2023 New York Laws › GCM - General City Model 772/66

Section  1.    Notwithstanding  any  other  provision  of  law  to the
contrary, any city having a population of one million  or  more,  acting
through  its  local legislative body, is hereby authorized and empowered
to adopt and amend local laws  imposing  for  any  such  city  taxes  on
general   corporations,   financial   corporations   and  transportation
corporations at the rates provided herein, or if alternative  rates  are
provided,  then,  in  such  event, at either of such rates. The terms of
such local law or local laws shall be, substantially, as follows  except
that  any such local law may be amended for the purpose of conforming it
with similar provisions of articles 9-A, 27 and 32 (except section  1456
thereof) of the tax law and section 8 of chapter 167 of the laws of 1972
as presently in effect or as they may be amended provided, however, that
the  definition  set  forth in subsection (c) of section 1450 of the tax
law and the deduction set forth in subsection (f) of section 1453 of the
tax law shall be incorporated in any local law imposing a tax such as is
imposed by article 32 of the tax law and provided further, that  credits
analogous  to  the  credits  provided  in  paragraphs  (b)  and  (c)  of
subdivision 1 of section 4-h of part 2 of this section  and  subject  to
the limitations contained in such part, may be incorporated in any local
law  imposing  a tax such as is imposed under article 32 of the tax law,
and provided further, that a  provision  analogous  to  paragraph  1  of
subsection  (b)  of  section  1455  of  the tax law, as such paragraph 1
existed immediately prior to its repeal by section 24 of chapter 298  of
the laws of 1985 (but subject to the amendments contained in paragraph 2
of subdivision (b) of section 11-643.5 of the administrative code of the
city  of  New  York),  shall  continue  to apply to banking corporations
organized under the laws of any country other than the United States and
provided further, however, that in the  event  that  any  local  law  is
adopted  imposing a tax such as is imposed by such article 32 of the tax
law, then no tax imposed by such city for any periods for  which  a  tax
such  as  is  imposed by such article 32 is imposed and the rates of tax
under any such local law imposing a tax  such  as  is  imposed  by  such
article  32  shall  be,  for  the  basic  tax analogous to that fixed by
subsection (a) of section 1455 of the tax law, no greater than nine  per
centum,  for  the  alternative minimum tax analogous to that fixed under
paragraph 1 of subsection (b) of  such  section,  as  such  paragraph  1
existed  prior to its repeal by section 24 of chapter 298 of the laws of
1985 (but  subject  to  the  amendments  contained  in  paragraph  2  of
subdivision  (b)  of  section 11-643.5 of the administrative code of the
city of New York), no greater than two and six-tenths mills  per  dollar
of  issued  capital  stock  or  the  excess of average total assets over
average  total  liabilities  apportionable  to  such   city,   for   the
alternative  minimum  tax analogous to that fixed under such paragraph 1
as added by section 24 of such chapter, no greater than one-tenth  of  a
mill,  for  the  alternative  minimum  tax  analogous  to  that fixed by
paragraph 2 of such subsection, no greater than three percent,  and  for
the  alternative  minimum  tax analogous to that fixed by paragraph 3 of
such subsection, no greater than one  hundred  twenty-five  dollars  and
except  that  the  appendix  in  such  local laws may be amended for the
purpose of conforming it with the United States internal revenue code or
other federal laws relating to taxation as presently  in  effect  or  as
they  may  be amended, and provided further, however, any such local law
imposing a tax such as is imposed by such article 32 may be  amended  to
conform it with the analogous provisions of subparagraph 11 of paragraph
(a), subparagraph 13 of paragraph (b) and paragraphs (l), (m) and (n) of
subdivision 8 of section 2 of section 1 of this chapter:
CITY BUSINESS TAX
PART I
GENERAL PROVISIONS
Section  1.   Definitions.
PART II
GENERAL CORPORATION TAX
Section  2.   Definitions.
3.   Imposition of tax; exemptions.
4.   Computation of tax.
4-a. Credit relating to stock transfer tax.
4-b. Credit  relating  to  certain  sales  and compensating use
taxes.
4-c. Credit relating to certain expenses involved in  the  cost
of   relocating  industrial  and  commercial  employment
opportunities.
(4-d) Credit relating to the annual increase in certain payments
to a landlord by a taxpayer  relocating  industrial  and
commercial employment opportunities.
4-e. Credit  relating  to  certain  sales  and compensating use
taxes.
4-f. Credit relating to  certain  sales  and  compensating  use
taxes  on  electricity used in manufacturing, processing
or assembling.
4-h. Relocation and employment assistance credit.
5.   Reports.
6.   Payment and lien of tax.
7.   Declaration of estimated tax.
8.   Payments on account of estimated tax.
9.   Collection of taxes.
10.   Limitations of time.
PART III
FINANCIAL CORPORATION TAX
SUBPART 1
TAX ON STATE BANKS, TRUST COMPANIES, FINANCIAL
CORPORATIONS AND SAVINGS AND LOAN ASSOCIATIONS
Section  11.  Definitions.
*12.  Tax based on net  income;  imposition;  minimum  tax;  new
corporations; dissolution; consolidations; mergers; etc.
13.  Years for which imposed.
14.  Ascertainment of gain or loss.
15.  Exchange of property.
16.  Exchange of property when no gain or loss is realized.
17.  Inventory.
18.  Net income defined.
19.  Computation of net income.
20.  Gross income defined.
21.  Deductions.
22.  Items not deductible.
* Does not conform to section heading in text of law.
SUBPART 2
TAX ON NATIONAL BANKING ASSOCIATIONS AND
PRODUCTION CREDIT ASSOCIATIONS
Section 23.   Imposition of tax.
24.   Years for which imposed.
25.   Ascertainment of gain or loss; exchange of property.
26.   Inventory.
27.   Net income defined; computation.
28.   Gross income defined.
29.   Deductions.
30.   Administration; procedure; provisions of law applicable.
31.   Tax on production credit associations.
SUBPART 3
ADMINISTRATION FOR SUBPARTS 1 AND 2
Section 32.   Taxpayers' returns.
33.   Consolidated returns.
34.   Payment of tax.
35.   Declaration  of  estimated  tax;  payments  on  account of
estimated tax.
36.   Real property taxable.
PART V
TRANSPORTATION CORPORATION TAX
Section 61.   Tax on transportation corporations and associations.
62.   Additional  tax   on   transportation   corporations   and
associations.
63.   Receivers, etc., conducting corporate business.
64.   Service of process; limitations of time.
65.   Exemption of Corporations Owned by a Municipality.
66.   Reports of Corporations.
67.   Payment of tax and penalties.
68.   Taxable years to which taxes apply.
69.   First reports for nineteen hundred sixty-six.
PART VI
CORPORATE TAX PROCEDURE AND ADMINISTRATION)
Section 71.   Application of part.
72.   Notice of Deficiency.
73.   Assessment.
74.   Limitations on Assessment.
75.   Interest on underpayment.
76.   Additions to tax and civil penalties.
77.   Overpayment.
78.   Limitations of credit or refund.
79.   Interest on overpayment.
80.   Petition to director of finance.
81.   Review of director's decision.
82.   Mailing rules; holidays.
83.   Collection, levy and liens.
84.   Transferees.
85.   Jeopardy assessment.
86.   Criminal penalties.
87.   General powers of director of finance.
88.   Secrecy required of official; penalty for violation.
89.   Disposition of revenues.
90.   Inconsistencies with other laws.
91.   Effect of invalidity in part.
PART I
GENERAL PROVISIONS
Section 1. Definitions. When used in parts one through six:
1. "Taxpayer" means any corporation subject to tax;
2. "City" or "the city" means the city imposing the tax;
3. "State," "the state" or "this state" means the state of New York;
4.  "Tax  commission,"  "department of state," "department of taxation
and  finance,"  "department  of  public  service,"  and  "department  of
insurance," refers to agencies and departments of the state;
5. "Commission" means the tax commission of the state;
6.  "Tax law," "insurance law," "private housing finance law," "public
health law," "public housing law,"  "finance  law,"  "general  municipal
law,"   "public  service  law,"  "general  corporation  law,"  "business
corporation law," "civil practice law  and  rules,"  "code  of  criminal
procedure," and "banking law," refer to laws of the state;
7. "Attorney General," "superintendent of insurance," "commissioner of
taxation  and  finance," "secretary of state," "commissioner of health,"
and "comptroller," refer to officials of the state;
8. "Director of finance" means the director of finance or other fiscal
officer of the city charged with administration of excise taxes  by  the
charter of the city or by other provision of law.
9. "Domestic corporation" means a corporation organized under the laws
of the state; and
10.  Unless  a different meaning is clearly required, any term used in
any title other than parts four and five shall have the same meaning  as
when  used  in  a  comparable  context  in the laws of the United States
relating to federal income taxes, and any reference to the laws  of  the
United  States shall mean the provisions of the internal revenue code of
nineteen  hundred  fifty-four,  and  amendments   thereto,   and   other
provisions  of  the laws of the United States relating to federal income
taxes, as the same are included in the title  appendix  hereinafter  set
forth  or  as  included  by  reference  to  an appendix of another title
enacted by the same local law. (The quotation of the aforesaid  laws  of
the  United  States  is  intended to make them a part of any appropriate
title and to avoid constitutional uncertainties which  might  result  if
such  laws  were  merely  incorporated  by reference. The quotation of a
provision of the federal internal revenue code or of any  other  law  of
the United States shall not necessarily mean that it is applicable to or
has relevance to any of the titles.)
11.  "Title,"  when  used in any part except parts four or five, means
all parts except parts four or five, and, when used in part four or part
five, means the part in  which  it  is  used  together  with  part  one;
provided,  however,  that, whenever it is used in a manner which clearly
shows that it is intended  to  encompass  all  parts,  it  shall  be  so
construed.
PART II
GENERAL CORPORATION TAX
§ 2. Definitions. When used in this part:
1. "Corporation" includes a joint-stock company or association and any
business  conducted  by  a  trustee  or  trustees  wherein  interest  or
ownership is evidenced by certificate or other written instrument;
2. "Subsidiary" means a corporation of which over fifty per centum  of
the  number of shares of stock entitling the holders thereof to vote for
the election of directors or trustees is owned by the taxpayer;
3. "Subsidiary capital" means investments in the stock of subsidiaries
and any indebtedness from subsidiaries,  whether  or  not  evidenced  by
written instrument, on which interest is not claimed and deducted by the
subsidiary  for  purposes  of  taxation under this part or part three of
this title, provided, however, that, in the discretion of  the  director
of  finance,  there  shall  be  deducted  from  subsidiary  capital  any
liabilities payable by their terms on demand or within one year from the
date incurred, other than loans or advances outstanding for more than  a
year  as  of  any  date during the year covered by the report, which are
attributable to subsidiary capital;
4. "Investment capital" means investments in stocks, bonds  and  other
securities,  corporate  and governmental, not held for sale to customers
in the regular course of business, exclusive of subsidiary  capital  and
stock issued by the taxpayer, provided, however, that, in the discretion

of  the  director  of  finance  there  shall be deducted from investment
capital any liabilities payable by their terms on demand or  within  one
year  from  the  date incurred, other than loans or advances outstanding
for  more  than  a  year  as  of any date during the year covered by the
report, which are attributable to investment capital;
5. "Investment income" means income, including capital gains in excess
of capital losses, from investment capital, to the  extent  included  in
computing entire net income, less, (a) in the discretion of the director
of  finance,  any  deductions  allowable  in computing entire net income
which are attributable to investment capital or investment  income,  and
(b)  such  portion  of  any  net  operating  loss deduction allowable in
computing entire net income,  as  the  investment  income,  before  such
deduction,  bears to entire net income, before such deduction, provided,
however, that in no case  shall  investment  income  exceed  entire  net
income;
6. "Business capital" means all assets, other than subsidiary capital,
investment  capital  and  stock issued by the taxpayer, less liabilities
not deducted from subsidiary or investment capital which are payable  by
their  terms  on demand or within one year from the date incurred, other
than loans or advances outstanding for more than a year as of  any  date
during  the  year  covered  by  the  report, except that, subject to the
provisions of subdivision six of section four of this part, cash on hand
and on deposit shall be treated as investment  capital  or  as  business
capital as the taxpayer may elect;
7. "Business income" means entire net income minus investment income;
8.  "Entire  net income" means total net income from all sources which
shall be the same  as  the  taxpayer's  entire  federal  taxable  income
computed  without  regard  to any election under subchapter s of chapter
one of the internal revenue code, except as  hereinafter  provided,  and
subject  to  any  modification  required by paragraph (d) of subdivision
three of section four of this part.
(a) Entire net income shall not include:
(1) income, gains and losses from  subsidiary  capital  which  do  not
include the amount of a recovery in respect of any war loss;
(2) fifty per centum of dividends other than from subsidiaries;
(3) bona fide gifts;
(4) income and deductions with respect to amounts received from school
districts and from corporations and associations, organized and operated
exclusively  for  religious, charitable or educational purposes, no part
of the net earnings of which  inures  to  the  benefit  of  any  private
shareholder or individual, for the operation of school buses; and
(5)  any refund or credit of a tax imposed under this part, or imposed
by article nine or article nine-A of the  tax  law,  for  which  tax  no
exclusion  or deduction was allowed in determining the taxpayer's entire
net income under this part for any prior year;
(6) in the case of a taxpayer who is separately or as a partner  of  a
partnership  doing  an  insurance  business  as a member of the New York
insurance exchange described in paragraph  (a)  of  subdivision  one  of
section  four  hundred  twenty-five-a  of the insurance law, any item of
income, gain, loss or deduction of such business which is the taxpayer's
distributive or pro rata share for federal income tax purposes or  which
the  taxpayer  is  required  to take into account separately for federal
income tax purposes.
(7) for taxable years beginning after December thirty-first,  nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue code (relating to qualified mass commuting vehicles), any amount

which  is  included in the taxpayer's federal taxable income solely as a
result of an election made pursuant to the provisions of such  paragraph
eight  as  it was in effect for agreements entered into prior to January
first, nineteen hundred eighty-four;
(8)  for taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to property which is a qualified
mass commuting vehicle described in subparagraph (D) of paragraph  eight
of  subsection  (f)  of  section one hundred sixty-eight of the internal
revenue code (relating to qualified mass commuting vehicles), any amount
which the taxpayer could have excluded from federal taxable  income  had
it  not made the election provided for in such paragraph eight as it was
in effect for agreements entered into prior to January  first,  nineteen
hundred eighty-four;
(9)   the   amount  deductible  pursuant  to  paragraph  (j)  of  this
subdivision; and
(10) upon the disposition of recovery property to which paragraph  (j)
of  this subdivision applies, the amount, if any, by which the aggregate
of the amounts described in subparagraph eleven of paragraph (b) of this
subdivision attributable to such property exceeds the aggregate  of  the
amounts  described  in paragraph (j) of this subdivision attributable to
such property.
(11) for taxable years ending after September  10,  2001,  the  amount
deductible pursuant to paragraph (1) of this subdivision.
(b)  Entire  net  income  shall  be  determined without the exclusion,
deduction or credit of:
(1) the amount of any specific exemption or credit allowed in any  law
of  the  United  States imposing any tax on or measured by the income of
corporations,
(2) any part of any income from dividends or interest on any  kind  of
stock, securities or indebtedness, except as provided in clauses one and
two of paragraph (a) hereof,
(3)  taxes  paid  or  accrued  to  the United States on or measured by
profits or income or to the state under article nine or  nine-a  of  the
tax law,
(4) taxes imposed under this part,
(4-a) (A) the entire amount allowable as an exclusion or deduction for
stock  transfer  taxes  imposed  by  article  twelve  of  the tax law in
determining the entire taxable income which the taxpayer is required  to
report  to  the United States treasury department but only to the extent
that such taxes are incurred and paid in market making transactions  and
(B)  the  amount  allowed as an exclusion or deduction for sales and use
taxes imposed by  section  eleven  hundred  seven  of  the  tax  law  in
determining  the entire taxable income which the taxpayer is required to
report to the United States treasury department but only such portion of
such exclusion or deduction which is not in excess of the amount of  the
credit allowed pursuant to section four-b of this part.
(4-b)  the  amount allowed as an exclusion or deduction imposed by the
tax law in determining the entire taxable income which the  taxpayer  is
required  to  report  to  the United States treasury department but only
such portion of such exclusion or deduction which is not  in  excess  of
the  amount  of  the  credit or part thereof allowed pursuant to section
four-c of this part with respect to a taxable year.
(4-c) the amount allowed as an exclusion or deduction imposed  by  the
tax  law  in determining the entire taxable income which the taxpayer is
required to report to the United States  treasury  department  but  only
such  portion  of  such exclusion or deduction which is not in excess of
the amount of the credit allowed pursuant  to  section  four-d  of  this
part.
(4-d)  The  amount  allowed as an exclusion or deduction for sales and
use taxes imposed by section eleven hundred seven  of  the  tax  law  in
determining  the entire taxable income which the taxpayer is required to
report to the United States Treasury Department but only such portion of
such  exclusion or deduction which is not in excess of the amount of the
credit allowed pursuant to section four-e of this part.
(4-e) the amount allowed as an exclusion or deduction  for  sales  and
use  taxes  imposed  by  section  eleven hundred seven of the tax law in
determining the entire taxable income which the taxpayer is required  to
report  to  the United States treasury department, but only such portion
of such exclusion or deduction which is not in excess of the  amount  of
the credit allowed pursuant to section four-f of this part.
(5)  ninety  per  centum  of  interest  on  indebtedness  directly  or
indirectly  owed  to   any   stockholder   or   shareholder   (including
subsidiaries  of  a corporate stockholder or shareholder), or members of
the immediate family of an individual stockholder or shareholder, owning
in the aggregate in excess of five per  centum  of  the  issued  capital
stock  of  the taxpayer, except that such interest may, in any event, be
deducted
(A) up to an amount not exceeding one thousand dollars,
(B) in full to the extent that it relates to bonds or other  evidences
of  indebtedness  issued,  with  stock,  pursuant to a bona fide plan of
reorganization, to persons, who, prior to such reorganization, were bona
fide creditors of the corporation or  its  predecessors,  but  were  not
stockholders or shareholders thereof,
(C)  in  full where the investment allocation percentage is applied to
entire net income, and
(D) in full to the extent that it is  paid  to  a  federally  licensed
small business investment company;
(6)  in  the  discretion  of  the  director  of finance, any amount of
interest  directly  or  indirectly  and  any   other   amount   directly
attributable  as a carrying charge or otherwise to subsidiary capital or
to income, gains or losses from subsidiary capital; and
(7) any amount by reason of the granting, issuing  or  assuming  of  a
restricted  stock  option,  as  defined  in the internal revenue code of
nineteen hundred fifty-four, or by reason of the transfer of  the  share
of  stock upon the exercise of the option, unless such share is disposed
of by the grantee of the option within two years from the  date  of  the
granting  of  the option or within six months after the transfer of such
share to him;
(8) in the case of a taxpayer who is separately or as a partner  of  a
partnership  doing  an  insurance  business  as a member of the New York
insurance exchange described in paragraph  (a)  of  subdivision  one  of
section four hundred twenty-five-a of the insurance law, such taxpayer's
distributive  or  pro  rata  share of the allocated entire net income of
such business as determined under sections  fifteen  hundred  three  and
fifteen hundred four of the tax law, provided however, in the event such
allocated  entire  net income is a loss, such taxpayer's distributive or
pro rata share of such loss shall not be subtracted from federal taxable
income in computing entire net income under this subdivision.
(9) for taxable years beginning after December thirty-first,  nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue code (relating to qualified mass commuting vehicles), any amount
which  the  taxpayer  claimed  as  a  deduction in computing its federal
taxable income solely as a result of an election made  pursuant  to  the

provisions  of  such  paragraph eight as it was in effect for agreements
entered into prior to January first, nineteen hundred eighty-four;
(10) for taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue code (relating to qualified mass commuting vehicles), any amount
which   the  taxpayer  would  have  been  required  to  include  in  the
computation of its federal taxable income had it not made  the  election
permitted  pursuant  to  such  paragraph  eight  as it was in effect for
agreements  entered  into  prior  to  January  first,  nineteen  hundred
eighty-four;
(11) for taxable years beginning after December thirty-first, nineteen
hundred  eighty-one, except with respect to recovery property subject to
the provisions of section two hundred eighty-F of the  internal  revenue
code  and  recovery  property placed in service in this state in taxable
years  beginning   after   December   thirty-first,   nineteen   hundred
eighty-four  the  amount  allowable  as  a  deduction  under section one
hundred sixty-eight of the internal revenue code;
(12) upon the disposition of recovery property to which paragraph  (j)
of  this subdivision applies, the amount, if any, by which the aggregate
of the amounts described in such  paragraph  (j)  attributable  to  such
property  exceeds the aggregate of the amounts described in subparagraph
eleven of this paragraph attributable to such property.
(13) for taxable years ending after September 10, 2001, in the case of
qualified property described in paragraph 2 of subsection k  of  section
168  of  the internal revenue code, other than qualified resurgence zone
property described in paragraph (n) of this subdivision, and other  than
qualified  New  York  Liberty  Zone property described in paragraph 2 of
subsection b of section 1400L of  the  internal  revenue  code  (without
regard  to clause (i) of subparagraph (C) of such paragraph), the amount
allowable as a deduction under section 167 of the internal revenue code.
(c) Entire net income shall include  income  within  and  without  the
United States;
(d)  The director of finance may, whenever necessary in order properly
to reflect the entire net income of any taxpayer, determine the year  or
period  in  which  any  item  of  income or deduction shall be included,
without regard to the method of accounting employed by the taxpayer;
(e) The entire net income of any bridge commission created by  act  of
congress  to  construct  a bridge across an international boundary means
its gross income less the  expense  of  maintaining  and  operating  its
properties,  the  annual  interest upon its bonds and other obligations,
and the annual charge for the retirement of such bonds or obligations at
maturity;
(f) A net operating loss deduction shall be allowed which shall be the
same as the net operating  loss  deduction  allowed  under  section  one
hundred  seventy-two  of  the  internal revenue code or which would have
been allowed if the taxpayer had not made an election under subchapter s
of chapter one of the internal revenue code, except  that  (1)  any  net
operating  loss included in determining such deduction shall be adjusted
to reflect the inclusions and exclusions from entire net income pursuant
to paragraphs (a), (b), (g) and (h) hereof, (2)  such  deductions  shall
not  include any net operating loss sustained during any taxable year in
which the taxpayer was not subject to the tax imposed by this part,  (3)
such  deduction  shall  not  exceed  the  deduction for the taxable year
allowable under section one hundred seventy-two of the internal  revenue
code,  or  the  deduction  for  the  taxable  year which would have been
allowable if the taxpayer had not made an election under subchapter s of

chapter one of the internal revenue code, and (4) any net operating loss
for a taxable year beginning in nineteen  hundred  eighty-one  shall  be
computed  without  regard  to  the  deduction  allowed  with  respect to
recovery  property under section one hundred sixty-eight of the internal
revenue code; in lieu of such deduction, a taxpayer shall be allowed for
such taxable  year  with  respect  to  such  property  the  depreciation
deduction  allowable  under section one hundred sixty-seven of such code
as such section was in full force and effect on  December  thirty-first,
nineteen hundred eighty;
(g)  At the election of the taxpayer, a deduction shall be allowed for
expenditures  paid  or  incurred  during  the  taxable  year   for   the
construction,  reconstruction,  erection  or  improvement  of industrial
waste treatment facilities and air pollution control facilities.
(1) (A) The term "industrial waste treatment  facilities"  shall  mean
facilities   for  the  treatment,  neutralization  or  stabilization  of
industrial waste (as the term "industrial waste" is defined  in  section
twelve  hundred  two  of the public health law) from a point immediately
preceding the point of such treatment, neutralization  or  stabilization
to   the   point  of  disposal,  including  the  necessary  pumping  and
transmitting facilities, but excluding such facilities installed for the
primary  purpose  of  salvaging  materials  which  are  usable  in   the
manufacturing process or are marketable.
(B)  The term "air pollution control facilities" shall mean facilities
which remove, reduce, or render less noxious  air  contaminants  emitted
from  an  air  contamination  source (as the terms "air contaminant" and
"air  contamination  source"  are  defined  in  section  twelve  hundred
sixty-seven  of  the  state  public health law) from a point immediately
preceding the point of such removal, reduction or rendering to the point
of discharge of air, meeting emission standards as  established  by  the
air pollution control board, but excluding such facilities installed for
the  primary  purpose  of  salvaging  materials  which are usable in the
manufacturing process or are marketable and excluding  those  facilities
which rely for their efficacy on dilution, dispersion or assimilation of
air contaminants in the ambient air after emission.
(2) However, such deduction shall be allowed only
(A)  with  respect to tangible property which is depreciable, pursuant
to section one hundred sixty-seven of the internal revenue code,  having
a  situs  in  the city and used in the taxpayer's trade or business, the
construction, reconstruction, erection or improvement of which,  in  the
case  of industrial waste treatment facilities, is initiated on or after
January first, nineteen hundred sixty-six,  and  only  for  expenditures
paid  or  incurred prior to January first, nineteen hundred seventy-two,
or which, in the case of air pollution control facilities, is  initiated
on or after January first, nineteen hundred sixty-six, and
(B) on condition that such facilities have been certified by the state
commissioner of health or his designated representative, pursuant to the
public health law, as complying with applicable provisions of the public
health  law,  the state sanitary code and regulations, permits or orders
issued pursuant thereto, and
(C) on condition that entire net income for the taxable year  and  all
succeeding  taxable  years  be  computed without any deductions for such
expenditures or for depreciation of the same  property  other  than  the
deductions  allowed  by this paragraph (g) except to the extent that the
basis of the property may be attributable to  factors  other  than  such
expenditures,  or  in  case  a  deduction  is allowable pursuant to this
paragraph for only a part of such expenditures, on  condition  that  any
deduction  allowed for federal income tax purposes for such expenditures
or for depreciation of the same property be proportionately  reduced  in

computing  entire  net  income  for  the taxable year and all succeeding
taxable years, and
(D)  where  the  election provided for in paragraph (d) of subdivision
three of section four of this part has not been exercised in respect  to
the same property.
(3)  (A)  If  expenditures in respect to an industrial waste treatment
facility or an air pollution control  facility  have  been  deducted  as
provided herein and if within ten years from the end of the taxable year
in which such deduction was allowed such property or any part thereof is
used  for the primary purpose of salvaging materials which are usable in
the manufacturing process or are marketable, the taxpayer  shall  report
such change of use in its report for the first taxable year during which
it  occurs,  and  the  director of finance may recompute the tax for the
year or years for which such deduction was allowed and any carryback  or
carryover  year,  and  may assess any additional tax resulting from such
recomputation within the time fixed  by  paragraph  (h)  of  subdivision
three of section seventy-four.
(B) If a deduction is allowed as herein provided for expenditures paid
or  incurred  during  any  taxable  year  on  the  basis  of a temporary
certificate of compliance issued pursuant to the public health  law  and
if  the  taxpayer  fails to obtain a permanent certificate of compliance
upon completion of the facilities with respect to which  such  temporary
certificate  was  issued,  the taxpayer shall report such failure in its
report for the taxable year during which such facilities are  completed,
and  the director of finance may recompute the tax for the year or years
for which such deduction was allowed  and  any  carryback  or  carryover
year,   and   may   assess   any  additional  tax  resulting  from  such
recomputation within the time fixed  by  paragraph  (h)  of  subdivision
three of section seventy-four.
(4)  In  any  taxable year when property is sold or otherwise disposed
of, with respect to which a deduction has been allowed pursuant to  this
paragraph,  such  deduction  shall  be  disregarded in computing gain or
loss, and the gain or loss on the sale  or  other  disposition  of  such
property  shall  be  the  gain  or loss entering into the computation of
entire taxable income which the taxpayer is required to  report  to  the
United States treasury department for such taxable year;
(h) With respect to gain derived from the sale or other disposition of
any   property   acquired  prior  to  January  first,  nineteen  hundred
sixty-six, which had a federal adjusted basis on such date  (or  on  the
date  of  its sale or other disposition prior to January first, nineteen
hundred sixty-six) lower than its fair market value  on  January  first,
nineteen  hundred sixty-six or the date of its sale or other disposition
prior thereto, except property described in subsections one and four  of
section  twelve  hundred  twenty-one  of  the internal revenue code, the
difference between---
(a) the amount of the taxpayer's federal taxable income, and
(b) the amount of the taxpayer's federal taxable  income  (if  smaller
than  the  amount  described in (a)) computed as if the federal adjusted
basis of each such property (on the sale or other disposition  of  which
gain  was derived) on the date of the sale or other disposition had been
equal to either (i) its fair market value  on  January  first,  nineteen
hundred  sixty-six or the date of its sale or other disposition prior to
January first, nineteen hundred sixty-six, plus or minus all adjustments
to basis made with respect to  such  property  for  federal  income  tax
purposes  for  periods  on  and  after  January  first, nineteen hundred
sixty-six or (ii) the amount realized  from  its  sale  or  disposition,
whichever  is  lower;  provided,  however,  that  the total modification
provided by this paragraph (h)  shall  not  exceed  the  amount  of  the

