N.Y.
Tax Law Section 1340
Authorization to impose tax
(a)
In addition to any other taxes, now authorized by law, any city having a population of more than one hundred ninety thousand but less than two hundred fifteen thousand inhabitants, determined in accordance with the 1980 federal census, is hereby authorized and empowered to adopt and amend local laws imposing a tax on the earnings of nonresidents of such city to be administered in the manner provided for in this article by the commissioner. The tax authorized by this article may be imposed only if the city imposing the tax herein authorized also imposes a city income tax surcharge on its residents. The rates of such tax shall be the rates contained in section two of the model local law.(b)
(i) A local law enacted pursuant to the authority of this section shall go into effect on the first day of January, nineteen hundred eighty-four and shall apply to taxable years beginning on or after such date and before two thousand twenty-six. Provided, however, no such local law shall be so effective unless such local law is enacted by July thirty-first, nineteen hundred eighty-four and unless a certified copy of such local law is mailed by registered or certified mail to the commissioner at such commissioner’s office in Albany by such date.(ii)
If the requirements of the preceding sentence are not met, a local law enacted pursuant to the authority of this section shall go into effect on the first day of the next succeeding January and shall apply to taxable years beginning on or after such date and before two thousand twenty-six. Provided, however, no such local law shall be so effective unless such local law is enacted at least ninety days prior to the date it is to become effective and unless a certified copy of such local law is mailed by registered or certified mail to the commissioner at such commissioner’s office in Albany by such date. However, the commissioner may waive and reduce such ninety day minimum requirements within a period of not less than thirty days prior to such effective date if such commissioner deems such action to be consistent with such commissioner’s duties under this article.(iii)
Any amendment of such a local law enacted pursuant to the authority of the section, which changes the rate of the income tax surcharge on residents, shall take effect on the first day of January in the year in which such amendment is enacted and shall apply to taxable years beginning on or after such date, if such amendment is enacted on or before July thirty-first of the year in which it is to take effect and a certified copy of such amendment is mailed by registered or certified mail to the commissioner at his or her office in Albany by such date.(iv)
If the requirements of paragraph (iii) of this subsection are not met, the amendment of such local law shall go into effect on the first day of the next succeeding January and shall apply to taxable years beginning on or after such date, provided that no such amendment shall take effect unless it is enacted at least ninety days prior to the date it is to become effective and a certified copy thereof is mailed by registered or certified mail to the commissioner at his or her office in Albany by such date.(c)
The terms of such local law shall be substantially the same as the following model local law. EARNINGS TAX ON NONRESIDENTS Model Local Law Section 1. Meaning of terms.2.
Persons subject to tax.3.
Taxable years to which tax imposed by this local law applies.4.
Allocation to the city.5.
Accounting periods and methods.7.
Withholding of tax on wages.8.
Returns and payment of tax.9.
Combined returns and employer’s returns.10.
Time and place for filing returns and paying tax.11.
Signing of returns and other documents.12.
Change of residence status during year.13.
Extensions of time.14.
Requirements concerning returns, notices, records and statements.15.
Report of change in federal or New York state taxable income.16.
