Bill Text: NY A07173 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to school district property tax relief; adopts a school income tax surcharge; provides for a restriction of the school district real property tax on residential property; and authorizes the imposition by school districts of a surcharge on the state income tax of district residents to finance public education.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Introduced - Dead) 2012-04-26 - held for consideration in education [A07173 Detail]
Download: New_York-2011-A07173-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7173
2011-2012 Regular Sessions
I N A S S E M B L Y
April 14, 2011
___________
Introduced by M. of A. GALEF -- read once and referred to the Committee
on Education
AN ACT in relation to enacting the school district property tax relief
act; to amend the education law, in relation to adopting a school
income tax surcharge (Part A); and to amend the real property tax law
and the tax law, in relation to providing for the restriction of the
school district real property tax on residential property and to
authorize the imposition by school districts of a surcharge on the
state income tax of district residents to finance public education
(Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act shall be known and may be cited as "the school
2 district property tax relief act".
3 S 2. This act enacts into law major components of legislation which
4 are necessary to implement the school district property tax relief act.
5 Each component is wholly contained within a Part identified as Parts A
6 and B. The effective date for each particular provision contained with-
7 in such Part is set forth in the last section of such Part. Any
8 provision in any section contained within a Part, including the effec-
9 tive date of the Part, which makes reference to a section "of this act",
10 when used in connection with that particular component, shall be deemed
11 to mean and refer to the corresponding section of the Part in which it
12 is found. Section four of this act sets forth the general effective
13 date of this act.
14 PART A
15 Section 1. Legislative findings and declarations. The legislature
16 finds that the property tax has long been relied upon by school
17 districts as a principal method to finance public education. The proper-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10700-02-1
A. 7173 2
1 ty tax, however, is regressive and fails to account for a taxpayer's
2 ability to pay, and falls hardest on those with reduced or fixed
3 incomes. Therefore, to relieve the mounting burden on residential prop-
4 erty taxpayers and to provide local school districts with greater flexi-
5 bility to finance public education, while assuring the continued deliv-
6 ery of quality educational services, the legislature finds that school
7 districts shall be authorized, at local option, to impose a school
8 district income tax surcharge on the state personal income tax of
9 district residents to replace a portion of the school district property
10 tax.
11 S 2. The education law is amended by adding a new section 1501-d to
12 read as follows:
13 S 1501-D. ADOPTION OF SCHOOL DISTRICT INCOME TAX SURCHARGE. 1. THE
14 BOARD OF TRUSTEES OR BOARD OF EDUCATION OF ANY SCHOOL DISTRICT OTHER
15 THAN A SCHOOL DISTRICT OF A CITY SUBJECT TO THE PROVISIONS OF ARTICLE
16 FIFTY-TWO OF THIS CHAPTER MAY ADOPT, BY RESOLUTION, A SCHOOL DISTRICT
17 INCOME TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
18 TY-C OF THE TAX LAW, TO FINANCE PUBLIC EDUCATION, IN ACCORDANCE WITH A
19 PROPOSITION SUBMITTED TO AND APPROVED BY ELECTORS OF THE SCHOOL DISTRICT
20 AS AUTHORIZED PURSUANT TO THIS SECTION.
21 2. UPON A MAJORITY VOTE OF THE BOARD OF TRUSTEES OR BOARD OF EDUCATION
22 OF A SCHOOL DISTRICT OR UPON THE FILING OF A PETITION WITH THE CHIEF
23 EXECUTIVE OFFICER OF THE SCHOOL DISTRICT, A STUDY COMMISSION SHALL BE
24 CREATED. A PETITION TO CREATE A STUDY COMMISSION WITHIN A SCHOOL
25 DISTRICT SHALL BE SUFFICIENT IF IT IS SIGNED AND ACKNOWLEDGED BY QUALI-
26 FIED ELECTORS OF THE SCHOOL DISTRICT, IN NUMBER EQUAL TO FIVE PER CENTUM
27 OF THE TOTAL NUMBER OF ELECTORS WITHIN THE SCHOOL DISTRICT QUALIFIED TO
28 VOTE IN THE GENERAL ELECTION IMMEDIATELY PRECEDING FILING OF THE PETI-
29 TION.
30 3.(A) THE STUDY COMMISSION FORMED PURSUANT TO THIS SECTION SHALL PRES-
31 ENT A WRITTEN REPORT TO THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION
32 SETTING FORTH EITHER A SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN OR A
33 WRITTEN RECOMMENDATION THAT NO PLAN BE ADOPTED. SUCH RECOMMENDATION
34 SHALL INCLUDE THE REASONS FOR REJECTING A SURCHARGE PLAN. THE STUDY
35 COMMISSION SHALL FILE THE REPORT WITH THE BOARD OF TRUSTEES OR THE BOARD
36 OF EDUCATION ON OR BEFORE ONE YEAR FROM THE DATE OF PRESENTATION OF THE
37 PETITION TO THE CHIEF EXECUTIVE OFFICER OF THE SCHOOL DISTRICT OR VOTE
38 OF THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION DIRECTING THE FORMA-
39 TION OF THE STUDY COMMISSION. IF THE COMMISSION FAILS TO MAKE A RECOM-
40 MENDATION WITHIN THE ALLOTTED TIME, THE BOARD SHALL EXTEND THE COMMIS-
41 SION OR ASSUME ITS RESPONSIBILITIES.
42 (B) THE COMMISSION SHALL BE COMPOSED OF AT LEAST NINE MEMBERS
43 APPOINTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION. MEMBER-
44 SHIP SHALL BE COMPRISED OF REPRESENTATIVES OF PROPERTY OWNERS RESIDING
45 IN THE SCHOOL DISTRICT, COMMERCIAL PROPERTY OWNERS WHOSE PRINCIPAL PLACE
46 OF BUSINESS IS LOCATED WITHIN THE SCHOOL DISTRICT, AND THE BOARD OF
47 TRUSTEES OR BOARD OF EDUCATION, BUT SHALL NOT INCLUDE MORE THAN ONE
48 TRUSTEE OF A BOARD OF EDUCATION OR MEMBER OF A BOARD OF EDUCATION.
49 (C) MEMBERS OF A STUDY COMMISSION ESTABLISHED PURSUANT TO THIS SECTION
50 SHALL FILE OATHS OF OFFICE WITH THE APPOINTING AUTHORITY. THEIR TERMS
51 SHALL EXTEND TO AND EXPIRE UPON SUBMISSION OF THE REPORT TO THE BOARD OF
52 TRUSTEES OR THE BOARD OF EDUCATION AS PROVIDED IN THIS SECTION. MEMBERS
53 SHALL RECEIVE NO COMPENSATION FOR MEMBERSHIP ON THE STUDY COMMISSION.
54 COSTS AND EXPENSES OF THE STUDY COMMISSION IF APPROVED BY THE BOARD
55 SHALL BE PAID BY THE SCHOOL DISTRICT. SUCH COMMISSION SHALL ORGANIZE AND
56 FORM SUCH SUBCOMMITTEES, MAY ESTABLISH MEETINGS AND HOLD INFORMATIONAL
A. 7173 3
1 HEARINGS AS IT DEEMS DESIRABLE AND SHALL CONSULT WITH THE DESIGNEES OF
2 THE DIRECTOR OF THE OFFICE OF REAL PROPERTY TAX SERVICES AND THE COMMIS-
3 SIONER OF TAXATION AND FINANCE.
4 (D) A STUDY COMMISSION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE
5 SCHOOL DISTRICT AT LEAST SIXTY DAYS PRIOR TO SUBMISSION OF ITS REPORT TO
6 THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION, AT WHICH THE PUBLIC
7 SHALL HAVE AN OPPORTUNITY TO BE HEARD. THE STUDY COMMISSION SHALL
8 PUBLISH NOTICE OF THE PUBLIC HEARING ON ANY OFFICIAL WEBSITE AND IN AT
9 LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT
10 LEAST SEVEN AND NO GREATER THAN TEN DAYS PRIOR TO THE DATE OF SUCH
11 PUBLIC HEARING. SUCH NOTICE SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH
12 HEARING SHALL BE HELD.
13 4. A STUDY COMMISSION RECOMMENDING A SCHOOL DISTRICT INCOME TAX
14 SURCHARGE SHALL ADOPT A PLAN WHICH DESCRIBES THE RATE OF THE SURCHARGE
15 TO BE IMPOSED, THE MANNER IN WHICH REAL PROPERTY TAXES FOR SCHOOL
16 DISTRICT PURPOSES WILL BE RESTRICTED IN ACCORDANCE WITH SECTION THIRTEEN
17 HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, AND ANY SUCH OTHER MATTERS
18 AS MAY BE DESIRABLE OR NECESSARY TO DESCRIBE THE INCOME TAX SURCHARGE TO
19 BE IMPOSED OR ITS ADMINISTRATION. SUCH COMMISSION PLAN SHALL DESCRIBE
20 RESTRICTIONS, IF ANY, UPON THE AUTHORITY OF A SCHOOL DISTRICT, ACTING
21 THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION, TO MODIFY THE FIRST
22 YEAR RATE OF THE INCOME TAX SURCHARGE IN SUBSEQUENT YEARS. THE
23 RESTRICTIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:
24 (A) REQUIRING VOTER APPROVAL FOR ANY CHANGE IN THE SURCHARGE RATE;
25 (B) LIMITING THE AMOUNT OF A RATE CHANGE IN ONE YEAR OR OVER A NUMBER
26 OF YEARS;
27 (C) REQUIRING THE COMMISSION TO BE RECONVENED TO STUDY AND ADOPT A
28 RATE CHANGE;
29 (D) REQUIRING A SUPERMAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF
30 EDUCATION TO APPROVE A RATE CHANGE; OR
31 (E) SOME COMBINATION OF THE ABOVE.
