[ ] is old law to be omitted.
LBD12674-03-6
S. 9009--B 2
age, in relation to extending the residential energy storage exemption
for two years (Part Q); to amend the tax law, in relation to the
petroleum business tax filing deadline for commercial vessel operators
(Part R); to amend chapter 109 of the laws of 2006 amending the tax
law and other laws relating to providing exemptions, reimbursements
and credits from various taxes for certain alternative fuels, in
relation to extending the alternative fuels tax exemptions (Part S);
to amend the real property tax law and the tax law, in relation to
making technical corrections to the STAR exemption and STAR credit
programs; and to repeal certain provisions of the real property tax
law relating thereto (Part T); to amend chapter 475 of the laws of
2013 amending the real property tax law relating to assessment ceil-
ings for local public utility mass real property, in relation to
extending the assessment ceiling for local public utility mass real
property to January 1, 2031 (Part U); to amend the real property tax
law, in relation to increasing the combined household income limit for
eligibility for a senior citizen rent increase exemption (SCRIE),
disability rent increase exemption (DRIE), senior citizen homeowners'
exemption (SCHE), and disabled homeowners' exemption (DHE) on the
basis of the consumer price index; to amend part U of chapter 55 of
the laws of 2014, amending the real property tax law relating to the
tax abatement and exemption for rent regulated and rent controlled
property occupied by senior citizens, in relation to the effectiveness
thereof; and to amend chapter 129 of the laws of 2014, amending the
real property tax law relating to the tax abatement and exemption for
rent regulated and rent controlled property occupied by persons with
disabilities, in relation to the effectiveness thereof (Subpart A);
and to amend the administrative code of the city of New York and the
real property tax law, in relation to notice regarding the rent
increase exemption for low income elderly persons and persons with
disabilities programs (Subpart B) (Part V); to amend the racing, pari-
mutuel wagering and breeding law, in relation to conforming pari-mutu-
el tax provisions (Part W); to amend the racing, pari-mutuel wagering
and breeding law, in relation to extending the utilization of funds in
off-track betting corporations' capital acquisition funds (Part X); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to licenses for simulcast facilities, sums relating to track simul-
cast, simulcast of out-of-state thoroughbred races, simulcasting of
races run by out-of-state harness tracks and distributions of wagers;
and 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 the
effectiveness thereof (Part Y); to amend the racing, pari-mutuel
wagering and breeding law, in relation to extending certain seasonal
employee licensing requirements for additional race dates at Saratoga
Racetrack (Part Z); to amend the tax law, in relation to residential
solar tax credits (Part AA); to amend the tax law, in relation to tax
on sales of motor fuel and petroleum products and to make conforming
changes; to amend the tax law, in relation to taxes not authorized and
the disposition of revenue; to repeal paragraph 3 of subdivision (f)
and paragraph 4 of subdivision (g) of section 301-a of the tax law
relating to manufacturing gallonage for purposes of the imposition of
certain taxes; to repeal subdivisions (i), (j), and (l) of section
301-c of the tax law relating to reimbursement; to repeal section
301-d of the tax law relating to a utility credit or reimbursement; to
repeal subdivision (f) of section 301-e of the tax law relating to an
S. 9009--B 3
aviation fuel business which services four or more cities; to repeal
subparagraph (xi) of paragraph 3 of subdivision (c) of section 1105 of
the tax law relating to services rendered with respect to certain
property; and to repeal paragraph 9 of subdivision (a) of section 1115
of the tax law relating to fuel sold to an airline for use in its
airplanes (Part BB); to amend the tax law and the administrative code
of the city of New York, in relation to treatment of gains from quali-
fied opportunity zones in calculating taxable income (Part CC); to
amend the tax law, in relation to tax credits for volunteer firefight-
ers and volunteer ambulance workers (Part DD); to amend the tax law
and chapter 60 of the laws of 2016 amending the tax law relating to
creating a farm workforce retention credit, in relation to making the
provisions thereof permanent (Part EE); to amend the tax law, in
relation to top personal income tax rates (Part FF); to amend the tax
law, in relation to the limitation on the pass-through entity tax
credit (Part GG); to amend the tax law, in relation to authorizing the
city of Buffalo to impose real estate transfer taxes (Part HH); to
repeal subdivision (jj) of section 1115 of the tax law relating to
sales and compensating use taxes imposed with respect to vessels; and
to repeal subdivision 13 of section 1118 of the tax law relating to
sales and compensating use taxes imposed with respect to vessels (Part
II); to amend the tax law, in relation to designating revenue
collected by the opioid excise tax for the New York state drug treat-
ment and public education fund (Part JJ); to amend the tax law, in
relation to establishing a tax credit for food service establishment
donations to food pantries (Part KK); to amend the tax law, in
relation to increasing tax credits for donations to food pantries by
farmers (Part LL); to amend the tax law, in relation to establishing a
tax on noise emissions from non-essential helicopter and seaplane
flights in cities with a population of one million or more (Part MM);
to amend the tax law, in relation to requiring the state to keep state
lottery winners identities anonymous to the general public unless the
lottery winner gives their consent (Part NN); to amend the tax law, in
relation to the sales and use tax exemption for certain transactions
in precious metal bullion held for investment purposes (Part OO); to
amend the tax law, in relation to modifications increasing federal
adjusted gross income (Part PP); to amend the tax law, in relation to
authorizing the city of Albany to impose real estate transfer taxes
(Part QQ); to amend the tax law and the administrative code of the
city of New York, in relation to decreasing the amount of the credit
allowed for the city pass-through entity tax against the city personal
income tax (Part RR); to amend chapter 772 of the laws of 1966, relat-
ing to enabling any city having a population of one million or more to
raise tax revenue, and the administrative code of the city of New
York, in relation to increasing tax rates imposed on unincorporated
businesses and corporations in New York city for taxable years begin-
ning on or after January first, two thousand twenty-six, upon adoption
of a local law by the local legislative body of the city of New York
(Part SS); and to amend the tax law and the administrative code of the
city of New York, in relation to increasing the rate of tax on certain
conveyances of real property, transfers of leasehold interests, and
transfers of controlling economic interests in real property in the
city of New York (Part TT)
S. 9009--B 4
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2026-2027
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through TT. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part,
including the effective date of the Part, which makes a reference to a
section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Section 1. Paragraph 1 of subsection (c) of section 606 of the tax
law, as amended by section 1 of part M of chapter 63 of the laws of
2000, is amended to read as follows:
(1) [A] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, A taxpayer shall be allowed a credit as provided herein
equal to the applicable percentage of the credit allowable under section
twenty-one of the internal revenue code for the same taxable year (with-
out regard to whether the taxpayer in fact claimed the credit under such
section twenty-one for such taxable year). The applicable percentage
shall be the sum of (i) twenty percent and (ii) a multiplier multiplied
by a fraction. For taxable years beginning in nineteen hundred ninety-
six and nineteen hundred ninety-seven, the numerator of such fraction
shall be the lesser of (i) four thousand dollars or (ii) fourteen thou-
sand dollars less the New York adjusted gross income for the taxable
year, provided, however, the numerator shall not be less than zero. For
the taxable year beginning in nineteen hundred ninety-eight, the numera-
tor of such fraction shall be the lesser of (i) thirteen thousand
dollars or (ii) thirty thousand dollars less the New York adjusted gross
income for the taxable year, provided, however, the numerator shall not
be less than zero. For taxable years beginning in nineteen hundred nine-
ty-nine, the numerator of such fraction shall be the lesser of (i)
fifteen thousand dollars or (ii) fifty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however, the
numerator shall not be less than zero. For taxable years beginning after
nineteen hundred ninety-nine, the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand
dollars less the New York adjusted gross income for the taxable year,
provided, however, the numerator shall not be less than zero. The denom-
inator of such fraction shall be four thousand dollars for taxable years
beginning in nineteen hundred ninety-six and nineteen hundred ninety-
seven, thirteen thousand dollars for the taxable year beginning in nine-
teen hundred ninety-eight, and fifteen thousand dollars for taxable
years beginning after nineteen hundred ninety-eight. The multiplier
shall be ten percent for taxable years beginning in nineteen hundred
ninety-six, forty percent for taxable years beginning in nineteen
hundred ninety-seven, and eighty percent for taxable years beginning
after nineteen hundred ninety-seven. Provided, however, for taxable
years beginning after nineteen hundred ninety-nine, for a person whose
New York adjusted gross income is less than forty thousand dollars, such
applicable percentage shall be equal to (i) one hundred percent, plus
S. 9009--B 5
(ii) ten percent multiplied by a fraction whose numerator shall be the
lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars
less the New York adjusted gross income for the taxable year, provided
such numerator shall not be less than zero, and whose denominator shall
be fifteen thousand dollars. Provided, further, that if the reversion
event, as defined in this paragraph, occurs, the applicable percentage
shall, for taxable years ending on or after the date on which the rever-
sion event occurred, be determined using the rules specified in this
paragraph applicable to taxable years beginning in nineteen hundred
ninety-nine. The reversion event shall be deemed to have occurred on the
date on which federal action, including but not limited to, administra-
tive, statutory or regulatory changes, materially reduces or eliminates
New York state's allocation of the federal temporary assistance for
needy families block grant, or materially reduces the ability of the
state to spend federal temporary assistance for needy families block
grant funds for the credit for certain household and dependent care
services necessary for gainful employment or to apply state general fund
spending on the credit for certain household and dependent care services
necessary for gainful employment toward the temporary assistance for
needy families block grant maintenance of effort requirement, and the
commissioner of the office of temporary and disability assistance shall
certify the date of such event to the commissioner, the director of the
division of the budget, the speaker of the assembly and the temporary
president of the senate.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(c-2) to read as follows:
(C-2) NEW YORK STATE CHILD AND DEPENDENT CARE CREDIT. (1) FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AN
ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED HEREIN TO ENABLE
THE ELIGIBLE TAXPAYER TO BE GAINFULLY EMPLOYED OR A FULL-TIME STUDENT AT
AN EDUCATIONAL INSTITUTION FOR ANY PERIOD OF THE TAXABLE YEAR. IF THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
SHALL EXCEED THE ELIGIBLE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(2) FOR THE PURPOSES OF THIS SUBSECTION:
(A) "ELIGIBLE TAXPAYER" SHALL MEAN A RESIDENT INDIVIDUAL AS DEFINED IN
PARAGRAPH ONE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE OF THIS
ARTICLE WHO, DURING THE TAXABLE YEAR: (I) IS NOT A DEPENDENT OF ANOTHER
TAXPAYER PURSUANT TO SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL
REVENUE CODE; AND (II) IS NOT A RESIDENT MARRIED INDIVIDUAL FILING A
SEPARATE RETURN UNLESS SUCH INDIVIDUAL MEETS THE CONDITIONS IN PARAGRAPH
FOUR OF SUBDIVISION (E) OF SECTION TWENTY-ONE OF THE INTERNAL REVENUE
CODE. PROVIDED, HOWEVER, WHERE MARRIED INDIVIDUALS FILE A JOINT FEDERAL
RETURN, BUT ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES SEPARATELY
PURSUANT TO SUBSECTION (B) OF SECTION SIX HUNDRED FIFTY-ONE OF THIS
ARTICLE, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY ONLY BE
APPLIED AGAINST THE TAX IMPOSED ON THE SPOUSE WITH THE LOWER NEW YORK
ADJUSTED GROSS INCOME.
(B) "QUALIFYING INDIVIDUAL" SHALL MEAN AN INDIVIDUAL WHO: (I) IS UNDER
THE AGE OF THIRTEEN AT THE CLOSE OF THE TAXABLE YEAR OR IS PHYSICALLY OR
MENTALLY INCAPABLE OF CARING FOR THEMSELVES DURING THE TAXABLE YEAR;
(II) RESIDES WITH THE ELIGIBLE TAXPAYER FOR MORE THAN ONE-HALF OF THE
TAXABLE YEAR; AND (III) IS CLAIMED AS A DEPENDENT PURSUANT TO SECTION
ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE, OR COULD OTHERWISE
S. 9009--B 6
BE CLAIMED AS A DEPENDENT. PROVIDED, A QUALIFYING INDIVIDUAL SHALL ALSO
INCLUDE AN INDIVIDUAL WHERE A NONCUSTODIAL PARENT CLAIMS SUCH INDIVIDUAL
UNDER SUBSECTION (E) OF SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL
REVENUE CODE OR THE INDIVIDUAL IS THE ELIGIBLE TAXPAYER'S SPOUSE WHO IS
PHYSICALLY OR MENTALLY INCAPABLE OF CARING FOR THEMSELVES DURING THE
TAXABLE YEAR AND RESIDES WITH THE ELIGIBLE TAXPAYER FOR MORE THAN ONE-
HALF OF THE TAXABLE YEAR.
(C) "EARNED INCOME" SHALL MEAN THE WAGES, SALARIES, TIPS AND OTHER
EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS INCOME WHICH ARE INCLU-
DIBLE IN THE COMPUTATION OF NET EARNINGS FROM SELF-EMPLOYMENT.
(D) (I) "QUALIFYING EXPENSES" SHALL MEAN THE SUM OF THE AMOUNT
INCURRED AND PAID IN THE TAXABLE YEAR DIRECTLY BY AN ELIGIBLE TAXPAYER
FOR: A. SERVICES PROVIDED IN AND ABOUT THE ELIGIBLE TAXPAYER'S RESI-
DENCE TO PROVIDE CARE FOR ANY QUALIFYING INDIVIDUAL, INCLUDING SUCH
EXPENSES FOR THE ROOM AND BOARD OF ANY SUCH CAREGIVER; AND B. NON-OVER-
NIGHT SERVICES PROVIDED OUTSIDE OF THE ELIGIBLE TAXPAYER'S RESIDENCE TO
PROVIDE CARE FOR ANY QUALIFYING INDIVIDUAL; PROVIDED, HOWEVER, THAT
AMOUNTS INCURRED OR PAID FOR WHICH THE PRIMARY PURPOSE IS EDUCATIONAL
SHALL NOT BE INCLUDED.
(II) PROVIDED, HOWEVER, "QUALIFYING EXPENSES" SHALL NOT INCLUDE: A.
ANY AMOUNTS PAID WHEREBY THE TAXPAYER RECEIVES REIMBURSEMENT OR ARE PAID
FROM FUNDS PROVIDED BY A GOVERNMENT ENTITY, DEPENDENT CARE ACCOUNT, OR
OTHER THIRD PARTY; B. ANY AMOUNTS PAID TO A DEPENDENT OF THE TAXPAYER
FOR WHICH THE TAXPAYER OR THE TAXPAYER'S SPOUSE IS ENTITLED TO A
DEDUCTION FOR THE TAXABLE YEAR UNDER SUBSECTION (C) OF SECTION ONE
HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE; OR C. ANY AMOUNTS PAID
TO A CHILD OF THE TAXPAYER AS DEFINED IN PARAGRAPH ONE OF SUBSECTION (F)
OF SECTION ONE HUNDRED FIFTY-TWO OF THE INTERNAL REVENUE CODE WHO HAS
NOT ATTAINED THE AGE OF NINETEEN AT THE CLOSE OF THE TAXABLE YEAR.
(III) FOR THE PURPOSES OF THE CREDIT PROVIDED PURSUANT TO THIS
SUBSECTION, AN ELIGIBLE TAXPAYER'S QUALIFYING EXPENSES SHALL NOT EXCEED:
A. THREE THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH
ONE QUALIFYING INDIVIDUAL;
B. SIX THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH TWO
QUALIFYING INDIVIDUALS;
C. SEVEN THOUSAND FIVE HUNDRED DOLLARS, IN THE CASE OF AN ELIGIBLE
TAXPAYER WITH THREE QUALIFYING INDIVIDUALS;
D. EIGHT THOUSAND FIVE HUNDRED DOLLARS, IN THE CASE OF AN ELIGIBLE
TAXPAYER WITH FOUR QUALIFYING INDIVIDUALS; AND
E. NINE THOUSAND DOLLARS, IN THE CASE OF AN ELIGIBLE TAXPAYER WITH
FIVE OR MORE QUALIFYING INDIVIDUALS.
PROVIDED, FURTHER, THAT AN ELIGIBLE TAXPAYER'S QUALIFYING EXPENSES
SHALL NOT EXCEED SUCH ELIGIBLE TAXPAYER'S EARNED INCOME AS DEFINED IN
SUBPARAGRAPH (C) OF THIS PARAGRAPH, OR IN THE CASE OF A MARRIED ELIGIBLE
TAXPAYER FILING A JOINT RETURN, THE LESSER OF THE EARNED INCOME OF EACH
SPOUSE DETERMINED SEPARATELY.
(E) "APPLICABLE PERCENTAGE" SHALL MEAN: (I) FIFTY-FIVE PERCENT IN THE
CASE OF AN ELIGIBLE TAXPAYER WITH A NEW YORK ADJUSTED GROSS INCOME
DETERMINED PURSUANT TO SECTION SIX HUNDRED TWELVE OF THIS ARTICLE OF
FIFTEEN THOUSAND DOLLARS OR LESS; OR (II) FIFTY-FIVE PERCENT REDUCED BY
TWENTY-FIVE HUNDRED THOUSANDTHS OF A PERCENTAGE POINT FOR EACH DOLLAR OF
AN ELIGIBLE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME DETERMINED PURSU-
ANT TO SECTION SIX HUNDRED TWELVE OF THIS ARTICLE IN EXCESS OF FIFTEEN
THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT THE APPLICABLE PERCENTAGE FOR
AN ELIGIBLE TAXPAYER SHALL NOT BE REDUCED BELOW FOUR PERCENT.
S. 9009--B 7
(3) THE AMOUNT OF THE CREDIT ALLOWED TO AN ELIGIBLE TAXPAYER UNDER
THIS SUBSECTION SHALL BE THE PRODUCT OF THE ELIGIBLE TAXPAYER'S QUALIFY-
ING EXPENSES DETERMINED PURSUANT TO SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
THIS SUBSECTION AND THE APPLICABLE PERCENTAGE DETERMINED PURSUANT TO
SUBPARAGRAPH (E) OF PARAGRAPH TWO OF THIS SUBSECTION.
(3-A) PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, THE CREDIT ALLOWED UNDER THIS
SUBSECTION SHALL BE REDUCED BY TWENTY DOLLARS FOR EACH ONE THOUSAND
DOLLARS BY WHICH THE ELIGIBLE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME
DETERMINED PURSUANT TO SECTION SIX HUNDRED TWELVE OF THIS ARTICLE
EXCEEDS FIVE HUNDRED THOUSAND DOLLARS, OR, IN THE CASE OF A JOINT
RETURN, BY TWENTY DOLLARS FOR EACH ONE THOUSAND DOLLARS BY WHICH SUCH
TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME DETERMINED PURSUANT TO SECTION
SIX HUNDRED TWELVE OF THIS ARTICLE EXCEEDS ONE MILLION DOLLARS;
PROVIDED, FURTHER, THAT THE CREDIT SHALL NEVER BE REDUCED BELOW ZERO.
(4) TO BE ELIGIBLE FOR THE CREDIT PROVIDED BY THIS SUBSECTION, AN
ELIGIBLE TAXPAYER SHALL PROVIDE THE FOLLOWING INFORMATION TO THE SATIS-
FACTION OF THE COMMISSIONER: (I) THE AMOUNT OF QUALIFYING EXPENSES; (II)
IDENTIFYING INFORMATION RELATED TO THE CARE PROVIDER; (III) IDENTIFYING
INFORMATION RELATED TO THE QUALIFYING INDIVIDUAL FOR WHOM THE EXPENSES
WERE INCURRED; AND (IV) ANY OTHER INFORMATION AS REQUIRED.
(5) ANY REFERENCES TO THE INTERNAL REVENUE CODE IN THIS SUBSECTION
SHALL BE TO THE INTERNAL REVENUE CODE AS IT EXISTED PRIOR TO JANUARY
FIRST, TWO THOUSAND TWENTY-FIVE.
§ 3. Paragraph 3 of subsection (e) of section 697 of the tax law, as
amended by chapter 284 of the laws of 2016, is amended to read as
follows:
(3) Nothing herein shall be construed to prohibit the department, its
officers or employees from furnishing information to the office of
temporary and disability assistance relating to the payment of the cred-
it for certain household and dependent care services necessary for gain-
ful employment under subsection (c) of section six hundred six of this
article, THE NEW YORK STATE CHILD AND DEPENDENT CARE CREDIT UNDER
SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, and the
earned income credit under subsection (d) of section six hundred six of
this article and the enhanced earned income credit under subsection
(d-1) of section six hundred six of this article, or pursuant to a local
law enacted by a city having a population of one million or more pursu-
ant to subsection (f) of section thirteen hundred ten of this chapter,
only to the extent necessary to calculate qualified state expenditures
under paragraph seven of subdivision (a) of section four hundred nine of
the federal social security act or to document the proper expenditure of
federal temporary assistance for needy families funds under section four
hundred three of such act. The office of temporary and disability
assistance may redisclose such information to the United States depart-
ment of health and human services only to the extent necessary to calcu-
late such qualified state expenditures or to document the proper expend-
iture of such federal temporary assistance for needy families funds.
Nothing herein shall be construed to prohibit the delivery by the
commissioner to a commissioner of jurors, appointed pursuant to section
five hundred four of the judiciary law, or, in counties within cities
having a population of one million or more, to the county clerk of such
county, or to the clerk of the court or jury administrator of a United
States district court appointed pursuant to title twenty-eight of the
United States Code, section 1836(b)(2), of a mailing list of individuals
to whom income tax forms are mailed by the commissioner for the sole
S. 9009--B 8
purpose of compiling a list of prospective jurors as provided in article
sixteen of the judiciary law or title twenty-eight of the United States
Code. Provided, however, such delivery shall only be made pursuant to an
order of the chief administrator of the courts, appointed pursuant to
section two hundred ten of the judiciary law or an order of a chief
judge of any United States district court in New York State. No such
order may be issued unless such chief administrator or chief judge of
such United States district court is satisfied that such mailing list is
needed to compile a proper list of prospective jurors for the county or
such United States district court for which such order is sought and
that, in view of the responsibilities imposed by the various laws of the
state on the department, it is reasonable to require the commissioner to
furnish such list. Such order shall provide that such list shall be used
for the sole purpose of compiling a list of prospective jurors and that
such commissioner of jurors, or such county clerk, or clerk of the court
or jury administrator of such United States district court shall take
all necessary steps to insure that the list is kept confidential and
that there is no unauthorized use or disclosure of such list. Further-
more, nothing herein shall be construed to prohibit the delivery to a
taxpayer or [his or her] THEIR duly authorized representative of a
certified copy of any return or report filed in connection with [his or
her] THEIR tax or to prohibit the publication of statistics so classi-
fied as to prevent the identification of particular reports or returns
and the items thereof, or the inspection by the attorney general or
other legal representatives of the state of the report or return of any
taxpayer or of any employer filed under section one hundred
seventy-one-h of this chapter, where such taxpayer or employer shall
bring action to set aside or review the tax based thereon, or against
whom an action or proceeding under this chapter or under this chapter
and article eighteen of the labor law has been recommended by the
commissioner, the commissioner of labor with respect to unemployment
insurance matters, or the attorney general or has been instituted, or
the inspection of the reports or returns required under this article by
the comptroller or duly designated officer or employee of the state
department of audit and control, for purposes of the audit of a refund
of any tax paid by a taxpayer under this article, or the furnishing to
the state department of labor of unemployment insurance information
obtained or derived from quarterly combined withholding, wage reporting
and unemployment insurance returns required to be filed by employers
pursuant to paragraph four of subsection (a) of section six hundred
seventy-four of this article, for purposes of administration of such
department's unemployment insurance program, employment services
program, federal and state employment and training programs, employment
statistics and labor market information programs, worker protection
programs, federal programs for which the department has administrative
responsibility or for other purposes deemed appropriate by the commis-
sioner of labor consistent with the provisions of the labor law, and
redisclosure of such information in accordance with the provisions of
sections five hundred thirty-six and five hundred thirty-seven of the
labor law or any other applicable law, or the furnishing to the state
office of temporary and disability assistance of information obtained or
derived from New York state personal income tax returns as described in
paragraph (b) of subdivision two of section one hundred seventy-one-g of
this chapter for the purpose of reviewing support orders enforced pursu-
ant to title six-A of article three of the social services law to aid in
the determination of whether such orders should be adjusted, or the
S. 9009--B 9
furnishing of information obtained from the reports required to be
submitted by employers regarding newly hired or re-hired employees
pursuant to section one hundred seventy-one-h of this chapter to the
state office of temporary and disability assistance, the state depart-
ment of health, the state department of labor and the workers' compen-
sation board for purposes of administration of the child support
enforcement program, verification of individuals' eligibility for one or
more of the programs specified in subsection (b) of section eleven
hundred thirty-seven of the federal social security act and for other
public assistance programs authorized by state law, and administration
of the state's employment security and workers' compensation programs,
and to the national directory of new hires established pursuant to
section four hundred fifty-three-A of the federal social security act
for the purposes specified in such section, or the furnishing to the
state office of temporary and disability assistance of the amount of an
overpayment of income tax and interest thereon certified to the comp-
troller to be credited against past-due support pursuant to section one
hundred seventy-one-c of this chapter and of the name and social securi-
ty number of the taxpayer who made such overpayment, or the disclosing
to the commissioner of finance of the city of New York, pursuant to
section one hundred seventy-one-l of this chapter, of the amount of an
overpayment and interest thereon certified to the comptroller to be
credited against a city of New York tax warrant judgment debt and of the
name and social security number of the taxpayer who made such overpay-
ment, or the furnishing to the New York state higher education services
corporation of the amount of an overpayment of income tax and interest
thereon certified to the comptroller to be credited against the amount
of a default in repayment of any education loan debt, including judg-
ments, owed to the federal or New York state government that is being
collected by the New York state higher education services corporation,
and of the name and social security number of the taxpayer who made such
overpayment, or the furnishing to the state department of health of the
information required by paragraph (f) of subdivision two and subdivision
two-a of section two thousand five hundred eleven of the public health
law and by subdivision eight of section three hundred sixty-six-a of the
social services law, or the furnishing to the state university of New
York or the city university of New York respectively or the attorney
general on behalf of such state or city university the amount of an
overpayment of income tax and interest thereon certified to the comp-
troller to be credited against the amount of a default in repayment of a
state university loan pursuant to section one hundred seventy-one-e of
this chapter and of the name and social security number of the taxpayer
who made such overpayment, or the disclosing to a state agency, pursuant
to section one hundred seventy-one-f of this chapter, of the amount of
an overpayment and interest thereon certified to the comptroller to be
credited against a past-due legally enforceable debt owed to such agency
and of the name and social security number of the taxpayer who made such
overpayment, or the furnishing of employee and employer information
obtained through the wage reporting system, pursuant to section one
hundred seventy-one-a of this chapter, as added by chapter five hundred
forty-five of the laws of nineteen hundred seventy-eight, to the state
office of temporary and disability assistance, the department of health
or to the state office of the medicaid inspector general for the purpose
of verifying eligibility for and entitlement to amounts of benefits
under the social services law or similar law of another jurisdiction,
locating absent parents or other persons legally responsible for the
S. 9009--B 10
support of applicants for or recipients of public assistance and care
under the social services law and persons legally responsible for the
support of a recipient of services under section one hundred eleven-g of
the social services law and, in appropriate cases, establishing support
obligations pursuant to the social services law and the family court act
or similar provision of law of another jurisdiction for the purpose of
evaluating the effect on earnings of participation in employment, train-
ing or other programs designed to promote self-sufficiency authorized
pursuant to the social services law by current recipients of public
assistance and care and by former applicants and recipients of public
assistance and care, (except that with regard to former recipients,
information which relates to a particular former recipient shall be
provided with client identifying data deleted), to the state office of
temporary and disability assistance for the purpose of determining the
eligibility of any child in the custody, care and custody or custody and
guardianship of a local social services district or of the office of
children and family services for federal payments for foster care and
adoption assistance pursuant to the provisions of title IV-E of the
federal social security act by providing information with respect to the
parents, the stepparents, the child and the siblings of the child who
were living in the same household as such child during the month that
the court proceedings leading to the child's removal from the household
were initiated, or the written instrument transferring care and custody
of the child pursuant to the provisions of section three hundred fifty-
eight-a or three hundred eighty-four-a of the social services law was
signed, provided however that the office of temporary and disability
assistance shall only use the information obtained pursuant to this
subdivision for the purpose of determining the eligibility of such child
for federal payments for foster care and adoption assistance pursuant to
the provisions of title IV-E of the federal social security act, and to
the state department of labor, or other individuals designated by the
commissioner of labor, for the purpose of the administration of such
department's unemployment insurance program, employment services
program, federal and state employment and training programs, employment
statistics and labor market information programs, worker protection
programs, federal programs for which the department has administrative
responsibility or for other purposes deemed appropriate by the commis-
sioner of labor consistent with the provisions of the labor law, and
redisclosure of such information in accordance with the provisions of
sections five hundred thirty-six and five hundred thirty-seven of the
labor law, or the furnishing of information, which is obtained from the
wage reporting system operated pursuant to section one hundred seventy-
one-a of this chapter, as added by chapter five hundred forty-five of
the laws of nineteen hundred seventy-eight, to the state office of
temporary and disability assistance so that it may furnish such informa-
tion to public agencies of other jurisdictions with which the state
office of temporary and disability assistance has an agreement pursuant
to paragraph (h) or (i) of subdivision three of section twenty of the
social services law, and to the state office of temporary and disability
assistance for the purpose of fulfilling obligations and responsibil-
ities otherwise incumbent upon the state department of labor, under
section one hundred twenty-four of the federal family support act of
nineteen hundred eighty-eight, by giving the federal parent locator
service, maintained by the federal department of health and human
services, prompt access to such information as required by such act, or
to the state department of health to verify eligibility under the child
S. 9009--B 11
health insurance plan pursuant to subdivisions two and two-a of section
two thousand five hundred eleven of the public health law, to verify
eligibility under the medical assistance and family health plus programs
pursuant to subdivision eight of section three hundred sixty-six-a of
the social services law, and to verify eligibility for the program for
elderly pharmaceutical insurance coverage under title three of article
two of the elder law, or to the office of vocational and educational
services for individuals with disabilities of the education department,
the commission for the blind and any other state vocational rehabili-
tation agency, for purposes of obtaining reimbursement from the federal
social security administration for expenditures made by such office,
commission or agency on behalf of disabled individuals who have achieved
economic self-sufficiency or to the higher education services corpo-
ration for the purpose of assisting the corporation in default
prevention and default collection of education loan debt, including
judgments, owed to the federal or New York state government; provided,
however, that such information shall be limited to the names, social
security numbers, home and/or business addresses, and employer names of
defaulted or delinquent student loan borrowers, or to the office of the
state comptroller for purposes of verifying the income of a retired
member of a retirement system or pension plan administered by the state
or any of its political subdivisions who returns to public employment.
Provided, however, that with respect to employee information the
office of temporary and disability assistance shall only be furnished
with the names, social security account numbers and gross wages of those
employees who are (A) applicants for or recipients of benefits under the
social services law, or similar provision of law of another jurisdiction
(pursuant to an agreement under subdivision three of section twenty of
the social services law) or, (B) absent parents or other persons legally
responsible for the support of applicants for or recipients of public
assistance and care under the social services law or similar provision
of law of another jurisdiction (pursuant to an agreement under subdivi-
sion three of section twenty of the social services law), or (C) persons
legally responsible for the support of a recipient of services under
section one hundred eleven-g of the social services law or similar
provision of law of another jurisdiction (pursuant to an agreement under
subdivision three of section twenty of the social services law), or (D)
employees about whom wage reporting system information is being
furnished to public agencies of other jurisdictions, with which the
state office of temporary and disability assistance has an agreement
pursuant to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, or (E) employees about whom wage reporting
system information is being furnished to the federal parent locator
service, maintained by the federal department of health and human
services, for the purpose of enabling the state office of temporary and
disability assistance to fulfill obligations and responsibilities other-
wise incumbent upon the state department of labor, under section one
hundred twenty-four of the federal family support act of nineteen
hundred eighty-eight, and, only if, the office of temporary and disabil-
ity assistance certifies to the commissioner that such persons are such
applicants, recipients, absent parents or persons legally responsible
for support or persons about whom information has been requested by a
public agency of another jurisdiction or by the federal parent locator
service and further certifies that in the case of information requested
under agreements with other jurisdictions entered into pursuant to
subdivision three of section twenty of the social services law, that
S. 9009--B 12
such request is in compliance with any applicable federal law. Provided,
further, that where the office of temporary and disability assistance
requests employee information for the purpose of evaluating the effects
on earnings of participation in employment, training or other programs
designed to promote self-sufficiency authorized pursuant to the social
services law, the office of temporary and disability assistance shall
only be furnished with the quarterly gross wages (excluding any refer-
ence to the name, social security number or any other information which
could be used to identify any employee or the name or identification
number of any employer) paid to employees who are former applicants for
or recipients of public assistance and care and who are so certified to
the commissioner by the commissioner of the office of temporary and
disability assistance. Provided, further, that with respect to employee
information, the department of health shall only be furnished with the
information required pursuant to the provisions of paragraph (f) of
subdivision two and subdivision two-a of section two thousand five
hundred eleven of the public health law and subdivision eight of section
three hundred sixty-six-a of the social services law, with respect to
those individuals whose eligibility under the child health insurance
plan, medical assistance program, and family health plus program is to
be determined pursuant to such provisions and with respect to those
members of any such individual's household whose income affects such
individual's eligibility and who are so certified to the commissioner or
by the department of health. Provided, further, that wage reporting
information shall be furnished to the office of vocational and educa-
tional services for individuals with disabilities of the education
department, the commission for the blind and any other state vocational
rehabilitation agency only if such office, commission or agency, as
applicable, certifies to the commissioner that such information is
necessary to obtain reimbursement from the federal social security
administration for expenditures made on behalf of disabled individuals
who have achieved self-sufficiency. Reports and returns shall be
preserved for three years and thereafter until the commissioner orders
them to be destroyed.
§ 4. This act shall take effect immediately.
PART B
Section 1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 48 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, AN AMOUNT OF UP TO TWENTY-FIVE THOUSAND DOLLARS TO THE
EXTENT ALLOWED AS A FEDERAL DEDUCTION PURSUANT TO SECTION TWO HUNDRED
TWENTY-FOUR OF THE INTERNAL REVENUE CODE.
§ 2. This act shall take effect immediately.
PART C
Section 1. This act shall be known and may be cited as the "NY-PROTECT
ACT".
§ 2. The tax law is amended by adding a new section 27-a to read as
follows:
§ 27-A. IMPROPER SUSPENSION OF TAX-EXEMPT STATUS BY THE UNITED STATES
INTERNAL REVENUE SERVICE. 1. NOTWITHSTANDING ANY STATE OR LOCAL LAW,
EVERY ORGANIZATION DESIGNATED BY THE INTERNAL REVENUE SERVICE OF THE
UNITED STATES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AS A
S. 9009--B 13
TAX-EXEMPT ORGANIZATION AS OF JANUARY NINETEENTH, TWO THOUSAND TWENTY-
FIVE SHALL AUTOMATICALLY MAINTAIN THEIR TAX-EXEMPT STATUS FOR NEW YORK
STATE PURPOSES UNTIL THE EARLIER OF: (A) A DETERMINATION BY THE COMMIS-
SIONER PURSUANT TO AN APPLICATION AS PROVIDED BY THIS SECTION; OR (B)
JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
2. (A) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
COMMISSIONER SHALL ESTABLISH A PROCEDURE OR APPLICATION ALLOWING AN
ORGANIZATION THAT BELIEVES THAT THE UNITED STATES INTERNAL REVENUE
SERVICE ILLEGALLY OR IMPROPERLY REVOKED ITS DESIGNATION AS A TAX-EXEMPT
ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE TO
ESTABLISH TO THE SATISFACTION OF THE COMMISSIONER THAT THE ORGANIZATION
MEETS THE REQUIREMENTS OF THAT SECTION WITHOUT REGARD TO SUCH REVOCATION
OR FEDERAL STATUS. THE COMMISSIONER SHALL DESIGNATE SUCH ORGANIZATION AS
A "STATE PROTECTED NOT-FOR-PROFIT ORGANIZATION" UPON SUCH SATISFACTION.
(B) THE COMMISSIONER SHALL AUTOMATICALLY DESIGNATE AN ORGANIZATION AS
A "STATE PROTECTED NOT-FOR-PROFIT ORGANIZATION" IF THE ORGANIZATION
PROVIDES TO THE COMMISSIONER A COPY OF A FEDERAL OR STATE COURT RULING
IN EFFECT HOLDING THAT THE UNITED STATES INTERNAL REVENUE SERVICE ACTED
OR LIKELY ACTED ILLEGALLY WHEN IT REVOKED THE TAX-EXEMPT STATUS OF THE
ORGANIZATION, REGARDLESS OF WHETHER THE UNITED STATES INTERNAL REVENUE
SERVICE HAS COMPLIED WITH OR IS APPEALING SUCH RULING.
3. AN ORGANIZATION WHOSE REQUEST TO BE DESIGNATED AS A "STATE
PROTECTED NOT-FOR-PROFIT ORGANIZATION" IS DENIED BY THE COMMISSIONER
SHALL HAVE THE RIGHT TO APPEAL THE DETERMINATION USING THE PROCEDURE
PRESCRIBED BY ARTICLE FORTY OF THIS CHAPTER OR OTHERWISE PRESCRIBED
PURSUANT TO THIS CHAPTER, AND MUST, IN SUCH PROCEEDING, CHALLENGE THE
MERITS OF THE DETERMINATION MADE BY THE UNITED STATES INTERNAL REVENUE
SERVICE.
4. A "STATE PROTECTED NOT-FOR-PROFIT ORGANIZATION" SHALL MAINTAIN ITS
TAX-EXEMPT STATUS UNDER NEW YORK STATE AND LOCAL LAW WITHOUT REGARD TO
THE CHANGE IN ITS FEDERAL STATUS. IT SHALL, NOTWITHSTANDING ANY OTHER
STATE OR LOCAL LAW OR RULE, BE TREATED AS IF IT WERE AN ORGANIZATION
DESIGNATED AS A 501(C)(3) ORGANIZATION BY THE UNITED STATES INTERNAL
REVENUE SERVICE IN RESPECT TO ANY TAX, FEE OR OTHER IMPOSITION ADMINIS-
TERED BY THE COMMISSIONER; AND IN RESPECT TO ANY SALE, TRANSFER OR
ASSIGNMENT; AND IN RESPECT TO ANY TAX, FEE OR OTHER IMPOSITION ADMINIS-
TERED BY A LOCAL GOVERNMENT; AND IN RESPECT TO ANY CONTRACT, GRANT,
BENEFIT, LICENSE, OBLIGATION, QUALIFICATION, PROCEDURE OR PROGRAM ESTAB-
LISHED OR OPERATED BY OR WITH THE STATE OR A LOCAL GOVERNMENT, INCLUSIVE
OF ANY AGENCY, AUTHORITY OR SUBDIVISION THEREOF.
5. (A) THE COMMISSIONER SHALL PROVIDE A DETERMINATION TO AN ORGANIZA-
TION SATISFYING THE REQUIREMENTS IMPOSED BY SUBDIVISION TWO OF THIS
SECTION WITH RESPECT TO A CERTIFICATION OF ITS DESIGNATION AS A "STATE
PROTECTED NOT-FOR-PROFIT ORGANIZATION" WITHIN THIRTY DAYS OF RECEIPT OF
A COMPLETED APPLICATION.
(B) NOTWITHSTANDING ANY STATE OR LOCAL LAW, RULE OR REGULATION OR
PROCEDURE, THIS CERTIFICATION SHALL BE ACCEPTED IN LIEU OF ANY REQUIRE-
MENT THAT AN ORGANIZATION PROVIDE DOCUMENTATION, OR OTHERWISE CERTIFY OR
AFFIRM, THAT IT IS AN ORGANIZATION EXEMPT FROM TAXATION UNDER SECTION
501(C)(3) OF THE INTERNAL REVENUE CODE.
(C) THE CERTIFICATION SHALL REMAIN IN EFFECT UNTIL THE EARLIER OF
EITHER APRIL FIFTEENTH OF THE YEAR FOLLOWING THE ISSUANCE OF SUCH
CERTIFICATE, OR ONE YEAR AFTER THE DATE THAT THE UNITED STATES INTERNAL
REVENUE SERVICE RESTORES THE DESIGNATION OF THE ORGANIZATION AS TAX-EX-
EMPT; PROVIDED THAT THE COMMISSIONER MAY REVOKE THE CERTIFICATE AND
DESIGNATION AT ANY TIME IF THE COMMISSIONER DETERMINES THAT THE ORGAN-
S. 9009--B 14
IZATION: (I) NO LONGER SATISFIES THE REQUIREMENTS SET FORTH IN SUBDIVI-
SION TWO OF THIS SECTION; OR (II) PROVIDED FALSE INFORMATION MATERIAL TO
THE DETERMINATION OF THE COMMISSIONER THAT THE ORGANIZATION SATISFIED
SUCH REQUIREMENTS.
(D) THE COMMISSIONER MAY ESTABLISH A TRUNCATED APPLICATION OR PROCE-
DURE TO ALLOW FOR THE RENEWAL OR RE-ISSUANCE OF SUCH CERTIFICATION.
§ 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 19, 2025, and
shall expire and be deemed repealed January 20, 2029.
PART D
Section 1. Paragraph (c) of section 42 of the tax law, as amended by
section 1 of part N of chapter 59 of the laws of 2019, is amended to
read as follows:
(c) For purposes of this section, the term "eligible farmer" [means a
taxpayer whose federal gross income from farming as defined] SHALL HAVE
THE SAME MEANING AS SET FORTH in subsection (n) of section six hundred
six of this chapter [for the taxable year is at least two-thirds of
excess federal gross income. Excess federal gross income means the
amount of federal gross income from all sources for the taxable year in
excess of thirty thousand dollars. For purposes of this section,
payments from the state's farmland protection program, administered by
the department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers].
§ 2. Paragraph (b) of section 42-a of the tax law, as amended by
section 2 of part KK of chapter 59 of the laws of 2025, is amended to
read as follows:
(b) For purposes of this section, the term "eligible farm employer"
means a taxpayer who received an overtime expense certificate pursuant
to section three hundred thirty-five of the agriculture and markets law
and [whose federal gross income from farming] WHO IS AN ELIGIBLE FARMER,
as defined in subsection (n) of section six hundred six of this chapter
for the taxable year [is at least two-thirds of excess federal gross
income. Excess federal gross income means the amount of federal gross
income from all sources for the taxable year in excess of thirty thou-
sand dollars. For purposes of this section, payments from the state's
farmland protection program, administered by the department of agricul-
ture and markets, shall be included as federal gross income from farming
for otherwise eligible farmers].
§ 3. Subdivision 11 of section 210-B of the tax law is amended by
adding a new paragraph (a-1) to read as follows:
(A-1) NEW YORK GROSS INCOME FROM FARMING. FOR PURPOSES OF THIS SUBDI-
VISION, THE TERM "NEW YORK GROSS INCOME FROM FARMING" MEANS A TAXPAYER'S
FEDERAL GROSS INCOME FROM FARMING, PLUS PAYMENTS FROM THE STATE'S FARM-
LAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE
AND MARKETS, INCOME FROM A COMMERCIAL HORSE BOARDING OPERATION AS
DEFINED BY SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF THE
AGRICULTURE AND MARKETS LAW, AND INCOME FROM THE PRODUCTION OR SALE OF
MAPLE SYRUP, CHRISTMAS TREES, AND CIDER OR WINE FROM A LICENSED NEW YORK
STATE FARM CIDERY OR WINERY, AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C
AND ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
§ 4. Paragraph (b) of subdivision 11 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(b) Eligible farmer. For purposes of this subdivision, the term
"eligible farmer" means a taxpayer whose [federal] NEW YORK gross income
S. 9009--B 15
from farming for the taxable year, OR WHOSE AVERAGE NEW YORK GROSS
INCOME FROM FARMING FOR THE CURRENT YEAR AND TWO PRIOR TAXABLE YEARS, is
at least two-thirds of [excess] SUCH TAXPAYER'S federal gross income
FROM ALL SOURCES LESS THIRTY THOUSAND DOLLARS. The term "eligible farm-
er" also includes a corporation other than the taxpayer of record for
qualified agricultural land which has paid the school district property
taxes on such land pursuant to a contract for the future purchase of
such land; provided that such corporation [has a federal gross income
from farming for the taxable year which is at least two-thirds of excess
federal gross income; and provided further that, in determining such
income eligibility, a taxpayer may, for any taxable year, use the aver-
age of such federal gross income from farming for that taxable year and
such income for the two consecutive taxable years immediately preceding
such taxable year. Excess federal gross income means the amount of
federal gross income from all sources for the taxable year in excess of
thirty thousand dollars. For the purposes of this paragraph, payments
from the state's farmland protection program, administered by the
department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers] MEETS THE
DEFINITION OF ELIGIBLE FARMER PURSUANT TO THIS PARAGRAPH.
§ 5. Paragraph (i) of subdivision 11 of section 210-B of the tax law
is REPEALED.
§ 6. Paragraph (b) of subdivision 52 of section 210-B of the tax law,
as added by section 4 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(b) Eligible farmer. For purposes of this subdivision, the term
"eligible farmer" [means a taxpayer whose federal gross income from
farming for the taxable year is at least two-thirds of excess federal
gross income. Excess federal gross income means the amount of federal
gross income from all sources for the taxable year in excess of thirty
thousand dollars. For purposes of this paragraph, payments from the
state's farmland protection program, administered by the department of
agriculture and markets, shall be included as federal gross income from
farming for otherwise eligible farmers] SHALL HAVE THE SAME MEANING AS
SET FORTH SUBDIVISION ELEVEN OF THIS SECTION.