Effect of invalidity in part; inconsistencies with other laws. Section 1. Meaning of terms. As used in this local law, the following terms shall mean and include:(a)
City. City shall mean the city imposing the tax.(b)
Payroll period and employer. Payroll period and employer shall mean the same as payroll period and employer as defined in subsections (b) and (d) of section thirty-four hundred one of the internal revenue code, and “employee” shall also include all those included as employees in subsection (c) of such section of such code. * (c) Wages. Wages shall mean wages as defined in subsection (a) of section thirty-four hundred one of the internal revenue code, except that (1) wages shall not include payments for active service as a member of the armed forces of the United States and shall not include, in the case of a nonresident individual or partner of a partnership doing an insurance business as a member of the New York insurance exchange described in Insurance Law § 6201 (New York insurance exchange)section six thousand two hundred one of the insurance law, any item of income, gain, loss or deduction of such business which is such individual’s distributive or pro rata share for federal income tax purposes or which such individual is required to take into account separately for federal income tax purposes and (2) wages shall include (i) the amount of member or employee contributions to a retirement system or pension fund picked up by the employer pursuant to subdivision f of section five hundred seventeen or subdivision d of section six hundred thirteen of the retirement and social security law or section 13-225.1, 13-327.1, 13-125.1, 13-125.2 or 13-521.1 of the administrative code of the city of New York or subdivision nineteen of Education Law § 2575 (Retirement of employees of board of education)section twenty-five hundred seventy-five of the education law, (ii) the amount deducted or deferred from an employee’s salary under a flexible benefits program established pursuant to General Municipal Law § 23 (Flexible benefits program)section twenty-three of the general municipal law or Public Authorities Law § 1210-A (Flexible benefits program)section one thousand two hundred ten-a of the public authorities law, (iii) the amount by which an employee’s salary is reduced pursuant to the provisions of subdivision b of section 12-126.1 and subdivision b of section 12-126.2 of the administrative code of the city of New York, and(iv)
the amount of member or employee contributions to a retirement system or pension fund picked up or paid by the employer for members of the Manhattan and Bronx surface transportation authority pension plan and treated as employer contributions in determining income tax treatment under section 414(h) of the Internal Revenue Code. * NB Effective until ch 525/2011 § 5 takes effect * (c) Wages. Wages shall mean wages as defined in subsection (a) of section thirty-four hundred one of the internal revenue code, except that (1) wages shall not include payments for active service as a member of the armed forces of the United States and shall not include, in the case of a nonresident individual or partner of a partnership doing an insurance business as a member of the New York insurance exchange described in Insurance Law § 6201 (New York insurance exchange)section six thousand two hundred one of the insurance law, any item of income, gain, loss or deduction of such business which is such individual’s distributive or pro rata share for federal income tax purposes or which such individual is required to take into account separately for federal income tax purposes and (2) wages shall include (i) the amount of member or employee contributions to a retirement system or pension fund picked up by the employer pursuant to subdivision f of section five hundred seventeen, subdivision d of section six hundred thirteen or section twelve hundred four-a of the retirement and social security law or section 13-225.1, 13-327.1, 13-125.1, 13-125.2 or 13-521.1 of the administrative code of the city of New York or subdivision nineteen of Education Law § 2575 (Retirement of employees of board of education)section twenty-five hundred seventy-five of the education law, (ii) the amount deducted or deferred from an employee’s salary under a flexible benefits program established pursuant to General Municipal Law § 23 (Flexible benefits program)section twenty-three of the general municipal law or Public Authorities Law § 1210-A (Flexible benefits program)section one thousand two hundred ten-a of the public authorities law, (iii) the amount by which an employee’s salary is reduced pursuant to the provisions of subdivision b of section 12-126.1 and subdivision b of section 12-126.2 of the administrative code of the city of New York, and(iv)
