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S T A T E O F N E W Y O R K
________________________________________________________________________
S. 9009--C A. 10009--C
S E N A T E - A S S E M B L Y
January 21, 2026
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- again reported from
said committee with amendments, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to enhancing and reforming the child and depend-
ent care credit (Part A); to amend the tax law, in relation to exclud-
ing certain tips earned from New York adjusted gross income (Part B);
to amend the tax law, in relation to retaining the deductibility of
certain charitable contributions (Part C); to amend the tax law, in
relation to standardizing the definition of farmer for various cred-
its; and to repeal certain provisions of such law relating thereto
(Part D); to amend the tax law, in relation to extending the current
corporate tax rates (Part E); to amend the tax law, in relation to
exemptions from calculation of income in certain cases (Part F); to
amend the administrative code of the city of New York, in relation to
the treatment of certain deductions allowable under the internal
revenue code in calculating New York city taxable income for corpo-
rations (Part G); intentionally omitted (Part H); to amend the execu-
tive law and the tax law, in relation to extending the commercial
security tax credit (Part I); to amend the tax law, in relation to
enhancing the New York city musical and theatrical production tax
credit (Part J); to amend the tax law and the state finance law, in
relation to alternative nicotine products (Part K); intentionally
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12674-05-6
S. 9009--C 2 A. 10009--C
omitted (Part L); to amend the tax law and the administrative code of
the city of New York, in relation to extending the real estate trans-
fer tax rate reduction for conveyances of real property to existing
real estate investment funds (Part M); to establish a sales and use
tax reregistration program and a sales and use tax penalty and inter-
est discount program (Part N); intentionally omitted (Part O); to
amend the tax law, in relation to extending the sales tax exemption
for certain sales made through a vending machine for three years (Part
P); to amend 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, in relation to extending the residential energy stor-
age 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 ceilings 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; and to amend the real property
tax law, in relation to the powers of the state board of real property
tax services (Part U); to amend the real property tax law, in relation
to expanding the rent increase exemption for senior citizens and
persons with disabilities; to amend part U of chapter 55 of the laws
of 2014, amending the real property tax law relating to the tax abate-
ment and exemption for rent regulated and rent controlled property
occupied by senior citizens, in relation to the effectiveness thereof;
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; and providing for the repeal of
certain provisions upon expiration thereof (Subpart A); and to amend
the administrative code of the city of New York and the real property
tax law, in relation to providing notice to tenants regarding rent
increase exemptions (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
the Capital 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 simulcast, simulcast of out-of-state thoroughbred races, simul-
casting 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 excluding
distributions due to certain federal elections from personal income
S. 9009--C 3 A. 10009--C
tax (Part AA); to amend the tax law, in relation to increasing tax
credits for donations to food pantries by farmers (Part BB); to amend
the tax law, in relation to authorizing students to donate unused meal
funds, meals or meal points to other students enrolled in such school,
college or university who are facing food insecurity; and to amend
chapter 678 of the laws of 2025 amending the tax law relating to
excluding certain food donations from sales tax, in relation to the
effectiveness thereof (Part CC); to amend the racing, pari-mutuel
wagering and breeding law, in relation to additional qualifications
for the board members of regional off-track betting corporations; and
to amend section 2 of part JJ of chapter 56 of the laws of 2023 amend-
ing the racing, pari-mutuel wagering and breeding law, relating to the
membership of the board of directors of the western regional off-track
betting corporation, in relation to the effectiveness thereof (Part
DD); to amend the real property tax law, in relation to the property
tax exemption for certain disabled veterans (Part EE); to amend the
tax law, in relation to establishing a protecting our wallets energy
rebate (POWER) credit (Part FF); to amend the racing, pari-mutuel
wagering and breeding law, in relation to standardbred testing (Part
GG); to amend the tax law, the administrative code of the city of New
York and the New York city charter, in relation to authorizing a city
having a population of one million or more to impose a surcharge on
property that does not serve as a primary residence; and providing for
the repeal of such provisions upon expiration thereof (Part HH); to
amend the tax law, in relation to authorizing additional vendor fees
to vendor tracks and video lottery gaming facilities; and relating to
directing the gaming commission to conduct a study on video lottery
terminal vendor fees and commercial casino tax rates; and providing
for the repeal of such provisions upon expiration thereof (Part II);
and to extend the duration of certain brownfield redevelopment and
remediation tax credits with respect to certain sites (Part JJ)
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 JJ. 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
S. 9009--C 4 A. 10009--C
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
(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
S. 9009--C 5 A. 10009--C
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
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
S. 9009--C 6 A. 10009--C
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.
(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. PROVIDED, HOWEVER,
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 SEVEN HUNDRED FIFTY THOUSAND
DOLLARS.
(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:
S. 9009--C 7 A. 10009--C
(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
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
S. 9009--C 8 A. 10009--C
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
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
S. 9009--C 9 A. 10009--C
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
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
S. 9009--C 10 A. 10009--C
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
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
S. 9009--C 11 A. 10009--C
(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
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
S. 9009--C 12 A. 10009--C
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. The opening paragraph of paragraph 1 of subdivision (e) of
section 11-1706 of the administrative code of the city of New York, as
added by chapter 484 of the laws of 2007, is amended to read as follows:
For taxable years beginning on or after January first, two thousand
seven, a taxpayer shall be allowed a credit as provided herein equal to
the applicable percentage of the credit allowed under [subsection]
SUBSECTIONS (c) AND (C-2) of section six hundred six of the tax law with
respect to qualifying individuals as defined in paragraph one of
subsection (b) of section twenty-one of the internal revenue code (with-
out regard to whether the taxpayer in fact claimed the credit under such
section twenty-one for the taxable year) who are dependents of the
taxpayer and who have not attained the age of four as of the end of the
taxable year. The applicable percentage shall be determined as follows:
§ 5. 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. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part Q of chapter 59 of the laws of 2019, paragraph 2 as
amended by section 1 of part A of chapter 59 of the laws of 2024, is
amended to read as follows:
(g) Notwithstanding subsection (a) of this section, the New York item-
ized deduction for charitable contributions shall be the amount allowed
under section one hundred seventy of the internal revenue code OR THE
AMOUNT ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION, as
modified by paragraph nine of subsection (c) of this section and as
limited by this subsection. (1) With respect to an individual whose New
York adjusted gross income is over one million dollars and no more than
ten million dollars, the New York itemized deduction shall be an amount
equal to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code OR ALLOW-
ABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION for taxable years
beginning after two thousand nine and before two thousand twenty-five.
With respect to an individual whose New York adjusted gross income is
over one million dollars, the New York itemized deduction shall be an
amount equal to fifty percent of any charitable contribution deduction
allowed under section one hundred seventy of the internal revenue code
OR ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION for taxable
years beginning in two thousand nine or after two thousand twenty-four.
S. 9009--C 13 A. 10009--C
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code OR ALLOWABLE PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION
for taxable years beginning after two thousand nine and ending before
two thousand thirty.
(3) CONTRIBUTIONS TO AN ORGANIZATION THAT MEETS THE DEFINITION OF AN
EXEMPT ORGANIZATION UNDER PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED SIXTEEN OF THIS CHAPTER OR TO ORGANIZATIONS THAT HAVE
APPLIED FOR, AND WERE APPROVED FOR TAX-EXEMPT STATUS UNDER SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE BY THE
INTERNAL REVENUE SERVICE BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE,
WILL CONTINUE TO QUALIFY AS CHARITABLE CONTRIBUTIONS ALLOWABLE AS A NEW
YORK ITEMIZED DEDUCTION UNDER THIS SUBSECTION, TO THE EXTENT OTHERWISE
ALLOWABLE UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE
CODE, EVEN IF THE INTERNAL REVENUE SERVICE REVOKES SUCH ORGANIZATION'S
TAX-EXEMPT STATUS, SO LONG AS THE ORGANIZATION ESTABLISHES THAT THE
REVOCATION WAS UNRELATED TO THE ORGANIZATION'S CHARITABLE MISSION AND
THAT IT CONTINUES TO MEET THE STATUTORY REQUIREMENTS OF PARAGRAPH THREE
OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE
CODE AND THE REGULATIONS AND AUTHORITIES PROMULGATED THEREUNDER.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART D
Section 1. Subdivision (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. Subdivision (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].
S. 9009--C 14 A. 10009--C
§ 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
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
S. 9009--C 15 A. 10009--C
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"
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
S. 9009--C 16 A. 10009--C
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
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] 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 seven
and one-quarter 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 para-
graph (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,
S. 9009--C 17 A. 10009--C
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
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 three new subparagraphs 24, 25 and 26 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.
S. 9009--C 18 A. 10009--C
§ 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding two new subparagraphs 28 and 29 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
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.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
two new paragraphs 44 and 45 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.
§ 4. Subsection (c) of section 612 of the tax law is amended by adding
three new paragraphs 48, 49 and 50 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
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
S. 9009--C 19 A. 10009--C
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.
§ 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
amended by adding three new subparagraphs (X), (Y) and (Z) 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.
§ 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding two new subparagraphs (AA) and (BB) 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
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.
§ 7. This act shall take effect immediately, and shall apply to tax
years beginning on or after January 1, 2025; provided, however, that no
interest or penalty shall accrue on returns under a valid extension that
are filed within the period of extension or amended returns filed for
S. 9009--C 20 A. 10009--C
taxable years beginning on or after January 1, 2025, and before January
1, 2026, that solely report the modifications required by this act.
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.
§ 2. Subdivision (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-
S. 9009--C 21 A. 10009--C
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".
(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
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.
S. 9009--C 22 A. 10009--C
§ 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 section 3 of part C of 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
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-
S. 9009--C 23 A. 10009--C
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-
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
S. 9009--C 24 A. 10009--C
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".
(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
S. 9009--C 25 A. 10009--C
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 section 2 of part C of 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
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;
provided, however, that no interest or penalty shall accrue on returns
under a valid extension that are filed within the period of extension or
amended returns filed for taxable years beginning after December 31,
S. 9009--C 26 A. 10009--C
2024, and before January 1, 2026, that solely report the modifications
required by this act.
PART H
Intentionally Omitted
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
this act shall not affect the repeal of such section and shall be deemed
repealed therewith.
PART K
S. 9009--C 27 A. 10009--C
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 a new
subdivision 22 is 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 BUT NOT TOBACCO AND IS
INTENDED FOR HUMAN CONSUMPTION, WHETHER CHEWED, ABSORBED, DISSOLVED, OR
INGESTED BY ANY OTHER MEANS. "ALTERNATIVE NICOTINE 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 CANNISTER, 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.
§ 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
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
S. 9009--C 28 A. 10009--C
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
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.
S. 9009--C 29 A. 10009--C
§ 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.
§ 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
S. 9009--C 30 A. 10009--C
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-
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
S. 9009--C 31 A. 10009--C
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
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
S. 9009--C 32 A. 10009--C
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
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-
S. 9009--C 33 A. 10009--C
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
Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
subdivision (b) of section 1402 of the tax law, as amended by section 1
of part U of chapter 59 of the laws of 2023, is amended to read as
follows:
For purposes of this subdivision, the phrase "real estate investment
trust transfer" shall mean any conveyance of real property or an inter-
est therein to a REIT, or to a partnership or corporation in which a
REIT owns a controlling interest immediately following the conveyance,
which conveyance (I) occurs in connection with the initial formation of
the REIT, provided that the conditions set forth in clauses (i) and (ii)
of this subparagraph are satisfied, or (II) in the case of any real
estate investment trust transfer occurring on or after July thirteenth,
nineteen hundred ninety-six and before September first, two thousand
[twenty-six] TWENTY-NINE, is described in the last sentence of this
subparagraph.
§ 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section
1201 of the tax law, as amended by section 2 of part U of chapter 59 of
the laws of 2023, is amended to read as follows:
(2) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer, in connection with a trans-
action described in subparagraph one of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (A) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs three and four of this paragraph
are satisfied, or (B) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-six]
TWENTY-NINE, the transaction is described in subparagraph five of this
paragraph in which case the provisions of such subparagraph shall apply.
§ 3. Subparagraph (B) of paragraph 2 of subdivision e of section
11-2102 of the administrative code of the city of New York, as amended
by section 3 of part U of chapter 59 of the laws of 2023, is amended to
read as follows:
(B) any issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer in connection with a trans-
S. 9009--C 34 A. 10009--C
action described in subparagraph (A) of this paragraph. Notwithstanding
the foregoing, a transaction described in the preceding sentence shall
not constitute a real estate investment trust transfer unless (i) it
occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs (C) and (D) of this paragraph are
satisfied, or (ii) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen hundred nine-
ty-six and before September first, two thousand [twenty-six]
TWENTY-NINE, the transaction is described in subparagraph (E) of this
paragraph in which case the provision of such subparagraph shall apply.
§ 4. This act shall take effect immediately.
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
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.
S. 9009--C 35 A. 10009--C
(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
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
S. 9009--C 36 A. 10009--C
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.
§ 2. This act shall take effect immediately.
PART Q
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
S. 9009--C 37 A. 10009--C
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-
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
S. 9009--C 38 A. 10009--C
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.
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.
S. 9009--C 39 A. 10009--C
§ 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.
§ 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:
S. 9009--C 40 A. 10009--C
(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
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. Paragraph (a) of subdivision 2 of section 200-a of the real prop-
erty tax law, as separately amended by section 2 of part J of chapter 57
and chapter 475 of the laws of 2013, is amended to read as follows:
(a) The power to determine the final special franchise value, special
franchise assessment, railroad ceiling, state equalization rate or any
other equalization product established pursuant to this chapter for
which a complaint has been filed, as provided by sections four hundred
eighty-nine-o, four hundred eighty-nine-ll, [four hundred ninety-nine-
pppp,] six hundred fourteen, twelve hundred ten, twelve hundred fifty-
three, and twelve hundred sixty-three of this chapter;
§ 3. This act shall take effect immediately; provided, however, that
the amendments to paragraph (a) of subdivision 2 of section 200-a of the
real property tax law made by section two of this act shall not affect
the expiration and reversion of such section pursuant to section 4 of
chapter 475 of the laws of 2013, as amended.
PART V
Section 1. This Part enacts into law components of legislation relat-
ing to rent exemptions and rent increase exemptions and property tax
exemptions for certain persons. Each component is wholly contained with-
in 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
S. 9009--C 41 A. 10009--C
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. Paragraph a of subdivision 3 of section 467-b of the real
property tax law, as amended by section 1 of part U of chapter 55 of the
laws of 2014, is 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
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] THEIR retirement income
over the entire period of such year.
§ 2. Paragraph b of subdivision 3 of section 467-b of the real proper-
ty tax law, as amended by section 1 of chapter 129 of the laws of 2014,
is amended to read as follows:
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 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 the local law, ordinance or resolution adopted pursuant
to this section.
§ 3. Subparagraph 1 of paragraph d of subdivision 1 of section 467-c
of the real property tax law, as amended by section 2 of part U of chap-
ter 55 of the laws of 2014, is amended to read as follows:
(1) a person or [his or her] THEIR spouse who is sixty-two years of
age or older and is entitled to the possession or to the use and occu-
pancy 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] THEIR 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 thou-
sand 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 beginning July first, two thousand five, twenty-six thousand
S. 9009--C 42 A. 10009--C
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
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.
§ 4. Paragraph m of subdivision 1 of section 467-c of the real proper-
ty tax law, as amended by chapter 129 of the laws of 2014, is amended to
read as follows:
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 thousand dollars beginning July first, two thou-
sand fourteen, AND SEVENTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST,
TWO THOUSAND TWENTY-SIX, as may be provided by local law.
§ 5. Paragraph (a) of subdivision 1 of section 467 of the real proper-
ty tax law, as amended by section 1 of part K of chapter 59 of the laws
of 2023, is amended to read as follows:
(a) Real property owned by one or more persons, each of whom is
sixty-five years of age or over, or real property owned by a married
couple or by siblings, one of whom is sixty-five years of age or over,
or real property owned by one or more persons, some of whom qualify
under this section and the others of whom qualify under section four
hundred fifty-nine-c of this title, shall be exempt from payments in
lieu of taxes (PILOT) to the battery park city authority or from taxa-
tion by any municipal corporation in which located to the extent of
fifty per centum of the assessed valuation thereof, provided the govern-
ing board of such municipality, after public hearing, adopts a local
law, ordinance or resolution providing therefor, AND PROVIDED FURTHER
THAT SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE ENACTED OR AMENDED
SEPARATELY FROM ANY OTHER LOCAL LAW, ORDINANCE, OR RESOLUTION AUTHORIZED
PURSUANT TO A SECTION OF THIS ARTICLE OTHER THAN (I) THIS SECTION OR
(II) SECTION FOUR HUNDRED FIFTY-NINE-C OF THIS TITLE. For the purposes
of this section, the term "sibling" shall include persons whose
relationship as siblings has been established through either half blood,
whole blood or adoption.
§ 6. 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-SEVEN, as may be provided by the local law,
ordinance or resolution adopted pursuant to this section.
S. 9009--C 43 A. 10009--C
§ 7. 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-SEVEN, as may be provided by the local law or
resolution adopted pursuant to this section.
§ 8. Paragraph (a) of subdivision 1 of section 459-c of the real prop-
erty tax law, as amended by chapter 209 of the laws of 2024, is amended
to read as follows:
(a) Real property owned by one or more persons with disabilities, or
real property owned by a married person or a married couple, or by
siblings, at least one of whom has a disability, or a person with a
disability who has their primary residence in a special needs trust, or
a property owner who has a tenant with a disability whose lease provides
them with a life interest in the property as long as the tenant remains
in residence, or real property owned by one or more persons, some of
whom qualify under this section and the others of whom qualify under
section four hundred sixty-seven of this title, and whose income, as
hereafter defined, is limited by reason of such disability, shall be
exempt from payments in lieu of taxes (PILOT) to the battery city park
authority or from taxation by any municipal corporation in which located
to the extent of fifty per centum of the assessed valuation thereof as
hereinafter provided. After a public hearing, the governing board of a
county, city, town or village may adopt a local law and a school
district, other than a school district subject to article fifty-two of
the education law, may adopt a resolution to grant the exemption author-
ized pursuant to this section, PROVIDED THAT SUCH LOCAL LAW OR RESOL-
UTION SHALL BE ENACTED OR AMENDED SEPARATELY FROM ANY OTHER LOCAL LAW,
ORDINANCE, OR RESOLUTION AUTHORIZED PURSUANT TO A SECTION OF THIS ARTI-
CLE OTHER THAN (I) THIS SECTION OR (II) SECTION FOUR HUNDRED SIXTY-SEVEN
OF THIS TITLE.
§ 9. 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] 2028;
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.
§ 10. 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
S. 9009--C 44 A. 10009--C
(b) nothing contained in this act shall be construed so as to extend
the provisions of this act beyond June 30, [2026] 2028, when upon such
date this act shall expire and the provisions contained in this act
shall be deemed repealed.
§ 11. This act shall take effect immediately; provided however:
(a) sections one, two, three and four of this act shall expire and be
deemed repealed June 30, 2028;
(b) the amendments to paragraphs a and b of subdivision 3 of section
467-b of the real property tax law made by sections one and two of this
act shall not affect the expiration of such paragraphs and shall be
deemed to expire therewith;
(c) the amendments to subparagraph 1 of paragraph d of subdivision 1
of section 467-c of the real property tax law made by section three of
this act shall not affect the expiration of such subparagraph and shall
be deemed to expire therewith;
(d) the amendments to paragraph m of subdivision 1 of section 467-c of
the real property tax law made by section four of this act shall not
affect the expiration of such paragraph and shall be deemed to expire
therewith; and
(e) sections five, six, seven, and eight of this act shall take effect
July 1, 2027.
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) (1) 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 REAL PROPER-
TY TAX LAW.
(2) 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 THE REAL PROPERTY TAX LAW.
(3) SUCH NOTICE SHALL CLEARLY AND CONSPICUOUSLY DISPLAY THE ELIGIBIL-
ITY REQUIREMENTS FOR THE RENT INCREASE EXEMPTION AND THE WEBSITE ADDRESS
AND TELEPHONE 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) NOTWITHSTANDING PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION,
THE STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE
SUCH NOTICE, IN A FORM TO BE DETERMINED BY SUCH COMMISSIONER, TO A
TENANT:
(I) UPON RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A
MAJOR CAPITAL IMPROVEMENT; AND
(II) FOR DWELLING UNITS SUBJECT TO CHAPTER THREE OF THIS TITLE, UPON 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.
S. 9009--C 45 A. 10009--C
(3) A COMPANY, AS SUCH TERM IS DEFINED IN SUBDIVISION TWO OF SECTION
TWELVE OF THE PRIVATE HOUSING FINANCE LAW, SHALL PROVIDE SUCH NOTICE TO
A TENANT UPON A RENT INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE
PRIVATE HOUSING FINANCE LAW, PROVIDED THAT THE COMPANY SHALL PROVIDE
SUCH NOTICE TO A TENANT AT LEAST ONCE ANNUALLY.