taxpayer's  net  gain  from  the  sale  or other disposition of all such
property.
(i)  If  the  period covered by a report under this part is other than
the  period  covered  by  the  report  to  the  United  States  treasury
department,  entire  net  income  shall be determined by multiplying the
federal taxable income (as adjusted pursuant to the provisions  of  this
part) by the number of calendar months or major parts thereof covered by
the report under this part and dividing by the number of calendar months
or  major  parts thereof covered by the report to such department. If it
shall appear that such method of determining entire net income does  not
properly  reflect the taxpayer's income during the period covered by the
report under this part, the director of finance shall be  authorized  in
his  discretion  to determine such entire net income solely on the basis
of the taxpayer's income during the period covered by its  report  under
this part.
(j)  For taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to recovery property subject  to
the  provisions  of section two hundred eighty-F of the internal revenue
code and recovery property placed in service in this  state  in  taxable
years   beginning   after   December   thirty-first,   nineteen  hundred
eighty-four, and provided a deduction has not been excluded from  entire
net  income  pursuant  to  subparagraph  nine  of  paragraph (b) of this
subdivision, a taxpayer  shall  be  allowed  with  respect  to  recovery
property  the depreciation deduction allowable under section one hundred
sixty-seven of the internal revenue code  as  such  section  would  have
applied to property placed in service on December thirty-first, nineteen
hundred eighty.
(l)  for taxable years ending after September 10, 2001, in the case of
qualified property described in paragraph 2 of subsection k  of  section
168  of  the internal revenue code, other than qualified resurgence zone
property described in paragraph (n) of this subdivision, and other  than
qualified  New  York  Liberty  Zone property described in paragraph 2 of
subsection b of section 1400L of  the  internal  revenue  code  (without
regard  to clause (i) of subparagraph (C) of such paragraph), a taxpayer
shall  be  allowed  with  respect  to  such  property  the  depreciation
deduction  allowable  under  section 167 of the internal revenue code as
such section would have applied to such property had it been acquired by
the taxpayer on September 10, 2001.
(m) for taxable years  ending  after  September  10,  2001,  upon  the
disposition  of  property  to  which  paragraph  (l) of this subdivision
applies, the amount of any gain or loss includible in entire net  income
shall  be  adjusted to reflect the inclusions and exclusions from entire
net income pursuant to subparagraph 11 of paragraph (a) and subparagraph
13 of paragraph (b) of this subdivision attributable to such property.
(n) for purposes of  paragraphs  (l)  and  (m)  of  this  subdivision,
qualified   resurgence  zone  property  shall  mean  qualified  property
described in paragraph 2 of subsection k of section 168 of the  internal
revenue  code substantially all of the use of which is in the resurgence
zone, as defined below, and is in the  active  conduct  of  a  trade  or
business  by the taxpayer in such zone, and the original use of which in
the resurgence zone commences with  the  taxpayer  after  September  10,
2001. The resurgence zone shall mean the area of New York county bounded
on the south by a line running from the intersection of the Hudson River
with  the  Holland Tunnel, and running thence east to Canal Street, then
running along the centerline of Canal Street to the intersection of  the
Bowery  and  Canal  Street,  running thence in a southeasterly direction
diagonally across Manhattan Bridge Plaza, to the  Manhattan  Bridge  and
thence  along  the centerline of the Manhattan Bridge to the point where

the centerline of the Manhattan Bridge would intersect with the easterly
bank of the East River, and bounded on the north by a line running  from
the intersection of the Hudson River with the Holland Tunnel and running
thence  north  along  West Avenue to the intersection of Clarkson Street
then running east  along  the  centerline  of  Clarkson  Street  to  the
intersection   of  Washington  Avenue,  then  running  south  along  the
centerline of Washington Avenue to  the  intersection  of  West  Houston
Street,  then  east along the centerline of West Houston Street, then at
the intersection of the Avenue of the Americas continuing east along the
centerline of East Houston Street to  the  easterly  bank  of  the  East
River.
9.  (a)  The  term  "calendar  year" means a period of twelve calendar
months (or any shorter period beginning on the date the taxpayer becomes
subject to the tax imposed by this part) ending on the thirty-first  day
of  December, provided the taxpayer keeps its books on the basis of such
period or on the basis of any period ending on any day  other  than  the
last  day  of  a  calendar month, or provided the taxpayer does not keep
books, and includes, in case the taxpayer  changes  the  period  on  the
basis of which it keeps its books from a fiscal year to a calendar year,
the  period  from  the  close  of  its  last  old  fiscal year up to and
including the following December thirty-first.
(b) The term "fiscal year" means a period of  twelve  calendar  months
(or  any  shorter  period  beginning  on  the  date the taxpayer becomes
subject to the tax imposed by this part) ending on the last day  of  any
month  other than December, provided the taxpayer keeps its books on the
basis of such period, and includes, in case  the  taxpayer  changes  the
period  on the basis of which it keeps its books from a calendar year to
a fiscal year or from one fiscal year to another fiscal year, the period
from the close of its last old calendar or fiscal year up  to  the  date
designated as the close of its new fiscal year.
10.  The  term  "tangible  personal property" means corporeal personal
property,  such  as  machinery,  tools,  implements,  goods,  wares  and
merchandise,  and  does  not  mean  money,  deposits in banks, shares of
stock, bonds, notes, credits or evidences of an interest in property and
evidences of debt.
§ 3. Imposition of tax; exemptions.   1. For the  privilege  of  doing
business in the city in a corporate or organized capacity for all or any
part  of each of its fiscal or calendar years, every domestic or foreign
corporation, except corporations specified in subdivision four  of  this
section,  shall  annually  pay  a  tax, upon the basis of its entire net
income, or upon such other basis as may  be  applicable  as  hereinafter
provided,  for such fiscal or calendar year or part thereof, on a report
which shall be filed, except as hereinafter provided, on or  before  the
fifteenth  day of March next succeeding the close of each such year, or,
in the case of a taxpayer which reports on the basis of a  fiscal  year,
within  two and one-half months after the close of such fiscal year, and
shall be paid as hereinafter provided.
2. The holding of real property in the city  shall  be  deemed  to  be
doing  business  in  the  city  within  the  meaning  of  this  part.  A
corporation shall not be deemed to be doing business in  the  city,  for
the  purposes  of  this  part,  by reason of (a) the maintenance of cash
balances with banks or trust companies in the city, or (b) the ownership
of shares of stock or securities kept in the city, if  kept  in  a  safe
deposit  box, safe, vault or other receptacle rented for the purpose, or
if pledged as collateral security, or if  deposited  with  one  or  more
banks  or  trust  companies,  or brokers who are members of a recognized
security exchange, in safekeeping or custody accounts, or (c) the taking
of any action by any such bank or trust  company  or  broker,  which  is

incidental  to the rendering of safekeeping or custodian service to such
corporation, or (d) any combination of the foregoing activities.
3. Any receiver, referee, trustee, assignee or other fiduciary, or any
officer  or  agent  appointed by any court, who conducts the business of
any corporation, shall be subject to the tax imposed by this part in the
same manner and to the same extent as if the business were conducted  by
the  agents  or  officers  of  such corporation. A dissolved corporation
which continues to conduct business shall also be  subject  to  the  tax
imposed by this part.
4.  Corporations  subject  to  tax under part three, part four or part
five, or under a local law of the city imposing a tax on utilities,  and
any  trust  company organized under a law of this state all of the stock
of which is owned by not less than twenty savings banks organized  under
a  law  of  this  state,  and  housing companies organized and operating
pursuant to the provisions of article two, article four or article  five
of  the  private  housing finance law, shall not be subject to tax under
this part; provided, however,  that  corporations,  other  than  utility
corporations  subject  to  the  supervision  of  the state department of
public service, which are subject to tax under a local law of  the  city
imposing  a  tax  on vendors of utility services shall be subject to tax
under this part on that percentage of their entire net income  allocable
to  the  city  under  section four which their receipts other than those
taxable under such local law taxing vendors of utility  services  is  of
their total receipts.
5.  The  tax  imposed  by  subdivision  one  of this section, with the
modifications provided by subdivision six of this  section,  is  imposed
for each calendar or fiscal year beginning with calendar or fiscal years
ending in or with the calendar year nineteen hundred sixty-six.
6.  (a)  The  tax  for  any  taxable  year  ending  prior  to December
thirty-first, nineteen hundred sixty-six shall be an amount equal to the
tax imposed by subdivision one of this section for  such  taxable  year,
multiplied  by  the number of months (or major portions thereof) in such
taxable year which occur after December thirty-first,  nineteen  hundred
sixty-five  and  divided  by  the  number  of  months (or major portions
thereof) in such taxable year.
(b) In lieu  of  the  method  of  computation  of  tax  prescribed  in
paragraph  (a)  of this subdivision, if the taxpayer maintained adequate
records for the portion of any taxable year  ending  prior  to  December
thirty-first, nineteen hundred sixty-six, which portion falls within the
calendar  year  nineteen  hundred sixty-six, it may elect to compute the
tax for such taxable year by determining entire net income on the  basis
of  the  entire  taxable income which it would have reported for federal
income tax purposes had it filed a  federal  income  tax  return  for  a
taxable  year  beginning  January  first, nineteen hundred sixty-six and
ending with the close of its actual taxable year and such  taxable  year
beginning  January first, nineteen hundred sixty-six, shall be deemed to
be the period covered by its report, except that in computing  such  tax
any  portion  of  a  capital  loss  which  results  from  a capital loss
carryover and any net operating loss deduction, as modified pursuant  to
paragraph  (f)  of  subdivision eight of section two shall be reduced by
the same part of such portion of  such  capital  loss  or  of  such  net
operating  loss deduction (as the case may be) as the number of months (
or major portions thereof) in the taxable year occurring before  January
first,  nineteen  hundred sixty-six is of the number of months (or major
portions thereof) in such taxable year.
§ 4. Computation of tax. * 1. The tax imposed by  subdivision  one  of
section three of this part shall be, in the case of each taxpayer: (a) a
tax  (1) for taxable years beginning on or after January first, nineteen

hundred  seventy-eight  but  before  January  first,  nineteen   hundred
eighty-seven,  computed  at the rate of nine per centum, and for taxable
years  beginning  on  or   after   January   first,   nineteen   hundred
eighty-seven,  computed  at  the  rate  of  eight  and  eighty-five  one
hundredths per centum on its entire net income, or the  portion  thereof
allocated  within  the  city  as  hereinafter  provided,  subject to any
modification required by paragraph (d)  of  subdivision  three  of  this
section,  or  (2)  computed at one and one-half mills for each dollar of
its total business  and  investment  capital,  or  the  portion  thereof
allocated  within  the  city as hereinafter provided, except that in the
case of a cooperative housing corporation as  defined  in  the  internal
revenue  code,  the applicable rate shall be four-tenths of one mill, or
(3) for taxable years beginning on  or  after  January  first,  nineteen
hundred   seventy-eight  but  before  January  first,  nineteen  hundred
eighty-seven, computed at the rate of nine per centum, and  for  taxable
years   beginning   on   or   after   January  first,  nineteen  hundred
eighty-seven,  computed  at  the  rate  of  eight  and  eighty-five  one
hundredths  per centum on thirty per centum of the taxpayer's entire net
income plus salaries and  other  compensation  paid  to  the  taxpayer's
elected  or appointed officers and to every stockholder owning in excess
of five per centum of its issued capital stock  minus  fifteen  thousand
dollars  (except  as  hereinafter  provided)  and  any  net loss for the
reported year, or on the portion of such sum allocated within  the  city
as hereinafter provided for the allocation of entire net income, subject
to  any  modification  required by paragraph (d) of subdivision three of
this section, or (4) one hundred twenty-five dollars, whichever  is  the
greatest,  plus  (b)  a  tax computed at the rate of three-quarters of a
mill for each dollar of the portion of its subsidiary capital  allocated
within the city as hereinafter provided. In the case of a taxpayer which
is not subject to tax for an entire year, or which elects to compute its
tax  pursuant  to paragraph (b) of subdivision six of section three, the
exemption allowed in clause three of paragraph  (a)  shall  be  prorated
according to the period such taxpayer was subject to tax or, in the case
of  such  an  election,  the  period  for which its entire net income is
determined pursuant to such paragraph (b) of subdivision six of  section
three.
* NB Effective until December 31, 2020
* 1.  The tax imposed by subdivision one of section three of this part
shall be, in the case of each taxpayer: (a) a tax (1)  computed  at  the
rate  of  five and one-half per centum, or as an alternative for taxable
years beginning on or after January first, nineteen hundred seventy-one,
at the rate of six and  seven-tenths  per  centum,  on  its  entire  net
income,  or the portion thereof allocated within the city as hereinafter
provided, subject to any  modification  required  by  paragraph  (d)  of
subdivision  three of this section, or (2) computed at one mill for each
dollar of its total business and  investment  capital,  or  the  portion
thereof  allocated  within the city as hereinafter provided, except that
in the case of a cooperative  housing  corporation  as  defined  in  the
internal  revenue  code, the applicable rate shall be one-quarter of one
mill, or (3) computed at the rate of five and one-half per centum, or as
an alternative for taxable years beginning on or  after  January  first,
nineteen  hundred  seventy-one,  at the rate of six and seven-tenths per
centum, on thirty per centum of the taxpayer's entire  net  income  plus
salaries  and  other  compensation  paid  to  the  taxpayer's elected or
appointed officers and to every stockholder owning in excess of five per
centum of its  issued  capital  stock  minus  fifteen  thousand  dollars
(except as hereinafter provided) and any net loss for the reported year,
or  on  the portion of such sum allocated within the city as hereinafter

provided for the  allocation  of  entire  net  income,  subject  to  any
modification  required  by  paragraph  (d)  of subdivision three of this
section, or (4) twenty-five dollars, whichever is the greatest, plus (b)
a  tax  computed  at  the  rate  of one-half mill for each dollar of the
portion  of  its  subsidiary  capital  allocated  within  the  city   as
hereinafter  provided. In the case of a taxpayer which is not subject to
tax for an entire year, or which elects to compute its tax  pursuant  to
paragraph (b) of subdivision six of section three, the exemption allowed
in  clause  three  of  paragraph  (a) shall be prorated according to the
period such taxpayer was subject to tax or,  in  the  case  of  such  an
election,  the  period  for  which  its  entire net income is determined
pursuant to such paragraph (b) of subdivision six of section three.
* NB Effective December 31, 2020
2. The amount of subsidiary capital, investment capital  and  business
capital shall each be determined by taking the average fair market value
of  the  gross  assets  included  therein (less, in the case of business
capital, average liabilities deductible therefrom which are  payable  by
their  terms  on demand or within one year from the date incurred, other
than loans or advances outstanding for more than a year as of  any  date
during  the  year  covered by the report), and, if the period covered by
the report is  other  than  a  period  of  twelve  calendar  months,  by
multiplying  such  value by the number of calendar months or major parts
thereof included in such period, and dividing the product thus  obtained
by twelve.
3.  The portion of the entire net income of a taxpayer to be allocated
within the city shall be determined as follows:
(a) multiply its business income by a business  allocation  percentage
to be determined by
(1)  ascertaining  the  percentage  which  the  average  value  of the
taxpayer's real and tangible personal property within  the  city  during
the  period  covered by its report bears to the average value of all the
taxpayer's real and tangible personal property wherever situated  during
such period;
(2)  ascertaining  the  percentage which the receipts of the taxpayer,
computed on the cash  or  accrual  basis  according  to  the  method  of
accounting  used  in  the  computation of its entire net income, arising
during such period from
(A) sales of its tangible personal property located within the city at
the time of the  receipt  of  or  appropriation  to  the  orders,  where
shipments are made to points within the city,
(B) sales of its tangible personal property not located at the time of
the  receipt  of  or  appropriation  to  the  orders at any permanent or
continuous place of business maintained by the taxpayer without the city
where the orders were received or accepted within  the  city  and  where
shipments are made to points within the city,
(C) sales of its tangible personal property located within the city at
the time of the receipt of or appropriation to the orders where shipment
is made to points outside of the city and sales of its tangible personal
property (except sales described in clause (B)) located without the city
at  the  time  of  the  receipt  of or appropriation to the orders where
shipment is made to points within the city, but only to  the  extent  of
fifty  per  centum  of  the  receipts from the sales referred to in this
clause,
(D) sales of its tangible personal property not located at the time of
the receipt of or appropriation  to  the  orders  at  any  permanent  or
continuous  place  of  business  maintained  by the taxpayer without the
city, where the orders were received or accepted  within  the  city  and
where  shipment is made between points outside the city, but only to the

extent of fifty per centum of the receipts from the sales referred to in
this clause. For purposes of this clause and clause (B) an  order  shall
be  deemed  received or accepted within the city if it has been received
or  accepted  by  an  employee,  agent, agency or independent contractor
chiefly situated at, connected with, by contract or otherwise,  or  sent
out  from  a  permanent  or continuous place of business of the taxpayer
within the city,
(E) services performed within the city,
(F) rentals from property situated  and  royalties  from  the  use  of
patents or copyrights, within the city, and
(G) all other business receipts earned within the city,
bear to the total amount of the taxpayer's receipts, similarly computed,
arising  during  such  period  from  all  sales of its tangible personal
property,  services,  rentals,  royalties   and   all   other   business
transactions, whether within or without the city;
(3) ascertaining the percentage of the total wages, salaries and other
personal service compensation, similarly computed, during such period of
employees  within  the  city,  except general executive officers, to the
total wages, salaries and other personal service compensation, similarly
computed, during such period of all the taxpayer's employees within  and
without the city, except general executive officers, and
(4)  adding  together  the  percentages so determined and dividing the
result by the number of percentages;  provided,  however,  that  if  the
taxpayer  does  not  have  a  regular place of business outside the city
other than a statutory office, the business allocation percentage  shall
be one hundred per centum; and
(b)  multiply  its  investment  income  by  an  investment  allocation
percentage to be determined by
(1) multiplying the amount of its investment capital invested in  each
stock,  bond  or  other  security  (other  than governmental securities)
during the period covered by its report by the percentage,  if  any,  of
the  entire  capital  or  the  issued capital stock, or the gross direct
premiums, or the net income, as the  case  may  be,  of  the  issuer  or
obligor  thereof  required to be allocated within the city on the report
or reports, if any, required of any such issuer or  obligor  under  part
II,  part  III,  part  IV,  or  part  V or under a local law of the city
imposing a tax on utilities for the preceding year,  provided,  however,
that  for taxable years ending in or with calendar year nineteen hundred
sixty-six, such percentage shall be presumed to be that  percentage,  if
any,  of  the  entire  capital or the issued capital stock, or the gross
direct premiums, or the net income, as the case may be, of the issuer or
obligor thereof required to be allocated within the state on the  report
or reports, if any, required of any such issuer or obligor under the tax
law  or  the  insurance  law for the preceding year, unless the taxpayer
establishes the actual percentage which such  issuer  or  obligor  would
have  been  required  to allocate within the city had part II, part III,
part IV, or part V been in effect for such year, or which such issuer or
obligor did allocate within the city under  a  local  law  of  the  city
imposing a tax on utilities, but without regard to any minimum,
(2) adding together the sum so obtained, and
(3)  dividing  the  result  so obtained by the total of its investment
capital  invested  during  such  period  in  stocks,  bonds  and   other
securities  (other  than  obligations  of  the  United  States  and  its
instrumentalities  and  obligations  of  the  state  of  New  York,  its
political  subdivisions  and  its instrumentalities); provided, however,
that in case any investment capital is invested in any  stock,  bond  or
other  security  during  only  a  portion  of  the period covered by the
report, only such portion of such capital shall be taken  into  account;

and  provided  further,  that  if  a  taxpayer's  investment  allocation
percentage is zero, interest received on bank accounts,  on  obligations
of the United States and its instrumentalities and on obligations of the
state  of New York, its political subdivisions and its instrumentalities
shall be multiplied by its business allocation percentage; and
(c) add the products so obtained.
(d) At the election of the taxpayer there shall be deducted  from  the
portion  of  its  entire  net income allocated within the city either or
both of the items set  forth  in  subparagraphs  one  and  two  of  this
paragraph, except that only one of such deductions shall be allowed with
respect to any one items of property.
(1)  Depreciation  with  respect  to any property such as described in
subparagraph  three  of  this  paragraph,  not   exceeding   twice   the
depreciation  allowed  with  respect  to  the  same property for federal
income tax purposes. Such deduction shall be allowed only upon condition
that entire net  income  be  computed  without  any  deduction  for  the
depreciation  of  the  same  property,  and  the total of all deductions
allowed pursuant to the preceding sentence in any taxable year or  years
with respect to any property shall not exceed its cost or other basis.
(2)  Expenditures  paid  or  incurred  during the taxable year for the
construction, reconstruction, erection or acquisition  of  any  property
such  as described in subparagraph three of this paragraph which is used
or  to  be  used  for  purposes  of  research  and  development  in  the
experimental  or  laboratory sense. Such purposes shall not be deemed to
include the ordinary testing or inspection of materials or products  for
quality   control,  efficiency  surveys,  management  studies,  consumer
surveys,  advertising,  promotions  or  research  in   connection   with
literary,  historical  or  similar  projects.  Such  deduction  shall be
allowed only on condition that entire net income for  the  taxable  year
and  all  succeeding  taxable years be computed without the deduction of
any such expenditures and without any deduction for depreciation of  the
same  property,  except to the extent that its basis may be attributable
to factors other than such expenditures,  or  in  case  a  deduction  is
allowable  pursuant  to  this  subparagraph  for  only  a  part  of such
expenditures, on condition that any deduction allowed for federal income
tax  purposes  on  account  of  such  expenditures  or  on  account   of
depreciation   of  the  same  property  be  proportionately  reduced  in
computing entire net income for the  taxable  year  and  all  succeeding
taxable  years. With respect to property which is used or to be used for
research and development only in part, or during only part of its useful
life, a proportionate part of such expenditures shall be deductible.  If
all or part of such expenditures with respect to any property shall have
been deducted as provided herein, and such property is used for purposes
other  than research and development to a greater extent than originally
reported, the taxpayer shall report such use in its report for the first
taxable year during which it occurs, and the  director  of  finance  may
recompute  the  tax  for  the year or years for which such deduction was
allowed,  and  may  assess  any  additional  tax  resulting  from   such
recomputation  regardless  of  the time limitations set forth in section
seventy-four of this title.
(3) Such deductions shall be allowed only  with  respect  to  tangible
property   which   is   depreciable  pursuant  to  section  one  hundred
sixty-seven of the internal revenue code, having a situs in the city and
used  in  the  taxpayer's  trade  or  business,  (A)  the  construction,
reconstruction   or  erection  of  which  is  completed  after  December
thirty-first, nineteen hundred sixty-five, and then only with respect to
that portion of the basis thereof or the expenditures  relating  thereto
which  is  properly attributable to such construction, reconstruction or

erection after December thirty-first, nineteen  hundred  sixty-five,  or
(B) acquired after December thirty-first, nineteen hundred sixty-five by
purchase  as  defined  in  section  one  hundred seventy-nine (d) of the
internal  revenue  code,  if the original use of such property commenced
with the taxpayer, commenced in the city and commenced after such date.
(4) If the deductions allowable for any taxable year, pursuant to this
subdivision, exceed the portion of  the  taxpayer's  entire  net  income
allocated  to  the city for such year, the excess may be carried over to
the following taxable year or years and may be deducted from the portion
of the taxpayer's entire net income allocated to the city for such  year
or years.
(5)  In  any  taxable year when property is sold or otherwise disposed
of, with respect to which a  deduction  has  been  allowed  pursuant  to
subparagraph  one  or  two  of  this paragraph, the gain or loss thereon
entering into  the  computation  of  federal  taxable  income  shall  be
disregarded  in computing entire net income, and there shall be added to
or subtracted from the portion of entire net income allocated within the
city the gain or loss upon such sale or other disposition. In  computing
such gain or loss the basis of the property sold or disposed of shall be
adjusted  to reflect the deduction allowed with respect to such property
pursuant to  subparagraph  one  or  two  of  this  paragraph.  Provided,
however,  that  no  loss  shall  be  recognized for the purposes of this
subparagraph with respect to a sale or other disposition of property  to
a  person  whose  acquisition  thereof  is  not a purchase as defined in
section one hundred seventy-nine (d) of the internal revenue code.
4. The portion of the business capital of a taxpayer to  be  allocated
within the city shall be determined by multiplying the amount thereof by
the business allocation percentage determined as hereinabove provided.
5. The portion of the investment capital of a taxpayer to be allocated
within the city shall be determined by multiplying the amount thereof by
the investment allocation percentage determined as hereinabove provided.
6.  Any  taxpayer  not  taxed upon the basis of a combined report, the
investment income of which is less than twenty-five per  centum  of  its
entire  net  income  and  the  investment  capital of which is less than
twenty-five per centum of its total business and investment capital, may
at its election apply its business allocation percentage to  its  entire
net  income  and its total business and investment capital. Any taxpayer
not taxed upon the basis of a combined report, the investment income  of
which  is  more than eighty-five per centum of its entire net income and
the investment capital of which is more than eighty-five per  centum  of
its total business and investment capital, may at its election apply its
investment  allocation percentage to its entire net income and its total
business and investment capital. Any taxpayer not taxed upon  the  basis
of  a combined report, the subsidiary capital of which (computed without
regard to this sentence) is more than  eighty-five  per  centum  of  its
total  capital, exclusive of cash on hand and on deposit, obligations of
the United States and its instrumentalities and obligations of the state
of New York, its political subdivisions and its  instrumentalities,  may
at  its  election  treat as subsidiary capital a proportion of such cash
and obligations not in  excess  of  the  proportion  of  its  subsidiary
capital (so computed) to its total capital.
7. The portion of the subsidiary capital of a taxpayer to be allocated
within the city shall be determined by (a) multiplying the amount of its
subsidiary capital invested in each subsidiary during the period covered
by  its  report  (or, in the case of any such capital so invested during
only a portion of such period, such portion  of  such  capital)  by  the
percentage,  if  any, of the entire capital or the issued capital stock,
or the gross direct premiums, or the net income, as the case may be,  of

such  subsidiary  required to be allocated within the city on the report
or reports, if any, required of such subsidiary under this title for the
preceding year, or which would have been required for such year had this
title been in effect, but without regard to any minimum, (b) multiplying
the  proportion  of  cash  and  obligations of the United States and its
instrumentalities  and  obligations  of  the  state  of  New  York,  its
political  subdivisions  and its instrumentalities treated as subsidiary
capital, by the weighted average of the percentages used in  clause  (a)
hereof, and (c) adding together the sums so obtained.
8.  If it shall appear to the director of finance that any business or
investment allocation percentage determined as hereinabove provided does
not properly reflect the activity, business,  income  or  capital  of  a
taxpayer within the city, the director of finance shall be authorized in
his  discretion,  in  the  case  of a business allocation percentage, to
adjust it by (a) excluding one or  more  of  the  factors  therein,  (b)
including  one  or  more  other  factors,  such  as expenses, purchases,
contract values (minus subcontract values), (c) excluding  one  or  more
assets  in  computing  such  allocation  percentage, provided the income
therefrom is also excluded in determining entire net income, or (d)  any
other similar or different method calculated to effect a fair and proper
allocation  of  the  income  and  capital reasonably attributable to the
city, and in the case of an investment allocation percentage  to  adjust
it by excluding one or more assets in computing such percentage provided
the  income therefrom is also excluded in determining entire net income.
The director of finance from time to time shall publish all  rulings  of
general   public  interest  with  respect  to  any  application  of  the
provisions of this subdivision.
9. If it shall appear to the director of  finance  that  any  business
allocation  percentage  determined  as  hereinabove  provided  does  not
properly reflect the activity, business, income or capital of a taxpayer
within the city, the director of finance  shall  be  authorized  in  his
discretion  to  adjust  it  by  (a) excluding one or more of the factors
therein, (b) including one or more  other  factors,  such  as  expenses,
purchases, contract values (minus subcontract values), (c) excluding one
or  more  assets  in  computing such allocation percentage, provided the
income therefrom is also excluded in determining entire net  income,  or
(d)  any  other  similar or different method calculated to effect a fair
and proper allocation of the income and capital reasonably  attributable
to  the city, and in the case of an investment allocation percentage, to
adjust it by excluding one or more assets in computing  such  percentage
provided the income therefrom is also excluded in determining entire net
income.  The  director  of  finance  from time to time shall publish all
rulings of general public interest with respect to  any  application  of
the provisions of this subdivision.
10.  For  purposes  of this section the taxpayer's real property shall
include not only such property owned  by  the  taxpayer  but  also  such
property rented to it.
§  4-a. Credit relating to stock transfer tax. (1) A taxpayer shall be
allowed a credit, to be credited or refunded in the  manner  hereinafter
provided  in  this  section,  against  the tax imposed by this part. The
amount of such credit shall be fifty per cent of  the  tax  incurred  in
market making transactions under the provisions of article twelve of the
tax  law on such transactions subject to such tax occurring on and after
August first, nineteen hundred seventy-six and  paid  by  such  taxpayer
(except  when  such  tax  shall  have  been paid pursuant to section two
hundred seventy-nine-a of such tax law).
(2) For purposes of this subsection:
(a) the term "taxpayer" shall mean  any  corporation  subject  to  tax
under  this  part  registered  with  the  United  States  securities and
exchange commission in accordance with subsection (b) of section fifteen
of the securities exchange  act  of  nineteen  hundred  thirty-four,  as
amended,  and acting as a dealer in a transaction described in paragraph
(b) of this subdivision, and
(b) the term "market making transaction" shall  mean  any  transaction
involving  a  sale  (including  a  short  sale) by a dealer of shares or
certificates subject to the tax imposed by article  twelve  of  the  tax
law, provided such shares or certificates are sold:
(i) as stock in trade or inventory or as property held for sale in the
ordinary  course of such dealer's trade or business (including transfers
which are part of an underwriting),
(ii) in (a) a bona fide arbitrage transaction; (b) a bona  fide  hedge
transaction  involving  a  long or short position in any equity security
and a long or short position in  a  security  entitling  the  holder  to
acquire   or  sell  such  equity  security;  or  (c)  a  risk  arbitrage
transaction in connection with  a  merger,  acquisition,  tender  offer,
recapitalization, reorganization, or similar transaction, or
(iii) to offset a transaction made in error.
Provided,  however,  that,  except as to subparagraph (ii) (c) of this
paragraph, the term "market making transaction" shall  not  include  any
sale  of shares or certificates identified in such dealer's records as a
security held for  investment  within  the  meaning  of  section  twelve
hundred thirty-six of the internal revenue code.
(3)  The  credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited  or
refunded  in  accordance with the provisions of section seventy-seven of
this title, except as otherwise provided in subdivision three of section
six and subdivision eleven of section  eight  of  this  part;  provided,
however, that the provisions of this chapter notwithstanding, the amount
to  be  refunded pursuant to this section shall not be paid prior to the
first day of the eighth month following the close of the  taxable  year,
and  the provisions of subdivision three of section seventy-nine of this
title notwithstanding,  interest  shall  be  allowed  and  paid  on  the
overpayment  of  the credit under this section from the first day of the
eleventh month following the close of the taxable year, or three  months
after  a claim for the credit or refund provided for in this section has
been filed, whichever is later.
(4) Provided, however, that the credit provided under this  subsection
shall  be allowed only to the extent that the amount of credit allowable
with respect to market making transactions under the provisions of  this
subsection   (determined  without  regard  to  the  provisions  of  this
subdivision) exceeds fifty percent of all rebates  (provided  for  under
the  provisions of section two hundred eighty-a of article twelve of the
tax law) allowed for such taxes  incurred  in  the  same  market  making
transactions  with  respect  to  which  the credit is allowed. No credit
shall be allowed under this subsection with respect to any tax  incurred
in  market  making  transactions  occurring  on  or after October first,
nineteen hundred eighty-one.
§ 4-b. Credit relating to certain sales and  compensating  use  taxes.
(1) In addition to the credit allowed by section four-a of such chapter,
a  taxpayer  shall  be  allowed a credit against the tax imposed by this
part to be credited or refunded in the manner  hereinafter  provided  in
this  section.  The amount of such credit shall be the excess of (A) the
amount of sales and compensating use taxes  imposed  by  section  eleven
hundred  seven  of  the tax law during the taxpayer's taxable year which
became legally due on or after and was paid  on  or  after  July  first,