the amount of member or employee contributions to a retirement system or pension fund picked up or paid by the employer for members of the Manhattan and Bronx surface transportation authority pension plan and treated as employer contributions in determining income tax treatment under section 414(h) of the Internal Revenue Code. * NB See ch 525/2011 § 7 for effectiveness * (c) Wages. Wages shall mean wages as defined in subsection (a) of section thirty-four hundred one of the internal revenue code, except that (1) wages shall not include payments for active service as a member of the armed forces of the United States and shall not include, in the case of a nonresident individual or partner of a partnership doing an insurance business as a member of the New York insurance exchange described in Insurance Law § 6201 (New York insurance exchange)section six thousand two hundred one of the insurance law, any item of income, gain, loss or deduction of such business which is such individual’s distributive or pro rata share for federal income tax purposes or which such individual is required to take into account separately for federal income tax purposes and (2) wages shall include (i) the amount of member or employee contributions to a retirement system or pension fund picked up by the employer pursuant to subdivision f of section five hundred seventeen or subdivision d of section six hundred thirteen of the retirement and social security law or section 13-225.1, 13-327.1 or 13-125.1 of the administrative code of the city of New York, and(ii)
the amount deducted or deferred from an employee’s salary under a flexible benefits program established pursuant to General Municipal Law § 23 (Flexible benefits program)section twenty-three of the general municipal law or Public Authorities Law § 1210-A (Flexible benefits program)section one thousand two hundred ten-a of the public authorities law. * NB Effective upon expiration of ch 525/2011 § 5 (d) Net earnings from self-employment. Net earnings from self-employment shall mean the same as net earnings from self-employment as defined in subsection (a) of section fourteen hundred two of the internal revenue code, except that the deduction for wages and salaries paid or incurred for the taxable year which is not allowed pursuant to section two hundred eighty-C of such code shall be allowed, and except that an estate or trust shall be deemed to have net earnings from self-employment determined in the same manner as if it were an individual subject to the tax on self-employment income imposed by section fourteen hundred one of the internal revenue code diminished by (1) the amount of any deduction allowed by subsection (c) of section six hundred forty-two of the internal revenue code and (2) the deductions allowed by sections six hundred fifty-one and six hundred sixty-one of such code to the extent that they represent distributions or payments to a resident of the city. However, “trade or business” as used in subsection (a) of section fourteen hundred two of such code shall mean the same as trade or business as defined in subsection (c) of section fourteen hundred two of such code, except that paragraphs four, five and six of such subsection shall not apply in determining net earnings from self-employment taxable under this local law. Provided however, in the case of a nonresident individual or partner of a partnership doing an insurance business described in Insurance Law § 6201 (New York insurance exchange)section six thousand two hundred one of the insurance law, any item of income, gain, loss or deduction of such business which is the individual’s distributive or pro rata share for federal income tax purposes or which the individual is required to take into account separately for federal income tax purposes shall not be considered to be “net earnings from self-employment”.(e)
Taxable year. Taxable year shall mean the taxpayer’s taxable year for federal income tax purposes.(f)
Resident individual. A resident individual shall mean an individual: (1) who is domiciled in the city, unless (A) the taxpayer maintains no permanent place of abode in the city, maintains a permanent place of abode elsewhere, and spends in the aggregate not more than thirty days of the taxable year in the city, or (B) (i) within any period of five hundred forty-eight consecutive days the taxpayer is present in a foreign country or countries for at least four hundred fifty days, and(ii)
during such period of five hundred forty-eight consecutive days the taxpayer, the taxpayer’s spouse (unless the spouse is legally separated) and the taxpayer’s minor children are not present in the city for more than ninety days, and(iii)
during any period of less than twelve months, which would be treated as a separate taxable period based on a change of resident status, and which period is contained within the period of five hundred forty-eight consecutive days, the taxpayer is present in the city for a number of days which does not exceed an amount which bears the same ratio to ninety as the number of days contained in that period of less than twelve months bears to five hundred forty-eight, or (2) who is not domiciled in the city but maintains a permanent place of abode in the city and spends in the aggregate more than one hundred eighty-three days of the taxable year in the city, unless such individual is in active service in the armed forces of the United States.(g)
Nonresident individual. A nonresident individual shall mean an individual who is not a resident.(h)