§ 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 STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL
PROVIDE NOTICE TO A TENANT, THE FORM OF WHICH SHALL BE DETERMINED BY
SUCH COMMISSIONER, CLEARLY AND CONSPICUOUSLY DISPLAYING THE ELIGIBILITY
REQUIREMENTS FOR THE SENIOR CITIZEN RENT INCREASE EXEMPTION PROGRAM AND
THE DISABILITY RENT INCREASE EXEMPTION PROGRAM AND THE WEBSITE ADDRESS
AND TELEPHONE NUMBER WHERE TENANTS MAY OBTAIN MORE INFORMATION. SUCH
COMMISSIONER SHALL PROVIDE SUCH NOTICE TO A TENANT AT THE SAME TIME AS:
(I) RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A MAJOR
CAPITAL IMPROVEMENT; AND
(II) 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) A COMPANY, AS SUCH TERM IS DEFINED IN SUBDIVISION TWO OF SECTION
TWELVE OF THE PRIVATE HOUSING FINANCE LAW, SHALL PROVIDE THE NOTICE
REQUIRED BY CLAUSE (A) OF THIS SUBPARAGRAPH TO A TENANT UPON A RENT
INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE PRIVATE HOUSING FINANCE
LAW, PROVIDED THAT THE COMPANY SHALL PROVIDE SUCH NOTICE TO A TENANT AT
LEAST ONCE ANNUALLY.
§ 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) 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.
(B) 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.
(C) SUCH NOTICE SHALL CLEARLY AND CONSPICUOUSLY DISPLAY THE ELIGIBIL-
ITY REQUIREMENTS FOR THE RENT INCREASE EXEMPTION AND THE WEBSITE ADDRESS
AND TELEPHONE NUMBER WHERE TENANTS MAY OBTAIN MORE INFORMATION.
(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:
S. 9009--C 46 A. 10009--C
(A) NOTWITHSTANDING CLAUSE (B) OF SUBPARAGRAPH ONE OF THIS PARAGRAPH,
THE STATE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL PROVIDE
SUCH NOTICE, IN A FORM TO BE DETERMINED BY SUCH COMMISSIONER, TO A
TENANT:
(I) UPON RECEIPT OF AN APPLICATION FOR A RENT ADJUSTMENT DUE TO A
MAJOR CAPITAL IMPROVEMENT; AND
(II) FOR DWELLING UNITS SUBJECT TO CHAPTER THREE OF TITLE TWENTY-SIX
OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, UPON 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.
(C) A COMPANY, AS SUCH TERM IS DEFINED IN SUBDIVISION TWO OF SECTION
TWELVE OF THE PRIVATE HOUSING FINANCE LAW, SHALL PROVIDE SUCH NOTICE TO
A TENANT UPON A RENT INCREASE PURSUANT TO SECTION THIRTY-ONE OF THE
PRIVATE HOUSING FINANCE LAW, PROVIDED THAT THE COMPANY SHALL PROVIDE
SUCH NOTICE TO A TENANT AT LEAST ONCE ANNUALLY.
§ 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, subdivision,
section or subpart of this part shall be adjudged by any court of compe-
tent jurisdiction to be invalid, such judgment shall not affect, impair,
or invalidate the remainder thereof, but shall be confined in its opera-
tion to the clause, sentence, paragraph, subdivision, section or subpart
directly involved in the controversy in which the judgment shall have
been rendered. It is hereby declared to be the intent of the legislature
that this part and each subpart herein 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 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--C 47 A. 10009--C
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--C 48 A. 10009--C
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--C 49 A. 10009--C
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--C 50 A. 10009--C
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--C 51 A. 10009--C
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--C 52 A. 10009--C
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--C 53 A. 10009--C
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--C 54 A. 10009--C
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--C 55 A. 10009--C
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--C 56 A. 10009--C
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--C 57 A. 10009--C
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--C 58 A. 10009--C
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--C 59 A. 10009--C
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--C 60 A. 10009--C
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--C 61 A. 10009--C
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--C 62 A. 10009--C
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--C 63 A. 10009--C
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--C 64 A. 10009--C
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--C 65 A. 10009--C
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--C 66 A. 10009--C
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--C 67 A. 10009--C
(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--C 68 A. 10009--C
(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--C 69 A. 10009--C
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--C 70 A. 10009--C
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--C 71 A. 10009--C
§ 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--C 72 A. 10009--C
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--C 73 A. 10009--C
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--C 74 A. 10009--C
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--C 75 A. 10009--C
[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--C 76 A. 10009--C
(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--C 77 A. 10009--C
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--C 78 A. 10009--C
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--C 79 A. 10009--C
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.
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
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.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2026.
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:
S. 9009--C 80 A. 10009--C
(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
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] TWENTY-SEVEN; 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] TWENTY-SEVEN; 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
S. 9009--C 81 A. 10009--C
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] TWENTY-SEVEN, the amount used
exclusively for purses to be awarded at races conducted by such receiv-
ing 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 twenty-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] TWENTY-SEVEN and on any day regard-
less 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] TWENTY-SEVEN. 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 simul-
casting facility licensed in accordance with section one thousand seven
(that has entered into a written agreement with such facility's repre-
sentative 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 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 the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [twenty-six] TWENTY-SEVEN. This section shall
supersede all inconsistent provisions of this chapter.
§ 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] TWENTY-SEVEN. Every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven that have entered
into a written agreement with such facility's representative horsemen's
S. 9009--C 82 A. 10009--C
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
July twenty-fifth, two thousand one through September eighth, two thou-
sand [twenty-five] TWENTY-SIX, when a franchised corporation is conduct-
ing 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:
§ 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 breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2026] 2027; 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
S. 9009--C 83 A. 10009--C
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, WHICH TAX IS HEREBY LEVIED, IN 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] 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] TWEN-
TY-SEVEN, 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
S. 9009--C 84 A. 10009--C
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
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 1 of section 220 of the racing, pari-mutu-
el 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 (c) of section 612 of the tax law is amended by
adding a new paragraph 48 to read as follows:
(48) THE AMOUNT OF ANY DISTRIBUTION INCLUDED IN FEDERAL ADJUSTED GROSS
INCOME PURSUANT TO SUBSECTION (D) OF SECTION NINE HUNDRED SIXTY-TWO OF
THE INTERNAL REVENUE CODE.
S. 9009--C 85 A. 10009--C
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026.
PART BB
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
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-SIX, AND 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
TWENTY THOUSAND DOLLARS PER TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX. 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-SIX, AND TWENTY THOUSAND DOLLARS FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
§ 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-SIX, AND 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
TWENTY THOUSAND DOLLARS PER TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX. 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-SIX, AND TWENTY THOUSAND DOLLARS FOR TAXABLE YEARS
BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX.
§ 3. This act shall take effect immediately.
PART CC
Section 1. Subparagraph (B) of paragraph (ii) of subdivision (d) of
section 1105 of the tax law, as amended by chapter 678 of the laws of
2025, is amended to read as follows:
S. 9009--C 86 A. 10009--C
(B) food or drink sold to a student of a nursery school, kindergarten,
elementary or secondary school at a restaurant or cafeteria located on
the premises of such a school, or food or drink, other than beer, wine,
or other alcoholic beverages, sold at a restaurant, tavern or other
establishment located on the premises of a college, university or a
school (other than a nursery school, kindergarten, elementary or second-
ary school) to a student enrolled therein who purchases such food or
drink under a contractual arrangement whereby the student does not pay
cash at the time such student is served, [including food sold to a
student enrolled therein purchasing a meal using an approved donation
program of funds or food points,] provided the school, college or
university described in this subparagraph is operated by an exempt
organization described in subdivision (a) of section eleven hundred
sixteen, or is created, incorporated, registered, or licensed by the
state legislature or pursuant to the education law or the regulations of
the commissioner of education, or is incorporated by the regents of the
university of the State of New York or with their consent or the consent
of the commissioner of education as provided in section two hundred
sixteen of the education law; PROVIDED, FURTHER, THAT THE CONTRACTUAL
ARRANGEMENT BETWEEN AN ENROLLED STUDENT AND A COLLEGE, UNIVERSITY OR
SCHOOL MAY INCLUDE A PROVISION PERMITTING SUCH ENROLLED STUDENT TO
DONATE UNUSED MEAL FUNDS, MEALS OR MEAL POINTS TO OTHER STUDENTS
ENROLLED IN SUCH SCHOOL, COLLEGE OR UNIVERSITY WHO ARE FACING FOOD INSE-
CURITY THROUGH A PROGRAM OPERATED BY SUCH SCHOOL, COLLEGE OR UNIVERSITY
DIRECTLY OR THROUGH A CONTRACT WITH A NONPROFIT ORGANIZATION THAT IS
EXEMPT FROM FEDERAL TAXATION PURSUANT TO SUBSECTION (C) OF SECTION FIVE
HUNDRED ONE OF THE INTERNAL REVENUE CODE, PROVIDED THAT NO PART OF THE
DONATED FUNDS, MEALS OR MEAL POINTS INURE TO THE BENEFIT OF SUCH SCHOOL,
COLLEGE, UNIVERSITY OR NONPROFIT ORGANIZATION; and
§ 2. Section 2 of chapter 678 of the laws of 2025 amending the tax law
relating to excluding certain food donations from sales tax, as amended
by chapter 35 of the laws of 2026, is amended to read as follows:
§ 2. This act shall take effect [July] JUNE 1, 2026.
§ 3. This act shall take effect immediately; provided, however, that
section one of this act shall take effect on the same date and in the
same manner as section 1 of chapter 678 of the laws of 2025, takes
effect.
PART DD
Section 1. Subdivision 1 of section 502 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 710 of the laws of
1990, is amended to read as follows:
1. A. A regional off-track betting corporation is hereby established
for each region, except the New York city region for which the New York
city off-track betting corporation established pursuant to and subject
to article six of this chapter shall constitute the regional corporation
and such article six shall govern such New York city off-track betting
corporation. Each regional corporation shall be a body corporate and
politic constituting a public benefit corporation. Each corporation
shall be administered by a board of directors consisting of two members
from each participating county containing a city of over one hundred
fifty thousand in population, according to the last federal census, and
one member from each other participating county. Notwithstanding any
other provision of law to the contrary, the members shall be appointed
by the county governing body, and may, at the discretion of such govern-
S. 9009--C 87 A. 10009--C
ing body of counties which have a population of less than two hundred
thousand, include sitting members of such governing body. A member of a
governing body who is appointed a director after July first, nineteen
hundred ninety shall not be compensated by the regional corporation;
provided, however, that the mayor of a city of over one hundred fifty
thousand that has elected to participate in the management of a corpo-
ration pursuant to subdivision two of this section shall, with the
approval of the city's legislative body, appoint one of the members to
which the county containing such city is entitled. In the case of the
corporation established for the Suffolk region and Nassau region, the
board of directors of each corporation shall consist of three members
appointed by the governing body of each county, not more than two of
whom shall be members of the same political party. Each director shall
serve at the pleasure of the governing body or mayor appointing [him]
SUCH DIRECTOR, as the case may be. A [chairman] CHAIR shall be elected
by the members to serve a term of one year.
B. NO PERSON WHO HAS SERVED AS A BOARD MEMBER OR OFFICER OF THE CORPO-
RATION SHALL WITHIN A PERIOD OF FIVE YEARS AFTER SUCH PERSON'S TERMI-
NATION OF SUCH SERVICE, REGARDLESS OF THE REASON FOR TERMINATION, (I) BE
APPOINTED, REAPPOINTED OR QUALIFIED AS A MEMBER OF THE CORPORATION; (II)
APPEAR OR PRACTICE BEFORE SUCH CORPORATION OR RECEIVE COMPENSATION FOR
ANY SERVICES RENDERED BY SUCH FORMER BOARD MEMBER OR OFFICER ON BEHALF
OF ANY PERSON, FIRM, CORPORATION OR ASSOCIATION IN RELATION TO ANY CASE,
PROCEEDING OR APPLICATION OR OTHER MATTER BEFORE SUCH CORPORATION; OR
(III) RECEIVE COMPENSATION FOR ANY SERVICES ON BEHALF OF ANY PERSON,
FIRM, CORPORATION OR ASSOCIATION TO APPEAR, PRACTICE OR DIRECTLY COMMU-
NICATE WITH THE BOARD OF DIRECTORS TO PROMOTE OR OPPOSE, DIRECTLY OR
INDIRECTLY, THE PASSAGE OF RESOLUTIONS BY SUCH BOARD OF DIRECTORS. NO
PERSON WHO HAS SERVED AS A BOARD MEMBER OR OFFICER OF THE CORPORATION
SHALL AFTER THE TERMINATION OF SUCH SERVICE APPEAR, PRACTICE, COMMUNI-
CATE OR OTHERWISE RENDER SERVICES BEFORE SUCH CORPORATION, OR THE BOARD
OF DIRECTORS THEREOF, OR RECEIVE COMPENSATION FOR ANY SUCH SERVICES
RENDERED BY SUCH PERSON ON BEHALF OF ANY PERSON, FIRM, CORPORATION OR
OTHER ENTITY IN RELATION TO ANY CASE, PROCEEDING, APPLICATION OR TRANS-
ACTION WITH RESPECT TO WHICH SUCH PERSON WAS DIRECTLY CONCERNED AND IN
WHICH SUCH PERSON PERSONALLY PARTICIPATED DURING THE PERIOD OF SUCH
SERVICE, OR WHICH WAS UNDER THEIR ACTIVE CONSIDERATION.
C. NO PERSON WHO IS APPOINTED TO BE A MEMBER OF THE BOARD OF DIRECTORS
MAY ATTEND OR PARTICIPATE IN ANY BOARD MEETINGS, INCLUDING EXECUTIVE
SESSIONS, UNTIL THAT PERSON'S APPLICATION FOR A LICENSE HAS BEEN
APPROVED BY THE COMMISSION.
§ 2. Subdivisions 6 and 7 of section 502-a of the racing, pari-mutuel
wagering and breeding law are renumbered subdivisions 7 and 8 and a new
subdivision 6 is added to read as follows:
6. A. NO PERSON WHO HAS SERVED AS A BOARD MEMBER OR OFFICER OF THE
CORPORATION SHALL WITHIN A PERIOD OF FIVE YEARS AFTER SUCH PERSON'S
TERMINATION OF SUCH SERVICE, REGARDLESS OF THE REASON FOR TERMINATION,
(I) BE APPOINTED, REAPPOINTED OR QUALIFIED AS A MEMBER OF THE CORPO-
RATION; (II) APPEAR OR PRACTICE BEFORE SUCH CORPORATION OR RECEIVE
COMPENSATION FOR ANY SERVICES RENDERED BY SUCH FORMER BOARD MEMBER OR
OFFICER ON BEHALF OF ANY PERSON, FIRM, CORPORATION OR ASSOCIATION IN
RELATION TO ANY CASE, PROCEEDING OR APPLICATION OR OTHER MATTER BEFORE
SUCH CORPORATION; OR (III) RECEIVE COMPENSATION FOR ANY SERVICES ON
BEHALF OF ANY PERSON, FIRM, CORPORATION OR ASSOCIATION TO APPEAR, PRAC-
TICE OR DIRECTLY COMMUNICATE WITH THE BOARD OF DIRECTORS TO PROMOTE OR
OPPOSE, DIRECTLY OR INDIRECTLY, THE PASSAGE OF RESOLUTIONS BY SUCH BOARD
S. 9009--C 88 A. 10009--C
OF DIRECTORS. NO PERSON WHO HAS SERVED AS A BOARD MEMBER OR OFFICER OF
THE CORPORATION SHALL AFTER THE TERMINATION OF SUCH SERVICE APPEAR,
PRACTICE, COMMUNICATE OR OTHERWISE RENDER SERVICES BEFORE SUCH CORPO-
RATION, OR THE BOARD OF DIRECTORS THEREOF, OR RECEIVE COMPENSATION FOR
ANY SUCH SERVICES RENDERED BY SUCH PERSON ON BEHALF OF ANY PERSON, FIRM,
CORPORATION OR OTHER ENTITY IN RELATION TO ANY CASE, PROCEEDING, APPLI-
CATION OR TRANSACTION WITH RESPECT TO WHICH SUCH PERSON WAS DIRECTLY
CONCERNED AND IN WHICH SUCH PERSON PERSONALLY PARTICIPATED DURING THE
PERIOD OF SUCH SERVICE, OR WHICH WAS UNDER THEIR ACTIVE CONSIDERATION.
B. NO PERSON WHO IS APPOINTED TO BE A MEMBER OF THE BOARD OF DIRECTORS
MAY ATTEND OR PARTICIPATE IN ANY BOARD MEETINGS, INCLUDING EXECUTIVE
SESSIONS, UNTIL THAT PERSON'S APPLICATION FOR A LICENSE HAS BEEN
APPROVED BY THE COMMISSION.
§ 3. Section 2 of part JJ of chapter 56 of the laws of 2023, amending
the racing, pari-mutuel wagering and breeding law, relating to the
membership of the board of directors of the western regional off-track
betting corporation, is amended to read as follows:
§ 2. This act shall take effect immediately; provided, however, that
effective immediately, cities and counties may take any action necessary
to begin the selection and appointment process for new board member
terms pursuant to this act; and provided further, that upon selection of
new board members, cities and counties shall notify the corporation of
their respective appointments via certified mail; and provided further,
that this act shall expire and be deemed repealed [four] FOURTEEN years
after such effective date.
§ 4. This act shall take effect immediately; provided, however, that
the amendments to section 502-a of the racing, pari-mutuel wagering and
breeding law made by section two of this act shall not affect the repeal
of such section and shall be deemed repealed therewith.
PART EE
Section 1. Subdivision 11 of section 458-a of the real property tax
law, as amended by chapter 77 of the laws of 2026, is amended to read as
follows:
11. In addition to any other exemption from taxation on real property
which may be allowed to veterans pursuant to the provisions of this
chapter, including subdivision three of section four hundred fifty-eight
of this title, A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY
ADOPT A LOCAL LAW OR RESOLUTION PROVIDING THAT the primary residence of
any seriously disabled veteran [who] SHALL BE FULLY EXEMPT FROM TAXATION
AND SPECIAL DISTRICT CHARGES, ASSESSMENTS AND SPECIAL AD VALOREM LEVIES,
PROVIDED THAT SUCH VETERAN MEETS ALL OTHER REQUIREMENTS OF THIS SECTION
AND SUCH VETERAN HAS MET AT LEAST ONE OF THE CRITERIA SET FORTH IN
PARAGRAPH (A) OF THIS SUBDIVISION AND THE CRITERION SET FORTH IN PARA-
GRAPH (B) OF THIS SUBDIVISION. TO BE ELIGIBLE FOR SUCH EXEMPTION, A
VETERAN:
(a)(i) [was] MUST HAVE BEEN discharged or released [therefrom under
honorable conditions] FROM ACTIVE MILITARY, NAVAL, SPACE OR AIR SERVICE,
INCLUDING ARMY AND AIR NATIONAL GUARD SERVICE PERFORMED PURSUANT TO
FEDERAL ORDERS UNDER TITLE 10 OF THE UNITED STATES CODE, UNDER HONORABLE
CONDITIONS; OR
(ii) [has] MUST HAVE a qualifying condition, as defined in section one
of the veterans' services law, and [has] MUST HAVE received a discharge
other than bad conduct or dishonorable from such service; or
S. 9009--C 89 A. 10009--C
(iii) [is] MUST BE a discharged LGBT veteran, as defined in section
one of the veterans' services law, and [has] MUST HAVE received a
discharge other than bad conduct or dishonorable from such service; and
(b) [(i) is] MUST BE considered BY THE UNITED STATES DEPARTMENT OF
VETERANS AFFAIRS to be permanently and totally disabled as a result of
military service[;
(ii) is rated one hundred percent disabled by the United States
department of veterans affairs;
(iii) has been rated by the United States department of veterans
affairs as individually unemployable; and
(iv) who is eligible for pecuniary assistance from the United States
government, or has received pecuniary assistance from the United States
government and has applied such assistance toward the acquisition or
modification of a suitable housing unit with special features or movable
facilities made necessary by the nature of the veterans' disability, and
the necessary land therefor shall be fully exempt from taxation and
special district charges, assessments and special ad valorem levies,
provided that such veteran meets all other requirements of this
section.], AS EVIDENCED BY A LETTER, OFFICIAL FORM, OR OTHER DOCUMENT
SENT TO SUCH VETERAN FROM SUCH DEPARTMENT THAT SPECIFICALLY STATES SUCH
VETERAN IS CONSIDERED TO BE PERMANENTLY AND TOTALLY DISABLED AS A RESULT
OF SUCH SERVICE.
(C) In no case shall the taxable assessed value of the property of a
qualifying veteran be reduced below zero. Nothing contained herein shall
be construed to require or authorize the discontinuance of any exemption
granted pursuant to subdivision three of section four hundred fifty-
eight of this title.
(D) EACH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT THAT ADOPTS A
LOCAL LAW OR RESOLUTION FOR THE EXEMPTION AUTHORIZED BY THIS SUBDIVISION
SHALL NOTIFY THE DEPARTMENT OF VETERANS' SERVICES WITHIN THIRTY DAYS OF
SUCH ADOPTION; PROVIDED, HOWEVER, THAT A FAILURE TO NOTIFY THE DEPART-
MENT OF VETERANS' SERVICES WITHIN THIRTY DAYS SHALL NOT RENDER SUCH
LOCAL LAW OR RESOLUTION INEFFECTIVE. THE DEPARTMENT OF VETERANS'
SERVICES SHALL COMPILE AND MAINTAIN A PUBLICLY AVAILABLE RECORD OF EACH
SUCH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT THAT HAS ADOPTED
SUCH EXEMPTION.
§ 2. This act shall take effect immediately and shall apply to assess-
ment rolls based on taxable status dates occurring on and after October
1, 2026.
PART FF
Section 1. Section 606 of the tax law is amended by adding a new
subsection (uuu) to read as follows:
(UUU) PROTECTING OUR WALLETS ENERGY REBATE (POWER) CREDIT. (1) A
TAXPAYER WHO MEETS THE ELIGIBILITY STANDARDS IN PARAGRAPH TWO OF THIS
SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS
ARTICLE IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE OF THIS SUBSECTION
FOR TAX YEAR TWO THOUSAND TWENTY-SIX.