§ 7. Subsection (n) of section 606 of the tax law is amended by adding
a new paragraph 1-a to read as follows:
(1-A) NEW YORK GROSS INCOME FROM FARMING. FOR PURPOSES OF THIS
SUBSECTION, THE TERM "NEW YORK GROSS INCOME FROM FARMING" MEANS A
TAXPAYER'S FEDERAL GROSS INCOME FROM FARMING, PLUS PAYMENTS FROM THE
STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF
AGRICULTURE AND MARKETS, INCOME FROM A COMMERCIAL HORSE BOARDING OPERA-
TION AS DEFINED BY SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF
THE AGRICULTURE AND MARKETS LAW, AND INCOME FROM THE PRODUCTION OR SALE
OF MAPLE SYRUP, CHRISTMAS TREES, AND CIDER OR WINE FROM A LICENSED NEW
YORK STATE FARM CIDERY OR WINERY, AS PROVIDED FOR IN SECTION FIFTY-
EIGHT-C AND ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
§ 8. Paragraph 2 of subsection (n) of section 606 of the tax law, as
amended by chapter 297 of the laws of 2010, is amended to read as
follows:
(2) Eligible farmer. For purposes of this subsection, the term "eligi-
ble farmer" means a taxpayer whose [federal] NEW YORK gross income from
farming for the taxable year, OR WHOSE AVERAGE NEW YORK GROSS INCOME
FROM FARMING FOR THE CURRENT YEAR AND TWO PRIOR TAXABLE YEARS, is at
least two-thirds of [excess] SUCH TAXPAYER'S federal gross income FROM
ALL SOURCES LESS THIRTY THOUSAND DOLLARS. The term "eligible farmer"
S. 9009--B 16
also includes an individual other than the taxpayer of record for quali-
fied agricultural land who has paid the school district property taxes
on such land pursuant to a contract for the future purchase of such
land; provided that such individual [has a federal gross income from
farming for the taxable year which is at least two-thirds of excess
federal gross income; and provided further that, in determining such
income eligibility, a taxpayer may, for any taxable year, use the aver-
age of such federal gross income from farming for that taxable year and
such income for the two consecutive taxable years immediately preceding
such taxable year. Excess federal gross income means the amount of
federal gross income from all sources for the taxable year reduced by
the sum (not to exceed thirty thousand dollars) of those items included
in federal gross income which consist of (i) earned income, (ii) pension
payments, including social security payments, (iii) interest, and (iv)
dividends. For purposes of this paragraph, the term "earned income"
shall mean wages, salaries, tips and other employee compensation, and
those items of gross income which are includible in the computation of
net earnings from self-employment. For the purposes of this paragraph,
payments from the state's farmland protection program, administered by
the department of agriculture and markets, shall be included as federal
gross income from farming for otherwise eligible farmers] MEETS THE
DEFINITION OF "ELIGIBLE FARMER" PURSUANT TO THIS PARAGRAPH.
§ 9. Paragraph 8 of subsection (n) of section 606 of the tax law is
REPEALED.
§ 10. Paragraph 2 of subsection (n-2) of section 606 of the tax law,
as added by section 1 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(2) Eligible farmer. For purposes of this subsection, the term "eligi-
ble farmer" [means a taxpayer whose federal gross income from farming
for the taxable year is at least two-thirds of excess federal gross
income. Excess federal gross income means the amount of federal gross
income from all sources for the taxable year reduced by the sum (not to
exceed thirty thousand dollars) of those items included in federal gross
income that consist of: (i) earned income, (ii) pension payments,
including social security payments, (iii) interest, and (iv) dividends.
For purposes of this paragraph, the term "earned income" shall mean
wages, salaries, tips and other employee compensation, and those items
of gross income that are includible in the computation of net earnings
from self-employment. For the purposes of this paragraph, payments from
the state's farmland protection program, administered by the department
of agriculture and markets, shall be included as federal gross income
from farming for otherwise eligible farmers] SHALL HAVE THE SAME MEANING
AS SET FORTH IN SUBSECTION (N) OF THIS SECTION.
§ 11. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2026.
PART E
Section 1. The opening paragraph of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 1 of subpart A of part
I of chapter 59 of the laws of 2023, is amended to read as follows:
For taxable years beginning before January first, two thousand
sixteen, the amount prescribed by this paragraph shall be computed at
the rate of seven and one-tenth percent of the taxpayer's business
income base. For taxable years beginning on or after January first, two
thousand sixteen, the amount prescribed by this paragraph shall be six
S. 9009--B 17
and one-half percent of the taxpayer's business income base. For taxable
years beginning on or after January first, two thousand twenty-one and
before January first, two thousand [twenty-seven] TWENTY-SIX for any
taxpayer with a business income base for the taxable year of more than
five million dollars, the amount prescribed by this paragraph shall be
seven and one-quarter percent of the taxpayer's business income base.
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX AND BEFORE JANUARY FIRST, TWO THOUSAND THIRTY FOR ANY TAXPAY-
ER WITH A BUSINESS INCOME BASE FOR THE TAXABLE YEAR OF MORE THAN FIVE
MILLION DOLLARS, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE NINE
PERCENT OF THE TAXPAYER'S BUSINESS INCOME BASE. The taxpayer's business
income base shall mean the portion of the taxpayer's business income
apportioned within the state as hereinafter provided. However, in the
case of a small business taxpayer, as defined in paragraph (f) of this
subdivision, the amount prescribed by this paragraph shall be computed
pursuant to subparagraph (iv) of this paragraph and in the case of a
manufacturer, as defined in subparagraph (vi) of this paragraph, the
amount prescribed by this paragraph shall be computed pursuant to
subparagraph (vi) of this paragraph, and, in the case of a qualified
emerging technology company, as defined in subparagraph (vii) of this
paragraph, the amount prescribed by this paragraph shall be computed
pursuant to subparagraph (vii) of this paragraph.
§ 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 2 of subpart A of part I of chap-
ter 59 of the laws of 2023, is amended to read as follows:
(1) (i) The amount prescribed by this paragraph shall be computed
at .15 percent for each dollar of the taxpayer's total business capital,
or the portion thereof apportioned within the state as hereinafter
provided for taxable years beginning before January first, two thousand
sixteen. However, in the case of a cooperative housing corporation as
defined in the internal revenue code, the applicable rate shall be .04
percent until taxable years beginning on or after January first, two
thousand twenty and zero percent for taxable years beginning on or after
January first, two thousand twenty-one. The rate of tax for subsequent
tax years shall be as follows: .125 percent for taxable years beginning
on or after January first, two thousand sixteen and before January
first, two thousand seventeen; .100 percent for taxable years beginning
on or after January first, two thousand seventeen and before January
first, two thousand eighteen; .075 percent for taxable years beginning
on or after January first, two thousand eighteen and before January
first, two thousand nineteen; .050 percent for taxable years beginning
on or after January first, two thousand nineteen and before January
first, two thousand twenty; .025 percent for taxable years beginning on
or after January first, two thousand twenty and before January first,
two thousand twenty-one; and .1875 percent for years beginning on or
after January first, two thousand twenty-one and before January first,
two thousand [twenty-seven] THIRTY, and zero percent for taxable years
beginning on or after January first, two thousand [twenty-seven] THIRTY.
Provided however, for taxable years beginning on or after January first,
two thousand twenty-one, the rate of tax for a small business as defined
in paragraph (f) of this subdivision shall be zero percent. The rate of
tax for a qualified New York manufacturer shall be .132 percent for
taxable years beginning on or after January first, two thousand fifteen
and before January first, two thousand sixteen, .106 percent for taxable
years beginning on or after January first, two thousand sixteen and
before January first, two thousand seventeen, .085 percent for taxable
S. 9009--B 18
years beginning on or after January first, two thousand seventeen and
before January first, two thousand eighteen; .056 percent for taxable
years beginning on or after January first, two thousand eighteen and
before January first, two thousand nineteen; .038 percent for taxable
years beginning on or after January first, two thousand nineteen and
before January first, two thousand twenty; .019 percent for taxable
years beginning on or after January first, two thousand twenty and
before January first, two thousand twenty-one; and zero percent for
years beginning on or after January first, two thousand twenty-one. (ii)
In no event shall the amount prescribed by this paragraph exceed three
hundred fifty thousand dollars for qualified New York manufacturers and
for all other taxpayers five million dollars.
§ 3. This act shall take effect immediately.
PART F
Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax
law is amended by adding four new subparagraphs 24, 25, 26, and 27 to
read as follows:
(24) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(25) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(26) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
(27) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY AS DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF ANY DEDUCTION
MADE PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE AS IT SHALL
HAVE BEEN IN EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO.
§ 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding three new subparagraphs 28, 29, and 30 to read as
follows:
(28) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
S. 9009--B 19
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(29) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
(30) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF THE DEDUCTION
ALLOWABLE UNDER SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE
CODE.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
three new paragraphs 44, 45 and 46 to read as follows:
(44) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(45) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
(46) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE, WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF THE DEDUCTION
ALLOWABLE UNDER SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE
CODE.
§ 4. Subsection (c) of section 612 of the tax law is amended by adding
four new paragraphs 48, 49, 50, and 51 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(49) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
S. 9009--B 20
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(50) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
(51) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY AS DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF ANY DEDUCTION
MADE PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE AS IT SHALL
HAVE BEEN IN EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO.
§ 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
amended by adding four new subparagraphs (X), (Y), (Z), and (AA) to read
as follows:
(X) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT
TO SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE AS IF THE TAXPAYER HAS NOT MADE AN ELECTION PURSUANT TO
SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE.
(Y) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY FOREIGN AND DOMESTIC RESEARCH OR
EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-
FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR INCURRED IN EACH
TAXABLE YEAR ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AMOR-
TIZED OVER A SIXTY-MONTH PERIOD AS IF THE ELECTION IN SUBSECTION (C) OF
SECTION 174A OF THE INTERNAL REVENUE CODE APPLIED TO SUCH FOREIGN AND
DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
(Z) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE REMAINING AMOUNT OF ANY FOREIGN AND DOMESTIC
RESEARCH OR EXPERIMENTAL EXPENDITURES, AS DEFINED IN SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE, PAID OR
INCURRED PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, DETERMINED AS
IF SECTION ONE HUNDRED SEVENTY-FOUR OF THE INTERNAL REVENUE CODE IN
EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO, APPLIED TO SUCH
EXPENDITURES.
(AA) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY AS DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF ANY DEDUCTION
MADE PURSUANT TO SECTION 179 OF THE INTERNAL REVENUE CODE AS IT SHALL
HAVE BEEN IN EFFECT AS OF JANUARY FIRST, TWO THOUSAND TWENTY-TWO.
§ 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding three new subparagraphs (AA), (BB), and (CC) to read
as follows:
(AA) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF QUALIFIED PRODUCTION PROPERTY DESCRIBED
S. 9009--B 21
IN PARAGRAPH TWO OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A
DEDUCTION UNDER SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-SEVEN OF THE
INTERNAL REVENUE CODE THAT INCLUDED AN ALLOWANCE SOLELY AS A RESULT OF
AN ELECTION MADE PURSUANT TO SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE.
(BB) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, ANY AMOUNT CLAIMED AS A DEDUCTION UNDER SECTIONS ONE
HUNDRED SEVENTY-FOUR AND 174A OF THE INTERNAL REVENUE CODE IN EFFECT AS
OF JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ANY AMOUNT CLAIMED AS A
DEDUCTION PURSUANT TO FEDERAL PUBLIC LAW 119-21, TITLE VII, SECTION
70302(F)(2)(A), FOR FOREIGN AND DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES, AS DEFINED IN SECTIONS ONE HUNDRED SEVENTY-FOUR AND 174A
OF THE INTERNAL REVENUE CODE.
(CC) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, IN THE CASE OF SECTION 179 PROPERTY DESCRIBED IN
SUBSECTION (D) OF SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL
REVENUE CODE WITH RESPECT TO SUCH PROPERTY THE AMOUNT OF THE DEDUCTION
ALLOWABLE UNDER SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE
CODE.
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2025.
PART G
Section 1. Subdivision (b) of section 11-506 of the administrative
code of the city of New York is amended by adding four new paragraphs
19, 20, 21 and 22 to read as follows:
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS CHAP-
TER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY AS
DESCRIBED IN SECTION TWELVE HUNDRED FORTY-FIVE OF THE INTERNAL REVENUE
CODE.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(21) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(22) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
S. 9009--B 22
§ 2. Paragraph (c) of section 11-506 of the administrative code of the
city of New York is amended by adding three new paragraphs 14, 15 and 16
to read as follows:
(14) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY AS DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION
OR DEDUCTION IN DETERMINING FEDERAL GROSS INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(15) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(16) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL GROSS INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding three new
subparagraphs 18, 19 and 20 to read as follows:
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
S. 9009--B 23
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 4. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding four new
subparagraphs 23, 24, 25 and 26 to read as follows:
(23) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(24) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(25) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(26) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 5. Clause (E) of subparagraph (2) of paragraph (a) of subdivision 3
of section 11-604 of the administrative code of the city of New York, as
added by chapter 59 of the laws of 2019, is amended to read as follows:
(E) notwithstanding any other provision of this paragraph, [net global
intangible low-taxed income shall be included in the receipts fraction
as provided in this clause. Receipts constituting net global intangible
low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S
S. 9009--B 24
FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE
INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
CLAUSE (I) OF SECTION 250(A)(1) (B) OF SUCH CODE shall not be included
in the numerator of the receipts fraction. [Receipts constituting net
global intangible low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED
IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF
SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE
DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE
shall be included in the denominator of the receipts fraction. [For
purposes of this clause, the term "net global intangible low-taxed
income" means the amount that would have been required to be included in
the taxpayer's federal gross income pursuant to subsection (a) of
section 951A of the internal revenue code less the amount of the
deduction that would have been allowed under clause (i) of section
250(a)(1)(B) of such code if the taxpayer had not made an election under
subchapter s of chapter one of the internal revenue code] FOR ANY TAXA-
BLE YEAR, SUCH AMOUNT SHALL BE CALCULATED PURSUANT TO SUCH PROVISIONS OF
THE INTERNAL REVENUE CODE PROVISIONS AS IN EFFECT IN SUCH TAXABLE YEAR.
§ 6. Subdivision (b) of section 11-641 of the administrative code of
the city of New York is amended by adding four new paragraphs 18, 19, 20
and 21 to read as follows:
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(21) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 7. Subdivision (e) of section 11-641 of the administrative code of
the city of New York is amended by adding three new paragraphs 17, 18
and 19 to read as follows:
(17) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
S. 9009--B 25
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(18) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 8. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding three new
subparagraphs 19, 20 and 21 to read as follows:
(19) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, FOR TAXPAYERS THAT HAVE MADE AN ELECTION PURSUANT
TO PARAGRAPH SIX OF SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
THE INTERNAL REVENUE CODE WITH RESPECT TO ANY QUALIFIED PRODUCTION PROP-
ERTY DEFINED IN SUCH SUBSECTION, THE AMOUNT ALLOWED AS AN EXCLUSION OR
DEDUCTION IN DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF
SUCH QUALIFIED PRODUCTION PROPERTY, PURSUANT TO SUBSECTION (A) OF
SECTION ONE HUNDRED SIXTY-SEVEN OF SUCH CODE SO THAT THE DEPRECIATION
DEDUCTION AND ADJUSTED BASIS REDUCTION OR ANY OTHER DEDUCTION OR EXCLU-
SION ALLOWED BY SUBSECTION (N) OF SECTION ONE HUNDRED SIXTY-EIGHT OF
SUCH CODE SHALL NOT APPLY.
(20) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE SUBJECT TO THE
DOLLAR LIMITATIONS IN PARAGRAPHS ONE AND TWO OF SUBSECTION (B) OF SUCH
SECTION THAT WERE IN EFFECT FOR THE LAST TAX YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-FIVE, ADJUSTED IN ACCORDANCE WITH PARA-
GRAPH SIX OF SUCH SUBSECTION USING THE AMOUNTS IN PARAGRAPHS ONE AND TWO
THAT WERE IN EFFECT FOR SUCH TAX YEAR AND, FOR THE PURPOSES OF APPLYING
CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (F) OF
SECTION ONE OF THE INTERNAL REVENUE CODE, SUBSTITUTING "CALENDAR YEAR
2017" FOR "CALENDAR YEAR 2016".
S. 9009--B 26
(21) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE, PROVIDED THAT SUCH EXCLUSION OR DEDUCTION IS
CALCULATED IN THE SAME MANNER AS AN EXCLUSION OR DEDUCTION FOR A FOREIGN
RESEARCH OR EXPERIMENTAL EXPENDITURE DESCRIBED IN SECTION ONE HUNDRED
SEVENTY-FOUR OF SUCH CODE, EXCEPT THAT THE AMORTIZATION DEDUCTION OF
SUCH EXPENDITURES SHALL BE RATED OVER THE FIVE-YEAR PERIOD BEGINNING
WITH THE MIDPOINT OF THE TAXABLE YEAR IN WHICH SUCH EXPENDITURES ARE
PAID OR INCURRED.
§ 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding four new
subparagraphs 24, 25, 26 and 27 to read as follows:
(24) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME OF ANY DEPRECIATION OF QUALIFIED
PRODUCTION PROPERTY DESCRIBED IN SUBSECTION (N) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
SUBCHAPTER, SUCH PROPERTY SHALL NOT BE TREATED AS SECTION 1245 PROPERTY
AS DESCRIBED IN SECTION ONE THOUSAND TWO HUNDRED FORTY-FIVE OF THE
INTERNAL REVENUE CODE.
(25) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (A) OF SECTION
ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
(26) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TWENTY-FOUR, THE AMOUNT ALLOWED AS AN EXCLUSION OR DEDUCTION IN
DETERMINING FEDERAL TAXABLE INCOME FOR DOMESTIC RESEARCH OR EXPERIMENTAL
EXPENDITURES PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR-A OF THE
INTERNAL REVENUE CODE.
(27) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE INCREASE IN THE AMOUNT ALLOWED AS A FEDERAL INTER-
EST DEDUCTION PURSUANT TO SECTION ONE HUNDRED SIXTY-THREE OF THE INTER-
NAL REVENUE CODE ATTRIBUTABLE TO ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION. FOR THE
PURPOSES OF THIS SUBDIVISION, "ADDITIONAL ADJUSTED TAXABLE INCOME THAT
IS ATTRIBUTABLE TO DEPRECIATION, AMORTIZATION, OR DEPLETION" MEANS THE
DIFFERENCE BETWEEN THE AMOUNT OF ADJUSTED TAXABLE INCOME COMPUTED PURSU-
ANT TO PARAGRAPH EIGHT OF SUBSECTION (J) OF SECTION ONE HUNDRED SIXTY-
THREE OF THE INTERNAL REVENUE CODE AND SUCH AMOUNT CALCULATED WITHOUT
REGARD TO CLAUSE (V) OF SUBPARAGRAPH (A) OF SUCH PARAGRAPH.
§ 10. Subdivision 5-a of section 11-654.2 of the administrative code
of the city of New York, as added by chapter 59 of the laws of 2019, is
amended to read as follows:
5-a. Notwithstanding any other provision of this section, [net global
intangible low-taxed income shall be included in the receipts fraction
as provided in this subdivision. Receipts constituting net global intan-
gible low-taxed income] THE AMOUNT REQUIRED TO BE INCLUDED IN THE
TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION
951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION
ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE shall not
be included in the numerator of the receipts fraction. [Receipts consti-
tuting net global intangible low-taxed income] THE AMOUNT REQUIRED TO BE
INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION
(A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE
S. 9009--B 27
DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE
shall be included in the denominator of the receipts fraction. [For
purposes of this subdivision, the term "net global intangible low-taxed
income" means the amount required to be included in the taxpayer's
federal gross income pursuant to subsection (a) of section 951A of the
internal revenue code less the amount of the deduction allowed under
clause (i) of section 250(a)(1)(B) of such code] FOR ANY TAXABLE YEAR,
SUCH AMOUNT SHALL BE CALCULATED PURSUANT TO SUCH PROVISIONS OF THE
INTERNAL REVENUE CODE PROVISIONS AS IN EFFECT IN SUCH TAXABLE YEAR.
§ 11. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after December 31, 2024, and
shall apply to taxable years beginning after December 31, 2024.
PART H
Section 1. Subsection (c) of section 861 of the tax law, as amended by
section 2 of subpart C of part J of chapter 59 of the laws of 2023, is
amended to read as follows:
(c) The annual election must be made on or before [the due date of the
first estimated payment under section eight hundred sixty-four of this
article] SEPTEMBER FIFTEENTH and will take effect for the current taxa-
ble year. Only one election may be made during each calendar year. An
election made under this section is irrevocable after [the due date]
SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR.
§ 2. Subsection (b) of section 864 of the tax law, as added by section
1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by
chapter 555 of the laws of 2022, is amended to read as follows:
(b) General. The estimated tax shall be paid as follows for an elect-
ing partnership and an electing S corporation:
(1) [The] FOR A PARTNERSHIP OR S CORPORATION THAT MADE AN ELECTION TO
BE TAXED PURSUANT TO THIS ARTICLE ON OR BEFORE MARCH FIFTEENTH OF THE
TAXABLE YEAR, THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION SHALL
MAKE estimated tax [shall be paid] PAYMENTS in four equal installments
on March fifteenth, June fifteenth, September fifteenth, and December
fifteenth in the calendar year prior to the year in which the due date
of the return required by this article falls. THE AMOUNT OF EACH
INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(2) [The amount of any required installment shall be twenty-five
percent of the required annual payment] FOR A PARTNERSHIP OR S CORPO-
RATION THAT MADE AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE AFTER
MARCH FIFTEENTH BUT ON OR BEFORE JUNE FIFTEENTH IN THE TAXABLE YEAR, THE
ELECTING PARTNERSHIP OR ELECTING S CORPORATION SHALL MAKE PAYMENTS ON
JUNE FIFTEENTH, SEPTEMBER FIFTEENTH, AND DECEMBER FIFTEENTH IN THE
CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE OF THE RETURN
REQUIRED BY THIS ARTICLE FALLS. THE AMOUNT OF THE JUNE FIFTEENTH PAYMENT
SHALL BE FIFTY PERCENT OF THE REQUIRED ANNUAL AMOUNT. THE AMOUNT OF THE
SEPTEMBER FIFTEENTH PAYMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED
ANNUAL AMOUNT. THE AMOUNT OF THE DECEMBER FIFTEENTH PAYMENT SHALL BE
TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL AMOUNT.
(2-A) FOR A PARTNERSHIP OR S CORPORATION THAT MADE AN ELECTION TO BE
TAXED PURSUANT TO THIS ARTICLE AFTER JUNE FIFTEENTH BUT ON OR BEFORE
SEPTEMBER FIFTEENTH IN THE TAXABLE YEAR, THE ELECTING PARTNERSHIP OR
ELECTING S CORPORATION SHALL MAKE PAYMENTS ON SEPTEMBER FIFTEENTH AND
DECEMBER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE
DUE DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS. THE AMOUNT OF THE
SEPTEMBER FIFTEENTH PAYMENT SHALL BE SEVENTY-FIVE PERCENT OF THE
S. 9009--B 28
REQUIRED ANNUAL AMOUNT. THE AMOUNT OF THE DECEMBER FIFTEENTH PAYMENT
SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL AMOUNT.
(3) Notwithstanding paragraph four of subsection (c) of section six
hundred eighty-five of this chapter, the required annual payment is the
lesser of: (A) ninety percent of the tax shown on the return for the
taxable year; or (B) one hundred percent of the tax shown on the return
of the electing partnership or electing S corporation for the preceding
taxable year.
§ 3. Subsection (c) of section 868 of the tax law, as amended by
section 7 of subpart C of part J of chapter 59 of the laws of 2023, is
amended to read as follows:
(c) The annual election to be taxed pursuant to this article must be
made on or before [the due date of the first estimated payment under
section eight hundred sixty-four of this chapter] SEPTEMBER FIFTEENTH
and will take effect for the current taxable year. Only one election to
be taxed pursuant to this article may be made during each calendar year.
An election made under this section is irrevocable after [such due date]
SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR. To the extent an election made
under section eight hundred sixty-one of this chapter is revoked or
otherwise invalidated an election made under this section is automat-
ically invalidated.
§ 4. Subsection (b) of section 871 of the tax law, as added by section
1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3
as amended by chapter 555 of the laws of 2022, is amended to read as
follows:
(b) General. Except as provided in subsection (c) of this section, the
estimated tax shall be paid as follows for an electing city partnership
and an electing city resident S corporation:
(1) [The] FOR AN ELECTING CITY PARTNERSHIP OR ELECTING CITY S CORPO-
RATION THAT MADE AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE ON OR
BEFORE MARCH FIFTEENTH IN THE TAXABLE YEAR, THE ELECTING CITY PARTNER-
SHIP OR ELECTING CITY S CORPORATION SHALL MAKE estimated tax [shall be
paid] PAYMENTS in four equal installments on March fifteenth, June
fifteenth, September fifteenth, and December fifteenth in the calendar
year prior to the year in which the due date of the return required by
this article falls. THE AMOUNT OF EACH INSTALLMENT SHALL BE TWENTY-FIVE
PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(2) [The amount of any required installment shall be twenty-five
percent of the required annual payment] FOR AN ELECTING CITY PARTNERSHIP
OR ELECTING CITY S CORPORATION THAT MADE AN ELECTION TO BE TAXED PURSU-
ANT TO THIS ARTICLE AFTER MARCH FIFTEENTH BUT ON OR BEFORE JUNE
FIFTEENTH IN THE TAXABLE YEAR, THE ELECTING CITY PARTNERSHIP OR ELECTING
CITY S CORPORATION SHALL MAKE PAYMENTS ON JUNE FIFTEENTH, SEPTEMBER
FIFTEENTH, AND DECEMBER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR
IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS. THE
AMOUNT OF THE JUNE FIFTEENTH PAYMENT SHALL BE FIFTY PERCENT OF THE
REQUIRED ANNUAL AMOUNT. THE AMOUNT OF THE SEPTEMBER FIFTEENTH PAYMENT
SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL AMOUNT. THE AMOUNT
OF THE DECEMBER FIFTEENTH PAYMENT SHALL BE TWENTY-FIVE PERCENT OF THE
REQUIRED ANNUAL AMOUNT.
(2-A) FOR AN ELECTING CITY PARTNERSHIP OR ELECTING CITY S CORPORATION
THAT MADE AN ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE AFTER JUNE
FIFTEENTH BUT ON OR BEFORE SEPTEMBER FIFTEENTH IN THE TAXABLE YEAR, THE
ELECTING CITY PARTNERSHIP OR ELECTING CITY S CORPORATION SHALL MAKE
PAYMENTS ON SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH IN THE CALENDAR
YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY
S. 9009--B 29
THIS ARTICLE FALLS. THE AMOUNT OF THE SEPTEMBER FIFTEENTH PAYMENT SHALL
BE SEVENTY-FIVE PERCENT OF THE REQUIRED ANNUAL AMOUNT. THE AMOUNT OF THE
DECEMBER FIFTEENTH PAYMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED
ANNUAL AMOUNT.
(3) Without regard to paragraph four of subsection (c) of section six
hundred eighty-five of this chapter, the required annual payment is the
lesser of: (A) ninety percent of the tax shown on the return for the
taxable year; or (B) one hundred percent of the tax shown on the return
of the electing city partnership or electing city resident S corporation
for the preceding taxable year.
§ 5. This act shall take effect immediately and shall apply to all
taxable years beginning on or after January 1, 2027.
PART I
Section 1. Paragraph (a) of subdivision 5 of section 845-e of the
executive law, as added by section 1 of part E of chapter 59 of the laws
of 2024, is amended to read as follows:
(a) For taxable years beginning on or after January first, two thou-
sand twenty-four and before January first, two thousand [twenty-six]
TWENTY-NINE, a business entity in the commercial security tax credit
program that meets the eligibility requirements of subdivision two of
this section may be eligible to claim a credit equal to three thousand
dollars for each retail location of the business entity located in New
York state.
§ 2. Subdivision (a) of section 49 of the tax law, as added by section
2 of part E of chapter 59 of the laws of 2024, is amended to read as
follows:
(a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand twenty-four and before January first, two thou-
sand [twenty-six] TWENTY-NINE, a taxpayer required to file a return
pursuant to articles nine, nine-A or twenty-two of this chapter shall be
allowed a credit against such tax, pursuant to the provisions referenced
in subdivision (f) of this section. The amount of the credit is equal to
the amount determined pursuant to section eight hundred forty-five-e of
the executive law. No cost or expense paid or incurred by the taxpayer
that is included as part of the calculation of this credit shall be the
basis of any other tax credit allowed under this chapter.
§ 3. This act shall take effect immediately.
PART J
Section 1. Paragraph 1 of subdivision (f) of section 24-c of the tax
law, as amended by section 4 of part L of chapter 59 of the laws of
2025, is amended to read as follows:
(1) The aggregate amount of tax credits allowed under this section,
subdivision fifty-seven of section two hundred ten-B and subsection
(mmm) of section six hundred six of this chapter shall be [four] FIVE
hundred FIFTY million dollars. Such aggregate amount of credits shall be
allocated by the department of economic development among taxpayers
based on the date of first performance of the qualified musical and
theatrical production.
§ 2. This act shall take effect immediately and apply to qualified New
York city musical and theatrical production companies whose first
performance was on or after December 1, 2025; provided, however, that
the amendments to section 24-c of the tax law made by section one of
S. 9009--B 30
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.
PART K
Section 1. Subdivisions 2 and 12 of section 470 of the tax law, subdi-
vision 2 as amended by chapter 728 of the laws of 2019 and subdivision
12 as added by chapter 61 of the laws of 1989, are amended and two new
subdivisions 22 and 23 are added to read as follows:
2. "Tobacco products." Any cigar, including a little cigar, [or]
tobacco, OR ALTERNATIVE NICOTINE PRODUCT, other than cigarettes,
intended for consumption by smoking, chewing, or as snuff. "Tobacco
products" shall not include research tobacco products.
12. "Distributor." Any person who imports or causes to be imported
into this state any tobacco product (in excess of fifty cigars [or], one
pound of tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS) for
sale, or who manufactures any tobacco product in this state, and any
person within or without the state who is authorized by the commissioner
of taxation and finance to make returns and pay the tax on tobacco
products sold, shipped or delivered by [him] THEM to any person in the
state.
22. "ALTERNATIVE NICOTINE PRODUCT." ANY NONCOMBUSTIBLE PRODUCT, OTHER
THAN VAPOR PRODUCTS, WHICH CONTAINS NICOTINE OR A NICOTINE ANALOG BUT
NOT TOBACCO AND IS INTENDED FOR HUMAN CONSUMPTION, WHETHER CHEWED,
ABSORBED, DISSOLVED, OR INGESTED BY ANY OTHER MEANS. "ALTERNATIVE NICO-
TINE PRODUCT" DOES NOT INCLUDE ANY PRODUCT REGULATED AS A DRUG OR DEVICE
BY THE U.S. FOOD AND DRUG ADMINISTRATION (FDA) UNDER CHAPTER V (21
U.S.C. § 351 ET SEQ.) OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT. THE
TERM "UNIT" AS IT RELATES TO ALTERNATIVE NICOTINE PRODUCTS MEANS ANY
CANISTER, PACK, BOX, CARTON, OR CONTAINER OF ANY KIND OR, IF NO OTHER
CONTAINER, ANY WRAPPING, IN WHICH AN ALTERNATIVE NICOTINE PRODUCT IS
OFFERED FOR SALE, SOLD, OR OTHERWISE DISTRIBUTED TO CONSUMERS.
23. "NICOTINE ANALOG." (A) A SUBSTANCE:
(I) THE CHEMICAL STRUCTURE OF WHICH IS SUBSTANTIALLY SIMILAR TO THE
CHEMICAL STRUCTURE OF NICOTINE REGARDLESS OF WHETHER THE CHEMICAL IS
NATURALLY OR SYNTHETICALLY DERIVED; OR
(II) WHICH HAS, PURPORTS TO HAVE, OR IS REPRESENTED TO HAVE, AN EFFECT
ON THE CENTRAL NERVOUS SYSTEM THAT IS SIMILAR TO OR GREATER THAN THE
EFFECT ON THE CENTRAL NERVOUS SYSTEM AS NICOTINE.
(B) FACTORS RELEVANT TO DETERMINING WHETHER A SUBSTANCE IS A "NICOTINE
ANALOG" INCLUDE, BUT ARE NOT LIMITED TO, THE MARKETING, ADVERTISING AND
LABELING OF THE SUBSTANCE, AND WHETHER THE SUBSTANCE HAS BEEN MANUFAC-
TURED, FORMULATED, SOLD, DISTRIBUTED, OR MARKETED WITH THE INTENT TO
AVOID THE PROVISIONS OF THIS SUBDIVISION AND OTHER APPLICABLE PROVISIONS
OF THE LAW.
§ 2. The opening paragraph of subdivision (a) of section 471-c of the
tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
2009, is amended to read as follows:
There is hereby imposed and shall be paid a tax on all tobacco
products used in the state by any person, except that no such tax shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt from the tax imposed by said section, or (3) on the use of two
hundred fifty cigars or less, or five pounds or less of tobacco other
than roll-your-own tobacco, or thirty-six ounces or less of roll-your-
own tobacco, OR SEVENTY-FIVE UNITS OR LESS OF ALTERNATIVE NICOTINE
S. 9009--B 31
PRODUCTS, brought into the state on, or in the possession of, any
person.
§ 3. Subdivisions 2 and 3 of section 474 of the tax law, subdivision 2
as amended by chapter 552 of the laws of 2008 and subdivision 3 as added
by chapter 61 of the laws of 1989, are amended to read as follows:
2. Every person who shall possess or transport more than two hundred
fifty cigars, or more than five pounds of tobacco other than roll-your-
own tobacco, or more than thirty-six ounces of roll-your-own tobacco, OR
MORE THAN SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, upon the
public highways, roads or streets of the state, shall be required to
have in [his] THEIR actual possession invoices or delivery tickets for
such tobacco products. Such invoices or delivery tickets shall show the
name and address of the consignor or seller, the name and address of the
consignee or purchaser, the quantity and brands of the tobacco products
transported, and the name and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such person is a dealer in tobacco products in this
state and subject to the requirements of this article.
3. Every dealer or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars [or], more than one pound of tobacco, OR
MORE THAN FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, upon the
public highways, roads or streets of the state, shall be required to
have in [his] THEIR actual possession invoices or delivery tickets for
such tobacco products. Such invoices or delivery tickets shall show the
name and address of the consignor or seller, the name and address of the
consignee or purchaser, the quantity and brands of the tobacco products
transported, and the name and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that the tax imposed by this article on tobacco products
has not been paid and is due and owing.
§ 4. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481
of the tax law, as amended by section 1 of part O of chapter 59 of the
laws of 2013, is amended to read as follows:
(i) In addition to any other penalty imposed by this article, the
commissioner may (A) impose a penalty of not more than six hundred
dollars for each two hundred cigarettes, or fraction thereof, in excess
of one thousand cigarettes in unstamped or unlawfully stamped packages
in the possession or under the control of any person or (B) impose a
penalty of not more than two hundred dollars for each ten unaffixed
false, altered or counterfeit cigarette tax stamps, imprints or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more than seventy-five dollars for each fifty cigars [or], one pound of
tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction
thereof, in excess of two hundred fifty cigars [or], five pounds of
tobacco, OR SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, in the
possession or under the control of any person and a penalty of not more
than one hundred fifty dollars for each fifty cigars [or], pound of
tobacco, OR FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction
thereof, in excess of five hundred cigars [or], ten pounds of tobacco,
OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE NICOTINE PRODUCTS, in the
possession or under the control of any person, with respect to which the
tobacco products tax has not been paid or assumed by a distributor or
S. 9009--B 32
tobacco products dealer; provided, however, that any such penalty
imposed shall not exceed seven thousand five hundred dollars in the
aggregate. The commissioner may impose a penalty of not more than seven-
ty-five dollars for each fifty cigars [or], one pound of tobacco, OR
FIFTEEN UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in
excess of fifty cigars [or], one pound of tobacco, OR FIFTEEN UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, in the possession or under the control of
any tobacco products dealer or distributor appointed by the commission-
er, and a penalty of not more than one hundred fifty dollars for each
fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, or fraction thereof, in excess of two hundred fifty
cigars [or], five pounds of tobacco, OR SEVENTY-FIVE UNITS OF ALTERNA-
TIVE NICOTINE PRODUCTS, in the possession or under the control of any
such dealer or distributor, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or a tobacco products
dealer; provided, however, that any such penalty imposed shall not
exceed fifteen thousand dollars in the aggregate.
§ 5. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of
subdivision 1 of section 481 of the tax law, as added by chapter 262 of
the laws of 2000, are amended to read as follows:
(B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR FIFTEEN
UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in excess
of two hundred fifty cigars [or], five pounds of tobacco, OR SEVENTY-
FIVE UNITS OF ALTERNATIVE NICOTINE PRODUCTS, knowingly in the possession
or knowingly under the control of any person, with respect to which the
tobacco products tax has not been paid or assumed by a distributor or
tobacco products dealer; and
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, or fraction thereof, in excess of five hundred
cigars [or], ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly under
the control of any person, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or tobacco products
dealer; provided, however, that any such penalty imposed under this
clause shall not exceed ten thousand dollars in the aggregate.
(C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR FIFTEEN
UNITS OF ALTERNATIVE NICOTINE PRODUCTS, or fraction thereof, in excess
of fifty cigars [or], one pound of tobacco, OR FIFTEEN UNITS OF ALTERNA-
TIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly under
the control of any person, with respect to which the tobacco products
tax has not been paid or assumed by a distributor or tobacco products
dealer; and
(II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR FIFTEEN UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, or fraction thereof, in excess of two hundred
fifty cigars [or], five pounds of tobacco, OR SEVENTY-FIVE UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, knowingly in the possession or knowingly
under the control of any person, with respect to which the tobacco
products tax has not been paid or assumed by a distributor or a tobacco
products dealer; provided, however, that any such penalty imposed under
this clause shall not exceed twenty thousand dollars in the aggregate.
S. 9009--B 33
§ 6. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
amended by chapter 552 of the laws of 2008, is amended to read as
follows:
(a) The possession within this state of more than four hundred ciga-
rettes in unstamped or unlawfully stamped packages or more than two
hundred fifty cigars, or more than five pounds of tobacco other than
roll-your-own tobacco, or more than thirty-six ounces of roll-your-own
tobacco, OR MORE THAN SEVENTY-FIVE UNITS OF ALTERNATIVE NICOTINE
PRODUCTS, by any person other than an agent or distributor, as the case
may be, at any one time shall be presumptive evidence that such ciga-
rettes or tobacco products are subject to tax as provided by this arti-
cle.
§ 7. Section 482 of the tax law is amended by adding a new subdivision
(c) to read as follows:
(C) FROM THE TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
THE COMMISSIONER UNDER SECTION FOUR HUNDRED SEVENTY-ONE-B OF THIS ARTI-
CLE, EFFECTIVE APRIL FIRST, TWO THOUSAND TWENTY-SEVEN, FIFTY MILLION
DOLLARS FROM THE MONEYS COLLECTED OR RECEIVED UNDER SUCH SECTION SHALL
BE DEPOSITED ANNUALLY TO THE CREDIT OF THE TOBACCO CONTROL AND INSURANCE
INITIATIVES POOL TO BE ESTABLISHED AND DISTRIBUTED BY THE COMMISSIONER
OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE
PUBLIC HEALTH LAW.
§ 8. Subdivisions (a) and (h) of section 1814 of the tax law, as
amended by section 28 of subpart I of part V1 of chapter 57 of the laws
of 2009, are amended to read as follows:
(a) Any person who willfully attempts in any manner to evade or defeat
the taxes imposed by article twenty of this chapter or payment thereof
on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
or more, [or] (iii) four hundred forty pounds of tobacco or more, OR
(IV) SIX THOUSAND SIX HUNDRED UNITS OF ALTERNATIVE NICOTINE PRODUCTS OR
MORE, or has previously been convicted two or more times of a violation
of paragraph one of this subdivision shall be guilty of a class E felo-
ny.
(h) (1) Any dealer, other than a distributor appointed by the commis-
sioner of taxation and finance under article twenty of this chapter, who
shall knowingly transport or have in [his] THEIR custody, possession or
under [his] THEIR control more than ten pounds of tobacco [or], more
than five hundred cigars, OR MORE THAN ONE HUNDRED FIFTY UNITS OF ALTER-
NATIVE NICOTINE PRODUCTS, upon which the taxes imposed by article twenty
of this chapter have not been assumed or paid by a distributor appointed
by the commissioner of taxation and finance under article twenty of this
chapter, or other person treated as a distributor pursuant to section
four hundred seventy-one-d of this chapter, shall be guilty of a misde-
meanor punishable by a fine of not more than five thousand dollars or by
a term of imprisonment not to exceed thirty days.
(2) Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who shall knowingly
transport or have in [his] THEIR custody, possession or under [his]
THEIR control more than fifteen pounds of tobacco [or], more than seven
hundred fifty cigars, OR MORE THAN TWO HUNDRED TWENTY-FIVE UNITS OF
ALTERNATIVE NICOTINE PRODUCTS, upon which the taxes imposed by article
twenty of this chapter have not been assumed or paid by a distributor
appointed by the commissioner under article twenty of this chapter, or
other person treated as a distributor pursuant to section four hundred
seventy-one-d of this chapter shall be guilty of a misdemeanor punisha-
S. 9009--B 34
ble by a fine of not more than five thousand dollars or by a term of
imprisonment not to exceed thirty days.
(3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly transport or
have in [his] THEIR custody, possession or under [his] THEIR control
twenty-five hundred or more cigars [or], fifty or more pounds of
tobacco, OR SEVEN HUNDRED FIFTY UNITS OR MORE OF ALTERNATIVE NICOTINE
PRODUCTS, upon which the taxes imposed by article twenty of this chapter
have not been assumed or paid by a distributor appointed by the commis-
sioner under article twenty of this chapter, or other person treated as
a distributor pursuant to section four hundred seventy-one-d of this
chapter shall be guilty of a misdemeanor. Provided further, that any
person who has twice been convicted under this subdivision shall be
guilty of a class E felony for any subsequent violation of this section,
regardless of the amount of tobacco products involved in such violation.
(4) For purposes of this subdivision, such person shall knowingly
transport or have in [his] THEIR custody, possession or under [his]
THEIR control tobacco [or], cigars, OR ALTERNATIVE NICOTINE PRODUCTS, on
which such taxes have not been assumed or paid by a distributor
appointed by the commissioner where such person has knowledge of the
requirement of the tax on tobacco products and, where to [his] THEIR
knowledge, such taxes have not been assumed or paid on such tobacco
products by a distributor appointed by the commissioner of taxation and
finance.
§ 9. Section 1814-a of the tax law, as added by chapter 61 of the laws
of 1989, is amended to read as follows:
§ 1814-a. Person not appointed as a tobacco products distributor. (a)
Any person who, while not appointed as a distributor of tobacco products
pursuant to the provisions of article twenty of this chapter, imports or
causes to be imported into the state more than fifty cigars [or], more
than one pound of tobacco, OR MORE THAN FIFTEEN UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, for sale within the state, or produces, manufactures
or compounds tobacco products within the state shall be guilty of a
misdemeanor punishable by a fine of not more than five thousand dollars
or by a term of imprisonment not to exceed thirty days. If, within any
ninety day period, one thousand or more cigars, or five hundred pounds
or more of tobacco, OR SEVEN THOUSAND FIVE HUNDRED UNITS OR MORE OF
ALTERNATIVE NICOTINE PRODUCTS, are imported or caused to be imported
into the state for sale within the state or are produced, manufactured
or compounded within the state by any person while not appointed as a
distributor of tobacco products, such person shall be guilty of a misde-
meanor. Provided further, that any person who has twice been convicted
under this section shall be guilty of a class E felony for any subse-
quent violation of this section, regardless of the amount of tobacco
products involved in such violation.
(b) For purposes of this section, the possession or transportation
within this state by any person, other than a tobacco products distribu-
tor appointed by the commissioner of taxation and finance, at any one
time of seven hundred fifty or more cigars [or], fifteen pounds or more
of tobacco, OR TWO HUNDRED TWENTY-FIVE UNITS OR MORE OF ALTERNATIVE
NICOTINE PRODUCTS, shall be presumptive evidence that such tobacco
products are possessed or transported for the purpose of sale and are
subject to the tax imposed by section four hundred seventy-one-b of this
chapter. With respect to such possession or transportation, any
provisions of article twenty of this chapter providing for a time period
S. 9009--B 35
during which the tax imposed by such article may be paid shall not
apply.