32 5. (A) UPON THE STUDY COMMISSION'S PRESENTATION OF A PLAN, OR RECOM-
33 MENDATION NOT TO ADOPT A PLAN, THE BOARD OF TRUSTEES OR THE BOARD OF
34 EDUCATION SHALL DECIDE WHETHER TO ACCEPT OR REJECT THE PLAN OR RECOMMEN-
35 DATION OF THE STUDY COMMISSION. THE BOARD OF TRUSTEES OR THE BOARD OF
36 EDUCATION SHALL TAKE SUCH ACTION ON THE STUDY COMMISSION'S RECOMMENDA-
37 TION WITHIN ONE HUNDRED TWENTY DAYS OF ITS PRESENTMENT TO THE BOARD OF
38 TRUSTEES OR THE BOARD OF EDUCATION. THE BOARD OF TRUSTEES OR THE BOARD
39 OF EDUCATION SHALL HOLD AT LEAST ONE PUBLIC HEARING IN THE SCHOOL
40 DISTRICT AT LEAST THIRTY DAYS PRIOR TO TAKING ACTION ON THE STUDY
41 COMMISSION'S RECOMMENDATION, AT WHICH THE PUBLIC SHALL HAVE AN OPPORTU-
42 NITY TO BE HEARD. THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL
43 PUBLISH NOTICE OF THE PUBLIC HEARING IN AT LEAST ONE NEWSPAPER OF GENER-
44 AL CIRCULATION WITHIN THE SCHOOL DISTRICT, AT LEAST SEVEN AND NO GREATER
45 THAN TEN DAYS, PRIOR TO THE DATE OF SUCH PUBLIC HEARING. SUCH NOTICE
46 SHALL SPECIFY THE DAY, HOUR AND PLACE SUCH HEARING SHALL BE HELD. IF THE
47 PLAN IS ACCEPTED BY A MAJORITY OF THE BOARD OF TRUSTEES OR THE BOARD OF
48 EDUCATION, A PROPOSITION SHALL BE PREPARED BY THE BOARD OF TRUSTEES OR
49 THE BOARD OF EDUCATION AND SUBMITTED TO THE VOTERS AT THE NEXT REGULAR
50 SCHOOL ELECTION.
51 (B) UPON ACCEPTANCE OF THE PLAN AND FORMULATION OF THE PROPOSITION THE
52 BOARD OF TRUSTEES OR THE BOARD OF EDUCATION SHALL PUBLISH THE FULL TEXT
53 OF THE PROPOSITION AND THE SCHOOL DISTRICT TAX SURCHARGE PLAN IN AT
54 LEAST ONE NEWSPAPER OF GENERAL CIRCULATION WITHIN THE SCHOOL DISTRICT AT
55 LEAST THIRTY DAYS PRIOR TO THE DATE OF ELECTION AT WHICH THE SCHOOL
56 DISTRICT VOTERS SHALL VOTE ON THE PLAN AND PROPOSITION. COPIES OF THE
A. 7173 4
1 PLAN AND PROPOSITION SHALL BE MADE AVAILABLE TO THE PUBLIC AT THE
2 OFFICES OF THE SCHOOL DISTRICT AT ANY TIME DURING REGULAR BUSINESS HOURS
3 AND ON ANY OFFICIAL WEBSITE MAINTAINED BY THE SCHOOL DISTRICT.
4 6. (A) A PROPOSITION FOR THE IMPOSITION OF A SCHOOL DISTRICT INCOME
5 TAX SURCHARGE SHALL STATE "SHALL THE (NAME OF SCHOOL DISTRICT) BE
6 EMPOWERED TO ADOPT A SCHOOL DISTRICT INCOME TAX SURCHARGE PURSUANT TO
7 THE SCHOOL DISTRICT INCOME TAX SURCHARGE PLAN?" THE PROPOSITION SHALL
8 ALSO CONTAIN AN ABSTRACT OF SUCH PLAN WHICH SHALL (I) IDENTIFY IN FULL
9 THE OPTION RESTRICTING THE SCHOOL DISTRICT LEVY OF REAL PROPERTY TAX
10 CHOSEN PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
11 TAX LAW, AND (II) CONCISELY STATE IN PLAIN LANGUAGE THE PURPOSE AND
12 EFFECT OF ADOPTING SUCH PLAN INCLUDING THE GENERAL EFFECT ON RESIDENTIAL
13 REAL PROPERTY TAXPAYERS, THE INCOME TAX SURCHARGE RATE EXPECTED TO BE
14 IMPOSED, AND RESTRICTIONS, IF ANY, APPLICABLE TO CHANGES IN SUCH RATE.
15 (B) UPON APPROVAL OF A MAJORITY OF THE QUALIFIED ELECTORS WITHIN A
16 SCHOOL DISTRICT, THE PROPOSITION SHALL BE APPROVED. UPON SUCH APPROVAL A
17 CERTIFICATE OF SUCH ELECTION SHALL BE FILED WITH THE CLERK OF THE SCHOOL
18 DISTRICT NAMED IN THE PROPOSITION, THE COMMISSIONER AND THE COMMISSIONER
19 OF TAXATION AND FINANCE.
20 7. THE LEVY OF REAL PROPERTY TAXES BY ANY SCHOOL DISTRICT TO FINANCE
21 EDUCATION WHICH ADOPTS A SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE
22 SUBJECT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THE REAL
23 PROPERTY TAX LAW.
24 8. IF ADOPTED BY THE BOARD OF TRUSTEES OR THE BOARD OF EDUCATION ON OR
25 BEFORE MARCH THIRTY-FIRST IN ANY YEAR, WITH NOTICE TO THE COMMISSIONER
26 OF TAXATION AND FINANCE, AS PROVIDED IN SECTION THIRTEEN HUNDRED SIXTY-
27 ONE OF THE TAX LAW ON OR BEFORE SUCH DATE, SUCH SCHOOL DISTRICT INCOME
28 TAX SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER THE FIRST DAY
29 OF JANUARY NEXT SUCCEEDING ITS ADOPTION. IF ADOPTED AFTER MARCH THIRTY-
30 FIRST IN ANY YEAR, OR WITH NOTICE AFTER SUCH DATE, SUCH LOCAL INCOME TAX
31 SURCHARGE PLAN SHALL BECOME EFFECTIVE FROM AND AFTER ONE YEAR FROM THE
32 FIRST DAY OF JANUARY NEXT SUCCEEDING ITS ADOPTION.
33 S 3. This act shall take effect immediately.
34 PART B
35 Section 1. Section 1306 of the real property tax law is amended by
36 adding a new subdivision 6 to read as follows:
37 6. THE LEVY OF TAXES BY ANY SCHOOL DISTRICT WHICH IMPOSES A PERSONAL
38 INCOME TAX PURSUANT TO ARTICLE THIRTY-C OF THE TAX LAW SHALL BE SUBJECT
39 TO THE RESTRICTIONS OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE.
40 S 2. The real property tax law is amended by adding a new section 1307
41 to read as follows:
42 S 1307. REDUCTION IN THE LEVY OF REAL PROPERTY TAXES. 1. WHERE A
43 SCHOOL DISTRICT ELECTS TO IMPOSE A SCHOOL DISTRICT INCOME TAX SURCHARGE
44 IN ACCORDANCE WITH ARTICLE THIRTY-C OF THE TAX LAW, THE AMOUNT TO BE
45 RAISED BY LEVY AGAINST RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT
46 SHALL BE REDUCED BY THE DOLLAR AMOUNT RAISED PURSUANT TO SUCH SURCHARGE
47 FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE YEAR OF COMMENCEMENT OF
48 THE SCHOOL FISCAL YEAR. FOR THE PURPOSES OF THIS SECTION THE TERM "RESI-
49 DENTIAL REAL PROPERTY" SHALL BE LIMITED TO PRIMARY RESIDENCES AS DEFINED
50 IN SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP-
51 TER.
52 2. THE AMOUNT OF REDUCTION FOR EACH PARCEL OF RESIDENTIAL REAL PROPER-
53 TY SHALL BE STATED ON THE SCHOOL TAX BILL. THE SCHOOL TAX BILL ALSO
54 SHALL SHOW THE AMOUNT OF THE TOTAL LEVY, THE AMOUNT TO BE RAISED BY THE
A. 7173 5
1 RESIDENTIAL PROPERTY IN THE SCHOOL DISTRICT, THE AMOUNT OF SURCHARGE
2 RAISED REDUCING SUCH PORTION OF THE LEVY AND THE AMOUNT TO BE RAISED BY
3 THE NON-RESIDENTIAL PROPERTY IN THE DISTRICT. COMPARISON TO THE PRECED-
4 ING YEAR SHALL ALSO BE SHOWN IN ADDITION TO SUCH OTHER INFORMATION AS
5 THE COMMISSIONER OF EDUCATION SHALL SPECIFY. PROPERTY OWNERS NOT
6 SUBJECT TO THE INCOME TAX SURCHARGE IMPOSED BY ARTICLE THIRTY-C OF THE
7 TAX LAW SHALL NOT RECEIVE A REDUCTION IN THE REAL PROPERTY TAXES PURSU-
8 ANT TO THIS SECTION.
9 S 3. Subdivision 1 of section 202 of the real property tax law is
10 amended by adding a new paragraph (q) to read as follows:
11 (Q) DIRECT THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY
12 SERVICES TO DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A
13 STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN
14 HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS
15 OF ARTICLE THIRTY-C OF THE TAX LAW AND SECTION THIRTEEN HUNDRED SEVEN OF
16 THIS CHAPTER.
17 S 4. Paragraph 1 of subdivision (b) of section 9 of the tax law, as
18 amended by chapter 166 of the laws of 1991, is amended to read as
19 follows:
20 (1) Subject to the requirements contained in subdivisions (c) and (d)
21 of this section, the commissioner shall require by regulation that any
22 payment of tax made by a taxpayer who is required, for either of the
23 semi-annual periods ending June thirtieth or December thirty-first, to
24 deduct and withhold an aggregate of thirty-five thousand dollars or more
25 of withholding taxes pursuant to part V of article twenty-two of this
26 chapter, or pursuant to an equivalent provision enacted under the
27 authority of article thirty, thirty-A [or], thirty-B OR THIRTY-C of this
28 chapter[, or article two-E of the general city law,] shall be made, on
29 or before the date prescribed by law, by electronic funds transfer to a
30 bank, banking house or trust company designated by the commissioner. The
31 commissioner shall designate only such banks, banking houses or trust
32 companies as are or shall be designated by the comptroller as deposito-
33 ries pursuant to section one hundred seventy-one-a of this chapter, as
34 added by chapter sixty-nine of the laws of nineteen hundred seventy-
35 eight. Notwithstanding any provision of law to the contrary, any such
36 payment shall be deemed to be made on the date the payment is received
37 by the designated depository of the department; provided, however, that
38 at the election of a taxpayer subject to the provisions of this subdivi-
39 sion, mailing by the taxpayer of the applicable withholding tax return
40 and a certified check for the amount of the tax liability on or before
41 the second business day prior to the applicable due date otherwise
42 prescribed by law shall fulfill the requirements of this section and
43 shall be deemed to be timely payment of such tax liability and timely
44 filing of such return.
45 S 5. Subdivisions eighteenth-b and eighteenth-c of section 171 of the
46 tax law, as added by chapter 770 of the laws of 1992, are amended to
47 read as follows:
48 Eighteenth-b. Where the filing requirement arises under article twen-
49 ty-two of this chapter or under a law enacted pursuant to the authority
50 of article thirty [or], thirty-A OR THIRTY-C of this chapter, have
51 authority to require a husband and wife whose federal income tax liabil-
52 ities are determined on a joint federal return and who have not filed a
53 joint New York income tax return to file separate income tax returns, in
54 which case their income tax liabilities shall be separate. Such authori-
55 ty shall be exercised only where one of such persons demonstrates, to
56 the satisfaction of the commissioner, that (a) the address or where-
A. 7173 6
1 abouts of his or her spouse is unknown to him or her, (b) reasonable
2 efforts have been made by him or her to locate such spouse, and (c) good
3 cause existed for the failure to file a joint New York income tax
4 return.