(2) TO BE ELIGIBLE FOR THE CREDIT, THE TAXPAYER (OR TAXPAYERS FILING
JOINT RETURNS) (A) MUST HAVE BEEN A FULL-YEAR RESIDENT OF THE STATE OF
NEW YORK IN TAX YEAR TWO THOUSAND TWENTY-FOUR, (B) MUST HAVE TIMELY
FILED A RETURN FOR TAX YEAR TWO THOUSAND TWENTY-FOUR PURSUANT TO SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, DETERMINED WITH REGARD TO EXTEN-
SIONS PURSUANT TO SECTION SIX HUNDRED FIFTY-SEVEN OF THIS ARTICLE, (C)
(I) MUST HAVE HAD NEW YORK ADJUSTED GROSS INCOME OF THREE HUNDRED THOU-
S. 9009--C 90 A. 10009--C
SAND DOLLARS OR LESS IN TAX YEAR TWO THOUSAND TWENTY-FOUR IF THEY FILED
A NEW YORK STATE RESIDENT INCOME TAX RETURN AS MARRIED TAXPAYERS FILING
JOINTLY OR A QUALIFIED SURVIVING SPOUSE, OR (II) MUST HAVE HAD NEW YORK
ADJUSTED GROSS INCOME OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR LESS IN
TAX YEAR TWO THOUSAND TWENTY-FOUR IF THEY FILED A NEW YORK STATE RESI-
DENT INCOME TAX RETURN AS A SINGLE TAXPAYER, MARRIED TAXPAYER FILING A
SEPARATE RETURN, OR HEAD OF HOUSEHOLD, AND (D) MUST NOT HAVE BEEN
CLAIMED AS A DEPENDENT BY ANOTHER TAXPAYER IN TAX YEAR TWO THOUSAND
TWENTY-FOUR.
(3) AMOUNT OF CREDIT. (A) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STAN-
DARDS IN PARAGRAPH TWO WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN AS MARRIED TAXPAYERS FILING JOINTLY OR A QUALIFIED SURVIVING
SPOUSE, (I) WITH A NEW YORK ADJUSTED GROSS INCOME OF GREATER THAN ONE
HUNDRED FIFTY THOUSAND DOLLARS BUT NO GREATER THAN THREE HUNDRED THOU-
SAND DOLLARS IN TAX YEAR TWO THOUSAND TWENTY-FOUR, THE CREDIT AMOUNT
SHALL BE ONE HUNDRED FIFTY DOLLARS, OR (II) WITH A NEW YORK ADJUSTED
GROSS INCOME OF NO GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS IN
TAX YEAR TWO THOUSAND TWENTY-FOUR, THE CREDIT AMOUNT SHALL BE TWO
HUNDRED DOLLARS, AND (B) FOR TAXPAYERS WHO MEET THE ELIGIBILITY STAND-
ARDS IN PARAGRAPH TWO WHO FILED A NEW YORK STATE RESIDENT INCOME TAX
RETURN AS A SINGLE TAXPAYER, MARRIED TAXPAYER FILING A SEPARATE RETURN,
OR HEAD OF HOUSEHOLD WITH A NEW YORK ADJUSTED GROSS INCOME OF NO GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS IN TAX YEAR TWO THOUSAND TWEN-
TY-FOUR, THE CREDIT AMOUNT SHALL BE ONE HUNDRED DOLLARS.
(4) THE AMOUNT OF THE CREDIT 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. THE COMMISSIONER SHALL DETERMINE THE
TAXPAYER'S ELIGIBILITY FOR THIS CREDIT UTILIZING INFORMATION AVAILABLE
TO THE COMMISSIONER ON THE TAXPAYER'S PERSONAL INCOME TAX RETURN FILED
FOR TAX YEAR TWO THOUSAND TWENTY-FOUR. FOR THOSE TAXPAYERS WHOM THE
COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMISSIONER
SHALL ADVANCE A PAYMENT IN THE AMOUNT SPECIFIED IN PARAGRAPH THREE OF
THIS SUBSECTION. A TAXPAYER WHO FAILED TO RECEIVE AN ADVANCE PAYMENT
THAT THEY BELIEVE WAS DUE, OR WHO RECEIVED AN ADVANCE PAYMENT THAT THEY
BELIEVE IS LESS THAN THE AMOUNT THAT WAS DUE, MAY REQUEST PAYMENT OF THE
CLAIMED DEFICIENCY IN A MANNER PRESCRIBED BY THE COMMISSIONER.
§ 2. Notwithstanding any provision of law to the contrary, any credit
paid pursuant to this act, to the extent includible in gross income for
federal income tax purposes, shall not be subject to state or local
income tax.
§ 3. This act shall take effect immediately.
PART GG
Section 1. Subdivision 1 of section 115-a of the racing, pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended to read as follows:
1. In order to provide supplemental funding to support the operations
of the commission, a fee in the amount of ten dollars shall be assessed
and paid upon every horse entered in a pari-mutuel race in New York
state that actually starts in the race. BEGINNING JANUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, AN AMOUNT AS DETERMINED BY THE COMMISSION TO
SUPPORT THE STANDARDBRED TOTAL CARBON DIOXIDE ON-TRACK DRUG TESTING
PROGRAM OUTLINED IN SECTION NINE HUNDRED TWO-A OF THIS CHAPTER SHALL BE
ADDED TO SUCH FEE UPON EVERY STANDARDBRED HORSE ENTERED IN A PARI-MUTUEL
S. 9009--C 91 A. 10009--C
RACE IN NEW YORK STATE THAT ACTUALLY STARTS IN THE RACE. Such fee shall
be refunded to the owner or credited to the owner's account in the event
the horse does not actually start in the race. The commission shall, as
a condition of racing, require any corporation authorized under this
chapter to conduct pari-mutuel betting at a race meeting or races run
thereat, to require that each owner racing a horse shall have placed on
deposit at the time of entry with the horsemen's bookkeeper or similar
office of such corporation the required fee in the amount of ten dollars
per horse entered in a pari-mutuel race. Unless refunded or credited,
the total fee amount collected during the preceding month by the
horsemen's bookkeeper or similar office of such corporation shall be
paid to the commission on the first business day of each month. Payment
shall be accompanied by a report, under oath, showing such information
as the commission 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 the payment of the fee, shall be
payable in case any fee imposed by this subdivision is not paid when
due. If the commission determines that any fees received by it under
this subdivision were paid in error, the commission may cause the same
to be refunded without interest out of any monies collected hereunder,
provided an application therefor is filed with the commission within one
year from the time the erroneous payment is made.
§ 2. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 902-a to read as follows:
§ 902-A. STANDARDBRED TOTAL CARBON DIOXIDE (TCO2) ON-TRACK DRUG TEST-
ING PROGRAM. 1. PROGRAM. THE COMMISSION SHALL ESTABLISH AND ADMINISTER A
PROGRAM TO CONDUCT ON-TRACK DRUG TESTING FOR EXCESS LEVELS OF TCO2 IN
STANDARDBRED HORSES ENTERED TO RACE AT LICENSED HARNESS TRACKS IN THIS
STATE. SUCH PROGRAM SHALL INCLUDE ON-TRACK PRE-RACE TESTING DONE BY THE
COMMISSION OR ITS EMPLOYEES OR REPRESENTATIVES IN ACCORDANCE WITH THIS
SECTION AND REGULATIONS PROMULGATED BY THE COMMISSION. FOR THE PURPOSES
OF THIS SECTION, THE TERM "TCO2" SHALL MEAN TOTAL CARBON DIOXIDE.
2. RECURRING ANNUAL EXPENSES. (A) THE COMMISSION SHALL MANDATE AN
ADDITIONAL AMOUNT TO BE ADDED TO START FEES, OUTLINED IN SUBDIVISION ONE
OF SECTION ONE HUNDRED FIFTEEN-A OF THIS CHAPTER, NECESSARY TO COVER
FIFTY PERCENT OF THE COSTS TO SUPPORT THE PROGRAM ESTABLISHED BY THIS
SECTION FOR THE APPLICABLE CALENDAR YEAR.
(B) THE COMMISSION SHALL MANDATE CORPORATIONS OR ASSOCIATIONS AUTHOR-
IZED UNDER THIS CHAPTER TO CONDUCT PARI-MUTUEL BETTING AT A STANDARDBRED
RACE MEETING OR STANDARDBRED RACES RUN THEREAT TO MAKE PAYMENT, OR
PAYMENTS, TO THE RACING REGULATION ACCOUNT IN THE AMOUNT NECESSARY TO
COVER FIFTY PERCENT OF THE COSTS TO SUPPORT THE PROGRAM ESTABLISHED BY
THIS SECTION FOR THE APPLICABLE CALENDAR YEAR. THE COMMISSION SHALL
DETERMINE THE FREQUENCY AND MANNER OF SUCH PAYMENTS.
(C) (I) NO LATER THAN JANUARY THIRTY-FIRST OF THE APPLICABLE YEAR, THE
COMMISSION SHALL NOTICE THE APPLICABLE ORGANIZATION REPRESENTING AT
LEAST FIFTY-ONE PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES
OF THE APPLICABLE CORPORATION OR ASSOCIATION AUTHORIZED UNDER THIS CHAP-
TER TO CONDUCT PARI-MUTUEL BETTING AT A STANDARDBRED RACE MEETING OR
STANDARDBRED RACES RUN THEREAT OF THE ADDITIONAL AMOUNT TO BE INCLUDED
IN THE START FEES OUTLINED IN PARAGRAPH (A) OF THIS SUBDIVISION DURING
THE APPLICABLE CALENDAR YEAR.
(II) NO LATER THAN JANUARY THIRTY-FIRST OF THE APPLICABLE YEAR, THE
COMMISSION SHALL NOTICE CORPORATIONS OR ASSOCIATIONS AUTHORIZED UNDER
THIS CHAPTER TO CONDUCT PARI-MUTUEL BETTING AT A STANDARDBRED RACE MEET-
ING OR STANDARDBRED RACES RUN THEREAT OF THE AMOUNT, FREQUENCY AND
S. 9009--C 92 A. 10009--C
MANNER OF THE PAYMENT OR PAYMENTS OUTLINED IN PARAGRAPH (B) OF THIS
SUBDIVISION DURING THE APPLICABLE CALENDAR YEAR.
3. PRE-RACE TESTING. (A) BLOOD OR OTHER BIOLOGIC SAMPLES SHALL BE
TAKEN FROM AT LEAST THREE OF THE HORSES PROGRAMMED TO RACE OR FIFTY
PERCENT OF HORSES PROGRAMMED TO RACE, WHICHEVER IS HIGHER, PRIOR TO THE
RACE IN WHICH SUCH HORSE IS PROGRAMMED, AT A TIME AND LOCATION SPECIFIED
BY THE COMMISSION. HORSES SELECTED FOR SUCH SAMPLES SHALL BE SELECTED AT
RANDOM BY THE COMMISSION OR ITS EMPLOYEES OR REPRESENTATIVES.
(B) THE TRAINER OR SUCH TRAINER'S REPRESENTATIVE SHALL ACCOMPANY SUCH
HORSE AT THE PRESCRIBED TIME AND LOCATION AND SHALL MANAGE THE HORSE AS
DIRECTED. WILLFUL FAILURE TO BE PRESENT AT, REFUSAL TO PERMIT, OR INTER-
FERENCE WITH THE TAKING OF ANY SAMPLE PURSUANT TO THIS SUBDIVISION SHALL
CONSTITUTE A VIOLATION OF THIS SECTION AND MAY SUBJECT THE PERSON
RESPONSIBLE TO DISCIPLINARY ACTION BY THE COMMISSION PURSUANT TO THIS
CHAPTER.
(C) BLOOD SAMPLES SHALL BE TAKEN BY A VETERINARIAN OR VETERINARY TECH-
NICIAN AUTHORIZED BY THE COMMISSION AND LICENSED TO PRACTICE IN THIS
STATE.
(D) URINE SAMPLES MAY BE COLLECTED BY A COMMISSION INSPECTOR OR OTHER
PERSON AUTHORIZED BY THE COMMISSION.
(E) WHENEVER AN ON-TRACK TEST INDICATES THE PRESENCE OF EXCESS TCO2
LEVELS, IN A SAMPLE TAKEN FROM A HORSE, THE JUDGES SHALL SCRATCH THE
HORSE FROM THE RACE.
(F) UNLESS SPECIFICALLY PERMITTED IN WRITING BY THE PRESIDING JUDGE, A
HORSE FROM WHICH A PRE-RACE SAMPLE HAS BEEN TAKEN SHALL NOT BE REMOVED
FROM THE GROUNDS EXCEPT FOR TRANSPORT TO THE RACECOURSE WHERE SUCH HORSE
IS SCHEDULED TO RACE IF SUCH RACECOURSE IS NOT LOCATED ON THE GROUNDS
WHERE THE SAMPLE WAS TAKEN.
§ 3. This act shall take effect immediately.
PART HH
Section 1. Legislative findings. The residents of New York city and
many who do business here contribute daily to the health and vibrancy of
the city through their economic activity and the taxes they pay. Howev-
er, many of the city's most valuable homes are held as second homes,
allowing the owners of those homes to reap considerable benefits from
the city's broader economy, from city services, and from a vibrant real
estate market. The legislature finds that it is prudent to impose a
surcharge on the owners of these second homes to maintain important city
services.
The legislature further finds that this surcharge should be applied to
second homes with values of $5 million or more when measured by the
sales of comparable properties. Recognizing that many second homes in
New York city have not historically been valued using comparable sales
methods, the legislature finds that it is appropriate, for the initial
phase of the surcharge, to impose the surcharge on such properties using
current valuation methods and corresponding surcharge rates the legisla-
ture deems appropriate for this transitional period.
§ 2. The tax law is amended by adding a new article 30-C to read as
follows:
ARTICLE 30-C
CITY SURCHARGE ON PROPERTY THAT DOES NOT SERVE AS A PRIMARY RESIDENCE
SECTION 1350. IMPOSITION OF SURCHARGE.
1351. DEFINITIONS.
1352. PRIMARY RESIDENCE.
S. 9009--C 93 A. 10009--C
1353. SURCHARGE RATES.
1354. ADMINISTRATION OF SURCHARGE.
1355. ADMINISTRATIVE AND JUDICIAL REVIEW.
1356. INFORMATION SHARING.
§ 1350. IMPOSITION OF SURCHARGE. IN ADDITION TO ANY OTHER TAX OR
ASSESSMENT IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY
IMPOSED, BEGINNING ON JULY FIRST, TWO THOUSAND TWENTY-SIX, A SURCHARGE
IN ACCORDANCE WITH THIS ARTICLE ON A COVERED PROPERTY, OR IN THE CASE OF
A COVERED PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY, A RESI-
DENTIAL COOPERATIVE DWELLING UNIT, THAT IS NOT A PRIMARY RESIDENCE,
PROVIDED THAT (A) FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO
THOUSAND TWENTY-SIX, AND BEFORE JULY FIRST, TWO THOUSAND TWENTY-EIGHT,
THE PHASE ONE MARKET VALUE OF SUCH COVERED PROPERTY THAT IS A CLASS ONE
PROPERTY IS EQUAL TO OR GREATER THAN FIVE MILLION DOLLARS, THE PHASE ONE
MARKET VALUE OF SUCH COVERED PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM
DWELLING UNIT IS EQUAL TO OR GREATER THAN ONE MILLION DOLLARS, OR, IN
THE CASE OF A COVERED PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPER-
TY, THE PHASE ONE MARKET VALUE OF A RESIDENTIAL COOPERATIVE DWELLING
UNIT WITHIN SUCH RESIDENTIAL COOPERATIVE PROPERTY IS EQUAL TO OR GREATER
THAN ONE MILLION DOLLARS; AND (B) FOR FISCAL YEARS BEGINNING ON OR AFTER
JULY FIRST, TWO THOUSAND TWENTY-EIGHT, THE PHASE TWO MARKET VALUE OF
SUCH COVERED PROPERTY OR, IN THE CASE OF A COVERED PROPERTY THAT IS A
RESIDENTIAL COOPERATIVE PROPERTY, SUCH RESIDENTIAL COOPERATIVE DWELLING
UNIT, IS EQUAL TO OR GREATER THAN FIVE MILLION DOLLARS.
§ 1351. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "ADMINISTRATIVE CODE" MEANS THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK.
(B) "CLASS ONE PROPERTY" MEANS CLASS ONE, AS SUCH CLASS OF PROPERTY IS
DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW,
OTHER THAN SUCH PROPERTY DESCRIBED IN SUBPARAGRAPH (C) OF SUCH DEFI-
NITION.
(C) "CLASS TWO PROPERTY" MEANS CLASS TWO, AS SUCH CLASS OF PROPERTY IS
DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW.
(D) "COVERED OWNER" MEANS:
(1) AN OWNER OR OWNERS OF REAL PROPERTY CLASSIFIED AS CLASS ONE PROP-
ERTY;
(2) A TENANT-STOCKHOLDER OF A COOPERATIVE CORPORATION WHOSE INTEREST
IN A PORTION OF REAL PROPERTY HELD BY SUCH CORPORATION IS REPRESENTED BY
SHARES OF STOCK IN SUCH CORPORATION;
(3) AN OWNER OR OWNERS OF A RESIDENTIAL CONDOMINIUM DWELLING UNIT;
(4) WHERE REAL PROPERTY CLASSIFIED AS CLASS ONE OR A RESIDENTIAL
CONDOMINIUM DWELLING UNIT IS HELD, OR SHARES OF STOCK IN A COOPERATIVE
CORPORATION ARE HELD, IN TRUST, A BENEFICIAL OWNER OR OWNERS OF SUCH
TRUST, PROVIDED THAT SUCH BENEFICIAL OWNER OR OWNERS ARE THE SOLE BENE-
FICIARIES OF SUCH TRUST; OR
(5) WHERE REAL PROPERTY CLASSIFIED AS CLASS ONE OR A RESIDENTIAL
CONDOMINIUM DWELLING UNIT IS HELD, OR SHARES OF STOCK IN A COOPERATIVE
CORPORATION ARE HELD, BY A PARTNERSHIP, CORPORATION OR LIMITED LIABILITY
COMPANY, A PARTNER OR PARTNERS, SHAREHOLDER OR SHAREHOLDERS OR MEMBER OR
MEMBERS OF SUCH PARTNERSHIP, CORPORATION, OR LIMITED LIABILITY COMPANY,
RESPECTIVELY, PROVIDED THAT SUCH PARTNER OR PARTNERS, SHAREHOLDER OR
SHAREHOLDERS, OR MEMBER OR MEMBERS HOLD A MAJORITY INTEREST IN SUCH
PARTNERSHIP, CORPORATION OR LIMITED LIABILITY COMPANY RESPECTIVELY.
(E) "COVERED PROPERTY" MEANS REAL PROPERTY, OTHER THAN EXCLUDED PROP-
ERTY, CLASSIFIED AS:
S. 9009--C 94 A. 10009--C
(1) CLASS ONE PROPERTY, OTHER THAN VACANT LAND;
(2) CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY IN
WHICH AT LEAST ONE RESIDENTIAL COOPERATIVE DWELLING UNIT: (A) HAS A
PHASE ONE MARKET VALUE EQUAL TO OR GREATER THAN ONE MILLION DOLLARS OR
PHASE TWO MARKET VALUE EQUAL TO OR GREATER THAN FIVE MILLION DOLLARS;
AND (B) IS NOT A PRIMARY RESIDENCE; AND
(3) CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELLING
UNIT.
(F) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE IN A CITY
HAVING A POPULATION OF ONE MILLION OR MORE.
(G) "EXCLUDED PROPERTY" MEANS A CLASS ONE OR CLASS TWO PROPERTY:
(1) FOR WHICH A TEMPORARY OR PERMANENT CERTIFICATE OF OCCUPANCY IS
REQUIRED AND HAS NOT YET BEEN ISSUED; OR
(2) A RESIDENTIAL CONDOMINIUM DWELLING UNIT OR RESIDENTIAL COOPERATIVE
DWELLING UNIT THAT IS SUBJECT TO AN OFFERING PLAN REQUIRED BY SECTION
THREE HUNDRED FIFTY-TWO-E OF THE GENERAL BUSINESS LAW AND SUCH UNIT HAS
NOT BEEN SOLD, OR AN ECONOMIC INTEREST IN SUCH UNIT HAS NOT BEEN TRANS-
FERRED, BY THE PERSON, PARTNERSHIP, CORPORATION, COMPANY, TRUST OR ASSO-
CIATION WHO HAS FILED SUCH PLAN.
(H) "IMPUTED COOPERATIVE PHASE ONE MARKET VALUE" MEANS THE MARKET
VALUE OF A RESIDENTIAL COOPERATIVE DWELLING UNIT IN A RESIDENTIAL COOP-
ERATIVE PROPERTY, CALCULATED AS THE PRODUCT OF:
(1) THE MARKET VALUE OF SUCH RESIDENTIAL COOPERATIVE PROPERTY AS
DETERMINED BY THE DEPARTMENT OF FINANCE PURSUANT TO CHAPTER FIFTY-EIGHT
OF THE NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE
DESCRIBED IN THIS ARTICLE IS IMPOSED; AND
(2) THE QUOTIENT OF (A) THE SHARES IN A COOPERATIVE CORPORATION
REPRESENTING AN INTEREST IN SUCH RESIDENTIAL COOPERATIVE DWELLING UNIT;
DIVIDED BY (B) THE TOTAL SHARES OF STOCK IN SUCH COOPERATIVE CORPO-
RATION.
