NY Tax L § 1340 (2021)
2021 New York Laws TAX - Tax Article 30-B - City Earnings Tax on Nonresidents 1340 - Authorization to Impose Tax.

§  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-four.  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-four. 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 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  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  section  twenty-three  of  the  general municipal  law  or  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 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 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 section twenty-three of the general municipal law or 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 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 section twenty-three of the general municipal law or 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 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  section one  hundred  two  of  the  limited  liability  company  law,  a limited liability investment company formed pursuant  to  section  five  hundred seven  of  the  banking law, or a limited liability trust company formed pursuant to 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-four.    § 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  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 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 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 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 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 section thirty-nine of this chapter.