Resident estate or trust. A resident estate or trust shall mean: (1) the estate of a decedent who at his death was domiciled in the city, (2) a trust, or a portion of a trust, consisting of property transferred by will of a decedent who at his death was domiciled in the city, or (3) a trust, or a portion of a trust, consisting of the property of: (A) a person domiciled in such city at the time such property was transferred to the trust, if such trust or portion of a trust was then irrevocable, or if it was then revocable and has not subsequently become irrevocable; or (B) a person domiciled in such city at the time such trust or portion of a trust became irrevocable, if it was revocable when such property was transferred to the trust but has subsequently become irrevocable. For the purposes of the foregoing, a trust or a portion of a trust is revocable if it is subject to a power, exercisable immediately or at any future time, to revest title in the person whose property constitutes such trust or portion of a trust and a trust or portion of a trust becomes irrevocable when the possibility that such power may be exercised has been terminated.(i)
Nonresident estate or trust. A nonresident estate or trust shall mean an estate or trust which is not a resident.(j)
The term “partnership” shall include, unless a different meaning is clearly required, a subchapter K limited liability company. The term “subchapter K limited liability company” shall mean a limited liability company classified as a partnership for federal income tax purposes. The term “limited liability company” means a domestic limited liability company or a foreign limited liability company, as defined in Limited Liability Company Law § 102 (Definitions)section one hundred two of the limited liability company law, a limited liability investment company formed pursuant to Banking Law § 507 (Limited liability investment companies)section five hundred seven of the banking law, or a limited liability trust company formed pursuant to Banking Law § 102-A (Limited liability trust companies)section one hundred two-a of the banking law.(k)
Comparable meaning of terms. Unless a different meaning is clearly required, any term used in this local law shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal taxes but such meaning shall be subject to the exceptions or modifications prescribed in or pursuant to article thirty-B of the tax law or by the laws of this state. Any reference in this local law to the internal revenue code, the internal revenue code of nineteen hundred eighty-six or to the laws of the United States shall mean the provisions of the internal revenue code of nineteen hundred eighty-six (unless a reference to the internal revenue code of nineteen hundred fifty-four is clearly intended), and amendments thereto, and other provisions of the laws of the United States relating to federal taxes, and amendments thereto. § 2. Persons subject to tax.(a)
Imposition of tax. A tax is hereby imposed at a rate not to exceed one-half of one percent on the wages earned, and net earnings from self-employment, within the city, of every nonresident individual, estate and trust.(b)
Exclusion. (1) In computing the amount of wages and net earnings from self-employment taxable under subsection (a) of this section, there shall be allowed an exclusion against the total of wages and net earnings from self-employment in accordance with the following table: Total of Wages and Net Earnings From Self-Employment Exclusion Allowable Not Over $10,000 $3,000 Over $10,000 But Not Over $20,000 $2,000 Over $20,000 But Not Over $30,000 $1,000 Over $30,000 NONE (2) The exclusion allowable shall be applied pro rata against wages and net earnings from self-employment. (3) For taxable periods of less than one year, the exclusion allowable shall be prorated pursuant to regulations of the state tax commission.(c)
Limitation. In no event shall a taxpayer be subject to the tax under this local law in an amount greater than he would be required to pay if he were a resident of the city and subject to a city income tax surcharge on residents of the city adopted by the city pursuant to authority granted by article thirty-A of the tax law. § 3. Taxable years to which tax imposed by this local law applies. The tax imposed by this local law is imposed for taxable years beginning after December thirty-first, nineteen hundred eighty-three and before January first, two thousand twenty-six. § 4. Allocation to the city.(a)
General. If net earnings from self-employment are derived from services performed, or from sources, within and without the city, there shall be allocated to the city a fair and equitable portion of such earnings.(b)
Allocation of net earnings from self-employment. (1) Place of business. If a taxpayer has no regular place of business outside the city all of his net earnings from self-employment shall be allocated to the city. (2) Allocation by taxpayer’s books. The portion of net earnings from self-employment allocable to the city may be determined from the books and records of a taxpayer’s trade or business, if the methods used in keeping such books and the accuracy thereof are approved by the state tax commission as fairly and equitably reflecting net earnings from self-employment within the city. (3) Allocation by formula. If paragraph two of this subsection does not apply to the taxpayer, the portion of net earnings from self-employment allocable to the city shall be determined by multiplying (A) net earnings from self-employment within and without the city, by (B) the average of the following three percentages:(i)