nineteen  hundred  seventy-seven,  less  any  credits or refunds of such
taxes, with respect to the purchase or use by the taxpayer of  machinery
or  equipment  for  use or consumption directly and predominantly in the
production    of   tangible   personal   property,   gas,   electricity,
refrigeration  or  steam  for  sale,   by   manufacturing,   processing,
generating,  assembling,  refining,  mining  or extracting, or telephone
central office equipment or station apparatus  or  comparable  telegraph
equipment for use directly and predominantly in receiving at destination
or  initiating  and  switching telephone or telegraph communication, but
not including parts with a useful life of one year or less or  tools  or
supplies  used in connection with such machinery, equipment or apparatus
over (B) the amount of any credit for such sales  and  compensating  use
taxes allowed or allowable against the taxes imposed by any local law of
the  city  imposing  a tax on utilities and vendors of utility services,
for any periods embraced within the taxable year of the  taxpayer  under
this  part.  (2)  The  credit allowed under this section for any taxable
year shall be deemed to be an overpayment of tax by the taxpayer  to  be
credited   or   refunded,  without  interest,  in  accordance  with  the
provisions of  section  seventy-seven  of  this  title.  (3)  Where  the
taxpayer  receives  a  refund or credit of any tax imposed under section
eleven hundred seven of the tax law for which the taxpayer had claimed a
credit under the provisions of section four-b of such chapter in a prior
taxable year, the amount of such tax refund or credit shall be added  to
the  tax imposed by section three of such chapter, and such amount shall
be subtracted in computing entire net income for the taxable year.
§ 4-c. Credit relating to certain expenses involved  in  the  cost  of
relocating  industrial  and  commercial employment opportunities. (1) In
addition to any other credit allowed by this section, a  taxpayer  shall
be  allowed a credit against the tax imposed by this part to be credited
or refunded, without interest, in the  manner  hereinafter  provided  in
this section. The amount of such credit shall be:
(A)  A maximum of three hundred dollars for each commercial employment
opportunity and a maximum of five hundred dollars  for  each  industrial
employment  opportunity  relocated  to the city from an area outside the
state. Such credit shall be allowed to  a  taxpayer  which  relocates  a
minimum  of  ten employment opportunities.   The credit shall be allowed
against  employment  opportunity  relocation  costs  incurred   by   the
taxpayer.  Such  credit  shall  be  allowed  only to the extent that the
taxpayer  has  not  claimed  a  deduction   for   allowable   employment
opportunity  relocation costs. The credit allowed hereunder may be taken
by the taxpayer in whole or in part in the year in which the  employment
opportunity  is  relocated  by  such taxpayer or either of the two years
succeeding such event.
The  director  of  finance  is  empowered  to  promulgate  rules   and
regulations  and  to  prescribe  the form of application to be used by a
taxpayer seeking the credit provided hereunder.
(B) Definitions: When used in this section,  "Employment  Opportunity"
means  the creation of a full time position of gainful employment for an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial  Employee"  means  one  engaged  in  the  manufacture   or
assembling of tangible goods or the processing of raw materials.
"Commercial  Employee"  means  one  engaged  in the buying, selling or
otherwise providing of goods or services other than on a retail basis.
"Retail" means the selling or otherwise  disposing  or  furnishing  of
tangible goods or services directly to the ultimate user or consumer.
"Full  Time  Position" means the hiring of an industrial or commercial
employee in a position of gainful employment where the number  of  hours

worked  by  such employee is not less than thirty hours during any given
work week.
"Employment  Opportunity Relocation Costs" means the costs incurred by
the taxpayer in moving furniture, files,  papers  and  office  equipment
into  the  city from a location outside the state; the costs incurred by
the taxpayer in the moving and installation of machinery  and  equipment
into  the  city  from  a  location  outside  the  state;  the  costs  of
installation of telephones and other communications  equipment  required
as  a  result  of the relocation to the city from a location outside the
state; the cost  incurred  in  the  purchase  of  office  furniture  and
fixtures  required  as  a  result  of  the relocation to the city from a
location outside the state; and the cost of renovation of  the  premises
to  be  occupied  as  a result of the relocation provided, however, that
such renovation costs shall be allowable only to the extent that they do
not exceed seventy-five cents per square foot of the total area utilized
by the taxpayer in the occupied premises.
(2) The credit allowed under this section for any taxable  year  shall
be  deemed to be an overpayment of tax by the taxpayer to be credited or
refunded, without interest, in accordance with the provisions of section
seventy-seven of this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had  claimed  a  credit  under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added  to
the tax imposed by section three, and such amount shall be subtracted in
computing entire net income for the taxable year.
§  (4-d) Credit relating to the annual increase in certain payments to
a landlord by a taxpayer relocating industrial and commercial employment
opportunities.  (1) In addition to any  other  credit  allowed  by  this
section, a taxpayer shall be allowed a credit against the tax imposed by
this  part  to  be credited or refunded, without interest, in the manner
hereinafter provided in this section.
(A) Where a taxpayer shall have relocated to the city from a  location
outside  the  state, and by such relocation shall have created a minimum
of one hundred industrial or commercial  employment  opportunities;  and
where  such  taxpayer  shall  have  entered into a written lease for the
relocation premises, the terms of  which  lease  provide  for  increased
additional  payments to the landlord which are based solely and directly
upon any increase or addition in real estate taxes imposed on the leased
premises, the taxpayer upon approval and certification by the industrial
and commercial incentive board as hereinafter provided shall be entitled
to a credit against the tax imposed by this section. The amount of  such
credit  shall  be:  An  amount  equal  to  the annual increased payments
actually made by the taxpayer to  the  landlord  which  are  solely  and
directly  attributable to an increase or addition to the real estate tax
imposed upon the leased premises.  Such credit shall be allowed only  to
the  extent that the taxpayer has not otherwise claimed said amount as a
deduction against the tax imposed by this section.
The  industrial  and  commercial  incentive  board  in  approving  and
certifying  to  the  qualifications  of  the taxpayer to receive the tax
credit provided for herein shall first determine that the applicant  has
met  the requirements of this section, and further, that the granting of
the tax credit  to  the  applicant  is  in  the  "public  interest."  In
determining  that  the  granting  of  the  tax  credit  is in the public
interest, the board shall make affirmative findings that:  the  granting
of  the tax credit to the applicant will not effect an undue hardship on
similar taxpayers already located within the city; the existence of this
tax incentive has been instrumental in bringing about the relocation  of

the  applicant  to  the  city;  and  the granting of the tax credit will
foster the economic recovery and economic development of the city.
The  tax  credit,  if  approved  and  certified  by the industrial and
commercial incentive board, must be utilized annually  by  the  taxpayer
for  the  length  of the term of the lease or for a period not to exceed
ten years from the date of relocation, whichever period is shorter.
(B) Definitions: When used in this section,  "Employment  opportunity"
means  the creation of a full time position of gainful employment for an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial  employee"  means  one  engaged  in  the  manufacture   or
assembling of tangible goods or the processing of raw materials.
"Commercial  employee"  means  one  engaged  in the buying, selling or
otherwise providing of goods or services other than on a retail basis.
"Retail" means the selling or otherwise  disposing  or  furnishing  of
tangible goods or services directly to the utlimate user or consumer.
"Full  time  position" means the hiring of an industrial or commercial
employee in a position of gainful employment where the number  of  hours
worked  by  such employee is not less than thirty hours during any given
work week.
"Industrial and commercial incentive board" means  the  board  created
pursuant to section four hundred eighty-nine-nn of the real property tax
law.
(2)  The  credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited  or
refunded  in  accordance with the provisions of section seventy-seven of
this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had  claimed  a  credit  under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added  to
the  tax imposed by section three of this part, and such amount shall be
subtracted in computing entire net income for the taxable year.
§ 4-e. Credit relating to certain sales and  compensating  use  taxes.
(1)  in addition to any other credit allowed by this section, a taxpayer
shall be allowed a credit against the tax imposed by  this  part  to  be
credited or refunded in the manner hereinafter provided in this section.
The amount of such credit shall be equal to one-half the amount of sales
and  compensating  use  taxes imposed by section eleven hundred seven of
the tax law during the taxpayer's taxable year which became legally  due
on  or  after  and  was  paid  on  or after July first, nineteen hundred
eighty-one, less one-half of any credits or refunds of such taxes,  with
respect  to  the  purchase  or  use  by the taxpayer of (i) parts with a
useful life of  one  year  or  less,  tools  and  supplies  for  use  or
consumption  directly  and  predominantly  in the production of tangible
personal property, gas, electricity, refrigeration or steam for sale  by
manufacturing,  processing,  generating, assembling, refining, mining or
extracting or for use directly and  predominantly  in  or  on  telephone
central  office  equipment  or station apparatus or comparable telegraph
equipment where  such  equipment  or  apparatus  is  used  directly  and
predominantly  in  receiving  at destination or initiating and switching
telephone  or  telegraph  communication,  and  (ii)   the   service   of
installing,  repairing,  maintaining  or servicing the tangible personal
property described in section four-b of this part, including  the  parts
with  a useful life of one year or less, tools and supplies described in
clause (i) of this subdivision.  The foregoing credit shall  be  reduced
by  the  amount  of any credit for such sales and compensating use taxes
allowed or allowable against the taxes imposed by any local law  of  the

city  imposing  a  tax on utilities and vendors of utility services, for
any periods embraced within the taxable year of the taxpayer under  this
part.
(2)  The  credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited  or
refunded  without  interest in accordance with the provisions of section
seventy-seven of this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had  claimed  a  credit  under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added  to
the  tax imposed by section three of this part, and such amount shall be
subtracted in computing entire net income for the taxable year.
§ 4-f. Credit relating to certain sales and compensating use taxes  on
electricity used in manufacturing, processing or assembling.  (1) (a) In
addition  to  any other credit allowed by this part, a taxpayer shall be
allowed a credit against the tax imposed by this part to be credited  or
refunded  in the manner hereinafter provided in this section. The amount
of such credit shall be equal to the amount of  sales  and  compensating
use  taxes imposed by section eleven hundred seven of the tax law during
the taxpayer's taxable year which became legally due on or after and was
paid on or after July first,  nineteen  hundred  eighty-four,  less  any
credits or refunds of such taxes, with respect to the purchase or use by
the  taxpayer  of electricity or electric service of whatever nature for
use or  consumption  directly  and  exclusively  in  the  production  of
tangible  personal  property  for  sale  by manufacturing, processing or
assembling. Provided, however, the amount of the credit allowed by  this
paragraph  shall  be  reduced  by  the  amount  of any rebate or rebates
received during the taxpayer's taxable year  pursuant  to  a  local  law
enacted in accordance with article two-G of the general city law.
(b)  In  addition to any other credit allowed by this part, a taxpayer
shall be allowed a credit against the tax imposed by  this  part  to  be
credited  or  refunded  in  the  manner  hereinafter  provided  in  this
subdivision. The amount of such credit shall be equal to the  percentage
specified  below  of  the  amount  of  sales  and compensating use taxes
imposed by section eleven hundred  seven  of  the  tax  law  during  the
taxpayer's  taxable  year  which  became legally due on or after and was
paid on or after July first, nineteen  hundred  eighty-eight,  less  any
credit or refund of such taxes, with respect to the purchase or use by a
non-residential energy user, as such term is defined in article two-G of
the  general  city  law, of electricity or electric service purchased at
retail from the power authority of the state of New  York  or  the  port
authority  of  the  state of New York and New Jersey, provided, however,
that no credit shall be allowed with respect to purchases from such port
authority unless it shall be an "eligible vendor of energy services", as
defined in paragraph one of subdivision (c) of section twenty-five-v  of
the  general  city  law,  and  shall  have  obtained  a certification of
eligibility in accordance with subdivision (b) of section  twenty-five-w
of  such  law; during the period commencing July first, nineteen hundred
eighty-eight and ending June thirtieth, nineteen hundred eighty-nine the
credit shall be in an amount equal to twenty-five  per  centum  of  such
sales  and  compensating use taxes imposed; during the period commencing
July first, nineteen hundred  eighty-nine  and  ending  June  thirtieth,
nineteen  hundred ninety the credit shall be in an amount equal to fifty
per centum of such taxes imposed;  during  the  period  commencing  July
first,  nineteen  hundred  ninety  and  ending  June thirtieth, nineteen
hundred  ninety-one  the  credit  shall  be  in  an  amount   equal   to
seventy-five  per  centum  of  such taxes imposed; and during the period

commencing July first, nineteen hundred ninety-one  and  thereafter  the
credit  shall  be  in  an amount equal to one hundred per centum of such
taxes imposed.
(c)  In  addition to any other credit allowed by this part, a taxpayer
shall be allowed a credit against the tax imposed by  this  part  to  be
credited  or  refunded  in  the  manner  hereinafter  provided  in  this
subdivision. The amount of such credit shall be equal to the  percentage
specified  below  of  the  amount  of  sales  and compensating use taxes
imposed by section eleven hundred  seven  of  the  tax  law  during  the
taxpayer's  taxable  year  which  became legally due on or after and was
paid on or after July first, nineteen  hundred  eighty-eight,  less  any
credit or refund of such taxes, with respect to the purchase or use by a
non-residential  fuel  user  of fuel or fuel service except fuel used to
operate  motor  vehicles;  during  the  period  commencing  July  first,
nineteen  hundred  eighty-eight  and  ending  June  thirtieth,  nineteen
hundred  eighty-nine  the  credit  shall  be  in  an  amount  equal   to
twenty-five per centum of such sales and compensating use taxes imposed,
during  the  period  commencing July first, nineteen hundred eighty-nine
and ending June thirtieth, nineteen hundred ninety the credit  shall  be
in an amount equal to fifty per centum of such taxes imposed; during the
period  commencing  July  first, nineteen hundred ninety and ending June
thirtieth, nineteen hundred ninety-one the credit shall be in an  amount
equal  to  seventy-five per centum of such taxes imposed; and during the
period commencing July first, nineteen hundred ninety-one and thereafter
the credit shall be in an amount equal to one hundred per centum of such
taxes imposed. For purposes of this paragraph, the term "non-residential
fuel user" shall  mean  any  non-residential  user  of  fuel,  except  a
government   agency   or   instrumentality   thereof,   public   benefit
corporation, or any entity that is exempt from  the  sales  tax  imposed
pursuant  to  section eleven hundred seven of the tax law, provided that
the term "non-residential fuel user"  shall  not  include  an  owner  or
operator of residential income producing property, except a hotel.
(2)  The  credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited  or
refunded, without interest, in accordance with the provisions of section
seventy-seven of this title.
(3)  Where the taxpayer receives a refund or credit of any tax imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under the provisions of this  section  in  a  prior
taxable  year, the amount of such tax refund or credit shall be added to
the tax imposed by section three of this part, and such amount shall  be
subtracted in computing entire net income for the taxable year.
§  4-h.  Relocation and employment assistance credit.  (1) In addition
to any other credit allowed by this part, a taxpayer that  has  obtained
the  certifications  in  accordance  with  subdivision  (b)  of  section
twenty-five-z of the general city law shall be allowed a credit  against
the  tax  imposed  by  this  part. The amount of the credit shall be the
amount determined by multiplying five hundred dollars or, in the case of
a taxpayer that has obtained pursuant to subdivision (b) of such section
twenty-five-z a certification of eligibility  dated  on  or  after  July
first,  nineteen  hundred  ninety-five,  one thousand dollars or, in the
case of an eligible business that has obtained pursuant  to  subdivision
(b)  of  such section twenty-five-z a certification of eligibility dated
on or after July first, two  thousand,  for  a  relocation  to  eligible
premises located within a revitalization area defined in subdivision (n)
of  section  twenty-five-y  of  the  general  city  law,  three thousand
dollars,  by  the  number  of  eligible  aggregate   employment   shares
maintained  by  the  taxpayer  during  the  taxable year with respect to

particular premises to  which  the  taxpayer  has  relocated;  provided,
however,  with  respect  to  a relocation for which no application for a
certificate of  eligibility  is  submitted  prior  to  July  first,  two
thousand   three,   to   eligible   premises   that  are  not  within  a
revitalization area, if  the  date  of  such  relocation  as  determined
pursuant to subdivision (j) of section twenty-five-y of the general city
law is before July first, nineteen hundred ninety-five, the amount to be
multiplied  by  the number of eligible aggregate employment shares shall
be five hundred dollars, and with respect to a relocation for  which  no
application  for a certificate of eligibility is submitted prior to July
first, two thousand three,  to  eligible  premises  that  are  within  a
revitalization  area,  if  the  date  of  such  relocation as determined
pursuant to subdivision (j)  of  such  section  is  before  July  first,
nineteen  hundred ninety-five, the amount to be multiplied by the number
of eligible aggregate employment shares shall be five  hundred  dollars,
and if the date of such relocation as determined pursuant to subdivision
(j)  of  such  section  is  on  or  after  July  first, nineteen hundred
ninety-five, and before July first, two thousand, one thousand  dollars;
provided, however, that no credit shall be allowed for the relocation of
any retail activity or hotel services; provided, further, that no credit
shall  be  allowed  under  this section to any taxpayer that has elected
pursuant to subdivision (d) of section twenty-five-z of the general city
law to take such credit against a gross receipts  tax  imposed  under  a
local  law enacted pursuant to subdivision (a) of section twelve hundred
one of the tax law; and  provided  that  in  the  case  of  an  eligible
business  that  has obtained pursuant to subdivision (b) of such section
twenty-five-z  certifications  of  eligibility   for   more   than   one
relocation,  the  portion  of  the  total  amount  of eligible aggregate
employment shares to be multiplied by the  dollar  amount  specified  in
this  subdivision  for  each such certification of a relocation shall be
the number of total  attributed  eligible  aggregate  employment  shares
determined  with  respect to such relocation pursuant to subdivision (o)
of section twenty-five-y of the general city law. For purposes  of  this
section,  the  terms "eligible aggregate employment shares", "relocate",
"retail activity" and "hotel services" shall have the meanings  ascribed
by section twenty-five-y of the general city law.
(2)  The  credit  allowed  under this section with respect to eligible
aggregate  employment  shares  maintained  with  respect  to  particular
premises  to  which  the taxpayer has relocated shall be allowed for the
first taxable year  during  which  such  eligible  aggregate  employment
shares  are  maintained with respect to such premises and for any of the
twelve  succeeding  taxable  years  during  which   eligible   aggregate
employment shares are maintained with respect to such premises; provided
that the credit allowed for the twelfth succeeding taxable year shall be
calculated  by  multiplying  the number of eligible aggregate employment
shares  maintained  with  respect  to  such  premises  in  the   twelfth
succeeding  taxable  year  by  the  lesser  of  one  and a fraction, the
numerator of which is such  number  of  days  in  the  taxable  year  of
relocation  less  the  number  of  days the eligible business maintained
employment shares in the  eligible  premises  in  the  taxable  year  of
relocation  and  the  denominator of which is the number of days in such
twelfth succeeding taxable year during  which  such  eligible  aggregate
employment  shares  are maintained with respect to such premises. Except
as provided in subdivision four of this section, if the  amount  of  the
credit allowable under this section for any taxable year exceeds the tax
imposed  for such year, the excess may be carried over, in order, to the
five immediately  succeeding  taxable  years  and,  to  the  extent  not

previously  deductible, may be deducted from the taxpayer's tax for such
years.
(3) The credit allowable under this section shall be deducted prior to
the deduction of any other credit allowed by this part.
(4)  In  the  case  of a taxpayer that has obtained a certification of
eligibility pursuant to subdivision (b) of section twenty-five-z of  the
general  city  law  dated  on  or  after  July first, two thousand for a
relocation to eligible premises located within the  revitalization  area
defined  in subdivision (n) of section twenty-five-y of the general city
law, the credits allowed under  this  section,  or  in  the  case  of  a
taxpayer  that has relocated more than once, the portion of such credits
attributed to such certification of eligibility pursuant to  subdivision
one  of  this  section,  against the tax imposed by this chapter for the
taxable  year  of  such  relocation  and  for  the  four  taxable  years
immediately  succeeding  the  taxable  year of such relocation, shall be
deemed to be overpayments of tax by  the  taxpayer  to  be  credited  or
refunded, without interest, in accordance with the provisions of section
seventy-seven  of  this  title.  For such taxable years, such credits or
portions thereof may not be carried over to any succeeding taxable year;
provided,  however,  that  this  subdivision  shall  not  apply  to  any
relocation  for  which an application for a certification of eligibility
was not submitted prior to July first, two thousand  three,  unless  the
date of such relocation is on or after July first, two thousand.
§  4-i.  Lower  Manhattan relocation and employment assistance credit.
(1) In addition to any other credit allowed by  this  part,  a  taxpayer
that  has obtained the certifications in accordance with subdivision (b)
of section twenty-five-ee of the general city law  shall  be  allowed  a
credit  against  the  tax imposed by this part. The amount of the credit
shall be the amount determined by multiplying three thousand dollars  by
the  number  of  eligible  aggregate employment shares maintained by the
taxpayer during the taxable year with respect to  eligible  premises  to
which  the  taxpayer  has  relocated;  provided, however, that no credit
shall be allowed for the relocation of  any  retail  activity  or  hotel
services;  provided, further, that no credit shall be allowed under this
subdivision to any taxpayer that has elected pursuant to subdivision (d)
of section twenty-five-ee of the general city law to  take  such  credit
against  a gross receipts tax imposed under a local law enacted pursuant
to subdivision (a) of section twelve hundred one of  the  tax  law.  For
purposes  of  this subdivision, the terms "eligible aggregate employment
shares," "eligible premises," "relocate," "retail activity"  and  "hotel
services"  shall have the meanings ascribed by section twenty-five-dd of
the general city law.
(2) The credit allowed under this section  with  respect  to  eligible
aggregate employment shares maintained with respect to eligible premises
to  which  the  taxpayer  has relocated shall be allowed for the taxable
year of the relocation and for any  of  the  twelve  succeeding  taxable
years  during  which eligible aggregate employment shares are maintained
with respect to eligible premises; provided that the credit allowed  for
the  twelfth  succeeding taxable year shall be calculated by multiplying
the number of  eligible  aggregate  employment  shares  maintained  with
respect  to  eligible premises in the twelfth succeeding taxable year by
the lesser of one and a fraction the numerator of which is  such  number
of  days  in  the taxable year of relocation less the number of days the
eligible business maintained employment shares in eligible  premises  in
the  taxable  year  of  relocation  and  the denominator of which is the
number of days in such twelfth taxable year during which  such  eligible
aggregate   employment  shares  are  maintained  with  respect  to  such
premises.
(3) Except as provided in subdivision four of  this  section,  if  the
amount  of  the credit allowable under this section for any taxable year
exceeds the tax imposed for such year, the excess may be  carried  over,
in  order,  to the five immediately succeeding taxable years and, to the
extent  not  previously  deductible, may be deducted from the taxpayer's
tax for such years.
(4) The credits allowed under this section, against the tax imposed by
this chapter for the taxable year of the relocation  and  for  the  four
taxable   years   immediately   succeeding  the  taxable  year  of  such
relocation, shall be deemed to be overpayments of tax by the taxpayer to
be credited or  refunded,  without  interest,  in  accordance  with  the
provisions  of  section  seventy-seven  of  this title. For such taxable
years, such credits or portions thereof may not be carried over  to  any
succeeding taxable year.
(5)  The credit allowed under this section shall be deducted after the
credits allowed by section  four-h  of  this  part,  but  prior  to  the
deduction of any other credit allowed by this part.
§  5.  Reports.  1.  Every  corporation  having  an  officer, agent or
representative within the  city,  shall  annually  on  or  before  March
fifteenth  transmit  to  the  director  of  finance  a  report in a form
prescribed by him (except that a corporation which reports on the  basis
of  a  fiscal  year  shall  transmit  its report within two and one-half
months  after  the  close  of  its  fiscal  year),  setting  forth  such
information  as the director of finance may prescribe and every taxpayer
which ceases to do business in the city or to  be  subject  to  the  tax
imposed  by this part shall transmit to the director of finance a report
on the date of such cessation or at such other time as  he  may  require
covering  each year or period for which no report was theretofore filed.
Every taxpayer shall also transmit such other reports and such facts and
information as the director of finance may require in the administration
of this part. The director of finance may grant a  reasonable  extension
of time for filing reports whenever good cause exists.
With  respect  to taxable years ending prior to December thirty-first,
nineteen hundred sixty-six, the returns required to be  made  and  filed
pursuant  to  this  section  shall  be  made  and filed on or before the
fifteenth day of the third month following the  close  of  such  taxable
year  or  the  sixtieth  day  following  the  date  this  title  becomes
effective, whichever is later.
An automatic extension of three months for the filing  of  its  annual
report  shall  be allowed any taxpayer if, within the time prescribed by
either of  the  preceding  paragraphs,  whichever  is  applicable,  such
taxpayer files with the director of finance an application for extension
in such form as he may prescribe by regulation and pays on or before the
date of such filing the amount properly estimated as its tax.
2.  Every  report  shall  have  annexed thereto a certification by the
president,  vice-president,  treasurer,   assistant   treasurer,   chief
accounting  officer or any other officer of the taxpayer duly authorized
so to act to the effect that the statements contained therein are  true.
The  fact  that an individual's name is signed on a certification of the
report shall be prima facie evidence that such individual is  authorized
to sign and certify the report on behalf of the corporation. Blank forms
of   reports   shall  be  furnished  by  the  director  of  finance,  on
application, but failure to secure such a blank shall  not  release  any
corporation  from  the  obligation of making any report required by this
part.
3. If the amount of taxable income for any year of any taxpayer, or of
any shareholder of any taxpayer, which has elected  to  be  taxed  under
subchapter s of chapter one of the internal revenue code, as returned to

the  United  States  treasury  department is changed or corrected by the
commissioner of internal revenue or other officer of the  United  States
or  other competent authority, or where a renegotiation of a contract or
subcontract  with  the  United  States  results  in  a change in taxable
income, or where a recovery of a war loss results in  a  computation  or
recomputation  of any tax imposed by the United States, or if a taxpayer
or such shareholder of a taxpayer, pursuant to subsection (d) of section
sixty-two hundred thirteen of the  internal  revenue  code,  executes  a
notice  of waiver of the restrictions provided in subsection (a) of said
section, such taxpayer shall report such changed  or  corrected  taxable
income,  or  the  results  of such renegotiation, or such computation or
recomputation, or such execution  of  such  notice  of  waiver  and  the
changes  or  corrections  of  his  federal taxable income on which it is
based,  within  ninety  days  after  such   execution   or   the   final
determination  of  such  change  or correction or renegotiation, or such
computation, or recomputation or on its next report under this part,  or
as  required  by the director of finance, and shall concede the accuracy
of such determination or state wherein it  is  erroneous.  Any  taxpayer
filing  an  amended  return  with such department shall also file within
ninety days thereafter an amended report with the director of finance.
4. In the discretion of the director of finance,  any  taxpayer  which
owns  or  controls  either  directly or indirectly substantially all the
capital stock of one or more other corporations,  or  substantially  all
the  capital  stock  of  which is owned or controlled either directly or
indirectly by one or more other corporations or by interests  which  own
or  control  either directly or indirectly substantially all the capital
stock of one or more other corporations, may be required or permitted to
make a report on a combined basis covering any such  other  corporations
and  setting  forth  such  information  as  the  director of finance may
require;  provided,  however,  that  no  combined  report  covering  any
corporation  not  a  taxpayer  shall  be required unless the director of
finance  deems  such  a  report  necessary,  because  of   inter-company
transactions   or   some   agreement,   understanding,   arrangement  or
transaction referred to in subdivision five of this  section,  in  order
properly  to reflect the tax liability under this part. In the case of a
combined report the tax shall be measured by  the  combined  entire  net
income  or  combined  capital,  of  all the corporations included in the
report. In computing combined entire net income intercorporate dividends
shall be eliminated,  in  computing  combined  business  and  investment
capital  intercorporate  stock  holdings and intercorporate bills, notes
and  accounts  receivable   and   payable   and   other   intercorporate
indebtedness  shall  be  eliminated and in computing combined subsidiary
capital intercorporate stockholdings shall be eliminated.
5. In case it shall  appear  to  the  director  of  finance  that  any
agreement,  understanding or arrangement exists between the taxpayer and
any other corporation or any  person  or  firm,  whereby  the  activity,
business,  income  or  capital  of  the  taxpayer  within  the  city  is
improperly  or  inaccurately  reflected,  the  director  of  finance  is
authorized and empowered, in its discretion and in such manner as it may
determine,  to  adjust  items  of income, deductions and capital, and to
eliminate assets in computing any allocation  percentage  provided  only
that  any income directly traceable thereto be also excluded from entire
net income, so as equitably to determine the tax. Where (a) any taxpayer
conducts its activity or business under any  agreement,  arrangement  or
understanding in such manner as either directly or indirectly to benefit
its  members  or  stockholders, or any of them, or any person or persons
directly or indirectly interested  in  such  activity  or  business,  by
entering  into  any transaction at more or less than a fair price which,

