NY Tax L § 624 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 2 - Residents 624 - Computation of Separate Tax on the Ordinary Income Portion of Lump Sum Distributions Received by Resident Individuals, Estates and Trusts.

§  624.  Computation of separate tax on the ordinary income portion of lump sum distributions received by  resident  individuals,  estates  and trusts.  (a)  Amount  of  separate  tax. The amount of tax imposed under section six hundred three for any taxable  year,  with  respect  to  the ordinary  income  portion  of  a  lump  sum  distribution  received by a resident individual, estate or trust is an amount equal  to  five  times the  tax which would be imposed by subsection (c) of section six hundred one if the recipient of such lump sum distribution  were  an  individual referred  to  in such subsection and the New York taxable income 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.  (b)  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.  (c) 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 "paragraph (1) (A)" shall be  deemed  to  be references to this section, and except that only lump sum distributions (or portions thereof)  and  distributions  of  annuity contracts  subject  to  tax  under  this  article shall be included, and except that references to the secretary shall be deemed to be references to the tax commission.  (d) 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  five  and  four-tenths  percent, and (ii) in the event that paragraph five of such subsection is applicable, the  words  "five"  and "one-fifth" in subsection (a) of this section shall be read as "ten" and "one-tenth",  respectively,  and subsection (a) of this section shall be applied by using the rate of tax specified in subsection (f) of  section six  hundred  two  as  such  subsection  was in effect for taxable years beginning in nineteen hundred eighty-six.