, or
    44    (3)  if any person who was not a shareholder of the corporation on the
    45  day on which the election is made becomes a shareholder  in  the  corpo-
    46  ration  and  affirmatively  refuses  to  consent to such election in the
    47  manner the tax commission may prescribe by regulation, on the  day  such
    48  person  becomes  a shareholder] and, in such case, the corporation shall
    49  be treated as a New York C corporation  subject  to  tax  under  article
    50  nine-A of this chapter.
    51    (2)  Treatment  of a federal S corporation as a New York C corporation
    52  under subsection (b) of this section shall cease to be effective if  the
    53  corporation  no  longer meets the requirements to be considered a quali-
    54  fied New York manufacturer under subparagraph (vi) of paragraph  (a)  of
    55  subdivision one of section two hundred ten of this chapter for the taxa-

        S. 4009                            75                            A. 3009
 
     1  ble  year,  and  in  such case the corporation shall be treated as a New
     2  York S corporation subject to subsection (a) of this section.
     3    (d)  [New  York]  S termination year. In the case of [a New York] an S
     4  termination year, the amount of any item of S corporation  income,  loss
     5  and  deduction  and reductions for taxes (as described in paragraphs two
     6  and three of subsection (f) of section thirteen hundred sixty-six of the
     7  internal revenue code) required to be taken account of under this  arti-
     8  cle  shall be adjusted in the same manner that the S corporation's items
     9  which are included in the shareholder's federal  adjusted  gross  income
    10  are adjusted under subsection (s) of section six hundred twelve.
    11    (e)   [Inadvertent   invalid  elections.  If  (1)  an  election  under
    12  subsection (a) of this section was not effective for  the  taxable  year
    13  for which made (determined without regard to paragraph two of subsection
    14  (b)  of  this  section)  by  reason  of  a failure to obtain shareholder
    15  consents,
    16    (2) the commissioner determines that the  circumstances  resulting  in
    17  such ineffectiveness were inadvertent,
    18    (3)  no  later than a reasonable period of time after discovery of the
    19  circumstances resulting in such ineffectiveness,  steps  were  taken  to
    20  acquire the required shareholder consents, and
    21    (4)  the  corporation,  and  each  person who was a shareholder in the
    22  corporation at any time during the period  specified  pursuant  to  this
    23  subsection,  agrees to make such adjustments (consistent with the treat-
    24  ment of the corporation as a New York S corporation) as may be  required
    25  by the commissioner with respect to such period,
    26    (5) then, notwithstanding the circumstances resulting in such ineffec-
    27  tiveness,  such corporation shall be treated as a New York S corporation
    28  during the period specified by the commissioner.] Qualified subchapter S
    29  subsidiaries ("QSSS"). If a New York S corporation has elected to  treat
    30  its  wholly  owned subsidiary as a qualified subchapter S subsidiary for
    31  federal income tax purposes under paragraph three of subsection  (b)  of
    32  section  thirteen  hundred  sixty-one of the internal revenue code, such
    33  election shall be applicable for New York state tax purposes, and
    34    (1) the assets, liabilities, income,  deductions,  property,  payroll,
    35  receipts, capital, credits, and all other tax attributes and elements of
    36  economic  activity  of the subsidiary shall be deemed to be those of the
    37  parent corporation,
    38    (2) transactions between the parent corporation  and  the  subsidiary,
    39  including the payment of interest and dividends, shall not be taken into
    40  account, and
    41    (3) general executive officers of the subsidiary shall be deemed to be
    42  general executive officers of the parent corporation.
    43    (f)  Validated federal elections. If [(1) an election under subsection
    44  (a) of this section was made for a taxable year or  years  of  a  corpo-
    45  ration,  which  years  occur  with  or  within the period for which] the
    46  federal S election of [such] an eligible S corporation  has  been  vali-
    47  dated  pursuant  to the provisions of subsection (f) of section thirteen
    48  hundred sixty-two of the internal revenue code, [and
    49    (2) the corporation, and each person who  was  a  shareholder  in  the
    50  corporation at any time during such taxable year or years agrees to make
    51  such  adjustments (consistent with the treatment of the corporation as a
    52  New York S corporation) as may be  required  by  the  commissioner  with
    53  respect to such year or years,
    54    (3)  then]  such  corporation  shall be treated as a New York S corpo-
    55  ration, subject to subsection (a) of this  section,  during  [such]  the
    56  year  or  years for which such election has been validated except if the