5 Eighteenth-c. Where the filing requirement arises under article twen-
6 ty-two of this chapter or under a law enacted pursuant to the authority
7 of article thirty [or], thirty-A OR THIRTY-C of this chapter, have
8 authority to require a husband and wife whose federal income tax liabil-
9 ities are determined on a joint federal return and who have not filed a
10 joint New York income tax return to file separate income tax returns, in
11 which case their income tax liabilities shall be separate. Such authori-
12 ty shall be exercised only where one of such persons demonstrates, to
13 the satisfaction of the commissioner, that (a) his or her spouse has
14 refused to sign a joint New York income tax return, (b) reasonable
15 efforts have been made by him or her to have such spouse sign a joint
16 New York income tax return, (c) there exists objective evidence of
17 alienation of such person from his or her spouse such as a judicial
18 order of protection, legal separation under a decree of divorce or sepa-
19 rate maintenance, separation under a written separation agreement or
20 judicial decree of separation, living apart at all times during the
21 twelve months immediately preceding the application for exercise of
22 authority under this provision, the commencement of an action for
23 divorce, or the commencement of proceedings in family court which
24 evidence such alienation, and (d) good cause existed for the failure to
25 file a joint New York income tax return.
26 S 6. Subdivision 1 of section 171-a of the tax law, as amended by
27 section 1 of part R of chapter 60 of the laws of 2004, is amended to
28 read as follows:
29 1. All taxes, interest, penalties and fees collected or received by
30 the commissioner or the commissioner's duly authorized agent under arti-
31 cles nine (except section one hundred eighty-two-a thereof and except as
32 otherwise provided in section two hundred five thereof), nine-A,
33 twelve-A (except as otherwise provided in section two hundred eighty-
34 four-d thereof), thirteen, thirteen-A (except as otherwise provided in
35 section three hundred twelve thereof), eighteen, nineteen, twenty
36 (except as otherwise provided in section four hundred eighty-two there-
37 of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
38 (except as otherwise provided in section eleven hundred two or eleven
39 hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
40 provided in section fourteen hundred twenty-one thereof), thirty-two,
41 thirty-three and thirty-three-A of this chapter shall be deposited daily
42 in one account with such responsible banks, banking houses or trust
43 companies as may be designated by the comptroller, to the credit of the
44 comptroller. Such an account may be established in one or more of such
45 depositories. Such deposits shall be kept separate and apart from all
46 other money in the possession of the comptroller. The comptroller shall
47 require adequate security from all such depositories. Of the total
48 revenue collected or received under such articles of this chapter, the
49 comptroller shall retain in the comptroller's hands such amount as the
50 commissioner may determine to be necessary for refunds or reimbursements
51 under such articles of this chapter [and article ten thereof] out of
52 which amount the comptroller shall pay any refunds or reimbursements to
53 which taxpayers shall be entitled under the provisions of such articles
54 of this chapter [and article ten thereof]. The commissioner and the
55 comptroller shall maintain a system of accounts showing the amount of
56 revenue collected or received from each of the taxes imposed by such
A. 7173 7
1 articles. The comptroller, after reserving the amount to pay such
2 refunds or reimbursements, shall, on or before the tenth day of each
3 month, pay into the state treasury to the credit of the general fund all
4 revenue deposited under this section during the preceding calendar month
5 and remaining to the comptroller's credit on the last day of such
6 preceding month, (i) except that the comptroller shall pay to the state
7 department of [social services] FAMILY ASSISTANCE that amount of over-
8 payments of tax imposed by article twenty-two of this chapter and the
9 interest on such amount which is certified to the comptroller by the
10 commissioner as the amount to be credited against past-due support
11 pursuant to subdivision six of section one hundred seventy-one-c of this
12 chapter, (ii) and except that the comptroller shall pay to the New York
13 state higher education services corporation and the state university of
14 New York or the city university of New York respectively that amount of
15 overpayments of tax imposed by article twenty-two of this chapter and
16 the interest on such amount which is certified to the comptroller by the
17 commissioner as the amount to be credited against the amount of defaults
18 in repayment of guaranteed student loans and state university loans or
19 city university loans pursuant to subdivision five of section one
20 hundred seventy-one-d and subdivision six of section one hundred seven-
21 ty-one-e of this chapter, (iii) and except further that, notwithstanding
22 any law, the comptroller shall credit to the revenue arrearage account,
23 pursuant to section ninety-one-a of the state finance law, that amount
24 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
25 ty, thirty-A, thirty-B, THIRTY-C, thirty-two or thirty-three of this
26 chapter, and any interest thereon, which is certified to the comptroller
27 by the commissioner as the amount to be credited against a past-due
28 legally enforceable debt owed to a state agency pursuant to paragraph
29 (a) of subdivision six of section one hundred seventy-one-f of this
30 article, provided, however, [he] THE COMMISSIONER shall credit to the
31 special offset fiduciary account, pursuant to section ninety-one-c of
32 the state finance law, any such amount creditable as a liability as set
33 forth in paragraph (b) of subdivision six of section one hundred seven-
34 ty-one-f of this article, (iv) and except further that the comptroller
35 shall pay to the city of New York that amount of overpayment of tax
36 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B,
37 THIRTY-C, thirty-two, or thirty-three of this chapter and any interest
38 thereon that is certified to the comptroller by the commissioner as the
39 amount to be credited against city of New York tax warrant judgment debt
40 pursuant to section one hundred seventy-one-l of this article, (v) and
41 except further that the comptroller shall pay to a non-obligated spouse
42 that amount of overpayment of tax imposed by article twenty-two of this
43 chapter and the interest on such amount which has been credited pursuant
44 to section one hundred seventy-one-c, one hundred seventy-one-d, one
45 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven-
46 ty-one-l of this article and which is certified to the comptroller by
47 the commissioner as the amount due such non-obligated spouse pursuant to
48 paragraph six of subsection (b) of section six hundred fifty-one of this
49 chapter; and (vi) the comptroller shall deduct a like amount which the
50 comptroller shall pay into the treasury to the credit of the general
51 fund from amounts subsequently payable to the department of social
52 services, the state university of New York, the city university of New
53 York, or the higher education services corporation, or the revenue
54 arrearage account or special offset fiduciary account pursuant to
55 section ninety-one-a or ninety-one-c of the state finance law, as the
56 case may be, whichever had been credited the amount originally withheld
A. 7173 8
1 from such overpayment, and (vii) with respect to amounts originally
2 withheld from such overpayment pursuant to section one hundred seventy-
3 one-l of this article and paid to the city of New York, the comptroller
4 shall collect a like amount from the city of New York.
5 S 7. Subdivision 1 of section 171-c of the tax law, as amended by
6 chapter 601 of the laws of 2007, is amended to read as follows:
7 (1) The commissioner, on behalf of the department, shall enter into a
8 written agreement with the commissioner of the office of temporary and
9 disability assistance, on behalf of the state office of temporary and
10 disability assistance, which shall set forth the procedures for credit-
11 ing any overpayment by an individual, estate or trust of income tax
12 imposed by article twenty-two of this chapter, city personal income tax
13 on residents imposed pursuant to the authority of article thirty of this
14 chapter, city income tax surcharge on residents imposed pursuant to the
15 authority of article thirty-A of this chapter and city earnings tax on
16 nonresidents imposed pursuant to the authority of article thirty-B of
17 this chapter AND SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED PURSUANT
18 TO THE AUTHORITY OF ARTICLE THIRTY-C OF THIS CHAPTER and the interest on
19 such overpayments against past-due support owed by such individual,
20 estate or trust of which the commissioner has been notified by the
21 commissioner of the office of temporary and disability assistance pursu-
22 ant to the provisions of such agreement.
23 S 8. Subdivision 1 of section 171-d of the tax law, as amended by
24 section 2 of part M of chapter 57 of the laws of 2008, is amended to
25 read as follows:
26 (1) The commissioner, on behalf of the [tax commission] DEPARTMENT,
27 shall enter into a written agreement with the president of the New York
28 state higher education services corporation, on behalf of such corpo-
29 ration, which shall set forth the procedures for crediting any overpay-
30 ment by an individual, estate or trust of income tax imposed by article
31 twenty-two of this chapter, city personal income tax on residents
32 imposed pursuant to the authority of article thirty of this chapter,
33 city income tax surcharge on residents imposed pursuant to the authority
34 of article thirty-A of this chapter, [city earnings tax on nonresidents
35 imposed pursuant to the authority of former article two-E of the general
36 city law and] city earnings tax on nonresidents imposed pursuant to the
37 authority of article thirty-B of this chapter, SCHOOL DISTRICT INCOME
38 TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF
39 THIS CHAPTER and the interest on such overpayments against the amount of
40 any default in repayment of any governmental education loan owed by such
41 individual, estate or trust of which the commissioner has been notified
42 by the president of the New York state higher education services corpo-
43 ration pursuant to the provisions of such agreement. For purposes of
44 this section, "governmental education loan" shall mean any education
45 loan debt, including judgments, owed to the federal or New York state
46 government that is being collected by the New York state higher educa-
47 tion services corporation.
48 S 9. Subdivision 2 of section 171-e of the tax law, as separately
49 amended by chapters 222 and 638 of the laws of 1985, is amended to read
50 as follows:
51 (2) The commissioner [of taxation and finance], on behalf of the [tax
52 commission] DEPARTMENT, shall enter into a written agreement with the
53 state university of New York or the city university of New York respec-
54 tively which shall set forth the procedures for crediting any overpay-
55 ment by an individual, estate or trust of income tax imposed by article
56 twenty-two of this chapter, city personal income tax on residents
A. 7173 9
1 imposed pursuant to the authority of article thirty of this chapter,
2 city income tax surcharge on residents imposed pursuant to the authority
3 of article thirty-A of this chapter, [city earnings tax on nonresidents
4 imposed pursuant to the authority of article two-E of the general city
5 law and] city earnings tax on nonresidents imposed pursuant to the
6 authority of article thirty-B of this chapter AND SCHOOL DISTRICT INCOME
7 TAX SURCHARGE IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE THIRTY-C OF
8 THIS CHAPTER and the interest on such overpayments against the amount of
9 any default in repayment of a state university loan or city university
10 loan owed by such individual, estate or trust of which the commissioner
11 [of taxation and finance] has been notified by the state university of
12 New York or the city university of New York respectively pursuant to the
13 provisions of such agreement.