Property percentage. The percentage computed by dividing (I) the average of the value, at the beginning and end of the taxable year, of real and tangible personal property connected with the net earnings from self-employment and located within the city, by (II) the average of the value, at the beginning and end of the taxable year, of all real and tangible personal property connected with the net earnings from self-employment and located both within and without the city. For this purpose, real property shall include real property, whether owned or rented.(ii)
Payroll percentage. The percentage computed by dividing (I) the total wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the net earnings from self-employment derived from a trade or business carried on within the city, by (II) the total of all wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the net earnings from self-employment derived from a trade or business carried on both within and without the city.(iii)
Gross income percentage. The percentage computed by dividing (I) the gross sales or charges for services performed by or through an agency located within the city, by (II) the total of all gross sales or charges for services performed within and without the city. The sales or charges to be allocated to the city shall include all sales negotiated or consummated, and charges for services performed, by an employee, agent, agency or independent contractor chiefly situated at, connected by contract or otherwise with, or sent out from, offices or other agencies of the trade or business from which a taxpayer is deriving net earnings from self-employment, situated within the city.(c)
Other allocation methods. The portion of net earnings from self-employment allocable to the city shall be determined in accordance with rules and regulations of the state tax commission if it shall appear to the tax commission that the net earnings from self-employment are not fairly and equitably reflected under the provisions of subsection (b) of this section.(d)
Special rules for real estate. Income and deductions from the rental of real property and gain and loss from the sale, exchange or other disposition of real property, shall not be subject to allocation under subsection (b) or (c) of this section, but shall be considered as entirely derived from or connected with the place in which such property is located. § 5. Accounting periods and methods.(a)
Accounting periods. A taxpayer’s taxable year under this local law shall be the same as his taxable year for federal income tax purposes.(b)
Change of accounting periods. If a taxpayer’s taxable year is changed for federal income tax purposes, his taxable year for purposes of this local law shall be similarly changed. If a taxable period of less than twelve months results from a change of taxable year, the exclusion allowable under § 2 (Definitions)section two of this local law shall be prorated under regulations of the state tax commission.(c)
Accounting methods. A taxpayer’s method of accounting under this local law shall be the same as his method of accounting for federal income tax purposes. In the absence of any method of accounting for federal income tax purposes, net earnings from self-employment within the city shall be computed under such method as in the opinion of the state tax commission clearly reflects net earnings from self-employment within the city.(d)
Change of accounting methods. (1) If a taxpayer’s method of accounting is changed for federal income tax purposes, his method of accounting for purposes of this local law shall be similarly changed. (2) If a taxpayer’s method of accounting is changed, other than from an accrual to an installment method, any additional tax which results from adjustments determined to be necessary solely by reason of the change shall not be greater than if such adjustments were ratably allocated and included for the taxable year of the change and the preceding taxable years beginning after nineteen hundred eighty-three, not in excess of two, during which the taxpayer used the method of accounting from which the change is made. (3) If a taxpayer’s method of accounting is changed from an accrual to an installment method, any additional tax for the year of such change of method and for any subsequent year which is attributable to the receipt of installment payments properly accrued in a prior year, shall be reduced by the portion of tax for any prior taxable year attributable to the accrual of such installment payments, in accordance with regulations of the state tax commission. § 7. Withholding of tax on wages. The provisions contained in part V of article twenty-two of the tax law (relating to withholding of tax on wages) shall be applicable with the same force and effect as if those provisions had been incorporated in full in this section and had expressly referred to the tax imposed by this local law except where inconsistent with the provisions of this local law, except that the term “aggregate amount” contained in paragraphs one, two and three of subsection (a) of Tax Law § 674 (Employer’s return and payment of withheld taxes)section six hundred seventy-four of the tax law shall mean the aggregate of the aggregate amounts of New York state personal income tax, city earnings tax on nonresidents authorized pursuant to article two-E of the general city law, city earnings tax on nonresidents authorized pursuant to article thirty-B of the tax law, city personal income tax on residents authorized pursuant to article thirty of the tax law and city income tax surcharge on residents authorized pursuant to article thirty-A of the tax law required to be deducted and withheld. § 8. Returns and payment of tax.(a)