§ 10. Subdivision (a) of section 1846-a of the tax law, as amended by
chapter 556 of the laws of 2011, is amended to read as follows:
(a) Whenever a police officer designated in section 1.20 of the crimi-
nal procedure law or a peace officer designated in subdivision four of
section 2.10 of such law, acting pursuant to [his] THEIR special duties,
shall discover any tobacco products in excess of five hundred cigars
[or], ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE
NICOTINE PRODUCTS, which are [being imported for] POSSESSED FOR THE
PURPOSE OF sale in the state [where the person importing or causing]
WHEN THE EXCISE TAXES ON such tobacco products [to be imported has not
been appointed as] HAVE NOT BEEN ASSUMED OR PAID BY a distributor
APPOINTED pursuant to section four hundred seventy-two of this chapter,
such police officer or peace officer is hereby authorized and empowered
forthwith to seize and take possession of such tobacco products. Such
tobacco products seized by a police officer or peace officer shall be
turned over to the commissioner. Such seized tobacco products shall be
forfeited to the state. All tobacco products forfeited to the state
shall be destroyed or used for law enforcement purposes, except that
tobacco products that violate, or are suspected of violating, federal
trademark laws or import laws shall not be used for law enforcement
purposes. If the commissioner determines the tobacco products may not be
used for law enforcement purposes, the commissioner must, within a
reasonable time thereafter, upon publication in the state registry of a
notice to such effect before the day of destruction, destroy such
forfeited tobacco products. The commissioner may, prior to any
destruction of tobacco products, permit the true holder of the trademark
rights in the tobacco products to inspect such forfeited products in
order to assist in any investigation regarding such tobacco products.
§ 11. Subdivision (b) of section 1847 of the tax law, as added by
chapter 61 of the laws of 1989, is amended to read as follows:
(b) Any peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to [his] THEIR special
duties, or any police officer designated in section 1.20 of the criminal
procedure law may seize any vehicle or other means of transportation
used to import tobacco products in excess of five hundred cigars [or],
ten pounds of tobacco, OR ONE HUNDRED FIFTY UNITS OF ALTERNATIVE NICO-
TINE PRODUCTS, for sale where the person importing or causing such
tobacco products to be imported has not been appointed a distributor
pursuant to section four hundred seventy-two of this chapter, other than
a vehicle or other means of transportation used by any person as a
common carrier in transaction of business as such common carrier, and
such vehicle or other means of transportation shall be subject to
forfeiture as hereinafter in this section provided.
§ 12. Subdivisions (a) and (b) of section 92-dd of the state finance
law, subdivision (a) as amended by section 2 of part UU of chapter 59 of
the laws of 2019 and subdivision (b) as amended by section 3 of part T
of chapter 61 of the laws of 2011, are amended to read as follows:
(a) On and after April first, two thousand five, such fund shall
consist of the revenues heretofore and hereafter collected or required
to be deposited pursuant to paragraph (a) of subdivision eighteen of
section twenty-eight hundred seven-c, and sections twenty-eight hundred
seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t
of the public health law, [subdivision] SUBDIVISIONS (b) AND (C) of
section four hundred eighty-two and section eleven hundred eighty-six of
S. 9009--B 36
the tax law and required to be credited to the tobacco control and
insurance initiatives pool, subparagraph (O) of paragraph four of
subsection (j) of section four thousand three hundred one of the insur-
ance law, section twenty-seven of part A of chapter one of the laws of
two thousand two and all other moneys credited or transferred thereto
from any other fund or source pursuant to law.
(b) The pool administrator under contract with the commissioner of
health pursuant to section twenty-eight hundred seven-y of the public
health law shall continue to collect moneys required to be collected or
deposited pursuant to paragraph (a) of subdivision eighteen of section
twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j,
twenty-eight hundred seven-s and twenty-eight hundred seven-t of the
public health law, and shall deposit such moneys in the HCRA resources
fund. The comptroller shall deposit moneys collected or required to be
deposited pursuant to [subdivision] SUBDIVISIONS (b) AND (C) of section
four hundred eighty-two of the tax law and required to be credited to
the tobacco control and insurance initiatives pool, subparagraph (O) of
paragraph four of subsection (j) of section four thousand three hundred
one of the insurance law, section twenty-seven of part A of chapter one
of the laws of two thousand two and all other moneys credited or trans-
ferred thereto from any other fund or source pursuant to law in the HCRA
resources fund.
§ 13. Notwithstanding any other provision of law to the contrary, the
units of alternative nicotine products possessed in New York state as of
11:59 pm eastern standard time on August 31, 2026, by any person for
sale shall be subject to tax pursuant to section 471-b of the tax law,
and shall be remitted by September 21, 2026, in the form and manner
prescribed by the commissioner of taxation and finance.
§ 14. This act shall take effect immediately, and shall apply to all
sales of alternative nicotine products on or after September 1, 2026.
PART L
Intentionally Omitted
PART M
Intentionally Omitted
PART N
Section 1. Notwithstanding any provision of law to the contrary, the
commissioner of taxation and finance is hereby directed to institute a
reregistration program in accordance with this section, to be completed
by December 31, 2030. Such commissioner shall issue a notice of expira-
tion to holders of current certificates of authority in an order and at
such times that such commissioner determines necessary for the proper
administration of such reregistration program and to ensure the integri-
ty and qualifications of registrants pursuant to this section. Such
notice of expiration shall be issued to the holder of such certificate
of authority at least 180 days prior to the date of expiration indicated
therein and shall be mailed by certified mail in accordance with the
provisions in subdivision (a) of section 1147 of the tax law. A properly
completed certificate of registration for a new certificate of authority
S. 9009--B 37
must be filed with such commissioner at least 90 days prior to the date
of expiration of the current certificate of authority. The commissioner,
within 30 days of receipt of a certificate of registration for a new
certificate of authority pursuant to this section, shall either: issue,
without charge, to each registrant a certificate of authority empowering
such person to collect sales tax for a specified term of no less than
three years, and a duplicate thereof for each additional place of busi-
ness of such person; or, shall propose to refuse to issue a certificate
of authority for any of the circumstances described in subparagraph (B)
of paragraph 4 of subdivision (a) of section 1134 of the tax law. A
person who has received a notice of proposed refusal pursuant to this
section may seek review of such determination in accordance with para-
graph (h) of subdivision 3-a of section 170 and subdivision 2 of section
2008 of the tax law; provided, however, the division of tax appeals must
schedule an expedited hearing within 30 days of receipt of a petition by
a person who has received a notice of proposed refusal pursuant to this
section.
§ 2. (a) Notwithstanding any provision of law to the contrary, the
commissioner of taxation and finance shall administer a sales and use
tax penalty and interest discount program for all eligible taxpayers
with eligible tax liabilities as described in this section.
(b) For purposes of this sales and use tax penalty and interest
discount program, an eligible taxpayer is any person who is a holder of
a current certificate of authority subject to the reregistration program
authorized by section one of this act who has an eligible tax liability,
and who meets the conditions of this section. A person convicted of a
crime under the tax law, or a person convicted under the penal law who
is subject to a court order to pay a tax liability as result of such
conviction, is not eligible to participate in this program.
(c) For purposes of this section, an eligible tax liability is a
liability for sales and use taxes imposed by article 28 of the tax law
or pursuant to the authority of article 29 of such law, including any
interest or penalty thereon, that is fixed and final on or before
September 1, 2026, such that the taxpayer no longer has any right to an
administrative or judicial review. An eligible tax liability shall not
include any penalty imposed by paragraphs 2 or 5 of subdivision (a) of
section 1145 of the tax law, or subdivisions (i) or (j) of such section
1145, as added by section 15 of subpart J of part V-1 of chapter 57 of
the laws of 2009. An eligible tax liability shall not include any
assessment that was reduced by a written agreement with the commission-
er, a liability that was compromised pursuant to subdivision eigh-
teenth-a of section 171 of the tax law, or a liability reduced pursuant
to subdivision 3 of section 1700 of the tax law.
(d) The discounted amount due under the sales and use tax penalty and
interest discount program for an eligible taxpayer with an eligible tax
liability shall be the sales or use tax liability plus fifty percent of
the interest accrued thereon, through December 31, 2026.
(e) The commissioner of taxation and finance shall identify the eligi-
ble taxpayers with eligible tax liabilities for purposes of this
section, shall compute the discounted amount due on such eligible tax
liabilities, and shall notify eligible taxpayers of such discounted
amount due. The discount authorized by this section shall not be granted
to any eligible taxpayer for any eligible tax liability unless the
eligible taxpayer pays the discounted amount due in full on or before
December 31, 2026. Payment pursuant to this program shall be made by
S. 9009--B 38
eligible taxpayers with eligible tax liabilities in a form and manner as
prescribed by the commissioner of taxation and finance.
(f) No refund will be granted or subsequent credit allowed with
respect to any penalty or interest paid with respect to an eligible tax
liability prior to the time the eligible taxpayer participates in the
sales and use tax penalty and interest discount program.
(g) No refund will be granted or subsequent credit allowed with
respect to any amount paid under the sales and use tax penalty and
interest discount program.
(h) If an eligible taxpayer has entered into an installment payment
agreement that applies to an eligible tax liability, the taxpayer may
participate in the sales and use tax penalty and interest discount
program with respect to that liability if the taxpayer pays the
discounted amount due under such program in full by December 31, 2026.
§ 3. This act shall take effect immediately.
PART O
Intentionally Omitted
PART P
Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of
section 1115 of the tax law, as amended by section 1 of part AA of chap-
ter 59 of the laws of 2025, is amended to read as follows:
(B) Until May thirty-first, two thousand [twenty-six] TWENTY-NINE, the
food and drink excluded from the exemption provided by clauses (i), (ii)
and (iii) of subparagraph (A) of this paragraph, and bottled water,
shall be exempt under this subparagraph: (i) when sold for one dollar
and fifty cents or less through any vending machine that accepts coin or
currency only; or (ii) when sold for two dollars or less through any
vending machine that accepts any form of payment other than coin or
currency, whether or not it also accepts coin or currency.
§ 1-a. The tax law is amended by adding a new section 171-bb to read
as follows:
§ 171-BB. REPORT ON VENDING MACHINE EXEMPTION. THE DEPARTMENT SHALL
CONDUCT A STUDY ON THE EFFECTIVENESS OF THE EXEMPTION GRANTED TO CERTAIN
PRODUCTS SOLD FROM VENDING MACHINES IN SUBPARAGRAPH (B) OF PARAGRAPH ONE
OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER.
THE DEPARTMENT IS TO EXAMINE TOPICS INCLUDING BUT NOT LIMITED TO: THE
EFFECT THIS EXEMPTION HAS HAD IN INCREASING THE DEPLOYMENT OF VENDING
MACHINES CAPABLE OF ACCEPTING ELECTRONIC PAYMENTS SINCE IT WAS INTRO-
DUCED, AND WHETHER THERE HAVE BEEN CHANGES IN HOW MANY SUCH MACHINES ARE
BEING PUT IN SERVICE DURING THE DURATION OF THIS EXEMPTION; WHAT
PERCENTAGE OF VENDING MACHINES ARE UNABLE TO ACCEPT ELECTRONIC PAYMENTS;
WHETHER MACHINES THAT CAN ACCEPT ELECTRONIC PAYMENTS ARE USING THE
LATEST WIRELESS COMMUNICATION TECHNOLOGY AND THE EFFECT THIS EXEMPTION
HAS IN UPGRADING VENDING MACHINES TO MAKE USE OF THE LATEST WIRELESS
TECHNOLOGY. THE DEPARTMENT SHALL SUBMIT THIS REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY NO
LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT AND SHALL
ALSO POST IT PUBLICLY ON THE DEPARTMENT'S WEBSITE.
§ 2. This act shall take effect immediately.
PART Q
S. 9009--B 39
Section 1. Section 2 of part PP of chapter 58 of the laws of 2024
amending the tax law relating to establishing a sales tax exemption for
residential energy storage, is amended to read as follows:
§ 2. This act shall take effect June 1, 2024 and shall expire and be
deemed repealed June 1, [2026] 2028.
§ 2. This act shall take effect immediately.
PART R
Section 1. Subdivision (a) of section 308 of the tax law, as amended
by chapter 2 of the laws of 1995, is amended to read as follows:
(a) General.--Every petroleum business subject to tax under this arti-
cle shall monthly, on or before the twentieth day following the close of
its taxable month, file a return which shall state (i) the number of
gallons of motor fuel imported or caused to be imported into this state
for use, distribution, storage or sale in the state or produced,
refined, manufactured or compounded in the state during the preceding
calendar month, (ii) the number of gallons of diesel motor fuel sold or
used or, with respect to gallonage which prior thereto has not been
included in the measure of the tax imposed by this article, delivered by
the petroleum business to a filling station or into the fuel tank
connecting with the engine of a motor vehicle for use in the operation
thereof during the preceding calendar month, (iii) the number of gallons
of, and the resultant product produced, manufactured or blended, using
diesel motor fuel as a component of such resultant product and the sales
of such resultant product, and (iv) the number of gallons of residual
petroleum product sold or used in this state and the sales of such resi-
dual petroleum product, for the period covered by such return. A resi-
dual petroleum business shall include in its reports the number of
gallons of residual petroleum product imported into the state or
purchased in this state, the number of gallons of diesel motor fuel
purchased in this state and the number of gallons of, and the resultant
product produced, manufactured or blended by such petroleum business,
using diesel motor fuel as a component of such resultant product. The
commissioner of taxation and finance may permit the filing of a return
on a quarterly basis in the case of a petroleum business which only
makes sales of diesel motor fuel solely for residential heating purposes
and which is registered under article twelve-A of this chapter as a
diesel motor fuel distributor under a limited registration applicable
only to the importation, sale and distribution of diesel motor fuel for
the purposes described in subparagraph (i) of paragraph (b) of subdivi-
sion three of section two hundred eighty-two-a of this chapter or in the
case of a petroleum business registered as a "distributor of kero-jet
fuel only" pursuant to the provisions of subdivision two of section two
hundred eighty-two-a of this chapter. In the case of such returns
permitted to be filed on a quarterly basis, the adjustments to the rates
of tax then in effect, as provided for in sections three hundred one-a
and three hundred one-e of this article, which take effect on the first
day of January of each year shall, with respect to such quarterly
return, take effect on the first day of the next succeeding March.
Returns shall be filed with the commissioner [in] ON a form prescribed
by the commissioner, setting forth such other information as the commis-
sioner may prescribe. Every petroleum business shall also transmit such
other returns and such facts and information as the commissioner may
require in the administration of this article. Every petroleum business
which is a corporation subject to tax under this article and which ceas-
S. 9009--B 40
es to exercise its franchise or to be subject to the tax imposed by this
article shall transmit to the commissioner a return on the date of such
cessation, or at such other time as the commissioner may require, cover-
ing each month or period for which no return was theretofore filed. The
commissioner may, if the commissioner deems it necessary in order to
insure the payment of the tax imposed by this article, require returns
to be made at such times and covering such periods as the commissioner
may deem necessary. Notwithstanding the foregoing provisions of this
subdivision, the commissioner may require any corporation or unincorpo-
rated business [which] THAT engages in transactions involving petroleum
or similar products, including aviation fuels, to file a monthly return,
which shall contain [any data specified by him] SUCH INFORMATION AS THE
COMMISSIONER PRESCRIBES, regardless of whether such corporation or unin-
corporated business is subject to tax under this article. NOTWITHSTAND-
ING THE PROVISIONS OF THIS SUBDIVISION, EVERY PETROLEUM BUSINESS THAT
OPERATES A "COMMERCIAL VESSEL", AS DEFINED IN SUBDIVISION (B) OF SECTION
ELEVEN HUNDRED ONE OF THIS CHAPTER, SHALL ANNUALLY FILE THE RETURNS
REQUIRED UNDER THIS SECTION, ON A FORM AND CONTAINING SUCH INFORMATION
AS THE COMMISSIONER PRESCRIBES. SUCH "COMMERCIAL VESSEL" RETURNS SHALL
BE FILED ANNUALLY ON OR BEFORE MARCH TWENTIETH AND SHALL COVER THE FOUR
SALES TAX QUARTERLY PERIODS DESCRIBED IN SUBDIVISION (B) OF SECTION
ELEVEN HUNDRED THIRTY-SIX OF THIS CHAPTER IMMEDIATELY PRECEDING SUCH
DATE.
§ 2. This act shall take effect on the first day of the month next
commencing at least ninety days after this act shall have become a law;
provided, however, that a petroleum business that is required to file an
annual return pursuant to section one of this act shall be required to
file monthly returns for periods ending on or before such effective
date; and provided further, however, that such petroleum business shall
file an annual return for the remainder of the annual period of March 1,
2026 through February 28, 2027, on or before March 20, 2027, and shall
be required to file annual returns thereafter.
PART S
Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006
amending the tax law and other laws relating to providing exemptions,
reimbursements and credits from various taxes for certain alternative
fuels, as amended by section 1 of part EE of chapter 59 of the laws of
2021, is amended to read as follows:
§ 19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2026] 2031 and such
repeal shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven through eleven of
this act, in accordance with applicable transitional provisions of
sections 1106 and 1217 of the tax law; provided, however, that the
commissioner of taxation and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend any rules
or regulations and to take any steps necessary to implement the
provisions of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
§ 2. This act shall take effect immediately.
S. 9009--B 41
PART T
Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real
property tax law, as amended by section 1 of subpart A of part Z of
chapter 59 of the laws of 2022, is amended to read as follows:
(a-2) Notwithstanding any provision of law to the contrary, [where an
application for the "enhanced" STAR exemption authorized by subdivision
four of this section has not been filed on or before the taxable status
date, and the owner believes that good cause existed for the failure to
file the application by that date,] WHEN A PROPERTY OWNER OF A PROPERTY
WITH A BASIC STAR EXEMPTION BELIEVES THEY HAVE BECOME ELIGIBLE FOR THE
ENHANCED STAR EXEMPTION BUT THEIR BASIC STAR EXEMPTION HAS NOT BEEN
CHANGED TO AN ENHANCED STAR EXEMPTION PURSUANT TO THE PROVISIONS OF
PARAGRAPH (B) OF SUBDIVISION FOUR-B OF THIS SECTION, the owner may, no
later than the last day for paying school taxes without incurring inter-
est or penalty, submit a [written] request to the commissioner asking
[him or her to extend the filing deadline and] THE COMMISSIONER TO grant
the exemption. Such request shall BE IN A FORM PRESCRIBED BY THE COMMIS-
SIONER AND SHALL contain an explanation of why the [deadline was missed,
and shall be accompanied by an application, reflecting the facts and
circumstances as they existed on the taxable status date] PROPERTY OWNER
BELIEVES THEY HAVE BECOME ELIGIBLE FOR THE ENHANCED STAR EXEMPTION.
After consulting with the assessor, the commissioner may [extend the
filing deadline and] grant the exemption if the commissioner is satis-
fied that [(i) good cause existed for the failure to file the applica-
tion by the taxable status date, and that (ii)] the applicant is [other-
wise] entitled to the exemption. The commissioner shall mail notice of
[his or her] SUCH determination to such owner and the assessor. If the
determination states that the commissioner has granted the exemption,
the assessor shall thereupon be authorized and directed to correct the
assessment roll accordingly, or, if another person has custody or
control of the assessment roll, to direct that person to make the appro-
priate corrections. Provided, however, that if the assessment roll
cannot be corrected in time for the exemption to appear on the appli-
cant's school tax bill, the commissioner shall be authorized to remit
directly to the applicant the tax savings that the STAR exemption would
have yielded if it had appeared on the applicant's tax bill. The amounts
so payable shall be paid from the account established for the payment of
STAR benefits to late registrants pursuant to subparagraph (iii) of
paragraph (a) of subdivision fourteen of this section.
§ 2. Paragraphs (c) and (d) of subdivision 14 of section 425 of the
real property tax law are REPEALED and a new paragraph (c) is added to
read as follows:
(C) WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY IS INELIGIBLE FOR
A STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY FOR
REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVISION
FOUR-B OF THIS SECTION.
§ 3. Subparagraphs (ii) and (iii) of paragraph (b) of subdivision 15
of section 425 of the real property tax law are REPEALED and a new
subparagraph (ii) is added to read as follows:
(II) WHEN THE COMMISSIONER DETERMINES THAT A PROPERTY IS INELIGIBLE
FOR A STAR EXEMPTION, NOTICE OF SUCH DETERMINATION AND AN OPPORTUNITY
FOR REVIEW THEREOF SHALL BE PROVIDED IN THE MANNER SET FORTH IN SUBDIVI-
SION FOUR-B OF THIS SECTION.
S. 9009--B 42
§ 4. Subparagraph (A) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter 73 of
the laws of 2016, is amended to read as follows:
(A) "Qualified taxpayer" means a resident individual of the state, who
maintained [his or her] THEIR primary residence in this state on [Decem-
ber thirty-first] JULY FIRST of the taxable year, and who was an owner
of that property on that date, provided however:
(i) A taxpayer whose primary residence received a STAR exemption for
the associated fiscal year shall not be considered a qualified taxpayer
for purposes of this subsection.
(ii) An individual may be considered a qualified taxpayer with respect
to no more than one primary residence during any given taxable year.
[(iii) If a resident individual was an owner of the property during
the taxable year but did not own it on December thirty-first of the
taxable year, he or she shall be considered a qualified taxpayer if the
property was his or her primary residence during the taxable year and he
or she paid qualifying taxes on that property while he or she was still
an owner of that property.
(iv) If a resident individual has acquired ownership of property
during a taxable year, such resident individual shall not be considered
a qualified taxpayer for that taxable year to the extent that an advance
payment of the credit for that taxable year has been issued to the prior
owner with respect to the same property, unless such resident individual
can demonstrate that he or she paid qualifying taxes on such property
during the taxable year, and that the prior owner did not.]
§ 5. Subsection (eee) of section 606 of the tax law is amended by
adding a new paragraph 2 to read as follows:
(2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED-
IT AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER
IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE
CREDITS PERMITTED BY THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET
FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS
THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER-
EST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT
TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER
MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR
REPAID AS AN OVERPAYMENT, WITHOUT INTEREST THEREON.
§ 6. The opening paragraph of subparagraph (A) of paragraph 4 of
subsection (eee) of section 606 of the tax law, as amended by section 11
of part O of chapter 59 of the laws of 2025, is amended to read as
follows:
Beginning with taxable years after two thousand [twenty-four] TWENTY-
FIVE, an enhanced STAR credit shall be available to a qualified taxpayer
where both of the following conditions are satisfied:
§ 7. Subparagraph (C) of paragraph 13 of subsection (eee) of section
606 of the tax law, as added by section 1 of part TT of chapter 59 of
the laws of 2017, is amended to read as follows:
(C) If the commissioner determines that a taxpayer received a prelimi-
nary advance payment that is above or below the advance payment to which
he or she was entitled under this subsection, the commissioner shall
provide notice to such taxpayer that the next advance payment due to
such taxpayer under this subsection shall be adjusted to reconcile such
underpayment or overpayment[; provided, however, the commissioner shall
permit a taxpayer to request that such adjustment be made on an
originally filed timely income tax return for the tax year in which such
S. 9009--B 43
overpayment or underpayment occurred, provided such return is filed on
or before the due date for such return, determined without regard to
extensions].
§ 8. This act shall take effect immediately; provided, however, that
section six of this act shall be deemed to have been in full force and
effect on and after January 1, 2026.
PART U
Section 1. Section 4 of chapter 475 of the laws of 2013 amending the
real property tax law relating to assessment ceilings for local public
utility mass real property, as amended by section 1 of part Y of chapter
59 of the laws of 2022, is amended to read as follows:
§ 4. This act shall take effect on the first of January of the second
calendar year commencing after this act shall have become a law and
shall apply to assessment rolls with taxable status dates on or after
such date; provided, however, that this act shall expire and be deemed
repealed [twelve] SIXTEEN years after such effective date; and provided,
further, that no assessment of local public utility mass real property
appearing on the municipal assessment roll with a taxable status date
occurring in the first calendar year after this act shall have become a
law shall be less than ninety percent or more than one hundred ten
percent of the assessment of the same property on the date this act
shall have become a law.
§ 2. This act shall take effect immediately.
PART V
Section 1. This Part enacts into law components of legislation relat-
ing to rent exemptions and rent increase exemptions for certain persons.
Each component is wholly contained within a Subpart identified as
Subparts A through B. The effective date for each particular provision
contained within such Subpart is set forth in the last section of such
Subpart. Any provision in any section contained within a Subpart,
including the effective date of the Subpart, which makes reference to a
section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Subpart in which it is found. Section three of this Part
sets forth the general effective date of this Part.
SUBPART A
Section 1. Paragraphs a and b of subdivision 3 of section 467-b of the
real property tax law, paragraph a as amended by section 1 of part U of
chapter 55 of the laws of 2014 and paragraph b as amended by chapter 129
of the laws of 2014, are amended to read as follows:
a. for a dwelling unit where the head of the household is a person
sixty-two years of age or older, no tax abatement shall be granted if
the combined income of all members of the household for the income tax
year immediately preceding the date of making application exceeds four
thousand dollars, or such other sum not more than twenty-five thousand
dollars beginning July first, two thousand five, twenty-six thousand
dollars beginning July first, two thousand six, twenty-seven thousand
dollars beginning July first, two thousand seven, twenty-eight thousand
dollars beginning July first, two thousand eight, twenty-nine thousand
dollars beginning July first, two thousand nine, [and] fifty thousand
S. 9009--B 44
dollars beginning July first, two thousand fourteen, AND SEVENTY-FIVE
THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-SIX, as may
be provided by the local law, ordinance or resolution adopted pursuant
to this section, provided that when the head of the household retires
before the commencement of such income tax year and the date of filing
the application, the income for such year may be adjusted by excluding
salary or earnings and projecting [his or her] SUCH HEAD OF HOUSEHOLD'S
retirement income over the entire period of such year. THE MAXIMUM
INCOME THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE
COMMISSIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL TO
REFLECT ANY INCREASE IN THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS
FOR ALL ITEMS AS PUBLISHED BY THE UNITED STATES BUREAU OF LABOR STATIS-
TICS FOR THE REGION IN WHICH THE HOUSING ACCOMMODATION IS LOCATED, AS
ESTABLISHED FOR THE MOST RECENT PRECEDING CALENDAR YEAR AS SHALL BE
PUBLISHED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL NO LATER THAN
THE FIRST OF JULY IN ANY GIVEN YEAR, PROVIDED THAT FOR NEW YORK CITY AND
ANY MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDINANCE OR RESOLUTION
PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO THIS SECTION IN THE
COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK, AND
WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE THE NEW YORK-NEWARK-JER-
SEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U), AND PROVIDED FURTHER
THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDINANCE OR
RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO THIS
SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST REGION CONSUM-
ER PRICE INDEX.
b. for a dwelling unit where the head of the household qualifies as a
person with a disability pursuant to subdivision five of this section,
no tax abatement shall be granted if the combined income for all members
of the household for the current income tax year exceeds [fifty] SEVEN-
TY-FIVE thousand dollars beginning July first, two thousand [fourteen]
TWENTY-SIX, as may be provided by the local law, ordinance or resolution
adopted pursuant to this section. THE MAXIMUM INCOME THRESHOLD PROVIDED
FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE
DIVISION OF HOUSING AND COMMUNITY RENEWAL TO REFLECT ANY INCREASE IN THE
CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR ALL ITEMS AS PUBLISHED
BY THE UNITED STATES BUREAU OF LABOR STATISTICS FOR THE REGION IN WHICH
THE HOUSING ACCOMMODATION IS LOCATED, AS ESTABLISHED FOR THE MOST RECENT
PRECEDING CALENDAR YEAR AS SHALL BE PUBLISHED BY THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL NO LATER THAN THE FIRST OF JULY IN ANY GIVEN YEAR,
PROVIDED THAT FOR NEW YORK CITY AND ANY MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM,
ROCKLAND, SUFFOLK, AND WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE
THE NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U),
AND PROVIDED FURTHER THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST
REGION CONSUMER PRICE INDEX.
§ 2. Paragraphs d and m of subdivision 1 of section 467-c of the real
property tax law, paragraph d as separately amended by chapters 188 and
205 of the laws of 2005, subparagraph 1 of paragraph d as amended by
section 2 of part U of chapter 55 of the laws of 2014 and paragraph m as
amended by chapter 129 of the laws of 2014, are amended to read as
follows:
d. "Eligible head of the household" means (1) a person or [his or her]
SUCH PERSON'S spouse who is sixty-two years of age or older and is enti-
S. 9009--B 45
tled to the possession or to the use and occupancy of a dwelling unit,
provided, however, with respect to a dwelling which was subject to a
mortgage insured or initially insured by the federal government pursuant
to section two hundred thirteen of the National Housing Act, as amended
"eligible head of the household" shall be limited to that person or [his
or her] SUCH PERSON'S spouse who was entitled to possession or the use
and occupancy of such dwelling unit at the time of termination of such
mortgage, and whose income when combined with the income of all other
members of the household, does not exceed six thousand five hundred
dollars for the taxable period, or such other sum not less than sixty-
five hundred dollars nor more than twenty-five thousand dollars begin-
ning July first, two thousand five, twenty-six thousand dollars begin-
ning July first, two thousand six, twenty-seven thousand dollars
beginning July first, two thousand seven, twenty-eight thousand dollars
beginning July first, two thousand eight, twenty-nine thousand dollars
beginning July first, two thousand nine, [and] fifty thousand dollars
beginning July first, two thousand fourteen, AND SEVENTY-FIVE THOUSAND
DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-SIX, as may be
provided by local law; or (2) a person with a disability as defined in
this subdivision. THE MAXIMUM INCOME THRESHOLD PROVIDED FOR HEREIN
SHALL BE INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF
HOUSING AND COMMUNITY RENEWAL TO REFLECT ANY INCREASE IN THE CONSUMER
PRICE INDEX FOR ALL URBAN CONSUMERS FOR ALL ITEMS AS PUBLISHED BY THE
UNITED STATES BUREAU OF LABOR STATISTICS FOR THE REGION IN WHICH THE
HOUSING ACCOMMODATION IS LOCATED, AS ESTABLISHED FOR THE MOST RECENT
PRECEDING CALENDAR YEAR AS SHALL BE PUBLISHED BY THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL NO LATER THAN THE FIRST OF JULY IN ANY GIVEN YEAR,
PROVIDED THAT FOR NEW YORK CITY AND ANY MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM,
ROCKLAND, SUFFOLK, AND WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE
THE NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U),
AND PROVIDED FURTHER THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST
REGION CONSUMER PRICE INDEX.
m. "Person with a disability" means an individual who is currently
receiving social security disability insurance (SSDI) or supplemental
security income (SSI) benefits under the federal social security act or
disability pension or disability compensation benefits provided by the
United States department of veterans affairs or those previously eligi-
ble by virtue of receiving disability benefits under the supplemental
security income program or the social security disability program and
currently receiving medical assistance benefits based on determination
of disability as provided in section three hundred sixty-six of the
social services law and whose income for the current income tax year,
together with the income of all members of such individual's household,
does not exceed [fifty] SEVENTY-FIVE thousand dollars beginning July
first, two thousand [fourteen] TWENTY-SIX, as may be provided by local
law. THE MAXIMUM INCOME THRESHOLD PROVIDED FOR HEREIN SHALL BE
INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF HOUSING
AND COMMUNITY RENEWAL TO REFLECT ANY INCREASE IN THE CONSUMER PRICE
INDEX FOR ALL URBAN CONSUMERS FOR ALL ITEMS AS PUBLISHED BY THE UNITED
STATES BUREAU OF LABOR STATISTICS FOR THE REGION IN WHICH THE HOUSING
ACCOMMODATION IS LOCATED, AS ESTABLISHED FOR THE MOST RECENT PRECEDING
CALENDAR YEAR AS SHALL BE PUBLISHED BY THE DIVISION OF HOUSING AND
S. 9009--B 46
COMMUNITY RENEWAL NO LATER THAN THE FIRST OF JULY IN ANY GIVEN YEAR,
PROVIDED THAT FOR NEW YORK CITY AND ANY MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM,
ROCKLAND, SUFFOLK, AND WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE
THE NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U),
AND PROVIDED FURTHER THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL
LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSU-
ANT TO THIS SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST
REGION CONSUMER PRICE INDEX.
§ 3. Subparagraph (i) of paragraph (a) of subdivision 3 of section 467
of the real property tax law, as amended by section 2 of part K of chap-
ter 59 of the laws of 2023, is amended to read as follows:
(i) if the income of the owner or the combined income of the owners of
the property for the applicable income tax year exceeds the sum of three
thousand dollars, or such other sum not less than three thousand dollars
nor more than [fifty] SEVENTY-FIVE thousand dollars BEGINNING JULY
FIRST, TWO THOUSAND TWENTY-SIX, as may be provided by the local law,
ordinance or resolution adopted pursuant to this section. THE MAXIMUM
INCOME THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE
COMMISSIONER TO REFLECT ANY INCREASE IN THE CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS FOR ALL ITEMS AS PUBLISHED BY THE UNITED STATES BUREAU
OF LABOR STATISTICS FOR THE REGION IN WHICH THE HOUSING ACCOMMODATION IS
LOCATED, AS ESTABLISHED FOR THE MOST RECENT PRECEDING CALENDAR YEAR AS
SHALL BE PUBLISHED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL NO
LATER THAN THE FIRST OF JULY IN ANY GIVEN YEAR, PROVIDED THAT FOR NEW
YORK CITY AND ANY MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDINANCE OR
RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO THIS SECTION
IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK,
AND WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE THE NEW YORK-NE-
WARK-JERSEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U), AND PROVIDED
FURTHER THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDI-
NANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO
THIS SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST REGION
CONSUMER PRICE INDEX.
§ 4. Subparagraph (i) of paragraph (a) of subdivision 5 of section
459-c of the real property tax law, as amended by section 8 of part K of
chapter 59 of the laws of 2023, is amended to read as follows:
(i) if the income of the owner or the combined income of the owners of
the property for the applicable income tax year exceeds the sum of three
thousand dollars, or such other sum not less than three thousand dollars
nor more than [fifty] SEVENTY-FIVE thousand dollars BEGINNING JULY
FIRST, TWO THOUSAND TWENTY-SIX, as may be provided by the local law or
resolution adopted pursuant to this section. THE MAXIMUM INCOME THRESH-
OLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMISSIONER
TO REFLECT ANY INCREASE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS FOR ALL ITEMS AS PUBLISHED BY THE UNITED STATES BUREAU OF
LABOR STATISTICS FOR THE REGION IN WHICH THE HOUSING ACCOMMODATION IS
LOCATED, AS ESTABLISHED FOR THE MOST RECENT PRECEDING CALENDAR YEAR AS
SHALL BE PUBLISHED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL NO
LATER THAN THE FIRST OF JULY IN ANY GIVEN YEAR, PROVIDED THAT FOR NEW
YORK CITY AND ANY MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDINANCE OR
RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO THIS SECTION
IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK,
AND WESTCHESTER, SUCH CONSUMER PRICE INDEX SHALL BE THE NEW YORK-NE-
WARK-JERSEY CITY, NY-NJ-PA CONSUMER PRICE INDEX (CPI-U), AND PROVIDED
S. 9009--B 47
FURTHER THAT FOR ANY OTHER MUNICIPALITY THAT ADOPTS A LOCAL LAW, ORDI-
NANCE OR RESOLUTION PROVIDING FOR THE ABATEMENT OF TAXES PURSUANT TO
THIS SECTION, SUCH CONSUMER PRICE INDEX SHALL BE THE NORTHEAST REGION
CONSUMER PRICE INDEX.
§ 5. Section 4 of part U of chapter 55 of the laws of 2014, amending
the real property tax law relating to the tax abatement and exemption
for rent regulated and rent controlled property occupied by senior citi-
zens, as amended by chapter 144 of the laws of 2024, is amended to read
as follows:
§ 4. This act shall take effect July 1, 2014[, and sections one and
two of this act shall expire and be deemed repealed June 30, 2026;
provided that the amendment to section 467-b of the real property tax
law made by section one of this act shall not affect the expiration of
such section and shall be deemed to expire therewith].
§ 6. Section 4 of chapter 129 of the laws of 2014, amending the real
property tax law relating to the tax abatement and exemption for rent
regulated and rent controlled property occupied by persons with disabil-
ities, as amended by chapter 144 of the laws of 2024, is amended to read
as follows:
§ 4. This act shall take effect July 1, 2014 [provided, however, that:
(a) the amendments to paragraph b of subdivision 3 of section 467-b of
the real property tax law made by section one of this act shall be
subject to the expiration and reversion of such subdivision pursuant to
section 17 of chapter 576 of the laws of 1974, as amended, when upon
such date the provisions of section two of this act shall take effect;
and
(b) nothing contained in this act shall be construed so as to extend
the provisions of this act beyond June 30, 2026, when upon such date
this act shall expire and the provisions contained in this act shall be
deemed repealed].
§ 7. This act shall take effect immediately.
SUBPART B
Section 1. The administrative code of the city of New York is amended
by adding a new section 26-605.2 to read as follows:
§ 26-605.2 REQUIRED NOTICE. (A) A TENANT RESIDING IN A DWELLING UNIT
SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL BE FURNISHED A NOTICE
INFORMING SUCH TENANT ABOUT THE TENANT'S POTENTIAL ELIGIBILITY FOR A
RENT INCREASE EXEMPTION PURSUANT TO THIS CHAPTER AND SECTIONS FOUR
HUNDRED SIXTY-SEVEN-B AND FOUR HUNDRED SIXTY-SEVEN-C OF THE THE REAL
PROPERTY TAX LAW. THE FORM AND CONTENT OF SUCH NOTICE SHALL BE PROMUL-
GATED AS REQUIRED BY PARAGRAPH I OF SUBDIVISION THREE OF SECTION FOUR
HUNDRED SIXTY-SEVEN-B OF THE REAL PROPERTY TAX LAW, PROVIDED THAT SUCH
NOTICE SHALL CLEARLY AND CONSPICUOUSLY DISPLAY THE ELIGIBILITY REQUIRE-
MENTS FOR THE RENT INCREASE EXEMPTION AND THE WEBSITE ADDRESS AND TELE-
PHONE NUMBER WHERE TENANTS MAY OBTAIN MORE INFORMATION.
(B) THE NOTICE REQUIRED BY SUBDIVISION (A) OF THIS SECTION SHALL BE
FURNISHED BY THE FOLLOWING AGENCIES OR INDIVIDUALS AT THE SAME TIME AS
THE NOTICE REQUIRED BY THE OCCURRENCE OF THE FOLLOWING EVENTS:
(1) THE STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL
PROVIDE SUCH NOTICE TO A TENANT IN THE EVENT OF:
(I) RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A MAJOR
CAPITAL IMPROVEMENT;
(II) A RENT INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE PRIVATE
HOUSING FINANCE LAW;
S. 9009--B 48
(III) RECEIPT OF THE ANNUAL CERTIFICATION REQUIRED BY SECTION THIRTY-
ONE OF THE PRIVATE HOUSING FINANCE LAW; AND
(IV) FOR DWELLING UNITS SUBJECT TO CHAPTER THREE OF THIS TITLE, A
MAXIMUM BASE RENT ADJUSTMENT PURSUANT TO PARAGRAPH ONE OF SUBDIVISION G
OF SECTION 26-405 OF THIS TITLE.
(2) THE LANDLORD OF A DWELLING UNIT SHALL PROVIDE SUCH NOTICE TO A
TENANT:
(I) WITH AN INITIAL LEASE AND ANY RENEWAL LEASE; AND
(II) UPON THE ANNUAL REGISTRATION OF A HOUSING ACCOMMODATION AS
REQUIRED BY SECTION 26-517 OF THIS TITLE.
(C) WHEN NOTICE IS FURNISHED PURSUANT TO PARAGRAPH ONE OF SUBDIVISION
(B) OF THIS SECTION, SUCH NOTICE SHALL INCLUDE SPECIFIC INFORMATION AS
TO THE AGENCY PROVIDING SUCH NOTICE.
§ 2. Subparagraph 2 of paragraph i of subdivision 3 of section 467-b
of the real property tax law, as added by chapter 424 of the laws of
2015, is amended to read as follows:
(2) (A) a landlord of any housing accommodation subject to provisions
of the local emergency housing rent control act, the emergency tenant
protection act of nineteen seventy-four or any local laws enacted pursu-
ant thereto, the emergency housing rent control law or the rent stabili-
zation law of nineteen hundred sixty-nine shall, at least once annually,
including with a new lease and all renewal leases AND UPON THE ANNUAL
REGISTRATION OF A HOUSING ACCOMMODATION AS REQUIRED BY SECTION 26-517 OF
THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK delivered to the occu-
pant of such accommodation, provide the informational material describ-
ing eligibility for and the benefits of the senior citizen rent increase
exemption program and the disability rent increase exemption program, as
provided by the entity administering the program pursuant to subpara-
graph one of this paragraph.
(B) THE NOTICE REQUIRED BY CLAUSE (A) OF THIS SUBPARAGRAPH SHALL BE
FURNISHED BY THE STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL TO
A TENANT AT THE SAME TIME AS:
(I) RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A MAJOR
CAPITAL IMPROVEMENT;
(II) A RENT INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE PRIVATE
HOUSING FINANCE LAW;
(III) RECEIPT OF THE ANNUAL CERTIFICATION REQUIRED BY SECTION THIRTY-
ONE OF THE PRIVATE HOUSING FINANCE LAW; AND
(IV) FOR DWELLING UNITS SUBJECT TO CHAPTER THREE OF TITLE TWENTY-SIX
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, A MAXIMUM BASE RENT
ADJUSTMENT PURSUANT TO PARAGRAPH ONE OF SUBDIVISION G OF SECTION 26-405
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
(C) WHEN NOTICE IS FURNISHED PURSUANT TO CLAUSE (B) OF THIS SUBPARA-
GRAPH, SUCH NOTICE SHALL INCLUDE SPECIFIC INFORMATION AS TO THE AGENCY
PROVIDING SUCH NOTICE.
§ 3. Subdivision 3 of section 467-c of the real property tax law is
amended by adding a new paragraph e to read as follows:
E. (1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A TENANT
RESIDING IN A DWELLING UNIT SUBJECT TO THE PROVISIONS OF THIS SECTION
SHALL BE FURNISHED A NOTICE INFORMING SUCH TENANT ABOUT THE TENANT'S
POTENTIAL ELIGIBILITY FOR A RENT INCREASE EXEMPTION PURSUANT TO THIS
SECTION. THE FORM AND CONTENT OF SUCH NOTICE SHALL BE PROMULGATED AS
REQUIRED BY PARAGRAPH I OF SUBDIVISION THREE OF SECTION FOUR HUNDRED
SIXTY-SEVEN-B OF THIS TITLE.
S. 9009--B 49
(2) THE NOTICE REQUIRED BY SUBPARAGRAPH ONE OF THIS PARAGRAPH SHALL BE
FURNISHED BY THE FOLLOWING AGENCIES OR INDIVIDUALS AT THE SAME TIME AS
THE NOTICE REQUIRED BY THE OCCURRENCE OF THE FOLLOWING EVENTS:
(A) THE STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL
PROVIDE SUCH NOTICE TO A TENANT IN THE EVENT OF:
(I) RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A MAJOR
CAPITAL IMPROVEMENT;
(II) A RENT INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE PRIVATE
HOUSING FINANCE LAW;
(III) RECEIPT OF THE ANNUAL CERTIFICATION REQUIRED BY SECTION THIRTY-
ONE OF THE PRIVATE HOUSING FINANCE LAW; AND
(IV) FOR DWELLING UNITS SUBJECT TO CHAPTER THREE OF TITLE TWENTY-SIX
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, A MAXIMUM BASE RENT
ADJUSTMENT PURSUANT TO PARAGRAPH ONE OF SUBDIVISION G OF SECTION 26-405
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
(B) THE LANDLORD OF A DWELLING UNIT SHALL PROVIDE SUCH NOTICE TO A
TENANT:
(I) WITH AN INITIAL LEASE AND ANY RENEWAL LEASE; AND
(II) UPON THE ANNUAL REGISTRATION OF A HOUSING ACCOMMODATION AS
REQUIRED BY SECTION 26-517 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
YORK.
(3) WHEN NOTICE IS FURNISHED PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH
TWO OF THIS PARAGRAPH, SUCH NOTICE SHALL INCLUDE SPECIFIC INFORMATION AS
TO THE AGENCY PROVIDING SUCH NOTICE.
§ 4. This act shall take effect on the thirtieth day after it shall
have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.
§ 2. Severability. If any clause, sentence, paragraph, section or
subpart of this act shall be adjudged by any court of competent juris-
diction to be invalid and after exhaustion of all further judicial
review, the judgment shall not affect, impair, or invalidate the remain-
der thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or subpart of this act directly involved in
the controversy in which the judgment shall have been rendered.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through B of this Part shall
be as specifically set forth in the last section of such Subparts.
PART W
Section 1. Subdivisions 2, 4 and 5 of section 136 of the racing,
pari-mutuel wagering and breeding law, as added by section 1 of subpart
A of part FF of chapter 59 of the laws of 2025, are amended to read as
follows:
2. Beginning with state fiscal year two thousand twenty-six, the
aggregate amount of the pari-mutuel wagering tax paid by a harness track
pursuant to [paragraph (b) of] subdivision one of this section in a
state fiscal year shall not exceed the pari-mutuel wagering tax attrib-
utable to live racing handle paid by such harness track in state fiscal
year two thousand twenty-four.
4. Breaks[, as defined in sections two hundred thirty-six, two hundred
thirty-eight, three hundred eighteen, and four hundred eighteen of this
chapter] are not permitted, unless required by another jurisdiction
pursuant to section nine hundred five of this chapter. All distributions
S. 9009--B 50
to the holders of winning tickets shall be calculated to the nearest
penny.
5. Notwithstanding subdivision four of this section, a racetrack may
round to the nearest nickel for bets made at the facility[, however the]
ONLY IF SUCH breaks [must be] ARE directed to the retired and rescued
thoroughbred horse aftercare fund pursuant to section two hundred nine-n
of the tax law if the bet was made on a thoroughbred race, and to the
retired and rescued standardbred horse aftercare fund pursuant to
section two hundred nine-o of the tax law if the bet was made on a
[standardbred] HARNESS race.