(I) "NOTICE OF SURCHARGE" MEANS A NOTICE ISSUED BY THE DEPARTMENT OF
FINANCE TO AN OWNER INDICATING THAT A COVERED PROPERTY, OR, IN THE CASE
OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELL-
ING UNIT, IS, OR MAY BE, SUBJECT TO THE SURCHARGE AUTHORIZED BY THIS
ARTICLE, INCLUDING THE PHASE ONE MARKET VALUE OR PHASE TWO MARKET VALUE,
AS APPLICABLE, OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE
DWELLING UNIT AND A DETERMINATION BY THE DEPARTMENT OF FINANCE THAT SUCH
COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS NOT A
PRIMARY RESIDENCE.
(J) "OWNER" MEANS:
(1) AN OWNER OR OWNERS OF REAL PROPERTY CLASSIFIED AS CLASS ONE PROP-
ERTY;
(2) A TENANT-STOCKHOLDER OF A COOPERATIVE CORPORATION WHOSE INTEREST
IN A PORTION OF REAL PROPERTY HELD BY SUCH CORPORATION IS REPRESENTED BY
SHARES OF STOCK IN SUCH CORPORATION, OR SUCH CORPORATION; OR
(3) AN OWNER OR OWNERS OF A RESIDENTIAL CONDOMINIUM DWELLING UNIT.
(K) "PHASE ONE MARKET VALUE" MEANS:
(1) FOR A CLASS ONE PROPERTY, THE MARKET VALUE OF A COVERED PROPERTY
AS DETERMINED BY THE DEPARTMENT OF FINANCE PURSUANT TO CHAPTER FIFTY-
EIGHT OF THE NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE
SURCHARGE DESCRIBED IN THIS ARTICLE IS IMPOSED;
(2) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELL-
ING UNIT, THE MARKET VALUE OF SUCH RESIDENTIAL CONDOMINIUM DWELLING UNIT
AS DETERMINED BY THE DEPARTMENT OF FINANCE PURSUANT TO CHAPTER FIFTY-
EIGHT OF THE NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE
SURCHARGE DESCRIBED IN THIS ARTICLE IS IMPOSED; AND
S. 9009--C 95 A. 10009--C
(3) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPER-
TY, THE IMPUTED COOPERATIVE PHASE ONE MARKET VALUE FOR ANY RESIDENTIAL
COOPERATIVE DWELLING UNIT IN SUCH RESIDENTIAL COOPERATIVE PROPERTY.
(L) "PHASE TWO MARKET VALUE" MEANS:
(1) FOR A CLASS ONE PROPERTY, THE MARKET VALUE OF A COVERED PROPERTY
AS DETERMINED BY THE DEPARTMENT OF FINANCE PURSUANT TO CHAPTER FIFTY-
EIGHT OF THE NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE
SURCHARGE DESCRIBED IN THIS ARTICLE IS IMPOSED;
(2) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELL-
ING UNIT, THE MARKET VALUE OF SUCH RESIDENTIAL CONDOMINIUM DWELLING
UNIT, AS DETERMINED BY THE DEPARTMENT OF FINANCE PURSUANT TO CHAPTER
FIFTY-EIGHT OF THE NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH
THE SURCHARGE DESCRIBED IN THIS ARTICLE IS IMPOSED, PROVIDED THAT SUCH
MARKET VALUE SHALL BE DETERMINED USING A METHOD THAT CONSIDERS SALES OF
COMPARABLE RESIDENTIAL CONDOMINIUM DWELLING UNITS OR COMPARABLE RESIDEN-
TIAL COOPERATIVE DWELLING UNITS WITHOUT REGARD TO THE RESTRICTIONS
DESCRIBED IN SECTION FIVE HUNDRED EIGHTY-ONE OF THE REAL PROPERTY TAX
LAW OR SECTION THREE HUNDRED THIRTY-NINE-Y OF THE REAL PROPERTY LAW; AND
(3) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPER-
TY, THE MARKET VALUE OF ANY RESIDENTIAL COOPERATIVE DWELLING UNIT IN
SUCH RESIDENTIAL COOPERATIVE PROPERTY, AS DETERMINED BY THE DEPARTMENT
OF FINANCE PURSUANT TO CHAPTER FIFTY-EIGHT OF THE NEW YORK CITY CHARTER
FOR THE FISCAL YEAR IN WHICH THE SURCHARGE DESCRIBED IN THIS ARTICLE IS
IMPOSED, PROVIDED THAT SUCH MARKET VALUE SHALL BE DETERMINED USING A
METHOD THAT CONSIDERS SALES OF COMPARABLE RESIDENTIAL COOPERATIVE DWELL-
ING UNITS OR COMPARABLE RESIDENTIAL CONDOMINIUM DWELLING UNITS WITHOUT
REGARD TO THE RESTRICTIONS FOUND IN SECTION FIVE HUNDRED EIGHTY-ONE OF
THE REAL PROPERTY TAX LAW.
(M) "PRIMARY RESIDENCE" MEANS THE USE OF A COVERED PROPERTY, OR, IN
THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPER-
ATIVE DWELLING UNIT, AS OF THE TAXABLE STATUS DATE IMMEDIATELY PRECEDING
THE FISCAL YEAR IN WHICH THE SURCHARGE DESCRIBED BY THIS ARTICLE IS
IMPOSED, AS A PRIMARY RESIDENCE OF (1) ONE OR MORE OF THE COVERED
OWNERS, OR AN IMMEDIATE FAMILY MEMBER OF ONE OR MORE OF THE COVERED
OWNERS, PROVIDED SUCH COVERED OWNERS ARE NATURAL PERSONS; OR (2) ONE OR
MORE LESSEES, AND ANY SUB-LESSEES TO WHICH A LESSEE HAS SUBLET THE
COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT PURSUANT TO
SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY
LAW, PROVIDED ANY SUCH LESSEE OR SUB-LESSEE IS A NATURAL PERSON OCCUPY-
ING SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
PURSUANT TO A BONA FIDE LEASE AGREEMENT NEGOTIATED IN AN ARMS-LENGTH
TRANSACTION WITH A TERM OF NOT LESS THAN ONE YEAR. FOR PURPOSES OF THIS
ARTICLE, THE PHRASE "IMMEDIATE FAMILY MEMBER" MEANS A SPOUSE, CHILD,
SIBLING, PARENT, GRANDPARENT, OR GRANDCHILD.
(N) "RESIDENTIAL CONDOMINIUM DWELLING UNIT" MEANS A UNIT, AS DEFINED
IN SECTION THREE HUNDRED THIRTY-NINE-E OF THE REAL PROPERTY LAW, HELD IN
A CONDOMINIUM FORM OF OWNERSHIP AND USED AS RESIDENTIAL REAL PROPERTY,
OTHER THAN: (1) SUCH A UNIT THAT IS RESIDENTIAL COOPERATIVE PROPERTY; OR
(2) SUCH A UNIT THAT INCLUDES MORE THAN THREE DWELLING UNITS AND ALL
SUCH DWELLING UNITS ARE HELD BY THE SAME OWNER, EXCEPT WHERE THE DEPART-
MENT OF FINANCE DETERMINES THAT A UNIT HAS BEEN DIVIDED INTO MORE THAN
THREE UNITS TO AVOID APPLICATION OF THE SURCHARGE.
(O) "RESIDENTIAL COOPERATIVE DWELLING UNIT" MEANS A DWELLING UNIT IN
REAL PROPERTY HELD BY A COOPERATIVE CORPORATION WHERE AN OWNER IS A
TENANT-STOCKHOLDER OF SUCH COOPERATIVE CORPORATION AND SUCH DWELLING
UNIT IS USED AS RESIDENTIAL REAL PROPERTY.
S. 9009--C 96 A. 10009--C
(P) "RESIDENTIAL COOPERATIVE PROPERTY" MEANS REAL PROPERTY OWNED OR
LEASED BY A COOPERATIVE CORPORATION AND THAT CONTAINS ONE OR MORE RESI-
DENTIAL COOPERATIVE DWELLING UNITS.
(Q) "TAXABLE STATUS DATE" MEANS THE JANUARY FIFTH IMMEDIATELY PRECED-
ING THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED PURSUANT TO THIS
ARTICLE.
§ 1352. PRIMARY RESIDENCE. (A) DETERMINATION OF PRIMARY RESIDENCY. (1)
THE DEPARTMENT OF FINANCE SHALL MAKE, ON AN ANNUAL BASIS, AN INITIAL
DETERMINATION THAT A COVERED PROPERTY, OR, IN THE CASE OF A COVERED
PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOP-
ERATIVE DWELLING UNIT, THAT HAS A PHASE ONE OR PHASE TWO MARKET VALUE
EQUAL TO, OR GREATER THAN, THE THRESHOLD PROVIDED IN SECTION THIRTEEN
HUNDRED FIFTY OF THIS ARTICLE, IS NOT A PRIMARY RESIDENCE. THE DEPART-
MENT OF FINANCE SHALL MAKE A DETERMINATION OF PRIMARY RESIDENCE BASED ON
FACTORS IDENTIFIED BY RULES OF THE DEPARTMENT OF FINANCE, INCLUDING BUT
NOT LIMITED TO WHETHER SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE
DWELLING UNIT WAS OCCUPIED IN AGGREGATE FOR A MAJORITY OF DAYS DURING A
CALENDAR YEAR BY A COVERED OWNER OF SUCH COVERED PROPERTY OR RESIDENTIAL
COOPERATIVE DWELLING UNIT. THE DEPARTMENT OF FINANCE SHALL MAKE SUCH
INITIAL DETERMINATION BASED ON INFORMATION AVAILABLE TO SUCH DEPARTMENT.
(2) THE DEPARTMENT OF FINANCE SHALL PROVIDE NOTICE TO THE OWNER OF A
COVERED PROPERTY, OR, IN THE CASE OF A COVERED PROPERTY THAT IS A RESI-
DENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT,
OF SUCH INITIAL DETERMINATION, PROVIDED THAT, FOR THE FISCAL YEAR BEGIN-
NING JULY FIRST, TWO THOUSAND TWENTY-SIX, SUCH DEPARTMENT SHALL PROVIDE
SUCH NOTICE NO LATER THAN AUGUST THIRTIETH, TWO THOUSAND TWENTY-SIX.
SUCH NOTICE SHALL INCLUDE AN OPPORTUNITY FOR SUCH OWNER TO SUBMIT PROOF
OF PRIMARY RESIDENCE, TO THE SATISFACTION OF SUCH DEPARTMENT, IN ACCORD-
ANCE WITH A TIME PERIOD ESTABLISHED BY RULES OF SUCH DEPARTMENT. THE
DEPARTMENT OF FINANCE MAY REQUIRE THAT SUCH OWNER PROVIDE A CERTIF-
ICATION THAT SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING
UNIT IS A PRIMARY RESIDENCE, AS WELL AS ANY DOCUMENTATION DEMONSTRATING:
(A) THAT A COVERED OWNER PROVIDED THE ADDRESS OF SUCH COVERED PROPERTY
OR RESIDENTIAL COOPERATIVE DWELLING UNIT AS SUCH COVERED OWNER'S PERMA-
NENT HOME ADDRESS ON THE NEW YORK STATE RESIDENT INCOME TAX RETURN FILED
BY SUCH COVERED OWNER FOR THE CALENDAR YEAR THAT ENDS IMMEDIATELY
PRECEDING THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED;
(B) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
RECEIVED A REAL PROPERTY TAX EXEMPTION PURSUANT TO SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW DURING THE FISCAL YEAR IMME-
DIATELY PRECEDING THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED OR
THE OWNER OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING
UNIT RECEIVED A TAX CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX
HUNDRED SIX OF THE TAX LAW FOR SUCH COVERED PROPERTY OR RESIDENTIAL
COOPERATIVE DWELLING UNIT FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING
THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED; OR
(C) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS
THE PRIMARY RESIDENCE OF ONE OR MORE LESSEES OR SUB-LESSEES TO WHICH A
LESSEE HAS SUBLET SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE
DWELLING UNIT PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED TWEN-
TY-SIX-B OF THE REAL PROPERTY LAW OR AN IMMEDIATE FAMILY MEMBER OF A
COVERED OWNER.
(3) AFTER CONSIDERATION OF A SUBMISSION OF PROOF OF PRIMARY RESIDENCE
BY A COVERED OWNER PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION, AND
OTHER AVAILABLE INFORMATION, THE DEPARTMENT OF FINANCE SHALL DETERMINE
WHETHER SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
S. 9009--C 97 A. 10009--C
IS NOT A PRIMARY RESIDENCE. SUCH DETERMINATION SHALL CONSTITUTE A FINAL
DETERMINATION OF THE DEPARTMENT OF FINANCE.
(4) THE DEPARTMENT OF FINANCE MAY REQUIRE ELECTRONIC SUBMISSION OF ANY
CERTIFICATION OR DOCUMENTATION DESCRIBED IN THIS SECTION.
(5) FAILURE TO PROVIDE THE NOTICE REQUIRED BY THIS SECTION SHALL NOT
AFFECT THE VALIDITY OF THE IMPOSITION OF THE SURCHARGE AUTHORIZED BY
THIS ARTICLE.
(B) PROMULGATION OF RULES. THE DEPARTMENT OF FINANCE MAY PROMULGATE
RULES TO:
(1) SPECIFY ADDITIONAL FACTORS OR DOCUMENTATION THAT MAY ASSIST IN THE
INITIAL OR FINAL DETERMINATION OF WHETHER A COVERED PROPERTY, OR, IN THE
CASE OF A COVERED PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY, A
RESIDENTIAL COOPERATIVE DWELLING UNIT, IS A PRIMARY RESIDENCE; AND
(2) ESTABLISH A PROCESS THROUGH WHICH THE DEPARTMENT OF FINANCE MAY
AUDIT ANY CERTIFICATION OR DOCUMENTATION OF PRIMARY RESIDENCY SUBMITTED
PURSUANT TO THIS SECTION WITHIN SIX YEARS OF SUCH SUBMISSION.
§ 1353. SURCHARGE RATES. THE SURCHARGE SHALL BE CALCULATED AS FOLLOWS:
(A) FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND
TWENTY-SIX, AND BEFORE JULY FIRST, TWO THOUSAND TWENTY-EIGHT, (1) FOR
COVERED PROPERTY THAT IS IN CLASS ONE, WHERE THE PHASE ONE MARKET VALUE
IS (A) GREATER THAN OR EQUAL TO FIVE MILLION DOLLARS, BUT LESS THAN OR
EQUAL TO FIFTEEN MILLION DOLLARS, AT A RATE OF 0.8 PERCENT; (B) GREATER
THAN FIFTEEN MILLION DOLLARS, BUT LESS THAN OR EQUAL TO TWENTY-FIVE
MILLION DOLLARS, AT A RATE OF 1.05 PERCENT; (C) GREATER THAN TWENTY-FIVE
MILLION DOLLARS, AT A RATE OF 1.3 PERCENT; AND (2) FOR COVERED PROPERTY
THAT IS A RESIDENTIAL CONDOMINIUM DWELLING UNIT OR, IN THE CASE OF A
RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING
UNIT, WHERE THE PHASE ONE MARKET VALUE IS (A) GREATER THAN OR EQUAL TO
ONE MILLION DOLLARS, BUT LESS THAN OR EQUAL TO THREE MILLION DOLLARS, AT
A RATE OF 4.0 PERCENT; (B) GREATER THAN THREE MILLION DOLLARS, BUT LESS
THAN OR EQUAL TO FIVE MILLION DOLLARS, AT A RATE OF 5.25 PERCENT; (C)
GREATER THAN FIVE MILLION DOLLARS, AT A RATE OF 6.5 PERCENT.
(B) FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND
TWENTY-EIGHT, FOR COVERED PROPERTY OR, IN THE CASE OF A RESIDENTIAL
COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT, WHERE THE
PHASE TWO MARKET VALUE IS (1) GREATER THAN OR EQUAL TO FIVE MILLION
DOLLARS, BUT LESS THAN OR EQUAL TO FIFTEEN MILLION DOLLARS, AT A RATE OF
0.8 PERCENT; (2) GREATER THAN FIFTEEN MILLION DOLLARS, BUT LESS THAN OR
EQUAL TO TWENTY-FIVE MILLION DOLLARS, AT A RATE OF 1.05 PERCENT; (3)
GREATER THAN TWENTY-FIVE MILLION DOLLARS, AT A RATE OF 1.3 PERCENT.
§ 1354. ADMINISTRATION OF SURCHARGE. (A) THE DEPARTMENT OF FINANCE
SHALL ADD THE SURCHARGE AUTHORIZED BY THIS ARTICLE TO THE STATEMENT OF
ACCOUNT OF A COVERED PROPERTY. IN THE CASE OF A RESIDENTIAL COOPERATIVE
PROPERTY, THE DEPARTMENT OF FINANCE SHALL ADD TO THE STATEMENT OF
ACCOUNT OF SUCH RESIDENTIAL COOPERATIVE PROPERTY THE SUM OF ANY
SURCHARGES AUTHORIZED BY THIS ARTICLE FOR EACH RESIDENTIAL COOPERATIVE
DWELLING UNIT IN SUCH RESIDENTIAL COOPERATIVE PROPERTY WHERE SUCH DWELL-
ING UNIT: (1) HAS A PHASE ONE OR PHASE TWO MARKET VALUE EQUAL TO, OR
GREATER THAN, THE THRESHOLD PROVIDED IN SECTION THIRTEEN HUNDRED FIFTY
OF THIS ARTICLE; AND (2) DOES NOT SERVE AS A PRIMARY RESIDENCE. SUCH
SURCHARGE SHALL BE DUE AND PAYABLE IN THE SAME MANNER AS REAL PROPERTY
TAXES ARE DUE AND PAYABLE PURSUANT TO SECTION FIFTEEN HUNDRED NINETEEN-A
OF THE NEW YORK CITY CHARTER. THE DEPARTMENT OF FINANCE SHALL ADMINISTER
AND ENFORCE THIS SURCHARGE, TO THE GREATEST EXTENT PRACTICABLE NOT
INCONSISTENT WITH THIS SECTION, IN THE SAME MANNER USED TO ADMINISTER
S. 9009--C 98 A. 10009--C
AND ENFORCE REAL PROPERTY TAXES, EXCEPT THAT ANY ABATEMENT, CREDIT OR
EXEMPTION AUTHORIZED BY LAW SHALL NOT APPLY TO SUCH SURCHARGE.
(B) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, ANY SURCHARGE
IMPOSED ON A COVERED PROPERTY IN THE FISCAL YEAR COMMENCING ON JULY
FIRST, TWO THOUSAND TWENTY-SIX, SHALL BE DUE AND PAYABLE ON THE SAME
DATE AS THE SECOND SEMI-ANNUAL INSTALLMENT OF REAL PROPERTY TAXES IS
DUE, AS DESCRIBED IN SECTION FIFTEEN HUNDRED NINETEEN-A OF THE CHARTER
OF THE CITY OF NEW YORK.
(C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE THE
DEPARTMENT OF FINANCE ADDS THE SUM OF ANY SURCHARGES AUTHORIZED BY THIS
ARTICLE FOR A RESIDENTIAL COOPERATIVE DWELLING UNIT PURSUANT TO SUBDIVI-
SION (A) OF THIS SECTION TO THE STATEMENT OF ACCOUNT OF A RESIDENTIAL
COOPERATIVE PROPERTY, EACH SUCH SURCHARGE SHALL BE COLLECTED BY THE
COOPERATIVE CORPORATION FROM THE TENANT-STOCKHOLDER OF SUCH COOPERATIVE
CORPORATION WHOSE INTEREST IN EACH SUCH RESIDENTIAL COOPERATIVE DWELLING
UNIT IS REPRESENTED BY SHARES OF STOCK IN SUCH CORPORATION.
(D) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE
SURCHARGE IMPOSED ON A COVERED PROPERTY PURSUANT TO THIS ARTICLE SHALL
BE SEPARATE AND DISTINCT FROM ANY OTHER TAX LEVIED ON REAL PROPERTY. ANY
REVENUE COLLECTED AS A RESULT OF THE IMPOSITION OF THIS SURCHARGE SHALL
NOT BE INCLUDED IN THE CALCULATION OF THE TAX LEVY FOR PURPOSES OF
DETERMINING CLASS SHARES PURSUANT TO ARTICLE EIGHTEEN OF THE REAL PROP-
ERTY TAX LAW, SHALL NOT BE SUBJECT TO APPORTIONMENT AMONG CLASSES OF
REAL PROPERTY, AND SHALL NOT BE CONSIDERED WHEN ESTABLISHING TAX RATES
FOR ANY CLASS OF PROPERTY. SUCH REVENUE SHALL BE CONSIDERED RECEIPTS
OTHER THAN TAXES ON REAL PROPERTY FOR THE PURPOSES OF SECTION FIFTEEN
HUNDRED FIFTEEN OF THE NEW YORK CITY CHARTER.