        S. 4009                            76                            A. 3009
 
     1  eligible S corporation is treated as a  New  York  C  corporation  under
     2  subsection (b) of this section.
     3    (g)  [Transitional  rule.  Any election made under this section (as in
     4  effect for  taxable  years  beginning  before  January  first,  nineteen
     5  hundred  eighty-three)  shall  be  treated  as  an  election  made under
     6  subsection (a) of this section.
     7    (h) Cross reference. For definitions relating to S  corporations,  see
     8  subdivision one-A of section two hundred eight of this chapter.
     9    (i) Mandated New York S corporation election.  (1) Notwithstanding the
    10  provisions in subsection (a) of this section, in the case of an eligible
    11  S  corporation  for  which  the  election  under  subsection (a) of this
    12  section is not in effect for the current taxable year, the  shareholders
    13  of  an  eligible  S  corporation  are  deemed to have made that election
    14  effective for the eligible S corporation's entire current taxable  year,
    15  if  the eligible S corporation's investment income for the current taxa-
    16  ble year is more than fifty percent of its federal gross income for such
    17  year. In determining whether an eligible S corporation is deemed to have
    18  made that election, the income of a qualified  subchapter  S  subsidiary
    19  owned  directly  or  indirectly  by  the eligible S corporation shall be
    20  included with the income of the eligible S corporation.
    21    (2) For the purposes of this subsection, the term "eligible  S  corpo-
    22  ration" has the same definition as in subsection (a) of this section.
    23    (3)  For the purposes of this subsection, the term "investment income"
    24  means the sum of an eligible S corporation's gross income from interest,
    25  dividends, royalties, annuities, rents and gains derived  from  dealings
    26  in  property,  including  the  corporation's  share of such items from a
    27  partnership, estate or trust, to the extent such items would be includa-
    28  ble in federal gross income for the taxable year.
    29    (4)] Rules related to change in status. (1) Net operating losses.  Any
    30  net  operating  loss carryforward that otherwise would have been allowed
    31  under subparagraph (ix) of paragraph (a) of subdivision one  of  section
    32  two  hundred  ten  of  this  chapter  for  a New York C corporation that
    33  becomes a New York S corporation shall be held in abeyance and be avail-
    34  able to such taxpayer if such taxpayer is treated as a New York C corpo-
    35  ration because its election to be a federal S corporation is  terminated
    36  or  by operation of subsection (b) of this section. However, the taxpay-
    37  er's years as a New York S corporation shall be counted for purposes  of
    38  computing any time period applicable to the allowance of any net operat-
    39  ing loss.
    40    (2)  Credit  carryforwards. Any carryforwards of credits allowed under
    41  section two hundred ten-B of this chapter for a New York  C  corporation
    42  that  becomes  a New York S corporation shall be held in abeyance and be
    43  available to such taxpayer if such taxpayer is treated as a New  York  C
    44  corporation because its election to be a federal S corporation is termi-
    45  nated  or  by  operation of subsection (b) of this section. However, the
    46  taxpayer's years as a New  York  S  corporation  shall  be  counted  for
    47  purposes of computing any time period applicable to the allowance of any
    48  credit carryforward.
    49    (3)  Estimated  tax  payments.  When  making  estimated  tax  payments
    50  required to be made under this chapter in  the  current  tax  year,  the
    51  eligible  S  corporation and its shareholders may rely on the eligible S
    52  corporation's filing status for the prior year. If the eligible S corpo-
    53  ration's filing status changes from the prior tax year  the  corporation
    54  or  the  shareholders, as the case may be, which made the payments shall
    55  be entitled to a refund of such estimated tax payments.  No additions to
    56  tax with respect to any required declarations or payments  of  estimated

        S. 4009                            77                            A. 3009
 
     1  tax  imposed  under  this chapter shall be imposed on the corporation or
     2  shareholders, whichever is the taxpayer for the current taxable year, if
     3  the corporation or the shareholders file such declarations and make such
     4  estimated  tax  payments  by January fifteenth of the following calendar
     5  year, regardless of whether the taxpayer's tax year is a calendar  or  a
     6  fiscal year.
     7    (h)  Excluded  corporation.   For purposes of this section an excluded
     8  corporation shall be as defined in paragraph (k) of subdivision nine  of
     9  section two hundred eight of this chapter.
    10    §  16.  Transition  rules.  Any  prior  net  operating loss conversion
    11  subtraction that otherwise would have been  allowed  under  subparagraph
    12  (viii) of paragraph (a) of subdivision one of section two hundred ten of
    13  the tax law for the taxable years beginning on or after January 1, 2024,
    14  to  any  taxpayer  that  was a New York C corporation for a taxable year
    15  beginning on or after January 1, 2023, and before January 1,  2024,  and
    16  that becomes a New York S corporation for a taxable year beginning on or
    17  after  January  1, 2024, as a result of the amendments made by this act,
    18  shall be held in abeyance and be available  to  such  taxpayer  if  such
    19  taxpayer  is treated as a New York C corporation because its election to
    20  be a federal S corporation is terminated or by operation  of  subsection
    21  (b)  of  section six hundred sixty of the  tax law. However, the taxpay-
    22  er's years as a New York S corporation shall be counted for purposes  of
    23  computing  the  twenty-year  time  period specified in subclause four of
    24  clause (B) of subparagraph (viii) of paragraph (a) of subdivision one of
    25  section two hundred ten of the tax law applicable to  the  allowance  of
    26  the prior net operating loss conversion subtraction.
    27    §  17. This act shall take effect immediately and shall apply to taxa-
    28  ble years beginning on or after January 1, 2024.
    29    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    30  sion, section or part of this act shall be  adjudged  by  any  court  of
    31  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    32  impair, or invalidate the remainder thereof, but shall  be  confined  in
    33  its  operation  to the clause, sentence, paragraph, subdivision, section
    34  or part thereof directly involved in the controversy in which such judg-
    35  ment shall have been rendered. It is hereby declared to be the intent of
    36  the legislature that this act would  have  been  enacted  even  if  such
    37  invalid provisions had not been included herein.
    38    §  3.  This  act shall take effect immediately provided, however, that
    39  the applicable effective date of Parts A through CC of this act shall be
    40  as specifically set forth in the last section of such Parts.
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