§ 2. Section 236 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, subdivisions 1, 2, and 3
as amended by chapter 243 of the laws of 2020, is amended to read as
follows:
§ 236. Disposition of pari-mutuel pools; percentage payable to state
as a tax; authority of counties or certain cities to impose a tax. 1.
Every corporation authorized under this chapter to conduct pari-mutuel
betting at a race meeting on races run thereat, except as provided in
section two hundred thirty-eight of this article with respect to the
franchised corporation, shall distribute all sums deposited in any pari-
mutuel pool to the holders of winning tickets therein, providing such
tickets be presented for payment before April first of the year follow-
ing the year of their purchase, less an amount that shall be established
and retained by such racing corporation of between fourteen to twenty
percent of the total deposits in pools resulting from regular on-track
bets and less sixteen to twenty-two percent of the total deposits in
pools resulting from multiple on-track bets and less twenty to thirty
percent of the total deposits in pools resulting from exotic on-track
bets and less twenty to thirty-six percent of the total pools resulting
from super exotic on-track bets[, plus the breaks]. The retention rate
to be established is subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter [and breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars]. "Super exotic bets"
shall have the meaning set forth in section three hundred one of this
chapter. Of the amount so retained there shall be paid by such corpo-
ration to the department of taxation and finance as a reasonable tax by
the state for the privilege of conducting pari-mutuel betting on the
races run at the race meeting held by such corporation, which tax is
hereby levied, [the following percentages of the total pool, plus
fifty-five percent of the breaks; the applicable rates for regular and
multiple bets shall be one and one-half percent; the applicable rates
for exotic bets shall be six and three-quarter percent and the applica-
ble rate for super exotic bets shall be seven and three-quarter percent.
Effective on and after September first, nineteen hundred ninety-four,
the applicable tax rate shall be one percent of all wagers, provided
that, an amount equal to one-half the difference between the taxation
rate for on-track regular, multiple and exotic bets as of December thir-
ty-first, nineteen hundred ninety-three and the rates on such on-track
S. 9009--B 51
wagers as herein provided shall be used exclusively for purses.
Provided, however, that] IN THE APPLICABLE PERCENTAGE SET FORTH IN
SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY
SUCH RACING CORPORATION SHALL, for any twelve-month period beginning on
April first in nineteen hundred ninety and any year thereafter, [each of
the applicable rates set forth above shall be increased by one-quarter
of one percent on all on-track bets of any such racing corporation that
did not] expend an amount equal to at least one-half of one percent of
its on-track bets during the immediately preceding calendar year for
enhancements consisting of capital improvements as defined by section
two hundred thirty-seven of this article, repairs to its physical plant,
structures, and equipment used in its racing or wagering operations [as
certified by the commission to the commissioner of taxation and finance
no later than eighty days after the close of such calendar year,] and
five special events at each track in each calendar year, not otherwise
conducted in the ordinary course of business, the purpose of which shall
be to encourage, attract and promote track attendance and encourage new
and continued patronage, which events shall be subject to the prior
approval of the commission for purposes of this subdivision. In the
determination of the amounts expended for such enhancements, the commis-
sion may consider the immediately preceding twelve-month calendar period
or the average of the two immediately preceding twelve-month calendar
periods. Provided further, however, that of the portion of the increased
amounts retained by such corporation above those amounts retained in
nineteen hundred eighty-four, an amount of such increase shall be
distributed to purses in the same proportion as commissions and purses
were distributed during nineteen hundred eighty-four as certified by the
commission. [Such corporation in the second zone shall receive a credit
against the daily tax imposed by this subdivision in an amount equal to
four-tenths of one percent of total daily pools resulting from the
simulcast of such corporation's races to licensed facilities operated by
regional off-track betting corporations in accordance with section one
thousand eight of this chapter, provided however, that sixty percent of
the amount of such credit shall be used exclusively to increase purses
for overnight races conducted by such corporation; and, provided
further, that in no event shall such total daily credit exceed four-
tenths of one percent of the total daily pool of such corporation.]
Such corporation shall pay to the New York state thoroughbred breeding
and development fund one-half of one percent of the total daily on-track
pari-mutuel pools from regular, multiple and exotic bets, and three
percent of super exotic bets. [The corporation shall receive credit as a
reduction of the tax by the state for the privilege of conducting pari-
mutuel betting for the amounts, except amounts paid from super exotic
betting pools, paid to the New York state thoroughbred breeding and
development fund after January first, nineteen hundred seventy-eight.]
Such corporation shall distribute to purses an amount equal to fifty
percent of any compensation it receives from simulcasting or from wager-
ing conducted outside the United States. Such corporation shall pay to
the commission as a regulatory fee, which fee is hereby levied, six-
tenths of one percent of the total daily on-track pari-mutuel pools of
such corporation.
2. The balance of the retained percentage of such pool [and of the
breaks] shall be held by such corporation for its own use and purposes,
except that in addition to any payments to purses provided for in subdi-
vision one of this section, an amount equal to two and one-half percent
of the total pools resulting from on-track regular bets and exotic bets
S. 9009--B 52
and an amount equal to three and one-half percent of the total pools
resulting from on-track multiple bets and an amount equal to twelve
percent of on-track super exotic bets shall be used exclusively for the
purpose of increasing purses (including stakes, premiums and prizes)
awarded to horses in races conducted by such corporation. Such two and
one-half percent and three and one-half percent shall be in addition to
(i) four and one-half percent of such total pools resulting from regular
and multiple wagers and five and one-half percent of such total pools
resulting from exotic wagers, or (ii) the percentage of such total pools
used for purses (including stakes, premiums and prizes) during the year
nineteen hundred eighty-two, whichever is larger. Such percentage of the
total pools mentioned in this subdivision shall be used for purses
(including stakes, premiums and prizes) in races hereafter conducted by
such corporation, and any portion not so used during any year shall be
so used during the following year[, failing which such portion shall be
payable to the commissioner of taxation and finance as additional tax].
The commission shall report annually, on or before July first, to the
director of the budget, the chair of the senate finance committee and
the chair of the assembly ways and means committee the extent to which
such corporation used and retained percentages [and breakage] for oper-
ations, maintenance, capital improvements, advertising and promotion,
administration and general overhead and evaluate the effectiveness and
make recommendations with respect to the application of the [reduced]
rates of taxation [as provided for in subdivision one of this section in
accomplishing the objectives stated therein]. Such report shall also
specify the amount of such retained percentages [and breakage] used for
investments not directly related to racing activities and such amounts
used to declare dividends or other profit distributions, additions to
capital stock, its sale and transfer and additions to retained earnings.
Such reports shall also include an analysis of any such agreements or
proposals to conduct or otherwise expand wagers authorized under article
ten of this chapter and present its conclusions with respect to the
conduct of such wagering, the nature of such proposals and agreements,
and recommendations to ensure the future maintenance of the intent of
this article.
3. [Tax rates in event of a failure to maintain] MAINTENANCE OF pari-
mutuel racing activity. [a. Notwithstanding any other provision of this
section to the contrary, for] FOR any calendar year commencing on or
after January first, nineteen hundred eighty-nine, [in which] a racing
corporation in zone two [does] SHALL not conduct [a minimum number of]
FEWER pari-mutuel programs and pari-mutuel races at its facilities
[equal to at least] THAN ninety percent of the programs and races so
conducted during nineteen hundred eighty-five or during nineteen hundred
eighty-six, whichever is less, [in lieu of the tax rates set forth in
subdivision one of this section the applicable pari-mutuel tax rates for
such corporation with respect to on-track pari-mutuel betting pools
during such year shall be increased by one percent of regular, multiple
and exotic betting pools. Notwithstanding the foregoing, no increase
shall be proposed unless such corporation has been afforded notice and
opportunity to be heard. The commission shall promulgate rules and regu-
lations to implement the provisions relating to notice and hearing.
b. The provisions of this subdivision shall not apply to a corporation
for any calendar year for which the commission certifies to the commis-
sioner of taxation and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such corporation has been assigned for such year, from the programs
S. 9009--B 53
and races it requested, at least the minimum number of programs and
races prescribed in paragraph a of this subdivision, or, if fewer than
such number were assigned for such year, that the assignment of such
lesser number was for] UNLESS SUCH CORPORATION DEMONSTRATES TO THE
SATISFACTION OF THE COMMISSION good cause due to factors beyond the
control of such corporation or because the commission [found] FINDS that
it would be uneconomical or impractical for such corporation to be
assigned OR CONDUCT the prescribed number[; and
(ii) by January thirty-first of the year immediately subsequent to
such year, that such corporation did conduct such number of programs and
races as were certified pursuant to subparagraph (i) of this paragraph,
or if it failed to conduct such number that such failure was for good
cause due to factors beyond its control or because the commission found
it uneconomical or impractical for such corporation to conduct such a
number.
c. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (i) of paragraph b of this
subdivision with respect to a corporation, the tax imposed by this
section shall be computed by substituting the provisions of paragraph a
of this subdivision for the provisions of subdivision one of this
section and shall pay the tax so computed to the commissioner of taxa-
tion and finance. In such computation and payment, all other provisions
of this section shall apply as if the provisions of this paragraph and
of paragraph a of this subdivision had been incorporated in whole in
subdivision one of this section.
d. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (ii) of paragraph b of this
subdivision with respect to a corporation, the tax required to be paid
hereunder for such year shall be equal to the difference between the tax
imposed pursuant to paragraph a of this subdivision and the tax imposed
pursuant to the provisions of subdivision one of this section less one-
half of such difference in recognition of purses that were required to
be paid, plus an additional amount equal to ten percent of such tax in
the event of a willful failure to comply with the provisions of subpara-
graph (ii) of paragraph b of this subdivision, and such corporation
shall pay the tax so computed to the commissioner of taxation and
finance on or before March fifteenth of the following year. Notwith-
standing the provisions of this subdivision, in the event that upon
appeal from the determination of the commission that the certification
provided in paragraph b of this subdivision will not be made, it is
finally determined that the commission erred in failing to so certify
and that any moneys received by the commissioner of taxation and finance
under paragraph c of this subdivision were paid in error, the same shall
be refunded at the rate of interest of six percent per annum. Payment of
such balance of tax due, or the anticipation of such payment, shall not
affect the determination of purses in the year in which such tax arises
or in the year in which such payment is made nor shall such payment in
any other manner be considered in any statutory or contractual calcu-
lation of purse obligations.
e. Written notice of the certification of the commission pursuant to
the provisions of paragraph b of this subdivision shall be given by the
commission to the applicable corporation by the dates therein specified.
In like manner, written notice that such certification will not be made
shall be given by the commission to the commissioner of taxation and
finance and the applicable corporation by such dates].
S. 9009--B 54
4. The payment of the state tax imposed by this section shall be made
to the commissioner of taxation and finance on the last business day of
each month and shall cover taxes due for the period from the sixteenth
day of the preceding month through the fifteenth day of the current
month provided, however, that such payments required to be made on March
thirty-first shall include all taxes due and accruing through the last
full week of racing in March of the current year or as otherwise deter-
mined by the commissioner of taxation and finance, and shall be accompa-
nied by a report under oath, showing the total of all such contrib-
utions, together with such other information as the commissioner of
taxation and finance may require. A penalty of five [per centum] PERCENT
and interest at the rate of one [per centum] PERCENT per month from the
date the report is required to be filed to the date of payment of the
tax shall be payable in case any tax imposed by this section is not paid
when due. If the commissioner of taxation and finance determines that
any moneys received under this subdivision were paid in error, the
commissioner of taxation and finance may cause the same to be refunded
without interest out of any moneys collected thereunder, provided an
application therefor is filed with the commissioner of taxation and
finance within one year from the time the erroneous payment was made.
Such taxes, interest and penalties when collected, after the deduction
of refunds of taxes erroneously paid, shall be paid by the commissioner
of taxation and finance into the general fund of the state treasury.
5. No county, city, town, village or other political subdivision of
the state may impose, levy or collect a tax on admission fees or tickets
of admission, on wagers made by patrons, in the form of purchases of
pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
breaks, on dividends or payments made to winning bettors, or on that
part of the pari-mutuel pools [or breaks] to be retained by racing
corporations under this section, except as otherwise provided in this
chapter.
§ 3. Section 238 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, subdivision 1 as amended
by chapter 243 of the laws of 2020, paragraph (a) of subdivision 1 as
amended by section 9 of subpart B of part FF of chapter 59 of the laws
of 2025, and paragraph c of subdivision 2 as amended by chapter 367 of
the laws of 2021, is amended to read as follows:
§ 238. Disposition of pari-mutuel pools of the franchised corporation;
percentage payable to state as a tax; authority of counties or certain
cities to impose a tax. 1. (a) The franchised corporation authorized
under this chapter to conduct pari-mutuel betting at a race meeting or
races run thereat shall distribute all sums deposited in any pari-mutuel
pool to the holders of winning tickets therein, provided such tickets
are presented for payment before April first of the year following the
year of their purchase, less an amount that shall be established and
retained by such franchised corporation of between twelve to seventeen
percent of the total deposits in pools resulting from on-track regular
bets, and fourteen to twenty-one percent of the total deposits in pools
resulting from on-track multiple bets and fifteen to twenty-five percent
of the total deposits in pools resulting from on-track exotic bets and
fifteen to thirty-six percent of the total deposits in pools resulting
from on-track super exotic bets[, plus the breaks]. The retention rate
to be established is subject to the prior approval of the commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
S. 9009--B 55
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. [The breaks are hereby defined as
the odd cents over any multiple of five for payoffs greater than one
dollar five cents but less than five dollars, over any multiple of ten
for payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars.] Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, WHICH TAX IS
HEREBY LEVIED, IN the [following percentages of the total pool for regu-
lar and multiple bets five percent of regular bets and four percent of
multiple bets plus twenty percent of the breaks; for exotic wagers seven
and one-half percent plus twenty percent of the breaks, and for super
exotic bets seven and one-half percent plus fifty percent of the breaks.
For the period April first, two thousand one through December thirty-
first, two thousand twenty-six, such tax on all wagers shall be one and
six-tenths percent, plus, in each such period, twenty percent of the
breaks] APPLICABLE PERCENTAGE SET FORTH IN SUBDIVISION ONE OF SECTION
ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. Payment to the New York state
thoroughbred breeding and development fund by such franchised corpo-
ration shall be one-half of one percent of total daily on-track pari-mu-
tuel pools resulting from regular, multiple and exotic bets and three
percent of super exotic bets and for the period April first, two thou-
sand one through December thirty-first, two thousand twenty-six, such
payment shall be seven-tenths of one percent of regular, multiple and
exotic pools.
(b) An amount equal to fifty percent of any compensation received by a
franchised corporation from simulcasting or from wagering conducted
outside the United States or outside New York state and within the
United States shall be distributed to purses, except with respect to
such compensation received from Connecticut which shall be computed as a
percentage of wagering handle in a manner approved by the commission.
(c) An amount equal to fifty percent of any compensation received by
the franchised corporation from simulcasting or from wagering conducted
outside the United States shall be distributed to purses.
(d) (i) [The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
fies the commission by August fifteenth of each year that such pari-mu-
tuel tax rate is effective of its intent to] THE FRANCHISED CORPORATION
SHALL conduct a race meeting at Aqueduct racetrack during the months of
December, January, February, March and April. For purposes of this para-
graph such race meeting shall consist of not less than ninety-five days
of racing unless otherwise agreed to in writing by the New York
Thoroughbred Breeders Inc., the New York thoroughbred horsemen's associ-
ation (or such other entity as is certified and approved pursuant to
section two hundred twenty-eight of this article) and approved by the
commission. Not later than May first of each year [that such pari-mutuel
tax rate is effective], the commission shall determine whether a race
meeting at Aqueduct racetrack consisted of the number of days as
required by this [paragraph] SUBPARAGRAPH. In determining the number of
race days, cancellation of a race day because of an act of God that the
S. 9009--B 56
commission approves or because of weather conditions that are unsafe or
hazardous that the commission approves shall not be construed as a fail-
ure to conduct a race day. Additionally, cancellation of a race day
because of circumstances beyond the control of such franchised corpo-
ration for which the commission gives approval shall not be construed as
a failure to conduct a race day. [If the commission determines that the
number of days of racing as required by this paragraph have not occurred
then the pari-mutuel tax rate in paragraph (a) of this subdivision shall
revert to the pari-mutuel tax rates in effect prior to January first,
nineteen hundred ninety-five.]
(ii) Such franchised corporation shall pay to the commission as a
regulatory fee, which fee is hereby levied, six-tenths of one percent of
the total daily on-track pari-mutuel pools of such franchised corpo-
ration.
2. a. Subject to the provisions of this section the payment of such
state tax shall be made to the commissioner of taxation and finance on
the last business day of each month and shall cover taxes due for the
period from the sixteenth day of the preceding month through the
fifteenth day of the current month provided, however, that such payments
required to be made on March thirty-first shall include all taxes due
and accruing through the last full week of racing in March of the
current year or as otherwise determined by the commissioner, and shall
be accompanied by a report under oath, showing such information as the
commissioner may require. A penalty of five [per centum] PERCENT and
interest at the rate of one [per centum] PERCENT per month from the date
the report is required to be filed to the date of the payment of the tax
shall be payable in case any tax imposed by this section is not paid
when due. If the commissioner determines that any moneys received by the
commissioner under this section were paid in error, the commissioner may
cause the same to be refunded without interest out of any moneys
collected thereunder, provided an application therefor is filed with the
commissioner within one year from the time the erroneous payment was
made. Such taxes, interest and penalties when collected, after the
deduction of refunds of taxes erroneously paid, shall be paid by the
commissioner into the general fund of the state treasury.
b. The balance of the retained percentage of such pool [and of the
breaks] shall be held by such franchised corporation for its corporate
purposes, except as provided in paragraph c of this subdivision.
c. An amount equal to five and ninety-four hundredths percent of the
total pools resulting from on-track regular bets and an amount equal to
five and ninety-four hundredths percent of the total pools resulting
from on-track multiple and exotic bets, and twelve percent of the total
pools resulting from super exotic bets shall be used exclusively for
purses (including stakes, premiums and prizes) awarded in races
conducted by such franchised corporation. Any portion of such percent
not so used during any year shall be so used during the following year[,
failing which such portion shall be payable to the commissioner as addi-
tional tax. Such additional tax shall be payable on or before April
first in the year following the year in which such portion is not so
used and the provisions of paragraph a of this subdivision shall be
applicable thereto except as to the time of payment].
3. No county, city, town, village or other political subdivision of
the state may impose, levy or collect a tax on admission fees or tickets
of admission, on wagers made by patrons in the form of purchases of
pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on
breaks, on dividends or payments made to winning bettors, or on revenue
S. 9009--B 57
retained by the franchised corporation, except as provided in former
article two-B of the general city law, and as otherwise provided in this
chapter.
[4. Notwithstanding any inconsistent provision of this chapter, when-
ever the franchised corporation operates the Breeder's Cup Meet at one
of its racing facilities, such franchised corporation shall not be
required to pay to the department of taxation and finance pursuant to
this section the pari-mutuel tax on the pari-mutuel pools of such fran-
chised corporation's races during the Breeder's Cup Meet. For the
purposes of this subdivision, the Breeder's Cup Meet shall consist of
three days: the day on which the Breeder's Cup races are conducted, the
day preceding such races and the day subsequent to such races.]
§ 4. Subdivisions 1, 4 and 5 of section 318 of the racing, pari-mutuel
wagering and breeding law, subdivisions 1 and 5 as amended by chapter
243 of the laws of 2020, and subdivision 4 as amended by chapter 261 of
the laws of 1988, are amended to read as follows:
1. Except as otherwise provided by law, every association or corpo-
ration authorized under this article to conduct pari-mutuel betting at a
harness horse race meeting on races run thereat shall distribute all
sums deposited in any pari-mutuel pool to the holders of winning tickets
therein, provided such tickets be presented for payment prior to April
first of the year following the year of their purchase, less an amount
that shall be established and retained by such racing association or
corporation of between fourteen and twenty percent of the total deposits
in pools resulting from regular bets, less sixteen to twenty-two percent
of the total deposits in pools resulting from multiple bets, less twenty
to thirty percent of the total deposits in pools resulting from exotic
bets, and less twenty to thirty-six percent of the total betting depos-
its in pools resulting from super exotic bets[, plus the breaks]. The
retention rate to be established is subject to the prior approval of the
commission. Such rate may not be changed more than once per calendar
quarter to be effective on the first day of the calendar quarter.
"Exotic bets" and "multiple bets" shall have the meanings set forth in
section five hundred nineteen of this chapter[, "super]. "SUPER exotic
bets" shall have the meaning set forth in subdivision four of section
three hundred one of this article [and "the breaks" are hereby defined
as the odd cents over any multiple of ten for regular and multiple bets,
or for exotic bets, over any multiple of fifty, or for super exotic
bets, over any multiple of one hundred calculated on the basis of one
dollar and otherwise payable to a patron, provided however, that effec-
tive after October fifteenth, nineteen hundred ninety-four breaks are
hereby defined as the odd cents over any multiple of five for payoffs
greater than one dollar five cents but less than five dollars, over any
multiple of ten for payoffs greater than five dollars but less than
twenty-five dollars, over any multiple of twenty-five for payoffs great-
er than twenty-five dollars but less than two hundred fifty dollars, or
over any multiple of fifty for payoffs over two hundred fifty dollars].
a. Of the sum so retained from on-track pari-mutuel betting pools,
such association or corporation authorized to operate in Westchester or
Nassau county: (i) shall pay to the commissioner of taxation and finance
as a reasonable tax for the privilege of conducting pari-mutuel betting
at races run at race meetings held by such corporation or association, a
tax, which is hereby levied, [at the rate of one-half of one percent of
all wagers from total daily on-track pools. Such association or corpo-
ration shall receive credit as a reduction of the daily tax by the state
for the privilege of conducting pari-mutuel betting of amounts equal to
S. 9009--B 58
four-tenths percent of total daily pools resulting from the simulcast of
such association's or corporation's races to licensed facilities oper-
ated by regional off-track betting corporations in accordance with
section one thousand eight of this chapter; provided, however, that in
no event shall total daily credit exceed four-tenths percent of the
total daily pool of such association or corporation. An amount equal to
fifty percent of such credit shall be used to increase purses; provided,
however, that] IN THE APPLICABLE PERCENTAGE SET FORTH IN SUBDIVISION ONE
OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER AS LIMITED BY SUBDIVI-
SION TWO OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY SUCH
ASSOCIATION OR CORPORATION SHALL, for any twelve-month period beginning
on April first in nineteen hundred ninety and any year thereafter, [each
of the applicable rates set forth above shall be increased by one-half
of one percent on all on-track bets of any such racing association or
corporation that did not] expend an amount equal to at least one-half of
one percent of its on-track bets during the immediately preceding calen-
dar year for enhancements consisting of capital improvements as defined
by section three hundred nineteen of this article, repairs to its phys-
ical plant, structures, and equipment used in its racing or wagering
operations, [as certified by the commission to the commissioner of taxa-
tion and finance no later than eighty days after the close of such
calendar year,] and five special events at each track in each calendar
year, not otherwise conducted in the ordinary course of business, the
purpose of which shall be to encourage, attract and promote track
attendance and encourage new and continued patronage, which events shall
be subject to the approval of the commission for purposes of this subdi-
vision. In the determination of the amounts expended for such enhance-
ments, the commission shall consider the average of the two immediately
preceding twelve-month calendar periods. [Notwithstanding the foregoing
no increase shall be imposed unless such corporation or association has
been afforded notice and opportunity to be heard. The commission shall
promulgate rules and regulations to implement the provisions relating to
notice and hearing.]
(ii) except as otherwise provided in this paragraph an amount equal to
six and eight-tenths percent of the total pool resulting from on-track
regular bets, an amount equal to seven and ninety-five one hundredths
percent of the total pool resulting from on-track multiple bets, an
amount equal to ten and one-half percent of the total pool resulting
from on-track exotic bets, an amount equal to fifteen and one-half
percent of the total daily pool resulting from on-track super exotic
bets shall be used exclusively for purses, of which an amount of not
less than ninety percent shall be used exclusively for purses for over-
night races conducted by such association or corporation. Such amounts
may be reduced upon an application approved by the commission and an
agreement between the licensed harness racing corporation or association
and the representative horsemen's organization as a condition to reduce
the amounts of retained percentages as provided for in this section.
However, of the total amount available for purses, an amount as deter-
mined by contractual obligations between an organization representing at
least fifty-one percent of the owners and trainers using the facilities
of such association or corporation for racing, training or stabling
purposes and the association or corporation, shall be used for the
administrative purposes of said organization and for such welfare and
medical plans for regularly employed backstretch employees principally
employed at the facilities of such corporation or association as
provided by said organization, provided, however, that eligibility for
S. 9009--B 59
benefits in such plans shall not be conditioned upon membership in such
organization by any employee or employer thereof, and any denial of
eligibility for benefits in such plans which, upon investigation and
review by the commission, is determined to have resulted from a person,
firm, association, corporation or organization knowingly aiding in or
permitting eligibility for benefits being conditioned upon membership in
such organization shall subject such organization to the penalties
imposed under sections three hundred ten and three hundred twenty-one of
this article but the ratio between the amounts actually expended for
such welfare and medical plans and the cost actually incurred in admin-
istering such welfare and medical plans for fiscal years of such corpo-
ration or association, on or after July twenty-fourth, nineteen hundred
eighty-one, shall not be less than the ratio between such amounts actu-
ally expended and such costs actually incurred for the fiscal year imme-
diately prior to such date. Such organization shall annually on or
before July first certify to the commission that it represents at least
fifty-one percent of such owners and trainers and provide copies of such
certification to such association or corporation. Any other organization
claiming to represent at least fifty-one percent of such owners and
trainers may file a challenge with the commission within fifteen days of
such original certification. The commission shall examine such claim and
may undertake studies and conduct hearings to determine the validity of
such claim. Within sixty days of receiving such challenge and based
upon the findings of such studies and hearings, the commission shall
render a decision on the validity of such claim and advise such organ-
izations and association or corporation of its determination. Upon
receipt of such original certification by such organization, the associ-
ation or corporation shall make such payments to said organization and,
in the event of a challenge brought to any other organization, such
payments shall continue to be made until such time as the commission
renders its decision on such challenge; and
(iii) the balance of the retained percentage of such pools [and the
balance of the breaks] may be held by such association or corporation
for its own use and purposes except as provided in paragraph c of this
subdivision and in subdivision four of section three hundred one of this
article, provided, however, that the commission shall report annually,
on or before July first, to the director of the budget, the chair of the
senate finance committee and the chair of the assembly ways and means
committee the extent to which such corporations and associations used
such retained percentages [and breakage] for operations, maintenance,
capital improvements, advertising and promotion, administration and
general overhead and evaluate the effectiveness and make recommendations
with respect to the application of the [reduced] rates of taxation as
provided for in subparagraph (i) of this paragraph in accomplishing the
objectives stated therein. Such report shall also specify the amounts of
such retained percentages [and breakage] used for investments not
directly related to racing activities and such amounts used to declare
dividends or other profit distributions, additions to capital stock, its
sale and transfer and additions to retained earnings. Such reports shall
also include an analysis of any such agreements or proposals to conduct
or otherwise expand wagers authorized under article ten of this chapter
and present its conclusions with respect to the conduct of such wager-
ing, the nature of such proposals and agreements, and recommendations to
ensure the future maintenance of the intent of this article and article
ten of this chapter.
S. 9009--B 60
b. (i) Of the sums retained by any other licensed harness racing asso-
ciation or corporation other than those described in paragraph a of this
subdivision, SUCH ASSOCIATION OR CORPORATION SHALL PAY TO THE COMMIS-
SIONER OF TAXATION AND FINANCE AS A REASONABLE TAX FOR THE PRIVILEGE OF
CONDUCTING PARI-MUTUEL BETTING AT RACES RUN AT RACE MEETINGS HELD BY
SUCH CORPORATION OR ASSOCIATION, A TAX, WHICH IS HEREBY LEVIED, IN the
applicable [tax rates for regular bets shall be six-tenths of one
percent; for multiple bets shall be one and one-tenth percent; for exot-
ic bets shall be five and six-tenths percent and for super exotic bets
shall be seven percent, plus fifty percent of the breaks. Effective
September first, nineteen hundred ninety-four, for all licensed harness
racing associations and corporations that have entered into a contract
with their representative horsemen's association on and after such date,
such tax shall be one-half of one percent of all wagers, plus fifty
percent of the breaks.
Provided, however, that] PERCENTAGE SET FORTH IN SUBDIVISION ONE OF
SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER, AS LIMITED BY SUBDIVI-
SION TWO OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER. ANY SUCH
RACING ASSOCIATION OR CORPORATION SHALL for any twelve-month period
beginning on April first in nineteen hundred ninety and any year there-
after, [each of the applicable rates set forth above shall be increased
by one-quarter of one percent on all on-track bets of any such racing
association or corporation that did not] expend an amount equal to at
least one-half of one percent of its on-track bets during the immediate-
ly preceding calendar year for enhancements consisting of capital
improvements as defined by section three hundred nineteen of this arti-
cle, repairs to its physical plant, structures, and equipment used in
its racing or wagering operations, [as certified by the commission to
the commissioner of taxation and finance no later than eighty days after
the close of such calendar year, and five special events at each track
in each calendar year,] not otherwise conducted in the ordinary course
of business, the purpose of which shall be to encourage, attract and
promote track attendance and encourage new and continued patronage,
which events shall be subject to the approval of the commission for
purposes of this subdivision. In this regard, expenditures by a county
agricultural society pursuant to section three hundred nineteen of this
article shall be credited to the applicable harness racing association
or corporation for this purpose. In the determination of the amounts
expended for such enhancements, the commission may consider the imme-
diately preceding twelve-month calendar period or the average of the two
immediately preceding twelve-month calendar periods. [Notwithstanding
the foregoing no increase shall be imposed unless such corporation or
association has been afforded a notice and opportunity to be heard. The
commission shall promulgate rules and regulations to implement the
provisions relating to notice and hearing.
Such associations or corporations shall receive credit as a reduction
of the daily tax by the state for the privilege of conducting pari-mutu-
el betting of amounts equal to four-tenths percent of total daily pools
resulting from the simulcast of such association's or corporation's
races to licensed facilities operated by regional off-track betting
corporations in accordance with section one thousand eight of this chap-
ter, provided however, that in no event shall the total daily credit
exceed four-tenths percent of the total daily pool of such association
or corporation which tax is hereby levied and shall be paid to the
commissioner of taxation and finance as a reasonable tax imposed by the
state for the privilege of conducting pari-mutuel betting at races run
S. 9009--B 61
at race meetings held by such association or corporation.] The commis-
sion shall report annually, before July first, to the director of the
budget, the chair of the senate finance committee and the chair of the
assembly ways and means committee the extent to which such corporations
and associations used such retained percentages [and breakage] for oper-
ations, maintenance, capital improvements, advertising and promotion,
administration and general overhead and evaluate the effectiveness and
make recommendations with respect to the application of the [reduced]
rates of taxation as provided for in this subparagraph in accomplishing
the objectives stated therein. Such report shall also specify the
amounts of such retained percentages [and breakage] used for investments
not directly related to racing activities and such amounts used to
declare dividends or other profit distributions, additions to capital
stock, its sale and transfer and additions to retained earnings. Such
reports shall also include an analysis of any such agreements or
proposals to conduct or otherwise expand wagers authorized under article
ten of this chapter and present its conclusions with respect to the
conduct of such wagering, the nature of such proposals and agreements,
and recommendations to ensure the future maintenance of the intent of
this article.
(ii) Of the sums retained by such association or corporation, an
amount equal to one and three-quarters percent of the total pool result-
ing from on-track regular, multiple and exotic bets shall be used exclu-
sively for the purpose of increasing purses awarded in overnight races
conducted by such association or corporation. Such amounts shall be in
addition to purse moneys otherwise provided pursuant to existing
contractual obligations. In this regard an amount equal to twelve
percent of the total bets in super exotic pools shall be used for purses
in lieu of any such contractual obligations that might otherwise apply
to purses to be awarded on super exotic bets. Any portion of such amount
not so used during any year shall be so used during the following year[,
failing which such portion shall be payable to the commissioner of taxa-
tion and finance as additional tax]. In addition to the amounts
required in this paragraph, fifty percent of all additional sums
retained, as a result of tax reductions provided in this section after
September first, nineteen hundred ninety-four to qualified licensed
harness racing associations, shall be used exclusively for purposes of
increasing purses awarded in overnight races conducted by such associ-
ation or corporation, provided that such association or corporation has
entered into a written agreement with its representative horsemen's
organization on and after September first, nineteen hundred ninety-four.
Notwithstanding anything contained herein to the contrary, in a harness
special betting district the amount to be used for purses or the method-
ology for calculating the amount to be used for purses may be specified
in a written contract between a harness racing association or corpo-
ration and its representative horsemen's association. The balance of the
retained percentage of such pool may be held by such corporation or
association for its own use and purposes.
(iii) [Of the amount of the breaks from on-track regular, multiple,
exotic and super exotic bets such association or corporation shall pay
fifty percent to the commissioner of taxation and finance. The balance
of such breaks may be held by such association or corporation for its
own use and purposes.
(iv)] The commission shall as a condition of racing require an associ-
ation authorized to operate in areas other than Westchester or Nassau
county to withhold one percent of all purses and to pay such sum to the
S. 9009--B 62
horsemen's organization representing the owners and trainers using the
facilities of such association [which] THAT had a contract with the
association governing the conditions of racing on January first, nine-
teen hundred ninety-two, as determined by the commission.
Any other horsemen's organization may apply to the commission to be
approved as the qualified organization to receive payment of the one
percent of all purses by submitting to the commission proof of both,
that (i) such organization represents more than fifty-one percent of all
the owners and trainers using the same facilities and (ii) the
horsemen's organization previously approved as qualified by the commis-
sion does not represent fifty-one percent of all the owners and trainers
using the same facilities. If the commission is satisfied that the
documentation submitted with the application of any other horsemen's
organization is conclusive with respect to subparagraphs (i) and (ii) of
this paragraph, the commission may approve the applicant as the quali-
fied recipient organization.
In the best interests of racing, upon receipt of such an application,
the commission may direct the payments to the previously qualified
horsemen's organization to continue uninterrupted, or it may direct the
payments to be withheld and placed in interest-bearing accounts for a
period not to exceed ninety days, during which time the commission shall
review and approve or disapprove the application. Funds held in such
manner shall be paid to the organization approved by the commission. In
no event shall the commission accept more than one such application in
any calendar year from the same horsemen's organization.
The funds authorized to be paid by the commission are to be used
exclusively for the benefit of those horsemen racing in New York state
through the administrative purposes of such qualified organization,
benevolent activities on behalf of backstretch employees, and for the
promotion of equine research.
c. Of the sums retained by any harness racing association or corpo-
ration, an amount equal to one percent of the total pools resulting from
on-track regular, multiple and exotic bets and an amount equal to three
percent of the total pools resulting from on-track super exotic bets
shall be paid to the agriculture and New York state horse breeding
development fund.
d. Every harness racing association or corporation shall pay to the
commission as a regulatory fee, which fee is hereby levied, six-tenths
of one percent of the total daily on-track pari-mutuel pools of such
association or corporation.
4. Notwithstanding any other provisions of this chapter, there shall
be no pari-mutuel tax imposed upon the compensation received by any
harness racing association or corporation in consideration for (a)
permission to have wagering conducted outside this state on races run by
such association or corporation, and (b) the simulcasting outside this
state of races run by such association or corporation, except for such
permission or such simulcasting as may be granted to an off-track
betting operator in the state of Connecticut by a harness racing associ-
ation or corporation located in Nassau or Westchester county. Any such
association or corporation so simulcasting to an off-track betting oper-
ator in the state of Connecticut shall pay to the New York commissioner
of taxation and finance a reasonable tax for such permission and privi-
lege for such simulcasting, which is hereby levied, at the following
rates: one and one-tenth [per centum] PERCENT of total daily regular and
multiple bets; three and one-tenth [per centum] PERCENT of total daily
S. 9009--B 63
exotic bets; and three and one-half [per centum] PERCENT of total daily
super exotic bets.
5. [Tax rates in event of failure to maintain] MAINTENANCE OF pari-mu-
tuel racing activity. [a. Notwithstanding any other provision of this
section to the contrary, for] FOR any calendar year commencing on or
after January first, nineteen hundred eighty-nine, [in which] a harness
racing association or corporation [does] SHALL not conduct [a minimum
number of] FEWER pari-mutuel programs and pari-mutuel races at its
facilities [equal to at least] THAN ninety percent of the programs and
races so conducted during nineteen hundred eighty-five or during nine-
teen hundred eighty-six, whichever is less, [in lieu of the tax rates
set forth in subdivision one of this section the applicable pari-mutuel
tax rates for such association or corporation with respect to on-track
pari-mutuel betting pools during such year shall be as follows:
(i) For such an association or corporation authorized to operate in
Westchester or Nassau county: of total daily on-track pools resulting
from regular bets, three and seventy-five hundredths percent of the
first five hundred thousand dollars comprising such pools and five and
twenty-five hundredths percent of the amount in excess of five hundred
thousand dollars, plus fifty percent of the breaks; of total daily
on-track pools resulting from multiple bets, four and seventy-five
hundredths percent of the first three hundred thousand dollars compris-
ing such pools and six and twenty-five hundredths percent of the amount
in excess of three hundred thousand dollars, plus fifty percent of the
breaks; of total daily on-track pools resulting from exotic bets, eight
and seventy-five hundredths percent of the first two hundred thousand
dollars comprising such pools, and ten and twenty-five hundredths
percent of the amount in excess of two hundred thousand dollars, plus
fifty percent of the breaks; and of total daily on-track pools resulting
from super exotic bets, seven percent, plus fifty percent of the breaks;
and
(ii) For any harness racing association or corporation other than one
described in subparagraph (i) of this paragraph: of total daily on-track
pools resulting from regular bets, one and one-half percent, plus fifty
percent of the breaks; of total daily on-track pools resulting from
multiple bets, two percent, plus fifty percent of the breaks; of total
daily on-track pools resulting from exotic bets, six and one-half
percent, plus fifty percent of the breaks; and of total daily on-track
pools resulting from super exotic bets, seven percent, plus fifty
percent of the breaks.
b. The provisions of this subdivision shall not apply to an associ-
ation or corporation for any calendar year for which the commission
certifies to the commissioner of taxation and finance:
(i) by December fifteenth of the year immediately preceding such year,
that such association or corporation has been assigned for such year,
from the programs and races it requested, at least the minimum number of
programs and races prescribed in paragraph a of this subdivision, or, if
fewer than such number were assigned for such year, that the assignment
of such lesser number was for] UNLESS SUCH ASSOCIATION OR CORPORATION
DEMONSTRATES TO THE SATISFACTION OF THE COMMISSION good cause due to
factors beyond the control of such association or corporation or because
the commission [found] FINDS that it would be uneconomical or impracti-
cal for such association or corporation to be assigned OR CONDUCT the
prescribed number[; and
(ii) by January thirty-first of the year immediately subsequent to
such year, that such association or corporation did conduct such number
S. 9009--B 64
of programs and races as were certified pursuant to subparagraph (i) of
this paragraph, or if it failed to conduct such number that such failure
was for good cause due to factors beyond its control or because the
commission found it uneconomical or impractical for such association or
corporation to conduct such a number.
c. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (i) of paragraph b of this
subdivision with respect to an association or corporation, the tax
imposed by this section shall be computed by substituting the provisions
of paragraph a of this subdivision for the provisions of paragraph a or
b, whichever is applicable, of subdivision one of this section and shall
pay the tax so computed to the commissioner of taxation and finance. In
such computation and payment, all other provisions of this section shall
apply as if the provisions of this paragraph and of paragraph a of this
subdivision had been incorporated in whole in paragraph a or b, whichev-
er is applicable, of subdivision one of this section.
d. For any calendar year for which the commission does not certify
pursuant to the provisions of subparagraph (ii) of paragraph b of this
subdivision with respect to an association or corporation, the tax
required to be paid hereunder for such year shall be equal to the
difference between the tax imposed pursuant to the provisions of para-
graph a of this subdivision and the tax imposed pursuant to the
provisions of paragraph a or b, whichever is applicable, of subdivision
one of this section, less one-half of such difference in recognition of
purses that were required to be paid, plus an additional amount equal to
ten percent of such tax in the event of a willful failure to comply with
the provisions of subparagraph (ii) of paragraph b of this subdivision
and such association or corporation shall pay the tax so computed to the
commissioner of taxation and finance on or before March fifteenth of the
following year. Notwithstanding the provisions of this subdivision, in
the event that upon appeal from the determination of the commission that
the certification provided in paragraph b of this subdivision will not
be made, it is finally determined that the commission erred in failing
to so certify and that any moneys received by the commissioner of taxa-
tion and finance under paragraph c of this subdivision were paid in
error, the same shall be refunded at the rate of interest of six percent
per annum. Payment of such tax due, or the anticipation of such payment,
shall not affect the determination of purses in the year in which such
tax arises or in the year in which such payment is made nor shall such
payment in any other manner be considered in any statutory or contractu-
al calculation of purse obligations.
e. Written notice of the certification of the commission pursuant to
the provisions of paragraph b of this subdivision shall be given by the
commission to the applicable association or corporation by the dates
therein specified. In like manner, written notice that such certif-
ication will not be made shall be given by the commission to the commis-
sioner of taxation and finance and the applicable association or corpo-
ration by such dates].
§ 5. Subdivision 1 of section 418 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 243 of the laws of 2020, is
amended to read as follows:
1. Every association or corporation authorized under [sections two
hundred twenty-two through seven] SECTION FOUR hundred five of this
[chapter] ARTICLE to conduct pari-mutuel betting at a quarter horse race
meeting on races run thereat shall distribute all sums deposited in any
pari-mutuel pool to the holders of winning tickets therein provided such
S. 9009--B 65
tickets be presented for payment before April first of the year follow-
ing the year of their purchase, less seventeen percent of the total
deposits in pools resulting from regular on-track bets and less nineteen
percent of the total deposits in pools resulting from multiple bets and
less twenty-five percent of the total deposits in pools resulting from
exotic on-track bets[, plus the breaks]. "Multiple bet" or "multiple
wager" shall mean a single bet or wager on two horses, evidenced by a
single ticket and representing an interest in a single betting pool.
"Exotic bet" or "exotic wager" shall mean a single bet or wager on three
or more horses, evidenced by a single ticket and representing an inter-
est in a single betting pool. [The breaks for regular bets and multiple
bets are hereby defined as the odd cents over any multiple of ten or for
exotic bets, over any multiple of fifty calculated on the basis of one
dollar and otherwise payable to a patron.] Of the sum so retained [the
applicable tax rates for regular bets shall be three percent; the appli-
cable tax rates for multiple bets shall be three and one-half percent;
the applicable tax rates for exotic bets] THERE shall be eight percent,
plus sixty-five percent of the amount of the breaks from on-track regu-
lar, multiple and exotic bets shall be paid by such corporation or asso-
ciation to the department of taxation and finance as a reasonable tax by
the state for the privilege of conducting pari-mutuel betting on the
races run at the quarter horse race meetings held by such corporation or
association, which tax is hereby levied, [and the balance of the
retained percentage of such pool and of the breaks may be held by such
corporation or association for its own use and purposes] IN THE APPLICA-
BLE PERCENTAGE SET FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIR-
TY-SIX OF THIS CHAPTER. The payment of such state tax shall be made to
the department of taxation and finance at such regular intervals as the
department of taxation and finance may require, and shall be accompanied
by a report under oath showing the total of all such contributions
together with such other information as the department of taxation and
finance may require. A penalty of five percent and interest at the rate
of one percent per month from the date the report is required to be
filed to the date of payment of the tax shall be payable in case any tax
imposed by this section is not paid when due. If the department of taxa-
tion and finance determines that any moneys received under this section
were paid in error, it may cause the same to be refunded without inter-
est out of any moneys collected thereunder, provided an application
therefor is filed with it within one year from the time the erroneous
payment was made. Such taxes, interest and penalties when collected,
after the deduction of refunds of taxes erroneously paid, shall be paid
by the department of taxation and finance into the general fund of the
state treasury. [Ten percent of the breaks shall be paid to the New York
state quarter horse breeding and development fund.]
