2023 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-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 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-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  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.