14 S 10. Subdivisions 1 and 2 of section 171-f of the tax law, subdivi-
15 sion 1 as amended by chapter 81 of the laws of 1995 and subdivision 2 as
16 added by chapter 55 of the laws of 1992, are amended to read as follows:
17 (1) For the purposes of this section, (a) "state agency" shall mean
18 any state department, board, bureau, division, commission, committee,
19 public authority, public benefit corporation, council, office, or other
20 governmental entity performing a governmental or proprietary function
21 for the state, or, solely for purposes of this section, a local social
22 services district; (b) "taxpayer" shall mean a corporation, association,
23 company, partnership, estate, trust, liquidator, fiduciary or other
24 entity or individual who or which is liable for any tax or other imposi-
25 tion imposed by or pursuant to article nine, nine-A, twenty-two, thirty,
26 thirty-A, thirty-B, THIRTY-C, thirty-two, or thirty-three of this chap-
27 ter [or article two-E of the general city law], which tax or other impo-
28 sition is administered by the commissioner of taxation and finance, or
29 who or which is under a duty to perform an act under or pursuant to such
30 tax or imposition, excluding a state agency, a municipal corporation or
31 a district corporation; and (c) "overpayment" shall mean an overpayment
32 which has been requested or determined to be refunded, a refund or a
33 reimbursement, of a tax or other imposition imposed by or pursuant to
34 article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B, THIRTY-C,
35 thirty-two, or thirty-three of this chapter or FORMER article two-E of
36 the general city law, which is administered by the commissioner [of
37 taxation and finance].
38 (2) The commissioner [of taxation and finance], upon agreement with
39 the state comptroller and acting as an agent for the state comptroller,
40 shall set forth the procedures for crediting any overpayment by a
41 taxpayer of any tax or other imposition imposed by or authorized to be
42 imposed pursuant to article nine, nine-A, twenty-two, thirty, thirty-A,
43 thirty-B, THIRTY-C, thirty-two, or thirty-three of this chapter [or
44 article two-E of the general city law], which is administered by the
45 commissioner [of taxation and finance], and the interest on any such
46 overpayments, against the amount of a past-due legally enforceable debt
47 owed by such taxpayer to a state agency. An implementation plan shall be
48 developed by the division of the budget and the department of taxation
49 and finance which shall provide, but not be limited to, guidance with
50 respect to coordination of debt collection pursuant to this section and
51 subdivision twenty-seventh of section one hundred seventy-one of this
52 article. This section shall not be deemed to abrogate or limit in any
53 way the powers and authority of the state comptroller to set off debts
54 owed the state against payments from the state, under the constitution
55 of the state or any other law.
A. 7173 10
1 S 11. Paragraph 1 of subsection (c) of section 615 of the tax law, as
2 amended by section 1 of part CC of chapter 57 of the laws of 2010, is
3 amended to read as follows:
4 (1) state and local general sales taxes as defined in subsection (b)
5 of section one hundred sixty-four of the internal revenue code, to the
6 extent included in federal itemized deductions or income taxes imposed
7 by this state or any other taxing jurisdiction, except (A) city earnings
8 taxes on nonresidents that are imposed upon and paid by taxpayers for
9 taxable years beginning after December thirty-first, nineteen hundred
10 seventy and before January first, two thousand, pursuant to the authori-
11 ty of former section twenty-five-m of the general city law, to the
12 extent that the amount of such tax exceeds the tax computed as if the
13 rates were one-fourth of one percent of wages subject to tax and three-
14 eighths of one percent of net earnings from self-employment subject to
15 tax, AND (B) ANY SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED PURSUANT
16 TO THE AUTHORITY OF ARTICLE THIRTY-ONE-C OF THIS CHAPTER;
17 S 12. The tax law is amended by adding a new article 30-C to read as
18 follows:
19 ARTICLE 30-C
20 SCHOOL DISTRICT INCOME TAX SURCHARGE
21 SECTION 1360. SHORT TITLE.
22 1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE.
23 1362. MODEL RESOLUTION.
24 1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX
25 SURCHARGE.
26 1364. DEPOSIT AND DISPOSITION OF REVENUES.
27 S 1360. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
28 THE "SCHOOL DISTRICT INCOME TAX SURCHARGE".
29 S 1361. AUTHORITY TO IMPOSE SCHOOL DISTRICT INCOME TAX SURCHARGE. (A)
30 GENERAL. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BUT
31 SUBJECT TO THE LIMITATIONS AND CONDITIONS SET FORTH IN THIS ARTICLE, ANY
32 SCHOOL DISTRICT IN THIS STATE (OTHER THAN A SCHOOL DISTRICT OF A CITY
33 SUBJECT TO THE PROVISIONS OF ARTICLE FIFTY-TWO OF THE EDUCATION LAW),
34 ACTING THROUGH ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION IN ACCORDANCE
35 WITH SECTION FIFTEEN HUNDRED ONE-D OF THE EDUCATION LAW, IS HEREBY
36 AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND RESOLUTIONS IMPOSING IN ANY
37 SUCH SCHOOL DISTRICT, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND
38 TEN, A SCHOOL DISTRICT INCOME TAX SURCHARGE ON THE NET STATE TAX (AS
39 DEFINED IN SECTION THREE OF THE MODEL SCHOOL DISTRICT INCOME TAX
40 SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS
41 ARTICLE) OF RESIDENTS OF THE SCHOOL DISTRICT, AT A RATE PERMISSIBLE
42 UNDER SUBSECTION (C) OF THIS SECTION. SUCH SCHOOL DISTRICT INCOME TAX
43 SURCHARGE SHALL BE ADMINISTERED, COLLECTED AND DISTRIBUTED BY THE
44 COMMISSIONER AS PROVIDED FOR IN THIS ARTICLE.
45 (B) FORM OF ADOPTION OF RESOLUTION. ADOPTION OF AN INCOME TAX
46 SURCHARGE PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY ADOPTION
47 OF A RESOLUTION, SUBSTANTIALLY SIMILAR IN TERMS TO THE MODEL RESOLUTION
48 SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE, SETTING
49 FORTH ONE OF THE RATES OF INCOME TAX SURCHARGE PROVIDED IN SUBSECTION
50 (C) OF THIS SECTION AND SPECIFYING THE TAXABLE YEARS FOR WHICH THE RATE
51 IS TO BE EFFECTIVE. SUCH RESOLUTION SHALL BE DEEMED TO INCORPORATE THER-
52 EIN ALL OF THE PROVISIONS OF THE MODEL SCHOOL DISTRICT INCOME TAX
53 SURCHARGE SET FORTH IN SECTION THIRTEEN HUNDRED SIXTY-THREE OF THIS
54 ARTICLE, AS AMENDED FROM TIME TO TIME.
55 (C) RATE OF SURCHARGE. THE PERMISSIBLE RATES OF INCOME TAX SURCHARGE
56 AUTHORIZED BY THIS SECTION SHALL BE WHOLE NUMBER MULTIPLES OF ONE
A. 7173 11
1 PERCENT AND SHALL NOT EXCEED TWENTY-FIVE PERCENT. DIFFERENT PERMISSIBLE
2 RATES MAY BE IMPOSED WITH RESPECT TO DIFFERENT CALENDAR YEARS, BUT ONLY
3 ONE SUCH RATE MAY BE IMPOSED WITH RESPECT TO A SINGLE CALENDAR YEAR, AND
4 ANY SUCH RATE SHALL REMAIN IN EFFECT FOR THE ENTIRE YEAR AND SHALL APPLY
5 TO ALL TAXABLE YEARS BEGINNING IN SUCH CALENDAR YEAR.
6 (D) EFFECTIVENESS OF RESOLUTION AND FILING WITH COMMISSIONER. (1)