§ 6. Subdivisions 1, 5, 7 and 8 of section 527 of the racing, pari-mu-
tuel wagering and breeding law, as amended by chapter 18 of the laws of
2008, the opening paragraph of subdivision 1 and subdivision 5 as
amended by chapter 243 of the laws of 2020, are amended to read as
follows:
1. The disposition of the retained commission from pools resulting
from regular, multiple or exotic bets, as the case may be, whether
placed on races run within a region or outside a region, conducted by
racing corporations, harness racing associations or corporations, quar-
ter horse racing associations or corporations or races run outside the
state shall be governed by the tables in paragraphs a and b of this
subdivision. [The rate denominated "state tax"] THERE shall [represent
S. 9009--B 66
the rate of] BE PAID BY EACH REGIONAL CORPORATION CONDUCTING OFF-TRACK
BETTING, AS a reasonable tax imposed upon the retained commission for
the privilege of conducting off-track pari-mutuel betting, which tax is
hereby levied [and], A PERCENTAGE OF ALL MONEY WAGERED ON LIVE RACES
THROUGH SUCH CORPORATION, WHICH shall be payable in the manner set forth
in this section AND IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX
OF THIS CHAPTER. Each off-track betting corporation shall pay to the
commission as a regulatory fee, which fee is hereby levied, six-tenths
of one percent of the total daily pools of such corporation. Each corpo-
ration shall also pay twenty percent of the breaks derived from bets on
OUT-OF-STATE harness races and fifty percent of the breaks derived from
bets on all other OUT-OF-STATE races to the agriculture and New York
State horse breeding and development fund and to the thoroughbred breed-
ing and development fund, the total of such payments to be apportioned
fifty percent to each such fund. For the purposes of this section, the
New York city, Suffolk, Nassau, and the Catskill regions shall consti-
tute a single region and any thoroughbred track located within the Capi-
tal District region shall be deemed to be within such single region. A
"regional meeting" shall refer to either harness or thoroughbred meet-
ings, or both, except that a franchised corporation shall not be a
regional track for the purpose of receiving distributions from bets on
thoroughbred races conducted by a thoroughbred track in the Catskill
region conducting a mixed meeting. With the exception of a harness
racing association or corporation first licensed to conduct pari-mutuel
wagering at a track located in Tioga, Saratoga or Westchester county
after January first, two thousand five, racing corporations first
licensed to conduct pari-mutuel racing after January first, nineteen
hundred eighty-six or a harness racing association or corporation first
licensed to conduct pari-mutuel wagering at a track located in Genesee
County after January first, two thousand five, and quarter horse tracks
shall not be "regional tracks"; if there is more than one harness track
within a region, such tracks shall evenly divide payments made pursuant
to the tables in paragraphs a and b of this subdivision when neither
track is running. In the event a track elects to reduce its retained
percentage from any or all of its pari-mutuel pools, the payments to the
track holding the race and the regional track required by paragraphs a
and b of this subdivision shall be reduced in proportion to such
reduction. Nothing in this section shall be construed to authorize the
conduct of off-track betting contrary to the provisions of section five
hundred twenty-three of this article.
a. Regular and multiple bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 3.50 N/A [.30]
out-region, during a regional
meeting;....................... 1.00 2.50 [.30]
out-region, no regional
meeting;....................... 1.75 1.75 [.30]
Racing corporations
in special
betting district:
S. 9009--B 67
in-special betting district;... 3.80 N/A [1.00]
out-district, during a regional
meeting;....................... 1.00 2.80 [1.00]
out-district, no regional
meeting;....................... 1.90 1.90 [1.00]
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill regions:
in region;..................... 4.00 N/A [.70]
out-region, during a regional
meeting;....................... 1.00 3.00 [.70]
out-region, no regional
meeting;....................... 2.00 2.00 [.70]
Harness racing associations or
corporations:
in-special betting
district;...................... 4.00 N/A [.50]
out-district, during a
regional meeting;.............. 1.00 3.00 [.50]
out-district, no regional
meeting;....................... 2.00 2.00 [.50]
Other harness racing associations
or corporations:
in region;..................... 4.00 N/A [.50]
out-region, during a regional
meeting;....................... 1.00 3.00 [.50]
out-region, no regional
meeting;....................... 2.00 2.00 [.50]
Quarter horse racing associations
or corporations;............... 3.50 N/A [1.10]
Out-of-state tracks:............. 3.50 divided [1.10]
pursuant to
paragraph
g of this
subdivision
b. Exotic bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 6.50 N/A [1.30]
out-region, during a regional
meeting;....................... 2.00 4.50 [1.30]
out-region, no regional
meeting;....................... 3.25 3.25 [1.30]
Racing corporations
in special
betting district:
in-special betting districts;.. 6.80 N/A [3.00]
out-district, during a regional
meeting;....................... 2.00 4.80 [3.00]
out-district, no regional
meeting;....................... 3.40 3.40 [3.00]
S. 9009--B 68
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill
regions:
in region;..................... 7.00 N/A [2.70]
out-region, during a regional
meeting;....................... 2.00 5.00 [2.70]
out-region, no regional
meeting;....................... 3.50 3.50 [2.70]
Harness racing associations
or corporations:
in-special betting
district;...................... 7.00 N/A [2.50]
out-district, during a
regional meeting;.............. 2.00 5.00 [2.50]
out-district, no regional
meeting;....................... 3.50 3.50 [2.50]
Other harness racing associa-
tions or corporations:
in-region;..................... 7.00 N/A [2.50]
out-region, during a
regional meeting;.............. 2.00 5.00 [2.50]
out-region, no regional
meeting;....................... 3.50 3.50 [2.50]
Quarter horse racing associa-
tions or corporations;......... 6.50 N/A [3.10]
Out-of-state tracks:............. 6.50 divided [3.10]
pursuant to
paragraph
g of this
subdivision
c. Super Exotic Bets:
Track
holding Regional [State]
race track [tax]
Pools on races run by:
Franchised corporations:
in region;..................... 12.00 N/A [3.50]
out-region, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
Racing corporations
in special
betting district:
in-special betting districts;.. 12.00 N/A [3.50]
out-district, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-district, no regional
meeting;....................... 6.00 6.00 [3.50]
Harness racing associations or
corporations within Suffolk,
Nassau, or Catskill regions:
in-region;..................... 12.00 N/A [3.50]
S. 9009--B 69
out-region, during a regional
meeting;....................... 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
Harness racing associations
or corporations:
in-special betting
district;...................... 12.00 N/A [3.50]
out-district, during a
regional meeting;.............. 3.00 10.00 [2.50]
out-district, no regional
meeting;....................... 6.00 6.00 [3.50]
Other harness racing associations
or corporations:
in-region;..................... 12.00 N/A [3.50]
out-region, during a
regional meeting;.............. 3.00 10.00 [2.50]
out-region, no regional
meeting;....................... 6.00 6.00 [3.50]
d. For the portion of the Western region included within a thorough-
bred special betting district and not within a harness special betting
district, when no thoroughbred race meeting is conducted by a racing
corporation located within such thoroughbred special district, the
distribution of the retained commission to "regional tracks" by such
regional corporation derived from wagers placed within such special
betting district shall be divided as follows:
(i) when a harness corporation located in such district is conducting
a meet the full amount to such harness corporation; and when a harness
corporation in the region but not located in such district is conducting
a meet, forty percent to the thoroughbred racing corporation and sixty
percent to the harness corporation conducting a meet;
(ii) when no racing is being conducted, forty [per centum] PERCENT to
the thoroughbred racing corporation and the balance divided equally
between the harness racing corporations located in such region; and
(iii) when no racing is being conducted and no more than one harness
racing association is licensed during the calendar year to conduct a
race meeting, fifty [per centum] PERCENT to the thoroughbred racing
corporation and fifty [per centum] PERCENT to the harness racing associ-
ation located in such region.
e. For the portions of the Capital District, Catskill, Central and
Western regions included within a harness racing special betting
district, except those portions described in paragraph e of this subdi-
vision, the harness track located in such special district shall be the
"regional track" for the purposes of the distributions made pursuant to
paragraphs a and b of this subdivision.
f. For the portions of the Catskill, Central and Western regions
included in both a thoroughbred special betting district and a harness
special betting district, the distribution of the retained commission to
"regional tracks" by such regional corporations derived from wagers
placed within such portions of such regions shall be divided as follows:
(i) when a harness corporation located in the harness special betting
district is conducting a meet and no thoroughbred race meeting is being
conducted by a racing corporation located in the thoroughbred special
betting district, the full amount to such harness association;
S. 9009--B 70
(ii) when a thoroughbred corporation located in the thoroughbred
special betting district is conducting a meet and no harness race meet-
ing is being conducted by a harness association located in the harness
special betting district, the full amount to such thoroughbred corpo-
ration;
(iii) when no racing is being conducted the amount to be divided even-
ly between the thoroughbred track located in such thoroughbred special
betting district and the harness track located in such harness special
betting district.
g. With respect to the amounts payable to track operators from the
retained commission on pools resulting from thoroughbred or harness
races outside this state, the regional corporation shall first pay any
contractual obligation owed to the out-of-state track operator, or to
another state or entity thereof, as the case may be. The balance of such
amounts shall be divided as follows:
(i) for the betting region composed of the New York city, Suffolk and
Nassau regions and the portion of the Catskill region outside a special
betting district: when both harness and thoroughbred meets are in
progress in such betting region, the balance to the association or
corporation holding the same type of meet as the out-of-state race; when
only a harness meet is in progress in such betting region, the balance
to the harness track operator; when only a thoroughbred meet is in
progress in such betting region, the balance to the thoroughbred track
operator; when no meet is in progress, fifty [per centum] PERCENT of the
balance to the franchised corporation and the remainder divided among
harness racing corporations or associations within such betting region;
(ii) for the Capital District region and the portion of the Western
region outside a special betting district: when a harness meet is in
progress in such region and a thoroughbred meet is in progress outside a
special betting district, the balance to whichever operator is conduct-
ing the same type of meet as the out-of-state race; when no harness meet
is in progress, the balance to the racing association outside a special
betting district; and when no meet is in progress within such region and
no thoroughbred meet is in progress outside a special betting district,
fifty [per centum] PERCENT of the balance to the racing association
outside a special betting district and the remainder to the licensed
harness racing corporations or associations within such region;
(iii) for the portion of the Western region within a thoroughbred
special betting district but not within a harness special betting
district: when a harness meet and a thoroughbred meet are in progress
within such region and the district, the balance to the association or
corporation conducting the same type of meet as the out-of-state or
out-of-region race; when a harness meet is in progress in such region
but no thoroughbred meet is in progress in the special betting district,
the balance to the harness track operator within such region; when only
a thoroughbred meet is in progress in such betting region, the balance
to the thoroughbred track operator; and when no meet is in progress
within such region the balance is divided, forty [per centum] PERCENT to
the thoroughbred racing corporation within the district and the remain-
der divided between the harness racing associations or corporations
within the region provided, however, that if no more than one harness
racing association or corporation is licensed to conduct a race meeting,
fifty [per centum] PERCENT to the thoroughbred racing corporation within
the district and fifty [per centum] PERCENT to the licensed harness
racing association within the region;
S. 9009--B 71
(iv) for the portions of the Capital District, Catskill, Central and
Western regions included in a harness special betting district: when a
harness meeting is in progress in such harness special betting district
and a thoroughbred meeting is in progress outside the thoroughbred
special betting district, the balance to the association or corporation
holding the same kind of race; when no harness meet is in progress, the
balance to the racing corporation holding a thoroughbred race meeting
outside the thoroughbred special betting district; when a harness meet-
ing is in progress in the harness special betting district and no
thoroughbred meeting is in progress outside the thoroughbred special
betting district, the balance to the harness track operating in such
harness special betting district; when no harness meet is being held
within such harness special betting district and no thoroughbred meet is
being held outside the thoroughbred special betting district, fifty [per
centum] PERCENT of such amount to the harness racing corporation in such
harness special betting district and fifty [per centum] PERCENT to the
thoroughbred track operator outside the thoroughbred special betting
district;
(v) for the portions of the Catskill and Western regions included in
both a thoroughbred special betting district and a harness special
betting district: when a harness meet and a thoroughbred meet are in
progress within both such districts the balance to the association or
corporation conducting the same type of meet as the out-of-state race;
when a harness meet is in progress but no thoroughbred meet the balance
to the harness track operator within such district; when a thoroughbred
meet is in progress but no harness meet the balance to the thoroughbred
track operator in the district; and when no meet is in progress the
balance to be divided evenly between the harness track operator in the
harness special betting district and the thoroughbred operator located
within the thoroughbred special betting district;
(vi) notwithstanding any contrary provision contained in this section,
the portion of retained commissions from off-track pools distributable
to the track holding the race shall be for regular and multiple bets:
five and three-quarters [per centum] PERCENT and for exotic bets: seven
and three-quarters [per centum] PERCENT for the three races commonly
referred to as the Triple Crown consisting of the Kentucky Derby, the
Preakness and the Belmont Stakes, run respectively at Churchill Downs,
Kentucky, at Pimlico, Maryland and at Belmont Park, New York; addi-
tionally the same commissions shall apply to the series of races known
as the Breeders' Cup and the portion distributable from retained commis-
sions shall be paid to the Breeders' Cup, ltd. irrespective of whether
the races are held at a track within or without the state; provided,
however, that as a condition precedent to the obligation of a regional
corporation to make the foregoing distributions as required in this
subparagraph with respect to wagers on the Belmont Stakes, such regional
corporation shall have accepted wagers on at least one or both of the
immediately preceding Kentucky Derby and Preakness races; and provided
further that the distributable portion of such retained commissions with
respect to the Belmont Stakes shall be deemed to include the additional
amounts payable pursuant to the provisions of paragraph b of subdivision
three of this section; and provided further, notwithstanding the forego-
ing provisions of this subparagraph, that of the retained commissions
resulting from off-track wagers placed in a special betting district on
the Belmont Stakes, the track holding the race shall receive one per
centum from regular and multiple bets and two [per centum] PERCENT from
exotic bets, and the thoroughbred track conducting racing within such
S. 9009--B 72
district shall receive four and three-quarters [per centum] PERCENT from
regular and multiple bets, and five and three-quarters [per centum]
PERCENT from exotic bets.
5. a. One percent of daily pools derived from bets on harness races
shall be paid to the agriculture and New York state breeding and devel-
opment fund except that for super exotic betting pools such amount shall
be three percent of such bets.
b. An amount equal to one-half of one percent of total daily off-track
pari-mutuel pools resulting from regular, multiple and exotic bets and
three percent of super exotic bets on thoroughbred or steeplechase races
shall be paid to the New York state thoroughbred breeding and develop-
ment fund.
c. From the total breaks retained by a regional corporation, an amount
equal to ten percent of the breaks derived from bets on OUT-OF-STATE
quarter horse races shall be paid to the New York state quarter horse
breeding and development fund.
7. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one [per centum] PERCENT of multiple pools derived from wagers
on races conducted by a thoroughbred racing corporation, licensed by the
board, other than a franchised corporation, shall be paid to such
thoroughbred racing corporation and held by such corporation for its own
use and purposes, except that an amount equal to one-half [per centum]
PERCENT shall be used exclusively for the purpose of increasing purses,
including stakes, premiums and prizes, awarded to horses in races
conducted by such corporation. Any portion of said amount not so used
during any year shall be used during the following year, failing which
it shall be returned to the regional corporation on or before April
first in the year following the year in which it is not so used to be
distributed to the participating local governments.
8. From the nineteen [per centum] PERCENT of the total deposits in
pools resulting from multiple bets on thoroughbred races outside this
state, two [per centum] PERCENT shall be paid to a franchised corpo-
ration to be used exclusively for the purpose of increasing purses,
including stakes, premiums and prizes. Any portion of said amount not so
used during any year shall be used during the following year, failing
which it shall be returned to the regional corporation on or before
April first in the year following the year in which it is not so used to
be distributed to the participating local governments. Notwithstanding
the provisions of section fifteen of chapter three hundred sixty-three
of the laws of nineteen hundred eighty-four, the provisions of this
subdivision shall not expire.
§ 7. Subdivisions 1, 3, 3-a and 6 of section 532 of the racing, pari-
mutuel wagering and breeding law, subdivisions 1 and 3 as amended by
chapter 243 of the laws of 2020, subparagraph (vi) of paragraph b of
subdivision 3 as amended by chapter 526 of the laws of 2022, and subdi-
visions 3-a and 6 as added by chapter 346 of the laws of 1990, are
amended to read as follows:
1. Notwithstanding any other provision of law, each regional off-track
betting corporation, or off-track betting operator, including the New
York city off-track betting corporation, conducting off-track betting
shall impose a surcharge of five percent on the portion of pari-mutuel
wagering pools distributable to persons having placed bets at off-track
betting facilities located within such region. The revenues derived from
such surcharge[, plus the breaks,] shall be held separate and apart from
any amounts otherwise authorized to be retained from pari-mutuel pools.
S. 9009--B 73
Such surcharge is hereby levied subject to the conditions set forth in
this subdivision and article ten of this chapter.
3. The revenues received from any surcharge imposed by subdivision one
of this section[, plus the breaks,] shall be distributed monthly, as
follows:
a. fifty percent to such city, or to the counties and cities entitled
to receive revenues from the regional corporation pursuant to section
five hundred sixteen of this chapter and in the same proportion as
provided therein, or to an off-track betting operator; and
b. the balance as follows:
(i) where the track conducting the race on which the bet was placed is
located within a city with a population in excess of one hundred thou-
sand, to such city;
(ii) where the track conducting the race on which the bet was placed
is not located within a city with a population in excess of one hundred
thousand, to the county in which such track is located;
(iii) where the track conducting the race on which the bet was placed
is located partially within a city with a population in excess of one
million and partially within a county, twenty-five percent of such
balance to the city and the remainder to the county;
(iv) where the track conducting the race on which the bet was placed
is located outside the state, in the same manner as described in para-
graph a of this subdivision;
(v) where the track conducting the race is located in a thoroughbred
special betting district and is simulcasting pursuant to section one
thousand eight of this chapter outside such special betting district,
ninety percent to the off-track betting operator and ten percent to the
county in which such track is located; and
(vi) for the period of September first, two thousand twenty-two until
August thirty-first, two thousand twenty-seven and where the track
conducting the race on which the bet was placed is a harness track
located in the county of Erie, to such track.
3-a. Such five [per centum] PERCENT surcharge herein provided is here-
by increased by a supplemental one [per centum] PERCENT surcharge on the
portion of pari-mutuel wagering pools of multiple, exotic and super
exotic bets distributable to persons having placed bets at off-track
betting facilities to be distributed in accordance with the provisions
of section five hundred nine-a or six hundred nine-a of this chapter,
whichever may be applicable to the corporation with which such bets
originated.
6. Notwithstanding any provision herein or in section one thousand
nine of this chapter to the contrary where the track conducting the race
is a thoroughbred track located in the Catskill region conducting a
mixed meeting such surcharge shall be collected on all wagers placed in
branch offices or simulcast theaters of a regional off-track betting
corporation. The revenues received from any such surcharge imposed in
accordance with this section [plus the breaks] shall be distributed
monthly as follows:
a. one-fifth to the county in which such track is located;
b. three-fifths to a regional track located in the region in which the
bet is placed in accordance with provisions of section five hundred
twenty-seven of this article, one-half thereof to be used for purses at
such regional track, except that in any region containing two or more
regional tracks such tracks shall be entitled to an equal share;
c. one-fifth to be retained by the off-track betting operator with
whom such bet originated as operating revenues.
S. 9009--B 74
§ 8. Paragraph c of subdivision 1 of section 904 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 243 of the laws
of 2020, is amended to read as follows:
c. Every association and corporation shall distribute all sums depos-
ited in any pari-mutuel pool to the holders of winning tickets therein,
providing such tickets be presented for payment before April first of
the year following the year of their purchase, less an amount that it
shall retain at the same rate established by the sending track [plus the
breaks].
§ 9. Paragraph c of subdivision 2 and subdivision 4 of section 905 of
the racing, pari-mutuel wagering and breeding law, paragraph c of subdi-
vision 2 as amended by chapter 243 of the laws of 2020, subdivision 4 as
amended by section 15 of part F3 of chapter 62 of the laws of 2003 and
such section as renumbered by chapter 18 of the laws of 2008, are
amended to read as follows:
c. If different retention or breakage rates than those prevailing at
the site of the New York interface are prescribed by the laws governing
such out-of-state or foreign betting operator, and the commission is
satisfied that it would not be contrary to the public interest to accept
such wagers for combination with New York wagers, calculations of the
current odds and final pay-off prices shall be made as follows:
(i) All New York state and out-of-state and foreign wagers of the same
type shall be combined into single pools for calculation.
(ii) As many tentative payout prices as there are different retention
and breakage rates applicable (including the prevailing New York
RETENTION rate) shall be calculated on the basis of returning the appro-
priate rate of return, less breaks after imposition of each such rate of
retention and breaks.
(iii) To each such out-of-state or foreign operator shall be allocated
an amount sufficient for it to pay the appropriate pay-off to holders of
winning wagers placed with it together with the applicable retention
amount on its total wagers.
(iv) To each New York operator shall be allocated an amount sufficient
for it to pay the appropriate pay-off to holders of winning wagers
placed with it together with the applicable New York retention amount on
its total wagers.
(v) The total amount of the combined pool less the combined total of
all allocations as determined in subparagraphs (iii) and (iv) of this
paragraph shall be credited to a special breakage account. The amount in
such account giving appropriate weight to rates established for breakage
shall be allocated as breaks among all operators in the combined pool in
accordance with the rules and regulations of the commission. Should a
minus pool eventuate in which the total combined pool is insufficient to
reimburse each operator for the allocation due to it then the allocation
due to each such operator shall be reduced as may be appropriate and
such operator shall be responsible for satisfying its liability from its
own operating capital.
4. In those instances in which the retention rates of the out-of-state
track are different from the retention rates authorized in this section,
distribution to each of the entities entitled to receive payment under
section five hundred twenty-seven or article ten of this chapter after
payment of state taxes and regulatory fees shall be adjusted proportion-
ately in an appropriate manner to account for higher or lower retention
rates. For purposes of determining payment on out-of-state wagers the
retention rate shall be the amount sufficient to pay holders of winning
S. 9009--B 75
wagers plus any payments required to be made to the out-of-state track
which exceeds two [per centum] PERCENT of handle.
§ 10. Paragraph a of subdivision 3 of section 1007 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
a. Of the sums retained by the receiving track from simulcast pools
the pari-mutuel tax shall be levied at the [lower of the pari-mutuel
tax] rate [in effect on December thirty-first, nineteen hundred ninety-
three at the receiving track, plus ten percent of the breaks or the
following rates: two percent of simulcast pools generated by regular
wagers, two and one-half percent of simulcast pools generated by multi-
ple wagers, and seven percent of simulcast pools generated by exotic and
super exotic wagers, plus ten percent of the breaks] SET FORTH IN SUBDI-
VISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
§ 11. Paragraph a of subdivision 4 of section 1009 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
a. Of the sums retained by the operator as provided in this subdivi-
sion, the pari-mutuel tax shall be levied at the [following rates plus
twenty percent of the breaks: from wagers on thoroughbred races, eight-
tenths of one percent of pools generated from regular wagers; one and
three-tenths percent of pools generated from multiple wagers; two and
eight-tenths percent of pools generated from exotic wagers; and three
and one-half percent of pools generated from super exotic wagers; and
from wagers on harness races, one-half of one percent of pools generated
from regular wagers; one percent of pools generated from multiple
wagers; two and one-half percent of pools generated from exotic wagers
and three percent of pools generated from super exotic wagers] RATE SET
FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAP-
TER.
§ 12. Paragraph i of subdivision 1 of section 1014 of the racing,
pari-mutuel wagering and breeding law, as amended by chapter 243 of the
laws of 2020, is amended to read as follows:
i. Any facility authorized to accept wagers on out-of-state tracks
shall distribute all sums deposited in any pari-mutuel pool to the hold-
ers of winning tickets therein, provided such tickets are presented for
payment prior to April first of the year following the year of their
purchase less eighteen percent of the total deposits in pools resulting
from regular bets, less twenty-one percent of the total deposits in
pools resulting from multiple bets, less twenty-six percent of the total
deposits in pools resulting from exotic bets, less thirty-six percent of
the total deposits in pools resulting from super exotic bets [plus the
breaks as defined in section two hundred thirty-six of this chapter]
except that the retention rates and breaks shall be as prescribed by
another state or country if such wagers are combined with those in the
other state or country pursuant to section nine hundred five of this
chapter.
(1) Of the sum so retained, the applicable tax rate shall be [one and
one-half percent of all such wagers plus fifty percent of the breaks;
provided, however, fifty percent of the breaks accruing from off-track
betting corporations licensed in accordance with section one thousand
eight of this article and from simulcast theaters licensed in accordance
with section one thousand nine of this article, shall be paid to the
agriculture and New York state horse breeding and development fund and
to the thoroughbred breeding and development fund, the total of such
payments to be apportioned fifty percent to each such fund] RATE SET
S. 9009--B 76
FORTH IN SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAP-
TER.
(2) Of the sums so retained, one-half of one percent of all wagers
shall be paid to the New York state thoroughbred breeding and develop-
ment fund, except that of the sums so retained on such wagers at
licensed harness tracks, one-half of one percent shall be paid to the
agricultural and New York State horse breeding and development fund.
(3) Of the sum so retained, two percent of all wagers shall be paid to
a franchised corporation to be used exclusively for the purpose of
increasing purses, including stakes, premiums and prizes, provided
further that such amount shall not exceed the amount paid to such non-
profit racing association in nineteen hundred ninety-three from wagers
placed on out-of-state tracks on a day when no racing was being
conducted by the non-profit racing association and a racing program was
being conducted by a thoroughbred racing corporation located in the
state. The excess, if any, shall be paid to a thoroughbred racing corpo-
ration located in the state until August thirty-first, nineteen hundred
ninety-five and on and after July nineteen, nineteen hundred ninety-six
to be used exclusively for the purpose of increasing purses, including
stakes, premiums and prizes.
(4) Any thoroughbred racing corporation or harness racing association
or corporation or off-track betting corporation authorized pursuant to
this section shall pay to the commission as a regulatory fee, which fee
is hereby levied, six-tenths of one percent of all wagering pools.
§ 13. The opening paragraph of subdivision 3 of section 1015 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 243
of the laws of 2020, is amended to read as follows:
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
any tickets therein provided such tickets are presented for payment
prior to April first of the year following the year of their purchase
less nineteen percent of total deposits in pools resulting from regular
bets, less twenty-one percent of total deposits of pools resulting from
multiple bets, less twenty-seven percent of total deposits of pools
resulting from exotic bets, less thirty-six percent of total deposits of
pools resulting from super exotic bets [plus the breaks as defined in
section three hundred eighteen of this chapter] except that the
retention rates and breaks shall be as prescribed by another state or
country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
§ 14. Paragraph a, the opening paragraph of paragraph b, subparagraph
1 of paragraph b, clauses (A) and (B) of subparagraph 3 of paragraph b,
clauses (A) and (B) of subparagraph 4 of paragraph b, clauses (A), (B)
and (D) of subparagraph 5 of paragraph b, and clauses (A) and (B) of
subparagraph 6 of paragraph b of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, paragraph a, clauses (A)
and (B) of subparagraph 3 of paragraph b, clauses (A) and (B) of subpar-
agraph 4 of paragraph b, clauses (A), (B) and (D) of subparagraph 5 of
paragraph b, clauses (A) and (B) of subparagraph 6 of paragraph b as
amended by chapter 18 of the laws of 2008, the opening paragraph and
subparagraph 1 of paragraph b as amended by chapter 243 of the laws of
2020, are amended to read as follows:
a. Each off-track betting branch office accepting wagers on an out-of-
state track shall accept wagers on races run at all in-state thorough-
bred tracks [which] THAT are conducting racing programs and every simul-
casting facility licensed in accordance with sections one thousand eight
S. 9009--B 77
and one thousand nine of this article [which] THAT is accepting wagers
and displaying the simulcast signal from an out-of-state track shall
similarly accept wagers and display the signal from all in-state
thoroughbred tracks conducting racing programs.
Any facility authorized to accept wagers on out-of-state tracks shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
prior to April first of the year following the year of their purchase
less eighteen percent of the total deposits in pools resulting from
regular bets, less twenty-one percent of the total deposits in pools
resulting from multiple bets, less twenty-six percent of the total
deposits in pools resulting from exotic bets, and less twenty-seven
percent of the total deposits in pools resulting from super exotic bets,
[plus the breaks as defined in section two hundred thirty-six of this
chapter] MAY BE REQUIRED BY ANOTHER JURISDICTION except that the
retention rates and breaks shall be as prescribed by another state or
country if such wagers are combined with those in the other state or
country pursuant to section nine hundred five of this chapter.
(1) Of the sums so retained, the applicable tax rates shall be as
[governed by clauses (A) and (B) of subparagraphs three, four, five and
six of this paragraph plus fifty percent of the breaks; provided, howev-
er, fifty percent of the breaks accruing from off-track betting corpo-
rations licensed in accordance with section one thousand eight of this
article and from simulcast theaters licensed in accordance with section
one thousand nine of this article, shall be paid to the agriculture and
New York State horse breeding and development fund and to the thorough-
bred breeding and development fund, the total of such payments to be
apportioned fifty percent to each such fund] AS SET FORTH IN SUBDIVISION
ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.50 1.50 1.50 1.50]
Non-franchised
Thoroughbred Racing
corporation 0.50 0.50 0.50 0.50
Non-franchised
Thoroughbred Racing
corporation payments to purses 1.50 2.00 1.50 2.00
Franchised corporation 0.50 0.50 0.50 0.50
Franchised corporation
payments to purses 2.00 2.00 2.50 4.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
S. 9009--B 78
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred Racing
corporation 0.50 0.50 0.50 0.00
Non-franchised
Thoroughbred Racing
corporation payments to purses 0.50 0.50 0.50 0.50
Franchised corporation 2.00 1.50 1.50 2.00
Franchised corporation
payments to purses 2.00 3.00 3.00 5.00
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred Racing 2.00 2.00 2.00 2.50
corporation payments to purses
Franchised corporation 1.00 1.00 1.00 1.00
Franchised corporation
payments to purses 2.00 2.00 2.50 4.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 0.50 0.50 0.50 0.50]
Non-franchised
Thoroughbred racing 0.50 0.25 0.50 0.50
corporation
Non-franchised
Thoroughbred racing 0.50 0.25 0.50 0.50
corporation payments to purses
Franchised corporation 2.25 2.25 2.00 2.50
Franchised corporation
payments to purses 2.25 3.25 3.00 4.50
S. 9009--B 79
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.50 1.50 1.50 1.50]
Non-franchised
Thoroughbred racing 0.25 0.25 0.25 0.50
corporation
Non-franchised
Thoroughbred racing 0.75 1.00 0.75 1.00
corporation payments to purses
Franchised corporation 0.25 0.25 0.25 0.25
Franchised corporation
payments to purses 1.00 1.00 2.25 2.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
Non-franchised
Thoroughbred racing
corporation 0.25 0.25 0.25 0.25
Non-franchised
Thoroughbred racing
corporation payments to purses 0.25 0.25 0.25 0.25
Franchised corporation 1.00 0.75 0.75 1.00
Franchised corporation
payments to purses 1.00 1.50 1.50 2.50
(D) For wagers placed at a thoroughbred racing corporation the state
tax shall be the amounts specified in [clauses (A) and (B) of this
subparagraph] SUBDIVISION ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS
CHAPTER and retention thereafter shall be identical to sums retained for
each type of on-track wager.
(A) Of the sums so retained on days when a franchised corporation is
not conducting a race meeting within the state and a thoroughbred racing
corporation is conducting a race meeting
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 1.00 1.00 1.00 1.00]
S. 9009--B 80
Non-franchised
Thoroughbred Racing
corporation payments to purses 1.00 1.00 1.00 1.25
Franchised corporation 0.50 0.50 0.50 0.50
Franchised corporation
payments to purses 1.00 1.00 1.25 2.00
(B) Of the sums so retained on days when a franchised corporation is
conducting a race meeting within the state
Super-
Regular Multiple Exotic exotic
bets bets bets bets
[State Tax 0.50 0.50 0.50 0.50]
Non-franchised
Thoroughbred Racing
corporation 0.25 0.25 0.25 0.25
Non-franchised
Thoroughbred Racing
corporation payments to purses 0.25 0.25 0.25 0.25
Franchised corporation 1.25 1.25 1.00 1.25
Franchised corporation
payments to purses 1.25 2.00 1.50 2.25
§ 15. Subdivision 1 of section 1018 of the racing, pari-mutuel wager-
ing and breeding law, as amended by chapter 18 of the laws of 2008, is
amended to read as follows:
1. Of the sums so retained, the applicable tax rates shall be as set
forth in [this paragraph plus fifty percent of the breaks; provided,
however, fifty percent of the breaks accruing from an off-track betting
corporation licensed in accordance with section one thousand eight of
this article and from simulcast theatres licensed in accordance with
section one thousand nine of this article, shall be paid to the agricul-
ture and New York state horse breeding and development fund] SUBDIVISION
ONE OF SECTION ONE HUNDRED THIRTY-SIX OF THIS CHAPTER.
§ 16. This act shall take effect immediately.
PART X
Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part HH of chapter
59 of the laws of 2025, is amended to read as follows:
2. a. Notwithstanding any other provision of law or regulation to the
contrary, from April nineteenth, two thousand twenty-one to March thir-
ty-first, two thousand twenty-two, twenty-three percent of the funds,
not to exceed two and one-half million dollars, in the Catskill off-
track betting corporation's capital acquisition fund and twenty-three
percent of the funds, not to exceed four hundred forty thousand dollars,
in the Capital off-track betting corporation's capital acquisition fund
established pursuant to this section shall also be available to such
S. 9009--B 81
off-track betting corporation for the purposes of statutory obligations,
payroll, and expenditures necessary to accept authorized wagers.
b. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-two to March thirty-
first, two thousand twenty-three, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and twenty-three percent of the funds, not to exceed four
hundred forty thousand dollars, in the Capital off-track betting corpo-
ration's capital acquisition fund established pursuant to this section,
shall be available to such off-track betting corporations for the
purposes of statutory obligations, payroll, and expenditures necessary
to accept authorized wagers.
c. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-three to March thirty-
first, two thousand twenty-four, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
d. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-four to March thirty-
first, two thousand twenty-five, twenty-three percent of the funds, not
to exceed two and one-half million dollars, in the Catskill off-track
betting corporation's capital acquisition fund established pursuant to
this section, and one million dollars in the Capital off-track betting
corporation's capital acquisition fund established pursuant to this
section, shall be available to such off-track betting corporation for
the purposes of expenditures necessary to accept authorized wagers; past
due statutory obligations to New York licensed or franchised racing
corporations or associations; past due contractual obligations due to
other racing associations or organizations for the costs of acquiring a
simulcast signal; past due statutory payment obligations due to the New
York state thoroughbred breeding and development fund corporation, agri-
culture and New York state horse breeding development fund, and the
Harry M. Zweig memorial fund for equine research; and past due obli-
gations due the state.
e. Notwithstanding any other provision of law or regulation to the
contrary, from April first, two thousand twenty-five to March thirty-
first, two thousand twenty-six, one million dollars in the Capital off-
track betting corporation's capital acquisition fund established pursu-
ant to this section shall be available to such off-track betting
corporation for the purposes of expenditures necessary to accept author-
ized wagers; past due statutory obligations to New York licensed or
franchised racing corporations or associations; past due contractual
obligations due to other racing associations or organizations for the
S. 9009--B 82
cost of acquiring a simulcast signal; past due statutory payment obli-
gations due to the New York state thoroughbred breeding and development
fund corporation, agriculture and New York state horse breeding develop-
ment fund, and the Harry M. Zweig memorial fund for equine research; and
past due obligations due the state.
f. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-SIX TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-SEVEN, ONE MILLION DOLLARS IN THE CAPITAL
OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED
PURSUANT TO THIS SECTION, SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING
CORPORATION FOR THE PURPOSES OF EXPENDITURES NECESSARY TO ACCEPT AUTHOR-
IZED WAGERS; PAST DUE STATUTORY OBLIGATIONS TO NEW YORK LICENSED OR
FRANCHISED RACING CORPORATIONS OR ASSOCIATIONS; PAST DUE CONTRACTUAL
OBLIGATIONS DUE TO OTHER RACING ASSOCIATIONS OR ORGANIZATIONS FOR THE
COST OF ACQUIRING A SIMULCAST SIGNAL; PAST DUE STATUTORY PAYMENT OBLI-
GATIONS DUE TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT
FUND CORPORATION, AGRICULTURE AND NEW YORK STATE HORSE BREEDING DEVELOP-
MENT FUND, AND THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH; AND
PAST DUE OBLIGATIONS DUE THE STATE.
F-1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE
CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-SIX TO MARCH THIRTY-
FIRST, TWO THOUSAND TWENTY-SEVEN, FORTY-FIVE PERCENT OF THE FUNDS, NOT
TO EXCEED TWO MILLION SEVEN HUNDRED THOUSAND DOLLARS, IN THE CATSKILL
OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED
PURSUANT TO THIS SECTION, SHALL BE AVAILABLE TO SUCH OFF-TRACK BETTING
CORPORATION FOR THE PURPOSES OF EXPENDITURES NECESSARY TO PAY OFF ANY
OUTSTANDING DEBTS AND OBLIGATIONS; PAST DUE STATUTORY OBLIGATIONS TO NEW
YORK LICENSED OR FRANCHISED RACING CORPORATIONS OR ASSOCIATIONS; PAST
DUE CONTRACTUAL OBLIGATIONS DUE TO OTHER RACING ASSOCIATIONS OR ORGAN-
IZATIONS FOR THE COSTS OF ACQUIRING A SIMULCAST SIGNAL; PAST DUE STATU-
TORY PAYMENT OBLIGATIONS DUE TO THE NEW YORK STATE THOROUGHBRED BREEDING
AND DEVELOPMENT FUND CORPORATION, AGRICULTURE AND NEW YORK STATE HORSE
BREEDING DEVELOPMENT FUND, AND THE HARRY M. ZWEIG MEMORIAL FUND FOR
EQUINE RESEARCH; AND PAST DUE OBLIGATIONS DUE THE STATE.
G. Prior to a corporation being able to utilize the funds authorized
by paragraph c, d [or], e OR F of this subdivision, the corporation must
attest that the surcharge monies from section five hundred thirty-two of
this chapter are being held separate and apart from any amounts other-
wise authorized to be retained from pari-mutuel pools and all surcharge
monies have been and will continue to be paid to the localities as
prescribed in law. Once this condition is satisfied, the corporation
must submit an expenditure plan to the gaming commission for review.
Such plan shall include the corporation's outstanding liabilities,
projected revenue for the upcoming year, a detailed explanation of how
the funds will be used, and any other information necessary to detail
such plan as determined by the commission. Upon review, the commission
shall make a determination as to whether the requirements of this para-
graph have been satisfied and notify the corporation of expenditure plan
approval. In the event the commission determines the requirements of
this paragraph have not been satisfied, the commission shall notify the
corporation of all deficiencies necessary for approval. As a condition
of such expenditure plan approval, the corporation shall provide a
report to the commission no later than the last day of the calendar year
for which the funds are requested, which shall include an accounting of
the use of such funds. At such time, the commission may cause an inde-
pendent audit to be conducted of the corporation's books to ensure that
S. 9009--B 83
all moneys were spent as indicated in such approved plan. The audit
shall be paid for from money in the fund established by this section. If
the audit determines that a corporation used the money authorized under
this section for a purpose other than one listed in their expenditure
plan, then the corporation shall reimburse the capital acquisition fund
for the unauthorized amount.
G-1. PRIOR TO A CORPORATION BEING ABLE TO UTILIZE THE FUNDS AUTHORIZED
BY PARAGRAPH F-1 OF THIS SUBDIVISION, THE CORPORATION MUST SUBMIT AN
EXPENDITURE PLAN TO THE GAMING COMMISSION FOR REVIEW. SUCH PLAN SHALL
INCLUDE THE CORPORATION'S OUTSTANDING LIABILITIES, PROJECTED REVENUE FOR
THE UPCOMING YEAR, A DETAILED EXPLANATION OF HOW THE FUNDS WILL BE USED,
AND ANY OTHER INFORMATION DETERMINED NECESSARY BY THE COMMISSION. UPON
REVIEW, THE COMMISSION WILL MAKE A DETERMINATION AS TO WHETHER ACCESS TO
THE FUNDS IS NEEDED AND WARRANTED.
§ 2. This act shall take effect immediately.
PART Y
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with [section] SECTIONS one thousand fifteen, one
thousand sixteen and one thousand seventeen of this article; provided
further that the contract provisions or other simulcast arrangements for
such simulcast facility shall be no less favorable than those in effect
on January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
S. 9009--B 84
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended [until
June thirtieth, two thousand twenty-six]; provided, however, that any
party to such agreement may elect to terminate such agreement upon
conveying written notice to all other parties of such agreement at least
forty-five days prior to the effective date of the termination, via
registered mail. Any party to an agreement receiving such notice of an
intent to terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between the
parties as will permit continuation of an in-home experiment [until June
thirtieth, two thousand twenty-six]; and (iv) no in-home simulcasting in
the thoroughbred special betting district shall occur without the
approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of subpart B of part FF of chapter 59 of the laws of 2025, is
amended to read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight [and continuing through
June thirtieth, two thousand twenty-six], the amount used exclusively
for purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to the total commissions that
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack [until June
thirtieth, two thousand twenty-six and on any day regardless of whether
or not a franchised corporation is conducting a race meeting in Saratoga
county at Saratoga thoroughbred racetrack after June thirtieth, two
thousand twenty-six]. On any day on which a franchised corporation has
not scheduled a racing program but a thoroughbred racing corporation
located within the state is conducting racing, each off-track betting
corporation branch office and each simulcasting facility licensed in
accordance with section one thousand seven (that has entered into a
written agreement with such facility's representative horsemen's organ-
ization, as approved by the commission), one thousand eight, or one
thousand nine of this article shall be authorized to accept wagers and
S. 9009--B 85
display the live simulcast signal from thoroughbred tracks located in
another state or foreign country subject to the following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of subpart B of part FF of
chapter 59 of the laws of 2025, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
[during] BEGINNING WITH the period COMMENCING July first, nineteen
hundred ninety-four [through June thirtieth, two thousand twenty-six].
This section shall supersede all inconsistent provisions of this chap-
ter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack [until
June thirtieth, two thousand twenty-six]. Every off-track betting corpo-
ration branch office and every simulcasting facility licensed in accord-
ance with section one thousand seven that have entered into a written
agreement with such facility's representative horsemen's organization as
approved by the commission, one thousand eight or one thousand nine of
this article shall be authorized to accept wagers and display the live
full-card simulcast signal of thoroughbred tracks (which may include
quarter horse or mixed meetings provided that all such wagering on such
races shall be construed to be thoroughbred races) located in another
state or foreign country, subject to the following provisions; provided,
however, no such written agreement shall be required of a franchised
corporation licensed in accordance with section one thousand seven of
this article:
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of subpart B of part
FF of chapter 59 of the laws of 2025, is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
COMMENCING July twenty-fifth, two thousand one [through September
eighth, two thousand twenty-five], when a franchised corporation is
conducting a race meeting within the state at Saratoga Race Course,
every off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
has entered into a written agreement with such facility's representative
horsemen's organization as approved by the commission), one thousand
eight or one thousand nine of this article shall be authorized to accept
wagers and display the live simulcast signal from thoroughbred tracks
located in another state, provided that such facility shall accept
wagers on races run at all in-state thoroughbred tracks which are
conducting racing programs subject to the following provisions;
provided, however, no such written agreement shall be required of a
franchised corporation licensed in accordance with section one thousand
seven of this article.
§ 7. Section 54 of 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, as amended by section
8 of subpart B of part FF of chapter 59 of the laws of 2025, is amended
to read as follows:
S. 9009--B 86
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect [on] January
1, 1991[, and section 1013 of the racing, pari-mutuel wagering and
breeding law, as added by section thirty-eight of this act, shall expire
and be deemed repealed on July 1, 2026]; and section eighteen of this
act shall take effect [on] July 1, 2008 and sections fifty-one and
fifty-two of this act shall take effect as of the same date as chapter
772 of the laws of 1989 took effect.
§ 8. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of
subpart B of part FF of chapter 59 of the laws of 2025, is amended to
read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets are presented for payment
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent of the total deposits in pools resulting from on-track super
exotic bets[, plus the breaks]. The retention rate to be established is
subject to the prior approval of the commission. Such rate may not be
changed more than once per calendar quarter to be effective on the first
day of the calendar quarter. "Exotic bets" and "multiple bets" shall
have the meanings set forth in section five hundred nineteen of this
chapter. "Super exotic bets" shall have the meaning set forth in section
three hundred one of this chapter. For purposes of this section, a "pick
six bet" shall mean a single bet or wager on the outcomes of six races.
[The breaks are hereby defined as the odd cents over any multiple of
five for payoffs greater than one dollar five cents but less than five
dollars, over any multiple of ten for payoffs greater than five dollars
but less than twenty-five dollars, over any multiple of twenty-five for
payoffs greater than twenty-five dollars but less than two hundred fifty
dollars, or over any multiple of fifty for payoffs over two hundred
fifty dollars.] Out of the amount so retained there shall be paid by
such franchised corporation to the commissioner of taxation and finance,
as a reasonable tax by the state for the privilege of conducting pari-
mutuel betting on the races run at the race meetings held by such fran-
chised corporation, the following percentages of the total pool for
regular and multiple bets five percent of regular bets and four percent
of multiple bets plus twenty percent of the breaks; for exotic wagers
seven and one-half percent plus twenty percent of the breaks, and for
super exotic bets seven and one-half percent plus fifty percent of the
breaks.
For the period April first, two thousand one through December thirty-
first, two thousand twenty-six, such tax on all wagers shall be one and
six-tenths percent, plus, in each such period, twenty percent of the
breaks. Payment to the New York state thoroughbred breeding and develop-
ment fund by such franchised corporation shall be one-half of one
percent of total daily on-track pari-mutuel pools resulting from regu-
lar, multiple and exotic bets and three percent of super exotic bets and
for the period COMMENCING April first, two thousand one [through Decem-
S. 9009--B 87
ber thirty-first, two thousand twenty-six], such payment shall be
seven-tenths of one percent of regular, multiple and exotic pools.
§ 9. This act shall take effect immediately.