(E) THE DEPARTMENT OF FINANCE MAY PROMULGATE ANY RULES:
(1) NECESSARY TO IMPLEMENT THIS ARTICLE, INCLUDING, BUT NOT LIMITED
TO, RULES:
(A) TO ADDRESS A CHANGE IN OWNERSHIP OF A COVERED PROPERTY OR A RESI-
DENTIAL COOPERATIVE DWELLING UNIT, OR ILLNESS OR DEATH OF AN OWNER OF A
COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT;
(B) TO AUTHORIZE PERSONS OTHER THAN A COVERED OWNER TO SUBMIT PROOF OF
PRIMARY RESIDENCY ON BEHALF OF A COVERED OWNER;
(C) RELATING TO REQUIREMENTS FOR PROVISION OF NOTICE OF SURCHARGE; OR
(D) TO ESTABLISH WHEN A SALE OF A RESIDENTIAL CONDOMINIUM DWELLING
UNIT, OR A TRANSFER OF AN ECONOMIC INTEREST IN A RESIDENTIAL COOPERATIVE
DWELLING UNIT, HAS OCCURRED FOR PURPOSES OF PARAGRAPH TWO OF SUBDIVISION
(G) OF SECTION THIRTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE.
(2) TO ESTABLISH PENALTIES NOT EXCEEDING FIFTY PERCENT OF THE
SURCHARGE IMPOSED ON A COVERED PROPERTY BY THIS ARTICLE IF, AFTER NOTICE
AND A HEARING, THE DEPARTMENT OF FINANCE DETERMINES THAT:
(A) ANY CERTIFICATION OR DOCUMENTATION SUBMITTED TO THE DEPARTMENT OF
FINANCE CONTAINS INACCURATE OR MISLEADING INFORMATION THAT: (I) IS MATE-
RIAL TO THE DETERMINATION OF THE IMPOSITION OF SUCH SURCHARGE, INCLUDING
A DETERMINATION RELATING TO PRIMARY RESIDENCE; AND (II) WAS SUBMITTED
NEGLIGENTLY OR IN BAD FAITH; OR
(B) A COVERED PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM UNIT HAS BEEN
DIVIDED INTO MORE THAN THREE UNITS TO AVOID APPLICATION OF SUCH
SURCHARGE AND THE OWNER OF SUCH COVERED PROPERTY HAS MADE SUCH DIVISION
IN BAD FAITH.
(F) THE DEPARTMENT OF FINANCE MAY ENFORCE AND COLLECT ANY PENALTY
IMPOSED PURSUANT TO THE AUTHORITY SET FORTH IN SUBSECTION (E) OF THIS
SECTION IN THE SAME MANNER AS THE DEPARTMENT OF FINANCE ENFORCES AND
COLLECTS THE SURCHARGE AUTHORIZED BY THIS ARTICLE.
S. 9009--C 99 A. 10009--C
(G) THE COMMISSIONER OF THE DEPARTMENT OF FINANCE MAY SUBPOENA AND
REQUIRE THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS
AND DOCUMENTS TO SECURE INFORMATION PERTINENT TO THE DETERMINATION OF
THE SURCHARGE, INCLUDING A DETERMINATION RELATING TO PRIMARY RESIDENCE.
§ 1355. ADMINISTRATIVE AND JUDICIAL REVIEW. (A) NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY, AN OWNER OF A COVERED PROPERTY, OR, IN
THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPER-
ATIVE DWELLING UNIT, MAY SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF THE
IMPOSITION OF THE SURCHARGE ON SUCH COVERED PROPERTY OR RESIDENTIAL
COOPERATIVE DWELLING UNIT PURSUANT TO THE PROVISIONS OF THE ADMINISTRA-
TIVE CODE IMPOSING SUCH SURCHARGE.
(B) THE REMEDIES PROVIDED BY THE PROVISIONS OF THE ADMINISTRATIVE CODE
IMPOSING SUCH SURCHARGE SHALL BE THE EXCLUSIVE REMEDIES AVAILABLE TO ANY
PERSON FOR THE REVIEW OF LIABILITY OF THE SURCHARGE AUTHORIZED BY THIS
ARTICLE.
§ 1356. INFORMATION SHARING. A CITY HAVING A POPULATION OF ONE MILLION
OR MORE IMPOSING A SURCHARGE PURSUANT TO THIS ARTICLE SHALL, UPON
REQUEST BY THE COMMISSIONER OF TAXATION AND FINANCE, PROVIDE THE DEPART-
MENT OF TAXATION AND FINANCE WITH ANY RECORDS IN ITS POSSESSION USED OR
CONSIDERED IN DETERMINING WHETHER A COVERED PROPERTY, OR, IN THE CASE OF
A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING
UNIT, IS NOT A PRIMARY RESIDENCE. THE DEPARTMENT OF TAXATION AND FINANCE
SHALL, UPON REQUEST BY SUCH CITY, PROVIDE SUCH CITY WITH ANY RECORDS IN
ITS POSSESSION CONTAINED IN ANY RETURN FILED PURSUANT TO ARTICLE THIRTY
OF THIS CHAPTER OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER
SUCH ARTICLE FOR THE PURPOSES OF IMPLEMENTING SUCH SURCHARGE. INFORMA-
TION SHARED PURSUANT TO THIS SUBSECTION SHALL NOT BE SUBJECT TO DISCLO-
SURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
§ 3. Title 11 of the administrative code of the city of New York is
amended by adding a new chapter 32 to read as follows:
CHAPTER 32
SURCHARGE ON PROPERTY THAT DOES NOT SERVE AS A PRIMARY RESIDENCE
§ 11-3201 DEFINITIONS. AS USED IN THIS CHAPTER, THE FOLLOWING TERMS
HAVE THE FOLLOWING MEANINGS:
CLASS ONE PROPERTY. THE TERM "CLASS ONE PROPERTY" MEANS CLASS ONE, AS
SUCH CLASS OF PROPERTY IS DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THE
REAL PROPERTY TAX LAW, OTHER THAN SUCH PROPERTY DESCRIBED IN SUBPARA-
GRAPH (C) OF SUCH DEFINITION.
CLASS TWO PROPERTY. THE TERM "CLASS TWO PROPERTY" MEANS CLASS TWO, AS
SUCH CLASS OF PROPERTY IS DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THE
REAL PROPERTY TAX LAW.
COMMISSIONER. THE TERM "COMMISSIONER" MEANS THE COMMISSIONER OF THE
DEPARTMENT OF FINANCE.
COVERED OWNER. THE TERM "COVERED OWNER" MEANS:
(I) AN OWNER OR OWNERS OF REAL PROPERTY CLASSIFIED AS CLASS ONE PROP-
ERTY;
(II) A TENANT-STOCKHOLDER OF A COOPERATIVE CORPORATION WHOSE INTEREST
IN A PORTION OF REAL PROPERTY HELD BY SUCH CORPORATION IS REPRESENTED BY
SHARES OF STOCK IN SUCH CORPORATION;
(III) AN OWNER OR OWNERS OF A RESIDENTIAL CONDOMINIUM DWELLING UNIT;
(IV) WHERE REAL PROPERTY CLASSIFIED AS CLASS ONE OR A RESIDENTIAL
CONDOMINIUM DWELLING UNIT IS HELD, OR SHARES OF STOCK IN A COOPERATIVE
CORPORATION ARE HELD, IN TRUST, A BENEFICIAL OWNER OF SUCH TRUST,
PROVIDED THAT SUCH BENEFICIAL OWNER OR OWNERS ARE THE SOLE BENEFICIARIES
OF SUCH TRUST; OR
S. 9009--C 100 A. 10009--C
(V) WHERE REAL PROPERTY CLASSIFIED AS CLASS ONE OR A RESIDENTIAL
CONDOMINIUM DWELLING UNIT IS HELD, OR SHARES OF STOCK IN A COOPERATIVE
CORPORATION ARE HELD, BY A PARTNERSHIP, CORPORATION OR LIMITED LIABILITY
COMPANY, A PARTNER OR PARTNERS, SHAREHOLDER OR SHAREHOLDERS OR MEMBER OR
MEMBERS OF SUCH PARTNERSHIP, CORPORATION, OR LIMITED LIABILITY COMPANY,
RESPECTIVELY, PROVIDED THAT SUCH PARTNER OR PARTNERS, SHAREHOLDER OR
SHAREHOLDERS, OR MEMBER OR MEMBERS HOLD A MAJORITY INTEREST IN SUCH
PARTNERSHIP, CORPORATION OR LIMITED LIABILITY COMPANY RESPECTIVELY.
COVERED PROPERTY. THE TERM "COVERED PROPERTY" MEANS REAL PROPERTY,
OTHER THAN EXCLUDED PROPERTY, CLASSIFIED AS:
(I) CLASS ONE PROPERTY, OTHER THAN VACANT LAND;
(II) CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY IN
WHICH AT LEAST ONE RESIDENTIAL COOPERATIVE DWELLING UNIT: (A) HAS A
PHASE ONE MARKET VALUE EQUAL TO OR GREATER THAN ONE MILLION DOLLARS OR
PHASE TWO MARKET VALUE EQUAL TO OR GREATER THAN FIVE MILLION DOLLARS;
AND (B) IS NOT A PRIMARY RESIDENCE; AND
(III) CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELLING
UNIT.
DEPARTMENT. THE TERM "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCE.
EXCLUDED PROPERTY. THE TERM "EXCLUDED PROPERTY" MEANS A CLASS ONE OR
CLASS TWO PROPERTY:
(I) FOR WHICH A TEMPORARY OR PERMANENT CERTIFICATE OF OCCUPANCY IS
REQUIRED AND HAS NOT YET BEEN ISSUED; OR
(II) A RESIDENTIAL CONDOMINIUM DWELLING UNIT OR RESIDENTIAL COOPER-
ATIVE DWELLING UNIT THAT IS SUBJECT TO AN OFFERING PLAN REQUIRED BY
SECTION THREE HUNDRED FIFTY-TWO-E OF THE GENERAL BUSINESS LAW AND SUCH
UNIT HAS NOT BEEN SOLD, OR AN ECONOMIC INTEREST IN SUCH UNIT HAS NOT
BEEN TRANSFERRED, BY THE PERSON, PARTNERSHIP, CORPORATION, COMPANY,
TRUST OR ASSOCIATION WHO HAS FILED SUCH PLAN.
IMPUTED COOPERATIVE PHASE ONE MARKET VALUE. THE TERM "IMPUTED COOPER-
ATIVE PHASE ONE MARKET VALUE" MEANS THE MARKET VALUE OF A RESIDENTIAL
COOPERATIVE DWELLING UNIT IN A RESIDENTIAL COOPERATIVE PROPERTY, CALCU-
LATED AS THE PRODUCT OF:
(I) THE MARKET VALUE OF SUCH RESIDENTIAL COOPERATIVE PROPERTY AS
DETERMINED BY THE DEPARTMENT PURSUANT TO CHAPTER FIFTY-EIGHT OF THE NEW
YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE DESCRIBED
IN THIS CHAPTER IS IMPOSED; AND
(II) THE QUOTIENT OF (A) THE SHARES OF STOCK IN SUCH COOPERATIVE
CORPORATION REPRESENTING AN INTEREST IN SUCH RESIDENTIAL COOPERATIVE
DWELLING UNIT; DIVIDED BY (B) THE TOTAL SHARES OF STOCK IN SUCH COOPER-
ATIVE CORPORATION.
NOTICE OF SURCHARGE. THE TERM "NOTICE OF SURCHARGE" MEANS A NOTICE
ISSUED BY THE DEPARTMENT TO AN OWNER INDICATING THAT A COVERED PROPERTY,
OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL
COOPERATIVE DWELLING UNIT, IS, OR MAY BE, SUBJECT TO THE SURCHARGE
IMPOSED BY THIS CHAPTER, WHICH INCLUDES THE PHASE ONE MARKET VALUE OR
PHASE TWO MARKET VALUE, AS APPLICABLE, OF SUCH COVERED PROPERTY OR RESI-
DENTIAL COOPERATIVE DWELLING UNIT AS DETERMINED BY THE DEPARTMENT, AND A
DETERMINATION BY THE DEPARTMENT THAT SUCH COVERED PROPERTY OR RESIDEN-
TIAL COOPERATIVE DWELLING UNIT IS NOT A PRIMARY RESIDENCE.
OWNER. THE TERM "OWNER" MEANS:
(I) AN OWNER OR OWNERS OF REAL PROPERTY CLASSIFIED AS CLASS ONE PROP-
ERTY;
(II) A TENANT-STOCKHOLDER OF A COOPERATIVE CORPORATION WHOSE INTEREST
IN A PORTION OF REAL PROPERTY HELD BY SUCH CORPORATION IS REPRESENTED BY
SHARES OF STOCK IN SUCH CORPORATION, OR SUCH CORPORATION; OR
S. 9009--C 101 A. 10009--C
(III) AN OWNER OR OWNERS OF A RESIDENTIAL CONDOMINIUM DWELLING UNIT.
PHASE ONE MARKET VALUE. THE TERM "PHASE ONE MARKET VALUE" MEANS:
(I) FOR A CLASS ONE PROPERTY, THE MARKET VALUE OF A COVERED PROPERTY
AS DETERMINED BY THE DEPARTMENT PURSUANT TO CHAPTER FIFTY-EIGHT OF THE
NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE
DESCRIBED BY THIS CHAPTER IS IMPOSED; AND
(II) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELL-
ING UNIT, THE MARKET VALUE OF SUCH RESIDENTIAL CONDOMINIUM DWELLING UNIT
AS DETERMINED BY THE DEPARTMENT PURSUANT TO CHAPTER FIFTY-EIGHT OF THE
NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE
DESCRIBED BY THIS CHAPTER IS IMPOSED; AND
(III) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROP-
ERTY, THE IMPUTED COOPERATIVE PHASE ONE MARKET VALUE OF ANY RESIDENTIAL
COOPERATIVE DWELLING IN SUCH RESIDENTIAL COOPERATIVE PROPERTY.
PHASE TWO MARKET VALUE. THE TERM "PHASE TWO MARKET VALUE" MEANS:
(I) FOR A CLASS ONE PROPERTY, THE MARKET VALUE OF A COVERED PROPERTY
AS DETERMINED BY THE DEPARTMENT PURSUANT TO CHAPTER FIFTY-EIGHT OF THE
NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE
DESCRIBED IN THIS CHAPTER IS IMPOSED;
(II) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELL-
ING UNIT, THE MARKET VALUE OF SUCH RESIDENTIAL CONDOMINIUM DWELLING UNIT
AS DETERMINED BY THE DEPARTMENT PURSUANT TO CHAPTER FIFTY-EIGHT OF THE
NEW YORK CITY CHARTER FOR THE FISCAL YEAR IN WHICH THE SURCHARGE
DESCRIBED IN THIS CHAPTER IS IMPOSED, PROVIDED THAT SUCH MARKET VALUE
SHALL BE DETERMINED USING A METHOD THAT CONSIDERS SALES OF COMPARABLE
RESIDENTIAL CONDOMINIUM DWELLING UNITS OR COMPARABLE RESIDENTIAL COOPER-
ATIVE DWELLING UNITS WITHOUT REGARD TO THE RESTRICTIONS DESCRIBED IN
SECTION FIVE HUNDRED EIGHTY-ONE OF THE REAL PROPERTY TAX LAW OR SECTION
THREE HUNDRED THIRTY-NINE-Y OF THE REAL PROPERTY LAW; AND
(III) FOR A CLASS TWO PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROP-
ERTY, THE MARKET VALUE OF ANY RESIDENTIAL COOPERATIVE DWELLING UNIT IN
SUCH RESIDENTIAL COOPERATIVE PROPERTY, AS DETERMINED BY THE DEPARTMENT
PURSUANT TO CHAPTER FIFTY-EIGHT OF THE NEW YORK CITY CHARTER FOR THE
FISCAL YEAR IN WHICH THE SURCHARGE DESCRIBED IN THIS CHAPTER IS IMPOSED,
PROVIDED THAT SUCH MARKET VALUE SHALL BE DETERMINED USING A METHOD THAT
CONSIDERS SALES OF COMPARABLE RESIDENTIAL COOPERATIVE DWELLING UNITS OR
COMPARABLE RESIDENTIAL CONDOMINIUM DWELLING UNITS WITHOUT REGARD TO THE
RESTRICTIONS FOUND IN SECTION FIVE HUNDRED EIGHTY-ONE OF THE REAL PROP-
ERTY TAX LAW.
PRIMARY RESIDENCE. THE TERM "PRIMARY RESIDENCE" MEANS THE USE OF A
COVERED PROPERTY, OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY,
A RESIDENTIAL COOPERATIVE DWELLING UNIT, AS OF THE TAXABLE STATUS DATE
IMMEDIATELY PRECEDING THE FISCAL YEAR IN WHICH THE SURCHARGE DESCRIBED
BY THIS CHAPTER IS IMPOSED, AS A PRIMARY RESIDENCE OF (I) ONE OR MORE OF
THE COVERED OWNERS, OR AN IMMEDIATE FAMILY MEMBER OF ONE OR MORE OF THE
COVERED OWNERS, PROVIDED SUCH COVERED OWNERS ARE NATURAL PERSONS; OR
(II) ONE OR MORE LESSEES, AND ANY SUB-LESSEES TO WHICH A LESSEE HAS
SUBLET THE COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-SIX-B OF THE
REAL PROPERTY LAW, PROVIDED ANY SUCH LESSEE OR SUB-LESSEE IS A NATURAL
PERSON OCCUPYING SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELL-
ING UNIT PURSUANT TO A BONA FIDE LEASE AGREEMENT NEGOTIATED IN AN ARMS-
LENGTH TRANSACTION WITH A TERM OF NOT LESS THAN ONE YEAR. FOR PURPOSES
OF THIS CHAPTER, THE PHRASE "IMMEDIATE FAMILY MEMBER" MEANS A SPOUSE,
CHILD, SIBLING, PARENT, GRANDPARENT, OR GRANDCHILD.
S. 9009--C 102 A. 10009--C
RESIDENTIAL CONDOMINIUM DWELLING UNIT. THE TERM "RESIDENTIAL CONDOMIN-
IUM DWELLING UNIT" MEANS A UNIT, AS DEFINED IN SECTION THREE HUNDRED
THIRTY-NINE-Y OF THE REAL PROPERTY LAW, HELD IN A CONDOMINIUM FORM OF
OWNERSHIP AND USED AS RESIDENTIAL REAL PROPERTY, OTHER THAN: (I) SUCH A
UNIT THAT IS RESIDENTIAL COOPERATIVE PROPERTY; OR (II) SUCH A UNIT THAT
INCLUDES MORE THAN THREE DWELLING UNITS AND ALL SUCH DWELLING UNITS ARE
HELD BY THE SAME OWNER, EXCEPT WHERE THE DEPARTMENT DETERMINES THAT A
UNIT HAS BEEN DIVIDED INTO MORE THAN THREE UNITS TO AVOID APPLICATION OF
THE SURCHARGE.
RESIDENTIAL COOPERATIVE DWELLING UNIT. THE TERM "RESIDENTIAL COOPER-
ATIVE DWELLING UNIT" MEANS A DWELLING UNIT IN REAL PROPERTY HELD BY A
COOPERATIVE CORPORATION WHERE AN OWNER IS A TENANT-STOCKHOLDER OF SUCH
COOPERATIVE CORPORATION AND SUCH DWELLING UNIT IS USED AS RESIDENTIAL
REAL PROPERTY.
RESIDENTIAL COOPERATIVE PROPERTY. THE TERM "RESIDENTIAL COOPERATIVE
PROPERTY" MEANS REAL PROPERTY OWNED OR LEASED BY A COOPERATIVE CORPO-
RATION AND THAT CONTAINS ONE OR MORE RESIDENTIAL COOPERATIVE DWELLING
UNITS.
SURCHARGE. THE TERM "SURCHARGE" MEANS THE SURCHARGE IMPOSED PURSUANT
TO SECTION 11-3202 OF THIS CHAPTER.
TAXABLE STATUS DATE. THE TERM "TAXABLE STATUS DATE" HAS THE MEANING
SET FORTH IN SECTION FIFTEEN HUNDRED SEVEN OF THE NEW YORK CITY CHARTER.
§ 11-3202 IMPOSITION OF SURCHARGE. IN ACCORDANCE WITH ARTICLE THIRTY-C
OF THE TAX LAW, IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY
THIS CHAPTER OR OTHER LAW, AND NOTWITHSTANDING SECTION THREE HUNDRED
FIVE OF THE REAL PROPERTY TAX LAW, A SURCHARGE IS HEREBY IMPOSED ON A
COVERED PROPERTY OR, IN THE CASE OF A COVERED PROPERTY THAT IS A RESI-
DENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT,
THAT IS NOT A PRIMARY RESIDENCE, PROVIDED THAT (A) FOR FISCAL YEARS
BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-SIX, AND BEFORE
JULY FIRST, TWO THOUSAND TWENTY-EIGHT, THE PHASE ONE MARKET VALUE OF
SUCH COVERED PROPERTY THAT IS IN CLASS ONE IS EQUAL TO OR GREATER THAN
FIVE MILLION DOLLARS, THE PHASE ONE MARKET VALUE OF SUCH COVERED PROPER-
TY THAT IS A RESIDENTIAL CONDOMINIUM DWELLING UNIT IS EQUAL TO OR GREAT-
ER THAN ONE MILLION DOLLARS, OR, IN THE CASE OF A COVERED PROPERTY THAT
IS A RESIDENTIAL COOPERATIVE PROPERTY, THE PHASE ONE MARKET VALUE OF A
RESIDENTIAL COOPERATIVE DWELLING UNIT WITHIN SUCH RESIDENTIAL COOPER-
ATIVE PROPERTY IS EQUAL TO OR GREATER THAN ONE MILLION DOLLARS, AND (B)
FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-
EIGHT, THE PHASE TWO MARKET VALUE OF SUCH COVERED PROPERTY OR, IN THE
CASE OF A COVERED PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY,
SUCH RESIDENTIAL COOPERATIVE DWELLING UNIT, IS EQUAL TO OR GREATER THAN
FIVE MILLION DOLLARS.