7 INITIAL ADOPTION. A RESOLUTION IMPOSING AN INCOME TAX SURCHARGE PURSUANT
8 TO THE AUTHORITY OF THIS SECTION WHICH IS ADOPTED ON OR BEFORE MARCH
9 THIRTY-FIRST OF ANY CALENDAR YEAR WITH NOTICE TO THE COMMISSIONER ON OR
10 BEFORE SUCH DATE SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE
11 FIRST SUCCEEDING CALENDAR YEAR, AND ANY SUCH LOCAL LAW ENACTED AFTER, OR
12 WITH NOTICE AFTER, SUCH MARCH THIRTY-FIRST SHALL GO INTO EFFECT ON THE
13 FIRST DAY OF JANUARY OF THE SECOND SUCCEEDING CALENDAR YEAR, AND IN
14 EITHER CASE SHALL APPLY TO TAXABLE YEARS BEGINNING ON AND AFTER SUCH
15 FIRST DAY OF JANUARY.
16 (2) AMENDMENT. A RESOLUTION AMENDING SUCH AN INCOME TAX SURCHARGE,
17 WHICH RESOLUTION IS ADOPTED ON OR BEFORE JUNE THIRTIETH OF ANY CALENDAR
18 YEAR WITH NOTICE TO THE COMMISSIONER ON OR BEFORE SUCH DATE SHALL GO
19 INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE FIRST SUCCEEDING CALENDAR
20 YEAR, AND ANY SUCH RESOLUTION ADOPTED AFTER, OR WITH NOTICE AFTER, SUCH
21 JUNE THIRTIETH SHALL GO INTO EFFECT ON THE FIRST DAY OF JANUARY OF THE
22 SECOND SUCCEEDING CALENDAR YEAR, AND IN EITHER CASE SHALL APPLY TO TAXA-
23 BLE YEARS BEGINNING ON AND AFTER SUCH FIRST DAY OF JANUARY.
24 (3) NOTICE. NOTICE TO THE COMMISSIONER OF ADOPTION OF ANY RESOLUTION
25 PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL BE BY MAILING BY REGIS-
26 TERED MAIL A CERTIFIED COPY OF SUCH RESOLUTION TO THE COMMISSIONER AT
27 THE COMMISSIONER'S OFFICE IN ALBANY.
28 (E) FILING OF RESOLUTION WITH OTHERS. CERTIFIED COPIES OF ANY SUCH
29 RESOLUTION SHALL ALSO BE FILED, WITHIN THIRTY DAYS OF THE DATE OF ENACT-
30 MENT, WITH THE CLERK OF THE SCHOOL DISTRICT WHEREIN THE SURCHARGE IS
31 IMPOSED.
32 (F) COOPERATION. (1) EVERY SCHOOL DISTRICT IMPOSING A SCHOOL DISTRICT
33 INCOME TAX SURCHARGE UNDER THE AUTHORITY OF THIS SECTION SHALL FURNISH
34 THE COMMISSIONER SUCH INFORMATION AS HE OR SHE MAY REQUIRE IN THE ADMIN-
35 ISTRATION OF SUCH SURCHARGE, ANY OTHER LAW TO THE CONTRARY NOTWITHSTAND-
36 ING.
37 (2) THE COMMISSIONER SHALL ADVISE AND COOPERATE WITH SCHOOL DISTRICT
38 OFFICIALS FOR THE PURPOSE OF UNIFORM ADMINISTRATION, COLLECTION AND
39 DISTRIBUTION OF THE TAX AUTHORIZED BY THIS SECTION.
40 (3) ANY AMENDMENT TO THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS
41 CHAPTER, TO THE EXTENT THAT SUCH AMENDMENT IS APPLICABLE TO THE MODEL
42 SCHOOL DISTRICT INCOME TAX SURCHARGE, SHALL BE DEEMED TO HAVE BEEN
43 INCORPORATED IN THE ANALOGOUS PROVISION OR PROVISIONS OF SUCH MODEL
44 SURCHARGE.
45 S 1362. MODEL RESOLUTION. THE RESOLUTION DESCRIBED IN SUBSECTION (B)
46 OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THIS ARTICLE SHALL BE IN
47 SUBSTANTIALLY THE FOLLOWING FORM:
48 IMPOSITION OF SCHOOL DISTRICT INCOME TAX SURCHARGE.
49 THE SCHOOL DISTRICT HEREBY ADOPTS THE MODEL SCHOOL
50 DISTRICT INCOME TAX SURCHARGE, FOR TAXABLE YEARS BEGINNING ON AND AFTER
51 JANUARY 1, 20 , AT THE RATE OF PERCENT.
52 S 1363. ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE.
53 ADOPTION BY A SCHOOL DISTRICT OF THE RESOLUTION SET FORTH IN SECTION
54 THIRTEEN HUNDRED SIXTY-TWO OF THIS ARTICLE SHALL BE DEEMED TO BE
55 ADOPTION OF THE MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE SET FORTH
56 BELOW.
A. 7173 12
1 MODEL SCHOOL DISTRICT INCOME TAX SURCHARGE
2 SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
3 2. RENTER'S CREDIT.
4 3. NET STATE TAX.
5 4. SCHOOL DISTRICT RESIDENT DEFINED.
6 5. RETURNS AND LIABILITIES.
7 6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES.
8 7. CREDIT FOR TAX WITHHELD.
9 8. ENFORCEMENT WITH OTHER TAXES.
10 9. ADMINISTRATION, COLLECTION AND REVIEW.
11 SECTION 1. PERSONS SUBJECT TO THE SCHOOL DISTRICT INCOME TAX
12 SURCHARGE. (A) GENERAL. THE SCHOOL DISTRICT INCOME TAX SURCHARGE AT THE
13 RATE ADOPTED SHALL BE IMPOSED FOR EACH TAXABLE YEAR ON EVERY SCHOOL
14 DISTRICT RESIDENT INDIVIDUAL, ESTATE AND TRUST. A TAXPAYER'S TAXABLE
15 YEAR FOR PURPOSES OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE SHALL BE
16 THE SAME AS THE TAXPAYER'S TAXABLE YEAR UNDER ARTICLE TWENTY-TWO OF THIS
17 CHAPTER.
18 (B) PARTNERS AND PARTNERSHIPS. A PARTNERSHIP AS SUCH SHALL NOT BE
19 SUBJECT TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE. PERSONS CARRYING ON
20 BUSINESS AS PARTNERS SHALL BE LIABLE FOR SUCH SCHOOL DISTRICT INCOME TAX
21 SURCHARGE ONLY IN THEIR SEPARATE OR INDIVIDUAL CAPACITIES.
22 (C) ASSOCIATIONS TAXABLE AS CORPORATIONS. AN ASSOCIATION, TRUST OR
23 OTHER UNINCORPORATED ORGANIZATION WHICH IS TAXABLE AS A CORPORATION FOR
24 FEDERAL INCOME TAX PURPOSES SHALL NOT BE SUBJECT TO THE SCHOOL DISTRICT
25 INCOME TAX SURCHARGE.
26 (D) EXEMPT TRUSTS AND ORGANIZATIONS. A TRUST OR OTHER UNINCORPORATED
27 ORGANIZATION WHICH BY REASON OF ITS PURPOSES OR ACTIVITIES IS EXEMPT
28 FROM FEDERAL INCOME TAX SHALL BE EXEMPT FROM THE SCHOOL DISTRICT INCOME
29 TAX SURCHARGE (REGARDLESS OF WHETHER SUBJECT TO FEDERAL INCOME TAX ON
30 UNRELATED BUSINESS TAXABLE INCOME).
31 S 2. RENTER'S CREDIT. (A) GENERAL. A TAXPAYER WHO IS A QUALIFIED
32 LESSEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS MODEL
33 SURCHARGE EQUAL TO ONE AND ONE-QUARTER PERCENT OF HIS OR HER ADJUSTED
34 RENT.
35 (B) QUALIFIED LESSEE. A QUALIFIED LESSEE IS AN INDIVIDUAL WHOSE RESI-
36 DENCE WITHIN THE SCHOOL DISTRICT IS LEASED REAL PROPERTY WHICH IS NOT
37 RESIDENTIAL REAL PROPERTY.
38 (C) ADJUSTED RENT. THE TERM ADJUSTED RENT SHALL HAVE THE SAME MEANING
39 AS IN SUBPARAGRAPH (G) OF PARAGRAPH ONE OF SUBSECTION (E) OF SECTION SIX
40 HUNDRED SIX OF THIS CHAPTER, WITH RESPECT TO THE RENTAL PAID BY THE
41 QUALIFIED LESSEE DURING THE TAXABLE YEAR FOR THE RESIDENCE REFERRED TO
42 IN SUBSECTION (B) OF THIS SECTION.
43 S 3. NET STATE TAX. (A) GENERAL. THE NET STATE TAX OF A SCHOOL
44 DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST SHALL MEAN THE SUM OF ALL
45 OF THE TAXES IMPOSED ON SUCH INDIVIDUAL, ESTATE OR TRUST UNDER ARTICLE
46 TWENTY-TWO OF THIS CHAPTER FOR THE TAXABLE YEAR LESS THE APPLICABLE
47 CREDITS (OTHER THAN THE CREDIT FOR TAX WITHHELD) ALLOWED TO SUCH INDI-
48 VIDUAL, ESTATE OR TRUST UNDER SUCH ARTICLE FOR THE TAXABLE YEAR.
49 (B) CHANGE OF RESIDENCE. WHEN AN INDIVIDUAL OR TRUST CHANGES SCHOOL
50 DISTRICT RESIDENT STATUS DURING THE TAXABLE YEAR, THE NET STATE TAX
51 SHALL BE THE NET STATE TAX DETERMINED UNDER SUBSECTION (A) OF THIS
52 SECTION MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE NUMBER
53 OF MONTHS OF RESIDENCE IN THE SCHOOL DISTRICT IN THE TAXABLE YEAR AND
54 THE DENOMINATOR OF WHICH IS THE NUMBER OF MONTHS IN THE TAXABLE YEAR.
55 FOR PURPOSES OF THIS SUBSECTION, A MONTH SHALL CONSTITUTE A MONTH OF
A. 7173 13
1 RESIDENCE IF THE INDIVIDUAL OR TRUST IS A RESIDENT FOR MORE THAN FIFTEEN
2 DAYS OF THAT MONTH.
3 S 4. SCHOOL DISTRICT RESIDENT DEFINED. (A) SCHOOL DISTRICT RESIDENT
4 INDIVIDUAL. A SCHOOL DISTRICT RESIDENT INDIVIDUAL MEANS AN INDIVIDUAL
5 WHO IS DOMICILED IN THE SCHOOL DISTRICT WHEREIN THE SCHOOL DISTRICT
6 INCOME TAX SURCHARGE IS IMPOSED, UNLESS
7 (1) SUCH INDIVIDUAL MAINTAINS NO PERMANENT PLACE OF ABODE IN SUCH
8 SCHOOL DISTRICT, MAINTAINS A PERMANENT PLACE OF ABODE ELSEWHERE, AND
9 SPENDS IN THE AGGREGATE NOT MORE THAN THIRTY DAYS OF THE TAXABLE YEAR IN
10 SUCH SCHOOL DISTRICT, OR
11 (2)(A) WITHIN ANY PERIOD OF FIVE HUNDRED FORTY-EIGHT CONSECUTIVE DAYS
12 SUCH INDIVIDUAL IS PRESENT IN A FOREIGN COUNTRY OR COUNTRIES FOR AT
13 LEAST FOUR HUNDRED FIFTY DAYS, AND (B) DURING SUCH PERIOD OF FIVE
14 HUNDRED FORTY-EIGHT CONSECUTIVE DAYS HE OR SHE IS NOT PRESENT IN SUCH
15 SCHOOL DISTRICT FOR MORE THAN NINETY DAYS AND DOES NOT MAINTAIN A PERMA-
16 NENT PLACE OF ABODE IN SUCH SCHOOL DISTRICT AT WHICH HIS OR HER SPOUSE
17 (UNLESS SUCH SPOUSE IS LEGALLY SEPARATED) OR MINOR CHILDREN ARE PRESENT
18 FOR MORE THAN NINETY DAYS, AND (C) DURING THE NONRESIDENT PORTION OF THE
19 TAXABLE YEAR WITH OR WITHIN WHICH SUCH PERIOD OF FIVE HUNDRED
20 FORTY-EIGHT CONSECUTIVE DAYS BEGINS AND THE NONRESIDENT PORTION OF THE
21 TAXABLE YEAR WITH OR WITHIN WHICH SUCH PERIOD ENDS, HE OR SHE IS PRESENT
22 IN SUCH SCHOOL DISTRICT FOR A NUMBER OF DAYS WHICH DOES NOT EXCEED AN
23 AMOUNT WHICH BEARS THE SAME RATIO TO NINETY AS THE NUMBER OF DAYS
24 CONTAINED IN SUCH PORTION OF THE TAXABLE YEAR BEARS TO FIVE HUNDRED
25 FORTY-EIGHT.
26 (B) SCHOOL DISTRICT RESIDENT ESTATE OR TRUST. A SCHOOL DISTRICT RESI-
27 DENT ESTATE OR TRUST MEANS: (1) THE ESTATE OF A DECEDENT WHO AT HIS OR
28 HER DEATH WAS DOMICILED IN SUCH SCHOOL DISTRICT,
29 (2) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF PROPERTY TRANS-
30 FERRED BY WILL OF A DECEDENT WHO AT HIS OR HER DEATH WAS DOMICILED IN
31 SUCH SCHOOL DISTRICT, OR
32 (3) A TRUST, OR A PORTION OF A TRUST, CONSISTING OF THE PROPERTY OF:
33 (A) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH PROP-
34 ERTY WAS TRANSFERRED TO THE TRUST, IF SUCH TRUST OR PORTION OF A TRUST
35 WAS THEN IRREVOCABLE, OR IF IT WAS THEN REVOCABLE AND HAS NOT SUBSE-
36 QUENTLY BECOME IRREVOCABLE; OR
37 (B) A PERSON DOMICILED IN SUCH SCHOOL DISTRICT AT THE TIME SUCH TRUST
38 OR PORTION OF A TRUST BECAME IRREVOCABLE, IF IT WAS REVOCABLE WHEN SUCH
39 PROPERTY WAS TRANSFERRED TO THE TRUST BUT HAS SUBSEQUENTLY BECOME IRREV-
40 OCABLE.
41 FOR THE PURPOSES OF THE FOREGOING, A TRUST OR A PORTION OF A TRUST IS
42 REVOCABLE IF IT IS SUBJECT TO A POWER, EXERCISABLE IMMEDIATELY OR AT ANY
43 FUTURE TIME, TO REVEST TITLE IN THE PERSON WHOSE PROPERTY CONSTITUTES
44 SUCH TRUST OR PORTION OF A TRUST AND A TRUST OR PORTION OF A TRUST
45 BECOMES IRREVOCABLE WHEN THE POSSIBILITY THAT SUCH POWER MAY BE EXER-
46 CISED HAS BEEN TERMINATED.
47 S 5. RETURNS AND LIABILITIES. (A) GENERAL. ON OR BEFORE THE FIFTEENTH
48 DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF A TAXABLE YEAR, A SCHOOL
49 DISTRICT INCOME TAX SURCHARGE RETURN SHALL BE MADE AND FILED BY OR FOR
50 EVERY SCHOOL DISTRICT RESIDENT INDIVIDUAL, ESTATE OR TRUST REQUIRED TO
51 FILE A NEW YORK STATE PERSONAL INCOME TAX RETURN FOR THE TAXABLE YEAR.
52 (B) HUSBAND AND WIFE. (1) IF THE NEW YORK STATE PERSONAL INCOME TAX
53 LIABILITIES OF HUSBAND AND WIFE ARE DETERMINED ON SEPARATE RETURNS,
54 THEIR SCHOOL DISTRICT INCOME TAX SURCHARGE LIABILITIES AND RETURNS SHALL
55 BE SEPARATE.
A. 7173 14
1 (2) IF THE NEW YORK STATE PERSONAL INCOME TAX LIABILITIES OF HUSBAND
2 AND WIFE (OTHER THAN A HUSBAND AND WIFE DESCRIBED IN PARAGRAPH THREE OF
3 THIS SUBSECTION) ARE DETERMINED ON A JOINT RETURN, THEY SHALL FILE A
4 JOINT SCHOOL DISTRICT INCOME TAX SURCHARGE RETURN, AND THEIR SCHOOL
5 DISTRICT INCOME TAX SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL
6 EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN
7 SUBSECTION (E) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER.
8 (3) IF EITHER HUSBAND OR WIFE IS A SCHOOL DISTRICT RESIDENT AND THE
9 OTHER IS A SCHOOL DISTRICT NONRESIDENT, AND THEIR NEW YORK STATE
10 PERSONAL INCOME TAX LIABILITIES ARE DETERMINED ON A JOINT RETURN:
11 (A) THE RESIDENT SPOUSE MAY ELECT TO FILE A SEPARATE SCHOOL DISTRICT
12 INCOME TAX SURCHARGE RETURN, IN WHICH CASE THE SURCHARGE SHALL BE
13 APPLIED TO A SEPARATE NET STATE TAX, SUCH SEPARATE NET STATE TAX TO BE
14 THAT PORTION OF THE TOTAL NET STATE TAX DETERMINED FROM THE JOINT STATE
15 RETURN WHICH BEARS THE SAME RELATION TO SUCH TOTAL NET STATE TAX AS THE
16 NEW YORK ADJUSTED GROSS INCOME (AS DEFINED IN SECTION SIX HUNDRED TWELVE
17 OF THIS CHAPTER) OF THE RESIDENT SPOUSE BEARS TO THE JOINT NEW YORK
18 ADJUSTED GROSS INCOME, OR
19 (B) THEY MAY ELECT TO FILE A JOINT SCHOOL DISTRICT INCOME TAX
20 SURCHARGE RETURN, IN WHICH CASE THEIR SCHOOL DISTRICT INCOME TAX
21 SURCHARGE LIABILITIES SHALL BE JOINT AND SEVERAL EXCEPT AS PROVIDED IN
22 PARAGRAPHS FOUR AND FIVE OF THIS SUBSECTION AND IN SUBSECTION (E) OF
23 SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER, PROVIDED THAT (I) IF
24 THE SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A SURCHARGE, BUT
25 AT DIFFERENT RATES, THEY SHALL FILE THE JOINT SCHOOL DISTRICT INCOME TAX
26 SURCHARGE RETURN WITH THE SCHOOL DISTRICT IMPOSING THE HIGHER RATE OF
27 SURCHARGE, AND THERE SHALL BE NO SURCHARGE LIABILITY TO THE OTHER SCHOOL
28 DISTRICT, OR
29 (II) IF THE SCHOOL DISTRICT OF RESIDENCE OF EACH SPOUSE IMPOSES A
30 SURCHARGE AND THE RATES ARE THE SAME, THEY SHALL FILE A JOINT SCHOOL
31 DISTRICT INCOME TAX SURCHARGE RETURN WITH EACH SCHOOL DISTRICT, BUT THE
32 SURCHARGE ON EACH SUCH RETURN SHALL BE APPLIED TO ONE-HALF OF THE NET
33 STATE TAX.
34 (4) UNDER REGULATIONS PRESCRIBED BY THE COMMISSIONER, IF
35 (A) A JOINT NEW YORK STATE PERSONAL INCOME TAX RETURN HAS BEEN MADE
36 UNDER SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER
37 FOR A TAXABLE YEAR, (B) ON SUCH RETURN THERE IS A SUBSTANTIAL UNDER-
38 STATEMENT OF TAX ATTRIBUTABLE TO GROSSLY ERRONEOUS ITEMS OF ONE SPOUSE,
39 (C) THE OTHER SPOUSE IS RELIEVED OF LIABILITY FOR NEW YORK STATE
40 PERSONAL INCOME TAX (INCLUDING INTEREST, PENALTIES AND OTHER AMOUNTS)
41 FOR SUCH TAXABLE YEAR TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE
42 TO SUCH SUBSTANTIAL UNDERSTATEMENT PURSUANT TO THE PROVISIONS OF PARA-
43 GRAPH FIVE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS
44 CHAPTER, AND (D) A JOINT SCHOOL DISTRICT PERSONAL INCOME TAX SURCHARGE
45 RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR THE TAXABLE YEAR,
46 THEN SUCH OTHER SPOUSE SHALL BE RELIEVED OF LIABILITY FOR SCHOOL
47 DISTRICT INCOME TAX SURCHARGE (INCLUDING INTEREST, PENALTIES AND OTHER
48 AMOUNTS) FOR SUCH TAXABLE YEAR UNDER THE SCHOOL DISTRICT INCOME TAX
49 SURCHARGE, TO THE EXTENT THAT SUCH LIABILITY IS ATTRIBUTABLE TO SUCH
50 SUBSTANTIAL UNDERSTATEMENT.
51 (5) IF A JOINT RETURN HAS BEEN MADE PURSUANT TO THIS SUBSECTION FOR A
52 TAXABLE YEAR AND ONLY ONE SPOUSE IS LIABLE FOR PAST-DUE SUPPORT, OR A
53 PAST-DUE LEGALLY ENFORCEABLE DEBT, OR AN AMOUNT OF A DEFAULT IN REPAY-
54 MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN
55 OF WHICH THE COMMISSIONER HAS BEEN NOTIFIED PURSUANT TO SECTION ONE
56 HUNDRED SEVENTY-ONE-C, ONE HUNDRED SEVENTY-ONE-D, ONE HUNDRED
A. 7173 15
1 SEVENTY-ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF THIS CHAPTER, AS THE CASE
2 MAY BE, THEN AN OVERPAYMENT AND INTEREST THEREON SHALL BE CREDITED
3 AGAINST SUCH PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT,
4 OR SUCH AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE
5 UNIVERSITY OR CITY UNIVERSITY LOAN, UNLESS THE SPOUSE NOT LIABLE FOR
6 SUCH PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH
7 AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVER-
8 SITY OR CITY UNIVERSITY LOAN DEMANDS, ON A DECLARATION MADE IN ACCORD-
9 ANCE WITH REGULATIONS OR INSTRUCTIONS PRESCRIBED BY THE COMMISSIONER,
10 THAT THE PORTION OF THE OVERPAYMENT AND INTEREST ATTRIBUTABLE TO SUCH
11 SPOUSE NOT BE CREDITED AGAINST THE PAST-DUE SUPPORT, OR A PAST-DUE
12 LEGALLY ENFORCEABLE DEBT, OR AMOUNT OF A DEFAULT IN REPAYMENT OF A GUAR-
13 ANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN OWED BY THE
14 OTHER SPOUSE. UPON SUCH DEMAND THE COMMISSIONER SHALL DETERMINE THE
15 AMOUNT OF THE OVERPAYMENT ATTRIBUTABLE TO EACH SPOUSE IN ACCORDANCE WITH
16 REGULATIONS PRESCRIBED BY THE COMMISSIONER AND CREDIT ONLY THAT PORTION
17 OF THE OVERPAYMENT AND INTEREST THEREON ATTRIBUTABLE TO THE SPOUSE
18 LIABLE FOR PAST-DUE SUPPORT, OR A PAST-DUE LEGALLY ENFORCEABLE DEBT, OR
19 AMOUNT OF A DEFAULT IN REPAYMENT OF A GUARANTEED STUDENT, STATE UNIVER-
20 SITY OR CITY UNIVERSITY LOAN AGAINST SUCH PAST-DUE SUPPORT, OR A
21 PAST-DUE LEGALLY ENFORCEABLE DEBT, OR SUCH AMOUNT OF A DEFAULT IN REPAY-
22 MENT OF A GUARANTEED STUDENT, STATE UNIVERSITY OR CITY UNIVERSITY LOAN.
23 (C) DECEDENTS. THE RETURN FOR ANY DECEASED INDIVIDUAL SHALL BE MADE
24 AND FILED BY HIS OR HER EXECUTOR, ADMINISTRATOR, OR OTHER PERSON CHARGED
25 WITH HIS OR HER PROPERTY. IF A FINAL RETURN OF A DECEDENT IS FOR A FRAC-
26 TIONAL PART OF A YEAR, THE DUE DATE OF SUCH RETURN SHALL BE THE
27 FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE
28 TWELVE-MONTH PERIOD WHICH BEGAN WITH THE FIRST DAY OF SUCH FRACTIONAL
29 PART OF THE YEAR.
30 (D) INDIVIDUALS UNDER A DISABILITY. THE RETURN FOR AN INDIVIDUAL WHO
31 IS UNABLE TO MAKE A RETURN BY REASON OF MINORITY OR OTHER DISABILITY
32 SHALL BE MADE AND FILED BY HIS OR HER GUARDIAN, COMMITTEE, FIDUCIARY OR
33 OTHER PERSON OR HER CHARGED WITH THE CARE OF HIS OR HER PERSON OR PROP-
34 ERTY (OTHER THAN A RECEIVER IN POSSESSION OF ONLY A PART OF HIS OR HER
35 PROPERTY), OR BY HIS OR HER DULY AUTHORIZED AGENT.
36 (E) ESTATES AND TRUSTS. THE RETURN FOR AN ESTATE OR TRUST SHALL BE
37 MADE AND FILED BY THE FIDUCIARY.
38 (F) JOINT FIDUCIARIES. IF TWO OR MORE FIDUCIARIES ARE ACTING JOINTLY,
39 THE RETURN MAY BE MADE BY ANY ONE OF THEM.
40 S 6. REQUIREMENT OF WITHHOLDING TAX FROM WAGES. THE SCHOOL DISTRICT