PART Z
Section 1. Subdivision 1 of section 220 of the racing, pari-mutuel
wagering and breeding law, as amended by section 2 of part NN of chapter
59 of the laws of 2025, is amended to read as follows:
1. For the purpose of maintaining a proper control over race meetings
conducted pursuant to sections two hundred five and two hundred six of
this article, the commission shall license owners, which term shall be
deemed to include part-owners and lessees, trainers, assistant trainers
and jockeys, jockey agents, stable employees, non-publicly appointed
members of the board of a franchised corporation, and such other persons
as the commission may by rule prescribe at running races and at steeple-
chases, provided, however, that no such license shall be required for
seasonal employees hired solely to work for no longer than six weeks
during the summer meet at Saratoga racetrack, and any such other times
as race dates historically assigned to Belmont Park are conducted at the
Saratoga racetrack in two thousand twenty-four [and], two thousand twen-
ty-five AND TWO THOUSAND TWENTY-SIX as approved in writing by the
commission. In the event that a proposed licensee is other than a
natural person, the commission shall require by regulation disclosure of
the names and addresses of all owners of an interest in such entity. The
commission may retain, employ or appoint such officers, employees and
agents, as it may deem necessary to receive, examine and make recommen-
dations, for the consideration of the commission, in respect of applica-
tions for such licenses; prescribe their duties in connection therewith,
and fix their compensation therefor within the limitations prescribed by
law. Each applicant for a license shall pay to the commission an annual
license fee as follows: owner's license, if a renewal, fifty dollars,
and if an original application, one hundred dollars; trainer's license,
thirty dollars; assistant trainer's license, thirty dollars; jockey's
license, fifty dollars; jockey agent's license, twenty dollars; and
stable employee's license, five dollars. Each applicant may apply for a
two-year or three-year license by payment to the commission of the
appropriate multiple of the annual fee. The commission may by rule fix
the license fees to be paid by other persons required to be licensed by
the rules of the commission, not to exceed thirty dollars per category.
The application for the license shall be in writing in such form as the
commission may prescribe, and contain such information as the commission
may require. The commission shall henceforth cause all applicants for
licenses to be photographed and fingerprinted and may issue identifica-
tion cards to licensees. Such fingerprints shall be submitted to the
division of criminal justice services for a state criminal history
record check, as defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted to the federal
bureau of investigation for a national criminal history record check. A
fee equal to the actual cost of issuance shall be charged for the
initial issuance of such identification cards. Each such license unless
revoked for cause shall be for the period of no more than one, two or
three years, determined by rule of the commission, expiring on the
applicant's birth date. Licenses of non-publicly appointed members of
the board of a franchised corporation shall be issued without fee and
remain in effect for the duration of their board service. Licenses
S. 9009--B 88
current on the effective date of this provision shall not be reduced in
duration by this provision. An applicant who applies for a license that,
if issued, would take effect less than six months prior to the appli-
cant's birth date may, by payment of a fifty percent higher fee, receive
a license which shall not expire until the applicant's second succeeding
birth date. All receipts of the commission derived from the operation of
this section shall be paid by it into the state treasury on or before
the tenth day of each month. All officials connected with the actual
conduct of racing shall be subject to approval by the commission.
§ 2. This act shall take effect immediately; provided, however, that
the amendments to subdivision one of section 220 of the racing, pari-mu-
tuel wagering and breeding law made by section one of this act shall not
affect the expiration of such subdivision and shall expire and be deemed
repealed therewith.
PART AA
Section 1. Subsection (g-1) of section 606 of the tax law, as amended
by chapter 378 of the laws of 2005, paragraphs 1 and 2 as amended by
chapter 375 of the laws of 2012, paragraph 3 as amended, paragraph 5 as
added, and paragraphs 6, 7 and 8 as renumbered by chapter 128 of the
laws of 2007, is amended to read as follows:
(g-1) Solar energy system equipment credit. (1) General. An individual
taxpayer shall be allowed a credit against the tax imposed by this arti-
cle equal to twenty-six percent of qualified solar energy system equip-
ment expenditures, except as provided in subparagraph (D) of paragraph
two of this subsection. This credit shall not exceed three thousand
seven hundred fifty dollars for qualified solar energy equipment placed
in service before September first, two thousand six, [and] five thousand
dollars for qualified solar energy equipment placed in service on or
after September first, two thousand six AND BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENERGY
EQUIPMENT PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX.
(2) Qualified solar energy system equipment expenditures. (A) The term
"qualified solar energy system equipment expenditures" means expendi-
tures for:
(i) the purchase of solar energy system equipment which is installed
in connection with residential property which is (I) located in this
state and (II) which is used by the taxpayer as [his or her] THEIR prin-
cipal residence at the time the solar energy system equipment is placed
in service;
(ii) the lease of solar energy system equipment under a written agree-
ment that spans at least ten years where such equipment owned by a
person other than the taxpayer is installed in connection with residen-
tial property which is (I) located in this state and (II) which is used
by the taxpayer as [his or her] THEIR principal residence at the time
the solar energy system equipment is placed in service; or
(iii) the purchase of power under a written agreement that spans at
least ten years whereunder the power purchased is generated by solar
energy system equipment owned by a person other than the taxpayer which
is installed in connection with residential property which is (I)
located in this state and (II) which is used by the taxpayer as [his or
her] THEIR principal residence at the time the solar energy system
equipment is placed in service.
S. 9009--B 89
(B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original installation, architectural and engineering services, and
designs and plans directly related to the construction or installation
of the solar energy system equipment.
(C) Such qualified expenditures for the purchase of solar energy
system equipment shall not include interest or other finance charges.
(D) Such qualified expenditures for the lease of solar energy system
equipment or the purchase of power under an agreement described in
clauses (ii) or (iii) of subparagraph (A) of this paragraph shall
include an amount equal to all payments made during the taxable year
under such agreement. Provided, however, such credits shall only be
allowed for fourteen years after the first taxable year in which such
credit is allowed. Provided further, however, the twenty-five percent
limitation in paragraph one of this subsection shall only apply to the
total aggregate amount of all payments to be made pursuant to an agree-
ment referenced in clauses (ii) or (iii) of subparagraph (A) of this
paragraph, and shall not apply to individual payments made during a
taxable year under such agreement except to the extent such limitation
on an aggregate basis has been reached.
(3) Solar energy system equipment. The term "solar energy system
equipment" shall mean an arrangement or combination of components
utilizing solar radiation, which, when installed in a residence, produc-
es AND MAY STORE energy designed to provide heating, cooling, hot water
or electricity for use in such residence. Such arrangement or components
MAY INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include ANY
OTHER equipment connected to solar energy system equipment that is a
component of part or parts of a non-solar energy system or which uses
any sort of recreational facility or equipment as a storage medium.
Solar energy system equipment that generates AND STORES electricity for
use in a residence must conform to applicable requirements set forth in
section sixty-six-j of the public service law. Provided, however, where
solar energy system equipment is purchased and installed by a condomin-
ium management association or a cooperative housing corporation, for
purposes of this subsection only, the term "ten kilowatts" in such
section sixty-six-j shall be read as ["fifty] "TEN kilowatts MULTIPLIED
BY THE NUMBER OF OWNER-OCCUPIED UNITS IN THE COOPERATIVE OR CONDOMINIUM
MANAGEMENT ASSOCIATION."
(4) Multiple taxpayers. Where solar energy system equipment is
purchased and installed in a principal residence shared by two or more
taxpayers, the amount of the credit allowable under this subsection for
each such taxpayer shall be prorated according to the percentage of the
total expenditure for such solar energy system equipment contributed by
each taxpayer.
(5) Proportionate share. Where solar energy system equipment is
purchased and installed by a condominium management association or a
cooperative housing corporation, a taxpayer who is a member of the
condominium management association or who is a tenant-stockholder in the
cooperative housing corporation may for the purpose of this subsection
claim a proportionate share of the total expense as the expenditure for
the purposes of the credit attributable to [his] THEIR principal resi-
dence.
(6) Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing solar energy system equipment, the
amount of any federal, state or local grant received by the taxpayer,
which was used for the purchase and/or installation of such equipment
S. 9009--B 90
and which was not included in the federal gross income of the taxpayer,
shall not be included in the amount of such expenditures.
(7) When credit allowed. The credit provided for herein shall be
allowed with respect to the taxable year, commencing after nineteen
hundred ninety-seven, in which the solar energy system equipment is
placed in service.
(8) Carryover of credit AND REFUNDABILITY. If the amount of the cred-
it, and carryovers of such credit, allowable under this subsection for
any taxable year shall exceed the taxpayer's tax for such year, such
excess amount may be carried over to the five taxable years next follow-
ing the taxable year with respect to which the credit is allowed and may
be deducted from the taxpayer's tax for such year or years. FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, IF
THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED
THE TAXPAYER'S TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
DEFINITION OF LOW TO MODERATE INCOME, AS DEFINED IN SUBDIVISION (C) OF
SECTION NINE HUNDRED SEVENTY-C OF THE GENERAL MUNICIPAL LAW, OR RESIDES
IN A DISADVANTAGED COMMUNITY, AS DEFINED IN SUBDIVISION FIVE OF SECTION
75-0101 OF THE ENVIRONMENTAL CONSERVATION LAW, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
§ 2. This act shall take effect immediately.
PART BB
Section 1. Short title. This act shall be known and may be cited as
the "Stop Climate Polluter Handouts Act".
§ 2. Subdivision (m) of section 301-a of the tax law, as added by
section 20 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(m) Special rate adjustment for certain vessels. Notwithstanding any
provision of this section to the contrary, the use of non-highway diesel
motor fuel in the engine of a vessel to propel such vessel shall be
subject to tax at the motor fuel and highway diesel motor fuel rate
provided for in this section, and shall be subject to the provisions of
section three hundred one-j of this article, including the adjustment
set forth in paragraph [four] THREE of subdivision (a) of such section
three hundred one-j. A credit or refund shall be available to the extent
tax paid on gallonage used to propel any such vessel exceeds the amount
of tax due based on the tax rate set forth herein. Provided, however,
that the commissioner shall require such documentary proof to qualify
for any credit or reimbursement provided hereunder as the commissioner
deems appropriate.
§ 3. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g)
of section 301-a of the tax law are REPEALED.
§ 4. Subdivisions (a) and (d) of section 301-b of the tax law, subdi-
vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of
subdivision (a) as amended by section 3 of part E of chapter 59 of the
laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by
section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi-
sion (d) as amended by section 21 of part K of chapter 61 of the laws of
2011, are amended to read as follows:
(a) Products. (1) [Kerosene sold or used by a petroleum business which
is registered under article twelve-A of this chapter as a distributor of
diesel motor fuel so long as (i) such product has not been blended or
S. 9009--B 91
mixed with any other product constituting diesel motor fuel or motor
fuel or a residual petroleum product and (ii) such product is not used
by the petroleum business as fuel to operate a motor vehicle or sold by
such petroleum business to a consumer for use as fuel to operate a motor
vehicle.
(2) Kero-jet fuel (i) sold by a petroleum business which is registered
under article twelve-A of this chapter as a distributor of diesel motor
fuel to a consumer for use exclusively as jet aircraft fuel or to a
petroleum business registered under such article twelve-A as a "distrib-
utor of kero-jet fuel only" where such fixed base operator is engaged
solely in making or offering to make retail sales not in bulk of kero-
jet fuel directly into the fuel tank of an airplane for the purpose of
operating such airplane, (ii) used by a petroleum business, registered
under article twelve-A of this chapter as a distributor of diesel motor
fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in
bulk by a petroleum business registered under article twelve-A of this
chapter as a "distributor of kero-jet fuel only" where such fuel is
delivered directly into the fuel tank of a jet airplane for use in the
operation of such airplane.
(3)] Aviation gasoline, meeting the specifications set forth in Ameri-
can Standard Testing Material Specification D910 or Military Specifica-
tion MIL-G-5572, which is imported or caused to be imported into this
state by a petroleum business which is registered under article twelve-A
of this chapter as a distributor of motor fuel or produced, refined,
manufactured or compounded in this state by such a petroleum business.
[(4) Residual petroleum product sold by a petroleum business regis-
tered under this article as a residual petroleum product business if
such product is sold by such petroleum business to a consumer for use
exclusively as bunker fuel for vessels or if such product is used by
such petroleum business exclusively as bunker fuel in its own vessels.
(5)] (2) Liquefied petroleum gases, such as butane, ethane or propane,
USED FOR PURPOSES OTHER THAN AS MOTOR FUEL IN THE OPERATION OF A MOTOR
VEHICLE OR FOR USE IN THE OPERATION OF A PLEASURE OR RECREATIONAL MOTOR
BOAT OR USING OR CONSUMING LIQUEFIED PETROLEUM GAS FOR SUCH PURPOSE.
[(6)] (3) E85 imported or caused to be imported into this state or
produced, refined, manufactured or compounded in this state by a petro-
leum business registered under article twelve-A of this chapter, as a
distributor of motor fuel, and then sold by such petroleum business and
delivered to a filling station and placed in a storage tank of such
filling station for such E85 to be dispensed directly into a motor vehi-
cle for use in the operation of such vehicle.
[(7)] (4) (i) Partial B20 exemption. B20 imported or caused to be
imported into this state or produced, refined, manufactured or
compounded in this state by a petroleum business registered under arti-
cle twelve-A of this chapter, as a distributor of diesel motor fuel, and
then sold by such petroleum business.
(ii) Calculation of partial exemption. The amount of the partial
exemption under this paragraph shall be determined by multiplying the
quantity of B20 times twenty percent of the applicable taxes otherwise
imposed by this article on such fuel.
[(8)] (5) CNG or hydrogen.
(d) Sales to consumers for heating purposes. [(1)] Total residential
heating exemption. Non-highway diesel motor fuel sold by a petroleum
business registered under article twelve-A of this chapter as a distrib-
utor of diesel motor fuel or residual petroleum product sold by a petro-
leum business registered under this article as a residual petroleum
S. 9009--B 92
product business to the consumer exclusively for residential heating
purposes only if such non-highway diesel motor fuel is delivered into a
storage tank which is not equipped with a hose or other apparatus by
which such fuel can be dispensed into the fuel tank of a motor vehicle
and such storage tank is attached to the heating unit burning such fuel.
[(2) Partial non-residential heating exemption. (A) Non-highway diesel
motor fuel sold by a petroleum business registered under article
twelve-A of this chapter as a distributor of diesel motor fuel or resi-
dual petroleum product sold by a petroleum business registered under
this article as a residual petroleum product business to the consumer
exclusively for heating, other than residential heating purposes only if
such non-highway diesel motor fuel is delivered into a storage tank
which is not equipped with a hose or other apparatus by which such fuel
can be dispensed into the fuel tank of a motor vehicle and such storage
tank is attached to the heating unit burning such fuel (B) Calculation
of partial exemption. The partial exemption under this paragraph shall
be determined by multiplying the quantity of non-highway diesel motor
fuel and residual petroleum product eligible for the exemption times the
sum of the then current rate of the supplemental tax imposed by section
three hundred one-j of this article and forty-six percent of the then
current rate of the tax imposed by section three hundred one-a of this
article, with respect to the specific non-highway diesel motor fuel or
residual petroleum product rate, as the case may be.]
§ 5. The subdivision heading and paragraph 1 of subdivision (c) of
section 301-b of the tax law, as added by chapter 190 of the laws of
1990, are amended to read as follows:
Sales to [New York state and] the federal government. (1) Motor fuel
imported or caused to be imported into this state or produced, refined,
manufactured or compounded in this state by a petroleum business regis-
tered under article twelve-A of this chapter, as a distributor of motor
fuel, and then sold by such petroleum business to an organization
described in paragraph [one or] two of subdivision (a) of section eleven
hundred sixteen of this chapter where such motor fuel is used by such
organization for its own use or consumption.
§ 6. The opening paragraph and subdivisions (a) and (b) of section
301-c of the tax law, the opening paragraph as amended by section 2 of
part T of chapter 59 of the laws of 2022, subdivision (a) as amended by
section 23 of part K of chapter 61 of the laws of 2011, and subdivision
(b) as amended by chapter 330 of the laws of 1991, are amended to read
as follows:
A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such purchaser
in accordance with subdivision (a), (b), (e), (h), [(j), (k), (n) or
(o)] (I), (K) OR (L) of this section or used by such purchaser in
accordance with subdivision (c), (d), (f), (g), [(i), (l), (m)] (J) or
[(q)] (N) of this section, which gallonage has been included in the
measure of the tax imposed by this article on a petroleum business:
(a) [Non-highway Diesel motor fuel used for heating purposes. (1)]
Total residential heating reimbursement. Non-highway Diesel motor fuel
purchased in this state and sold by such purchaser to a consumer for use
exclusively for residential heating purposes but only where (i) such
non-highway diesel motor fuel is delivered into a storage tank which is
not equipped with a hose or other apparatus by which such non-highway
Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle
and such storage tank is attached to the heating unit burning such non-
highway Diesel motor fuel, (ii) the tax imposed pursuant to this article
S. 9009--B 93
has been paid with respect to such non-highway diesel motor fuel and the
entire amount of such tax has been absorbed by such purchaser, and (iii)
such purchaser possesses documentary proof satisfactory to the commis-
sioner evidencing the absorption by it of the entire amount of the tax
imposed pursuant to this article. Provided, however, that the commis-
sioner is authorized, in the event that the commissioner determines that
it would not threaten the integrity of the administration and enforce-
ment of the tax imposed by this article, to provide a reimbursement with
respect to a retail sale to a consumer for residential heating purposes
of less than ten gallons of non-highway diesel motor fuel provided such
fuel is not dispensed into the tank of a motor vehicle.
[(2) Partial non-residential heating reimbursement. (A) Non-highway
Diesel motor fuel purchased in this state and sold by such purchaser to
a consumer for use exclusively for heating, other than for residential
heating purposes, but only where (i) such non-highway diesel motor fuel
is delivered into a storage tank which is not equipped with a hose or
other apparatus by which such non-highway Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle and such storage tank is
attached to the heating unit burning such non-highway Diesel motor fuel,
(ii) the tax imposed pursuant to this article has been paid with respect
to such non-highway diesel motor fuel and the entire amount of such tax
has been absorbed by such purchaser, and (iii) such purchaser possesses
documentary proof satisfactory to the commissioner evidencing the
absorption by it of the entire amount of the tax imposed pursuant to
this article.
(B) Calculation of partial reimbursement. Notwithstanding any other
provision of this article, the amount of the reimbursement under this
paragraph shall be determined by multiplying the quantity of non-highway
diesel motor fuel eligible for the reimbursement times the sum of the
then current rate of the supplemental tax imposed by section three
hundred one-j of this article and forty-six percent of the then current
rate of the tax imposed by section three hundred one-a of this article,
with respect to the non-highway diesel motor fuel rate, as the case may
be.]
(b) Sales to [New York state and] the federal government. Motor fuel
and diesel motor fuel purchased in this state and sold by such purchaser
in this state to an organization described in paragraph [one or] two of
subdivision (a) of section eleven hundred sixteen of this chapter where
(i) such motor fuel or diesel motor fuel is for such organization's own
use or consumption, (ii) the tax imposed pursuant to this article has
been paid with respect to such motor fuel or diesel motor fuel and the
entire amount of such tax has been absorbed by such purchaser and, (iii)
such purchaser possesses documentary proof satisfactory to the commis-
sioner of taxation and finance evidencing the absorption by it of the
entire amount of the tax imposed pursuant to this article. Provided,
however, that the commissioner [of taxation and finance] shall require
such documentary proof to qualify for any reimbursement of tax provided
by this section as the commissioner deems appropriate, including the
expansion of any certification required pursuant to section two hundred
eighty-five-a or two hundred eighty-five-b of this chapter to cover the
taxes imposed pursuant to this article.
§ 6-a. The opening paragraph of section 301-c of the tax law, as
amended by section 3 of part T of chapter 59 of the laws of 2022, is
amended to read as follows:
A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such purchaser
S. 9009--B 94
in accordance with subdivision (a), (b), (e), (h), [(j)] or [(k)] (I) of
this section or used by such purchaser in accordance with subdivision
(c), (d), (f), (g), [(i), (l), (m)] (J) or [(q)] (N) of this section,
which gallonage has been included in the measure of the tax imposed by
this article on a petroleum business:
§ 7. Subdivisions (i), (j) and (l) of section 301-c of the tax law are
REPEALED.
§ 8. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c of
the tax law are relettered subdivisions (i), (j), (k), (l), (m) and (n).
§ 9. Section 301-d of the tax law is REPEALED.
§ 10. Subdivision (f) of section 301-e of the tax law is REPEALED.
§ 11. Subdivision (a) of section 301-j of the tax law, as amended by
chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by
section 29 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(a) Imposition of tax. (1) In addition to the taxes imposed by
sections three hundred one-a and three hundred one-e of this article,
there is hereby imposed upon every petroleum business subject to tax
imposed under section three hundred one-a of this article and every
aviation fuel business subject to the aviation gasoline component of the
tax imposed under section three hundred one-e of this article, a supple-
mental monthly tax for each or any part of a taxable month at a rate of
six and eight-tenths cents per gallon with respect to the products
included in each component of the taxes imposed by such section three
hundred one-a and the aviation gasoline component of the tax imposed by
such section three hundred one-e of this article.
(2) [Provided, however, "commercial gallonage," as such term is
defined in subdivision (k) of section three hundred of this article,
shall be exempt from the measure of the tax imposed under this section.
(3)] Provided, further, "railroad diesel," as such term is defined in
subdivision (l) of section three hundred of this article, shall be
exempt from the measure of the tax imposed under this section.
[(4)] (3) Provided, further, a separate per gallon rate shall apply
with respect to highway diesel motor fuel. Such rate shall be determined
by taking the adjusted rate per gallon of tax imposed under paragraph
one of this subdivision as adjusted in accordance with paragraph [five]
FOUR of this subdivision and subtracting therefrom one and three-quar-
ters cents. Commencing January first, two thousand twelve, and each
January thereafter, the per gallon rate applicable to highway diesel
motor fuel shall be the adjusted rate under paragraph one of this subdi-
vision as adjusted in accordance with paragraph [five] FOUR of this
subdivision which commences on such date minus one and three-quarters
cents. The resulting rate under this paragraph shall be expressed in
hundredths of a cent.
[(5)] (4) Except as herein provided, the tax imposed under this
section shall be calculated in the same respective manner as the taxes
imposed by section three hundred one-a and section three hundred one-e
of this article. Except [for section three hundred one-d and except] as
otherwise provided in this section, all the provisions of this article
applicable to the taxes imposed by sections three hundred one-a and
three hundred one-e of this article, shall apply with respect to the
supplemental tax imposed by this section to the same extent as if it
were respectively imposed by such sections.
§ 12. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of
subdivision (c) of section 1105 of the tax law, subparagraph (ix) of
paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph
S. 9009--B 95
(x) of paragraph 3 as added by section 1 of part FF of chapter 407 of
the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws
of 2005, are amended to read as follows:
(ix) [such services rendered with respect to tangible property used or
consumed directly and predominantly in the production for sale of gas or
oil by manufacturing, processing, generating, assembling, refining,
mining, or extracting.
(x)] such services rendered with respect to property described in
paragraph twelve-a of subdivision (a) of section eleven hundred fifteen
of this article.
(5) Maintaining, servicing or repairing real property, property or
land, as such terms are defined in the real property tax law, whether
the services are performed in or outside of a building, as distinguished
from adding to or improving such real property, property or land, by a
capital improvement as such term capital improvement is defined in para-
graph nine of subdivision (b) of section eleven hundred one of this
article, but excluding (i) services rendered by an individual who is not
in a regular trade or business offering [his] SUCH INDIVIDUAL'S services
to the public, (ii) [services rendered directly with respect to real
property, property or land used or consumed directly and predominantly
in the production for sale of gas or oil by manufacturing, processing,
generating, assembling, refining, mining, or extracting, (iii)] services
rendered with respect to real property, property or land used or
consumed predominantly either in the production of tangible personal
property, for sale, by farming or in a commercial horse boarding opera-
tion, or in both and [(iv)] (III) services of removal of waste material
from a facility regulated as a transfer station or construction and
demolition debris processing facility by the department of environmental
conservation, provided that the waste material to be removed was not
generated by the facility.
§ 13. Subparagraph (xi) of paragraph 3 of subdivision (c) of section
1105 of the tax law is REPEALED.
§ 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is
REPEALED.
§ 15. Paragraphs 3 and 4 of subdivision (a) of section 1221 of the tax
law, paragraph 3 as amended by chapter 2 of the laws of 1995 and para-
graph 4 as added by chapter 93 of the laws of 1965, are amended and a
new paragraph 5 is added to read as follows:
(3) except in accordance with the provisions of section twenty-b of
the general city law, a tax upon gross incomes, gross operating incomes
or gross receipts of persons subject to taxation under the provisions of
section one hundred eighty-six-a or one hundred eighty-six-e of this
chapter, but this clause shall not be deemed to restrict the power to
tax persons not subject to taxation under such section of this chapter
who are otherwise subject to taxation under subdivision (a) of section
twelve hundred one OF THIS ARTICLE, nor the power to provide for credits
against any tax imposed pursuant to such subdivision, nor to limit the
rates of taxes authorized to be imposed by such subdivision [(a) of such
section twelve hundred one], [or]
(4) a tax upon interest or dividends received from a corporation by a
person referred to in this section[.], OR
(5) A TAX ON FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES.
§ 16. Section 1148 of the tax law is amended by adding a new subdivi-
sion (d) to read as follows:
(D) PROVIDED, HOWEVER, BEFORE SUCH FUNDS ARE DISTRIBUTED PURSUANT TO
SUBDIVISION (A) OF THIS SECTION, ANY REVENUE COLLECTED BY THE STATE,
S. 9009--B 96
FROM FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES, UNDER THE AUTHOR-
ITY GRANTED TO THE STATE BY THIS ARTICLE SHALL BE DEDICATED TO THE
AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND,
PROVIDED THAT THE PORTION FOR THE AIRPORT OR AVIATION STATE PROGRAM
SHALL BE NO LESS THAN FORTY MILLION DOLLARS ANNUALLY, WITH THE REMAINING
REVENUE COLLECTED FROM SUCH TAXES BEING DEDICATED TO THE CAPITAL
PROJECTS FUND FOR AVIATION PURPOSES REQUIRED IN CONNECTION THEREWITH OF
AIRPORTS AND AVIATION FACILITIES, EQUIPMENT AND RELATED PROJECTS.
§ 17. Paragraph (ii) of subdivision (b) of section 1115 of the tax
law, as amended by section 30 of part Y of chapter 63 of the laws of
2000, is amended to read as follows:
(ii) [Gas, electricity] ELECTRICITY, refrigeration and steam, and
[gas,] electric, refrigeration and steam service of whatever nature for
use or consumption directly and exclusively in research and development
in the experimental or laboratory sense shall be exempt from the tax
imposed under subdivision (b) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten of this
article. Such research and development shall not be deemed to include
the ordinary testing or inspection of materials or products for quality
control, efficiency surveys, management studies, consumer surveys,
advertising, promotions or research in connection with literary, histor-
ical or similar projects.
§ 18. Paragraph 1 of subdivision (c) of section 1115 of the tax law,
as amended by section 7 of part B of chapter 63 of the laws of 2000, is
amended to read as follows:
(1) [Fuel, gas, electricity] ELECTRICITY, refrigeration and steam, and
[gas,] electric, refrigeration and steam service of whatever nature for
use or consumption directly and exclusively in the production of tangi-
ble personal property, [gas,] electricity, refrigeration or steam, for
sale, by manufacturing, processing, assembling, generating, refining,
mining or extracting shall be exempt from the taxes imposed under subdi-
visions (a) and (b) of section eleven hundred five and the compensating
use tax imposed under section eleven hundred ten of this article.
§ 19. Subdivision (j) of section 1115 of the tax law, as amended by
section 41 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel, except
that the exemptions provided in [paragraphs nine and] PARAGRAPH forty-
two of subdivision (a) of this section shall apply to the tax required
to be prepaid pursuant to the provisions of section eleven hundred two
of this article and to the taxes imposed by sections eleven hundred five
and eleven hundred ten of this article with respect to sales and uses of
[kero-jet fuel,] CNG, hydrogen and E85, provided, however, the exemption
allowed for E85 shall be subject to the additional requirements provided
in section eleven hundred two of this article with respect to E85. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel but only if all of such
fuel is consumed other than on the public highways of this state. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel for use or consumption
either in the production for sale of tangible personal property by farm-
ing or in a commercial horse boarding operation, or in both but only if
S. 9009--B 97
all of such fuel is consumed other than on the public highways of this
state (except for the use of the public highways to reach adjacent farm-
lands or adjacent lands used in a commercial horse boarding operation,
or both).
§ 19-a. Subdivision (j) of section 1115 of the tax law, as amended by
section 41-a of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel[, except
that the exemption provided in paragraph nine of subdivision (a) of this
section shall apply to the tax required to be prepaid pursuant to the
provisions of section eleven hundred two of this article and to the
taxes imposed by sections eleven hundred five and eleven hundred ten of
this article with respect to sales and uses of kero-jet fuel]. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel but only if all of such
fuel is consumed other than on the public highways of this state. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel for use or consumption
either in the production for sale of tangible personal property by farm-
ing or in a commercial horse boarding operation, or in both but only if
all of such fuel is consumed other than on the public highways of this
state (except for the use of the public highways to reach adjacent farm-
lands or adjacent lands used in a commercial horse boarding operation,
or both).
§ 20. Subdivision (s) of section 1115 of the tax law, as added by
chapter 201 of the laws of 1995, is relettered subdivision (p).
§ 21. Subdivision (w) of section 1115 of the tax law, as added by
section 32 of part Y of chapter 63 of the laws of 2000, is amended to
read as follows:
(w) Receipts from the sale of [gas or] electricity or [gas or] elec-
tric service of whatever nature and consideration given or contracted to
be given for, or for the use of, [gas or] electricity or [gas or] elec-
tric service of whatever nature purchased for use or consumption direct-
ly and exclusively to provide [gas or] electric service of whatever
nature consisting of operating [a gas pipeline or gas distribution line
or] an electric transmission or distribution line [and ensuring the
necessary working pressure in an underground gas storage facility] shall
be exempt from sales and compensating use taxes imposed by this article.
Such exempt [gas or] electricity or [gas or] electric service of whatev-
er nature shall include, but shall not be limited to, such [gas or]
electricity or [gas or] electric service of whatever nature used or
consumed directly and exclusively to (1) [ensure necessary working pres-
sure in a gas pipeline used to transport, transmit or distribute gas,
(2) operate compressors used to transport, transmit or distribute gas
through such a gas pipeline or distribution line or used to ensure
necessary working pressure in such a storage facility, (3) operate heat-
ers to prevent gas in such a pipeline or distribution line from freez-
ing, (4) operate equipment which removes impurities and moisture from
gas in such a pipeline or distribution line, (5)] operate substations
and equipment related to electric transmission and distribution lines
such as transformers, capacitors, meters, switches, communication
devices and heating and cooling equipment, and [(6)] (2) ensure the
S. 9009--B 98
reliability of electricity or electric service transmitted or distrib-
uted through such lines, for example, by operating reserve capacity
machinery and equipment.
§ 22. Subdivision (k) of section 300 of the tax law, as amended by
section 17 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(k) "Commercial gallonage" means gallonage (1) which is non-highway
diesel motor fuel or residual petroleum product, (2) [which is included
in the full measure of the non-highway diesel motor fuel component or
the residual petroleum product component of the tax imposed under
section three hundred one-a of this article, (3)] which does not (and
will not) qualify (A) [for the utility credit or reimbursement provided
for in section three hundred one-d of this article, (B)] as "manufactur-
ing gallonage", as such term is defined in subdivision (m) of this
section, [(C)] OR (B) for the not-for-profit organization exemption
provided for in subdivision (h) of section three hundred one-b of this
article, [or (D) for the heating exemption provided for in paragraph two
of subdivision (d) of section three hundred one-b of this article or the
heating reimbursement provided for in paragraph two of subdivision (a)
of section three hundred one-c of this article,] and [(4)] (3) which
will not be used nor has been used in the fuel tank connecting with the
engine of a vessel. No gallonage shall qualify as "commercial gallonage"
where such gallonage is eligible for the [(i) utility credit or
reimbursement under such section three hundred one-d of this article,
(ii) "manufacturing exemption" under paragraph three of subdivision (f)
of section three hundred one-a of this article, (iii)] not-for-profit
organization exemption under subdivision (h) of section three hundred
one-b of this article[, or (iv) heating exemption provided for in para-
graph two of subdivision (d) of section three hundred one-b of this
article or the heating reimbursement provided for in paragraph two of
subdivision (a) of section three hundred one-c of this article]. The
commissioner shall require such documentary proof to substantiate the
classification of product as "commercial gallonage" as the commissioner
deems appropriate.
§ 23. Paragraph 1 of subdivision (f) of section 301-b of the tax law,
as amended by section 21 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
(1) Residual petroleum product and non-highway diesel motor fuel sold
to an electric corporation, [as described in subdivision (a) of section
three hundred one-d of this article,] AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION TWO OF THE PUBLIC SERVICE LAW, SUBJECT TO THE SUPERVISION OF
THE DEPARTMENT OF PUBLIC SERVICE, which is registered with the depart-
ment as a petroleum business tax direct pay permittee, and used by such
electric corporation to fuel generators for the purpose of manufacturing
or producing electricity where such electric corporation provides a copy
of a direct pay permit authorized and issued by the commissioner, to the
petroleum business making such sale. If so registered, such corporation
shall be a taxpayer under this article and (i) such electric corporation
shall file a return monthly and pay the applicable tax under this arti-
cle, after the application of allowable credits, on all such purchases
directly to the commissioner, (ii) such electric corporation shall be
subject to all of the provisions of this article relating to the respon-
sibilities and liabilities of taxpayers under this article with respect
to such residual petroleum product and non-highway diesel motor fuel.
S. 9009--B 99
§ 24. This act shall take effect immediately and shall apply to taxa-
ble years commencing on or after the first of January next succeeding
the date on which it shall have become a law; provided, however, that:
(a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of
section 301-b of the tax law made by section four of this act shall not
affect the repeal of such paragraphs and shall be deemed repealed there-
with;
(b) the amendments to the opening paragraph of section 301-c of the
tax law made by section six of this act shall be subject to the expira-
tion and reversion of such paragraph pursuant to section 19 of part W-1
of chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section six-a of this act shall take effect;
(c) the amendments to subdivisions (n) and (o) of section 301-c of the
tax law, relettered subdivisions (k) and (l) by section eight of this
act, shall not affect the repeal of such subdivisions and shall be
deemed repealed therewith; and
(d) the amendments to subdivision (j) of section 1115 of the tax law
made by section nineteen of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 19 of part W-1 of
chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section nineteen-a of this act shall take effect.
PART CC
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 28 to read as follows:
(28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 2. Subdivision 9 of section 208 of the tax law is amended by adding
a new paragraph (u) to read as follows:
(U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
(44) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 4. Section 612 of the tax law is amended by adding a new subsection
(z) to read as follows:
(Z) QUALIFIED OPPORTUNITY ZONES. FOR TAX YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, UPON THE SALE OR EXCHANGE OF
PROPERTY WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER
SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2
OF THE INTERNAL REVENUE CODE, THE BASIS OF SUCH PROPERTY UNDER THIS
ARTICLE SHALL BE DETERMINED AS IF THE TAXPAYER HAD NOT MADE SUCH
ELECTION.
§ 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (AA) to read as follows:
(AA) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
S. 9009--B 100
§ 6. Section 1503 of the tax law is amended by adding a new subdivi-
sion (d) to read as follows:
(D) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 7. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 23 to read as follows:
(23) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 8. Section 11-602 of the administrative code of the city of New York
is amended by adding a new subdivision 11 to read as follows:
11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 24 to read as follows:
(24) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 10. Subdivision 8 of section 11-652 of the administrative code of
the city of New York is amended by adding a new paragraph (u) to read as
follows:
(U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 11. Subdivision (b) of section 11-1712 of the administrative code of
the city of New York is amended by adding a new paragraph 40 to read as
follows:
(40) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 12. Section 11-1712 of the administrative code of the city of New
York is amended by adding a new subdivision (w) to read as follows:
(W) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 13. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2026.
PART DD
S. 9009--B 101
Section 1. Subsection (e-1) of section 606 of the tax law, as added by
section 1 of part U of chapter 62 of the laws of 2006, paragraph 2 as
amended by chapter 532 of the laws of 2007, paragraph 3 as added and
paragraph 4 as renumbered by section 4 of part N of chapter 61 of the
laws of 2006, is amended to read as follows:
(e-1) Volunteer firefighters' and ambulance workers' credit. (1) For
taxable years beginning on and after January first, two thousand seven
AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, a resident taxpayer
who serves as an active volunteer firefighter as defined in subdivision
one of section two hundred fifteen of the general municipal law or as a
volunteer ambulance worker as defined in subdivision fourteen of section
two hundred nineteen-k of the general municipal law shall be allowed a
credit against the tax imposed by this article equal to two hundred
dollars. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, A RESIDENT TAXPAYER WHO SERVES AS AN ACTIVE VOLUN-
TEER FIREFIGHTER AS DEFINED IN SUBDIVISION ONE OF SECTION TWO HUNDRED
FIFTEEN OF THE GENERAL MUNICIPAL LAW OR AS A VOLUNTEER AMBULANCE WORKER
AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION TWO HUNDRED NINETEEN-K OF
THE GENERAL MUNICIPAL LAW SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE EQUAL TO SIX HUNDRED DOLLARS. In order to
receive this credit a volunteer firefighter or volunteer ambulance work-
er must have been active for the entire taxable year for which the cred-
it is sought.
(2) [If] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, IF a taxpayer receives a real property tax exemption
relating to such service under title two of article four of the real
property tax law, such taxpayer shall not be eligible for this credit;
provided, however (A) if the taxpayer receives such real property tax
exemption in the two thousand seven taxable year as a result of making
application therefor in a prior year or (B) if the taxpayer notifies
[his or her] SUCH TAXPAYER'S assessor in writing by December thirty-
first, two thousand seven of the taxpayer's intent to discontinue such
real property tax exemption by not re-applying for such real property
tax exemption by the next taxable status date, such taxpayer shall be
eligible for this credit for the two thousand seven taxable year. FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, A TAXPAYER IS ELIGIBLE FOR THIS CREDIT EVEN IF THEY RECEIVE A REAL
PROPERTY TAX EXEMPTION RELATING TO SUCH SERVICE UNDER TITLE TWO OF ARTI-
CLE FOUR OF THE REAL PROPERTY TAX LAW.
(3) In the case of [a husband and wife] SPOUSES who file a joint
return and who both individually qualify for the credit under this
subsection FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO
THOUSAND SEVEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, the
amount of the credit allowed shall be four hundred DOLLARS. FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, THE
AMOUNT OF THE CREDIT SHALL BE TWELVE HUNDRED dollars.
(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART EE
S. 9009--B 102
Section 1. Subdivision (e) of section 42 of the tax law, as amended by
section 1 of part JJ of chapter 59 of the laws of 2025, is amended to
read as follows:
(e) For taxable years beginning on or after January first, two thou-
sand seventeen and before January first, two thousand eighteen, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and two hundred
fifty dollars. For taxable years beginning on or after January first,
two thousand eighteen and before January first, two thousand nineteen,
the amount of the credit allowed under this section shall be equal to
the product of the total number of eligible farm employees and three
hundred dollars. For taxable years beginning on or after January first,
two thousand nineteen and before January first, two thousand twenty, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and five hundred
dollars. For taxable years beginning on or after January first, two
thousand twenty and before January first, two thousand twenty-one, the
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and four hundred
dollars. For taxable years beginning on or after January first, two
thousand twenty-one and before January first, two thousand twenty-two,
the amount of the credit allowed under this section shall be equal to
the product of the total number of eligible farm employees and six
hundred dollars. For taxable years beginning on or after January first,
two thousand twenty-two [and before January first, two thousand twenty-
nine], the amount of the credit allowed under this section shall be
equal to the product of the total number of eligible farm employees and
twelve hundred dollars.
§ 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending
the tax law relating to creating a farm workforce retention credit, as
amended by section 2 of part JJ of chapter 59 of the laws of 2025, is
amended to read as follows:
§ 5. This act shall take effect immediately and shall apply only to
taxable years beginning on or after January 1, 2017 [and before January
1, 2029].
§ 3. This act shall take effect immediately.
PART FF
Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1
of subsection (a) of section 601 of the tax law, as amended by section 1
of part B of chapter 59 of the laws of 2025, are amended to read as
follows:
(vi) For taxable years beginning in two thousand twenty-three [and
before two thousand twenty-six] the following rates shall apply:
If the New York taxable income is: The tax is:
Not over $17,150 4% of the New York taxable income
Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150
Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600
Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900
Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550
Over $323,200 but not over $18,252 plus 6.85% of excess over
S. 9009--B 103
$2,155,350 $323,200
Over $2,155,350 but not over $143,754 plus 9.65% of excess over
$5,000,000 $2,155,350
Over $5,000,000 but not over $418,263 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,478,263 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-five and
before two thousand twenty-seven] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $17,150 3.90% of the New York taxable
income
Over $17,150 but not over $23,600 $669 plus 4.40% of excess over
$17,150
Over $23,600 but not over $27,900 $953 plus 5.15% of excess over
$23,600
Over $27,900 but not over $161,550 $1,174 plus 5.40% of excess over
$27,900
Over $161,550 but not over $323,200 $8,391 plus 5.90% of excess over
$161,550
Over $323,200 but not over $17,928 plus 6.85% of excess
$2,155,350 over $323,200
Over $2,155,350 but not over $143,430 plus 9.65% of excess
$5,000,000 over $2,155,350
Over $5,000,000 but not over $417,939 plus [10.30%] 10.80%
of excess over $5,000,000
$25,000,000
Over $25,000,000 $2,477,939 plus [10.90%] 11.40%
of excess over $25,000,000
§ 2. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of
subsection (b) of section 601 of the tax law, as amended by section 3 of
part B of chapter 59 of the laws of 2025, are amended to read as
follows:
(vi) For taxable years beginning in two thousand twenty-three [and
before two thousand twenty-six] the following rates shall apply:
If the New York taxable income is: The tax is:
Not over $12,800 4% of the New York taxable income
Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800
Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650
Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900
Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650
Over $269,300 but not over $15,371 plus 6.85% of excess over
$1,616,450 $269,300
Over $1,616,450 but not over $107,651 plus 9.65% of excess over
$5,000,000 $1,616,450
Over $5,000,000 but not over $434,163 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,494,163 plus 10.90% of excess over
$25,000,000
S. 9009--B 104
(vii) For taxable years beginning after two thousand [twenty-five and
before two thousand twenty-seven] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $12,800 3.90% of the New York taxable
income
Over $12,800 but not over $499 plus 4.40% of excess over
$17,650 $12,800
Over $17,650 but not over $712 plus 5.15% of excess over
$20,900 $17,650
Over $20,900 but not over $879 plus 5.40% of excess over
$107,650 $20,900
Over $107,650 but not over $5,564 plus 5.90% of excess
$269,300 over $107,650
Over $269,300 but not over $15,101 plus 6.85% of excess
$1,616,450 over $269,300
Over $1,616,450 but not over $107,381 plus 9.65% of excess
$5,000,000 over $1,616,450
Over $5,000,000 but not over $433,894 plus [10.30%] 10.80%
of excess over $5,000,000
$25,000,000
Over $25,000,000 $2,493,894 plus [10.90%] 11.40%
of excess over $25,000,000
§ 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of
subsection (c) of section 601 of the tax law, as amended by section 5 of
part B of chapter 59 of the laws of 2025, are amended to read as
follows:
(vi) For taxable years beginning in two thousand twenty-three [and
before two thousand twenty-six] the following rates shall apply:
If the New York taxable income is: The tax is:
Not over $8,500 4% of the New York taxable income
Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500
Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700
Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900
Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over
$80,650
Over $215,400 but not over $12,356 plus 6.85% of excess over
$1,077,550 $215,400
Over $1,077,550 but not over $71,413 plus 9.65% of excess over
$5,000,000 $1,077,550
Over $5,000,000 but not over $449,929 plus 10.30% of excess over
$25,000,000 $5,000,000
Over $25,000,000 $2,509,929 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-five and
before two thousand twenty-seven] TWENTY-SIX the following rates shall
apply:
If the New York taxable income is: The tax is:
Not over $8,500 3.90% of the New York taxable income
Over $8,500 but not over $11,700 $332 plus 4.40% of excess over
$8,500
Over $11,700 but not over $13,900 $473 plus 5.15% of excess over
S. 9009--B 105
$11,700
Over $13,900 but not over $80,650 $586 plus 5.40% of excess over
$13,900
Over $80,650 but not over $215,400 $4,191 plus 5.90% of excess
over $80,650
Over $215,400 but not over $12,141 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 but not over $71,198 plus 9.65% of excess
$5,000,000 over $1,077,550
Over $5,000,000 but not over $449,714 plus [10.30%] 10.80%
of excess over $5,000.000
$25,000,000
Over $25,000,000 $2,509,714 plus [10.90%] 11.40%
of excess over $25,000,000
§ 4. Subparagraph (B) of paragraph 1 of subsection (d-4) of section
601 of the tax law, as added by section 3 of subpart B of part A of
chapter 59 of the laws of 2022, is amended to read as follows:
(B) If New York adjusted gross income is greater than twenty-five
million dollars, the supplemental tax due shall equal the difference
between the product of [10.90] 11.40 percent and New York taxable income
and the tax table computation on the New York taxable income set forth
in paragraph one of subsection (a) of this section.
§ 5. Subparagraph (B) of paragraph 2 of subsection (d-4) of section
601 of the tax law, as added by section 3 of subpart B of part A of
chapter 59 of the laws of 2022, is amended to read as follows:
(B) If New York adjusted gross income is greater than twenty-five
million dollars, the supplemental tax due shall equal the difference
between the product of [10.90] 11.40 percent and New York taxable income
and the tax table computation on the New York taxable income set forth
in paragraph one of subsection (b) of this section.