General. On or before the fifteenth day of the fourth month following the close of the taxable year, every person subject to the tax shall make and file a return and any balance of the tax shown due on the face of such return shall be paid therewith. The state tax commission may, by regulation, provide for the filing of returns and payment of the tax at such other times as it deems necessary for the proper enforcement of this local law. The state tax commission may also provide by regulation that any return otherwise required to be made and filed under this local law by any nonresident individual need not be made and filed if such nonresident individual had, during the taxable year to which the return would relate, no net earnings from self-employment within the city. Any regulation allowing such waiver of return may provide for additional limitations on and conditions and prerequisites to the privilege of not filing a return.(b)
Decedents. The return for any deceased individual shall be made and filed by his executor, administrator, or other person charged with his property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year.(c)
Individuals under a disability. The return for an individual who is unable to make a return by reason of minority or other disability shall be made and filed by his guardian, committee, fiduciary or other person charged with the care of his person or property (other than a receiver in possession of only a part of his property), or by his duly authorized agent.(d)
Estates and trusts. The return for an estate or trust shall be made and filed by the fiduciary.(e)
Joint fiduciaries. If two or more fiduciaries are acting jointly, the return may be made by any one of them.(f)
Cross reference. For provisions as to information returns by partnerships, employers and other persons, see section fourteen. § 9. Combined returns and employer’s returns. The state tax commission may require: (1) The filing of any or all of the following: (A) A combined return which in addition to the return provided for in a local law authorized by article thirty-B of the tax law may also include returns required to be filed under a local law authorized by article two-E of the general city law or article thirty or thirty-A of the tax law and under article twenty-two of the tax law. (B) A combined employer’s return which in addition to the employer’s return provided for in a local law authorized by article thirty-B of the tax law may also include employer’s returns required to be filed under a local law authorized by article two-E of the general city law or article thirty or thirty-A of the tax law and under article twenty-two of the tax law. (2) Where a combined return or employer’s return is required, and with respect to the payment of estimated tax, the state tax commission may also require payment of a single amount which shall be the total of the amounts (total taxes less any credits or refunds) required to be paid with the returns or employer’s returns or in payment of estimated tax pursuant to the provisions of local laws imposed under the authority of article thirty-B of the tax law, article two-E of the general city law or article thirty or thirty-A of the tax law and pursuant to the provisions of article twenty-two of the tax law. § 10. Time and place for filing returns and paying tax. A person required to make and file a return under this local law shall, without assessment, notice or demand, pay any tax due thereon to the state tax commission on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return). The state tax commission shall prescribe by regulation the place for filing any return, statement or other document required pursuant to this local law and for payment of any tax. § 11. Signing of returns and other documents.(a)
General. Any return, statement or other document required to be made pursuant to this local law shall be signed in accordance with regulations or instructions prescribed by the state tax commission. The fact that an individual’s name is signed to a return, statement or other document, shall be prima facie evidence for all purposes that the return, statement or other document was actually signed by him.(b)
Partnerships. Any return, statement or other document required of a partnership shall be signed by one or more partners. The fact that a partner’s name is signed to a return, statement or other document, shall be prima facie evidence for all purposes that such partner is authorized to sign on behalf of the partnership.(c)
Certifications. The making or filing of any return, statement or other document or copy thereof required to be made or filed pursuant to this local law, including a copy of a federal return, shall constitute a certification by the person making or filing such return, statement or other document or copy thereof that the statements contained therein are true and that any copy filed is a true copy. § 12. Change of residence status during year.(a)