41 INCOME TAX SURCHARGE SHALL BE WITHHELD FROM THE WAGES OF SCHOOL DISTRICT
42 RESIDENTS IN THE SAME MANNER AND SUBJECT TO THE SAME REQUIREMENTS, TO
43 THE GREATEST EXTENT POSSIBLE, AS PROVIDED IN SECTIONS SIX HUNDRED SEVEN-
44 TY-ONE THROUGH SIX HUNDRED SEVENTY-EIGHT OF THIS CHAPTER EXCEPT THAT THE
45 TERM "AGGREGATE AMOUNT" CONTAINED IN PARAGRAPHS ONE, TWO AND THREE OF
46 SUBSECTION (A) OF SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER SHALL
47 MEAN THE AGGREGATE OF THE AMOUNTS REQUIRED TO BE DEDUCTED AND WITHHELD
48 OF THE NEW YORK STATE PERSONAL INCOME TAX, THE CITY INCOME AND EARNINGS
49 TAXES AUTHORIZED PURSUANT TO ARTICLES THIRTY, THIRTY-A AND THIRTY-B OF
50 THIS CHAPTER, AND THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
51 S 7. CREDIT FOR TAX WITHHELD. THE SCHOOL DISTRICT INCOME TAX SURCHARGE
52 WITHHELD SHALL NOT REDUCE NET STATE TAX FOR PURPOSES OF COMPUTING THE
53 SCHOOL DISTRICT INCOME TAX SURCHARGE, BUT ANY AMOUNT OF TAX ACTUALLY
54 DEDUCTED AND WITHHELD UNDER THIS MODEL SURCHARGE IN ANY CALENDAR YEAR
55 SHALL BE DEEMED TO HAVE BEEN PAID TO THE DEPARTMENT OF TAXATION AND
56 FINANCE ON BEHALF OF THE PERSON FROM WHOM WITHHELD, AND SUCH PERSON
A. 7173 16
1 SHALL BE CREDITED WITH HAVING PAID THE AMOUNT OF TAX FOR THE TAXABLE
2 YEAR BEGINNING IN SUCH CALENDAR YEAR. FOR A TAXABLE YEAR OF LESS THAN
3 TWELVE MONTHS, THE CREDIT SHALL BE MADE UNDER REGULATIONS OF THE COMMIS-
4 SIONER.
5 S 8. ENFORCEMENT WITH OTHER TAXES. (A) JOINT ASSESSMENT. IF THERE IS
6 ASSESSED A TAX UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE AND THERE
7 IS ALSO ASSESSED A TAX AGAINST THE SAME TAXPAYER PURSUANT TO ARTICLE
8 TWENTY-TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE
9 AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER AND
10 PAYMENT OF A SINGLE AMOUNT IS REQUIRED UNDER THE PROVISIONS OF THIS
11 MODEL SURCHARGE, PAYMENT SHALL BE DEEMED TO HAVE BEEN MADE WITH RESPECT
12 TO THE TAXES SO ASSESSED IN PROPORTION TO THE AMOUNTS OF SUCH TAXES DUE,
13 INCLUDING TAX, PENALTIES, INTEREST AND ADDITIONS TO TAX.
14 (B) JOINT ACTION. IF THE COMMISSIONER TAKES ACTION UNDER SUCH ARTICLE
15 TWENTY-TWO OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF
16 ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER WITH RESPECT TO THE
17 ENFORCEMENT AND COLLECTION OF THE TAX OR TAXES ASSESSED UNDER SUCH ARTI-
18 CLES THE COMMISSIONER SHALL, WHEREVER POSSIBLE, ACCOMPANY SUCH ACTION
19 WITH A SIMILAR ACTION UNDER SIMILAR ENFORCEMENT AND COLLECTION
20 PROVISIONS OF THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
21 (C) APPORTIONMENT OF MONEYS COLLECTED BY JOINT ACTION. ANY MONEYS
22 COLLECTED AS A RESULT OF SUCH JOINT ACTION SHALL BE DEEMED TO HAVE BEEN
23 COLLECTED IN PROPORTION TO THE AMOUNTS DUE, INCLUDING TAX, PENALTIES,
24 INTEREST AND ADDITIONS TO TAX, UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER
25 OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHORITY OF ARTICLE THIR-
26 TY, THIRTY-A, OR THIRTY-B OF THIS CHAPTER AND THE SCHOOL DISTRICT INCOME
27 TAX SURCHARGE.
28 (D) JOINT DEFICIENCY ACTION. WHENEVER THE COMMISSIONER TAKES ANY
29 ACTION WITH RESPECT TO A DEFICIENCY OF INCOME TAX UNDER ARTICLE TWENTY-
30 TWO OF THIS CHAPTER OR UNDER A LOCAL LAW ENACTED PURSUANT TO THE AUTHOR-
31 ITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER, OTHER THAN
32 THE ACTION SET FORTH IN SUBSECTION (A) OF THIS SECTION, THE COMMISSIONER
33 MAY IN HIS OR HER DISCRETION ACCOMPANY SUCH ACTION WITH A SIMILAR ACTION
34 UNDER THE SCHOOL DISTRICT INCOME TAX SURCHARGE.
35 S 9. ADMINISTRATION, COLLECTION AND REVIEW. (A) GENERAL. EXCEPT AS
36 OTHERWISE PROVIDED IN THIS ARTICLE, THE SCHOOL DISTRICT INCOME TAX
37 SURCHARGE SHALL BE ADMINISTERED AND COLLECTED BY THE COMMISSIONER IN THE
38 SAME MANNER AS THE TAX IMPOSED BY ARTICLE TWENTY-TWO OF THIS CHAPTER IS
39 ADMINISTERED AND COLLECTED BY THE COMMISSIONER. ALL OF THE PROVISIONS OF
40 ARTICLE TWENTY-TWO OF THIS CHAPTER RELATING TO OR APPLICABLE TO PAYMENT
41 OF ESTIMATED TAX, RETURNS, PAYMENT OF TAX, WITHHOLDING OF TAX FROM
42 WAGES, EMPLOYER'S STATEMENTS AND RETURNS, EMPLOYER'S LIABILITY FOR TAXES
43 REQUIRED TO BE WITHHELD AND ALL OTHER PROVISIONS OF ARTICLE TWENTY-TWO
44 RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, LIABILITY
45 FOR AND REVIEW OF THE TAX IMPOSED BY ARTICLE TWENTY-TWO, INCLUDING
46 SECTIONS SIX HUNDRED FIFTY-TWO AND SIX HUNDRED FIFTY-THREE, SECTIONS SIX
47 HUNDRED FIFTY-SEVEN THROUGH SIX HUNDRED FIFTY-NINE, SECTION SIX HUNDRED
48 SIXTY-ONE, SECTIONS SIX HUNDRED SEVENTY-ONE AND SIX HUNDRED SEVENTY-TWO,
49 SECTIONS SIX HUNDRED SEVENTY-FOUR THROUGH SIX HUNDRED SEVENTY-EIGHT AND
50 SECTIONS SIX HUNDRED EIGHTY-ONE THROUGH SIX HUNDRED NINETY-SEVEN OF THIS
51 CHAPTER, INCLUSIVE, SHALL APPLY TO THE SCHOOL DISTRICT INCOME TAX
52 SURCHARGE WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN
53 INCORPORATED IN FULL INTO THIS MODEL SURCHARGE, AND HAD EXPRESSLY
54 REFERRED TO THE SCHOOL DISTRICT INCOME TAX SURCHARGE, EXCEPT WHERE ANY
55 SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS MODEL
56 SURCHARGE OR IS NOT RELEVANT TO THIS MODEL SURCHARGE. WHENEVER THERE IS
A. 7173 17
1 JOINT COLLECTION OF STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR
2 EARNINGS TAXES OR SCHOOL DISTRICT INCOME TAX SURCHARGE, IT SHALL BE
3 DEEMED THAT SUCH COLLECTION SHALL REPRESENT PROPORTIONATELY THE APPLICA-
4 BLE STATE PERSONAL INCOME TAX, CITY PERSONAL INCOME OR EARNINGS TAX OR
5 SCHOOL DISTRICT INCOME TAX SURCHARGE IN DETERMINING THE AMOUNT TO BE
6 REMITTED TO THE SCHOOL DISTRICT.
7 (B) PAYMENT TO DESIGNATED DEPOSITORIES. THE COMMISSIONER, IN HIS OR
8 HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR ALL PERSONS LIABLE FOR ANY
9 SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS MODEL SURCHARGE
10 TO MAKE PAYMENTS ON ACCOUNT OF ESTIMATED SCHOOL DISTRICT INCOME TAX
11 SURCHARGE AND PAYMENT OF ANY SCHOOL DISTRICT INCOME TAX SURCHARGE,
12 PENALTY OR INTEREST TO SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES
13 DESIGNATED BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS,
14 BANKING HOUSES OR TRUST COMPANIES, AS AGENT OF THE COMMISSIONER, IN LIEU
15 OF PAYING A SCHOOL DISTRICT INCOME TAX SURCHARGE IMPOSED UNDER THIS
16 MODEL SURCHARGE DIRECTLY TO THE COMMISSION. HOWEVER, THE COMMISSIONER
17 SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES WHICH
18 ARE DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES OF THE STATE.
19 (C) COMBINED FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
20 ARTICLE, THE COMMISSIONER MAY REQUIRE:
21 (1) THE FILING OF ANY OR ALL OF THE FOLLOWING:
22 (A) A COMBINED RETURN WHICH, IN ADDITION TO THE RETURN PROVIDED FOR IN
23 SECTION FIVE HEREOF, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED PURSU-
24 ANT TO THE PROVISIONS OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER
25 TO BE FILED BY AN INDIVIDUAL, ESTATE OR TRUST WHO OR WHICH IS A RESIDENT
26 OF NEW YORK STATE, AND WHICH MAY BE REQUIRED TO BE FILED BY SUCH INDI-
27 VIDUAL, ESTATE OR TRUST PURSUANT TO ANY LOCAL LAW ENACTED PURSUANT TO
28 THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS CHAPTER,
29 AND
30 (B) A COMBINED EMPLOYER'S RETURN WHICH, IN ADDITION TO THE EMPLOYER'S
31 RETURN PROVIDED FOR BY THIS MODEL SURCHARGE, MAY ALSO INCLUDE ANY OF THE
32 EMPLOYER'S RETURNS REQUIRED TO BE FILED BY THE SAME EMPLOYER PURSUANT TO
33 THE PROVISIONS OF SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER AND
34 REQUIRED TO BE FILED BY SUCH EMPLOYER PURSUANT TO ANY LOCAL LAW ENACTED
35 UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR THIRTY-B OF THIS
36 CHAPTER.
37 (2) WHERE A COMBINED RETURN OR EMPLOYER'S RETURN IS REQUIRED, AND WITH
38 RESPECT TO THE PAYMENT OF ESTIMATED TAX, THE COMMISSIONER MAY ALSO
39 REQUIRE THE PAYMENT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF
40 THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) WHICH WOULD HAVE
41 BEEN REQUIRED TO BE PAID WITH THE RETURNS OR EMPLOYER'S RETURNS OR IN