§ 6. Subparagraph (B) of paragraph 3 of subsection (d-4) of section
601 of the tax law, as added by section 3 of subpart B of part A of
chapter 59 of the laws of 2022, is amended to read as follows:
(B) If New York adjusted gross income is greater than twenty-five
million dollars, the supplemental tax due shall equal the difference
between the product of [10.90] 11.40 percent and New York taxable income
and the tax table computation on the New York taxable income set forth
in paragraph one of subsection (c) of this section.
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART GG
Section 1. Subsection (b) of section 863 of the tax law, as added by
section 1 of part C of chapter 59 of the laws of 2021, is amended to
read as follows:
(b) Limitation on credit. The aggregate amount of credits claimed by
all partners, members or shareholders of an electing partnership or
electing S corporation pursuant to subsection (a) of this section shall
not exceed NINETY PERCENT OF the tax due under [subsection (a) of]
section eight hundred sixty-two of this article from such electing part-
nership or electing S corporation for the taxable year.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
S. 9009--B 106
PART HH
Section 1. Section 1203 of the tax law is amended by adding a new
subdivision c to read as follows:
C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL
GOVERNING BODY OF THE CITY OF BUFFALO, BY THE ADOPTION OF LOCAL LAWS,
ORDINANCES OR RESOLUTIONS MAY IMPOSE IN SUCH CITY THE TAX OTHERWISE
AUTHORIZED UNDER SUBDIVISION (B) OF SECTION TWELVE HUNDRED ONE OF THIS
SUBPART: (I) AT A RATE NOT TO EXCEED ONE PERCENT OF SUCH CONSIDERATION
OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS LESS THAN ONE MILLION
DOLLARS ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN; AND
(II) AT A RATE NOT TO EXCEED TWO PERCENT OF SUCH CONSIDERATION OR VALUE
WHERE SUCH CONSIDERATION OR VALUE IS MORE THAN ONE MILLION DOLLARS ON
EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN, SUCH TAXES TO BE
ADMINISTERED AND COLLECTED IN THE MANNER PROVIDED FOR IN SUBPART A OF
PART THREE OF THIS ARTICLE.
§ 2. This act shall take effect immediately.
PART II
Section 1. Subdivision (jj) of section 1115 of the tax law, as added
by section 1 of part SS of chapter 59 of the laws of 2015, is REPEALED.
§ 2. Subdivision 13 of section 1118 of the tax law, as added by
section 2 of part SS of chapter 59 of the laws of 2015, is REPEALED.
§ 3. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, beginning at least 90 days after the date this act shall have
become a law and shall apply to sales made on or after such date.
PART JJ
Section 1. Section 498 of the tax law is amended by adding a new
subdivision (h) to read as follows:
(H) ALL TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER UNDER THIS SECTION SHALL BE DEPOSITED AND DISPOSED OF
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS
CHAPTER, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
UNDER THIS SECTION LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE
RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
BY THE COMPTROLLER TO THE CREDIT OF THE NEW YORK STATE DRUG TREATMENT
AND PUBLIC EDUCATION FUND CREATED IN SECTION NINETY-NINE-JJ OF THE STATE
FINANCE LAW.
§ 2. This act shall take effect immediately.
PART KK
Section 1. Section 210-B of the tax law is amended by adding a new
subdivision 63 to read as follows:
63. CREDIT FOR FOOD SERVICE ESTABLISHMENT DONATIONS TO FOOD PANTRIES.
(A) ALLOWANCE OF CREDIT. IN THE CASE OF A TAXPAYER THAT IS A FOOD
SERVICE ESTABLISHMENT, THERE SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
AS HEREINAFTER PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWEN-
TY-SEVEN. THE AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE
MARKETED VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS UP TO SEVEN DOLLARS
PER QUALIFIED DONATION MADE TO ANY ELIGIBLE COMMUNITY-BASED ORGANIZATION
S. 9009--B 107
DURING THE TAXABLE YEAR, NOT TO EXCEED TEN THOUSAND DOLLARS TOTAL PER
TAXABLE YEAR.
(B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(I) "FOOD SERVICE ESTABLISHMENT" MEANS A TAXPAYER WHOSE FEDERAL GROSS
INCOME FROM PREPARED FOOD SALES FOR THE TAXABLE YEAR IS AT LEAST HALF OF
SUCH TAXPAYER'S FEDERAL GROSS INCOME. SUCH TAXPAYER MAY BE A CORPO-
RATION, PARTNERSHIP, OR INDIVIDUAL.
(II) "QUALIFIED DONATION" MEANS A DONATION OF A PREPARED MEAL ADHERING
TO THE STANDARDS OF THE MOST RECENT EDITION OF THE DIETARY GUIDELINES
FOR AMERICANS REQUIRED BY 7 U.S.C. § 5341. A QUALIFIED DONATION SHALL
NOT BE TRANSFERRED BY THE ELIGIBLE FOOD SERVICE ESTABLISHMENT TO THE
ELIGIBLE COMMUNITY-BASED ORGANIZATION IN EXCHANGE FOR MONEY, OTHER PROP-
ERTY, OR SERVICES.
(III) "ELIGIBLE COMMUNITY-BASED ORGANIZATION" MEANS ANY PROGRAM OPER-
ATING WITHIN THIS STATE THAT ACCEPTS OR DISTRIBUTES PREPARED MEALS AND
HAS QUALIFIED FOR TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL
REVENUE CODE.
(IV) "MARKETED VALUE" MEANS THE COST OF A PREPARED MEAL OFFERED FOR
SALE TO THE PUBLIC.
(C) RECORD OF DONATION. (I) TO CLAIM A CREDIT UNDER THIS SUBDIVISION,
A TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE COMMUNITY-BASED
ORGANIZATION SHOWING: (1) THE NAME OF THE ELIGIBLE COMMUNITY-BASED
ORGANIZATION; (2) THE DATE AND LOCATION OF THE QUALIFIED DONATION; AND
(3) A REASONABLY DETAILED DESCRIPTION OF THE QUALIFIED DONATION.
(II) A LETTER OR OTHER WRITTEN COMMUNICATION FROM THE ELIGIBLE COMMU-
NITY-BASED ORGANIZATION ACKNOWLEDGING RECEIPT OF THE CONTRIBUTION AND
CONTAINING THE INFORMATION IN CLAUSES ONE, TWO, AND THREE OF SUBPARA-
GRAPH (I) OF THIS PARAGRAPH SHALL SERVE AS A RECEIPT.
(D) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(E) AUTHORITY TO ISSUE TAX CREDIT. ANY CITY IN THIS STATE HAVING A
POPULATION OF ONE MILLION OR MORE INHABITANTS, ACTING THROUGH ITS LOCAL
LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND
LOCAL LAWS AND RULES OFFERING A TAX CREDIT ACCORDING TO THE PROVISIONS
IN THIS SECTION FOR THE CITY PERSONAL INCOME TAX UNDER ARTICLE THIRTY OF
THIS CHAPTER.
§ 2. This act shall take effect immediately.
PART LL
Section 1. Paragraph (a) of subdivision 52 of section 210-B of the tax
law, as added by section 4 of part DDD of chapter 59 of the laws of
2017, is amended to read as follows:
(a) General. In the case of a taxpayer that is an eligible farmer,
there shall be allowed a credit, to be computed as hereinafter provided
S. 9009--B 108
against the tax imposed by this article for taxable years beginning on
and after January first, two thousand eighteen. The amount of the credit
shall be twenty-five percent of the fair market value of the taxpayer's
qualified donations made to any eligible food pantry during the taxable
year, not to exceed five thousand dollars per taxable year FOR TAXABLE
YEARS ENDING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND FOR
TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWEN-
TY-SEVEN, THE AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE FAIR
MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS MADE TO ANY ELIGIBLE
FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED TEN THOUSAND DOLLARS
PER TAXABLE YEAR. If the taxpayer is a partner in a partnership, then
the cap imposed by the preceding sentence shall be applied at the entity
level, so that the aggregate credit allowed to all partners of such
entity in the taxable year does not exceed five thousand dollars FOR
TAXABLE YEARS ENDING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN,
AND TEN THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SEVEN.
§ 2. Paragraph 1 of subsection (n-2) of section 606 of the tax law, as
added by section 1 of part DDD of chapter 59 of the laws of 2017, is
amended to read as follows:
(1) General. In the case of a taxpayer who is an eligible farmer,
there shall be allowed a credit, to be computed as hereinafter provided,
against the tax imposed by this article for taxable years beginning on
and after January first, two thousand eighteen. The amount of the credit
shall be twenty-five percent of the fair market value of the taxpayer's
qualified donations made to any eligible food pantry during the taxable
year, not to exceed five thousand dollars per taxable year FOR TAXABLE
YEARS ENDING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND FOR
TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWEN-
TY-SEVEN, THE AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE FAIR
MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS MADE TO ANY ELIGIBLE
FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED TEN THOUSAND DOLLARS
PER TAXABLE YEAR. If the taxpayer is a partner in a partnership or a
shareholder of a New York S corporation, then the cap imposed by the
preceding sentence shall be applied at the entity level, so that the
aggregate credit allowed to all partners or shareholders of such entity
in the taxable year does not exceed five thousand dollars FOR TAXABLE
YEARS ENDING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND TEN
THOUSAND DOLLARS FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SEVEN.
§ 3. This act shall take effect immediately.
PART MM
Section 1. The tax law is amended by adding a new article 12-B to read
as follows:
ARTICLE 12-B
NOISE TAX ON NON-ESSENTIAL
HELICOPTER AND SEAPLANE FLIGHTS
SECTION 289-G. DEFINITIONS.
289-H. IMPOSITION OF THE NOISE TAX ON NON-ESSENTIAL HELICOPTER
AND SEAPLANE FLIGHTS.
289-I. LIABILITY FOR THE TAX.
289-J. EXEMPTIONS FROM THE TAX.
289-K. PAYMENT AND RETURNS.
289-L. RECORDS TO BE KEPT.
S. 9009--B 109
289-M. SECRECY OF RETURNS AND REPORTS.
289-N. PRACTICE AND PROCEDURE.
289-O. DEPOSIT AND DISPOSITION OF REVENUE.
§ 289-G. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "HELICOPTER" MEANS AN AIRCRAFT, THE SUPPORT OF WHICH IN THE AIR IS
NORMALLY DERIVED FROM AIRFOILS MECHANICALLY ROTATED ABOUT AN APPROXI-
MATELY VERTICAL AXIS.
2. "HELICOPTER OR SEAPLANE OPERATOR" MEANS A PERSON OR ENTITY WHICH
CONDUCTS NON-ESSENTIAL HELICOPTER OR SEAPLANE FLIGHTS WITHIN A CITY WITH
A POPULATION OF ONE MILLION OR MORE WITHIN NEW YORK STATE.
3. "SEAPLANE" MEANS ANY AIRCRAFT DEFINED OR CLASSIFIED AS SUCH BY
FEDERAL LAW, RULE OR REGULATION.
4. "NON-ESSENTIAL FLIGHT" MEANS A FLIGHT MADE BY A HELICOPTER OR SEAP-
LANE THAT ORIGINATES AND TERMINATES WITHIN NEW YORK STATE, WITH THE
ORIGINATION OR TERMINATION BEING WITHIN A CITY WITH A POPULATION OF ONE
MILLION OR MORE WITHIN NEW YORK STATE, OTHER THAN THOSE CONDUCTED:
(A) FOR PURPOSES OF HEAVY-LIFT OPERATIONS IN SUPPORT OF CONSTRUCTION
AND INFRASTRUCTURE MAINTENANCE;
(B) FOR PURPOSES OF PUBLIC HEALTH AND SAFETY, INCLUDING LAW ENFORCE-
MENT, EMERGENCY RESPONSE, DISASTER RESPONSE, THE PROVISION OF MEDICAL
SERVICES, AND PROVIDING OTHER SERVICES; OR
(C) FOR THE BENEFIT OF THE GENERAL PUBLIC, INCLUDING FLIGHTS CARRIED
OUT FOR RESEARCH OR FOR OFFICIAL PURPOSES BY A NEWS ORGANIZATION.
5. "QUIET AIRCRAFT" MEANS A HELICOPTER OR SEAPLANE OF A MODEL THAT HAS
BEEN CERTIFIED AS MEETING THE THRESHOLD TO BE CLASSIFIED AS A QUIET
AIRCRAFT AS PER SECTION TWO HUNDRED EIGHTY-NINE-J OF THIS ARTICLE.
§ 289-H. IMPOSITION OF THE NOISE TAX ON NON-ESSENTIAL HELICOPTER AND
SEAPLANE FLIGHTS. IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY
THIS CHAPTER OR ANY OTHER LAW, THERE IS HEREBY IMPOSED BEGINNING JANUARY
FIRST, TWO THOUSAND TWENTY-SEVEN A NOISE TAX ON NON-ESSENTIAL SEAPLANE
AND HELICOPTER FLIGHTS AT THE RATE OF FIFTY DOLLARS PER SEAT TICKET OR
TWO HUNDRED DOLLARS PER FLIGHT, WHICHEVER IS GREATER.
§ 289-I. LIABILITY FOR THE TAX. ANY NON-ESSENTIAL HELICOPTER OR SEAP-
LANE FLIGHT IS SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE. THE TAX
IMPOSED BY THIS SECTION SHALL NOT BE IMPOSED ON ANY HELICOPTER OR SEAP-
LANE FLIGHTS IF SUCH IMPOSITION IS SUPERSEDED BY FEDERAL LAW OR REGU-
LATION.
§ 289-J. EXEMPTIONS FROM THE TAX. 1. ANY NON-ESSENTIAL HELICOPTER OR
SEAPLANE FLIGHT CONDUCTED USING A QUIET AIRCRAFT IS EXEMPTED FROM THE
TAX IMPOSED BY SECTION TWO HUNDRED EIGHTY-NINE-H OF THIS ARTICLE.
2. THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF TRANSPORTA-
TION SHALL CREATE A REGISTRY OF MODELS OF HELICOPTERS AND SEAPLANES THAT
WILL BE DEFINED AS QUIET AIRCRAFT FOR THE PURPOSES OF THIS ARTICLE. SUCH
REGISTRY SHALL BE ESTABLISHED BY JANUARY FIRST, TWO THOUSAND TWENTY-
NINE, AND SHALL BE UPDATED NO LESS THAN EVERY TWO YEARS.
3. FOR A HELICOPTER OR SEAPLANE MODEL TO BE CONSIDERED TO BE A QUIET
AIRCRAFT, THE AIRCRAFT MUST BE ELECTRIC POWERED AND, (A) FOR HELICOP-
TERS, CREATE AT LEAST TEN DECIBELS LESS OF NOISE, AS MEASURED UNDER THE
PROCEDURES OF APPENDIX H OF 14 CFR PART 36, AS A HELICOPTER THAT WOULD
MEET THE GCNP QUIET AIRCRAFT TECHNOLOGY DESIGNATION ESTABLISHED BY 14
CFR APPENDIX A TO SUBPART U OF PART 93, OR ANY FEDERAL LIMITS ON NOISE
FROM HELICOPTERS ENACTED THAT ARE MORE STRICT THAN THE GCNP QUIET
AIRCRAFT TECHNOLOGY DESIGNATION AND (B) FOR SEAPLANES, CREATE AT LEAST
TEN DECIBELS LESS OF NOISE, AS MEASURED UNDER THE PROCEDURES OF APPENDIX
G OF 14 CFR PART 36, THAN A SEAPLANE WOULD MAKE TO COMPLY WITH THE STAGE
S. 9009--B 110
5 NOISE LEVELS ADOPTED UNDER 14 CFR PARTS 36 AND 91, WHICH ARE EQUAL TO
THE LEVELS ESTABLISHED UNDER INTERNATIONAL CIVIL AVIATION ORGANIZATION
(ICAO) CHAPTER 14 OF ANNEX 16, VOLUME I, OR ANY FEDERAL LIMITS ON NOISE
FROM SEAPLANES ENACTED THAT ARE MORE STRICT THAN THE STAGE 5 NOISE
LEVELS.
§ 289-K. PAYMENT AND RETURNS. 1. EVERY HELICOPTER AND SEAPLANE OPERA-
TOR SHALL FILE A RETURN QUARTERLY WITH THE COMMISSIONER. PROVIDED,
HOWEVER, THAT IF THE COMMISSIONER IN THE EXERCISE OF THEIR DISCRETION
DEEMS IT NECESSARY TO PROTECT THE REVENUES TO BE OBTAINED UNDER THIS
ARTICLE, SUCH COMMISSIONER MAY GIVE NOTICE REQUIRING SUCH OPERATOR, IN
ADDITION TO FILING A QUARTERLY RETURN, TO FILE EITHER SHORT-FORM OR
LONG-FORM PART-QUARTERLY RETURNS, AS SPECIFIED IN SUCH NOTICE. FOR
PURPOSES OF THIS ARTICLE THE TERM "LONG-FORM, PART-QUARTERLY RETURN"
SHALL MEAN A RETURN IN A FORM DETERMINED BY THE COMMISSIONER PROVIDING
FOR THE CALCULATION OF THE ACTUAL TAXES FOR THE PRECEDING MONTH. FOR
PURPOSES OF THIS ARTICLE THE TERM "SHORT-FORM, PART-QUARTERLY RETURN"
SHALL MEAN A RETURN WHICH SHALL BE AVAILABLE FOR USE IN FILING AS A
RETURN FOR THE FIRST TWO MONTHS OF ANY QUARTER AND ONLY BY A PERSON
REQUIRED TO FILE A RETURN MONTHLY WHO HAS HAD AT LEAST FOUR SUCCESSIVE
QUARTERLY TAX PERIODS IMMEDIATELY PRECEDING THE MONTH FOR WHICH THE
RETURN IS TO BE FILED AND WHO ELECTS SUCH USE, AND IS IN A FORM DETER-
MINED BY THE COMMISSIONER AND PROVIDING FOR THE CALCULATION OF ONE-THIRD
OF THE TOTAL TAXES PAID BY THE PERSON TO THE COMMISSIONER IN THE COMPA-
RABLE QUARTER OF THE IMMEDIATELY PRECEDING YEAR UNDER THIS ARTICLE.
2. THE RETURNS AND INFORMATION RETURNS REQUIRED BY THIS SECTION TO BE
FILED QUARTERLY SHALL BE FILED FOR QUARTERLY PERIODS ENDING ON THE LAST
DAY OF FEBRUARY, MAY, AUGUST AND NOVEMBER OF EACH YEAR, AND EACH RETURN
AND EACH INFORMATION RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE
END OF THE QUARTERLY PERIOD COVERED THEREBY. THE RETURNS REQUIRED BY
THIS SECTION TO BE FILED MONTHLY SHALL BE FILED FOR MONTHLY PERIODS
ENDING ON THE LAST DAY OF EACH MONTH AND EACH RETURN SHALL BE FILED
WITHIN TWENTY DAYS AFTER THE END OF EACH PRIOR MONTH. THE INFORMATION
RETURNS REQUIRED TO BE FILED ANNUALLY SHALL BE FILED FOR TWELVE-MONTH
PERIODS ENDING ON THE LAST DAY OF MAY OF EACH YEAR, AND EACH SUCH INFOR-
MATION RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE END OF THE
TWELVE-MONTH PERIOD COVERED THEREBY.
3. THE TAX COMMISSION MAY PERMIT OR REQUIRE RETURNS TO BE MADE COVER-
ING OTHER PERIODS AND UPON SUCH DATES AS IT MAY SPECIFY. IF THE TAX
COMMISSION DEEMS IT NECESSARY IN ORDER TO ENSURE THE PAYMENT OF THE
TAXES IMPOSED BY THIS ARTICLE, IT MAY REQUIRE RETURNS TO BE MADE FOR
SHORTER PERIODS THAN THOSE PRESCRIBED PURSUANT TO THE FOREGOING SUBDIVI-
SIONS OF THIS SECTION, AND UPON SUCH DATES AS IT MAY SPECIFY.
4. THE FORM OF RETURNS SHALL BE PRESCRIBED BY THE TAX COMMISSION AND
SHALL CONTAIN SUCH INFORMATION AS IT MAY DEEM NECESSARY FOR THE PROPER
ADMINISTRATION OF THIS ARTICLE. THE COMMISSION MAY REQUIRE AMENDED
RETURNS TO BE FILED WITHIN TWENTY DAYS AFTER NOTICE AND TO CONTAIN THE
INFORMATION SPECIFIED IN THE NOTICE.
5. IN ADDITION TO ANY OTHER PENALTY OR INTEREST PROVIDED FOR UNDER
THIS ARTICLE OR OTHER LAW, AND UNLESS IT IS SHOWN THAT SUCH FAILURE IS
DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, ANY PERSON
LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE THAT FAILS TO PAY SUCH TAX
WHEN DUE SHALL BE LIABLE FOR A PENALTY IN AN AMOUNT EQUAL TO FOUR
HUNDRED PERCENT OF THE TOTAL TAX AMOUNT THAT IS DUE.
§ 289-L. RECORDS TO BE KEPT. EVERY OPERATOR LIABLE FOR THE SURCHARGE
IMPOSED BY THIS ARTICLE SHALL KEEP, AND SHALL MAKE AVAILABLE FOR REVIEW
UPON DEMAND BY THE COMMISSIONER:
S. 9009--B 111
1. RECORDS OF HELICOPTER AND SEAPLANE FLIGHTS UNDERTAKEN BY SUCH OPER-
ATOR;
2. TOTAL AMOUNT OF TAXES COLLECTED UNDER THIS ARTICLE;
3. ANY INFORMATION REQUIRED BY THE DEPARTMENT BY RULE OR REGULATION;
4. TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY ANY
APPLICABLE REGULATORY DEPARTMENT OR AGENCY; AND
5. SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
TO PERFORM THEIR DUTIES UNDER THIS ARTICLE.
§ 289-M. SECRECY OF RETURNS AND REPORTS. 1. EXCEPT IN ACCORDANCE WITH
PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE
UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF
THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER PURSUANT
TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS
SET FORTH OR DISCLOSED IN ANY SUCH RETURN OR REPORT. THE OFFICERS
CHARGED WITH THE CUSTODY OF SUCH RETURNS AND REPORTS SHALL NOT BE
REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE
COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS
CHAPTER, OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION
OF A SURCHARGE DUE UNDER THIS CHAPTER TO WHICH THE STATE, THE COMMIS-
SIONER OR AN AGENCY THAT IS AUTHORIZED TO PERMIT OR REGULATE THE
PROVISION OF ANY RELEVANT TRANSPORTATION IS A PARTY OR A CLAIMANT, OR ON
BEHALF OF ANY PARTY TO ANY ACTION, PROCEEDING OR HEARING UNDER THE
PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS
SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION, PROCEEDING OR HEAR-
ING, IN ANY OF WHICH EVENTS THE COURT, OR IN THE CASE OF A HEARING, THE
DIVISION OF TAX APPEALS, MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN
EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
BY AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING
HEREIN SHALL BE CONSTRUED, HOWEVER, TO PROHIBIT THE COMMISSIONER, IN
THEIR DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTI-
FIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM
PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR
TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE COMPTROLLER; NOR TO
PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR
REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION
CONTAINED THEREIN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE BEEN RECOMMENDED OR
COMMENCED PURSUANT TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR
THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED; NOR TO PROHIBIT THE
COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS
ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
EFROM; NOR TO PROHIBIT THE DELIVERY TO A PERSON LIABLE FOR THE TAX
IMPOSED BY THIS ARTICLE, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH, A
CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO
THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSI-
FIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS
AND THE ITEMS THEREOF; NOR TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS
THE COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE
IDENTIFYING INFORMATION OF THOSE PERSONS REQUIRED TO PAY THE TAX IMPOSED
BY THIS ARTICLE.
2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED
S. 9009--B 112
STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR
MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE
AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION
CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY
INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL
BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE UNITED
STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER OR
OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF THE TAX IMPOSED
BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR PURPOSES
OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER THE COMMISSIONER MAY
FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR SUCH COMMISSIONER'S
AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER THIS ARTICLE AND
OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSIDER PROPER, FOR USE
IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL REVENUE CODE, WHETHER
CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THEREFOR HAS BEEN MADE TO THE
COMMISSIONER BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR
SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS OF THE UNITED STATES GRANT
SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF THE TREASURY OF THE
UNITED STATES OR THEIR DELEGATE. WHERE THE COMMISSIONER HAS SO AUTHOR-
IZED USE OF RETURNS AND OTHER INFORMATION IN SUCH ACTIONS OR
PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT MAY TESTIFY IN
SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR OTHER INFORMA-
TION.
3. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL BE DISMISSED FROM
OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD OF
FIVE YEARS THEREAFTER.
(B) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
OF THIS CHAPTER.
4. (A) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS
SECTION, UPON WRITTEN REQUEST FROM THE CHAIRPERSON OF THE COMMITTEE ON
WAYS AND MEANS OF THE UNITED STATES HOUSE OF REPRESENTATIVES, THE CHAIR-
PERSON OF THE COMMITTEE ON FINANCE OF THE UNITED STATES SENATE, OR THE
CHAIRPERSON OF THE JOINT COMMITTEE ON TAXATION OF THE UNITED STATES
CONGRESS, THE COMMISSIONER SHALL FURNISH SUCH COMMITTEE WITH ANY CURRENT
OR PRIOR YEAR RETURNS SPECIFIED IN SUCH REQUEST THAT WERE FILED UNDER
THIS ARTICLE BY THE PRESIDENT OF THE UNITED STATES, VICE-PRESIDENT OF
THE UNITED STATES, MEMBER OF THE UNITED STATES CONGRESS REPRESENTING NEW
YORK STATE, OR ANY PERSON WHO SERVED IN OR WAS EMPLOYED BY THE EXECUTIVE
BRANCH OF THE GOVERNMENT OF THE UNITED STATES ON THE EXECUTIVE STAFF OF
THE PRESIDENT, IN THE EXECUTIVE OFFICE OF THE PRESIDENT, OR IN AN ACTING
OR CONFIRMED CAPACITY IN A POSITION SUBJECT TO CONFIRMATION BY THE
UNITED STATES SENATE; OR, IN NEW YORK STATE: A STATEWIDE ELECTED OFFI-
CIAL, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SEVEN-
TY-THREE-A OF THE PUBLIC OFFICERS LAW; A STATE OFFICER OR EMPLOYEE, AS
DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH (C) OF SUBDIVISION ONE OF SUCH
SECTION SEVENTY-THREE-A; A POLITICAL PARTY CHAIRPERSON, AS DEFINED IN
PARAGRAPH (H) OF SUBDIVISION ONE OF SUCH SECTION SEVENTY-THREE-A; A
LOCAL ELECTED OFFICIAL, AS DEFINED IN SUBDIVISIONS ONE AND TWO OF
SECTION EIGHT HUNDRED TEN OF THE GENERAL MUNICIPAL LAW; A PERSON
APPOINTED, PURSUANT TO LAW, TO SERVE DUE TO VACANCY OR OTHERWISE IN THE
POSITION OF A LOCAL ELECTED OFFICIAL, AS DEFINED IN SUBDIVISIONS ONE AND
TWO OF SECTION EIGHT HUNDRED TEN OF THE GENERAL MUNICIPAL LAW; A MEMBER
OF THE STATE LEGISLATURE; OR A JUDGE OR JUSTICE OF THE UNIFIED COURT
SYSTEM; OR FILED BY A PARTNERSHIP, FIRM, ASSOCIATION, CORPORATION,
S. 9009--B 113
JOINT-STOCK COMPANY, TRUST OR SIMILAR ENTITY DIRECTLY OR INDIRECTLY
CONTROLLED BY ANY INDIVIDUAL LISTED IN THIS PARAGRAPH, WHETHER BY
CONTRACT, THROUGH OWNERSHIP OR CONTROL OF A MAJORITY INTEREST IN SUCH
ENTITY, OR OTHERWISE, OR FILED BY A PARTNERSHIP, FIRM, ASSOCIATION,
CORPORATION, JOINT-STOCK COMPANY, TRUST OR SIMILAR ENTITY OF WHICH ANY
INDIVIDUAL LISTED IN THIS PARAGRAPH HOLDS TEN PERCENT OR MORE OF THE
VOTING SECURITIES OF SUCH ENTITY; PROVIDED HOWEVER THAT, PRIOR TO
FURNISHING ANY RETURN, THE COMMISSIONER SHALL REDACT ANY COPY OF A
FEDERAL RETURN (OR PORTION THEREOF) ATTACHED TO, OR ANY INFORMATION ON A
FEDERAL RETURN THAT IS REFLECTED ON, SUCH RETURN, AND ANY SOCIAL SECURI-
TY NUMBERS, ACCOUNT NUMBERS AND RESIDENTIAL ADDRESS INFORMATION.
(B) NO RETURNS SHALL BE FURNISHED PURSUANT TO THIS SUBDIVISION UNLESS
THE CHAIRPERSON OF THE REQUESTING COMMITTEE CERTIFIES IN WRITING THAT
SUCH RETURNS HAVE BEEN REQUESTED RELATED TO, AND IN FURTHERANCE OF, A
LEGITIMATE TASK OF THE CONGRESS, THAT THE REQUESTING COMMITTEE HAS MADE
A WRITTEN REQUEST TO THE UNITED STATES SECRETARY OF THE TREASURY FOR
RELATED FEDERAL RETURNS OR REPORTS OR RETURN OR REPORT INFORMATION,
PURSUANT TO 26 U.S.C. SECTION 6103(F), AND THAT IF SUCH REQUESTED
RETURNS ARE INSPECTED BY AND/OR SUBMITTED TO ANOTHER COMMITTEE, TO THE
UNITED STATES HOUSE OF REPRESENTATIVES, OR TO THE UNITED STATES SENATE,
THEN SUCH INSPECTION AND/OR SUBMISSION SHALL OCCUR IN A MANNER CONSIST-
ENT WITH FEDERAL LAW AS INFORMED BY THE REQUIREMENTS AND PROCEDURES
ESTABLISHED IN 26 U.S.C. SECTION 6103(F).
§ 289-N. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEV-
EN OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF AND
PROCEDURE WITH RESPECT TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME
MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH
ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND
HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT
TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A
PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
§ 289-O. DEPOSIT AND DISPOSITION OF REVENUE. ALL FUNDS COLLECTED UNDER
THIS ARTICLE SHALL BE DEPOSITED INTO THE ENVIRONMENTAL PROTECTION FUND
ESTABLISHED BY SECTION NINETY-TWO-S OF THE STATE FINANCE LAW.
§ 2. This act shall take effect immediately.
PART NN
Section 1. Subdivision a of section 1613 of the tax law, as amended by
chapter 426 of the laws of 2006, is amended to read as follows:
a. It shall be the duty of the director to require that all prizes
over five thousand dollars in any game be awarded to holders of winning
tickets for that game as provided in this section and section sixteen
hundred fourteen of this article. Within one week after any drawing or
selection of prize winning lottery tickets, the division shall deliver
to the comptroller a certified list of the tickets to which prizes are
awarded and the amount of each such prize. Upon receipt of such certi-
fied list and voucher of the division, moneys sufficient for the payment
of such prizes shall be paid to the division from the lottery prize
account, upon audit and warrant of the comptroller. Moneys for the
payment of lottery prizes shall be deposited by the director as provided
in section sixteen hundred eleven of this article and the withdrawal of
such moneys for the payment of prize winners shall be subject to a check
signed by the director or such officers or employees of the division as
the director may designate. The division shall each month provide the
comptroller with a record of all such withdrawals from the director's
S. 9009--B 114
accounts. Payment of prizes shall be made by the division to holders of
the tickets to which prizes are awarded, except that payment of any
prize drawn may be paid to the estate of a deceased prize winner, may be
paid pursuant to a court order granted as a result of a proceeding as
provided in subdivision d of this section, and except that any person
pursuant to an appropriate judicial order may be paid the prize to which
the winner is entitled. THE DIVISION SHALL NOT PUBLICLY DISCLOSE THE
NAME, ADDRESS OR OTHER IDENTIFYING INFORMATION OF ANY HOLDER OF A
WINNING TICKET OR REQUIRE ANY WINNING TICKET HOLDER TO PERFORM ANY
PUBLIC ACTIONS IN CONNECTION WITH THE AWARDING, PAYMENT OR COLLECTION OF
PRIZE MONEYS UNLESS A HOLDER OF A WINNING TICKET GIVES CONSENT TO THE
DIVISION TO DO SO. The division shall be discharged of all further
liability upon payment of a prize pursuant to this subdivision.
§ 2. This act shall take effect immediately.
PART OO
Section 1. Paragraph 27 of subdivision (a) of section 1115 of the tax
law, as amended by chapter 147 of the laws of 1995, is amended to read
as follows:
(27) Precious metal bullion sold for investment, provided that (i) the
retailer, if so required, is registered pursuant to section three
hundred fifty-nine-e of the general business law, and (ii) THE PRECIOUS
METAL BULLION IS BEING SOLD OR BOUGHT BY A CENTRAL BANK, A FOREIGN
GOVERNMENT, THE UNITED NATIONS, THE UNITED STATES OF AMERICA OR ANY OF
THE SEVERAL STATES OR TERRITORIES THEREOF, OR ANY OF THEIR INSTRUMENTAL-
ITIES, AGENCIES OR POLITICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION,
INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AN INTERSTATE
COMPACT, INTERNATIONAL TREATY, OR INTERNATIONAL AGREEMENT), AND (III)
the receipt or consideration given or contracted to be given for such
bullion depends only on the value of the metal content of such bullion.
"Precious metal bullion" means bars, ingots or coins of gold, silver,
platinum, palladium, rhodium, ruthenium or iridium, but shall not
include bars, ingots or coins which have been manufactured, processed,
assembled, fabricated or used for an industrial, professional, esthetic
or artistic purpose. Precious metal bullion shall be deemed to be sold
for investment when it is sold for more than one thousand dollars and
the purchaser or user or agent of either of them holds it in the same
form as when it was purchased and does not manufacture, process, assem-
ble or fabricate such bullion for its own use. For purposes of this
paragraph, the receipt or consideration given or contracted to be given
shall be deemed to depend only on the value of the metal content if, at
the time of sale or purchase at retail, such receipt or consideration
does not exceed (i) one hundred forty percent, with respect to silver
coins, or (ii) one hundred twenty percent, with respect to gold coins
weighing one-quarter of an ounce or less, or (iii) one hundred fifteen
percent, with respect to other coins, of the greater of (A) the daily
closing bullion cash price of such metal in the open market or (B) the
coins' face value at prevailing rates of exchange, or (iv), with respect
to bars and ingots, one hundred fifteen percent of such bullion cash
price of such metal. Where there is no such closing price for such
metal, the average of the bid and asked cash prices shall be substituted
for such closing price.
§ 2. This act shall take effect on the first day of the quarterly
sales tax period as set forth in subdivision (b) of section 1136 of the
tax law next succeeding the thirtieth day after it shall have become a
S. 9009--B 115
law; provided, however, that the commissioner of taxation and finance
may take any action with respect to the adoption, amendment, suspension
or repeal of any rule or regulation relating to this act, and may estab-
lish any procedure necessary for the timely implementation of this act
on or before the date on which it shall have become a law.
PART PP
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 28 to read as follows:
(28) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, WITH RESPECT TO SUCH EXCLUSION THE
AMOUNT OF THE DEDUCTION ALLOWABLE UNDER SECTION 1202 OF THE INTERNAL
REVENUE CODE AS AMENDED BY PUB. L. 119-21, TITLE VII.
§ 2. Paragraph (a) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 24 to read as follows:
(24) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, DETERMINED AS IF SUCH SECTION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
(44) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, WITH RESPECT TO SUCH EXCLUSION THE
AMOUNT OF THE DEDUCTION ALLOWABLE UNDER SECTION 1202 OF THE INTERNAL
REVENUE CODE AS AMENDED BY PUB. L. 119-21, TITLE VII.
§ 4. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 48 to read as follows:
(48) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, DETERMINED AS IF SUCH SECTION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR.
§ 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (AA) to read as follows:
(AA) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, WITH RESPECT TO SUCH EXCLUSION THE
AMOUNT OF THE DEDUCTION ALLOWABLE UNDER SECTION 1202 OF THE INTERNAL
REVENUE CODE AS AMENDED BY PUB. L. 119-21, TITLE VII.
§ 6. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (X) to read as follows:
(X) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-FIVE, THE AMOUNT OF ANY GAIN EXCLUDED PURSUANT TO SECTION
1202 OF THE INTERNAL REVENUE CODE, DETERMINED AS IF SUCH SECTION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR.
§ 7. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2025.
PART QQ
Section 1. Section 1203 of the tax law is amended by adding a new
subdivision d to read as follows:
D. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL
GOVERNING BODY OF THE CITY OF ALBANY, BY THE ADOPTION OF LOCAL LAWS,
S. 9009--B 116
ORDINANCES OR RESOLUTIONS MAY IMPOSE IN SUCH CITY THE TAX OTHERWISE
AUTHORIZED UNDER SUBDIVISION (B) OF SECTION TWELVE HUNDRED ONE OF THIS
SUBPART: (I) AT A RATE NOT TO EXCEED ONE PERCENT OF SUCH CONSIDERATION
OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS LESS THAN ONE MILLION
DOLLARS ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN; AND
(II) AT A RATE NOT TO EXCEED TWO PERCENT OF SUCH CONSIDERATION OR VALUE
WHERE SUCH CONSIDERATION OR VALUE IS MORE THAN ONE MILLION DOLLARS ON
EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN, SUCH TAXES TO BE
ADMINISTERED AND COLLECTED IN THE MANNER PROVIDED FOR IN SUBPART A OF
PART THREE OF THIS ARTICLE.
§ 2. This act shall take effect immediately.
PART RR
Section 1. Subsection (b) of section 870 of the tax law, as added by
section 1 of subpart B of part MM of chapter 59 of the laws of 2022, is
amended to read as follows:
(b) Limitation on credit. The aggregate amount of credits claimed by
all partners, members or shareholders of an electing city partnership or
an electing city resident S corporation pursuant to subsection (a) of
this section shall not exceed SEVENTY-FIVE PERCENT OF the tax due under
section eight hundred sixty-nine of this article from such electing city
partnership or electing city resident S corporation for the taxable
year.
§ 2. Paragraphs 2 and 5 of subsection (g) of section 1310 of the tax
law, as added by section 3 of subpart B of part MM of chapter 59 of the
laws of 2022, are amended to read as follows:
(2) The amount of the credit shall be equal to SEVENTY-FIVE PERCENT OF
the partner's, member's or shareholder's direct share of the city pass-
through entity tax.
(5) Limitation on credit. No credit shall be allowed to a taxpayer
under this subsection unless the electing city partnership or electing
city resident S corporation provided sufficient information to identify
such taxpayer on its city pass-through entity tax return as required
under paragraph two of subsection (c) of section eight hundred seventy-
two of this chapter for an electing city partnership or paragraph two of
subsection (d) of section eight hundred seventy-two of this chapter for
an electing city resident S corporation. The credit allowed to a taxpay-
er under this subsection shall not exceed SEVENTY-FIVE PERCENT OF the
direct share of city pass-through entity tax reported by such electing
city partnership or electing city resident S corporation attributable to
such taxpayer on such electing city partnership or electing city resi-
dent S corporation's return filed pursuant to section eight hundred
seventy-two of this chapter.
§ 3. Paragraphs 2 and 5 of subdivision (g) of section 11-1706 of the
administrative code of the city of New York, as added by section 11 of
subpart B of part MM of chapter 59 of the laws of 2022, are amended to
read as follows:
(2) The amount of the credit shall be equal to SEVENTY-FIVE PERCENT OF
the partner's, member's or shareholder's direct share of the city pass-
through entity tax.
(5) Limitation on credit. No credit shall be allowed to a taxpayer
under this subdivision unless the electing city partnership or electing
city resident S corporation provided sufficient information to identify
such taxpayer on its city pass-through entity tax return as required
under paragraph two of subsection (c) of section eight hundred seventy-
S. 9009--B 117
two of the tax law for an electing city partnership or paragraph two of
subsection (d) of section eight hundred seventy-two of the tax law for
an electing city resident S corporation. The credit allowed to a taxpay-
er under this subdivision shall not exceed SEVENTY-FIVE PERCENT OF the
direct share of city pass-through entity tax reported by such electing
city partnership or electing city resident S corporation attributable to
such taxpayer on such electing city partnership's or such electing city
resident S corporation's return filed pursuant to section eight hundred
seventy-two of the tax law.
§ 4. This act shall take effect June 1, 2026.
PART SS
Section 1. Subdivision (a) of section 101 of section 2 of chapter 772
of the laws of 1966, relating to enabling any city having a population
of one million or more to raise tax revenue, is amended to read as
follows:
(a) General.--A tax at the rate of four percent is hereby imposed for
each taxable year, beginning with taxable years ending after January
first, nineteen hundred sixty-six, on the unincorporated business taxa-
ble income of every unincorporated business wholly or partly carried on
within the city, PROVIDED THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, FOR ANY PORTION OF SUCH UNINCOR-
PORATED BUSINESS TAXABLE INCOME GREATER THAN FIVE MILLION DOLLARS, SUCH
TAX FOR SUCH PORTION SHALL BE AT A RATE OF FOUR AND FOUR-TENTHS PERCENT.
This tax shall be in addition to any other taxes imposed.
§ 2. Subdivision (a) of section 11-503 of the administrative code of
the city of New York is amended to read as follows:
(a) General. A tax at the rate of four percent is hereby imposed for
each taxable year, beginning with taxable years ending after January
first, nineteen hundred sixty-six, on the unincorporated business taxa-
ble income of every unincorporated business wholly or partly carried on
within the city, PROVIDED THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, FOR ANY PORTION OF SUCH UNINCOR-
PORATED BUSINESS TAXABLE INCOME GREATER THAN FIVE MILLION DOLLARS, SUCH
TAX FOR SUCH PORTION SHALL BE AT A RATE OF FOUR AND FOUR-TENTHS PERCENT.
This tax shall be in addition to any other taxes imposed.
§ 3. Clauses 1 and 3 of subparagraph (a) of paragraph E of subdivision
1 of section 11-604 of the administrative code of the city of New York,
as amended by chapter 345 of the laws of 2023, are amended to read as
follows:
(1) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, [and] for taxable
years beginning after nineteen hundred eighty-six AND BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, at the rate of eight and eighty-five
one-hundredths per centum, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AT THE RATE OF TEN AND SIXTY-TWO
ONE-HUNDREDTHS PER CENTUM, of its entire net income or the portion of
such entire net income allocated within the city as hereinafter
provided, subject to any modification required by paragraphs (d) and (e)
of subdivision three of this section,
(3) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, [and] for taxable
years beginning after nineteen hundred eighty-six AND BEFORE JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, at the rate of eight and eighty-five
one-hundredths per centum, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
S. 9009--B 118
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AT THE RATE OF TEN AND SIXTY-TWO
ONE-HUNDREDTHS PER CENTUM, on thirty per centum of the taxpayer's entire
net income plus salaries and other compensation paid to the taxpayer's
elected or appointed officers and to every stockholder owning in excess
of five per centum of its issued capital stock minus fifteen thousand
dollars (subject to proration as hereinafter provided) and any net loss
for the reported year, or on the portion of any such sum allocated with-
in the city as hereinafter provided for the allocation of entire net
income, subject to any modification required by paragraphs (d) and (e)
of subdivision three of this section, provided, however, that for taxa-
ble years beginning on or after July first, nineteen hundred ninety-six,
the provisions of paragraph H of this subdivision shall apply for
purposes of the computation under this clause, or
§ 4. The opening paragraph of subparagraph 2 of paragraph (a) of
subdivision 18 of section 11-604 of the administrative code of the city
of New York, as amended by chapter 128 of the laws of 1996, is amended
to read as follows:
The amount determined in this subparagraph is the product of (A) the
excess of (i) the tax computed under clause one of subparagraph (a) of
paragraph E of subdivision one of this section, without allowance of any
credits allowed by this section, over (ii) the tax so computed, deter-
mined as if the corporation had no such distributive share or guaranteed
payments with respect to the unincorporated business, and (B) a frac-
tion, the numerator of which is four and the denominator of which is
eight and eighty-five one hundredths, provided, however, THAT FOR A
TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN AND SIXTY-TWO ONE-HUN-
DREDTHS, AND PROVIDED FURTHER that the amounts computed in clauses (i)
and (ii) of this subparagraph shall be computed with the following
modifications:
§ 5. Subparagraph 1 of paragraph (b) of subdivision 18 of section
11-604 of the administrative code of the city of New York, as amended by
chapter 128 of the laws of 1996, is amended to read as follows:
(1) Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, in the case of a corporation that, before the application
of this subdivision or any other credit allowed by this section, is
liable for the tax on entire net income under clause one of subparagraph
(a) of paragraph E of subdivision one of this section, the credit or the
sum of the credits that may be taken by such corporation for a taxable
year under this subdivision with respect to an unincorporated business
or unincorporated businesses in which it is a partner shall not exceed
the tax so computed, without allowance of any credits allowed by this
section, multiplied by a fraction the numerator of which is four and the
denominator of which is eight and eighty-five one hundredths, PROVIDED,
HOWEVER, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN AND
SIXTY-TWO ONE-HUNDREDTHS. If the credit allowed under this subdivision
or the sum of such credits exceeds the product of such tax and such
fraction, the amount of the excess may be carried forward, in order, to
each of the seven immediately succeeding taxable years and, to the
extent not previously taken, shall be allowed as a credit in each of
such years. In applying the provisions of the preceding sentence, the
credit determined for the taxable year under paragraph (a) of this
subdivision shall be taken before taking any credit carryforward pursu-
ant to this paragraph and the credit carryforward attributable to the
S. 9009--B 119
earliest taxable year shall be taken before taking a credit carryforward
attributable to a subsequent taxable year.
