NY Tax L § 1301-B (2021)
2021 New York Laws TAX - Tax Article 30 - City Personal Income Tax 1301-B - City Separate Tax on the Ordinary Income Portion of Lump Sum Distributions.

§ 1301-B. City separate tax on the ordinary income portion of lump sum distributions.  (a) Imposition of separate tax. The city separate tax on the ordinary income portion of a lump sum distribution imposed  pursuant to  the authority of this article shall be imposed for each taxable year on the ordinary income portion of  a  lump  sum  distribution  of  every resident  individual,  estate  or  trust  of such city which has made an election of lump sum treatment under  subsection  (e)  of  section  four hundred two of the internal revenue code.  (b)  Amount of separate tax. The amount of tax imposed pursuant to the authority of subsection (a) for any taxable  year  shall  be  an  amount equal to five times the tax which would be imposed at the rate set forth in  paragraph three of subsection (a) or (b) of section thirteen hundred four of this article, whichever may be applicable, if the recipient were an individual referred to in such subsection and the city taxable income referred to were an amount equal to one-fifth of the excess of:  (1) the total taxable amount of the  lump  sum  distribution  for  the taxable year, over  (2) the minimum distribution allowance.  (c)  Minimum distribution allowance. For purposes of this section, the minimum  distribution  allowance  shall  be  that  which  is  calculated according  to  subparagraph  (C)  of  paragraph one of subsection (e) of section four hundred two of the internal revenue code.  (d) Liability for tax. The recipient of a lump sum distribution  shall be liable for the tax imposed pursuant to the authority of this section.  (e) Multiple distributions and distributions of annuity contracts. For purposes of this section the rules concerning multiple distributions and distributions  of  annuity  contracts  as  specified by paragraph two of subsection (e) of section four hundred two of the internal revenue  code shall  be  applicable,  except  that  references  to the "tax imposed by paragraph (1) (A)" shall be deemed to be references to the city separate tax on the ordinary income portion of a lump sum distribution authorized by this article,  and  except  that  only  lump  sum  distributions  (or portions  thereof) and distributions of annuity contracts subject to the city  separate  tax  on  the  ordinary  income  portion  of   lump   sum distributions  authorized  by this article shall be included, and except that references to the secretary shall be deemed to be references to the tax commission.  (f) Definitions and special rules. For purposes of this  section,  the following  provisions  shall  apply,  to  the  extent  applicable to the taxpayer's federal tax on lump sum distributions:  (1)  the  definitions and  special  rules  as specified in paragraph four of subsection (e) of section four hundred two of the  internal  revenue  code;  and  (2)  the special  rules  relating to (A) individuals who have attained the age of fifty before January first, nineteen hundred eighty-six and (B)  capital gains,  as  specified  in  paragraphs  three,  four,  five  and  six  of subsection (h) of section eleven hundred twenty-two of  the  tax  reform act  of nineteen hundred eighty-six as enacted by public law 99-514, but (i) in the event that paragraph three of such subsection is  applicable, clause (ii) of subparagraph (B) of such paragraph shall be applied using a  rate of one and seventy-two hundredths percent, and (ii) in the event that paragraph five of such subsection is applicable, the  words  "five" and "one-fifth" in subsection (b) of this section shall be read as "ten" and  "one-tenth", respectively, and subsection (b) of this section shall be applied by using the rate of  tax  specified  in  subsection  (a)  of section  thirteen  hundred  four  as  such  subsection was in effect for taxable years beginning in nineteen hundred eighty-six.  (g) Credits. The credits against tax authorized  under  this  article, except  for  the credit under subsection (a) of section thirteen hundred  ten, shall not be allowed against the city separate tax on the  ordinary income  portion  of  lump  sum  distributions  imposed  pursuant  to the authority of this article.