§ 11-3203 PRIMARY RESIDENCE. (A) DETERMINATION OF PRIMARY RESIDENCY.
(1) THE DEPARTMENT SHALL MAKE, ON AN ANNUAL BASIS, AN INITIAL DETERMI-
NATION THAT A COVERED PROPERTY, OR, IN THE CASE OF A COVERED PROPERTY
THAT IS A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE
DWELLING UNIT, THAT HAS A MARKET VALUE AMOUNT EQUAL TO OR GREATER THAN
THE APPLICABLE PHASE ONE OR PHASE TWO MARKET VALUE THRESHOLD ESTABLISHED
IN SECTION 11-3202 OF THIS CHAPTER, IS NOT A PRIMARY RESIDENCE. THE
DEPARTMENT SHALL MAKE A DETERMINATION OF PRIMARY RESIDENCE BASED ON
FACTORS IDENTIFIED BY RULES OF THE DEPARTMENT, INCLUDING BUT NOT LIMITED
TO WHETHER SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING
UNIT WAS OCCUPIED IN AGGREGATE FOR A MAJORITY OF DAYS DURING A CALENDAR
YEAR BY A COVERED OWNER OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPER-
S. 9009--C 103 A. 10009--C
ATIVE DWELLING UNIT. THE DEPARTMENT SHALL MAKE SUCH INITIAL DETERMI-
NATION BASED ON INFORMATION AVAILABLE TO SUCH DEPARTMENT.
(2) THE DEPARTMENT SHALL PROVIDE NOTICE TO THE OWNER OF A COVERED
PROPERTY, OR, IN THE CASE OF A COVERED PROPERTY THAT IS A RESIDENTIAL
COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT, OF SUCH
INITIAL DETERMINATION, PROVIDED THAT, FOR THE FISCAL YEAR BEGINNING JULY
FIRST, TWO THOUSAND TWENTY-SIX, SUCH DEPARTMENT SHALL PROVIDE SUCH
NOTICE NO LATER THAN AUGUST THIRTIETH, TWO THOUSAND TWENTY-SIX. SUCH
NOTICE SHALL INCLUDE AN OPPORTUNITY FOR SUCH OWNER TO SUBMIT PROOF OF
PRIMARY RESIDENCE TO THE SATISFACTION OF SUCH DEPARTMENT IN ACCORDANCE
WITH A TIME PERIOD ESTABLISHED BY RULE BY THE DEPARTMENT. THE DEPARTMENT
MAY REQUIRE THAT SUCH OWNER PROVIDE A CERTIFICATION THAT SUCH COVERED
PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS A PRIMARY RESI-
DENCE, AS WELL AS DOCUMENTATION DEMONSTRATING:
(I) THAT A COVERED OWNER PROVIDED THE ADDRESS OF SUCH COVERED PROPERTY
OR RESIDENTIAL COOPERATIVE DWELLING UNIT AS SUCH COVERED OWNER'S PERMA-
NENT HOME ADDRESS ON THE NEW YORK STATE RESIDENT INCOME TAX RETURN FILED
BY SUCH COVERED OWNER FOR THE CALENDAR YEAR THAT ENDS IMMEDIATELY
PRECEDING THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED;
(II) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
RECEIVED A REAL PROPERTY TAX EXEMPTION PURSUANT TO SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW DURING THE FISCAL YEAR IMME-
DIATELY PRECEDING THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED OR
THE OWNER OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING
UNIT RECEIVED A TAX CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX
HUNDRED SIX OF THE TAX LAW FOR SUCH COVERED PROPERTY OR RESIDENTIAL
COOPERATIVE DWELLING UNIT FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING
THE FISCAL YEAR IN WHICH THE SURCHARGE IS IMPOSED; OR
(III) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
IS THE PRIMARY RESIDENCE OF ONE OR MORE LESSEES OR A SUB-LESSEES TO
WHICH A LESSEE HAS SUBLET SUCH COVERED PROPERTY OR RESIDENTIAL COOPER-
ATIVE DWELLING UNIT PURSUANT TO SUBDIVISION TWO OF SECTION TWO HUNDRED
TWENTY-SIX-B OF THE REAL PROPERTY LAW OR AN IMMEDIATE FAMILY MEMBER OF A
COVERED OWNER.
(3) AFTER CONSIDERATION OF A SUBMISSION OF PROOF OF PRIMARY RESIDENCE
BY AN OWNER PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION, AND OTHER
AVAILABLE INFORMATION, THE DEPARTMENT SHALL DETERMINE WHETHER SUCH
COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS NOT A
PRIMARY RESIDENCE. SUCH DETERMINATION SHALL CONSTITUTE A FINAL DETERMI-
NATION OF THE DEPARTMENT.
(4) WHERE AN OWNER FAILS TO SUBMIT PROOF OF PRIMARY RESIDENCE PURSUANT
TO PARAGRAPH TWO OF THIS SUBDIVISION, THE INITIAL DETERMINATION MADE BY
THE DEPARTMENT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL
CONSTITUTE A FINAL DETERMINATION OF SUCH DEPARTMENT AND SHALL NOT BE
SUBJECT TO CHALLENGE PURSUANT TO SECTION 11-3206 OF THIS CHAPTER, UNLESS
SUCH OWNER HAS CHALLENGED SUCH INITIAL DETERMINATION OF PRIMARY RESI-
DENCE PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION 11-3206 OF
THIS CHAPTER.
(5) THE DEPARTMENT SHALL PROVIDE ANY NOTICE REQUIRED BY THIS SECTION
BY ELECTRONIC MEANS AND MAY REQUIRE THAT AN OWNER SUBMIT ANY CERTIF-
ICATION OR DOCUMENTATION BY ELECTRONIC MEANS, PROVIDED THAT THE DEPART-
MENT MAY PROMULGATE RULES AUTHORIZING OTHER FORMS OF COMMUNICATION FOR
ANY SUCH OWNER OR OWNERS FOR WHOM THE DEPARTMENT DOES NOT HAVE AN ELEC-
TRONIC ADDRESS AVAILABLE, OR FOR WHOM COMMUNICATION BY ELECTRONIC MEANS
IS NOT PRACTICABLE OR FEASIBLE.
S. 9009--C 104 A. 10009--C
(6) FAILURE TO PROVIDE THE NOTICE REQUIRED BY THIS SECTION SHALL NOT
AFFECT THE VALIDITY OF THE IMPOSITION OF THE SURCHARGE AUTHORIZED BY
THIS CHAPTER.
(B) THE DEPARTMENT MAY PROMULGATE RULES TO:
(1) SPECIFY ADDITIONAL FACTORS OR DOCUMENTATION THAT MAY ASSIST IN THE
INITIAL OR FINAL DETERMINATION OF WHETHER A COVERED PROPERTY, OR, IN THE
CASE OF A COVERED PROPERTY THAT IS A RESIDENTIAL COOPERATIVE PROPERTY, A
RESIDENTIAL COOPERATIVE DWELLING UNIT, IS A PRIMARY RESIDENCE; AND
(2) ESTABLISH A PROCESS THROUGH WHICH THE DEPARTMENT MAY AUDIT ANY
CERTIFICATION OR DOCUMENTATION OF PRIMARY RESIDENCY SUBMITTED PURSUANT
TO THIS SECTION WITHIN SIX YEARS OF SUCH SUBMISSION.
§ 11-3204 SURCHARGE RATES. THE DEPARTMENT SHALL CALCULATE THE
SURCHARGE IMPOSED PURSUANT TO SECTION 11-3202 OF THIS CHAPTER AS
FOLLOWS:
(A) FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND
TWENTY-SIX, AND BEFORE JULY FIRST, TWO THOUSAND TWENTY-EIGHT, (1) FOR
COVERED PROPERTY THAT IS IN CLASS ONE, WHERE THE PHASE ONE MARKET VALUE
IS (I) GREATER THAN OR EQUAL TO FIVE MILLION DOLLARS, BUT LESS THAN OR
EQUAL TO FIFTEEN MILLION DOLLARS, AT A RATE OF 0.8 PERCENT; (II) GREATER
THAN FIFTEEN MILLION DOLLARS, BUT LESS THAN OR EQUAL TO TWENTY-FIVE
MILLION DOLLARS, AT A RATE OF 1.05 PERCENT; (III) GREATER THAN TWENTY-
FIVE MILLION DOLLARS, AT A RATE OF 1.3 PERCENT; AND (2) FOR COVERED
PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM DWELLING UNIT OR, IN THE CASE
OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELL-
ING UNIT, WHERE THE PHASE ONE MARKET VALUE IS (I) GREATER THAN OR EQUAL
TO ONE MILLION DOLLARS, BUT LESS THAN OR EQUAL TO THREE MILLION DOLLARS,
AT A RATE OF 4.0 PERCENT; (II) GREATER THAN THREE MILLION DOLLARS, BUT
LESS THAN OR EQUAL TO FIVE MILLION DOLLARS, AT A RATE OF 5.25 PERCENT;
(III) GREATER THAN FIVE MILLION DOLLARS, AT A RATE OF 6.5 PERCENT.
(B) FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND
TWENTY-EIGHT, FOR COVERED PROPERTY OR, IN THE CASE OF A RESIDENTIAL
COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT, WHERE THE
PHASE TWO MARKET VALUE IS (1) GREATER THAN OR EQUAL TO FIVE MILLION
DOLLARS, BUT LESS THAN OR EQUAL TO FIFTEEN MILLION DOLLARS, AT A RATE OF
0.8 PERCENT; (2) GREATER THAN FIFTEEN MILLION DOLLARS, BUT LESS THAN OR
EQUAL TO TWENTY-FIVE MILLION DOLLARS, AT A RATE OF 1.05 PERCENT; (3)
GREATER THAN TWENTY-FIVE MILLION DOLLARS, AT A RATE OF 1.3 PERCENT.
§ 11-3205 ADMINISTRATION OF SURCHARGE. (A) THE DEPARTMENT SHALL ADD
THE SURCHARGE IMPOSED PURSUANT TO SECTION 11-3202 OF THIS CHAPTER TO THE
STATEMENT OF ACCOUNT REQUIRED PURSUANT TO SECTION 11-129 OF THIS TITLE
OF A COVERED PROPERTY. IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPER-
TY, THE DEPARTMENT SHALL ADD TO THE STATEMENT OF ACCOUNT OF SUCH PROPER-
TY THE SUM OF ANY SURCHARGES AUTHORIZED BY THIS CHAPTER FOR EACH RESI-
DENTIAL COOPERATIVE DWELLING UNIT IN SUCH RESIDENTIAL COOPERATIVE
PROPERTY WHERE SUCH DWELLING UNIT: (1) HAS A PHASE ONE OR PHASE TWO
MARKET VALUE EQUAL TO, OR GREATER THAN, THE THRESHOLD PROVIDED IN
SECTION 11-3202 OF THIS CHAPTER; AND (2) DOES NOT SERVE AS A PRIMARY
RESIDENCE. ANY ABATEMENT, CREDIT OR EXEMPTION OF THE REAL PROPERTY TAXES
OWED BY SUCH COVERED PROPERTY SHALL NOT APPLY TO SUCH SURCHARGE.
(B) SUCH SURCHARGE SHALL BE DUE AND PAYABLE IN THE SAME MANNER AS REAL
PROPERTY TAXES ARE DUE AND PAYABLE PURSUANT TO SECTION FIFTEEN HUNDRED
NINETEEN-A OF THE NEW YORK CITY CHARTER. SUCH SURCHARGE AND ANY PENAL-
TIES AUTHORIZED PURSUANT TO PARAGRAPH THREE OF SUBDIVISION (B) OF
SECTION 11-3203 OF THIS CHAPTER, AND THE INTEREST IMPOSED THEREON IN
ACCORDANCE WITH SECTION 11-224.1 OF THIS TITLE, SHALL CONTINUE TO BE A
LIEN ON THE COVERED PROPERTY. SUCH LIEN SHALL BE A TAX LIEN WITHIN THE
S. 9009--C 105 A. 10009--C
MEANING OF SECTIONS 11-301, 11-319 AND 11-401 OF THIS TITLE AND MAY BE
SOLD, ENFORCED OR FORECLOSED IN THE MANNER PROVIDED IN CHAPTERS THREE OR
FOUR OF THIS TITLE OR SECTION 11-3208 OF THIS CHAPTER.
(C) THE DEPARTMENT SHALL ADMINISTER AND ENFORCE THIS SURCHARGE, TO THE
GREATEST EXTENT PRACTICABLE NOT INCONSISTENT WITH THIS CHAPTER, IN THE
SAME MANNER USED TO ADMINISTER AND ENFORCE REAL PROPERTY TAXES. FOR
PURPOSES OF SECTION FIFTEEN HUNDRED FOUR OF THE NEW YORK CITY CHARTER,
THE TERM "REAL PROPERTY TAXES" SHALL INCLUDE THE SURCHARGE IMPOSED
PURSUANT TO SECTION 11-3202 OF THIS CHAPTER. NOTWITHSTANDING THE PRECED-
ING SENTENCES OF THIS SUBDIVISION, SECTION 11-207 OF THIS TITLE SHALL
NOT APPLY TO THIS SURCHARGE AND THIS SURCHARGE SHALL NOT CONSTITUTE A
REAL PROPERTY TAX FOR THE PURPOSES OF SECTION FIFTEEN HUNDRED TWENTY-
SEVEN OF SUCH CHARTER. FOR THE PURPOSES OF THE PREPARATION, PUBLICATION,
ADDITION OR ADJUSTMENT OF THE ANNUAL RECORD OF ASSESSED VALUATION OR
ASSESSMENT ROLLS, OR ANY PROCESSES REQUIRED BY LAW TO PRODUCE SUCH
ROLLS, THE DEPARTMENT SHALL ONLY BE REQUIRED TO PUBLISH INFORMATION
RELATING TO PHASE TWO MARKET VALUES OF COVERED PROPERTIES IN RELATION TO
THIS SURCHARGE.
(D) THE BOOKS OF ANNUAL RECORDS OF THE PHASE ONE OR PHASE TWO MARKET
VALUE, AS APPLICABLE, OF COVERED PROPERTY SHALL BE OPENED TO THE PUBLIC
ON THE SAME DATES AND IN THE SAME MANNER AS THE BOOKS OF THE ASSESSED
VALUATION OF REAL ESTATE PURSUANT TO SECTION FIFTEEN HUNDRED TEN OF THE
NEW YORK CITY CHARTER. FOR THE FISCAL YEAR BEGINNING JULY FIRST, TWO
THOUSAND TWENTY-SIX, THE BOOKS OF ANNUAL RECORDS OF THE PHASE ONE MARKET
VALUE SHALL BE OPENED TO THE PUBLIC NOT LATER THAN THE DATE ON WHICH A
NOTICE OF SURCHARGE IS ISSUED TO AN OWNER OF A COVERED PROPERTY, OR, IN
THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, TO A COOPERATIVE CORPO-
RATION, AND REMAIN OPEN DURING THE USUAL BUSINESS HOURS FOR PUBLIC
INSPECTION AND EXAMINATION UNTIL DECEMBER THIRTY-FIRST, TWO THOUSAND
TWENTY-SIX. THE COMMISSIONER, PREVIOUS TO AND DURING THE TIME SUCH BOOKS
ARE OPEN TO PUBLIC INSPECTION, SHALL ADVERTISE SUCH FACT IN THE CITY
RECORD AND IN SUCH OTHER NEWSPAPER OR NEWSPAPERS PUBLISHED IN THE
SEVERAL BOROUGHS AS MAY BE AUTHORIZED BY THE DIRECTOR OF THE CITY RECORD
WITH THE APPROVAL OF THE MAYOR AND THE COMPTROLLER. THE PROVISIONS OF
THIS SUBDIVISION SHALL NOT AFFECT ANY TIME FRAME IN WHICH THE BOOKS OF
ANNUAL RECORD ARE OPEN FOR THE PURPOSES OF INSPECTION OF ANNUAL VALU-
ATION FOR THE PURPOSES OF THE ASSESSMENT OF REAL PROPERTY TAXES.
(E) NOTWITHSTANDING SUBDIVISION (B) OF THIS SECTION, ANY SURCHARGE
IMPOSED ON A COVERED PROPERTY IN THE FISCAL YEAR COMMENCING ON JULY
FIRST, TWO THOUSAND TWENTY-SIX, SHALL BE DUE AND PAYABLE ON THE SAME
DATE AS THE SECOND SEMI-ANNUAL INSTALLMENT OF REAL PROPERTY TAXES IS
DUE, AS DESCRIBED IN SECTION FIFTEEN HUNDRED NINETEEN-A OF THE CHARTER
OF THE CITY OF NEW YORK.
(F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE THE
DEPARTMENT ADDS THE SUM OF ANY SURCHARGES IMPOSED PURSUANT TO SECTION
11-3202 OF THIS CHAPTER FOR A RESIDENTIAL COOPERATIVE DWELLING UNIT
PURSUANT TO SUBDIVISION (A) OF THIS SECTION TO THE STATEMENT OF ACCOUNT
OF A RESIDENTIAL COOPERATIVE PROPERTY, EACH SUCH SURCHARGE SHALL BE
COLLECTED BY THE COOPERATIVE CORPORATION FROM THE TENANT-STOCKHOLDER OF
SUCH COOPERATIVE CORPORATION WHOSE INTEREST IN EACH SUCH RESIDENTIAL
COOPERATIVE DWELLING UNIT IS REPRESENTED BY SHARES OF STOCK IN SUCH
CORPORATION.
(G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE
SURCHARGE IMPOSED ON A COVERED PROPERTY PURSUANT TO SECTION 11-3202 OF
THIS CHAPTER SHALL BE SEPARATE AND DISTINCT FROM ANY OTHER TAX LEVIED ON
REAL PROPERTY. ANY REVENUE COLLECTED AS A RESULT OF THE IMPOSITION OF
S. 9009--C 106 A. 10009--C
SUCH SURCHARGE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TAX LEVY
FOR PURPOSES OF DETERMINING CLASS SHARES PURSUANT TO ARTICLE EIGHTEEN OF
THE REAL PROPERTY TAX LAW, SHALL NOT BE SUBJECT TO APPORTIONMENT AMONG
CLASSES OF REAL PROPERTY, AND SHALL NOT BE CONSIDERED WHEN ESTABLISHING
TAX RATES FOR ANY CLASS OF PROPERTY. SUCH REVENUE SHALL BE CONSIDERED
RECEIPTS OTHER THAN TAXES ON REAL PROPERTY FOR THE PURPOSES OF SECTION
FIFTEEN HUNDRED FIFTEEN OF THE NEW YORK CITY CHARTER.
(H) UPON RECEIPT OF A NOTICE OF SURCHARGE BY A RESIDENTIAL COOPERATIVE
PROPERTY, THE COOPERATIVE CORPORATION THAT HOLDS SUCH RESIDENTIAL COOP-
ERATIVE PROPERTY SHALL PROVIDE SUCH NOTICE TO THE OWNERS OF THE RESIDEN-
TIAL COOPERATIVE DWELLING UNIT THAT IS THE SUBJECT OF SUCH NOTICE AS
SOON AS PRACTICABLE.
(I) THE DEPARTMENT MAY PROMULGATE ANY RULES:
(1) NECESSARY TO IMPLEMENT THIS CHAPTER, INCLUDING, BUT NOT LIMITED
TO, RULES: (I) TO ADDRESS A CHANGE IN OWNERSHIP OF A COVERED PROPERTY OR
A RESIDENTIAL COOPERATIVE DWELLING UNIT, OR ILLNESS OR DEATH OF AN OWNER
OF A COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT; (II) TO
AUTHORIZE PERSONS OTHER THAN A COVERED OWNER TO SUBMIT PROOF OF PRIMARY
RESIDENCY ON BEHALF OF A COVERED OWNER; (III) RELATING TO REQUIREMENTS
FOR PROVISION OF NOTICE OF SURCHARGE, INCLUDING RULES DESIGNATING SUCH
NOTICE AS THE STATEMENT OF ACCOUNT REQUIRED PURSUANT TO SECTION 11-129
OF THIS TITLE, THE ASSESSMENT ROLL REQUIRED PURSUANT TO CHAPTER FIFTY-
EIGHT OF THE NEW YORK CITY CHARTER, OR A COMBINATION INCLUDING SUCH
STATEMENT AND SUCH ROLL; OR (IV) TO ESTABLISH WHEN A SALE OF A RESIDEN-
TIAL CONDOMINIUM DWELLING UNIT, OR A TRANSFER OF AN ECONOMIC INTEREST IN
A RESIDENTIAL COOPERATIVE DWELLING UNIT, HAS OCCURRED FOR PURPOSES OF
WHETHER SUCH RESIDENTIAL CONDOMINIUM DWELLING UNIT OR RESIDENTIAL COOP-
ERATIVE DWELLING CONSTITUTES EXCLUDED PROPERTY.
(2) TO ESTABLISH PENALTIES NOT EXCEEDING FIFTY PERCENT OF THE
SURCHARGE IMPOSED ON A COVERED PROPERTY BY THIS CHAPTER IF, AFTER NOTICE
AND A HEARING, THE DEPARTMENT DETERMINES THAT:
(I) ANY CERTIFICATION OR DOCUMENTATION SUBMITTED TO THE DEPARTMENT
CONTAINS INACCURATE OR MISLEADING INFORMATION THAT: (A) IS MATERIAL TO
THE DETERMINATION OF THE IMPOSITION OF SUCH SURCHARGE, INCLUDING A
DETERMINATION RELATING TO PRIMARY RESIDENCE; AND (B) WAS SUBMITTED
NEGLIGENTLY OR IN BAD FAITH; OR
(II) A COVERED PROPERTY THAT IS A RESIDENTIAL CONDOMINIUM UNIT HAS
BEEN DIVIDED INTO MORE THAN THREE UNITS TO AVOID APPLICATION OF SUCH
SURCHARGE AND THE OWNER OF SUCH COVERED PROPERTY HAS MADE SUCH DIVISION
IN BAD FAITH.