but for such agreement, arrangement or understanding,  might  have  been
paid or received therefor, or (b) any taxpayer, a substantial portion of
whose  capital  stock  is owned either directly or indirectly by another
corporation,  enters into any transaction with such other corporation on
such terms as to create an improper loss or net income, the director  of
finance  may  include  in the entire net income of the taxpayer the fair
profits, which, but for such agreement,  arrangement  or  understanding,
the taxpayer might have derived from such transaction.
6.  An action may be brought at any time by the corporation counsel at
the instance of the director of finance as agent  and  trustee  for  the
city to compel the filing of reports due under this part.
7. Reports shall be preserved for five years, and thereafter until the
director of finance orders them to be destroyed.
8.  Where  the  state  tax commission changes or corrects a taxpayer's
sales and compensating use tax liability with respect to the purchase or
use of items for which a sales or compensating use  tax  credit  against
the tax imposed by this part was claimed, the taxpayer shall report such
change  or  correction to the commissioner of finance within ninety days
of the final determination of such change or correction, or as  required
by  the  commissioner of finance, and shall concede the accuracy of such
determination or state wherein it is erroneous. Any taxpayer  filing  an
amended  return  or report relating to the purchase or use of such items
shall also file within ninety days thereafter a  copy  of  such  amended
return or report with the commissioner of finance.
§  6.  Payment  and lien of tax.   1. To the extent the tax imposed by
section three of this part shall not have been previously paid  pursuant
to section eight of this part,
(a)  such  tax,  or  the  balance  thereof,  shall  be  payable to the
commissioner of finance in full at the time the report is required to be
filed, and
(b) such tax, or the balance thereof, imposed on  any  taxpayer  which
ceases to do business in the city or to be subject to the tax imposed by
this  part  shall  be payable to the commissioner of finance at the time
the report is required  to  be  filed;  all  other  taxes  of  any  such
taxpayer,  which  pursuant  to  the foregoing provisions of this section
would otherwise be  payable  subsequent  to  the  time  such  report  is
required to be filed, shall nevertheless be payable at such time. If the
taxpayer, within the time prescribed by section five of this part, shall
have  applied  for  an  automatic  extension  of time to file its annual
report and shall have paid to the commissioner of finance on  or  before
the  date  such  application  is  filed  an amount properly estimated as
provided by said section, the only amount payable in addition to the tax
shall be interest at  the  rate  set  by  the  commissioner  of  finance
pursuant  to section eighty-seven of part six, or, if no rate is set, at
the rate of six per centum per annum upon the amount by which  the  tax,
or  the  portion  thereof  payable  on or before the date the report was
required to be filed, exceeds the amount so paid. For  purposes  of  the
preceding sentence:
(1)  an  amount  so  paid  shall be deemed properly estimated if it is
either (A) not less than  ninety  per  centum  of  the  tax  as  finally
determined  (computed  without  regard  to  any  credit  allowable under
section four-a of this part),  or  (B)  not  less  than  the  tax  shown
(computed without regard to any credit allowable under section four-a of
this  part)  on the taxpayer's report for the preceding taxable year, if
such preceding year was a taxable year of twelve months; and
(2) the time when a report is required to be filed shall be determined
without regard to any extension of time for filing such report.
2. The director of finance may grant a reasonable  extension  of  time
for  payment of any tax imposed by this part under such conditions as it
deems just and proper.
3. Subdivision one of this section shall apply to a taxpayer which has
a right to a credit pursuant to section four-a of this part, except that
the  tax, or balance thereof, payable to the director of finance in full
pursuant to subdivision one of this section, at the time the  report  is
required  to  be  filed, shall be calculated and paid at such time as if
the credit provided for in section four-a of this part were not allowed.
§ 7. Declaration of estimated tax.  1. Every taxpayer subject  to  the
tax  imposed  by  section three of this part shall make a declaration of
its estimated tax for the  current  privilege  period,  containing  such
information  as  the director of finance may prescribe by regulations or
instructions, if such estimated tax can reasonably be expected to exceed
one thousand dollars.
2. The  term  "estimated  tax"  means  the  amount  which  a  taxpayer
estimates  to  be  the tax imposed by section three of this part for the
current privilege period, less the amount which it estimates to  be  the
sum  of  any  credits  allowable  against  the tax other than the credit
allowable under section four-a of this part.
3. A declaration of estimated tax shall be filed  on  or  before  June
fifteenth  of  the  current  privilege  period in the case of a taxpayer
which reports on the basis of  a  calendar  year,  except  that  if  the
requirements of subdivision one are first met:
(a)  after  June  first  and  before  October  second  of such current
privilege period, the declaration shall be filed on  or  before  October
fifteenth, or
(b)  after  October  first  of  such  current  privilege  period,  the
declaration shall be  filed  on  or  before  January  fifteenth  of  the
succeeding calendar year.
Notwithstanding   any   other   provision   of  this  subdivision,  no
declaration need be filed prior to the sixtieth day after the date  this
title becomes effective.
4.  A  taxpayer  may  amend  a  declaration  under  regulations of the
director of finance.
5. If, on or before February fifteenth of the succeeding year  in  the
case  of  a  taxpayer  which  reports on the basis of a calendar year, a
taxpayer files its report for the year  for  which  the  declaration  is
required,  and pays therewith the balance, if any, of the full amount of
the tax shown to be due on the report,
(a)  such  report  shall  be  considered  as  its  declaration  if  no
declaration  was required to be filed during the calendar or fiscal year
for which the tax was imposed, but is otherwise required to be filed  on
or  before  the  fifteenth day of the first month of the succeeding year
pursuant to subdivision three, and
(b) such report shall be considered  as  the  amendment  permitted  by
subdivision four to be filed on or before the fifteenth day of the first
month  of  the succeeding year if the tax shown on the report is greater
than the estimated tax shown on a declaration previously made.
6. This section shall apply to  privilege  periods  of  twelve  months
other  than  a  calendar  year by the substitution of the months of such
fiscal year for the corresponding months specified in this section.
7. If the privilege period for which a tax is imposed by section three
of this part is less than twelve months, every taxpayer required to make
a declaration of estimated tax for such privilege period shall make such
a declaration in accordance with regulations of the director of finance.
8. The director of finance may grant a reasonable extension  of  time,
not  to  exceed three months, for the filing of any declaration required

pursuant to this section,  on  such  terms  and  conditions  as  it  may
require.
§  8. Payments on account of estimated tax.  1. Every taxpayer subject
to the tax imposed by section three of this  part  shall  pay  with  the
report  required to be filed for the preceding privilege period, if any,
or with an application for extension of the time for filing such report,
an amount equal to twenty-five per centum of the preceding  year's  tax,
computed  without  regard to the credits provided for in section four-b,
four-c, four-d, four-e, four-f, four-g and four-h of this part  if  such
preceding year's tax exceeded one thousand dollars.
2.  The  estimated  tax  with  respect to which a declaration for such
privilege period is required shall be paid, in the case  of  a  taxpayer
which reports on the basis of a calendar year, as follows:
(a)  If  the  declaration  is  filed  on or before June fifteenth, the
estimated tax shown thereon, after applying thereto the amount, if  any,
paid during the same privilege period pursuant to subdivision one, shall
be  paid  in three equal installments. One of such installments shall be
paid at the time of the filing of the declaration, one shall be paid  on
the  following  October  fifteenth,  and  one  on  the following January
fifteenth.
(b) If the declaration is filed after June  fifteenth  and  not  after
October  fifteenth  of  such privilege period, and is not required to be
filed on or before June fifteenth of  such  period,  the  estimated  tax
shown  on  such  declaration, after applying thereto the amount, if any,
paid during the same privilege period pursuant to subdivision one, shall
be paid in two equal installments. One of  such  installments  shall  be
paid  at the time of the filing of the declaration and one shall be paid
on the following January fifteenth.
(c) If the declaration  is  filed  after  October  fifteenth  of  such
privilege  period,  and is not required to be filed on or before October
fifteenth of such privilege period, the  estimated  tax  shown  on  such
declaration,  after applying thereto the amount, if any, paid in respect
of such privilege period pursuant to subdivision one, shall be  paid  in
full at the time of the filing of the declaration.
(d) If the declaration is filed after the time prescribed therefor, or
after  the  expiration of any extension of time therefor, paragraphs (b)
and (c) of this subdivision shall not apply, and there shall be paid  at
the  time of such filing all installments of estimated tax payable at or
before such time, and the remaining installments shall be  paid  at  the
times  at  which,  and  in  the  amounts  in which, they would have been
payable if the declaration had been filed when due.
3.  If  any  amendment  of  a  declaration  is  filed,  the  remaining
installments,  if  any,  shall be ratably increased or decreased (as the
case may be) to reflect any increase or decrease in the estimated tax by
reason of such amendment, and if any amendment  is  made  after  October
fifteenth  of the privilege period, any increase in the estimated tax by
reason thereof shall be paid at the time of making such amendment.
4. Any amount paid pursuant to subdivision one or the  first  sentence
of  subdivision  three  shall  be  applied  after  payment  as  a  first
installment against the estimated tax of the taxpayer  for  the  current
privilege  period shown on the declaration required to be filed pursuant
to section seven of this part or, if no declaration of estimated tax  is
required  to be filed by the taxpayer pursuant to such section, any such
amount shall be considered a payment on account of the tax shown on  the
report required to be filed by the taxpayer for such privilege period.
5.  Notwithstanding  the  provisions  of  section seventy-nine of this
title or of section three-a of the general municipal law, if  an  amount
paid  pursuant  to  subdivision  one exceeds the tax shown on the report

required to be filed by the taxpayer for  the  privilege  period  during
which  the  amount  was  paid, interest shall be allowed and paid on the
amount by which the amount so paid pursuant to such subdivision  exceeds
such  tax,  at  the  rate set by the commissioner of finance pursuant to
section eighty-seven of part six, or, if no rate is set, at the rate  of
four per centum per annum from the date of payment of the amount so paid
pursuant  to  such  subdivision  to the fifteenth day of the third month
following the close of the privilege period, provided, however, that  no
interest  shall  be allowed or paid under this subdivision if the amount
thereof is less than one dollar or  if  such  interest  becomes  payable
solely  because  of  a carryback of a net operating loss in a subsequent
privilege period.
6. As used in this section, "the preceding year's tax" means  the  tax
imposed  upon  the  taxpayer  by  section  three  of  this  part for the
preceding calendar or fiscal year, or, for  purposes  of  computing  the
first  installment  of  estimated tax when an application has been filed
for extension of the time for filing the report required to be filed for
such preceding calendar or fiscal year, the  amount  properly  estimated
pursuant  to  section  seven  of  this  part as the tax imposed upon the
taxpayer for such calendar or fiscal year.
7. This section shall apply to a privilege period of less than  twelve
months in accordance with regulations of the director of finance.
8.  The provisions of this section shall apply to privilege periods of
twelve months other than a calendar year  by  the  substitution  of  the
months  of  such  fiscal  year for the corresponding months specified in
such provisions.
9. The commissioner of finance may grant  a  reasonable  extension  of
time,  not  to  exceed  six  months,  for  payment of any installment of
estimated tax required pursuant to  this  section,  on  such  terms  and
conditions  as  it  may  require,  including the furnishing of a bond or
other security by the taxpayer in an  amount  not  exceeding  twice  the
amount for which any extension of time for payment is granted, provided,
however  that  interest  at  the rate set by the commissioner of finance
pursuant to section eighty-seven of part six, or, if no rate is set,  at
the  rate  of  six  per centum per annum for the period of the extension
shall be charged and collected on the amount for which any extension  of
time for payment is granted under this subdivision.
10. A taxpayer may elect to pay any installment of estimated tax prior
to the date prescribed in this section for payment thereof.
11.  The  portion of an overpayment attributable to a credit allowable
pursuant to section four-a of this part may not be credited against  any
payment due under this section.
§  9.  Collection  of taxes.   Every foreign corporation (other than a
moneyed corporation) subject to the provisions of this  part,  except  a
corporation  having a certificate of authority under section two hundred
twelve of the general corporation law or having authority to do business
by virtue of section thirteen hundred five of the  business  corporation
law,  shall file in the department of state a certificate of designation
in its corporate name, signed and acknowledged by  its  president  or  a
vice-president  or its secretary or treasurer, under its corporate seal,
designating the secretary of state as its agent upon whom process in any
action provided for by this part may be served within  this  state,  and
setting  forth  an  address to which the secretary of state shall mail a
copy of any such process against the corporation  which  may  be  served
upon  him.  In  case any such corporation shall have failed to file such
certificate of designation, it shall be deemed to  have  designated  the
secretary of state as its agent upon whom such process against it may be
served; and until a certificate of designation shall have been filed the

corporation  shall  be deemed to have directed the secretary of state to
mail copies of process served upon him to the corporation  at  its  last
known  office address within or without the state. When a certificate of
designation  has  been  filed by such corporation the secretary of state
shall mail copies of process thereafter served upon him to  the  address
set  forth in such certificate. Any such corporation, from time to time,
may change the address to which the secretary of state  is  directed  to
mail copies of process, by filing a certificate to that effect executed,
signed  and  acknowledged in like manner as a certificate of designation
as herein provided. Service of process upon any such corporation or upon
any corporation having a certificate  of  authority  under  section  two
hundred  twelve of the general corporation law or having authority to do
business by virtue of section thirteen  hundred  five  of  the  business
corporation  law,  in  any  action commenced at any time pursuant to the
provisions of this part, may be made by either (a) personally delivering
to and leaving with the secretary of state, a deputy secretary of  state
or  with any person authorized by the secretary of state to receive such
service duplicate copies thereof at the  office  of  the  department  of
state in the city of Albany, in which event the secretary of state shall
forthwith send by registered mail, return receipt requested, one of such
copies to the corporation at the address designated by it or at its last
known  office  address  within  or  without the state, or (b) personally
delivering to  and  leaving  with  the  secretary  of  state,  a  deputy
secretary  of  state  or  with any person authorized by the secretary of
state to receive such service, a copy  thereof  at  the  office  of  the
department  of  state  in  the  city  of Albany and by delivering a copy
thereof to, and leaving such copy with, the  president,  vice-president,
secretary,  assistant  secretary,  treasurer,  assistant  treasurer,  or
cashier of such corporation, or  the  officer  performing  corresponding
functions  under  another  name, or a director or managing agent of such
corporation, personally  without  the  state.  Proof  of  such  personal
service  without the state shall be filed with the clerk of the court in
which the action is pending within thirty days after such  service,  and
such service shall be complete ten days after proof thereof is filed.
§  10.  Limitations of time.  The provisions of the civil practice law
and rules relative to the limitation of time of enforcing a civil remedy
shall not apply to any proceeding or action  taken  to  levy,  appraise,
assess,  determine  or  enforce  the  collection  of  any tax or penalty
prescribed by this part, provided, however, that as to  real  estate  in
the  hands  of persons who are owners thereof who would be purchasers in
good faith but for such tax or penalty and as to the lien on real estate
of mortgages held by persons who would be holders thereof in good  faith
but for such tax or penalty, all such taxes and penalties shall cease to
be  a  lien  on  such  real estate as against such purchasers or holders
after the expiration of ten years from the date such  taxes  became  due
and  payable. The limitations herein provided for shall not apply to any
transfer from a corporation to a person or corporation  with  intent  to
avoid  payment  of  any taxes, or where with like intent the transfer is
made to a grantee corporation, or any  subsequent  grantee  corporation,
controlled  by  such grantor or which has any community of interest with
it, either through stock ownership or otherwise.
PART III
FINANCIAL CORPORATION TAX
SUBPART 1
TAX ON STATE BANKS, TRUST COMPANIES, FINANCIAL CORPORATIONS
AND SAVINGS AND LOAN ASSOCIATIONS
§ 11. Definitions. When used in this subpart:
1. The term "financial corporation" means every  corporation  doing  a
banking  business  as  defined  in  this  section, other than a national
banking association, a trust company all of the capital stock  of  which
is  owned by not less than twenty savings banks organized under a law of
this  state,  or a corporation taxable under part two of this title, and
shall include the mortgage facilities  corporation  created  by  chapter
five hundred sixty-four of the laws of nineteen hundred fifty-six.
2.  The  word  "paid,  " for the purpose of the deductions and credits
under this subpart, means "paid or accrued" or "paid or  incurred,"  and
the  terms  "paid  or incurred" and "paid or accrued" shall be construed
according to the method of accounting upon the basis of  which  the  net
income  is  computed,  under  this subpart. The term "received," for the
purpose of the computation  of  net  income  under  this  subpart  means
"received  or  accrued"  and  the  term  "received  or accrued" shall be
construed according to the method of accounting upon the basis of  which
the net income is computed under this subpart.
3. The word "dividend" means any distribution made by a corporation to
its  shareholders or members, out of its earnings or profits, whether in
cash, or in property other than stock of the corporation.
4. The words "doing a banking business" means doing such business as a
corporation may be created to do under articles three, five, five-a, six
and seven of the banking law, or doing any business which a  corporation
is authorized by such articles to do.
5.  The  words  "foreign banker doing a banking business" in the city,
include every foreign corporation doing a banking business in the  city,
except a national banking association.
6.  The  words  "savings and loan association" means every corporation
doing such business as a corporation may be created to do under  article
ten  of  the  banking  law,  including  every  federal  savings and loan
association organized under authority of the United States.
§  12.  Tax  based  on  net  income;  imposition;  minimum  tax;   new
incorporations;  dissolution;  consolidations;  mergers; etc. 1. For the
privilege of doing business in the city:
(a) Every bank and savings and loan association  organized  under  the
authority of this state;
(b) Every trust company incorporated, organized or formed under, by or
pursuant  to  a  law of the state, other than a trust company all of the
stock of which is owned by not less than twenty savings banks  organized
under  a  law of the state, and every domestic corporation authorized to
do a trust company's business solely or in  connection  with  any  other
business, under a general or special law of the state;
(c) Every other domestic financial corporation;
(d)  Every  incorporated  foreign  banker doing a banking business and
every other foreign financial corporation; and
(e) Every federal savings and  loan  association  located  within  the
city,
shall  annually  pay  a  tax at the rate of four and one-half per centum
except that  for  the  years  nineteen  hundred  seventy-one  and  those
following,  as  an  alternative, at the rate of five and sixty-three one
hundredths per centum, to be computed as provided in this subpart,  upon
the  basis  of its net income for each calendar year, beginning with the
calendar year nineteen hundred sixty-six, next preceding the  date  when
such  tax  becomes  due  and,  if  the  taxpayer  is  required to file a
declaration of estimated tax and to make payments  on  account  of  such
estimated  tax as provided by section thirty-five of this part, upon the
basis of its net income for the calendar year with respect to which such
declaration is required to be filed.
2. Every such corporation for the privilege of doing business  in  the
city  and every federal savings and loan association located in the city
shall be subject to a minimum tax of not less than ten dollars  and  not
less  than one mill or, as an alternative for the years nineteen hundred
seventy-one  and  those following, a minimum tax of not less than twelve
and one-half dollars and not less than one and one  quarter  mills  upon
each  dollar  of such a part of its issued capital stock on the last day
of the calendar year preceding that in which such tax  becomes  due,  at
its  face  value,  as  the gross income of such corporation derived from
business carried on within the city, during such calendar year, bears to
its gross income derived from all business, both within and without  the
city,  during said year, but if such a corporation has stock without par
value, such stock shall be taken at its actual or market value, and  not
less  than  five dollars per share, as may be determined by the director
of finance; except that a savings bank and savings and loan  association
shall  be  subject to a minimum tax of not less than ten dollars and not
less than an amount equal to two per centum of the amount of interest or
dividends credited by  it  by  depositors  or  shareholders  during  the
calendar  year  preceding  that  in which such tax becomes due or, as an
alternative, for  the  years  nineteen  hundred  seventy-one  and  those
following,  a  minimum  tax of not less than twelve and one-half dollars
and not less than an amount equal to two and one-half per centum of  the
amount  of  interest  or  dividends  credited  to by it to depositors or
shareholders during the calendar year preceding that in which  such  tax
becomes  due,  provided, that, in determining such amount, each interest
or dividend credit to a depositor or shareholder shall be deemed  to  be
the  interest  or dividend actually credited or the interest or dividend
which would have been credited if it had been computed and  credited  at
the rate of two per centum per annum, whichever is less, and except also
that  in the case of a trust company or savings bank incorporated in the
calendar year preceding that  in  which  its  first  return  under  this
subpart  shall  be due and after the thirtieth day of June in such year,
the minimum tax, computed as in  this  subdivision  provided,  shall  be
reduced one-twelfth for each month, or major portion thereof, subsequent
to said thirtieth day of June during which such trust company or savings
bank did not exercise the privilege of doing business in the city.
3.  For  the  privilege  of  doing  business  in  the city, every such
domestic corporation, except trust companies and savings banks, shall be
subject to a tax  for  the  calendar  year  in  which  its  organization
certificate  is  filed,  and, for the privilege of doing business in the
city, every such foreign corporation shall be subject to a tax  for  the
calendar  year  in  which it first does business in the city, and, every
federal savings and loan association located within the  city  shall  be
subject to a tax for the calendar year in which it first becomes located
within the city, computed in the same manner and at the same rate as the
minimum  tax  under  subdivision  two  of  this section, except that the
income forming the basis for proration shall  be  the  income  for  such
calendar  year,  and  the  issued capital stock shall be taken as of the
last day of such calendar year;  provided,  however,  that  the  tax  so
computed  shall  be reduced one-twelfth for each month, or major portion
thereof, in such calendar year, during which such  corporation  was  not
doing  business  in  the  city,  or,  if  a  federal  savings  and  loan
association, was not located in the city, and in no event shall the  tax
be  less  than  ten dollars or, as an alternative, for the year nineteen
hundred seventy-one and  those  following,  not  less  than  twelve  and
one-half dollars.
4.  For  the privilege of doing business in the city, every such trust
company and savings bank which shall  become  incorporated  between  the

thirty-first day of December and the succeeding first day of July, shall
be  subject to a tax for such period, computed in the same manner and at
the same rate as the minimum tax under subdivision two of this  section,
except  that  the  income  forming  the basis for proration shall be the
income for such period;  and  the  issued  capital  stock,  or  interest
credited  to depositors of a savings bank, shall be taken as of the last
day of such period; provided, however, that the tax so computed shall be
reduced one-half and an additional one-twelfth for each month, or  major
portion  thereof,  in  such  period,  during which such trust company or
savings bank was not doing business in the city, and in no  event  shall
the  tax  be  less  than ten dollars or, as an alternative, for the year
nineteen hundred seventy-one and those following, not less  than  twelve
and one-half dollars.
5.  For  the  privilege  of  doing  business  in  the city, every such
corporation, except trust companies and savings banks,  which  shall  be
dissolved  between  the  thirty-first day of December and the succeeding
second day of September, and shall not  become  merged  or  consolidated
with  another  corporation  taxable  under  this subpart and, every such
foreign corporation which shall cease to do business in the city  during
the  same  period,  and every federal savings and loan association which
ceases to be located in the city during the same period, and  shall  not
become  merged  or  consolidated  with another corporation taxable under
this subpart, shall pay a tax for the period from the  thirty-first  day
of December up to the time of dissolution, ceasing to do business in the
city, or ceasing to be located in the city, as the case may be, equal to
that  which would have been payable had it not been dissolved, ceased to
do business in the city, or ceased to be located  in  the  city,  except
that  such  tax shall be reduced one-third and an additional one-twelfth
for each month, or major  portion  thereof,  prior  to  such  succeeding
second  day  of  September,  during which such corporation was not doing
business in the city, or was not located in the city, and  in  no  event
shall  the  tax  be less than ten dollars or, as an alternative, for the
year nineteen hundred seventy-one and those  following,  not  less  than
twelve  and  one-half  dollars.  If such dissolution or cessation occurs
between the fifteenth day of March and the second day of September,  and
if  such  corporation  shall  have  filed  its  return  on or before the
fifteenth day of March as required by section thirty-two of  this  part,
it  may  file a claim for refund as provided in section seventy-eight of
this title, showing any reduction in tax to which it may be entitled  as
provided  in  the  preceding sentence; and if it shall be made to appear
that the amount of tax due is less than the amount as  computed  on  the
basis  of  the original return, the director of finance shall adjust the
computation of tax accordingly. If the amount  of  tax  as  so  adjusted
shall  be less than theretofore amount heretofore paid, the excess shall
be refunded by the comptroller as provided in subdivision one of section
seventy-seven of this title.
6.  Every  such  trust  company  and  savings  bank,  which  shall  be
dissolved,  and  shall  not  become  merged or consolidated with another
corporation taxable under this  subpart,  shall,  if  dissolution  takes
place  between the thirtieth day of June and the succeeding first day of
January, be subject to a tax, for that part of such period in  which  it
had  been  doing  business,  computed in the same manner and at the same
rate as the minimum tax under subdivision two of  this  section,  except
that  the income forming the basis for proration shall be the income for
the calendar year in which  such  dissolution  occurs;  and  the  issued
capital  stock,  or  interest  credited to depositors of a savings bank,
shall be taken as of the date of dissolution;  provided,  however,  that
the  tax  so  computed  shall  be  reduced  one-half  and  an additional