General. If an individual changes his status during his taxable year from resident to nonresident, or from nonresident to resident, he shall file a return as a nonresident for the portion of the year during which he is a nonresident if he is subject to the tax imposed by this local law or, if not subject to such tax, an information return for the portion of the year during which he is a nonresident, subject to such exceptions as the state tax commission may prescribe by regulation. Such information return shall be due at the same time as the return required by a local law authorized by article thirty-A of the tax law for the portion of the year during which such individual is a resident.(b)
City taxable wages and net earnings from self-employment for portion of year individual is a nonresident. The city taxable wages and net earnings from self-employment for the portion of the year during which the taxpayer is a nonresident shall be determined, except as provided in subsection (c), under this local law as if his taxable year for federal income tax purposes were limited to the period of his nonresident status.(c)
Special accruals. (1) If a individual changes his status from resident to nonresident, he shall, regardless of his method of accounting, accrue for the portion of the taxable year prior to such change of status any items of income, gain, loss or deduction accruing prior to the change of status, if not otherwise properly includible (whether or not because of an election to report on an installment basis) or allowable for city earnings tax purposes for such portion of the taxable year or a prior taxable year. The amounts of such accrued items shall be determined as if such accrued items were includible or allowable for federal self-employment tax purposes. (2) If an individual changes his status from nonresident to resident, he shall, regardless of his method of accounting, accrue for the portion of the taxable year prior to such change of status any items of income, gain, loss or deduction accruing prior to the change of status, if not otherwise properly includible (whether or not because of an election to report on an installment basis) or allowable for federal self-employment tax purposes for such portion of the taxable year or a prior taxable year. The amounts of such accrued items shall be determined as if such accrued items were includible or allowable for federal self-employment tax purposes. (3) No item of income, gain, loss or deduction which is accrued under this subsection shall be taken into account in determining city adjusted wages earned, or net earnings from self-employment, within the city, for any subsequent taxable period. (4) Where an individual changes his status from resident to nonresident, the accruals under this subsection shall not be required if the individual files with the state tax commission a bond or other security acceptable to the commission, conditioned upon the inclusion of amounts accruable under this subsection in the determination of the city income tax surcharge under a local law authorized by article thirty-A of the tax law for one or more subsequent taxable years as if the individual had not changed his resident status. In such event, the tax under this local law shall not apply to such amounts.(d)
Prorations. Where an individual changes his status during his taxable year from resident to nonresident or from nonresident to resident, the exclusion allowable under subsection (b) of section two shall be prorated, under regulations of the state tax commission, to reflect the portions of the entire taxable year during which the individual was a resident and a nonresident. § 13. Extensions of time. The state tax commission may grant a reasonable extension of time for payment of a tax or estimated tax (or any installment), or for filing any return, statement or other document required pursuant to this local law, on such terms and conditions as it may require. Except for a taxpayer who is outside the United States or who intends to claim nonresident status pursuant to subparagraph (B) of paragraph one of subsection (f) of section one, no such extension for filing any return, statement or other document shall exceed six months. § 14. Requirements concerning returns, notices, records and statements.(a)
General. The state tax commission may prescribe regulations as to the keeping of records, the content and form of returns and statements, and the filing of copies of federal income tax returns and determinations. The state tax commission may require any person, by regulation or notice served upon such person, to make such returns, render such statements, or keep such records, as the state tax commission may deem sufficient to show whether or not such person is liable under this local law for tax or for collection of tax.(b)
Partnerships. Every partnership doing business in the city and having no partners who are residents shall make a return for the taxable year setting forth all items of income, gain, loss and deduction and such other pertinent information as the state tax commission may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the fourth month following the close of each taxable year. For purposes of this subsection, “taxable year” means a year or a period which would be a taxable year of the partnership if it were subject to tax under this local law.(c)