42 PAYMENT OF ESTIMATED TAX PURSUANT TO THE PROVISIONS OF ARTICLE
43 TWENTY-TWO OF THIS CHAPTER AND THIS MODEL SURCHARGE AND THE PROVISIONS
44 OF LOCAL LAWS ENACTED UNDER THE AUTHORITY OF ARTICLE THIRTY, THIRTY-A OR
45 THIRTY-B OF THIS CHAPTER.
46 S 1364. DEPOSIT AND DISPOSITION OF REVENUES. (A) DEPOSIT OF REVENUES.
47 ALL REVENUE COLLECTED BY THE COMMISSIONER FROM THE TAX IMPOSED BY ANY
48 SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE SHALL BE
49 DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST
50 COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO THE CREDIT
51 OF THE COMPTROLLER, IN TRUST FOR SUCH SCHOOL DISTRICT. SUCH DEPOSITS
52 SHALL BE KEPT IN TRUST AND SEPARATE AND APART FROM ALL OTHER MONEYS IN
53 THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL REQUIRE
54 ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES OF SUCH REVENUE COLLECTED
55 BY THE COMMISSIONER.
A. 7173 18
1 (B) RESERVES. THE COMPTROLLER SHALL RETAIN A RESERVE FOR REFUNDS IN
2 SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
3 REFUNDS IN RESPECT TO SUCH TAX AND A RESERVE FOR REASONABLE COSTS OF THE
4 COMMISSIONER IN ADMINISTERING, COLLECTING AND DISTRIBUTING SUCH TAX.
5 (1) FROM THE RESERVE FOR REFUNDS THE COMPTROLLER SHALL PAY ANY REFUNDS
6 OF SUCH TAX TO WHICH A TAXPAYER SHALL BE ENTITLED UNDER ANY SURCHARGE
7 ENACTED BY A SCHOOL DISTRICT PURSUANT TO THE AUTHORITY OF THIS ARTICLE,
8 EXCEPT THAT
9 (A) THE COMPTROLLER SHALL PAY TO THE STATE DEPARTMENT OF SOCIAL
10 SERVICES THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH
11 AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS THE
12 AMOUNT TO BE CREDITED AGAINST PAST-DUE SUPPORT PURSUANT TO SUBDIVISION
13 SIX OF SECTION ONE HUNDRED SEVENTY-ONE-C OF THIS CHAPTER,
14 (B) THE COMPTROLLER SHALL PAY TO THE NEW YORK STATE HIGHER EDUCATION
15 SERVICES CORPORATION THAT AMOUNT OF OVERPAYMENT OF SUCH TAX AND THE
16 INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR HER BY THE COMMIS-
17 SIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT OF DEFAULTS IN
18 REPAYMENT OF GUARANTEED STUDENT LOANS PURSUANT TO SUBDIVISION FIVE OF
19 SECTION ONE HUNDRED SEVENTY-ONE-D OF THIS CHAPTER,
20 (C) THE COMPTROLLER SHALL PAY TO THE STATE UNIVERSITY OF NEW YORK OR
21 THE CITY UNIVERSITY OF NEW YORK RESPECTIVELY THAT AMOUNT OF OVERPAYMENT
22 OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR
23 HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST THE AMOUNT
24 OF DEFAULTS IN REPAYMENT OF STATE OR CITY UNIVERSITY LOANS PURSUANT TO
25 SUBDIVISION SIX OF SECTION ONE HUNDRED SEVENTY-ONE-E OF THIS CHAPTER,
26 (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMPTROLLER SHALL
27 CREDIT TO THE REVENUE ARREARAGE ACCOUNT, PURSUANT TO SECTION
28 NINETY-ONE-A OF THE STATE FINANCE LAW, THAT AMOUNT OF OVERPAYMENT OF
29 SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH IS CERTIFIED TO HIM OR
30 HER BY THE COMMISSIONER AS THE AMOUNT TO BE CREDITED AGAINST A PAST-DUE
31 LEGALLY ENFORCEABLE DEBT OWED TO A STATE AGENCY PURSUANT TO SUBDIVISION
32 SIX OF SECTION ONE HUNDRED SEVENTY-ONE-F OF THIS CHAPTER, AND
33 (E) THE COMPTROLLER SHALL PAY TO A NON-OBLIGATED SPOUSE THAT AMOUNT OF
34 OVERPAYMENT OF SUCH TAX AND THE INTEREST ON SUCH AMOUNT WHICH HAS BEEN
35 CREDITED PURSUANT TO SECTION ONE HUNDRED SEVENTY-ONE-C, ONE HUNDRED
36 SEVENTY-ONE-D, ONE HUNDRED SEVENTY-ONE-E OR ONE HUNDRED SEVENTY-ONE-F OF
37 THIS CHAPTER AND WHICH IS CERTIFIED TO HIM OR HER BY THE COMMISSIONER AS
38 THE AMOUNT DUE SUCH NON-OBLIGATED SPOUSE PURSUANT TO PARAGRAPH SIX OF
39 SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS CHAPTER, AND THE
40 COMPTROLLER SHALL DEDUCT A LIKE AMOUNT WHICH HE OR SHE SHALL PAY INTO
41 THE TREASURY TO THE CREDIT OF THE GENERAL FUND FROM AMOUNTS SUBSEQUENTLY
42 PAYABLE TO THE DEPARTMENT OF FAMILY ASSISTANCE, THE STATE UNIVERSITY OF
43 NEW YORK, THE CITY UNIVERSITY OF NEW YORK, THE HIGHER EDUCATION SERVICES
44 CORPORATION OR TO THE REVENUE ARREARAGE ACCOUNT PURSUANT TO SECTION
45 NINETY-ONE-A OF THE STATE FINANCE LAW, AS THE CASE MAY BE, WHICHEVER HAD
46 BEEN CREDITED THE AMOUNT ORIGINALLY WITHHELD FROM SUCH OVERPAYMENT.
47 (2) THE AMOUNT RESERVED FOR ADMINISTERING, COLLECTING AND DISTRIBUTING
48 SUCH TAX SHALL BE PAID BY THE COMPTROLLER ON OR BEFORE THE FIFTEENTH DAY
49 OF EACH MONTH INTO THE GENERAL FUND OF THE STATE TREASURY TO THE CREDIT
50 OF THE STATE PURPOSES ACCOUNT THEREIN.
51 S 13. Subdivision (e) of section 1800 of the tax law, as added by
52 chapter 65 of the laws of 1985, is amended to read as follows:
53 (e) As used in this article, the term "related income or earnings tax
54 statute" means any law, ordinance or resolution imposed pursuant to the
55 authority of article thirty, [thirty-a or thirty-b] THIRTY-A, THIRTY-B
A. 7173 19
1 OR THIRTY-C of this chapter or article two-E of the general city law,
2 while such article two-E shall remain in full force and effect.
3 S 14. Subdivision (c) of section 3008 of the tax law, as added by
4 chapter 770 of the laws of 1992, is amended to read as follows:
5 (c) Assessments attributable to certain mathematical errors by the
6 department. In the case of an assessment of any tax imposed by or pursu-
7 ant to the authority of article twenty-two, thirty, thirty-A [or], thir-
8 ty-B OR THIRTY-C of this chapter [or article two-E of the general city
9 law] attributable in whole or in part to a mathematical error described
10 in subparagraph (A) of paragraph two of subsection (g) of section
11 sixty-two hundred thirteen of the federal internal revenue code, if the
12 return was prepared by an officer or employee of the department acting
13 in his or her official capacity to provide assistance to taxpayers in
14 the preparation of income tax returns, the commissioner is authorized to
15 abate the assessment of all or any part of any interest on such defi-
16 ciency for any period ending on or before the tenth day following the
17 date of notice and demand by the commissioner for payment of the defi-
18 ciency.
19 S 15. Section 171 of the tax law is amended by adding a new subdivi-
20 sion twenty-ninth to read as follows:
21 TWENTY-NINTH. DEVELOP GUIDELINES AND PROVIDE TECHNICAL ASSISTANCE TO A
22 STUDY COMMISSION OF A SCHOOL DISTRICT FORMED PURSUANT TO SECTION FIFTEEN
23 HUNDRED ONE-D OF THE EDUCATION LAW IN ORDER TO IMPLEMENT THE PROVISIONS
24 OF ARTICLE THIRTY-C OF THIS CHAPTER AND SECTION THIRTEEN HUNDRED SEVEN
25 OF THE REAL PROPERTY TAX LAW.
26 S 16. The state education department, the department of taxation and
27 finance and the office of real property services are hereby directed to
28 conduct a joint study on whether this act has provided school districts
29 with greater flexibility to finance public education and afforded relief
30 to residential property taxpayers, and report jointly to the governor
31 and the legislature together with any recommendations for change to meet
32 these purposes. Said study shall not commence until this act has been in
33 effect for five years upon which the aforementioned agencies shall file
34 a joint written report to the governor and the legislature by no later
35 than the sixth year after this act takes effect.
36 S 17. This act shall take effect immediately.
37 S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
38 sion, section or part of this act shall be adjudged by any court of
39 competent jurisdiction to be invalid, such judgment shall not affect,
40 impair, or invalidate the remainder thereof, but shall be confined in
41 its operation to the clause, sentence, paragraph, subdivision, section
42 or part thereof directly involved in the controversy in which such judg-
43 ment shall have been rendered. It is hereby declared to be the intent of
44 the legislature that this act would have been enacted even if such
45 invalid provisions had not been included herein.
46 S 4. This act shall take effect immediately provided, however, that
47 the applicable effective dates of Parts A and B of this act shall be as
48 specifically set forth in the last section of such Parts.