one-twelfth for each month, or major portion thereof, between  the  date
of  dissolution  and the succeeding first day of January. If dissolution
occurs between the thirty-first  day  of  December  and  the  succeeding
sixteenth  day  of  March,  such trust company and savings bank shall be
subject to the same tax that would have been due from it  on  or  before
the  fifteenth  day of March had it not been dissolved, except that such
tax shall be reduced  one-twelfth  for  each  month,  or  major  portion
thereof,  from  the  date  of dissolution to the succeeding first day of
July, and shall be for the period beginning on the preceding  first  day
of July and ending on the date of dissolution. In no event shall the tax
under  this  subdivision be less than ten dollars or, as an alternative,
for the year nineteen hundred seventy-one and those following, not  less
than twelve and one-half dollars.
7. In the case of a consolidation or merger of taxpayers, or in case a
national   bank  taxable  under  subpart  two  of  this  part  shall  be
consolidated or merged with a taxpayer under this subpart, or in case of
a series of such transactions, there shall be added to the net income of
the taxpayer resulting from  such  consolidations  or  mergers  the  net
income  of the taxpayers which are consolidated or merged for the period
for which the taxpayer resulting from such consolidation  or  merger  is
required to render any return under this subpart, except that net income
shall not be included if it has already been used as the basis for a tax
under  this  subpart,  and  the tax payable on the filing of such return
shall be  based  upon  the  entire  net  income  reported  therein.  The
acquisition  by  a  taxpayer,  directly  or indirectly, of the assets or
franchises of another taxpayer or national bank shall be deemed a merger
for the purposes of this section.
8. The tax imposed by this subpart shall be for the calendar year next
preceding the year in which it becomes due; except that with respect  to
corporations  subject  to  a tax imposed under subdivisions three, four,
five or six of this section, the tax shall be  for  the  period  therein
specified, and except that with respect to corporations required to file
a  declaration  of estimated tax and to make payments on account of such
estimated tax as provided by  section  thirty-five  of  this  part,  all
payments of tax within a calendar year, whether computed on the basis of
net  income  for the current calendar year or on the basis of net income
for the preceding calendar year, shall be for the calendar year in which
the payments are required to be made.
9. In the event that it shall be finally  determined  by  a  court  of
competent  jurisdiction  that  the  taxes  imposed  on  national banking
associations by subpart two of this part are unconstitutional or invalid
for the reason that they are not in conformity with  the  provisions  of
section   fifty-two  hundred  nineteen  of  the  United  States  revised
statutes, then, in lieu of the taxes imposed by the provisions  of  this
subpart, every corporation that otherwise would have been subject to tax
under this subpart shall be subject to the tax imposed under part two as
of  the  effective  date  of part two, and all of the provisions of part
two,  unless  clearly  inappropriate,   shall   be   applicable   except
subdivision  four  of  section  three;  and, in such event, any payments
made, reports or returns filed or any act of the director of finance  or
of  a  taxpayer  purportedly  under this part shall be treated as though
made, filed or done pursuant to part two.
10. Notwithstanding the provisions of subdivisions one  and  two,  for
the  years nineteen hundred seventy-three and those following, such city
may impose, by local  law,  a  surtax  of  fifteen  per  centum  of  the
percentage of tax in effect for the year nineteen hundred seventy-two.
§  13.  Years for which imposed.  The tax imposed by section twelve of
this part is imposed for each calendar year beginning with the  calendar
year nineteen hundred sixty-six.
§  14.  Ascertainment  of  gain  or  loss.    1.  For  the  purpose of
ascertaining the gain derived or loss sustained from the sale  or  other
disposition of property, real, personal or mixed, the basis shall be the
cost  thereof,  or  the  inventoried  value  if the inventory is made in
accordance with section seventeen of this part.
2. Notwithstanding subdivision one of this section,  with  respect  to
gain derived from the sale or other disposition of any property acquired
prior  to  January  first,  nineteen  hundred sixty-six, except stock in
trade of the taxpayer or other property of a kind which  would  properly
be  included in the inventory of the taxpayer if on hand at the close of
the taxable year, or property held by the taxpayer primarily for sale to
customers in the ordinary course of its trade or business, and  accounts
or notes receivable acquired in the ordinary course of trade or business
from  the  sale  of  such  stock  in  trade or property, or for services
rendered, net income shall not include
(a) That portion of  the  gain  included  in  determining  net  income
pursuant  to  subdivision  one of this section with respect to each such
property, which exceeds
(b) The amount of gain that  would  be  included  in  determining  net
income  pursuant to subdivision one of this section with respect to each
such property if the basis of such property on the date of sale or other
disposition were equal to  its  fair  market  value  on  January  first,
nineteen  hundred sixty-six, plus or minus all adjustments to basis made
with respect to each such property in computing net income  for  periods
on or after January first, nineteen hundred sixty-six;
provided  that  the  total  adjustment  to  net  income provided by this
subdivision shall not exceed the amount of the taxpayer's net gain  from
the  sale  or  other  disposition  of  all  such property, as determined
pursuant to subdivision one of this section.
3. In the case of any bond, with respect  to  which  a  deduction  for
amortizable  bond premium is allowable under subdivision nine of section
twenty-one of this part, the basis for determining gain or loss shall be
reduced by the total amount of such deductions so allowable.
§ 15. Exchange of property.--Upon the sale or exchange of property the
entire amount of the gain or loss, determined  under  section  fourteen,
shall be recognized, except as hereinafter provided in this section:
1.  No  gain  or  loss  shall  be  recognized  if  common  stock  in a
corporation  is  exchanged  solely  for  common  stock   in   the   same
corporation,  or if preferred stock in a corporation is exchanged solely
for preferred stock in the same corporation;
2. No gain or loss shall be recognized if stock  or  securities  in  a
corporation a party to a reorganization are, in pursuance of the plan of
reorganization,  exchanged  solely  for  stock  or  securities  in  such
corporation or in another corporation a party to the reorganization;
3. No gain or loss shall be recognized if a taxpayer,  a  party  to  a
reorganization,   exchanges  property,  in  pursuance  of  the  plan  of
reorganization, solely for stock or securities in another corporation  a
party to the reorganization; and
4. No gain or loss shall be recognized if property is transferred to a
corporation  by a taxpayer solely in exchange for stock or securities in
such corporation, and immediately after the exchange such taxpayer is in
control of the corporation; but in the case of an exchange by a taxpayer
and one or more other corporations or  persons  this  subdivision  shall
apply only if the amount of the stock and securities received by each is

substantially in proportion to its interest in the property prior to the
exchange.
5.  If  property  (as a result of its destruction in whole or in part,
theft or seizure,  or  an  exercise  of  the  power  of  requisition  or
condemnation,  or  the  threat  of imminence thereof) is compulsorily or
involuntarily converted into property similar or related in  service  or
use  to  the  property so converted, or into money which is forthwith in
good faith, under regulations prescribed by  the  director  of  finance,
expended  in  the  acquisition  of  other property similar or related in
service or use to the property so converted, or in  the  acquisition  of
control  of  a  corporation  owning  such  other  property,  or  in  the
establishment  of  a  replacement  fund,  no  gain  or  loss  shall   be
recognized.  If  any  part of the money is not so expended, the gain, if
any, shall be recognized, but in an amount not in excess  of  the  money
which is not so expended.
6.  If there is distributed, in pursuance of a plan of reorganization,
to  a  taxpayer  shareholder  in  a   corporation   a   party   to   the
reorganization,  stock  or  securities in such corporation or in another
corporation a party to the reorganization, without the surrender by such
taxpayer shareholder of stock or securities in such  a  corporation,  no
gain  to  the  distributee  from the receipt of such stock or securities
shall be recognized.
7. If an exchange would be within the provisions of  subdivision  one,
two,  or  four  of  this  section  if  it were not for the fact that the
property received in exchange consists not only of property permitted by
such subdivision to be received without the  recognition  of  gain,  but
also of other property or money, then the gain, if any, to the recipient
shall  be  recognized, but in an amount not in excess of the sum of such
money and the fair market value of such other property.
8. If an exchange would be within the provisions of subdivision  three
of  this  section if it were not for the fact that the property received
in exchange consists not only of stock or securities permitted  by  such
subdivision  to be received without the recognition of gain, but also of
other property or money, then--
(a) If the taxpayer receiving such other property or money distributes
it in pursuance of the plan of reorganization, no gain to  the  taxpayer
shall be recognized from the exchange, but
(b)  If  the  taxpayer receiving such other property or money does not
distribute it in pursuance of the plan of reorganization, the  gain,  if
any, to the taxpayer shall be recognized, but in an amount not in excess
of  the  sum  of  such  money  and  the  fair market value of such other
property so received, which is not so distributed.
9. If an exchange would be within the provisions of  subdivision  one,
two, three, or four of this section if it were not for the fact that the
property received in exchange consists not only of property permitted by
such subdivision to be received without the recognition of gain or loss,
but  also  of  other  property  or money, then no loss from the exchange
shall be recognized.
10. As used in this section:
The  term  "reorganization"  means  (a)  a  merger  or   consolidation
(including  the acquisition by one corporation of at least a majority of
the voting stock and at least a majority of the total number  of  shares
of  all  other classes of stock of another corporation, or substantially
all the properties of another corporation),  or  (b)  a  transfer  by  a
corporation  of  all  or  a part of its assets to another corporation if
immediately after the transfer the transferor  or  its  stockholders  or
both  are  in  control  of  the  corporation  to  which  the  assets are

transferred, or  (c)  a  recapitalization,  or  (d)  a  mere  change  in
identity, form or place of organization, however effected;
The  term  "a  party  to  a  reorganization"  includes  a  corporation
resulting from a reorganization and includes both  corporations  in  the
case  of an acquisition by one corporation of at least a majority of the
voting stock and at least a majority of the total number  of  shares  of
all other classes of stock of another corporation; and
The  term  "control" means the ownership of at least eighty per centum
of the voting stock and at least eighty per centum of the  total  number
of shares of all other classes of stock of the corporation.
11. No gain or loss shall be recognized upon the receipt by a taxpayer
of  property  distributed  in complete liquidation of a corporation. For
the purposes of this paragraph a distribution shall be considered to  be
in complete liquidation only if--
(a)  the  taxpayer  receiving  such  property  was, on the date of the
adoption of the plan of liquidation, and has  continued  to  be  at  all
times  until  the  receipt  of the property, the owner of stock (in such
corporation) possessing at least eighty per centum of the total combined
voting power of all classes of stock entitled to vote and the  owner  of
at  least  eighty  per centum of the total number of shares of all other
classes of stock (except nonvoting stock which is limited and  preferred
as  to  dividends),  and  was  at  no  time  on or after the date of the
adoption of the plan  of  liquidation  and  until  the  receipt  of  the
property  the  owner  of a greater percentage of any class of stock than
the percentage of such class owned at the time of  the  receipt  of  the
property; and either
(b)  the  distribution is by such corporation in complete cancellation
or redemption of all its stock, and the transfer  of  all  the  property
occurs  within  the  base  year;  in  such  case  the  adoption  by  the
shareholders  of  the  resolution  under   which   is   authorized   the
distribution   of   all  the  assets  of  the  corporation  in  complete
cancellation or redemption of all its  stock,  shall  be  considered  an
adoption  of  a  plan  of  liquidation,  even  though  no  time  for the
completion of  the  transfer  of  the  property  is  specified  in  such
resolution; or
(c)  such  distribution  is  one  of a series of distributions by such
corporation in complete cancellation or redemption of all its  stock  in
accordance  with  a  plan of liquidation under which the transfer of all
the property under the liquidation is to be completed within three years
from the close of the year during which is made the first of the  series
of  distributions  under  the  plan, except that if such transfer is not
completed within such period, or  if  the  taxpayer  does  not  continue
qualified  under paragraph (a) until the completion of such transfer, no
distribution under the  plan  shall  be  considered  a  distribution  in
complete liquidation.
If  such  transfer of all the property does not occur within the year,
the director of finance may require of the taxpayer such bond, or waiver
of the statute of limitations on assessment and collection, or both,  as
he  may deem necessary to insure, if the transfer of the property is not
completed within such three year period, or if  the  taxpayer  does  not
continue  qualified  under  paragraph  (a)  until the completion of such
transfer, the assessment and collection of all taxes then imposed  under
this   subpart  for  such  year  or  subsequent  years,  to  the  extent
attributable  to  property  so  received.   A   distribution   otherwise
constituting  a  distribution in complete liquidation within the meaning
of this paragraph shall not be considered as  not  constituting  such  a
distribution  merely  because  it  does not constitute a distribution or
liquidation within the meaning of the  corporate  law  under  which  the

distribution  is made; and for the purposes of this paragraph a transfer
of property of such corporation to the taxpayer shall not be  considered
as not constituting a distribution (or one of a series of distributions)
in  complete  cancellation  or  redemption  of  all  the  stock  of such
corporation, merely because the carrying out of the  plan  involves  (1)
the  transfer  under  the  plan  to  the taxpayer by such corporation of
property, not attributable to shares owned  by  the  taxpayer,  upon  an
exchange  described  in  subdivision  three of this section, and (2) the
complete cancellation or redemption under  the  plan,  as  a  result  of
exchanges  described  in  subdivision two of this section, of the shares
not owned by the taxpayers.
§ 16.  Exchange of property when no gain or loss is  realized.    When
property is exchanged for other property and no gain or loss is realized
under  the  provisions  of  the preceding section, the property received
shall be treated as taking the place of the property exchanged therefor.
Where no gain or loss is realized under the  provisions  of  subdivision
eleven  of  the  preceding  section,  the basis of the property received
shall be the same as it  would  be  in  the  hands  of  the  transferror
determined in accordance with the provisions of section fourteen of this
part.
§  17.  Inventory.  Whenever in the opinion of the director of finance
the use of inventories is necessary in order clearly  to  determine  the
income  of  any taxpayer, inventory shall be taken by such taxpayer upon
such basis as the director  of  finance  may  prescribe,  conforming  as
nearly as may be to the best accounting practice in the banking business
and most clearly reflecting the income.
§  18.    Net  income defined.   The term "net income" means the gross
income of a taxpayer less the deductions allowed by this subpart.
§ 19.  Computation of net income.  The net income shall be computed in
accordance with the method of accounting regularly employed  in  keeping
the books of such taxpayer; but if no such method of accounting has been
so  employed,  or  if  the  method employed does not clearly reflect the
income, the computation shall be made upon such basis and in such manner
as in the opinion of the director of finance does  clearly  reflect  the
income.    In  determining  net income, war losses, taxation of property
recovered, and basis of property shall be treated in  substantially  the
same  manner  as such losses, recoveries and basis are treated under the
applicable provisions of section  thirteen  hundred  thirty-one  of  the
internal revenue code.
§ 20. Gross income defined. 1. The term "gross income" includes gains,
profits  and  income  derived from the business, of whatever kind and in
whatever form paid, including gains, profits or income from dealings  in
property, whether real or personal, or gains, profits or income received
as compensation for services, as interest, rents, commissions, brokerage
or  other fees, or otherwise in carrying on such business, including all
dividends received on stocks and all  interest  received  from  federal,
state, municipal or other bonds.
2.  If the gross income of a taxpayer is derived from business carried
on  both  within  and  without  the  city,  "gross  income"  means  that
proportion  thereof which is derived from business carried on within the
city, to be allocated and determined on the basis of separate accounting
for each office or branch or, at the election  of  the  taxpayer,  under
rules and regulations prescribed by the director of finance.
3.  "Gross income" of a savings bank shall include the amount received
by it in any taxable year as a distribution in liquidation of the mutual
savings bank fund.
§ 21. Deductions. In computing net income there shall  be  allowed  as
deductions:
1. All the ordinary and necessary expenses paid or incurred during the
year  in  carrying  on  business,  including  a reasonable allowance for
salaries or other compensation for personal services actually  rendered,
and  including  rentals  or  other  payments  required  to  be made as a
condition  to  the  continued use or possession for business purposes of
property to which the taxpayer has not taken or is not taking  title  or
in which such taxpayer has no equity.
2. All interest paid or accrued during the year on indebtedness.
3. Taxes, other than taxes on income or profits paid or accrued within
the  year,  imposed, first, by the authority of the United States, or of
any of its possessions, or, second, by the authority of  any  state,  or
territory, or any county, school district, municipality, or other taxing
subdivisions  of  any  state  or territory, not including those assessed
against local benefits of a kind tending to increase the  value  of  the
property   assessed,   or,  third,  by  the  authority  of  any  foreign
government, or, fourth, under the franchise tax on banking  corporations
imposed by article thirty-two of the tax law, or, fifth, any tax imposed
under this subpart.
4.  Losses  sustained  during  the  year  and  not  compensated for by
insurance or otherwise, if incurred in  business;  unless  in  order  to
clearly  reflect  the  income  the  losses  should in the opinion of the
director of finance be accounted  for  as  of  a  different  period.  No
deduction  shall  be allowed for any loss claimed to have been sustained
in any sale or other disposition of shares of stock or securities  where
it appears that within thirty days before or after the date of such sale
or  other  disposition the taxpayer has acquired substantially identical
property, and the property so acquired is held by the taxpayer  for  any
period  after  such sale or other disposition, unless such claim is made
with respect to a transaction made in the ordinary course  of  business.
If  such  acquisition  is  to  the  extent of part only of substantially
identical property, only a proportionate  part  of  the  loss  shall  be
disallowed.
5.  Debts ascertained to be worthless and charged off within the year;
or in the discretion of the director of finance a reasonable addition to
a reserve for bad debts. When satisfied that a debt is recoverable  only
in  part,  the director of finance may allow such debt to be charged off
in part.
6. A reasonable  allowance  for  the  exhaustion,  wear  and  tear  of
property   used  in  business,  including  a  reasonable  allowance  for
obsolescence. In the case of any such property acquired  before  January
first, nineteen hundred sixty-six, the amount of such deduction shall be
equal to the deduction properly taken for such property in reporting the
tax  due  pursuant  to  article  nine-b  of the tax law. With respect to
property such as described in subdivision twelve of this  section,  this
deduction may be computed and allowed as provided therein.
7.  If the gross income be derived from business carried on within and
without the city, the  deductions  allowed  by  this  section  shall  be
allocated  and  determined  on the basis of separate accounting for each
office or branch or, at the election of the taxpayer,  under  rules  and
regulations to be prescribed by the director of finance.
8.  In the case of any taxpayer who establishes or maintains a pension
trust  to  provide  for  the  payment  of  reasonable  pensions  to  its
employees,  there  shall  be  allowed as a deduction (in addition to the
contributions to such trust during the taxable year to cover the pension
liability accruing  during  the  year,  allowed  as  a  deduction  under
subdivision one of this section) a reasonable amount transferred or paid
into such trust during the taxable year in excess of such contributions,
but  only  if  such  amount  (a) has not theretofore been allowable as a

deduction, and (b) is apportioned in equal parts over a  period  of  ten
consecutive  years  beginning  with  the  year  in which the transfer or
payment is made, or, under  regulations  of  the  director  of  finance,
covers  not  more  than  one-tenth  of  the total pension liability with
respect to services rendered prior to such taxable year;  provided  that
said  deduction  shall  be allowable only with respect to a taxable year
(whether the year of the transfer or payment or a  subsequent  year)  of
the  taxpayer  ending  within  or  with a taxable year of the trust with
respect to which the trust, by reason of its purposes or activities,  is
exempt from federal income tax.
9.  The  amount of the amortizable bond premium on a bond for the year
shall be allowed as a deduction as hereinafter  provided.  In  computing
such  deduction,  (a) the amount of the bond premium shall be determined
with reference to the amount of the basis (for determining loss on  sale
or  exchange)  of such bond, and with reference to the amount payable on
maturity or on earlier call date, with  adjustments  proper  to  reflect
unamortized  bond premium with respect to the bond, for the period prior
to the date as of which this subdivision becomes applicable with respect
to the taxpayer with respect to such bond, and (b) the amortizable  bond
premium of the year shall be the amount of the bond premium attributable
to such year. The determination required in the preceding sentence shall
be  made  in  accordance  with  the  method  of  amortizing bond premium
regularly employed by the  holder  of  such  bond,  if  such  method  is
reasonable, and in all other cases in accordance with regulations of the
director  of  finance  prescribing reasonable methods of amortizing bond
premium. This subdivision shall apply only  if  the  taxpayer  shall  so
elect,  in  accordance  with regulations of the director of finance, and
such election shall be made separately with respect to  (1)  bonds,  the
interest  of  which  is  wholly  taxable, and (2) bonds, the interest of
which is wholly or partially tax exempt, for purposes of the income  tax
imposed by chapter one of the internal revenue code. If such election is
made  with  respect to any bond of the taxpayer described in clauses one
or two hereof, it shall also apply to all bonds in the same  class  held
by the taxpayer at the beginning of the first year to which the election
applies  and  to  all  such bonds thereafter acquired by it and shall be
binding for all subsequent years with respect to all such bonds  of  the
taxpayer,  unless, upon the application by the taxpayer, the director of
finance permits the taxpayer, subject to such conditions as the director
of finance deems necessary, to revoke such election.   As used  in  this
subdivision   the  term  "bond"  means  any  bond,  debenture,  note  or
certificate or other evidence of indebtedness, issued by any corporation
and  bearing  interest  (including  any  like  obligation  issued  by  a
government  or  political subdivision thereof), with interest coupons or
in registered form, but does  not  include  any  such  obligation  which
constitutes  stock  in trade of the taxpayer or any such obligation of a
kind which would properly be included in the inventory of  the  taxpayer
if  on hand at the close of the year, or any such obligation held by the
taxpayer primarily for sale to customers in the ordinary course  of  its
trade or business.
10.  In  the  case of a savings bank and savings and loan association,
amounts paid or  credited  to  depositors  or  holders  of  accounts  as
interest  or  dividends  on  their deposits or withdrawable accounts, if
such amounts are withdrawable on demand subject only to customary notice
of intention to withdraw.
11. A savings bank and savings and loan association may deduct in  any
taxable year the amount of the repayment of any loan or advance from the
mutual  savings  bank fund in computing its net income and the amount of

interest or dividends subject to the minimum tax under subdivision three
of section twelve.
12.  (a)  At the election of the taxpayer there shall be deducted from
gross income, or if gross income is derived  from  business  carried  on
within  and without this city, from the portion thereof allocated within
the city, depreciation with respect to any property such as described in
paragraph (b) of this subdivision, not exceeding twice the  depreciation
allowed  with  respect  to  the  same  property  for  federal income tax
purposes.
(b) Such deduction shall be allowed  only  with  respect  to  tangible
property   which   is   depreciable  pursuant  to  section  one  hundred
sixty-seven of the internal revenue code, having a situs  in  this  city
and   used   in   the   taxpayer's   business,   (i)  the  construction,
reconstruction  or  erection  of  which  is  completed  after   December
thirty-first, nineteen hundred sixty-five, and then only with respect to
that portion of the basis thereof which is properly attributable to such
construction,  reconstruction  or  erection after December thirty-first,
nineteen  hundred  sixty-five,   or   (ii)   acquired   after   December
thirty-first,  nineteen  hundred  sixty-five,  by purchase as defined in
section one hundred seventy-nine (d) of the internal  revenue  code,  if
the original use of such property commenced with the taxpayer, commenced
in this city and commenced after such date.
(c)  If  the deduction allowable for any taxable year pursuant to this
subdivision exceeds the  taxpayer's  net  income  computed  without  the
allowance  of  such deduction and without the allowance of any deduction
pursuant to subdivision six of this section with references to the  same
property,  the  excess may be carried over to the following taxable year
or years and may be deducted in computing net income for  such  year  or
years.
(d)  In  any  taxable year when property is sold or otherwise disposed
of, with respect to which a deduction has been allowed pursuant to  this
subdivision, the gain or loss thereon shall be computed by adjusting the
basis  of such property to reflect the deductions so allowed, and if the
taxpayer's gross income is derived from business carried on both  within
and  without  the  city,  shall  be allocated within the city. Provided,
however, that no loss shall be  recognized  for  the  purposes  of  this
paragraph  with  respect to a sale or other disposition of property to a
person whose acquisition thereof is not a purchase as defined in section
one hundred seventy-nine (d) of the internal revenue code.
§ 22. Items not deductible. In computing net income no deduction shall
in any case be allowed in respect of:
(a)  Any  amount  paid  out  for  new  buildings  or   for   permanent
improvements or betterments made to increase the value of any property.
(b)  Any  amount  expended in restoring property or in making good the
exhaustion thereof for which an allowance is or has been made.
SUBPART 2
TAX ON NATIONAL BANKING ASSOCIATIONS
AND PRODUCTION CREDIT ASSOCIATIONS
§ 23. Imposition of tax. 1. Pursuant to  the  authority  conferred  by
section fifty-two hundred nineteen of the United States revised statutes
and  in  conformity  with  the  provisions contained in subdivision c of
clause one of such section, every national banking association organized
under authority of the United States and located within the city,  shall
annually  pay  a  tax,  measured  by  its net income, to be computed, as
provided in this subpart, at the rate of four and  one-half  per  centum
except  that  for  the  year  nineteen  hundred  seventy-one  and  those
following, as an alternative, at the rate of five  and  sixty-three  one
hundredths per centum, upon the basis of its net income for the calendar

year  next  preceding the date when such tax becomes due. Such tax shall
be for the calendar year next preceding the year  in  which  it  becomes
due;  except that with respect to national banking associations required
to  file  a declaration of estimated tax and to make payments on account
of such estimated tax in  accordance  with  the  provisions  of  section
thirty-five  of  this  part, all payments of tax within a calendar year,
whether computed on the basis of net income  for  the  current  calendar
year  or  on  the  basis  of net income for the preceding calendar year,
shall be for the calendar year in which the payments are required to  be
made.  If,  however,  such  a  national  banking  association  shall  be
dissolved between the thirty-first day of December  and  the  succeeding
second  day  of  September,  and shall not become merged or consolidated
with a corporation taxable under subpart one of this part, it shall  pay
a  tax  for  the  period from the thirty-first day of December up to the
time of dissolution equal to that which would have been payable  had  it
not  been dissolved, except that such tax shall be reduced one-third and
an additional one-twelfth for each  month,  or  major  portion  thereof,
prior  to  such  succeeding  second  day of September, during which such
corporation was so dissolved. If such  dissolution  occurs  between  the
fifteenth  day  of  March  and  the second day of September, and if such
corporation shall have filed its return on or before the  fifteenth  day
of  March as required by sections thirty and thirty-two of this part, it
may file a claim for refund as provided in section seventy-eight of this
title, showing any reduction in tax to  which  it  may  be  entitled  as
provided  in  the  preceding sentence; and if it shall be made to appear
that the amount of tax due is less than the amount as  computed  on  the
basis  of  the original return, the director of finance shall adjust the
computation of tax accordingly.  If the amount of  tax  as  so  adjusted
shall  be  less  than  the  amount theretofore paid, the excess shall be
refunded by the comptroller as provided in subdivision  one  of  section
seventy-seven of this title.
1-a.  Notwithstanding  the provisions of subdivision one, for the year
nineteen hundred  seventy-three  and  those  following,  such  city  may
impose,  by  local law, a surtax of fifteen per centum of the percentage
of tax in effect for the year nineteen hundred seventy-two.
2. In the event that the  taxes  imposed  by  this  subpart  shall  be
finally determined to be unconstitutional or invalid for the reason that
they  do  not  conform  with the provisions of section fifty-two hundred
nineteen of the United States revised statutes, then,  in  lieu  of  the
taxes  imposed by the provisions of this subpart, every national banking
association and every production credit association that otherwise would
have been subject to tax under this subpart shall be subject to the  tax
imposed  under part two as of the effective date of part two, and all of
the provisions of part  two,  unless  clearly  inappropriate,  shall  be
applicable except subdivision four of section three; and, in such event,
any  payments  made, reports or returns filed or any act of the director
of finance or of a taxpayer purportedly under this part shall be treated
as though made, filed or done pursuant to part two.
§ 24.    Years  for  which  imposed.    The  tax  imposed  by  section
twenty-three  of  this  part is imposed for each calendar year beginning
with the calendar year nineteen hundred sixty-six.
§ 25. Ascertainment of gain or loss; exchange of property. 1.  For the
purpose of ascertaining the gain derived or loss sustained from the sale
or other disposition of property, real, personal  or  mixed,  the  basis
shall  be the cost thereof, or the inventoried value if the inventory is
made in accordance with section twenty-six of this part.
2. Notwithstanding subdivision one of this section,  with  respect  to
gain derived from the sale or other disposition of any property acquired

prior  to  January  first,  nineteen  hundred sixty-six, except stock in
trade of the taxpayer or other property of a kind which  would  properly
be  included in the inventory of the taxpayer if on hand at the close of
the taxable year, or property held by the taxpayer primarily for sale to
customers  in the ordinary course of its trade or business, and accounts
or notes receivable acquired in the ordinary course of trade or business
from the sale of such stock  in  trade  or  property,  or  for  services
rendered, net income shall not include
(a)  That  portion  of  the  gain  included  in determining net income
pursuant to subdivision one of this section with respect  to  each  such
property, which exceeds
(b)  The amount of gain, if any, that would be included in determining
net income pursuant to subdivision one of this section with  respect  to
each  such property if the basis of such property on the date of sale or
other disposition were equal to its fair market value on January  first,
nineteen  hundred sixty-six, plus or minus all adjustments to basis made
with respect to each such property in computing net income  for  periods
on or after January first, nineteen hundred sixty-six;
provided  that  the  total  adjustment  to  net  income provided by this
subdivision shall not exceed the amount of the taxpayer's net gain  from
the  sale  or  other  disposition  of  all  such property, as determined
pursuant to subdivision one of this section.
3. Upon the sale or exchange of property the amount  of  the  gain  or
loss  shall be determined in the manner prescribed by section fifteen of
this part and the basis of such property  shall  be  determined  in  the
manner prescribed by section sixteen of this part.
4.  In  the  case  of  any bond, with respect to which a deduction for
amortizable bond premium is allowable under paragraph (i) of subdivision
one of section twenty-nine of this part, the basis for determining  gain
or  loss  shall  be  reduced  by  the total amount of such deductions so
allowable.
§ 26. Inventory. Whenever in the opinion of the  director  of  finance
the  use  of  inventories is necessary in order clearly to determine the
income of any taxpayer, inventory shall be taken by such  taxpayer  upon
such  basis  as  the  director  of  finance may prescribe, conforming as
nearly as may be to the best accounting practice in the banking business
and most clearly reflecting the income.
§ 27. Net income defined; computation. The term "net income" means the
gross income of a taxpayer less the deductions allowed by this subpart.
The net income shall be computed in  accordance  with  the  method  of
accounting regularly employed in keeping the books of such taxpayer; but
if  no  such method of accounting has been so employed, or if the method
employed does not clearly reflect the income, the computation  shall  be
made  upon  such  basis  and  in  such  manner  as in the opinion of the
director of finance does clearly reflect the income. In determining  net
income,  war  losses,  taxation  of  property  recovered,  and  basis of
property shall be treated in  substantially  the  same  manner  as  such
losses, recoveries and basis are treated under the applicable provisions
of section thirteen hundred thirty-one of the internal revenue code.
§ 28. Gross income defined. 1. The term "gross income" includes gains,
profit  and  income  derived  from the business, of whatever kind and in
whatever form paid, including gains, profits or income from dealings  in
property,  whether  real  or  personal,  or  gains,  profits,  or income
received as compensation for services, as interest, rents,  commissions,
brokerage  or  other  fees,  or  otherwise in carrying on such business,
including all dividends received on stocks  and  all  interest  received
from federal, state, municipal or other bonds.
2. If the gross income of such an association is derived from business
carried  on  both within and without the city, "gross income" means that
proportion thereof which is derived from business carried on within  the
city, to be allocated and determined on the basis of separate accounting
for  each  office  or  branch or, at the election of the taxpayer, under
rules and regulations prescribed by the director of finance.
§ 29. Deductions. 1. In computing net income there shall be allowed as
deductions:
(a) All the ordinary and necessary expenses paid  or  incurred  during
the  year  in carrying on business, including a reasonable allowance for
salaries or other compensation for personal services actually  rendered,
and  including  rentals  or  other  payments  required  to  be made as a
condition to the continued use or possession for  business  purposes  of
property  to  which the taxpayer has not taken or is not taking title or
in which such taxpayer has no equity;
(b) All interest paid or accrued during the year on indebtedness;
(c) Taxes, other than taxes on  income  or  profits  paid  or  accrued
within  the year, imposed, first, by the authority of the United States,
or of any of its possessions, or, second, by the authority of any state,
or territory, or any county, school  district,  municipality,  or  other
taxing  subdivisions  of  any  state  or  territory, not including those
assessed against local benefits of a kind tending to increase the  value
of  the  property  assessed,  or, third, by the authority of any foreign
government;
(d) Losses sustained during  the  year  and  not  compensated  for  by
insurance  or  otherwise,  if  incurred  in business; unless in order to
clearly reflect the income the losses  should  in  the  opinion  of  the
director  of  finance  be  accounted  for  as  of a different period. No
deduction shall be allowed for any loss claimed to have  been  sustained
in  any sale or other disposition of shares of stock or securities where
it appears that within thirty days before or after the date of such sale
or other disposition the taxpayer has acquired  substantially  identical
property,  and  the property so acquired is held by the taxpayer for any
period after such sale or other disposition, unless such claim  is  made
with  respect  to a transaction made in the ordinary course of business.
If such acquisition is to the  extent  of  part  only  of  substantially
identical  property,  only  a  proportionate  part  of the loss shall be
disallowed;
(e) Debts ascertained to be worthless and charged off within the year;
or in the discretion of the director of finance a reasonable addition to
a reserve for bad debts. When satisfied that a debt is recoverable  only
in  part,  the director of finance may allow such debt to be charged off
in part;
(f) A reasonable allowance  for  the  exhaustion,  wear  and  tear  of
property   used  in  business,  including  a  reasonable  allowance  for
obsolescence. In the case of any such property acquired  before  January
first, nineteen hundred sixty-six, the amount of such deduction shall be
equal to the deduction properly taken for such property in reporting the
tax  due  pursuant  to  article  nine-c  of the tax law. With respect to
property such as described in paragraph (j) of  this  subdivision,  this
deduction may be computed and allowed as provided therein;
(g) If the gross income be derived from business carried on within and
without  the  city,  the  deductions  allowed  by  this section shall be
allocated and determined on the basis of separate  accounting  for  each
office  or  branch  or, at the election of the taxpayer, under rules and
regulations to be prescribed by the director of finance;
(h) In the case of  any  taxpayer,  who  establishes  or  maintains  a
pension  trust  to provide for the payment of reasonable pensions to its