(J) THE COMMISSIONER OF THE DEPARTMENT MAY SUBPOENA AND REQUIRE THE
ATTENDANCE OF WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS AND DOCU-
MENTS TO SECURE INFORMATION PERTINENT TO THE DETERMINATION OF THE
SURCHARGE, INCLUDING A DETERMINATION RELATING TO PRIMARY RESIDENCE.
§ 11-3206 ADMINISTRATIVE AND JUDICIAL REVIEW. (A) WHEN USED IN THIS
SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
EXCESSIVE. THE TERM "EXCESSIVE" MEANS, AS IT RELATED TO THE VALUE OF A
COVERED PROPERTY, AN ASSESSMENT OF THE MARKET VALUE OF A COVERED PROPER-
TY, OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL
COOPERATIVE DWELLING UNIT, MADE FOR THE PURPOSES OF THE SURCHARGE WHICH
EXCEEDS THE FULL VALUE OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPER-
ATIVE DWELLING UNIT.
MARKET VALUE. THE TERM "MARKET VALUE" MEANS THE PHASE ONE MARKET VALUE
OR PHASE TWO MARKET VALUE, AS APPLICABLE FOR THE FISCAL YEAR FOR WHICH
THE SURCHARGE IS IMPOSED.
S. 9009--C 107 A. 10009--C
UNLAWFUL. THE TERM "UNLAWFUL" MEANS, AS IT RELATES TO THE VALUE OF A
COVERED PROPERTY AN ASSESSMENT OF THE MARKET VALUE OF COVERED PROPERTY,
OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A RESIDENTIAL
COOPERATIVE DWELLING UNIT, MADE FOR THE PURPOSES OF THE SURCHARGE WHERE:
(I) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS
NOT SUBJECT TO THE SURCHARGE IMPOSED BY THIS CHAPTER;
(II) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS
ENTIRELY OUTSIDE THE BOUNDARIES OF THE CITY OF NEW YORK; OR
(III) SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT
CANNOT BE IDENTIFIED FROM THE ASSESSMENT ROLL DESCRIPTION OR TAX MAP
LAND PARCEL NUMBER ON THE ASSESSMENT ROLL, PROVIDED THAT, IN THE CASE OF
RESIDENTIAL COOPERATIVE PROPERTY, THE MARKET VALUE IS NOT UNLAWFUL WHERE
AN ENTRY ON AN ASSESSMENT ROLL IDENTIFIES A RESIDENTIAL COOPERATIVE
DWELLING UNIT BY THE STREET ADDRESS AND UNIT NUMBER OF SUCH RESIDENTIAL
COOPERATIVE DWELLING UNIT; OR
(IV) SUCH ASSESSMENT HAS BEEN MADE BY A PERSON OR BODY WITHOUT AUTHOR-
ITY TO MAKE SUCH ENTRY.
(B) DURING THE TIME THAT THE BOOKS OF ANNUAL RECORDS OF THE PHASE ONE
MARKET VALUE OR PHASE TWO MARKET VALUE OF A COVERED PROPERTY ARE OPEN
FOR PUBLIC INSPECTION, AN OWNER OF COVERED PROPERTY CLAIMING TO BE
AGGRIEVED BY THE MARKET VALUE OF SUCH COVERED PROPERTY, OR, IN THE CASE
OF A RESIDENTIAL COOPERATIVE PROPERTY, OF A RESIDENTIAL COOPERATIVE
DWELLING UNIT WITHIN SUCH RESIDENTIAL COOPERATIVE PROPERTY, DETERMINED
FOR PURPOSES OF THE SURCHARGE IMPOSED PURSUANT TO SECTION 11-3202 OF
THIS CHAPTER MAY APPLY TO THE TAX COMMISSION FOR CORRECTION OF SUCH
MARKET VALUE. SUCH APPLICATION SHALL BE DULY VERIFIED BY A PERSON HAVING
PERSONAL KNOWLEDGE OF THE FACTS STATED THEREIN, PROVIDED THAT IF THE
APPLICATION IS SIGNED BY SOMEONE OTHER THAN THE PERSON OR AN OFFICER OF
THE CORPORATION CLAIMING TO BE AGGRIEVED, THE APPLICATION MUST BE ACCOM-
PANIED BY A DULY EXECUTED POWER OF ATTORNEY AND ANY OTHER DOCUMENTATION
AS PRESCRIBED BY THE RULES OF THE TAX COMMISSION. AN OWNER MAY CHAL-
LENGE, PURSUANT TO THIS SECTION, THE FOLLOWING:
(1) THE MARKET VALUE OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPER-
ATIVE DWELLING UNIT, AS DETERMINED BY THE DEPARTMENT;
(2) AN INITIAL DETERMINATION BY THE DEPARTMENT THAT SUCH COVERED PROP-
ERTY OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS NOT A PRIMARY RESI-
DENCE, PROVIDED THAT SUCH OWNER OR COOPERATIVE CORPORATION CHALLENGES
THE MARKET VALUE OF SUCH COVERED PROPERTY OR RESIDENTIAL COOPERATIVE
DWELLING UNIT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION AT THE SAME
TIME AS SUCH INITIAL DETERMINATION; AND
(3) A FINAL DETERMINATION BY THE DEPARTMENT THAT SUCH COVERED PROPERTY
OR RESIDENTIAL COOPERATIVE DWELLING UNIT IS NOT A PRIMARY RESIDENCE.
(C) THE GROUNDS FOR REVIEW SHALL BE THAT THE MARKET VALUE DETERMINED
BY THE DEPARTMENT IS EXCESSIVE OR UNLAWFUL, OR THAT THE COVERED PROPER-
TY, OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, THE RESIDEN-
TIAL COOPERATIVE DWELLING UNIT, IS A PRIMARY RESIDENCE.
(D) THE APPLICATION SHALL BE ON A FORM PRESCRIBED BY THE TAX COMMIS-
SION AND SHALL CONTAIN A STATEMENT SPECIFYING THE RESPECT IN WHICH THE
MARKET VALUE IS EXCESSIVE OR UNLAWFUL, OR THE RESPECT IN WHICH THE
COVERED PROPERTY, OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY,
THE RESIDENTIAL COOPERATIVE DWELLING UNIT, IS A PRIMARY RESIDENCE, AND
THE REDUCTION IN MARKET VALUE OR DETERMINATION OF PRIMARY RESIDENCY
SOUGHT.
(E) THE FILING OF AN APPLICATION IN THE MANNER AND FORM HEREINABOVE
DESCRIBED SHALL BE PREREQUISITE TO THE REVIEW OF A FINAL DETERMINATION
OF THE TAX COMMISSION AS PROVIDED IN SECTION ONE HUNDRED SIXTY-SIX OF
S. 9009--C 108 A. 10009--C
THE NEW YORK CITY CHARTER. SUCH APPLICATION SHALL BE FILED IN THE OFFICE
OF THE TAX COMMISSION IN THE BOROUGH IN WHICH SUCH COVERED PROPERTY IS
SITUATED. EMPLOYEES OF THE COMMISSION ASSIGNED BY THE PRESIDENT FOR THE
PURPOSE OF RECEIVING SUCH APPLICATIONS ARE HEREBY AUTHORIZED TO ADMINIS-
TER OATHS BETWEEN THE FIRST DAY OF NOVEMBER, TWO THOUSAND TWENTY-SIX,
AND THE FIRST DAY OF MARCH, TWO THOUSAND TWENTY-SEVEN, AND BETWEEN THE
FIFTEENTH DAY OF JANUARY AND THE FIRST DAY OF MARCH IN ANY YEAR THERE-
AFTER.
(F) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, AN APPLICATION SHALL
BE FILED, AND THE TAX COMMISSION SHALL REVIEW AN APPLICATION IN THE SAME
MANNER AND BETWEEN THE SAME DATES AS AN APPLICATION FOR REVIEW OF AN
ASSESSMENT PURSUANT TO SECTIONS ONE HUNDRED SIXTY-FOUR, ONE HUNDRED
SIXTY-FOUR-A, ONE HUNDRED SIXTY-FOUR-B, ONE HUNDRED SIXTY-FIVE, ONE
HUNDRED SIXTY-SIX, AND FIFTEEN HUNDRED TWELVE OF THE NEW YORK CITY CHAR-
TER AND SUBCHAPTER ONE OF CHAPTER TWO OF THIS TITLE. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, WHERE AN APPLICATION IS FILED
FOR REVIEW OF THE MARKET VALUE OF REAL ESTATE FOR THE FISCAL YEAR BEGIN-
NING JULY FIRST, TWO THOUSAND TWENTY-SIX, SUCH APPLICATION MAY BE FILED
BETWEEN THE DATE ON WHICH A NOTICE OF SURCHARGE IS ISSUED TO AN OWNER OF
A COVERED PROPERTY, OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPER-
TY, TO A COOPERATIVE CORPORATION, AND THE LAST DATE ON WHICH AN APPLICA-
TION MAY BE FILED PURSUANT TO THIS SECTION FOR REVIEW OF THE MARKET
VALUE OF A COVERED PROPERTY FOR THE FISCAL YEAR BEGINNING JULY FIRST,
TWO THOUSAND TWENTY-SEVEN, AND THE TAX COMMISSION SHALL REVIEW AN APPLI-
CATION FILED PURSUANT TO THIS SECTION FOR REVIEW OF THE MARKET VALUE OF
A COVERED PROPERTY FOR THE FISCAL YEAR BEGINNING JULY FIRST, TWO THOU-
SAND TWENTY-EIGHT, IN THE SAME MANNER AND BETWEEN THE SAME DATES AS AN
APPLICATION FILED PURSUANT TO THIS SECTION FOR REVIEW OF THE MARKET
VALUE OF REAL ESTATE FOR THE FISCAL YEAR BEGINNING JULY FIRST, TWO THOU-
SAND TWENTY-SEVEN.
(G) AN APPLICATION FILED WITH THE TAX COMMISSION PURSUANT TO THIS
SECTION OR A DETERMINATION BY THE TAX COMMISSION PURSUANT TO THIS
SECTION SHALL NOT BE GIVEN ANY FORCE OR EFFECT IN ANY OTHER ADMINISTRA-
TIVE PROCEEDING BEFORE THE TAX COMMISSION OR IN ANY SUBSEQUENT JUDICIAL
PROCEEDING BROUGHT TO REVIEW ANY OTHER DETERMINATION BY THE TAX COMMIS-
SION, PROVIDED THAT, WHERE THE TAX COMMISSION MAKES A DETERMINATION WITH
REGARD TO A RESIDENTIAL COOPERATIVE DWELLING UNIT IN A RESIDENTIAL COOP-
ERATIVE PROPERTY, THE TAX COMMISSION SHALL CONSIDER SUCH DETERMINATION
IN ANY PROCEEDING RELATING TO ANY OTHER RESIDENTIAL COOPERATIVE DWELLING
UNIT IN SUCH RESIDENTIAL COOPERATIVE PROPERTY FOR THE SAME FISCAL YEAR.
(H) AN OWNER OF A COVERED PROPERTY MAY CHALLENGE, IN ACCORDANCE WITH
TITLE ONE OF ARTICLE SEVEN OF THE REAL PROPERTY TAX LAW, AND NOTWITH-
STANDING ANY PROVISION OF SUCH ARTICLE SEVEN TO THE CONTRARY, A FINAL
DETERMINATION BY THE TAX COMMISSION PURSUANT TO THIS SECTION ON THE
GROUNDS FOR REVIEW DESCRIBED IN SUBDIVISION (C) OF THIS SECTION. A CHAL-
LENGE PURSUANT TO THIS SUBDIVISION MUST BE COMMENCED WITHIN THE TIME
SPECIFIED BY SECTION ONE HUNDRED SIXTY-SIX OF THE NEW YORK CITY CHARTER.
§ 11-3207 INFORMATION SHARING. THE CITY SHALL, UPON REQUEST BY THE
COMMISSIONER OF TAXATION AND FINANCE, PROVIDE THE DEPARTMENT OF TAXATION
AND FINANCE WITH ANY RECORDS IN ITS POSSESSION USED OR CONSIDERED IN
DETERMINING WHETHER A COVERED PROPERTY, OR, IN THE CASE OF A RESIDENTIAL
COOPERATIVE PROPERTY, A RESIDENTIAL COOPERATIVE DWELLING UNIT, IS NOT A
PRIMARY RESIDENCE. THE DEPARTMENT OF TAXATION AND FINANCE SHALL, UPON
REQUEST BY SUCH CITY PROVIDE SUCH CITY WITH ANY RECORDS IN ITS
POSSESSION CONTAINED IN ANY RETURN FILED PURSUANT TO ARTICLE THIRTY OF
THE TAX LAW OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER
S. 9009--C 109 A. 10009--C
SUCH ARTICLE FOR THE PURPOSES OF IMPLEMENTING THE SURCHARGE. INFORMATION
SHARED PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO DISCLOSURE
PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
§ 11-3208 PROCEEDINGS TO RECOVER SURCHARGE. (A) WHENEVER ANY OWNER,
OR, IN THE CASE OF A RESIDENTIAL COOPERATIVE PROPERTY, A COOPERATIVE
CORPORATION, SUBJECT TO THE SURCHARGE IMPOSED PURSUANT TO SECTION
11-3202 OF THIS CHAPTER SHALL FAIL TO PAY SUCH SURCHARGE OR ANY INTER-
EST, AS HEREIN PROVIDED, THE CORPORATION COUNSEL SHALL, UPON THE REQUEST
OF THE COMMISSIONER, BRING OR CAUSE TO BE BROUGHT AN ACTION TO ENFORCE
THE PAYMENT OF THE SAME ON BEHALF OF THE CITY OF NEW YORK IN ANY COURT
OF THE STATE OF NEW YORK OR OF ANY OTHER STATE OR OF THE UNITED STATES.
(B) AS AN ADDITIONAL OR ALTERNATE REMEDY, THE COMMISSIONER MAY ISSUE A
WARRANT, DIRECTED TO THE CITY SHERIFF COMMANDING SUCH SHERIFF TO LEVY
UPON AND SELL THE REAL AND PERSONAL PROPERTY OF SUCH OWNER OR COOPER-
ATIVE CORPORATION THAT MAY BE FOUND WITHIN THE CITY, FOR THE PAYMENT OF
THE AMOUNT THEREOF, WITH ANY INTEREST, AND THE COST OF EXECUTING THE
WARRANT, AND TO RETURN SUCH WARRANT TO THE COMMISSIONER AND TO PAY TO
SUCH SHERIFF THE MONEY COLLECTED BY VIRTUE THEREOF WITHIN SIXTY DAYS
AFTER THE RECEIPT OF SUCH WARRANT. THE CITY SHERIFF SHALL WITHIN FIVE
DAYS AFTER THE RECEIPT OF THE WARRANT FILE WITH THE COUNTY CLERK A COPY
THEREOF, AND THEREUPON SUCH CLERK SHALL ENTER IN THE JUDGMENT DOCKET THE
NAME OF THE SUCH OWNER OR COOPERATIVE CORPORATION MENTIONED IN THE
WARRANT AND THE AMOUNT OF THE SURCHARGE AND INTEREST FOR WHICH THE
WARRANT IS ISSUED AND THE DATE WHEN SUCH COPY IS FILED. THEREUPON THE
AMOUNT OF SUCH WARRANT SO DOCKETED SHALL BECOME A LIEN UPON THE TITLE TO
AND THE INTEREST IN REAL AND PERSONAL PROPERTY OF SUCH OWNER OR COOPER-
ATIVE CORPORATION AGAINST WHOM THE WARRANT IS ISSUED. THE CITY SHERIFF
SHALL THEN PROCEED UPON THE WARRANT IN THE SAME MANNER, AND WITH LIKE
EFFECT, AS THAT PROVIDED BY LAW IN RESPECT TO EXECUTIONS ISSUED AGAINST
PROPERTY UPON JUDGMENTS OF A COURT OF RECORD AND FOR SERVICES IN EXECUT-
ING THE WARRANT SUCH SHERIFF SHALL BE ENTITLED TO THE SAME FEES, WHICH
SUCH SHERIFF MAY COLLECT IN THE SAME MANNER. IN THE DISCRETION OF THE
COMMISSIONER, A WARRANT OF LIKE TERMS, FORCE AND EFFECT MAY BE ISSUED
AND DIRECTED TO AN OFFICER OR EMPLOYEE OF THE DEPARTMENT, AND IN THE
EXECUTION THEREOF SUCH OFFICER OR EMPLOYEE SHALL HAVE ALL THE POWERS
CONFERRED BY LAW UPON SHERIFFS, BUT SHALL BE ENTITLED TO ANY FEE OR
COMPENSATION IN EXCESS OF THE ACTUAL EXPENSES PAID IN THE PERFORMANCE OF
SUCH DUTY. IF A WARRANT IS RETURNED NOT SATISFIED IN FULL, THE COMMIS-
SIONER MAY FROM TIME TO TIME ISSUE NEW WARRANTS AND SHALL ALSO HAVE THE
SAME REMEDIES TO ENFORCE THE AMOUNT DUE THEREUNDER AS IF THE CITY HAD
RECOVERED JUDGMENT THEREFOR AND EXECUTION THEREON HAD BEEN RETURNED
UNSATISFIED.
(C) THE COMMISSIONER, IF SUCH COMMISSIONER FINDS THAT THE INTERESTS OF
THE CITY WILL NOT THEREBY BE JEOPARDIZED, AND UPON SUCH CONDITIONS AS
THE COMMISSIONER MAY REQUIRE, MAY RELEASE ANY PROPERTY FROM THE LIEN OF
ANY WARRANT OR VACATE SUCH WARRANT FOR UNPAID TAXES, ADDITIONS TO TAX,
PENALTIES AND INTEREST FILED PURSUANT TO SUBDIVISION (B) OF THIS
SECTION, AND SUCH RELEASE OR VACATING OF THE WARRANT MAY BE RECORDED IN
THE OFFICE OF ANY RECORDING OFFICER IN WHICH SUCH WARRANT HAS BEEN
FILED. THE CLERK SHALL THEREUPON CANCEL AND DISCHARGE AS OF THE ORIGINAL
DATE OF DOCKETING THE VACATED WARRANT.
(D) THE PROCEDURES PROVIDED IN THIS SECTION FOR THE ENFORCEMENT OF THE
SURCHARGE AGAINST ANY SUCH OWNER OR COOPERATIVE CORPORATION SHALL BE IN
ADDITION TO ANY OTHER METHODS PROVIDED UNDER ANY OTHER PROVISION OF LAW
FOR THE ENFORCEMENT SUCH SURCHARGE.
S. 9009--C 110 A. 10009--C
§ 4. Subdivision b of section 153 of the New York city charter, as
amended by local law number 76 of the city of New York for the year
1984, is amended to read as follows:
b. The tax commission shall be charged with the duty of reviewing and
correcting all assessments of real property made pursuant to the
provisions of section fifteen hundred six AND ALL DETERMINATIONS OF
MARKET VALUES OF REAL PROPERTY MADE PURSUANT TO CHAPTER THIRTY-TWO OF
TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
§ 5. Severability. The provisions of this act shall be severable, and
if the application of any clause, sentence, paragraph, subdivision,
section or part of this act to any person or circumstance shall be
adjudged by any court of competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section, or
part of this act or remainder thereof, as the case may be, to any other
person or circumstance, 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 judgment shall have
been rendered.
§ 6. This act shall take effect immediately; provided, however, that
article 30-C of the tax law, as added by section two of this act, and
chapter 32 of title 11 of the administrative code of the city of New
York, as added by section three of this act, shall apply to fiscal years
commencing on or after July 1, 2026; and provided further that this act
shall expire and be deemed repealed on June 30, 2031.
PART II
Section 1. Subparagraph (iii) of paragraph 1 of subdivision b of
section 1612 of the tax law, as added by section 1 of part EE of chapter
59 of the laws of 2019, the opening paragraph of clause (A) as amended
by section 1-a of part S of chapter 39 of the laws of 2019 and clause
(B) as amended by chapter 528 of the laws of 2023, is amended to read as
follows:
(iii) less any additional vendor's fees. Additional vendor's fees
shall be calculated as follows:
(A) when a vendor track is located within region one and is located
within Orange county or region two of development zone two, as such zone
is defined in section thirteen hundred ten of the racing, pari-mutuel
wagering and breeding law, or is located within region six of such
development zone two and is located within Ontario county, the addi-
tional vendor fee received by the vendor track shall be calculated
pursuant to subclause one of this clause; provided, however, such addi-
tional vendor fee shall not exceed ten percent.
(1) The additional vendor fee is a percentage of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter. That percentage is calculated by subtracting the effective tax
rate on all taxable gross gaming revenue paid by a gaming facility with-
in the same region as the vendor track from the percentage that is nine-
ty percent less [than] the [percentage of the] vendor track's vendor fee
PERCENTAGE AND LESS THE ADDITIONAL VENDOR FEE PERCENTAGE AUTHORIZED
PURSUANT TO CLAUSE (D) OF THIS SUBPARAGRAPH. For purposes of this
clause, Seneca and Wayne counties shall be deemed to be located within
region six of development zone two.