Information at source. The state tax commission may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this local law. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensation, remunerations, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. A duplicate of the statement as to tax withheld on wages, required to be furnished by an employer to an employee, shall constitute the return of information required to be made under this section with respect to such wages.(d)
Notice of qualification as receiver, etc. Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary shall give notice of his qualification as such to the state tax commission, as may be required by regulation. § 15. Report of change in federal or New York state taxable income. If the amount of a taxpayer’s federal or New York state taxable income or self-employment income reported on his federal or New York state tax return for any taxable year is changed or corrected by the United States internal revenue service or the New York state commissioner of taxation and finance or other competent authority, or as the result of a renegotiation of a contract or subcontract with the United States or New York state or if a taxpayer, pursuant to subsection (d) of section six thousand two hundred thirteen of the internal revenue code, executes a notice of waiver of the restrictions provided in subsection (a) of said section or if a taxpayer, pursuant to subsection (f) of Tax Law § 681 (Notice of deficiency)section six hundred eighty-one of the tax law executes a notice of waiver of the restrictions provided in subsection (c) of said section, or if any tax on self-employment income in addition to that shown on his return is assessed, the taxpayer shall report such change or correction in federal or New York state taxable income or such execution of such notice of waiver or such assessment and the changes or corrections of his federal or New York state taxable income or self-employment income on which it is based, within ninety days after the final determination of such change, correction, or renegotiation, or such execution of such notice of waiver or the making of such assessment as otherwise required by the commissioner, and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended federal or New York state income or self-employment income tax return shall also file within ninety days thereafter an amended return under this local law, and shall give such information as the commissioner may require. The commissioner may by regulation prescribe such exceptions to the requirements of this section as he or she deems appropriate. For purposes of this section, (i) the term “taxpayer” shall include a partnership having any income derived from city sources, and(ii)
the term “federal income tax return” shall include the returns of income required under section six thousand thirty-one of the internal revenue code. Reports made under this section by a partnership shall indicate the portion of the change in each item of income, gain, loss or deduction allocable to each partner and shall set forth such identifying information with respect to such partner as may be prescribed by the commissioner. § 16. Effect of invalidity in part; inconsistencies with other laws.(a)
If any clause, sentence, paragraph, subsection, section, provision or other portion of this local law or the application thereof to any person or circumstances shall be held to be invalid, such holding shall not affect, impair or invalidate the remainder of this local law or the application of such portion held invalid, to any other person or circumstances, but shall be confined in its operation to the clause, sentence, paragraph, subsection, section, provision or other portion thereof directly involved in such holding or to the person and circumstances therein involved.(b)
If any provision of this local law is inconsistent with, in conflict with, or contrary to any other provision of law, such provision of this local law shall prevail over such other provision and such other provision shall be deemed to have been amended, superseded or repealed to the extent of such inconsistency, conflict or contrariety.(d)
Any wages received by an individual as an employee of a business located in a tax-free NY area within the city during the first five years of such business’s ten year taxable period specified in subdivision (a) of § 39 (Tax benefits for businesses located in tax-free NY areas and employees of such businesses)section thirty-nine of this chapter and earned at such location shall be exempt from the tax authorized to be imposed by this article to the extent included in federal adjusted gross income and allowed under § 39 (Tax benefits for businesses located in tax-free NY areas and employees of such businesses)section thirty-nine of this chapter. During the second five years of such business’s ten year taxable period, the first two hundred thousand dollars of such wages in the case of a taxpayer filing as a single individual, the first two hundred fifty thousand dollars of such wages in the case of a taxpayer filing as a head of household, and three hundred thousand dollars of such wages in the case of a taxpayer filing a joint return, to the extent included in federal adjusted gross income and allowed under § 39 (Tax benefits for businesses located in tax-free NY areas and employees of such businesses)section thirty-nine of this chapter.
Source:
Section 1340 — Authorization to impose tax, https://www.nysenate.gov/legislation/laws/TAX/1340 (updated Jul. 7, 2023; accessed Oct. 26, 2024).