employees, there shall be allowed as a deduction  (in  addition  to  the
contributions to such trust during the taxable year to cover the pension
liability  accruing  during  the  year,  allowed  as  a  deduction under
paragraph  (a)  of  this subdivision) a reasonable amount transferred or
paid into  such  trust  during  the  taxable  year  in  excess  of  such
contributions,  but  only  if  such  amount (1) has not theretofore been
allowable as a deduction, and (2) is apportioned in equal parts  over  a
period  of  ten  consecutive  years beginning with the year in which the
transfer or payment is made;  provided  that  said  deduction  shall  be
allowable  only  with respect to a taxable year (whether the year of the
transfer or payment or a subsequent year) of the taxpayer ending  within
or  with a taxable year of the trust with respect to which the trust, by
reason of its purposes or activities is exempt from federal income tax;
(i) The amount of the amortizable bond premium on a bond for the  year
shall  be  allowed  as a deduction as hereinafter provided. In computing
such deduction, (a) the amount of the bond premium shall  be  determined
with  reference to the amount of the basis (for determining loss on sale
or exchange) of such bond, and with reference to the amount  payable  on
maturity  or  on  earlier  call date, with adjustments proper to reflect
unamortized bond premium with respect to the bond, for the period  prior
to  the  date as of which this paragraph becomes applicable with respect
to the taxpayer with respect to such bond, and (b) the amortizable  bond
premium of the year shall be the amount of the bond premium attributable
to  such  year.  The  determinations  required in the preceding sentence
shall be made in accordance with the method of amortizing  bond  premium
regularly  employed  by  the  holder  of  such  bond,  if such method is
reasonable, and in all other cases in accordance with regulations of the
director of finance prescribing reasonable methods  of  amortizing  bond
premium. This paragraph shall apply only if the taxpayer shall so elect,
in  accordance  with  regulations  of  the director of finance, and such
election shall be  made  separately  with  respect  to  (1)  bonds,  the
interest  of  which  is  wholly  taxable, and (2) bonds, the interest of
which is wholly or partially tax exempt, for purposes of the income  tax
imposed by chapter one of the internal revenue code. If such election is
made  with  respect to any bond of the taxpayer described in clauses one
or two hereof, it shall also apply to all bonds in the same  class  held
by the taxpayer at the beginning of the first year to which the election
applies  and  to  all  such bonds thereafter acquired by it and shall be
binding for all subsequent years with respect to all such bonds  of  the
taxpayer,  unless,  upon  application  by  the taxpayer, the director of
finance permits the taxpayer, subject to such conditions as the director
of finance deems necessary, to revoke such election.  As  used  in  this
paragraph,   the  term  "bond"  means  any  bond,  debenture,  note,  or
certificate or other evidence of indebtedness, issued by any corporation
and  bearing  interest  (including  any  like  obligation  issued  by  a
government  or  political subdivision thereof), with interest coupons or
in registered form, but does  not  include  any  such  obligation  which
constitutes  stock  in trade of the taxpayer or any such obligation of a
kind which would properly be included in the inventory of  the  taxpayer
if  on hand at the close of the year, or any such obligation held by the
taxpayer primarily for sale to customers in the ordinary course  of  its
trade or business; and
(j)  (1)  At the election of the taxpayer there shall be deducted from
gross income, or if gross income is derived  from  business  carried  on
within  and without this city, from the portion thereof allocated within
the city, depreciation with respect to any property such as described in
subparagraph (2) of this paragraph, not exceeding twice the depreciation

allowed with respect  to  the  same  property  for  federal  income  tax
purposes.
(2)  Such  deduction  shall  be  allowed only with respect to tangible
property  which  is  depreciable  pursuant  to   section   one   hundred
sixty-seven  of  the  internal revenue code, having a situs in this city
and  used  in   the   taxpayer's   business,   (i)   the   construction,
reconstruction   or  erection  of  which  is  completed  after  December
thirty-first, nineteen hundred sixty-five, and then only with respect to
that portion of the basis thereof which is properly attributable to such
construction, reconstruction or erection  after  December  thirty-first,
nineteen   hundred   sixty-five,   or   (ii)   acquired  after  December
thirty-first, nineteen hundred sixty-five, by  purchase  as  defined  in
section  one  hundred  seventy-nine (d) of the internal revenue code, if
the original use of such property commenced with the taxpayer, commenced
in this city and commenced after such date.
(3) If the deduction allowable for any taxable year pursuant  to  this
subdivision  exceeds  the  taxpayer's  net  income  computed without the
allowance of such deduction and without the allowance of  any  deduction
pursuant  to  paragraph  (f)  of this section with reference to the same
property, the excess may be carried over to the following  taxable  year
or  years  and  may be deducted in computing net income for such year or
years.
(4) In any taxable year when property is sold  or  otherwise  disposed
of,  with respect to which a deduction has been allowed pursuant to this
paragraph, the gain or loss thereon shall be computed by  adjusting  the
basis  of such property to reflect the deductions so allowed, and if the
taxpayer's gross income is derived from business carried on both  within
and  without  the  city,  shall be allocated within the city.  Provided,
however, that no loss shall be  recognized  for  the  purposes  of  this
paragraph  with  respect to a sale or other disposition of property to a
person whose acquisition thereof is not a purchase as defined in section
one hundred seventy-nine (d) of the internal revenue code.
2. In computing net income no deduction shall in any case  be  allowed
in respect of:
(a)   Any   amount  paid  out  for  new  buildings  or  for  permanent
improvements or betterments made to increase the value of any property.
(b) Any amount expended in restoring property or in  making  good  the
exhaustion thereof for which an allowance is or has been made.
§ 30. Administration; procedure; provisions of law applicable. For the
purpose  of  carrying  into  effect  the provisions of this subpart, and
except as otherwise provided in this subpart, income shall be  computed,
gain   or   loss   ascertained,   deductions  made,  apportionments  and
allocations determined, at  the  same  time  and  subject  to  the  same
limitations  and conditions, in so far as practicable, as is provided by
subpart one of this part in relation to the tax imposed by such subpart.
§ 31. Tax on production credit associations. Pursuant to the authority
conferred  by  the  federal  farm  credit  act   of   nineteen   hundred
thirty-three,  every  production  credit association organized under the
authority of the United States and located within  the  city  after  the
stock  held  in it by the federal production credit corporation has been
retired shall annually pay a tax measured by its net income, which shall
be computed in the same manner as the tax imposed upon national  banking
associations  by  section  twenty-three  and  shall  be  subject  to the
provisions of sections twenty-four to thirty inclusive.
SUBPART 3
ADMINISTRATION FOR SUBPARTS 1 AND 2
§ 32.  Taxpayers'  returns.    Every  taxpayer,  on  or  before  March
fifteenth,  nineteen hundred sixty-seven, and annually thereafter, shall

make a return subscribed by the taxpayer and affirmed by him to be  true
under  the  penalties  of  perjury  to  the director of finance, for the
calendar year next preceding, as to the business or that portion of  the
business of such taxpayer the income from which is the basis of taxation
under  this part, except that every trust company and savings bank which
shall become incorporated between the thirty-first day of  December  and
the  succeeding first day of July, shall make its return for such period
on or before September first, and every taxpayer,  other  than  a  trust
company  and  savings  bank,  which shall commence to do business in the
city or become located in the  city,  shall  make  its  return  for  the
calendar  year  in which it commences to do business or becomes located,
on or before the twentieth day of January of the  year  succeeding  such
calendar  year,  and  except  that  every  taxpayer,  other than a trust
company and savings bank, which shall be dissolved, cease to do business
in the city or cease to be located in the city, between the thirty-first
day of December and the succeeding sixteenth day of March and shall  not
become merged or consolidated with another corporation taxable under the
same  subpart,  shall  make  its return for such period on or before the
date of such dissolution, or cessation  of  business,  and  every  trust
company  and savings bank which shall be dissolved, and shall not become
merged or consolidated with another corporation taxable under  the  same
subpart,  shall  make its return, for the period for which it is taxable
under subdivision seven of section twelve of this part on or before  the
date  of such dissolution. Such return shall be in such form and contain
such information as the director of finance may require for the  purpose
of  making  any  computation or otherwise performing its duty under this
part. Such return shall state specifically the  items  of  gross  income
derived  from such business and the deductions allowed by this part, the
net income which is the basis of the tax, and the  amount  of  tax  due.
The  return  shall  be  subscribed  by  the  president,  vice-president,
treasurer, assistant treasurer, chief accounting officer  or  any  other
officer  of  the  taxpayer  duly  authorized so to act. The fact that an
individual's name is signed on the return shall be prima facie  evidence
that such individual is authorized to subscribe and affirm the return on
behalf  of  the corporation. Blank forms of return shall be furnished by
the director of finance upon application, but failure to secure the form
shall not relieve any taxpayer from the obligation of making any  return
herein  required.  An automatic extension of three months for the filing
of its annual return shall be allowed any taxpayer if, within  the  time
prescribed  herein  for the filing thereof, such taxpayer files with the
director of finance an application for extension in  such  form  as  the
director  of  finance  may prescribe by regulation and pays on or before
the date of such filing the amount properly estimated as  its  tax.  The
director  of finance may grant a reasonable extension of time for filing
a return, which may be in addition to any  automatic  extension  allowed
under the preceding sentence, whenever in its judgment good cause exists
and shall keep a record of every such extension and the reason therefor.
No  such extension or extensions shall aggregate more than three months,
exclusive of any automatic extension.
If the amount of taxable income  for  any  year  of  any  taxpayer  as
returned  to  the  United  States  treasury  department  is  changed  or
corrected by the commissioner of internal revenue or  other  officer  of
the  United  States  or  other  competent  authority,  or if a taxpayer,
pursuant to subsection (d) of section sixty-two hundred thirteen of  the
internal  revenue  code, executes a notice of waiver of the restrictions
provided in subsection (a) of said section, such taxpayer  shall  report
such change or corrected taxable income or such execution of such notice
of  waiver  and the changes or corrections of his federal taxable income

on which it is based, within ninety days after  such  execution  or  the
final  determination of such change or correction, or on its next return
under this part, or as required by the director of  finance,  and  shall
concede  the  accuracy  of  such  determination  or  state wherein it is
erroneous. Any taxpayer filing an amended return  with  such  department
shall also file within ninety days thereafter an amended return with the
director  of  finance  which  shall contain such information as it shall
require.
§ 33. Consolidated returns.  Corporations which are affiliated may, if
authorized, and shall, if required, by the director  of  finance,  under
regulations  prescribed  by the director of finance, make a consolidated
return for the purpose of this part. In any  case  in  which  a  tax  is
assessed upon the basis of a consolidated return, the total tax shall be
computed in the first instance as a unit and shall then be assessed upon
the  respective  affiliated  corporations  in such proportions as may be
agreed upon among them, or in the absence of any such agreement, then on
the basis of the net income properly assignable to each.
§ 34. Payment of tax. Each taxpayer shall, at the time of  filing  its
return, pay to the director of finance
(a)  the amount of tax payable hereunder as the same shall appear from
the face of the return, or
(b) if payments of estimated tax have been made  pursuant  to  section
thirty-five  of  this  part,  the  balance,  if  any, of the tax payable
hereunder, as the same shall appear from the face of the  return,  after
applying thereto any payments made pursuant to said section.
If  the time for filing the return shall be extended, the taxpayer shall
pay in addition interest at the rate of six percentum per annum from the
time when the return was originally required to be filed to the time  of
payment upon the amount by which the tax, or the portion thereof payable
when the return was required to be filed, exceeds the amount then paid:
(1)  a  payment made on or before the date of filing of an application
for an automatic extension shall be deemed properly estimated if  it  is
either  (A)  not  less  than  ninety  percentum  of  the  tax as finally
determined, or (B) not less than the tax shown on the taxpayer's  return
for  the  preceding  taxable  year, if such preceding year was a taxable
year of twelve months; and
(2) the time when a return is required to be filed shall be determined
without regard to any extension of time for filing such return.
§ 35. Declaration of estimated tax; payments on account  of  estimated
tax.    1.  Every taxpayer subject to the tax imposed by this part shall
make a declaration of the estimated tax upon the basis of its net income
for the current  calendar  year,  containing  such  information  as  the
director  of  finance  may  prescribe by regulations or instructions, if
such estimated tax can reasonably be expected  to  exceed  one  thousand
dollars.
2.  The  term  "estimated  tax"  means  the  amount  which  a taxpayer
estimates to be the tax imposed by this part upon the basis of  its  net
income for the current calendar year, less the amount which it estimates
to be the sum of any credits allowable against the tax.
3.  A  declaration  of  estimated tax shall be filed on or before June
fifteenth of the calendar year upon the net income of which the  tax  is
based, except that if the requirements of subdivision one are first met:
(a)  after June first and before October second of such calendar year,
the declaration shall be filed on or before October fifteenth, or
(b) after October first of such calendar year, the  declaration  shall
be filed on or before January fifteenth of the succeeding calendar year.
Notwithstanding   any   other   provision   of  this  subdivision,  no
declaration need be filed prior to the sixtieth day after the date  this
title becomes effective.
4.  A  taxpayer  may  amend  a  declaration  under  regulations of the
director of finance.
5. If, on or before February  fifteenth  of  the  succeeding  year,  a
taxpayer  files  its return for the calendar year upon the net income of
which the declaration is required to be based, and  pays  therewith  the
balance,  if  any,  of the full amount of the tax shown to be due on the
return,
(a)  such  return  shall  be  considered  as  its  declaration  if  no
declaration  was  required to be filed during such calendar year, but is
otherwise required to be filed on or before  January  fifteenth  of  the
succeeding year pursuant to subdivision three,
(b)  such  return  shall  be  considered  as an amendment permitted by
subdivision four to be filed on or before January fifteenth if  the  tax
shown  on  the  return  is  greater  than  the  estimated tax shown on a
declaration previously made.
6. The director of finance may grant a reasonable extension  of  time,
not  to  exceed three months, for the filing of any declaration required
pursuant to this section,  on  such  terms  and  conditions  as  he  may
require.
7.  Every  taxpayer  subject to the tax imposed by this part shall pay
with the return of tax, if any, required to be filed upon the  basis  of
its  net  income for the preceding calendar year, or with an application
for extension of the time for filing such return,  an  amount  equal  to
twenty-five  per  centum  of the preceding year's tax, if such preceding
year's tax exceeded one thousand dollars.
8. The estimated tax with respect to  which  a  declaration  for  such
calendar  year  is  required  pursuant  to this section shall be paid as
follows:
(a) If the declaration is filed  on  or  before  June  fifteenth,  the
estimated  tax shown thereon, after applying thereto the amount, if any,
paid during the same calendar year pursuant to subdivision seven,  shall
be  paid  in three equal installments. One of such installments shall be
paid at the time of the filing of the declaration, one shall be paid  on
the  following  October  fifteenth,  and  one  on  the following January
fifteenth.
(b) If the declaration is filed after June  fifteenth  and  not  after
October fifteenth of such calendar year, and is not required to be filed
on  or  before  June  fifteenth of such calendar year, the estimated tax
shown on such declaration, after applying thereto the  amount,  if  any,
paid  during the same calendar year pursuant to subdivision seven, shall
be paid in two equal installments. One of  such  installments  shall  be
paid  at the time of the filing of the declaration and one shall be paid
on the following January fifteenth.
(c) If the declaration  is  filed  after  October  fifteenth  of  such
calendar  year,  and  is  not  required to be filed on or before October
fifteenth of such  calendar  year,  the  estimated  tax  shown  on  such
declaration,  after applying thereto the amount, if any, paid in respect
of such calendar year pursuant to subdivision seven, shall  be  paid  in
full at the time of the filing of the declaration.
(d) If the declaration is filed after the time prescribed therefor, or
after  the  expiration of any extension of time therefor, paragraphs (b)
and (c) of this subdivision shall not apply, and there shall be paid  at
the  time of such filing all installments of estimated tax payable at or
before such time, and the remaining installments shall be  paid  at  the

times  at  which,  and  in  the  amounts  in which, they would have been
payable if the declaration had been filed when due.
9.  If  any  amendment  of  a  declaration  is  filed,  the  remaining
installments, if any, shall be ratably increased or  decreased  (as  the
case may be) to reflect any increase or decrease in the estimated tax by
reason  of  such  amendment,  and if any amendment is made after October
fifteenth of the calendar year, any increase in  the  estimated  tax  by
reason thereof shall be paid at the time of making such amendment.
10.  Any  amount  paid  pursuant to subdivision seven shall be applied
after payment as a first installment against the estimated  tax  of  the
taxpayer  shown on the declaration next required to be filed pursuant to
this section or, if no declaration of estimated tax is  required  to  be
filed by the taxpayer pursuant to this section, any such amount shall be
considered  a  payment  on account of the tax shown on the return of tax
required to be filed by the taxpayer upon the basis of  its  net  income
for the calendar year during which such amount was paid.
11.  Notwithstanding  the  provisions  of section seventy-nine of this
title or of section three-a of the general municipal law, if any  amount
paid  pursuant to subdivision seven, exceeds the tax shown on the return
required to be filed by the taxpayer upon the basis of  its  net  income
for  the  calendar year during which the amount was paid, interest shall
be allowed and paid on the amount by which the amount so  paid  pursuant
to  such subdivision exceeds such tax, at the rate of six per centum per
annum from the date of payment of the amount so paid  pursuant  to  such
subdivision   to  March  fifteenth  of  the  succeeding  calendar  year,
provided, however, that no interest shall be allowed or paid under  this
subdivision if the amount thereof is less than one dollar.
12.  As used in this section, "the preceding year's tax" means the tax
imposed upon the taxpayer by this part upon the basis of its net  income
for the preceding calendar year, or, for purposes of computing the first
installment  of  estimated  tax  when  an application has been filed for
extension of time for filing the return required to be  filed  for  such
preceding  calendar  year,  the  amount  properly  estimated pursuant to
section thirty-four of this part as the tax imposed upon  the  basis  of
its net income for such calendar year.
13.  This  section shall apply to an income period of less than twelve
months in accordance with regulations of the director of finance.
14. The director of finance may grant a reasonable extension of  time,
not  to  exceed  six months, for payment of any installment of estimated
tax required pursuant to this section, on such terms and  conditions  as
he  may require, including the furnishing of a bond or other security by
the taxpayer in an amount not exceeding twice the amount for  which  any
extension of time for payment is granted, provided however that interest
at  the rate of six per centum per annum for the period of the extension
shall be charged and collected on the amount for which any extension  of
time for payment is granted under this subdivision.
15. A taxpayer may elect to pay any installment of estimated tax prior
to the date prescribed in this section for payment thereof.
§  36.    Real  property  taxable.      Nothing  in this part shall be
construed to exempt the real property of any taxpayer from  taxation  to
the  same  extent,  according  to  its  value, as other real property is
taxed.
PART V
TRANSPORTATION CORPORATION TAX
§ 61. Tax on transportation corporations and  associations.    1.  The
term  "corporation"  as  used  in  this  part shall include any business
conducted by a trustee or trustees  wherein  interest  or  ownership  is
evidenced by certificates or other written instruments.
2.  For  the privilege of doing business or of holding property in the
city every corporation, joint stock company or association formed for or
principally engaged in the conduct of aviation, steamboat, ferry (except
a ferry company operating between any of the boroughs of the city  under
a  lease  granted by the city), or navigation business, or formed for or
principally engaged in the conduct of two or more  of  such  businesses,
except  a  corporation,  joint  stock  company or association subject to
taxation under a local law of the city imposed on utilities and  vendors
of utility services, shall pay, in advance, an annual tax to be computed
upon the basis of the amount of its capital stock within the city during
the preceding year, and upon each dollar of such amount.
3.  The  measure of the amount of capital stock in the city, except as
hereinafter provided, shall be such a  portion  of  the  issued  capital
stock as the gross assets, exclusive of obligations issued by the United
States  and cash on hand and on deposit, employed in any business within
the city, bear to the gross assets, exclusive of obligations  issued  by
the  United States and cash on hand and on deposit, wherever employed in
business. Provided, however, that in the case of a  corporation  taxable
hereunder  only for the privilege of holding property, the measure shall
be such a portion of the issued  capital  stock  as  the  gross  assets,
exclusive  of  obligations  issued by the United States and cash on hand
and on deposit, located within the  city,  bear  to  the  gross  assets,
exclusive  of  obligations  issued by the United States and cash on hand
and on deposit, wherever located. The capital of a corporation  invested
in the stock of another corporation shall be deemed to be assets located
where  the  assets  of  the  issuing  corporation,  other  than patents,
copyrights, trademarks, contracts and good will, are located.
4. Every corporation, joint stock company or  association  subject  to
taxation  under this section shall, in any event, pay annually a minimum
tax of not less than ten dollars nor less than one mill on  each  dollar
of  such  a  portion of the net value of its issued capital stock, which
net value for the purposes of this section shall be  deemed  to  be  not
less  than five dollars per share, as may be determined upon such of the
bases herein provided for the measurement thereof as is applicable.  The
term  "net value" as used in this section shall be construed to mean not
less than the difference between a corporation's assets and liabilities,
and not less than the average price at which such stock sold during  the
year covered by the report which forms the basis for the tax. But if the
dividends  paid on the par value of any kind of capital stock during any
year ending with the thirty-first day of December amount to six or  more
than six per centum, the tax upon such kind of capital stock shall be at
the  rate  of one-quarter of a mill for each one per centum of dividends
paid and shall be computed upon the par value  of  such  capital  stock,
unless  such a tax be less than the minimum tax hereinbefore provided in
this section and the director of finance shall, for such purpose, make a
fair and equitable apportionment of the assets of the corporation, joint
stock company or association, between or among the  different  kinds  of
stock.
5.  If such corporation, joint stock company or association shall have
more than one kind of capital stock, and upon one of such kinds of stock
a dividend or dividends amounting to six or more  than  six  per  centum
upon  the  part  value  thereof,  has  been  paid, and upon the other no
dividend has been paid, or the dividend or dividends paid thereon amount
to less than six per centum upon the par value  thereof,  then  the  tax
shall be fixed upon each kind as hereinbefore provided.
6. The dividend rate for a corporation having stock without nominal or
par  value shall be determined by dividing the amount paid as a dividend
or dividends during the year by the amount paid in on such stock and, if

the rate is six per centum or more, the rate of one-quarter  of  a  mill
for each one per centum of dividends shall be applied to the amount paid
in  on  such  stock,  unless  such  tax  be  less  than  the minimum tax
hereinbefore  in this section provided for. Any consideration given by a
corporation for  the  purchase  of  its  own  stock  in  excess  of  the
consideration  received  by  it for the issuance of such stock shall for
the purposes of this section, be considered as a dividend.
7. The owning or holding in the city by any corporation  of  property,
other than property exclusively in interstate or foreign commerce, shall
constitute  carrying  on  business  within the city within the intent of
this section, except that a corporation having no property in  the  city
other  than  a  bank  balance or stocks or bonds, or one of more of such
kinds of property, either held for safe keeping or pledged as collateral
security shall not be taxable under this section, and  further  provided
that  any  corporation  having only office furniture or fixtures, a bank
balance, and stocks or bonds pledged as collateral  security  or  merely
deposited for safe keeping, shall not be taxable under this section.
8.  The  measure  of  the  amount  of  capital stock in the city of an
aviation corporation shall be a portion  of  the  issued  capital  stock
determined by applying thereto the arithmetical average of the following
three  ratios:  (a) the ratio which the aircraft arrivals and departures
within the city scheduled by any such corporation during  the  preceding
calendar  year bear to the total aircraft arrivals and departures within
and without the city scheduled by it during the  same  period,  provided
that in the case of non-scheduled operations all arrivals and departures
shall  be  substituted  for  scheduled  arrivals and departures; (b) the
ratio which the revenue tons handled by  such  corporation  at  airports
within  the  city  during  the  preceding  calendar  year bear the total
revenue tons handled by it at  airports  within  and  without  the  city
during  the  same  period;  and  (c)  the ratio which such corporation's
originating revenue within the city  for  the  preceding  calendar  year
bears  to  its total originating revenue within and without the city for
the same period. As used in this section, the  term  "aircraft  arrivals
and  departures"  means the number of scheduled landings and takeoffs of
the aircraft of an aviation corporation, and the number of scheduled air
pickups and deliveries by the aircraft of such corporation, and  in  the
case   of  non-scheduled  operations  shall  include  all  landings  and
takeoffs, pickups and deliveries; the term "originating  revenue"  means
revenue  to  any  such  corportion  from  the  transportation of revenue
passengers and revenue  property  first  received  by  such  corporation
either  as  originating  or connecting traffic at airports; and the term
"revenue tons handled" by any such corportion at an  airport  means  the
weight  in  tons  of  revenue  passengers  (at  two  hundred  pounds per
passenger) and revenue cargo first received  either  as  originating  or
connecting  traffic  or  finally  discharged by such corporation at such
airport.
9. The measure of the capital stock  in  the  city  of  a  corporation
engaged  in  the  operation of vessels in foreign commerce shall be such
portion of the issued capital stock as the aggregate number  of  working
days  in territorial waters of the city of all such vessels bears to the
aggregate number of working days of all such vessels. The dividend  rate
for  such  a corporation shall be determined by dividing the amount paid
as a dividend or dividends on all classes of stock during  the  year  by
the  amount  of  paid-in  capital  and, if the rate is six per centum or
more, the rate of one-quarter of a mill  for  each  one  per  centum  of
dividends shall be applied to the amount of such paid-in capital.
§  62. Additional tax on transportation corporations and associations.
Every corporation, joint-stock company  or  association  formed  for  or

principally engaged in the conduct of aviation, steamboat, ferry (except
a  ferry company operating between any of the boroughs of the city under
a lease granted by the city), or navigation business or  formed  for  or
principally  engaged  in  the conduct of two or more of such businesses,
except a corporation, joint-stock  company  or  association  subject  to
taxation under a local law of the city, imposed on utilities and vendors
of  utility  services,  shall  pay  for the privilege of carrying on its
business in the city, a tax which shall be equal to five-tenths  of  one
per  centum  upon  its  gross earnings from all sources within the city,
excluding earnings derived from  business  of  a  character  other  than
wholly intra-city. Provided, however, gross earnings from transportation
business both originating and terminating within the city and traversing
both  the  city  and  any other city, any state or states or any country
shall be subject to the tax imposed by this section  and  such  earnings
shall be allocated to the city in the same ratio that the mileage within
the city bears to the total mileage of such business.
§  63.  Receivers,  etc., conducting corporate business. Any receiver,
liquidator, referee, trustee, assignee, or other fiduciary or officer or
agent  appointed  by  any  court,  who  conducts  the  business  of  any
corporation,  joint stock company or association shall be subject to the
tax or taxes imposed by this part in the same manner  and  to  the  same
extent  as  if  the business were conducted by the agents or officers of
such corporation, joint stock  company  or  association.    A  dissolved
corporation,  joint  stock  company  or  association  which continues to
conduct business shall also be subject to the tax imposed by this part.
§ 64. Service  of  process;  limitation  of  time.  1.  Every  foreign
corporation (other than a moneyed corporation) subject to the provisions
of  this  part,  except  a corporation having a certificate of authority
under section two hundred twelve  of  the  general  corporation  law  or
having  authority  to  do business by virtue of section thirteen hundred
five of the business corporation law, shall file in  the  department  of
state  a  certificate  of  designation in its corporate name, signed and
acknowledged by its president or  vice-president  or  its  secretary  or
treasurer,  under its corporate seal, designating the secretary of state
as its agent upon whom process in any action provided for by  this  part
may  be  served within this state, and setting forth an address to which
the secretary of state shall mail a copy of any such process against the
corporation which may be served upon him. In case any  such  corporation
shall  have  failed to file such certificate of designation, it shall be
deemed to have designated the secretary of state as its agent upon  whom
such  process  against  it  may  be  served;  and until a certificate of
designation shall have been filed the corporation  shall  be  deemed  to
have  directed  the  secretary of state to mail copies of process served
upon him to the corporation at its last known office address  within  or
without  the  state. When a certificate of designation has been filed by
such corporation the secretary of state shall  mail  copies  of  process
thereafter served upon him to the address set forth in such certificate.
Any such corporation, from time to time, may change the address to which
the  secretary of state is directed to mail copies of process, by filing
a certificate to that effect executed, signed and acknowledged  in  like
manner  as  a  certificate of designation as herein provided. Service of
process upon any such corporation  or  upon  any  corporation  having  a
certificate of authority under section two hundred twelve of the general
corporation  law or having authority to do business by virtue of section
thirteen hundred five of the business corporation  law,  in  any  action
commenced  at  any  time  pursuant to the provisions of this part may be
made by either  (1)  personally  delivering  to  and  leaving  with  the
secretary  of  state,  a  deputy  secretary  of state or with any person