(2) The additional vendor fee paid pursuant to this clause shall
commence with the state fiscal year beginning on April first, two thou-
S. 9009--C 111 A. 10009--C
sand nineteen and shall be paid to a vendor track no later than ninety
days after the close of the fiscal year. The additional vendor fee
authorized by this clause shall only be applied to revenue wagered at a
vendor track while a gaming facility in the same region as that vendor
track is open and operating pursuant to an operation certificate issued
pursuant to section thirteen hundred thirty-one of the racing, pari-mu-
tuel wagering and breeding law.
(B) for a vendor track that is located within Oneida county, within
fifteen miles of a Native American class III gaming facility, such addi-
tional vendor fee shall be six and four-tenths percent of the total
revenue wagered at the vendor after payout for prizes pursuant to this
chapter. The vendor track shall forfeit this additional vendor fee for
any time period that the vendor track does not maintain at least seventy
percent of full-time equivalent employees as they employed in the year
two thousand sixteen.
(C) (1) FOR A VENDOR TRACK THAT IS LOCATED WITHIN DEVELOPMENT ZONE ONE
AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE SIX AND
FIVE-TENTHS PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. AT THE CONCLUSION OF
EACH FISCAL YEAR, IF THE EFFECTIVE TAX RATE ON ALL TAXABLE GROSS GAMING
REVENUE PAID BY A GAMING FACILITY THAT IS LICENSED UNDER TITLE TWO-A OF
ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW,
AND LOCATED WITHIN NEW YORK CITY IS BELOW FORTY-FOUR PERCENT, THE VENDOR
TRACK SHALL RECEIVE AN ADDITIONAL CALCULATED AMOUNT NO LATER THAN NINETY
DAYS AFTER THE CLOSE OF THE FISCAL YEAR. FOR THE PURPOSES OF THIS
CLAUSE, AN ADDITIONAL CALCULATED AMOUNT SHALL BE THE DIFFERENTIAL
BETWEEN FORTY-FOUR PERCENT AND THE EFFECTIVE TAX RATE ON ALL TAXABLE
GROSS GAMING REVENUE PAID BY THE APPLICABLE GAMING FACILITY APPLIED TO
REVENUE WAGERED AT SUCH VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO
THIS CHAPTER. THE VENDOR TRACK MUST MAINTAIN AT LEAST NINETY PERCENT OF
FULL-TIME EQUIVALENT GAMING EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO
THOUSAND TWENTY-FIVE TO RECEIVE THE ADDITIONAL VENDOR FEE AND ADDITIONAL
CALCULATED AMOUNT. THE ADDITIONAL VENDOR FEE AND ADDITIONAL CALCULATED
AMOUNT AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE
WAGERED AT A VENDOR TRACK WHILE THE APPLICABLE GAMING FACILITY REFER-
ENCED PURSUANT TO THIS CLAUSE IS OPEN AND OPERATING PURSUANT TO AN OPER-
ATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE
OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
(2) TO BE ELIGIBLE TO RECEIVE THE ADDITIONAL VENDOR FEE AUTHORIZED
PURSUANT TO THIS CLAUSE, A VENDOR TRACK MUST SUBMIT AN APPLICATION TO
THE GAMING COMMISSION. SUCH APPLICATION SHALL IDENTIFY THE NUMBER OF
FULL-TIME EQUIVALENT GAMING EMPLOYEES EMPLOYED AT THE FACILITY IN CALEN-
DAR YEAR TWO THOUSAND TWENTY-FIVE.
(3) THE ADDITIONAL VENDOR FEE AUTHORIZED BY THIS CLAUSE SHALL BE
APPLICABLE COMMENCING ON THE DATE THAT AN ELIGIBLE FACILITY SUBMITS
THEIR APPLICATION UNDER SUBCLAUSE TWO OF THIS CLAUSE TO THE GAMING
COMMISSION.
(D) (1) FIVE PERCENT FOR THE FOLLOWING:
(I) ANY VIDEO LOTTERY GAMING FACILITY LOCATED IN EITHER NASSAU OR
SUFFOLK COUNTY THAT IS OPERATED BY A CORPORATION ESTABLISHED PURSUANT TO
SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED-
ING LAW;
(II) A VENDOR TRACK LOCATED WITHIN REGION ONE AND LOCATED WITHIN
ORANGE COUNTY;
S. 9009--C 112 A. 10009--C
(III) ANY VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERI-
CAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C §2703(8); AND
(IV) A VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN
FIFTY MILES FROM A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSU-
ANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
LAW.
(2) TO BE ELIGIBLE TO RECEIVE THE ADDITIONAL VENDOR FEE AUTHORIZED
PURSUANT TO THIS CLAUSE, A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY
MUST SUBMIT AN APPLICATION TO THE GAMING COMMISSION. SUCH APPLICATION
SHALL IDENTIFY THE NUMBER OF FULL-TIME EQUIVALENT GAMING EMPLOYEES
EMPLOYED AT THE FACILITY IN CALENDAR YEAR TWO THOUSAND TWENTY-FIVE.
(3) ON JULY FIRST OF EACH YEAR BEGINNING ON JULY FIRST, TWO THOUSAND
TWENTY-SEVEN, EACH TRACK OR FACILITY SHALL CERTIFY TO THE GAMING COMMIS-
SION THE NUMBER OF FULL-TIME EQUIVALENT GAMING EMPLOYEES EMPLOYED BY THE
FACILITY FOR THE PRECEDING CALENDAR YEAR. IF THE NUMBER OF FULL-TIME
EQUIVALENT GAMING EMPLOYEES CERTIFIED TO THE GAMING COMMISSION IS LESS
THAN THE NUMBER OF FULL-TIME EQUIVALENT GAMING EMPLOYEES EMPLOYED BY THE
FACILITY IN THE YEAR TWO THOUSAND TWENTY-FIVE, THE GAMING COMMISSION MAY
REDUCE THE ADDITIONAL VENDOR FEE RECEIVED BY SUCH TRACK OR FACILITY
PURSUANT TO THIS CLAUSE BY THE FOLLOWING AMOUNT:
(I) IF THE NUMBER OF CERTIFIED FULL-TIME EQUIVALENT GAMING EMPLOYEES
IS LESS THAN ONE HUNDRED PERCENT BUT MORE THAN OR EQUAL TO NINETY-FIVE
PERCENT OF THE ORIGINAL AMOUNT, ONE PERCENT;
(II) IF THE NUMBER OF CERTIFIED FULL-TIME EQUIVALENT GAMING EMPLOYEES
IS LESS THAN NINETY-FIVE PERCENT BUT MORE THAN OR EQUAL TO NINETY
PERCENT OF THE ORIGINAL AMOUNT, TWO PERCENT;
(III) IF THE NUMBER OF CERTIFIED FULL-TIME EQUIVALENT GAMING EMPLOYEES
IS LESS THAN NINETY PERCENT BUT MORE THAN OR EQUAL TO EIGHTY-FIVE
PERCENT OF THE ORIGINAL AMOUNT, THREE PERCENT;
(IV) IF THE NUMBER OF CERTIFIED FULL-TIME EQUIVALENT GAMING EMPLOYEES
IS LESS THAN EIGHTY-FIVE PERCENT BUT MORE THAN OR EQUAL TO EIGHTY
PERCENT OF THE ORIGINAL AMOUNT, FOUR PERCENT; AND
(V) IF THE NUMBER OF CERTIFIED FULL-TIME EQUIVALENT GAMING EMPLOYEES
IS LESS THAN EIGHTY PERCENT OF THE ORIGINAL AMOUNT, THE FULL FIVE
PERCENT.
(4) THE ADDITIONAL VENDOR FEE AUTHORIZED BY THIS CLAUSE SHALL BE
APPLICABLE COMMENCING ON THE DATE THAT AN ELIGIBLE FACILITY SUBMITS ITS
APPLICATION UNDER SUBCLAUSE TWO OF THIS CLAUSE TO THE GAMING COMMISSION.
§ 2. 1. The gaming commission shall undertake a study to (a) analyze
the effects of potential changes in commercial casino tax rates and
video lottery gaming vendor fees on the growth or limitation of each
component of the gaming industry, state and local revenues, and educa-
tion aid; (b) determine factors that should be considered when estab-
lishing a tax rate and vendor fee for licensed gaming facilities; and
(c) propose options regarding vendor fees and tax rates using the infor-
mation gathered as part of the study.
2. The study conducted pursuant to this section shall not be subject
to section 163 of the state finance law.
§ 3. To ensure public disclosure of the additional vendor fee, each
vendor track or video lottery gaming facility receiving an additional
vendor fee pursuant to this act shall submit a report to the gaming
commission by September 30, 2029, detailing how each such vendor track
or video lottery gaming facility used the additional vendor fees author-
ized by clauses (C) and (D) of subparagraph (iii) of paragraph 1 of
subdivision b of section 1612 of the tax law, including information on
S. 9009--C 113 A. 10009--C
compensation, capital investment costs, and other expenditures. The
gaming commission shall post each report on its website.
§ 4. This act shall take effect immediately; provided, however, that
sections one and two of this act shall expire and be deemed repealed 3
years after such date; provided further, however, that section three of
this act shall expire and be deemed repealed on December 31, 2029; and
provided further, however, that the amendments to clause (B) of subpara-
graph (iii) of paragraph 1 of subdivision b of section 1612 of the tax
law made by section one of this act shall not affect the repeal of such
clause and shall expire and be deemed repealed therewith.
PART JJ
Section 1. (a) Notwithstanding any provision of law, rule or regu-
lation to the contrary, any site for which (i) a brownfield cleanup
agreement with the department of environmental conservation was entered
into prior to December 20, 2013 with respect to a site located at the
corner of Broadway and Spencer Street in downtown Albany, approximately
900 feet west of the Hudson River, Albany county, and (ii) which
received a certificate of completion on or before December 31, 2017,
shall be a qualified site for purposes of the brownfield redevelopment
tax credits available to such a site pursuant to section 21 of the tax
law as in effect for such a site as of the effective date of this act
provided that both the site preparation credit component and the on-site
groundwater remediation credit component shall be allowed for all eligi-
ble costs incurred on such a site prior to and within the tax year in
which qualified tangible property on such a site is placed in service,
and for a five year period (60 months) following the year such property
is first placed in service upon such a site, provided, such a date
occurs prior to the 2031 tax year, and the tangible property credit
component shall be allowed for all eligible costs incurred on such a
site prior to and within the tax year in which qualified tangible prop-
erty on such a site is placed in service, and for a ten year period (120
months) following the year such property is first placed in service upon
such a site, provided such a date occurs prior to the 2031 tax year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to December 20, 2013 with respect to a site located at the corner of
Broadway and Spencer Street in downtown Albany, approximately 900 feet
west of the Hudson River, Albany county, and (ii) which received a
certificate of completion on or before December 31, 2017, shall be
eligible to claim the tax credit for remediated brownfields available to
such a site pursuant to section 22 of the tax law as in effect for such
a site as of the effective date of this act provided the benefit period
as applicable thereto shall be deemed to be a ten-consecutive-tax-year
period beginning with the tax year in which qualified tangible property
on such a site is placed in service where said benefit period shall
begin no later than the 2031 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to December 20, 2013 with respect to a site located at the corner of
Broadway and Spencer Street in downtown Albany, approximately 900 feet
west of the Hudson River, Albany county, and (ii) which received a
certificate of completion on or before December 31, 2017, shall be a
qualified site for purposes of claiming the tax credit for remediated
brownfields available to such a site pursuant to section 22 of the tax
S. 9009--C 114 A. 10009--C
law, provided that such developer as defined under section 22 of the tax
law has purchased or in any other way has been conveyed all or any
portion of such a site from any other party who or which has been issued
a certificate of completion with respect to such site and further
provided that such purchase or conveyance occurs no later than the 2031
tax year.
§ 2. (a) Notwithstanding any provision of law, rule or regulation to
the contrary, any site for which (i) a brownfield cleanup agreement with
the department of environmental conservation was entered into prior to
December 22, 2007 with respect to a site located at 555 West 34th
Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues
in Manhattan, New York County, and (ii) which received a certificate of
completion on or before December 19, 2012, shall be a qualified site for
purposes of the brownfield redevelopment tax credits available to such a
site pursuant to section 21 of the tax law as in effect for such a site
as of the effective date of this act provided that both the site prepa-
ration credit component and the on-site groundwater remediation credit
component shall be allowed for all eligible costs incurred on such a
site prior to and within the tax year in which qualified tangible prop-
erty on such a site is placed in service, and for a five year period (60
months) following the year such property is first placed in service upon
such a site, provided, such a date occurs prior to the 2033 tax year,
and the tangible property credit component shall be allowed for all
eligible costs incurred on such a site prior to and within the tax year
in which qualified tangible property on such a site is placed in
service, and for a ten year period (120 months) following the year such
property is first placed in service upon such a site, provided such a
date occurs prior to the 2033 tax year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to December 22, 2007 with respect to a site located at 555 West 34th
Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues
in Manhattan, New York County, and (ii) which received a certificate of
completion on or before December 19, 2012, shall be eligible to claim
the tax credit for remediated brownfields available to such a site
pursuant to section 22 of the tax law as in effect for such a site as of
the effective date of this act provided the benefit period as applicable
thereto shall be deemed to be a ten-consecutive-tax-year period begin-
ning with the tax year in which qualified tangible property on such a
site is placed in service where said benefit period shall begin no later
than the 2033 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to December 22, 2007 with respect to a site located at 555 West 34th
Street, also known as 400 Eleventh Avenue, between 10th and 11th Avenues
in Manhattan, New York County, and (ii) which received a certificate of
completion on or before December 19, 2012, shall be a qualified site for
purposes of claiming the tax credit for remediated brownfields available
to such a site pursuant to section 22 of the tax law, provided that such
developer as defined under section 22 of the tax law has purchased or in
any other way has been conveyed all or any portion of such a site from
any other party who or which has been issued a certificate of completion
with respect to such site and further provided that such purchase or
conveyance occurs no later than the 2033 tax year.
§ 3. (a) Notwithstanding any provision of law, rule or regulation to
the contrary, any site for which (i) a brownfield cleanup agreement with
S. 9009--C 115 A. 10009--C
the department of environmental conservation was entered into prior to
February 1, 2013 with respect to a site located at 125 Bath Street, in
the Town of Milton, Village of Ballston Spa, Saratoga County, and (ii)
which received a certificate of completion on or before December 31,
2019, shall be a qualified site for purposes of the brownfield redevel-
opment tax credits available to such a site pursuant to section 21 of
the tax law as in effect for such a site as of the effective date of
this act provided that both the site preparation credit component and
the on-site groundwater remediation credit component shall be allowed
for all eligible costs incurred on such a site prior to and within the
tax year in which qualified tangible property on such a site is placed
in service, and for a five year period (60 months) following the year
such property is first placed in service upon such a site, provided,
such a date occurs prior to the 2031 tax year, and the tangible property
credit component shall be allowed for all eligible costs incurred on
such a site prior to and within the tax year in which qualified tangible
property on such a site is placed in service, and for a ten year period
(120 months) following the year such property is first placed in service
upon such a site, provided such a date occurs prior to the 2031 tax
year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to February 1, 2013 with respect to a site located at 125 Bath Street,
in the Town of Milton, Village of Ballston Spa, Saratoga County, and
(ii) which received a certificate of completion on or before December
31, 2019, shall be eligible to claim the tax credit for remediated
brownfields available to such a site pursuant to section 22 of the tax
law as in effect for such a site as of the effective date of this act
provided the benefit period as applicable thereto shall be deemed to be
a ten-consecutive-tax-year period beginning with the tax year in which
qualified tangible property on such a site is placed in service where
said benefit period shall begin no later than the 2031 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to February 1, 2013 with respect to a site located at 125 Bath Street,
in the Town of Milton, Village of Ballston Spa, Saratoga County, and
(ii) which received a certificate of completion on or before December
31, 2019, shall be a qualified site for purposes of claiming the tax
credit for remediated brownfields available to such a site pursuant to
section 22 of the tax law, provided that such developer as defined under
section 22 of the tax law has purchased or in any other way has been
conveyed all or any portion of such a site from any other party who or
which has been issued a certificate of completion with respect to such
site and further provided that such purchase or conveyance occurs no
later than the 2031 tax year.
§ 4. (a) Notwithstanding any provision of law, rule or regulation to
the contrary, any site for which (i) a brownfield cleanup agreement with
the department of environmental conservation was entered into prior to
July 31, 2014 with respect to a site located at 4630 River Road, bounded
by the Niagara River to the north, vacant industrial property and a
County park to the east, a paved bike path and River Road to the south,
and United Refining Company property to the west, in the Town of Tona-
wanda, Erie County, and (ii) which received a certificate of completion
on or before December 16, 2016, shall be a qualified site for purposes
of the brownfield redevelopment tax credits available to such a site
pursuant to section 21 of the tax law as in effect for such a site as of
S. 9009--C 116 A. 10009--C
the effective date of this act provided that both the site preparation
credit component and the on-site groundwater remediation credit compo-
nent shall be allowed for all eligible costs incurred on such a site
prior to and within the tax year in which qualified tangible property on
such a site is placed in service, and for a five year period (60 months)
following the year such property is first placed in service upon such a
site, provided, such a date occurs prior to the 2031 tax year, and the
tangible property credit component shall be allowed for all eligible
costs incurred on such a site prior to and within the tax year in which
qualified tangible property on such a site is placed in service, and for
a ten year period (120 months) following the year such property is first
placed in service upon such a site, provided such a date occurs prior to
the 2031 tax year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to July 31, 2014 with respect to a site located at 4630 River Road,
bounded by the Niagara River to the north, vacant industrial property
and a County park to the east, a paved bike path and River Road to the
south, and United Refining Company property to the west, in the Town of
Tonawanda, Erie County, and (ii) which received a certificate of
completion on or before December 16, 2016, shall be eligible to claim
the tax credit for remediated brownfields available to such a site
pursuant to section 22 of the tax law as in effect for such a site as of
the effective date of this act provided the benefit period as applicable
thereto shall be deemed to be a ten-consecutive-tax-year period begin-
ning with the tax year in which qualified tangible property on such a
site is placed in service where said benefit period shall begin no later
than the 2031 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to July 31, 2014 with respect to a site located at 4630 River Road,
bounded by the Niagara River to the north, vacant industrial property
and a County park to the east, a paved bike path and River Road to the
south, and United Refining Company property to the west, in the Town of
Tonawanda, Erie County, and (ii) which received a certificate of
completion on or before December 16, 2016, shall be a qualified site for
purposes of claiming the tax credit for remediated brownfields available
to such a site pursuant to section 22 of the tax law, provided that such
developer as defined under section 22 of the tax law has purchased or in
any other way has been conveyed all or any portion of such a site from
any other party who or which has been issued a certificate of completion
with respect to such site and further provided that such purchase or
conveyance occurs no later than the 2031 tax year.
§ 5. (a) Notwithstanding any provision of law, rule or regulation to
the contrary, any site for which (i) a brownfield cleanup agreement with
the department of environmental conservation was entered into prior to
June 16, 2005 with respect to a site located at 18 Ambrose Street and on
the rear parcel of 214 Lake Avenue, including Haidt Place in Rochester,
Monroe County, and (ii) which received a certificate of completion on or
before December 31, 2017, shall be a qualified site for purposes of the
brownfield redevelopment tax credits available to such a site pursuant
to section 21 of the tax law as in effect for such a site as of the
effective date of this act provided that both the site preparation cred-
it component and the on-site groundwater remediation credit component
shall be allowed for all eligible costs incurred on such a site prior to
and within the tax year in which qualified tangible property on such a
S. 9009--C 117 A. 10009--C
site is placed in service, and for a five year period (60 months)
following the year such property is first placed in service upon such a
site, provided, such a date occurs prior to the 2031 tax year, and the
tangible property credit component shall be allowed for all eligible
costs incurred on such a site prior to and within the tax year in which
qualified tangible property on such a site is placed in service, and for
a ten year period (120 months) following the year such property is first
placed in service upon such a site, provided such a date occurs prior to
the 2031 tax year.
(b) In addition, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to June 16, 2005 with respect to a site located at 18 Ambrose Street and
on the rear parcel of 214 Lake Avenue, including Haidt Place in Roches-
ter, Monroe County, and (ii) which received a certificate of completion
on or before December 31, 2017, shall be eligible to claim the tax cred-
it for remediated brownfields available to such a site pursuant to
section 22 of the tax law as in effect for such a site as of the effec-
tive date of this act provided the benefit period as applicable thereto
shall be deemed to be a ten-consecutive-tax-year period beginning with
the tax year in which qualified tangible property on such a site is
placed in service where said benefit period shall begin no later than
the 2031 tax year.
(c) Further, any site for which (i) a brownfield cleanup agreement
with the department of environmental conservation was entered into prior
to June 16, 2005 with respect to a site located at 18 Ambrose Street and
on the rear parcel of 214 Lake Avenue, including Haidt Place in Roches-
ter, Monroe County, and (ii) which received a certificate of completion
on or before December 31, 2017, shall be a qualified site for purposes
of claiming the tax credit for remediated brownfields available to such
a site pursuant to section 22 of the tax law, provided that such devel-
oper as defined under section 22 of the tax law has purchased or in any
other way has been conveyed all or any portion of such a site from any
other party who or which has been issued a certificate of completion
with respect to such site and further provided that such purchase or
conveyance occurs no later than the 2031 tax year.
§ 6. This act shall take effect immediately.
§ 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 JJ of this act shall be
as specifically set forth in the last section of such Parts.Every fact on this page links to its source, starting with the official bill record.