§ 6. Subdivision (a) of section 11-643.5 of the administrative code of
the city of New York, as added by local law number 37 of the city of New
York for the year 1986, is amended to read as follows:
(a) Basic tax. Nine percent of the taxpayer's entire net income, or
the portion thereof allocated to the city, for the taxable year or part
thereof, PROVIDED THAT, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, OR PART THEREOF, SUCH BASIC TAX SHALL BE
EQUAL TO TEN AND EIGHT-TENTHS PERCENT OF THE TAXPAYER'S ENTIRE NET
INCOME, OR THE PORTION THEREOF ALLOCATED TO THE CITY.
§ 7. The opening paragraph of paragraph 2 of subdivision (a) of
section 11-643.8 of the administrative code of the city of New York, as
amended by chapter 128 of the laws of 1996, is amended to read as
follows:
The amount determined in this paragraph is the product of (A) the
excess of (i) the basic tax computed pursuant to subdivision (a) of
section 11-643.5 of this part, without allowance of any credits allowed
by this part, over (ii) the basic tax so computed, determined as if the
banking corporation had no such distributive share or guaranteed
payments with respect to the unincorporated business, and (B) a frac-
tion, the numerator of which is four and the denominator of which is
nine, provided, however, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL
TO TEN AND EIGHT-TENTHS, AND PROVIDED FURTHER that the amounts computed
in clauses (i) and (ii) of this paragraph shall be computed with the
following modifications:
§ 8. Paragraph 1 of subdivision (b) of section 11-643.8 of the admin-
istrative code of the city of New York, as amended by chapter 128 of the
laws of 1996, is amended to read as follows:
(1) Notwithstanding anything to the contrary in subdivision (a) of
this section, in the case of a banking corporation that, before the
application of this section or any other credit allowed by this part, is
liable for the basic tax computed under subdivision (a) of section
11-643.5 of this part, the credit or the sum of the credits that may be
taken by such banking corporation for a taxable year under this section
with respect to an unincorporated business or unincorporated businesses
in which it is a partner shall not exceed the tax so computed, without
allowance of any credits allowed by this part, multiplied by a fraction
the numerator of which is four and the denominator of which is nine,
PROVIDED, HOWEVER, THAT FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN
AND EIGHT-TENTHS. If the credit allowed under this subdivision or the
sum of such credits exceeds the product of such tax and such fraction,
the amount of the excess may be carried forward, in order, to each of
the seven immediately succeeding taxable years and, to the extent not
previously taken, shall be allowed as a credit in each of such years. In
applying the provisions of the preceding sentence, the credit determined
for the taxable year under subdivision (a) of this section shall be
taken before taking any credit carryforward pursuant to this paragraph
and the credit carryforward attributable to the earliest taxable year
shall be taken before taking a credit carryforward attributable to a
subsequent taxable year.
§ 9. Clause (i) of subparagraph 1 of paragraph (e) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
S. 9009--B 120
added by section 1 of part D of chapter 60 of the laws of 2015, is
amended to read as follows:
(i) an amount computed on its business income or the portion of such
business income allocated within the city as hereinafter provided,
subject to the application of paragraphs (j) and (k) of this subdivision
and any modification required by paragraphs (d) and (e) of subdivision
three of this section, at the rate of (1) FOR A TAXABLE YEAR BEGINNING
BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, nine per centum for
financial corporations, as defined in this clause, AND FOR A TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, TEN
AND EIGHT-TENTHS PER CENTUM FOR FINANCIAL CORPORATIONS, or (2) FOR A
TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
eight and eighty-five one hundredths per centum for all other corpo-
rations, AND FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, TEN AND SIXTY-TWO ONE-HUNDREDTHS PER CENTUM FOR ALL
OTHER CORPORATIONS. For purposes of this clause, "financial corporation"
means a corporation or, if the corporation is included in a combined
group, a combined group, that (A) has total assets reflected on its
balance sheet at the end of its taxable year in excess of one hundred
billion dollars, computed under generally accepted accounting principles
and (B)(I) allocates more than fifty percent of the receipts included in
the denominator of its receipts fraction, determined under section
11-654.2 of this subchapter, pursuant to subdivision five of section
11-654.2 of this subchapter for its taxable year, or (II) is itself or
is included in a combined group in which more than fifty percent of the
total assets reflected on its balance sheet at the end of its taxable
year are held by one or more corporations that are classified as (a)
registered under state law as a bank holding company or registered under
the Federal Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.,
as amended), or registered as a savings and loan holding company under
the Federal National Housing Act (12 U.S.C. 1701, as amended), (b) a
national bank organized and existing as a national bank association
pursuant to the provisions of the National Bank Act, 12 U.S.C. 21 et.
seq., (c) a savings association or federal savings bank as defined in
the Federal Deposit Insurance Act, 12 U.S.C. § 1813(b)(1), (d) a bank,
savings association, or thrift institution incorporated or organized
under the laws of any state, (e) a corporation organized under the
provisions of 12 U.S.C. §§ 611 to 631, (f) an agency or branch or a
foreign depository as defined in 12 U.S.C. § 3101, (g) a registered
securities or commodities broker or dealer registered as such by the
securities and exchange commission or the commodities futures trading
commission, which shall include an OTC derivatives dealer as defined
under regulations of the securities and exchange commission at title 17,
part 240, section 3b-12 of the code of federal regulations (17 CFR
240.3b-12), or (h) any corporation whose voting stock is more than fifty
percent owned, directly or indirectly, by any person or business entity
described in subitems (a) through (g) of this item, other than an insur-
ance company taxable under article thirty-three of the tax law; or
§ 10. Subparagraphs 2 and 3 of paragraph (j) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60 of the laws of 2015, are
amended to read as follows:
(2) Subject to subparagraph three of this paragraph, if the amount of
business income allocated within the city as hereinafter provided is one
million dollars or greater but less than one million five hundred thou-
sand dollars, the amount computed in clause (i) of subparagraph one of
S. 9009--B 121
paragraph (e) of this subdivision shall be at the rate of (i) six and
five-tenths per centum, plus (ii) [two and thirty-five one-hundredths
per centum] A GENERAL SCALING FACTOR multiplied by a fraction the numer-
ator of which is allocated business income less one million dollars and
the denominator of which is five hundred thousand dollars, of the amount
of business income allocated within the city as hereinafter provided,
subject to any modification required by paragraphs (d) and (e) of subdi-
vision three of this section;
(3) Provided, however, notwithstanding anything to the contrary, if
the amount of business income before allocation is two million dollars
or greater but less than three million dollars, the rate of tax provided
for in this paragraph shall not be less than (i) six and five-tenths per
centum, plus (ii) [two and thirty-five one-hundredths per centum] A
GENERAL SCALING FACTOR multiplied by a fraction the numerator of which
is business income before allocation less two million dollars and the
denominator of which is one million dollars, and provided, however,
notwithstanding anything to the contrary, if the amount of business
income before allocation is three million dollars or greater, the rate
of tax shall be eight and eighty-five one-hundredths percentum FOR A
TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
AND TEN AND SIXTY-TWO ONE-HUNDREDTHS PER CENTUM FOR A TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, or, in the
case of a financial corporation, as defined in clause (i) of subpara-
graph one of paragraph (e) of THIS subdivision [one of section 11-654],
if the amount of business income before allocation is three million
dollars or greater the rate of tax shall be nine per centum FOR A TAXA-
BLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, AND
TEN AND EIGHT-TENTHS PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX. FOR THE PURPOSES OF THIS SUBPAR-
AGRAPH AND SUBPARAGRAPH TWO OF THIS PARAGRAPH, THE TERM "GENERAL SCALING
FACTOR" MEANS A VALUE EQUAL TO TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER
CENTUM FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX, OR A VALUE EQUAL TO FOUR AND TWELVE ONE-HUNDREDTHS PER
CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX.
§ 11. Subparagraphs 2 and 3 of paragraph (k) of subdivision 1 of
section 11-654 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60 of the laws of 2015, are
amended to read as follows:
(2) Subject to subparagraph three of this paragraph for qualified New
York manufacturing corporations as defined in subparagraph four of this
paragraph, if the amount of business income allocated within the city as
hereinafter provided is ten million dollars or greater but less than
twenty million dollars, the amount computed in clause (i) of subpara-
graph one of paragraph (e) of this subdivision shall be at the rate of
(i) four and four hundred twenty-five one-thousandths per centum, plus
(ii) [four and four hundred twenty-five one-thousandths per centum] A
MANUFACTURING SCALING FACTOR multiplied by a fraction the numerator of
which is allocated business income less ten million dollars and the
denominator of which is ten million dollars, of its business income or
the portion of such business income allocated within the city as herein-
after provided, subject to any modification required by paragraphs (d)
and (e) of subdivision three of this section;
(3) Notwithstanding anything to the contrary, if the amount of busi-
ness income before allocation is twenty million dollars or greater but
less than forty million dollars, the rate of tax provided for in this
S. 9009--B 122
paragraph shall not be less than (i) four and four hundred twenty-five
one thousandths percentum, plus (ii) [four and four hundred twenty-five
one thousandths percentum] A MANUFACTURING SCALING FACTOR multiplied by
a fraction the numerator of which is business income before allocation
less twenty million dollars and the denominator of which is twenty
million dollars, and provided, however, notwithstanding anything to the
contrary, if the amount of business income before allocation is forty
million dollars or greater, the rate of tax shall be eight and eighty-
five one-hundredths per centum FOR A TAXABLE YEAR BEGINNING BEFORE JANU-
ARY FIRST, TWO THOUSAND TWENTY-SIX, AND TEN AND SIXTY-TWO ONE-HUNDREDTHS
PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX. FOR THE PURPOSES OF THIS SUBPARAGRAPH AND SUBPARA-
GRAPH TWO OF THIS PARAGRAPH, THE TERM "MANUFACTURING SCALING FACTOR"
MEANS A VALUE EQUAL TO FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUSANDTHS
PER CENTUM FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND TWENTY-SIX, OR A VALUE EQUAL TO SIX AND ONE HUNDRED NINETY-FIVE
ONE-THOUSANDTHS PER CENTUM FOR A TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
§ 12. The opening paragraph of subparagraph 2 of paragraph (a) of
subdivision 18 of section 11-654 of the administrative code of the city
of New York, as amended by section 12 of part P of chapter 60 of the
laws of 2016, is amended to read as follows:
The amount determined in this subparagraph is the product of (i) the
excess of (A) the tax computed under clause (i) of subparagraph one of
paragraph (e) of subdivision one of this section, without allowance of
any credits allowed by this section, over (B) the tax so computed,
determined as if the corporation had no such distributive share or guar-
anteed payments with respect to the unincorporated business, and (ii) a
fraction, the numerator of which is four and the denominator of which,
FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, is eight and eighty-five one hundredths, PROVIDED THAT, FOR A TAXA-
BLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
SUCH DENOMINATOR IS TEN AND SIXTY-TWO ONE-HUNDREDTHS, [except] AND
PROVIDED FURTHER that in the case of a financial corporation as defined
in clause (i) of subparagraph one of paragraph (e) of subdivision one of
this section, FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, such denominator is nine, AND FOR A TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX, SUCH
DENOMINATOR IS TEN AND EIGHT-TENTHS, and PROVIDED FURTHER THAT in the
case of a taxpayer that is subject to paragraph (j) or (k) of subdivi-
sion one of this section, such denominator shall be the rate of tax as
determined by such paragraph (j) or (k) for the taxable year; provided
that the amounts computed in subclauses (A) and (B) of clause (i) of
this subparagraph shall be computed with the following modifications:
§ 13. Subparagraph 1 of paragraph (b) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as amended by
section 13 of part P of chapter 60 of the laws of 2016, is amended to
read as follows:
(1) Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, in the case of a corporation that, before the application
of this subdivision or any other credit allowed by this section, is
liable for the tax on business income under clause (i) of subparagraph
one of paragraph (e) of subdivision one of this section, the credit or
the sum of the credits that may be taken by such corporation for a taxa-
ble year under this subdivision with respect to an unincorporated busi-
ness or unincorporated businesses in which it is a partner shall not
S. 9009--B 123
exceed the tax so computed, without allowance of any credits allowed by
this section, multiplied by a fraction the numerator of which is four
and the denominator of which is eight and eighty-five one-hundredths,
PROVIDED THAT, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-SIX, SUCH DENOMINATOR SHALL BE EQUAL TO TEN AND
SIXTY-TWO ONE-HUNDREDTHS, [except] AND PROVIDED FURTHER that in the case
of a financial corporation as defined in clause (i) of subparagraph one
of paragraph (e) of subdivision one of this section, such denominator,
FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-
SIX, is nine, AND, FOR A TAXABLE YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-SIX, IS TEN AND EIGHT-TENTHS, and PROVIDED
FURTHER THAT in the case of a taxpayer that is subject to paragraph (j)
or (k) of subdivision one of this section, such denominator shall be the
rate of tax as determined by such paragraph (j) or (k) for the taxable
year. If the credit allowed under this subdivision or the sum of such
credits exceeds the product of such tax and such fraction, the amount of
the excess may be carried forward, in order, to each of the seven imme-
diately succeeding taxable years and, to the extent not previously
taken, shall be allowed as a credit in each of such years. In applying
the provisions of the preceding sentence, the credit determined for the
taxable year under paragraph (a) of this subdivision shall be taken
before taking any credit carryforward pursuant to this paragraph and the
credit carryforward attributable to the earliest taxable year shall be
taken before taking a credit carryforward attributable to a subsequent
taxable year.
§ 14. The local legislative body of the city of New York is hereby
authorized and empowered to ratify and approve by local law the amend-
ments set forth in sections two through thirteen of this act, provided
that: (i) where such local legislative body ratifies and approves the
amendments set forth in section three, four, or five of this act, such
local legislative body shall ratify and approve the amendments set forth
in all of such sections three, four, and five of this act; (ii) where
such local legislative body ratifies and approves the amendments set
forth in section six, seven, or eight of this act, such local legisla-
tive body shall ratify and approve the amendments set forth in all of
such sections six, seven, and eight of this act; and (iii) where such
local legislative body ratifies and approves the amendments set forth in
section nine, ten, eleven, twelve, or thirteen of this act, such local
legislative body shall ratify and approve the amendments set forth in
all of such sections nine, ten, eleven, twelve, and thirteen of this
act.
§ 15. This act shall take effect immediately, except that sections two
through thirteen of this act shall take effect only upon enactment of a
local law of the city of New York as described in section fourteen of
this act and shall be deemed to have been in full force and effect as of
January 1, 2026 and apply to taxable years beginning on or after such
date, provided that, where the local legislative body of the city of New
York does not ratify and approve the amendments set forth in one or more
of such sections, the amendments set forth in such sections shall not
take effect. The city of New York shall notify the legislative bill
drafting commission upon enactment of such local law as described in
section fourteen of this act in order that the commission may maintain
an accurate and timely effective data base of the official text of the
laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of the
public officers law.
S. 9009--B 124
PART TT
Section 1. Short title. This act shall be known and may be cited as
the "New York city mansion tax act".
§ 2. Paragraph (i) of subdivision (b) of section 1201 of the tax law,
as amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(i) Taxes on each deed, other instrument or transaction (other than a
deed or instrument given solely as security or a transaction the sole
purpose of which is to secure an obligation or indebtedness) by which
any real property or any economic interest therein is conveyed or trans-
ferred, measured by the consideration or value of the interest or prop-
erty conveyed or transferred, (1) at a rate not to exceed one-half of
one percent of such consideration or value with respect to conveyances
made before July first, nineteen hundred seventy-one, or made in
performance of a contract therefor executed before such date, (2) at a
rate not to exceed one percent of such consideration or value with
respect to (A) all conveyances made on or after July first, nineteen
hundred seventy-one and before February first, nineteen hundred eighty-
two, or made in performance of a contract therefor executed during such
period, (B) conveyances or transfers made on or after February first,
nineteen hundred eighty-two of one, two or three-family houses, individ-
ual cooperative apartments and individual residential condominium units,
or interests therein, and (C) conveyances or transfers made on or after
February first, nineteen hundred eighty-two (other than grants, assign-
ments or surrenders of leasehold interests in real property) where the
consideration or value is less than five hundred thousand dollars, (3)
at a rate not to exceed two percent of such consideration or value with
respect to all other conveyances or transfers made on or after February
first, nineteen hundred eighty-two (other than grants, assignments or
surrenders of leasehold interests in real property) other than those
conveyances or transfers specified in subparagraphs four, five [and],
six AND SEVEN of this paragraph, (4) at a rate not to exceed one and
four hundred twenty-five thousandths of one percent of such consider-
ation or value where such consideration or value is less than five
hundred thousand dollars with respect to all conveyances or transfers
other than for conveyances or transfers of one, two or three family
houses, individual cooperative apartments, and individual residential
condominium units, or interests therein (other than grants, assignment
or surrenders of leasehold interests in real property), made on or after
August first, nineteen hundred eighty-nine, (5) at a rate not to exceed
one and four hundred twenty-five thousandths of one percent of such
consideration or value where such consideration or value is more than
five hundred thousand dollars with respect to conveyances or transfers
of one, two or three family houses, individual cooperative apartments,
and individual residential condominium units, or interests therein
(other than grants, assignments or surrenders of leasehold interests in
real property), made on or after August first, nineteen hundred eighty-
nine AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, [and] (6) at a rate
not to exceed two and six hundred twenty-five one thousandths of one
percent of such consideration or value where such consideration or value
is greater than five hundred thousand dollars with respect to all
conveyances or transfers other than for conveyances or transfers of one,
two or three family houses, individual cooperative apartments, and indi-
vidual residential condominium units, or interests therein (other than
grants, assignment or surrenders of leasehold interests in real proper-
S. 9009--B 125
ty), made on or after August first, nineteen hundred eighty-nine, AND
(7) WITH RESPECT TO CONVEYANCES OR TRANSFERS OF ONE, TWO OR THREE-FAMILY
HOUSES, INDIVIDUAL COOPERATIVE APARTMENTS, AND INDIVIDUAL RESIDENTIAL
CONDOMINIUM UNITS, OR INTERESTS THEREIN (OTHER THAN GRANTS, ASSIGNMENTS
OR SURRENDERS OF LEASEHOLD INTERESTS IN REAL PROPERTY), MADE ON OR AFTER
JUNE FIRST, TWO THOUSAND TWENTY-SIX, (A) AT A RATE NOT TO EXCEED ONE AND
FOUR HUNDRED TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION
OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN FIVE HUNDRED
THOUSAND DOLLARS BUT NOT GREATER THAN FIVE MILLION DOLLARS, (B) AT A
RATE NOT TO EXCEED THREE AND SIX HUNDRED SEVENTY-FIVE ONE THOUSANDTHS OF
ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE
IS GREATER THAN FIVE MILLION DOLLARS BUT NOT GREATER THAN TEN MILLION
DOLLARS, (C) AT A RATE NOT TO EXCEED FOUR AND SIX HUNDRED SEVENTY-FIVE
ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH
CONSIDERATION OR VALUE IS GREATER THAN TEN MILLION DOLLARS BUT NOT
GREATER THAN FIFTEEN MILLION DOLLARS, (D) AT A RATE NOT TO EXCEED FOUR
AND NINE HUNDRED TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDER-
ATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN FIFTEEN
MILLION DOLLARS BUT NOT GREATER THAN TWENTY MILLION DOLLARS, (E) AT A
RATE NOT TO EXCEED FIVE AND ONE HUNDRED SEVENTY-FIVE ONE THOUSANDTHS OF
ONE PERCENT OF CONSIDERATION OR VALUE WHERE SUCH CONSIDERATION OR VALUE
IS GREATER THAN TWENTY MILLION DOLLARS BUT NOT GREATER THAN TWENTY-FIVE
MILLION DOLLARS, AND (F) AT A RATE NOT TO EXCEED FIVE AND THREE HUNDRED
TWENTY-FIVE ONE THOUSANDTHS OF ONE PERCENT OF CONSIDERATION OR VALUE
WHERE SUCH CONSIDERATION OR VALUE IS GREATER THAN TWENTY-FIVE MILLION
DOLLARS. Provided, however, that any such city may allow deductions, in
determining the portion of any tax authorized hereby the proceeds of
which are payable to the New York city transit authority as hereinafter
provided, for any continuing liens on such interest or property where
such interest or property is a one, two or three-family house, an indi-
vidual cooperative apartment or an individual residential condominium
unit or where the consideration for or value of the interest or property
conveyed or transferred is less than five hundred thousand dollars, and
may also allow an exemption not in excess of twenty-five thousand
dollars on the consideration or value of the interest or property
conveyed and provided, further, that such taxes shall not apply if the
contract for any such conveyance was made prior to May first, nineteen
hundred fifty-nine. Anything to the contrary notwithstanding, where the
tax authorized hereby is imposed on the consideration or value without
any deduction for continuing liens, the portion of the consideration or
value ascribable to such liens shall not be taxed at a rate in excess of
one percent prior to July first, nineteen hundred eighty-two, in excess
of two percent on and after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine, or in excess of two
and six hundred twenty-five thousandths of one percent on and after
August first, nineteen hundred eighty-nine, except that where the inter-
est or property is a one, two or three-family house, an individual coop-
erative apartment or an individual residential condominium unit or where
the consideration for a value of the interest or property conveyed or
transferred is less than five hundred thousand dollars the rate on and
after July first, nineteen hundred eighty-two shall not be in excess of
one percent. The amount of any pre-existing liens on such property or
interest which continue thereon after the conveyance or transfer shall
be deemed to be part of the consideration or value for purposes of meas-
uring the tax without regard to whether or not payment of the liens or
of the underlying debt is assumed by the grantee or transferee. The tax
S. 9009--B 126
authorized hereby may also be imposed (A) prior to July first, nineteen
hundred eighty-two, at a rate not to exceed one percent, on the grant-
ing, assignment or surrender of a leasehold interest in real property,
other than a leasehold interest in a one, two or three-family house or
an individual dwelling unit in a dwelling which is to be occupied or is
occupied as the residence or home of four or more families living inde-
pendently of each other, where the consideration for or value of such
grant, assignment or surrender is five hundred thousand dollars or more,
(B) on and after July first, nineteen hundred eighty-two and before
August first, nineteen hundred eighty-nine, at a rate not to exceed two
percent, on the granting, assignment or surrender of a leasehold inter-
est in real property, except that in the case of a leasehold interest in
a one, two or three-family house or an individual dwelling unit in a
dwelling which is to be occupied or is occupied as the residence or home
of four or more families living independently of each other, or where
the consideration for or value of such grant, assignment or surrender is
less than five hundred thousand dollars, the rate shall not exceed one
percent [and], (C) on and after August first, nineteen hundred eighty-
nine AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, at a rate not to
exceed two and six hundred twenty-five thousandths of one percent, on
the granting, assignment or surrender of a leasehold interest in real
property, except that in the case of a leasehold interest in a one, two
or three-family house or an individual dwelling unit in a dwelling which
is to be occupied or is occupied as the residence or home of four or
more families living independently of each other where the consideration
for or value of such grant, assignment or surrender is less than five
hundred thousand dollars, the rate shall not exceed one percent, or in
the case of a leasehold interest in a one, two or three family house or
an individual dwelling unit in a dwelling which is to be occupied or is
occupied as the residence or home of four or more families living inde-
pendently of each other where the consideration for or value of such
grant, assignment or surrender is greater than five hundred thousand
dollars, the rate shall not exceed one and four hundred twenty-five
thousandths of one percent, or where the consideration for or value of
any other grant, assignment or surrender is less than five hundred thou-
sand dollars, the rate shall not exceed one and four hundred twenty-five
thousandths of one percent, AND (D) ON AND AFTER JUNE FIRST, TWO THOU-
SAND TWENTY-SIX, AT A RATE NOT TO EXCEED TWO AND SIX HUNDRED TWENTY-FIVE
THOUSANDTHS OF ONE PERCENT, ON THE GRANTING, ASSIGNMENT OR SURRENDER OF
A LEASEHOLD INTEREST IN REAL PROPERTY, EXCEPT THAT IN THE CASE OF A
LEASEHOLD INTEREST IN A ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL
DWELLING UNIT IN A DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS
THE RESIDENCE OR HOME OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF
EACH OTHER WHERE THE CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGN-
MENT OR SURRENDER IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, THE RATE
SHALL NOT EXCEED ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN
A ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT GREATER THAN FIVE
MILLION DOLLARS, THE RATE SHALL NOT EXCEED ONE AND FOUR HUNDRED TWENTY-
FIVE THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST
IN A ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
S. 9009--B 127
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIVE MILLION DOLLARS BUT NOT GREATER THAN TEN MILLION
DOLLARS, THE RATE SHALL NOT EXCEED THREE AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TEN MILLION DOLLARS BUT NOT GREATER THAN FIFTEEN MILLION
DOLLARS, THE RATE SHALL NOT EXCEED FOUR AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN FIFTEEN MILLION DOLLARS BUT NOT GREATER THAN TWENTY MILLION
DOLLARS, THE RATE SHALL NOT EXCEED FOUR AND NINE HUNDRED TWENTY-FIVE
THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTEREST IN A
ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TWENTY MILLION DOLLARS BUT NOT GREATER THAN TWENTY-FIVE
MILLION DOLLARS, THE RATE SHALL NOT EXCEED FIVE AND ONE HUNDRED SEVEN-
TY-FIVE THOUSANDTHS OF ONE PERCENT, OR IN THE CASE OF A LEASEHOLD INTER-
EST IN A ONE, TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT
IN A DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR
HOME OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER WHERE
THE CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER IS
GREATER THAN TWENTY-FIVE MILLION DOLLARS, THE RATE SHALL NOT EXCEED FIVE
AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT, OR WHERE THE
CONSIDERATION FOR OR VALUE OF ANY OTHER GRANT, ASSIGNMENT OR SURRENDER
IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, THE RATE SHALL NOT EXCEED ONE
AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT; provided,
however, that for purposes of a tax on the granting of a leasehold
interest in real property, the amount subject to tax shall be only such
amount as is not considered rent for purposes of the tax authorized to
be imposed on the occupancy of commercial premises by chapter two
hundred fifty-seven of the laws of nineteen hundred sixty-three, as
amended, and imposed by a city having a population of one million or
more pursuant thereto. In the case of any conveyance or transfer of real
property or any economic interest therein in complete or partial liqui-
dation of a corporation, partnership, association, trust or other enti-
ty, the tax shall be measured by the consideration for such conveyance
or transfer or the value of the real property or interest therein,
whichever is greater. Such taxes may be imposed on any conveyance or
transfer of real property or interest therein where the real property is
located in such city regardless of where transactions, negotiations,
transfers of deeds or other actions with regard to the transfer or
conveyance take place, subject only to the restrictions contained in
section twelve hundred thirty. The payment of, and the filing of a
return relating to, any such taxes may be required as a condition prece-
dent (1) to the recording or filing of a deed, lease, assignment or
surrender of lease or other instrument, (2) to the commencement of any
action or proceeding in any court of this state in which any conveyance,
transfer or lease described herein is in issue, directly or indirectly,
S. 9009--B 128
or (3) to the receipt in evidence of such deed, lease, assignment or
surrender of lease or other instrument in any such court. In each
instance where the tax rate imposed pursuant to this subdivision is two
percent, fifty percent of the total amount of such tax, including fifty
percent of any interest or penalties thereon, shall be set aside in a
special account by the commissioner of finance of such city, provided,
however, that where the consideration for or value of property or inter-
est conveyed or transferred includes the amount of any nondeductible
mortgage, lien or other encumbrance which existed before the conveyance
or transfer and remains thereon after such conveyance or transfer, (A)
prior to July first, nineteen hundred eighty-two the entire amount of
tax imposed at a rate not in excess of one percent on the portion of the
consideration or value ascribable to such nondeductible mortgage, lien
or other encumbrance, including any interest or penalties thereon, and
fifty percent of the tax on the balance of the consideration or value,
including fifty percent of any interest or penalties thereon, shall be
set aside in such special account, and (B) on and after July first,
nineteen hundred eighty-two and before August first, nineteen hundred
eighty-nine, fifty percent of the amount of tax imposed at a rate in
excess of one percent but not in excess of two percent on the portion of
the consideration or value ascribable to such nondeductible mortgage,
lien or other encumbrance, including fifty percent of any interest or
penalties thereon, and fifty percent of the tax on the balance of the
consideration or value, including fifty percent of any interest or
penalties thereon, shall be set aside in such special account. On and
after August first, nineteen hundred eighty-nine, in each instance where
the tax rate imposed pursuant to this subdivision is in excess of two
percent, EXCEPT WHERE SUCH TAX RATE IS IMPOSED ON A CONVEYANCE OR TRANS-
FER OF A ONE, TWO OR THREE-FAMILY HOUSE, INDIVIDUAL COOPERATIVE APART-
MENT, OR INDIVIDUAL RESIDENTIAL CONDOMINIUM UNITS, OR INTEREST THEREIN,
AND THE CONSIDERATION FOR OR VALUE OF SUCH CONVEYANCE OR TRANSFER IS
GREATER THAN FIVE MILLION DOLLARS, the portion of the tax, and any
interest or penalty thereon, to be set aside in such special account
shall be an amount equal to one percent of the total consideration for
or value of the real property or economic interest therein conveyed or
transferred, plus any interest or penalty attributable to such portion
of the tax. There shall also be set aside in such special account prior
to July first, nineteen hundred eighty-two the total amount of taxes
imposed on grants, assignments or surrenders of leasehold interests in
real property, including any interest or penalties thereon; on and after
July first, nineteen hundred eighty-two and before August first, nine-
teen hundred eighty-nine, there shall be set aside in such special
account fifty percent of the amount of taxes imposed on grants, assign-
ments or surrenders of leasehold interests in real property, other than
a leasehold interest in a one, two or three-family house or an individ-
ual dwelling unit in a dwelling which is to be occupied or is occupied
as the residence or home of four or more families living independently
of each other, or where the consideration for or value of such grant,
assignment or surrender is less than five hundred thousand dollars,
including fifty percent of any interest or penalties thereon. On and
after August first, nineteen hundred eighty-nine, there shall be set
aside in such special account, in each instance where the rate of tax on
grants, assignments or surrenders of leasehold interests in real proper-
ty is two percent or more, EXCEPT WHERE SUCH RATE OF TAX IS IMPOSED ON
GRANTS, ASSIGNMENTS OR SURRENDERS OF LEASEHOLD INTERESTS IN ONE, TWO OR
THREE-FAMILY HOUSES OR INDIVIDUAL DWELLING UNITS IN A DWELLING WHICH IS
S. 9009--B 129
TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF FOUR OR MORE
FAMILIES LIVING INDEPENDENTLY OF EACH OTHER, AND THE CONSIDERATION FOR
OR VALUE OF SUCH GRANT, ASSIGNMENT, OR SURRENDER OF A LEASEHOLD INTEREST
IS GREATER THAN FIVE MILLION DOLLARS, an amount equal to one percent of
the consideration for or value of the leasehold interest granted,
assigned or surrendered, plus any interest or penalty attributable to
such portion of the tax. Notwithstanding anything in this paragraph (i)
to the contrary, in each instance where the tax rate imposed pursuant to
paragraph (xi) of this subdivision is in excess of one percent, EXCEPT
WHERE SUCH TAX RATE IS IMPOSED ON A CONVEYANCE OR TRANSFER OF A ONE, TWO
OR THREE-FAMILY HOUSE, INDIVIDUAL COOPERATIVE APARTMENT, OR INDIVIDUAL
RESIDENTIAL CONDOMINIUM UNITS, OR INTEREST THEREIN, AND THE CONSIDER-
ATION FOR OR VALUE OF SUCH CONVEYANCE OR TRANSFER IS GREATER THAN FIVE
MILLION DOLLARS, the portion of tax, and any interest or penalty there-
on, to be set aside in such special account shall be an amount equal to
one-half of one percent of the total consideration for or value of the
real property or economic interest therein conveyed or transferred, plus
any interest or penalty attributable to such portion of the tax, and
there shall be set aside in such special account, in each instance where
the rate of tax imposed under paragraph (xi) of this subdivision on
grants, assignments or surrenders of leasehold interests in real proper-
ty is in excess of one percent, EXCEPT WHERE SUCH RATE OF TAX IS
IMPOSED ON GRANTS, ASSIGNMENTS OR SURRENDERS OF LEASEHOLD INTERESTS IN
ONE, TWO OR THREE-FAMILY HOUSES OR INDIVIDUAL DWELLING UNITS IN A DWELL-
ING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF
FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER, AND THE
CONSIDERATION FOR OR VALUE OF SUCH GRANT, ASSIGNMENT OR SURRENDER OF A
LEASEHOLD INTEREST IS GREATER THAN FIVE MILLION DOLLARS, an amount equal
to one-half of one percent of the consideration for or value of the
leasehold interest granted, assigned or surrendered, plus any interest
or penalty attributable to such portion of the tax. Moneys in such
account shall be used for payment by such commissioner to the state
comptroller for deposit in the urban mass transit operating assistance
account of the mass transportation operating assistance fund of any
amount of insufficiency certified by the state comptroller pursuant to
the provisions of subdivision six of section eighty-eight-a of the state
finance law, and, on the fifteenth day of each month such commissioner
shall transmit all funds in such account on the last day of the preced-
ing month, except the amount required for the payment of any amount of
insufficiency certified by the state comptroller and such amount as [he]
THE COMPTROLLER deems necessary for refunds and such other amounts
necessary to finance the New York city transportation disabled committee
and the New York city paratransit system as established by section
fifteen-b of the transportation law, provided, however, that such
amounts shall not exceed six percent of the total funds in the account
but in no event be less than one hundred seventy-five thousand dollars
beginning April first, nineteen hundred eighty-six, and further that
beginning November fifteenth, nineteen hundred eighty-four and during
the entire period prior to operation of such system, the total of such
amounts shall not exceed three hundred seventy-five thousand dollars for
the administrative expenses of such committee and fifty thousand dollars
for the expenses of the agency designated pursuant to paragraph b of
subdivision five of such section, and other amounts necessary to finance
the operating needs of the private bus companies franchised by the city
of New York and eligible to receive state operating assistance under
section eighteen-b of the transportation law, provided, however, that
S. 9009--B 130
such amounts shall not exceed four percent of the total funds in the
account, to the New York city transit authority for mass transit within
the city.
§ 3. Paragraphs 9 and 10 of subdivision a of section 11-2102 of the
administrative code of the city of New York, as added by local law
number 59 of the city of New York for the year 1989, are amended and two
new paragraphs 11 and 12 are added to read as follows:
(9) with respect to conveyances made on or after August first, nine-
teen hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX
(other than grants, assignments or surrenders of leasehold interests in
real property taxable as provided in paragraph ten of this subdivision),
the tax shall be at the following rates:
(i) at the rate of one percent of the consideration for conveyances of
one, two or three-family houses and individual residential condominium
units where the consideration is five hundred thousand dollars or less,
and at the rate of one and four hundred twenty-five thousandths of one
percent of the consideration for such conveyances where the consider-
ation is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other conveyances
where the consideration is five hundred thousand dollars or less, and at
the rate of two and six hundred twenty-five thousandths of one percent
where the consideration for such conveyances is more than five hundred
thousand dollars;
(10) With respect to a grant, assignment or surrender of a leasehold
interest in real property made on or after August first, nineteen
hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWENTY-SIX, the
tax shall be at the following rates:
(i) at the rate of one percent of the consideration for the granting,
assignment or surrender of a leasehold interest in a one, two or three-
family house or an individual dwelling unit in a dwelling which is to be
occupied or is occupied as the residence or home of four or more fami-
lies living independently of each other where the consideration is five
hundred thousand dollars or less, and at the rate of one and four
hundred twenty-five thousandths of one percent of the consideration
where the consideration for granting, assignment or surrender [or] OF
such leasehold interest is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration for the granting, assignment or surren-
der of a leasehold interest in all other real property where the consid-
eration is five hundred thousand dollars or less, and at the rate of two
and six hundred twenty-five thousandths of one percent of the consider-
ation where the consideration for the granting, assignment or surrender
of such a leasehold interest is more than five hundred thousand dollars;
(iii) provided, however, that for purposes of subparagraphs (i) and
(ii) of this paragraph, the amount subject to tax in the case of a grant
of a leasehold interest shall be only such amount as is not considered
rent for purposes of the tax imposed by chapter seven of this title[.];
(11) WITH RESPECT TO CONVEYANCES MADE ON OR AFTER JUNE FIRST, TWO
THOUSAND TWENTY-SIX (OTHER THAN GRANTS, ASSIGNMENTS OR SURRENDERS OF
LEASEHOLD INTERESTS IN REAL PROPERTY TAXABLE AS PROVIDED IN PARAGRAPH
TWELVE OF THIS SUBDIVISION), THE TAX SHALL BE AT THE FOLLOWING RATES:
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION FOR CONVEYANCES OF
ONE, TWO OR THREE-FAMILY HOUSES AND INDIVIDUAL RESIDENTIAL CONDOMINIUM
UNITS WHERE THE CONSIDERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS,
AND AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
S. 9009--B 131
PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDER-
ATION IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT MORE THAN FIVE
MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES
WHERE THE CONSIDERATION IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE
THAN TEN MILLION DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVEN-
TY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION FOR SUCH CONVEY-
ANCES WHERE THE CONSIDERATION IS MORE THAN TEN MILLION DOLLARS BUT NOT
MORE THAN FIFTEEN MILLION DOLLARS, AND AT THE RATE OF FOUR AND NINE
HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION FOR
SUCH CONVEYANCES WHERE THE CONSIDERATION IS MORE THAN FIFTEEN MILLION
DOLLARS BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT THE RATE OF
FIVE AND ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDERATION IS MORE THAN
TWENTY MILLION DOLLARS BUT NOT MORE THAN TWENTY-FIVE MILLION DOLLARS,
AND AT THE RATE OF FIVE AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCES WHERE THE CONSIDER-
ATION IS MORE THAN TWENTY-FIVE MILLION DOLLARS; AND
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION WITH RESPECT TO ALL OTHER CONVEYANCES
WHERE THE CONSIDERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT
THE RATE OF TWO AND SIX HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT
WHERE THE CONSIDERATION FOR SUCH CONVEYANCES IS MORE THAN FIVE HUNDRED
THOUSAND DOLLARS;
(12) WITH RESPECT TO A GRANT, ASSIGNMENT OR SURRENDER OF A LEASEHOLD
INTEREST IN REAL PROPERTY MADE ON OR AFTER JUNE FIRST, TWO THOUSAND
TWENTY-SIX, THE TAX SHALL BE AT THE FOLLOWING RATES:
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION FOR THE GRANTING,
ASSIGNMENT OR SURRENDER OF A LEASEHOLD INTEREST IN A ONE, TWO OR THREE-
FAMILY HOUSE OR AN INDIVIDUAL DWELLING UNIT IN A DWELLING WHICH IS TO BE
OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME OF FOUR OR MORE FAMI-
LIES LIVING INDEPENDENTLY OF EACH OTHER WHERE THE CONSIDERATION IS FIVE
HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF ONE AND FOUR
HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A
LEASEHOLD INTEREST IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT NOT
MORE THAN FIVE MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX HUNDRED
SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD
INTEREST IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE THAN TEN MILLION
DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVENTY-FIVE THOU-
SANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION FOR
GRANTING, ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE
THAN TEN MILLION DOLLARS BUT NOT MORE THAN FIFTEEN MILLION DOLLARS, AND
AT THE RATE OF FOUR AND NINE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE
PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING,
ASSIGNMENT OR SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN
FIFTEEN MILLION DOLLARS BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT
THE RATE OF FIVE AND ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT
OF THE CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR
SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN TWENTY MILLION
DOLLARS BUT NOT MORE THAN TWENTY-FIVE MILLION DOLLARS, AND AT THE RATE
OF FIVE AND THREE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION WHERE THE CONSIDERATION FOR GRANTING, ASSIGNMENT OR
SURRENDER OF SUCH A LEASEHOLD INTEREST IS MORE THAN TWENTY-FIVE MILLION
DOLLARS;
S. 9009--B 132
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION FOR THE GRANTING, ASSIGNMENT OR SURREN-
DER OF A LEASEHOLD INTEREST IN ALL OTHER REAL PROPERTY WHERE THE CONSID-
ERATION IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF TWO
AND SIX HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDER-
ATION WHERE THE CONSIDERATION FOR THE GRANTING, ASSIGNMENT OR SURRENDER
OF SUCH A LEASEHOLD INTEREST IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS;
(III) PROVIDED, HOWEVER, THAT FOR PURPOSES OF SUBPARAGRAPHS (I) AND
(II) OF THIS PARAGRAPH, THE AMOUNT SUBJECT TO TAX IN THE CASE OF A GRANT
OF A LEASEHOLD INTEREST SHALL BE ONLY SUCH AMOUNT AS IS NOT CONSIDERED
RENT FOR PURPOSES OF THE TAX IMPOSED BY CHAPTER SEVEN OF THIS TITLE.
§ 4. Subparagraph (B) of paragraph 1 of subdivision b of section
11-2102 of the administrative code of the city of New York, as amended
by local law number 59 of the city of New York for the year 1989, is
amended to read as follows:
(B) With respect to such transfers made on or after August first,
nineteen hundred eighty-nine, AND BEFORE JUNE FIRST, TWO THOUSAND TWEN-
TY-SIX, the tax shall be at the following rates:
(i) at the rate of one percent of the consideration where the real
property, the economic interest in which is transferred, is a one, two
or three-family house, an individual cooperative apartment, an individ-
ual residential condominium unit or an individual dwelling unit in a
dwelling which is to be occupied or is occupied as the residence or home
of four or more families living independently of each other and where
the consideration for such transfer of an economic interest in such real
property is five hundred thousand dollars or less, and at the rate of
one and four hundred twenty-five thousandths of one percent of the
consideration where the consideration for such transfer of an economic
interest in such property is more than five hundred thousand dollars,
and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other transfers of
an economic interest in real property where the consideration is five
hundred thousand dollars or less, and at the rate of two and six hundred
twenty-five thousandths of one percent of the consideration where the
consideration for such transfers is more than five hundred thousand
dollars.
§ 5. Paragraph 1 of subdivision b of section 11-2102 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (B-1) to read as follows:
(B-1) WITH RESPECT TO SUCH TRANSFERS MADE ON OR AFTER JUNE FIRST, TWO
THOUSAND TWENTY-SIX, THE TAX SHALL BE AT THE FOLLOWING RATES:
(I) AT THE RATE OF ONE PERCENT OF THE CONSIDERATION WHERE THE REAL
PROPERTY, THE ECONOMIC INTEREST IN WHICH IS TRANSFERRED, IS A ONE, TWO
OR THREE-FAMILY HOUSE, AN INDIVIDUAL COOPERATIVE APARTMENT, AN INDIVID-
UAL RESIDENTIAL CONDOMINIUM UNIT OR AN INDIVIDUAL DWELLING UNIT IN A
DWELLING WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS THE RESIDENCE OR HOME
OF FOUR OR MORE FAMILIES LIVING INDEPENDENTLY OF EACH OTHER AND WHERE
THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH REAL
PROPERTY IS FIVE HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF
ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE
CONSIDERATION WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC
INTEREST IN SUCH PROPERTY IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS BUT
NOT MORE THAN FIVE MILLION DOLLARS, AND AT THE RATE OF THREE AND SIX
HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN
S. 9009--B 133
SUCH PROPERTY IS MORE THAN FIVE MILLION DOLLARS BUT NOT MORE THAN TEN
MILLION DOLLARS, AND AT THE RATE OF FOUR AND SIX HUNDRED SEVENTY-FIVE
THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE CONSIDERATION
FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH PROPERTY IS MORE THAN
TEN MILLION DOLLARS BUT NOT MORE THAN FIFTEEN MILLION DOLLARS, AND AT
THE RATE OF FOUR AND NINE HUNDRED TWENTY-FIVE THOUSANDTHS OF ONE PERCENT
OF THE CONSIDERATION WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN
ECONOMIC INTEREST IN SUCH PROPERTY IS MORE THAN FIFTEEN MILLION DOLLARS
BUT NOT MORE THAN TWENTY MILLION DOLLARS, AND AT THE RATE OF FIVE AND
ONE HUNDRED SEVENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION
WHERE THE CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN
SUCH PROPERTY IS MORE THAN TWENTY MILLION DOLLARS BUT NOT MORE THAN
TWENTY-FIVE MILLION DOLLARS, AND AT THE RATE OF FIVE AND THREE HUNDRED
TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR SUCH TRANSFER OF AN ECONOMIC INTEREST IN SUCH PROPERTY
IS MORE THAN TWENTY-FIVE MILLION DOLLARS; AND
(II) AT THE RATE OF ONE AND FOUR HUNDRED TWENTY-FIVE THOUSANDTHS OF
ONE PERCENT OF THE CONSIDERATION WITH RESPECT TO ALL OTHER TRANSFERS OF
AN ECONOMIC INTEREST IN REAL PROPERTY WHERE THE CONSIDERATION IS FIVE
HUNDRED THOUSAND DOLLARS OR LESS, AND AT THE RATE OF TWO AND SIX HUNDRED
TWENTY-FIVE THOUSANDTHS OF ONE PERCENT OF THE CONSIDERATION WHERE THE
CONSIDERATION FOR SUCH TRANSFERS IS MORE THAN FIVE HUNDRED THOUSAND
DOLLARS.
§ 6. This act shall take effect immediately and shall be deemed to
have been in full force and effect as of June 1, 2026, and apply to
transactions occurring on or after such date.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through TT of this act shall be
as specifically set forth in the last section of such Parts.