authorized by the secretary of state to receive such  service  duplicate
copies  thereof  at the office of the department of state in the city of
Albany, in which event the secretary of state shall  forthwith  send  by
registered  mail,  return  receipt  requested, one of such copies to the
corporation at the address designated by it or at its last known  office
address within or without the state, or (2) personally delivering to and
leaving with the secretary of state, a deputy secretary of state or with
any person authorized by the secretary of state to receive such service,
a  copy  thereof at the office of the department of state in the city of
Albany and by delivering a copy thereof to, and leaving such copy  with,
the   president,   vice-president,   secretary,   assistant   secretary,
treasurer, assistant treasurer, or cashier of such corporation,  or  the
officer  performing  corresponding  functions  under  another name, or a
director or managing agent of such corporation, personally  without  the
state.  Proof  of such personal service without the state shall be filed
with the clerk of the court in which the action is pending within thirty
days after such service, and such service shall  be  complete  ten  days
after proof thereof is filed.
2.  The provisions of the civil practice law and rules relative to the
limitation of time of enforcing a civil remedy shall not  apply  to  any
proceeding  or  action  taken  to  levy,  appraise, assess, determine or
enforce the collection of any tax or penalty prescribed by this part  or
part six of this title, provided, however, that as to real estate in the
hands  of persons who are owners thereof who would be purchasers in good
faith but for such tax or penalty and as to the lien on real  estate  of
mortgages held by persons who would be holders thereof in good faith but
for  such tax or penalty, all such taxes and penalties shall cease to be
a lien on such real estate as against such purchasers or  holders  after
the  expiration  of  ten  years  from the date such taxes became due and
payable. The limitations herein provided for  shall  not  apply  to  any
transfer  from  a  corporation to a person or corporation with intent to
avoid payment of any taxes, or where with like intent  the  transfer  is
made  to  a  grantee  corporation, or any subsequent grantee corporation
controlled by such grantor or which has any community of  interest  with
it, either through stock ownership or otherwise.
§  65.    Exemption  of  Corporations  Owned  by a Municipality.   The
provisions of this part shall not apply to any corporation  all  of  the
capital  stock  of  which  is  owned  by a municipal corporation of this
state.
§ 66. Reports of Corporations.  Corporations liable to pay a tax under
this part shall report as follows:
1. Every corporation, association or joint stock company liable to pay
a tax under section sixty-one of this part shall,  on  or  before  March
first  in each year, make a written report to the director of finance of
its condition at the close of its business  on  the  preceding  December
thirty-first,  stating  the  amount of its authorized capital stock, the
amount of stock paid-in, the date and rate per centum of  each  dividend
paid  by  it  during the year ending with such day, the entire amount of
the capital of such corporation, and the capital employed by it  in  the
city during such year.
2. Every corporation, joint stock company or association liable to pay
an additional tax under section sixty-two of this part shall also, on or
before  February fifteenth, May fifteenth, August fifteenth and November
fifteenth in each year, make a written report to the director of finance
of the amount of its gross earnings subject to the tax imposed  by  said
section  for  the quarter year ended on the last day of the second month
preceding that in which the report is required to  be  filed.  Any  such
corporation,  joint  stock  company  or  association  which ceases to be

subject to the tax imposed by section sixty-two of this part  by  reason
of  a  liquidation,  dissolution, merger or consolidation with any other
corporation, or any other cause, shall, on the date of such cessation or
at  such  other  time  as  the  director  of finance may require, make a
written report to the director of finance of the  amount  of  its  gross
earnings  subject  to  the tax imposed by section sixty-two of this part
for any period for which no report was theretofore filed.
3. The director of finance may for good cause shown  extend  the  time
within which any corporation is required to report by this part.
4.  Every  report  required  by this part shall have annexed thereto a
certification by the  president,  vice-president,  treasurer,  assistant
treasurer,  or  chief  accounting  officer  or  any other officer of the
corporation, association or joint stock company duly  authorized  so  to
act,  or  of  the  person  or  one of the persons, or the members of the
partnership making the same, to the effect that the statements contained
therein are true. The fact that an individual's  name  is  signed  on  a
certification  attached  to  a  corporate  report  shall  be prima facie
evidence that such individual is authorized to  certify  the  report  on
behalf  of  the  corporation. Such reports shall contain any other data,
information or matter which the director of finance may  require  to  be
included  therein,  and  it may prescribe the form in which such reports
shall be made. When so prescribed such forms shall be used in making the
report. The director of finance may require at any  time  a  further  or
supplemental report under this part, which shall contain information and
data  upon such matters as the director of finance may specify.  Reports
shall be preserved for five years, and thereafter until the director  of
finance orders them to be destroyed.
§  67. Payment of tax and penalties.  1. The taxes imposed by sections
sixty-one and sixty-two of this part shall be due  and  payable  at  the
time  of  filing  the  report required by section sixty-six, or, in case
such a report is not filed when due, on the last day specified  for  the
filing  thereof,  except  that the tax upon dividends imposed by section
sixty-two of this part shall be due and payable at the  time  of  filing
the report for the period ending June thirtieth, or, in case such report
is not filed when due, on the last day specified for the filing thereof.
2.  Where  an  application  for consent to dissolution, as provided by
section one hundred five of the stock corporation  law  or  section  one
thousand  four  of  the  business  corporation  law,  is  filed with the
director of finance prior to the commencement of any tax year or period,
by a corporation subject to tax under this part, such corporation  shall
not  be  liable for any tax imposed by this part for such following year
or period (except as may be otherwise provided in section  sixty-three),
provided  that  the  certificate  of dissolution for such corporation is
duly filed in the office of the secretary of state  within  twenty  days
after the filing of such application.
3.  Notwithstanding  any other provision of this part, the director of
finance may grant a reasonable extension of time for payment of any  tax
imposed by this part under such conditions as he deems just and proper.
§  68.  Taxable years to which taxes apply.  The taxes imposed by this
part are imposed for each taxable year or period beginning with  taxable
years  or  periods  ending in or with the calendar year nineteen hundred
sixty-six.
§ 69.  First reports for payments for nineteen hundred sixty-six.   If
any  report  under  this  part  is  due  prior  to  sixty days after the
enactment of this title, such report and the payment therewith shall  be
filed and paid within sixty days after the enactment of this title.
PART VI
CORPORATE TAX PROCEDURE AND ADMINISTRATION)
§  71.  Application of part.  1. General.--The provisions of this part
shall apply to the administration of and the procedures with respect  to
the  taxes  imposed  by part two, part three, part four and part five of
this title.
2.  Definitions.--As  used  in  this  part: (a) the term "named parts"
means parts two, three, four and five of this title;
(b) The term "return" means a report or return of tax,  but  does  not
include a declaration of estimated tax;
(c)  The term "corporation" includes a corporation, association, joint
stock company or other entity subject to tax  under  any  of  the  named
parts; and
(d)  The  term  "person" includes a corporation, association, company,
partnership, estate, trust, liquidator, fiduciary  or  other  entity  or
individual liable for the tax imposed by any of the named parts or under
a  duty  to  perform an act under any of the named parts. Upon notice to
the director of finance that any person is acting for any corporation in
a fiduciary capacity, such fiduciary shall assume  the  powers,  rights,
duties and privileges of such corporation in respect of a tax imposed by
any  of  the  named parts (except as otherwise specifically provided and
except that the tax shall be collected from the estate or  other  assets
of  such  corporation  in  the hands of such fiduciary), until notice is
given that the fiduciary capacity has terminated.
§ 72. Notice of Deficiency. 1.  General.--If  upon  examination  of  a
taxpayer's  return,  the  director of finance determines that there is a
deficiency of tax, it may mail a notice of deficiency to  the  taxpayer.
If  a  taxpayer  fails  to file a tax return, the director of finance is
authorized to estimate  the  taxpayer's  city  tax  liability  from  any
information in his possession, and to mail a notice of deficiency to the
taxpayer.  A  notice  of  deficiency  shall  be  mailed  by certified or
registered mail to the taxpayer at its last known address in or  out  of
the  city.  If  the  taxpayer  has terminated its existence, a notice of
deficiency may be mailed to its last known address  in  or  out  of  the
city,  and such notice shall be sufficient for purposes of this part. If
the director of finance has received notice that a person is acting  for
the  taxpayer  in a fiduciary capacity, a copy of such notice shall also
be mailed to the fiduciary named in such notice.
2. Notice of deficiency as assessment.--After  ninety  days  from  the
mailing of a notice of deficiency, such notice shall be an assessment of
the  amount of tax specified in such notice, together with the interest,
additions to tax and penalties stated in such notice,  except  only  for
any  such  tax or other amounts as to which the taxpayer has within such
ninety day period filed with the director of finance  a  petition  under
section  eighty.  If the notice of deficiency is addressed to a taxpayer
whose last known address is outside of the United  States,  such  period
shall be one hundred fifty days instead of ninety days.
3. Restrictions on assessment and levy.--No assessment of a deficiency
in  tax  and  no levy or proceeding in court for its collection shall be
made, begun or prosecuted,  except  as  otherwise  provided  in  section
eighty-five,  until  a  notice  of  deficiency  has  been  mailed to the
taxpayer, nor until the expiration of the time  for  filing  a  petition
contesting  such  notice, nor, if a petition with respect to the taxable
year has been filed with the director of finance, until the decision  of
the  director  of finance has become final. For exception in the case of
judicial review  of  the  decision  of  the  director  of  finance,  see
subdivision three of section eighty-one.
4.  Exceptions  for  mathematical  errors.--If  a  mathematical  error
appears on a return (including an overstatement of the  amount  paid  as
estimated  tax),  the director of finance shall notify the taxpayer that

an amount of tax in excess of that shown upon the  return  is  due,  and
that  such excess has been assessed. Such notice shall not be considered
as a notice of deficiency for the purposes of this section,  subdivision
six of section seventy-eight (limiting credits or refunds after petition
to  the  director  of  finance),  or  subdivision  two of section eighty
(authorizing the filing of a petition with the director of finance based
on a notice of deficiency), nor shall such assessment or  collection  be
prohibited by the provisions of subdivision three of this section.
5. Exception where change in federal taxable income is not reported.--
(a)  If  the  taxpayer  fails to comply with part two or part three of
this title in not reporting a change or correction or renegotiation,  or
computation  or  recomputation  of  tax,  increasing  or  decreasing its
federal taxable income as reported on its federal income tax  return  or
in not reporting a change or correction or renegotiation, or computation
or  a  recomputaton of tax, which is treated in the same manner as if it
were a deficiency for federal income tax purposes or in  not  filing  an
amended  return  or in not reporting the execution of a notice of waiver
executed pursuant to subsection (d) of section six thousand two  hundred
thirteen  of  the  internal revenue code instead of the mode and time of
assessment  provided  for  in  subdivision  two  of  this  section,  the
commissioner  of  finance  may  assess  a  deficiency  based  upon  such
increased or decreased federal taxable income by mailing to the taxpayer
a notice of additional tax due specifying the amount of the  deficiency,
and  such  deficiency,  together with the interest, additions to tax and
penalties stated in such notice, shall be deemed assessed  on  the  date
such  notice  is  mailed  unless within thirty days after the mailing of
such  notice  a  report  of  the  federal  change   or   correction   or
renegotiation,  or  computation  or  recomputation of tax, or an amended
return, where such return was required by part two  or  part  three,  is
filed   accompanied   by   a  statement  showing  wherein  such  federal
determination and such notice of additional tax due are erroneous.
(b) Such notice shall not be considered as a notice of deficiency  for
the  purposes  of this section, subdivision six of section seventy-eight
(limiting credits or refunds after petition to the director of finance),
or subdivision two of  section  eighty  (authorizing  the  filing  of  a
petition  with the director of finance based on a notice of deficiency),
nor shall such assessment or the collection thereof be prohibited by the
provisions of subdivision three of this section.
(c) If  the  taxpayer  has  terminated  its  existence,  a  notice  of
additional  tax due may be mailed to its last known address in or out of
the city, and such notice shall be sufficient for purposes of this part.
If the director of finance has received notice that a person  is  acting
for  the  taxpayer  in a fiduciary capacity, a copy of such notice shall
also be mailed to the fiduciary named in such notice.
6. Waiver of restrictions.--The taxpayer shall at any time (whether or
not a notice of deficiency has been issued) have the right to waive  the
restrictions  on  assessment  and collection of the whole or any part of
the deficiency by a signed notice in writing filed with the director  of
finance.
7.  Two  or more corporations.--In the case of a combined return under
part two or a consolidated return  under  part  three  of  two  or  more
corporations,  the director of finance may determine a deficiency of tax
under part two or part three with respect to the  entire  tax  due  upon
such  return  against  any  taxpayer  included therein. In the case of a
taxpayer which might have been included in such a return under part  two
or  part  three  when  the  tax was originally reported, the director of
finance may determine a deficiency of tax under part two or  part  three

against  such  taxpayer and against any other taxpayers which might have
been included in such a return.
8.  Deficiency defined.--For purposes of this part, a deficiency means
the amount of the tax imposed by the named parts, or any of  them,  less
(a)  the amount shown as the tax upon the taxpayer's return (whether the
return was made or the  tax  computed  by  it  or  by  the  director  of
finance),  and  less  (b)  the amounts previously assessed (or collected
without assessment) as a deficiency and  plus  (c)  the  amount  of  any
rebates. For the purpose of this definition, the tax imposed by part two
or  part  three of this title and the tax shown on the return shall both
be determined without regard to any payment  of  estimated  tax;  and  a
rebate  means so much of an abatement, credit, refund or other repayment
(whether or not erroneous) as was made on the ground  that  the  amounts
entering  into  the definition of a deficiency showed a balance in favor
of the taxpayer.
9. Exception where change or correction of sales and compensating  use
tax liability is not reported.
(a)  If  a taxpayer fails to comply with part two of this title in not
reporting a change or correction of its sales and compensating  use  tax
liability  or  in  not  filing  a  copy  of  an amended return or report
relating to its sales and compensating use tax liability, instead of the
mode and time of assessment provided for  in  subdivision  two  of  this
section,  the commissioner of finance may assess a deficiency based upon
such changed or corrected sales and compensating use tax  liability,  as
same  relates to credits claimed under part two of this title by mailing
to the taxpayer a notice of additional tax due specifying the amount  of
the  deficiency,  and  such  deficiency,  together  with  the  interest,
additions to tax and penalties stated in such notice,  shall  be  deemed
assessed  on  the  date  such notice is mailed unless within thirty days
after the mailing of such  notice  a  report  of  the  state  change  or
correction or a copy of an amended return or report, where such copy was
required  by  part  two,  is  filed  accompanied  by a statement showing
wherein such state determination and such notice of additional  tax  due
are erroneous.
(b)  Such notice shall not be considered as a notice of deficiency for
the purposes of this section, subdivision six of  section  seventy-eight
(limiting  credits  or  refunds  after  petition  to the commissioner of
finance), or subdivision two of section eighty (authorizing  the  filing
of  a  petition  with  the  commissioner of finance based on a notice of
deficiency), nor shall such assessment  or  the  collection  thereof  be
prohibited by the provisions of subdivision three of this section.
(c) If the taxpayer has terminated its existence, notice of additional
tax  due  may be mailed to its last known address in or out of the city,
and such notice shall be sufficient for purposes of this  part.  If  the
commissioner  of finance has received notice that a person is acting for
the taxpayer in a fiduciary capacity, a copy of such notice  shall  also
be mailed to the fiduciary named in such notice.
§  73.  Assessment.  1.  Assessment  date.--The  amount of tax which a
return shows to be due, or the amount of tax which a return  would  have
shown  to  be  due  but  for a mathematical error, shall be deemed to be
assessed on the date of filing of  the  return  (including  any  amended
return  showing  an increase of tax). If a notice of deficiency has been
mailed, the amount of the deficiency shall be deemed to be  assessed  on
the  date  specified  in  subdivision  two  of section seventy-two if no
petition to the director of finance is filed, or if a petition is filed,
then  upon  the  date  when  a  decision  of  the  director  of  finance
establishing  the amount of the deficiency becomes final. If a report or
an amended return filed pursuant to part two or part three of this title

concedes the accuracy of a federal adjustment or change or correction or
renegotiation, or computation or recomputation of tax, any deficiency in
tax under part two or part three of this title resulting therefrom shall
be  deemed  to  be assessed on the date of filing such report or amended
return, and such assessment  shall  be  timely  notwithstanding  section
seventy-four.  If  a  report  filed  pursuant  to part two of this title
concedes the accuracy of a state  change  or  correction  of  sales  and
compensating  use tax liability, any deficiency in tax under part two of
this title resulting therefrom shall be deemed assessed on the  date  of
filing  such report, and such assessment shall be timely notwithstanding
section seventy-four. If a notice of additional tax due,  as  prescribed
in  subdivision five of section seventy-two, has been mailed, the amount
of the deficiency shall be deemed to be assessed on the  date  specified
in  such subdivision unless within thirty days after the mailing of such
notice a report of the federal adjustment or  change  or  correction  or
renegotiation  or  computation  or  recomputation  of tax, or an amended
return, where such return was required by part two or part three of this
title, is filed accompanied by a statement showing wherein such  federal
determination  and such notice of additional tax due are erroneous. If a
notice of additional tax due,  as  prescribed  in  subdivision  nine  of
section seventy-two, has been mailed, the amount of the deficiency shall
be  deemed  to  be  assessed  on  the date specified in such subdivision
unless within thirty days after the mailing of such notice a  report  of
the  state  change  or  correction,  or  a  copy of an amended return or
report, where such copy was required by part two of this title, is filed
accompanied by a statement showing wherein such state determination  and
such  notice  of  additional tax due are erroneous. Any amount paid as a
tax or in respect of a tax, other than amounts paid  as  estimated  tax,
shall  be  deemed  to  be  assessed  upon the date of receipt of payment
notwithstanding any other provisions.
2. Other assessment powers.--If the mode or time for the assessment of
any tax under the named parts (including interest, additions to tax  and
assessable  penalties)  is  not  otherwise provided for, the director of
finance may establish the same by regulations.
3. Estimated tax.--No unpaid amount of estimated tax under part two or
part three shall be assessed.
4. Supplemental assessment.--The director of finance may, at any  time
within   the  period  described  for  assessment,  make  a  supplemental
assessment, subject to  the  provisions  of  section  seventy-two  where
applicable,  whenever it is ascertained that any assessment is imperfect
or incomplete in any material respect.
5. Cross reference.--For assessment in case of jeopardy,  see  section
eighty-five.
§  74.  Limitations  on  Assessment.  1. General.--Except as otherwise
provided in this section,  any  tax  under  the  named  parts  shall  be
assessed  within  three years after the return was filed (whether or not
such return was filed on or after the date prescribed).
2. Time return deemed filed.--For purposes of this section,  a  return
of  tax  filed  before  the last day prescribed by law or by regulations
promulgated pursuant to law for the filing thereof shall be deemed to be
filed on such last day.
3. Exceptions.--
(a) Assessment at any time.--The tax may be assessed at any time if--
(1) no return is filed,
(2) a false or fraudulent return is filed with intent to evade tax,
(3) in the case of the tax imposed under part two  or  part  three  of
this  title,  the  taxpayer  fails  to  file  a report or amended return
required thereunder, in respect of an increase or  decrease  in  federal

taxable  income  or federal tax, or in respect of a change or correction
or renegotiation or in respect of the execution of a  notice  of  waiver
report  of which is required thereunder, or computation or recomputation
of  tax,  which is treated in the same manner as if it were a deficiency
for federal income tax purposes; or
(4) in the case of the tax imposed under part two of this  title,  the
taxpayer  fails  to  file  a report or amended return or report required
thereunder,  in  respect  of  a  change  or  correction  of  sales   and
compensating use tax liability, relating to the purchase or use of items
for which a sales or compensating use tax credit against the tax imposed
by part two was claimed.
(b)  Extension by agreement.--Where, before the expiration of the time
prescribed in this section for the assessment of tax, both the  director
of  finance and the taxpayer have consented in writing to its assessment
after such time, the tax may be  assessed  at  any  time  prior  to  the
expiration  of  the period agreed upon. The period so agreed upon may be
extended by subsequent agreements in writing made before the  expiration
of the period previously agreed upon.
(c)  Report of changed or corrected federal income. In the case of the
tax imposed under part two or part three of this title, if the  taxpayer
files  a  report or amended return required thereunder, in respect of an
increase or decrease in federal taxable income or  federal  tax,  or  in
respect of a change or correction or renegotiation, or in respect of the
execution  of a notice of waiver report of which is required thereunder,
or computation or recomputation of tax, which is  treated  in  the  same
manner  as  if it were a deficiency for federal income tax purposes, the
assessment (if not deemed to have been  made  upon  the  filing  of  the
report or amended return) may be made at any time within two years after
such  report  or amended return was filed. The amount of such assessment
of tax shall  not  exceed  the  amount  of  the  increase  in  city  tax
attributable  to  such federal change or correction or renegotiation, or
computation or recomputation of tax. The provisions  of  this  paragraph
shall  not  affect  the  time  within  which  or the amount for which an
assessment may otherwise be made.
(d) Deficiency attributable to net  operating  loss  carryback.--If  a
deficiency  of  tax  under part two of this title is attributable to the
application to taxpayer of a net operating loss  carryback,  it  may  be
assessed  at any time that a deficiency for the taxable year of the loss
may be assessed.
(e) Recovery  of  erroneous  refund.--An  erroneous  refund  shall  be
considered an underpayment of tax on the date made, and an assessment of
a  deficiency  arising  out  of erroneous refund may be made at any time
within two years  from  the  making  of  the  refund,  except  that  the
assessment  may  be made within five years from the making of the refund
if it appears that any part of  the  refund  was  induced  by  fraud  or
misrepresentation of a material fact.
(f)  Request  for prompt assessment.--The tax shall be assessed within
eighteen months after written request therefor (made after the return is
filed) by the taxpayer or by a fiduciary representing the taxpayer,  but
not  more  than  three  years  after  the  return  was  filed, except as
otherwise provided  in  this  subdivision  and  subdivision  four.  This
subdivision shall not apply unless--
(1) (A) such written request notifies the director of finance that the
taxpayer  contemplates  dissolution  at or before the expiration of such
eighteen-month period, (B) the dissolution is in good faith begun before
the expiration of such eighteen-month period, and (C) the dissolution is
completed;
(2) (A) such written request notifies the director of finance  that  a
dissolution  has  in  good  faith been begun, and (B) the dissolution is
completed; or
(3)  a dissolution has been completed at the time such written request
is made.
(g) Change of the allocation  of  taxpayer's  income  or  capital.--No
change  of the allocation of income or capital upon which the taxpayer's
return (or any additional assessment) was based shall be made  where  an
assessment  of  tax  is  made during the additional period of limitation
under subparagraph (3) or (4) of paragraph (a), or under paragraph  (c),
(d)  or  (i);  and  where  any such assessment has been made, or where a
notice of deficiency has been mailed to the taxpayer on the basis of any
such proposed assessment, no change  of  the  allocation  of  income  or
capital shall be made in a proceeding on the taxpayer's claim for refund
of  such assessment or on the taxpayer's petition for redetermination of
such deficiency.
(h)  Report   concerning   waste   treatment   facility.   Under   the
circumstances   described  in  subparagraph  (3)  of  paragraph  (g)  of
subdivision eight of section two of this title, the tax may be  assessed
within  three  years  after  the  filing  of  the  report containing the
information required by such paragraph.
(i) Report of changed or corrected  sales  and  compensating  use  tax
liability. In the case of a tax imposed under part two of this title, if
the  taxpayer  files  a  report  or  amended  return  or report required
thereunder,  in  respect  of  a  change  or  correction  of  sales   and
compensating  use  tax  liability, the assessment (if not deemed to have
been made upon the filing of the report) may be made at any time  within
two  years  after such report or amended return or report was filed. The
amount of such assessment of tax shall not  exceed  the  amount  of  the
increase  in  city  tax attributable to such state change or correction.
The provisions of this paragraph shall not affect the time within  which
or the amount for which an assessment may otherwise be made.
4.  Omission of income on return.--The tax may be assessed at any time
within six years after the return was filed if  a  taxpayer  omits  from
gross  income required to be reported on a return under any of the named
parts an amount properly  includable  therein  which  is  in  excess  of
twenty-five  percentum  of  the  amount  of  gross  income stated in the
return.
For purposes of this subdivision--
(a) the term "gross income" means gross income for federal income  tax
purposes  as  reportable  on  a  return under part two of this title and
"gross earnings," "gross income," "gross operating  income"  and  "gross
direct  premiums  less  return  premiums,"  as  those  terms are used in
whichever of the named parts is applicable;
(b) there shall not be taken into account any amount which is  omitted
in  the  return  if  such  amount  is  disclosed  in the return, or in a
statement attached to the return, in a manner adequate  to  apprise  the
director of finance of the nature and amount of such item.
5.  Suspension of running of period of limitations. The running of the
period of limitations on assessment or collection of tax or other amount
(or of a transferee's liability) shall, after the mailing of a notice of
deficiency, be suspended for the period during  which  the  director  of
finance  is  prohibited  under  subdivision three of section seventy-two
from making the assessment or from collecting by levy.
§ 75. Interest on underpayment. 1. General.--If any amount of  tax  is
not paid on or before the last date prescribed in whichever of the named
parts is applicable for payment, interest on such amount at the rate set
by  the commissioner of finance pursuant to section eighty-seven, or, if

no rate is set, at the rate of six percentum per annum shall be paid for
the period from such last date to the date  paid,  whether  or  not  any
extension   of  time  for  payment  was  granted.  Interest  under  this
subdivision  shall  not  be  paid if the amount thereof is less than one
dollar.
2. Exception as to estimated tax.--This section shall not apply to any
failure to pay estimated tax under part two or part three of this title.
3. Exception for mathematical error.--No interest shall be imposed  on
any underpayment of tax due solely to mathematical error if the taxpayer
files  a  return  within  the  time prescribed in whichever of the named
parts is applicable (including any  extension  of  time)  and  pays  the
amount  of  underpayment  within three months after the due date of such
return, as it may be extended.
5.  Suspension  of  interest  on   deficiencies.--If   a   waiver   of
restrictions  on  assessment  of  a  deficiency  has  been  filed by the
taxpayer, and if notice and  demand  by  the  director  of  finance  for
payment  of  such  deficiency  is  not made within thirty days after the
filing of such waiver, interest shall not be imposed on such  deficiency
for the period beginning immediately after such thirtieth day and ending
with the date of notice and demand.
6.  Tax reduced by carryback.--If the amount of tax under part two for
any taxable year is reduced by reason of a carryback of a net  operating
loss, such reduction in tax shall not affect the computation of interest
under  this  section  for the period ending with the filing date for the
taxable year in which the net operating loss arises.  Such  filing  date
shall be determined without regard to extensions of time to file.
7. Interest treated as tax.--Interest under this section shall be paid
upon  notice and demand and shall be assessed, collected and paid in the
same manner as the taxes under the named parts. Any  reference  in  this
part  to  the  tax  imposed by the named parts, or any of them, shall be
deemed also to refer to interest imposed by this section on such tax.
8. Interest on penalties  or  additions  to  tax.--Interest  shall  be
imposed  under  subdivision  one in respect of any assessable penalty or
addition to tax only if such assessable penalty or addition  to  tax  is
not paid within ten days from the date of the notice and demand therefor
under  subdivision two of section eighty-three and in such case interest
shall be imposed only for the period from such date of  the  notice  and
demand to the date of payment.
9. Payment prior to notice of deficiency.--If, prior to the mailing to
the  taxpayer of a notice of deficiency under subdivision two of section
seventy-two, the director of finance mails to the taxpayer a  notice  of
proposed  increase  of  tax and within thirty days after the date of the
notice of proposed increase the taxpayer pays all amounts shown  on  the
notice  to  be  due  to  the director of finance, no interest under this
section on the amount so paid shall be imposed for the period after  the
date of such notice of proposed increase.
10.  Payment  within  ninety  days  after  notice of deficiency.--If a
notice  of  deficiency  under  section  seventy-two  is  mailed  to  the
taxpayer,  and  the  total amount specified in such notice is paid on or
before the ninetieth day after the date of mailing, interest under  this
section  shall  not  be  imposed  for  the  period after the date of the
notice.
11. Payment within ten days after notice and  demand.--If  notice  and
demand  is  made  for  payment  of  any  amount under subdivision two of
section eighty-three, and if such amount is paid within ten  days  after
the  date  of such notice and demand, interest under this section on the
amount so paid shall not be imposed for the period  after  the  date  of
such notice and demand.
12.  Limitation  on  assessment  and  collection.--Interest prescribed
under this section may be assessed and collected at any time during  the
period  within  which  the  tax  or  other amount to which such interest
relates may be assessed and collected, respectively.
13.  Interest on erroneous refund.--Any portion of tax or other amount
which has been erroneously refunded, and which  is  recoverable  by  the
commissioner  of  finance,  shall  bear  interest at the rate set by the
commissioner of finance pursuant to section eighty-seven, or, if no rate
is set, at the rate of six percentum per annum  from  the  date  of  the
payment  of  the  refund,  but  only  if it appears that any part of the
refund was induced by fraud or a misrepresentation of a material fact.
14. Satisfaction by credits.--If any portion of a tax is satisfied  by
credit  of  an overpayment, then no interest shall be imposed under this
section on the portion of the tax so satisfied  for  any  period  during
which,  if  the  credit  had  not  been  made,  interest would have been
allowable with respect to such overpayment.
§ 76. Additions to  tax  and  civil  penalties.  1.  Failure  to  file
return.--In case of failure to file a return under the named parts on or
before  the  prescribed date (determined with regard to any extension of
time for filing), unless it  is  shown  that  such  failure  is  due  to
reasonable cause and not due to willful neglect, there shall be added to
the  amount required to be shown as tax on such return five percentum of
the amount of such tax if the failure is for not more  than  one  month,
with  an additional five percentum for each additional month or fraction
thereof during which such failure continues, not  exceeding  twenty-five
percentum in the aggregate. For this purpose, the amount of tax required
to  be shown on the return shall be reduced by the amount of any part of
the tax which is paid on or before the date prescribed  for  payment  of
the  tax  and  by  the amount of any credit against the tax which may be
claimed upon the return.
2. Deficiency due to negligence.--If any part of a deficiency  is  due
to  negligence or intentional disregard of this part or any of the named
parts  or  rules  or  regulations  thereunder  (but  without  intent  to
defraud),  there  shall  be  added  to  the  tax an amount equal to five
percentum of the deficiency.
3. Failure to file declaration or underpayment of  estimated  tax.--If
any taxpayer fails to file a declaration of estimated tax under part two
or  part  three,  or  fails to pay all or any part of an amount which is
applied as an installment against such estimated tax, it shall be deemed
to have made an underpayment of estimated tax. There shall be  added  to
the  tax  for  the  taxable  year  an  amount  at  the  rate  set by the
commissioner of finance pursuant to section eighty-seven, or, if no rate
set, at the rate of six percentum per  annum  upon  the  amount  of  the
underpayment  for  the  period  of  the  underpayment but not beyond the
fifteenth day of the third month following  the  close  of  the  taxable
year.  The  amount  of  the  underpayment  shall be, with respect to any
installment of estimated tax computed on  the  basis  of  the  preceding
year's  tax,  the  excess  of  the  amount  required to be paid over the
amount, if any, paid on or before  the  last  day  prescribed  for  such
payment  or, with respect to any other installment of estimated tax, the
excess of the amount of the installment which would be  required  to  be
paid  if  the  estimated  tax  were equal to ninety percentum of the tax
shown on the return for the taxable year (or if  no  return  was  filed,
ninety  per centum of the tax for such year) over the amount, if any, of
the installment paid on or before  the  last  day  prescribed  for  such
payment.  In any case in which there would be no underpayment if "eighty
per centum" were substituted for  "ninety  per  centum"  each  place  it
appears  in  this subdivision, the addition to the tax shall be equal to

seventy-five  per  centum  of  the  amount  otherwise   determined.   No
underpayment  shall  be deemed to exist with respect to a declaration or
installment otherwise due on or after the termination  of  existence  of
the taxpayer.
4.  Exception  to  addition  for  underpayment  of estimated tax.--The
addition to tax under subdivision three with respect to any underpayment
of any amount which is applied as an installment against  estimated  tax
under  part  two or part three of this title shall not be imposed if the
total amount of all payments of estimated tax made on or before the last
date prescribed for the payment of any such amount equals or exceeds the
amount which would have been required to be paid on or before such  date
if the estimated tax were whichever of the following is the least--
(a)  The  tax  shown  on  the return of the taxpayer for the preceding
taxable year, if a return showing a liability for tax was filed  by  the
taxpayer  for  the  preceding taxable year and such preceding year was a
taxable year of twelve months, or
(b) An amount equal to the tax computed at the rates applicable to the
taxable year, but otherwise on the basis  of  the  facts  shown  on  the
return  of  the  taxpayer  for, and the law applicable to, the preceding
taxable year, or
(c) (i) An amount equal to ninety percentum of the tax for the taxable
year computed by placing on an annualized basis the taxable income--
(1) for the first three months or the first five months of the taxable
year, in the case of the installment required to be paid  in  the  sixth
month,
(2) for the first six months, the first eight months or the first nine
months  of  the taxable year, in the case of the installment required to
be paid in the tenth month, and
(3) for the first nine months, the first eleven  months  or  the  full
twelve  months  of  the  taxable  year,  in  the case of the installment
required to be paid in the first month of the next succeeding year.
(ii) For purposes of subparagraph (i), the  taxable  income  shall  be
placed on an annualized basis by--
(1)  multiplying  it  by  twelve (or, in the case of a taxable year of
less than twelve months, the number of months in the taxable year), and
(2) dividing the resulting amount by  the  number  of  months  in  the
taxable  year  (three,  five, six, eight, nine, eleven or twelve, as the
case may be) referred to in subparagraph (i), or
(d) (i) If the base period percentage for any six  consecutive  months
of  the  taxable year equals or exceeds seventy percent, an amount equal
to ninety percent of the tax determined in the following manner--
(A) take the taxable income for all months  during  the  taxable  year
preceding the filing month,
(B)  divide  such  amount by the base period percentage for all months
during the taxable year preceding the filing month,
(C) determine the tax on the amount determined under clause (B), and
(D) multiply the tax determined under clause (C) by  the  base  period
percentage  for  the filing month and all months during the taxable year
preceding the filing month.
(ii) For purposes of subparagraph (i)--
(A) the base period percentage for any period of months shall  be  the
average percent which the taxable income for the corresponding months in
each  of  the  three preceding taxable years bears to the taxable income
for the three preceding taxable years. The commissioner of  finance  may
by  regulations  provide  for  the  determination  of  the  base  period
percentage in the case of reorganizations, new corporations,  and  other
similar circumstances, and
(B)  the  term "filing month" means the month in which the installment
is required to be paid.
5.  Allocation of net income.--(a) Except as provided in paragraph (b)
hereof, paragraphs (a) and (b) of subdivision four of this section shall
not  apply  in  the  case  of  any  corporation  (or   any   predecessor
corporation)  which  had  entire  net  income,  or  the  portion thereof
allocated within the city, of  one  million  dollars  or  more  for  any
taxable  year  during  the three taxable years immediately preceding the
taxable year involved.
(b) The amount treated as the estimated tax under paragraphs  (a)  and
(b)  of  subdivision four of this section shall in no event be less than
seventy-five percent of the tax shown on the return for the taxable year
beginning in nineteen hundred eighty-three or, if no return  was  filed,
seventy-five percent of the tax for such year.
6.  Deficiency  due  to  fraud.--If any part of a deficiency is due to
fraud, there shall be  added  to  the  tax  an  amount  equal  to  fifty
percentum  of  the deficiency. This amount shall be in lieu of any other
addition to tax imposed by subdivision one or two.
7. Additional penalty.--Any person who with  fraudulent  intent  shall
fail  to  pay under the named parts any tax, or to make, render, sign or
certify any return or declaration of estimated tax,  or  to  supply  any
information within the time required by or under any of the named parts,
shall  be  liable  to  penalty of not more than one thousand dollars, in
addition to any other amounts required under this part  to  be  imposed,
assessed  and  collected  by  the  director  of finance. The director of
finance shall have the power, in his discretion,  to  waive,  reduce  or
compromise any penalty under this subdivision.
8.  Additions  treated  as  tax.--The  additions  to tax and penalties
provided by this section shall be paid upon notice and demand and  shall
be  assessed,  collected  and  paid in the same manner as taxes, and any
reference in this part to tax imposed by any of the named parts shall be
deemed also to refer to the additions to tax and penalties  provided  by
this  section.  For  purposes  of  section seventy-two, this subdivision
shall not apply to--
(a) any addition to tax  under  subdivision  one  except  as  to  that
portion attributable to a deficiency;
(b) any addition to tax under subdivision three; and
(c) any additional penalty under subdivision seven.
9.  Determination of deficiency.--For purposes of subdivisions two and
six the amount shown as the tax by the taxpayer upon its return shall be
taken into account in determining the amount of the deficiency  only  if
such  return  was  filed  on  or  before the last day prescribed for the
filing of such return, determined with regard to any extension  of  time
for such filing.
10.  Person  defined.--For  purposes  of  subdivision  seven, the term
"person" includes  an  individual,  corporation  or  partnership  or  an
officer   or   employee   of  any  corporation  (including  a  dissolved
corporation), or a member or employee of any partnership,  who  as  such
officer,  employee,  or  member  is  under  a duty to perform the act in
respect of which the violation occurs.
11.  Substantial  understatement  of   liability.--If   there   is   a
substantial  understatement  of tax for any taxable year, there shall be
added to the tax an amount equal to ten percent of  the  amount  of  any
underpayment  attributable  to such understatement. For purposes of this
subdivision, there is  a  substantial  understatement  of  tax  for  any
taxable  year  if  the amount of the understatement for the taxable year
exceeds the greater of ten percent of the tax required to  be  shown  on
the return for the taxable year, or ten thousand dollars except that for

an  electing  small  business corporation as defined in section thirteen
hundred  sixty-one  of  the  internal   revenue   code   a   substantial
understatement  exists  if  the amount of the understatement exceeds ten
percent  of  the  tax  or  five  thousand  dollars.  For purposes of the
preceding sentence, the term "understatement" means the  excess  of  the
amount  of  the  tax  required to be shown on the return for the taxable
year, over the amount of the tax imposed which is shown on  the  return.
The  amount  of the understatement under the preceding sentence shall be
reduced by that portion of the understatement which is  attributable  to
the  tax  treatment  of  any  item  by  the  taxpayer if there is or was
substantial authority for such treatment, or any item  with  respect  to
which  the  relevant  facts  affecting  the  item's  tax  treatment  are
adequately disclosed in the return or in a  statement  attached  to  the
return.  The  commissioner  of  finance may waive all or any part of the
addition to tax provided  by  this  subdivision  on  a  showing  by  the
taxpayer that there was reasonable cause for the understatement (or part
thereof) and that the taxpayer acted in good faith.
§  77.  Overpayment.  1. General.--The director of finance, within the
applicable period of limitations, may credit an overpayment of  tax  and
interest on such overpayment against any liability in respect of any tax
imposed  by  any of the named parts of this title or on the taxpayer who
made the overpayment, and the balance  shall  be  refunded  out  of  the
proceeds of the tax.
2.  Credits  against  estimated  tax.--The  director  of  finance  may
prescribe regulations providing for the crediting against the  estimated
tax  under  part two or part three of this title for any taxable year of
the amount determined to be an overpayment of tax under  any  such  part
for a preceding taxable year. If any overpayment of tax is so claimed as
a  credit  against  estimated  tax for the succeeding taxable year, such
amount shall be considered as a payment of the tax  under  part  two  or
part three of this title for the succeeding taxable year (whether or not
claimed  as  a  credit  in  the  declaration  of  estimated tax for such
succeeding taxable year), and no claim for  credit  or  refund  of  such
overpayment  shall  be  allowed  for  the  taxable  year  for  which the
overpayment arises.
3. Rule where no tax liability.--If there is no tax  liability  for  a
period  in  respect of which an amount is paid as tax, such amount shall
be considered an overpayment.
4. Assessment and collection after limitation period.--If  any  amount
of  tax  is  assessed or collected after the expiration of the period of
limitations properly applicable thereto, such amount shall be considered
an overpayment.
5. Assignment of overpayment.--A credit  for  an  overpayment  of  tax
under  any  of  the  named  parts  may  be assigned by the taxpayer to a
corporation liable to pay taxes under any of the named  parts,  and  the
assignee  of  the  whole  or  any  part  of  such credit, on filing such
assignment with the director of finance, shall thereupon be entitled  to
credit  upon the books of the director of finance for the amount thereof
on its current account for taxes, in the same manner  and  to  the  same
effect as though the credit had originally been allowed in its favor.
6.  Notwithstanding  any  other  provision of law to the contrary, the
procedures for the enforcement of money judgments shall not apply to the
department of finance, or to any officer or employee of such department,
as a garnishee, with respect to any amount of money to  be  refunded  or
credited to a taxpayer under this title.
§  78.  Limitations on credit or refund. 1. General.--Claim for credit
or refund of an overpayment of tax under any of the named parts shall be
filed by the taxpayer within three years from the time  the  return  was

filed  or  two  years  from the time the tax was paid, whichever of such
periods expires the later, or if no return was filed, within  two  years
from  the  time the tax was paid. If the claim is filed within the three
year  period,  the  amount  of the credit or refund shall not exceed the
portion of the tax paid within the three years immediately preceding the
filing of the claim plus the period of any extension of time for  filing
the  return. If the claim is not filed within the three year period, but
is filed within the two year period, the amount of the credit or  refund
shall  not  exceed  the  portion  of  the  tax paid during the two years
immediately preceding the filing  of  the  claim.  Except  as  otherwise
provided  in  this section, if no claim is filed, the amount of a credit
or refund shall not exceed the amount which  would  be  allowable  if  a
claim  had  been  filed on the date the credit or refund is allowed. For
special restriction in a proceeding on a claim for refund  of  tax  paid
pursuant  to  an assessment made as a result of (a) a net operating loss
carryback, or (b) an increase or decrease in federal taxable  income  or
federal  tax, or (c) a federal change or correction or renegotiation, or
computation or recomputation of tax, which is treated in the same manner
as if it  were  a  deficiency  for  federal  income  tax  purposes,  see
paragraph (g) of subdivision three of section seventy-four.
2.  Extension  of  time  by  agreement.--If  an  agreement  under  the
provisions of paragraph (b) of subdivision three of section seventy-four
(extending the period for assessment of tax) is made within  the  period
prescribed  in  subdivision  one for the filing of a claim for credit or
refund, the period for filing a claim  for  credit  or  refund,  or  for
making  credit or refund if no claim is filed, shall not expire prior to
six months after the expiration of the period within which an assessment
may be made pursuant to the agreement  or  any  extension  thereof.  The
amount  of such credit or refund shall not exceed the portion of the tax
paid after the execution of the agreement and before the filing  of  the
claim  or  the  making of the credit or refund, as the case may be, plus
the portion of the tax paid within the period which would be  applicable
under  subdivision  one  if  a  claim  had  been  filed  on the date the
agreement was executed.
3. Notice of change or correction of fedearl income.--If a taxpayer is
required by part two or part three of this title to  file  a  report  or
amended  return  in  respect  of  (a)  a decrease or increase in federal
taxable income or federal tax, or (b) a federal change or correction  or
renegotiation,  or computation or recomputation of tax, which is treated
in the same manner as if it were an overpayment for federal  income  tax
purposes, claim for credit or refund of any resulting overpayment of tax
shall  be  filed  by  the  taxpayer  within two years from the time such
report or amended return was required to be filed with the  commissioner
of finance. If the report or amended return required by part two or part
three  of  this  title is not filed within the ninety day period therein
specified, interest on any resulting refund or  credit  shall  cease  to
accrue after such ninetieth day. The amount of such credit or refund--
(c)  shall  be  computed without change of the allocation of income or
capital upon which the taxpayer's return (or any additional  assessment)
was based, and
(d)  shall  not exceed the amount of the reduction in tax attributable
to such decrease or increase in federal taxable income or federal tax or
to such federal change or correction or renegotiation, or computation or
recomputation of tax.
This subdivision shall not affect the time within which or the  amount
for  which  a  claim  for  credit or refund may be filed apart from this
subdivision.
4. Overpayment attributable to net operating loss carryback.--A  claim
for credit or refund of so much of an overpayment under part two of this
title  as  is  attributable  to the application to the taxpayer of a net
operating loss carryback shall be filed within three years from the time
the  return  was  due  for  the  taxable year of the loss, or within the
period prescribed in subdivision two in respect of such taxable year, or
within the period prescribed in subdivision three, where applicable,  in
respect  of  the taxable year to which the net operating loss is carried
back, whichever expires the latest.  Where  such  claim  for  credit  or
refund  is  filed  after  the  expiration  of  the  period prescribed in
subdivision one or in subdivision two where applicable,  in  respect  of
the  taxable  year  to which the net operating loss is carried back, the
amount of such credit or refund shall be computed without change of  the
allocation of income or capital upon which the taxpayer's return (or any
additional assessment) was based.
5.  Failure  to  file  claim  within  prescribed period.--No credit or
refund shall be allowed or made, except as provided in  subdivision  six
of  this  section  or  subdivision four of section eighty-one, after the
expiration of the applicable period  of  limitation  specified  in  this
part,  unless  a  claim  for  credit  or refund is filed by the taxpayer
within such period.  Any later credit shall be void and any later refund
erroneous. No period of limitations specified in  any  other  law  shall
apply  to  the recovery by a taxpayer of moneys paid in respect of taxes
under the named parts.
6. Effect  of  petition  to  director  of  finance.--If  a  notice  of
deficiency  for  a  taxable  year  has been mailed to the taxpayer under
section seventy-two and if the taxpayer files a timely petition with the
director of finance under section eighty,  he  may  determine  that  the
taxpayer  has  made an overpayment for such year (whether or not he also
determines a deficiency for such year). No separate claim for credit  or
refund  for  such  year shall be filed, and no credit or refund for such
year shall be allowed or made, except--
(a) as to overpayment determined by a  decision  of  the  director  of
finance which has become final; and
(b)  as  to  any  amount  collected in excess of an amount computed in
accordance with the decision of the director of finance which has become
final; and
(c) as to any amount collected after the period of limitation upon the
making of levy for collection has expired; and
(d) as to any amount claimed as a result of  a  change  or  correction
described in subdivision three.
7.  Limit  on  amount  of credit or refund.--The amount of overpayment
determined under  subdivision  six  shall,  when  the  decision  of  the
director  of  finance  has  become  final,  be  credited  or refunded in
accordance with subdivision one of section seventy-seven and  shall  not
exceed  the  amount  of  tax which the director of finance determines as
part of his decision was paid--
(a) after the mailing of the notice of deficiency, or
(b) within the period which would  be  applicable  under  subdivisions
one,  two  or  three,  if  on  the  date of the mailing of the notice of
deficiency a claim had been filed (whether or  not  filed)  stating  the
grounds  upon  which  the commissioner of finance finds that there is an
overpayment.
For special restriction on credit or  refund  in  a  proceeding  on  a
petition  for  redetermination  of  a  deficiency  where  the  notice of
deficiency is issued as a result of (i) a net operating loss  carryback,
or  (ii)  an  increase  or decrease in federal taxable income or federal
tax, or (iii) a  federal  change  or  correction  or  renegotiation,  or

computation or recomputation of tax, which is treated in the same manner
as  if  it  were  a  deficiency  for  federal  income  tax purposes, see
paragraph (g) of subdivision three of section seventy-four.
8.  Early  return.--For  purposes  of  this  section, any return filed
before  the  last  day  prescribed  for  the  filing  thereof  shall  be
considered  as  filed on such last day, determined without regard to any
extension of time granted the taxpayer.
9. Prepaid tax.--For purposes of this section, any  tax  paid  by  the
taxpayer  before  the last day prescribed for its payment (including any
amount paid by the taxpayer as estimated tax for a taxable  year)  shall
be  deemed  to  have  been  paid by it on the fifteenth day of the third
month following the close of the taxable year the income of which is the
basis for tax under part two or part three of this title, or on the last
day prescribed in subpart one of part four  or  in  part  five  for  the
filing  of  a  final  return  for such taxable year, or portion thereof,
determined in all cases without regard to any extension of time  granted
the taxpayer.
10.  Cross  reference.--For  provision  barring  refund of overpayment
credited against tax of  a  succeeding  year,  see  subdivision  two  of
section seventy-seven.
11.  Notice  of change or correction of sales and compensating use tax
liability.--If a taxpayer is required by part two of this title to  file
a  report  or amended return in respect of a change or correction of its
sales and compensating use tax liability, claim for credit or refund  of
any  resulting  overpayment of tax shall be filed by the taxpayer within
two years from the time such report or amended return was required to be
filed with the commissioner of finance. If the report or amended  return
required  by  part  two of that title is not filed within the ninety day
period therein specified, interest on any  resulting  refund  or  credit
shall  cease  to  accrue  after  such  ninetieth day. The amount of such
credit or refund shall be computed without change of the  allocation  of
income  or  capital  upon which the taxpayer's return (or any additional
assessment) was based, and shall not exceed the amount of the  reduction
in   tax  attributable  to  such  change  or  correction  of  sales  and
compensating use tax liability.
This subdivision shall not affect the time within which or the  amount
for  which  a  claim  for  credit or refund may be filed apart from this
subdivision.
§  79.  Interest  on  overpayment.  1.  General.--Notwithstanding  the
provisions  of  section  three-a  of the general municipal law, interest
shall be allowed and paid as follows at the rate set by the commissioner
of finance pursuant to section eighty-seven, or, if no rate is  set,  at
the rate of six percent per annum upon any overpayment in respect of the
tax imposed by any of the named parts:
(a)  from  the  date  of  the overpayment to the due date of an amount
against which a credit is taken;
(b) from the date of the overpayment to a date (to  be  determined  by
the commissioner of finance) preceding the date of a refund check by not
more  than  thirty days, whether or not such refund check is accepted by
the taxpayer after tender of such check to the taxpayer. The  acceptance
of such check shall be without prejudice to any right of the taxpayer to
claim any additional overpayment and interest thereon.
(c)  late  returns.  Notwithstanding  paragraph  (a)  or  (b)  of this
subdivision, in the case of a return of tax which  is  filed  after  the
last  date  prescribed for filing such return (determined with regard to
extensions), no interest shall be allowed or paid for any day before the
date on which the return is filed.
No interest shall be allowed or paid if the  amount  thereof  is  less
than one dollar.
2.  Advance  payment  of  tax  and  estimated  tax.--The provisions of
subdivisions eight and  nine  of  section  seventy-eight  applicable  in
determining  the  date of payment of tax for purposes of determining the
period of limitations on  credit  or  refund,  shall  be  applicable  in
determining the date of payment for purposes of this section.
3.  Tax  refund  within  three  months  of  due  date  of tax.--If any
overpayment of tax imposed by any of the named parts is refunded  within
three  months  after the last date prescribed (or permitted by extension
of time) for filing the return of such tax or within three months  after
the  return  was filed, whichever is later, no interest shall be allowed
under this section on such overpayment.
4. Refund of tax caused by carryback.--For purposes of  this  section,
if any overpayment of tax imposed by part two of this title results from
a  carryback  of  a net operating loss, such overpayment shall be deemed
not to have been made prior to the filing date for the taxable  year  in
which  such  net  operating  loss  arises.  Such  filing  date  shall be
determined without regard to extensions of time to file. For purposes of
subdivision three of this section any overpayment described herein shall
be treated as an overpayment for the  loss  year  and  such  subdivision
shall be applied with respect to such overpayment by treating the return
for  the  loss  year  as  not filed before claim for such overpayment is
filed. The term "loss year" means the taxable year in  which  such  loss
arises.
5. No interest until return in processible form.--
(a)  For  purposes  of  subdivisions  one and three of this section, a
return shall not be treated as filed until it is  filed  in  processible
form.
(b)  For purposes of paragraph (a) of this subdivision, a return is in
a processible form if--
(A) such return is filed on a permitted form, and
(B) such return contains--
(i) the taxpayer's name,  address,  and  identifying  number  and  the
required signatures, and
(ii)  sufficient  required  information  (whether  on the return or on
required attachments) to permit the  mathematical  verification  of  tax
liability shown on the return.
6.  Cross reference.--For provision terminating interest after failure
to file a report or amended return under part two  or  part  three,  see
subdivision three of section seventy-eight.
§  80.  Petition  to  director  of  finance. 1. General. The form of a
petition to the director of finance, and further proceedings before  the
director  of  finance in any case initiated by the filing of a petition,
shall be governed by  such  rules  as  the  director  of  finance  shall
prescribe.  No  petition  shall  be  denied  in whole or in part without
opportunity for a hearing on reasonable prior notice. Such hearing shall
be conducted by the  director  of  finance,  or  by  a  hearing  officer
designated by the director of finance to take evidence and report to the
director  of  finance.  The director of finance shall decide the case as
quickly as practicable. Notice of decision shall be mailed  promptly  to
the  taxpayer by certified or registered mail at its last known address,
and such notice shall set forth the director's findings of  fact  and  a
brief statement of the grounds of decision in each case decided in whole
or in part adversely to the taxpayer.
2.  Petition for redetermination of a deficiency.--Within ninety days,
or one hundred fifty days if the notice is addressed to a taxpayer whose
last known address is outside of the United States, after the mailing of

the notice of deficiency authorized by section seventy-two, the taxpayer
may  file  a  petition  with  the  commissioner   of   finance   for   a
redetermination of the deficiency. Such petition may also assert a claim
for  refund  for  the  same  taxable  year  or  years,  subject  to  the
limitations of subdivision seven of section seventy-eight.  For  special
restriction  where  the  notice  of  deficiency  relates  to  a proposed
assessment made as a result of (a) a net operating loss  carryback,  (b)
an increase or decrease in federal taxable income or federal tax, or (c)
a  federal  change  or  correction  or  renegotiation, or computation or
recomputation of tax, which is treated in the same manner as if it  were
a  deficiency  for  federal  income  tax  purposes, see paragraph (g) of
subdivision three of section seventy-four.
3. Petition for refund.--A taxpayer  may  file  a  petition  with  the
director of finance for the amounts asserted in a claim for refund if--
(a) the taxpayer has filed a timely claim for refund with the director
of finance,
(b) the taxpayer has not previously filed with the director of finance
a timely petition under subdivision two for the same taxable year unless
the  petition  under  this  subdivision  relates to a separate claim for
credit or  refund  properly  filed  under  subdivision  six  of  section
seventy-eight, and
(c)  either  (1) six months have expired since the claim was filed, or
(2) the director of finance has mailed to the taxpayer, by registered or
certified mail, a notice of disallowance of such claim in  whole  or  in
part.
No  petition  under this subsection shall be filed more than two years
after the date of mailing of a notice of disallowance, unless  prior  to
the  expiration  of such two year period it has been extended by written
agreement between the  taxpayer  and  the  director  of  finance.  If  a
taxpayer  files  a written waiver of the requirement that he be mailed a
notice  of  disallowance,  the  two  year  period  prescribed  by   this
subdivision  for  filing  a  petition for refund shall begin on the date
such waiver is filed.
4. Assertion of deficiency after filing petition.--
(a) Petition for redetermination of deficiency.--If a  taxpayer  files
with  the  director  of  finance  a  petition  for  redetermination of a
deficiency, the director of finance shall  have  power  to  determine  a
greater  deficiency  then  asserted  in  the notice of deficiency and to
determine if there should be assessed any addition  to  tax  or  penalty
provided  in  section  seventy-six,  if claim therefor is asserted at or
before the hearing under rules of the director of finance.
(b) Petition for refund.--If the taxpayer files with the  director  of
finance a petition for credit or refund for a taxable year, the director
of finance may
(1)  determine  a  deficiency  for  such  year  as  to  any  amount of
deficiency asserted at or before the hearing under rules of the director
of finance and within the period in which an assessment would be  timely
under section seventy-four, or
(2) deny so much of the amount for which credit or refund is sought in
the  petition,  as  is  offset  by  other  issues pertaining to the same
taxable year which are asserted at or before the hearing under rules  of
the director of finance.
(c)  Opportunity  to  respond.--A taxpayer shall be given a reasonable
opportunity to respond to  any  matters  asserted  by  the  director  of
finance under this subdivision.
(d)  Restriction  on  further  notices of deficiency.--If the taxpayer
files a petition with the commissioner of finance under this section, no
notice of deficiency under section seventy-two may thereafter be  issued

by the commissioner of finance for the same taxable year, except in case
of  fraud  or with respect to an increase or decrease in federal taxable
income  or  federal  tax  or  a  federal   change   or   correction   or
renegotiation,  or computation or recomputation of tax, which is treated
in the same manner as if it were a deficiency  for  federal  income  tax
purposes,  required  to be reported under part two or part three of this
title or with respect to a state  change  or  correction  of  sales  and
compensating use tax liability required to be reported under part two of
this title.
5.  Burden of proof.--In any case before the director of finance under
this part, the burden of proof shall be upon the petitioner  except  for
the  following issues, as to which the burden of proof shall be upon the
director of finance:
(a) whether the petitioner has been guilty of  fraud  with  intent  to
evade tax;
(b)  whether the petitioner is liable as the transferee of property of
a taxpayer, but not to show that the taxpayer was liable  for  the  tax;
and
(c)  whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice  of  deficiency
was mailed and a petition under this section filed, unless such increase
in  deficiency  is  the  result  of  an  increase or decrease in federal
taxable income or federal tax or  a  federal  change  or  correction  or
renegotiation,  or computation or recomputation of tax, which is treated
in the same manner as if it were a deficiency  for  federal  income  tax
purposes,  required  to be reported under part two or part three of this
title,  and  of  which  increase,  decrease,  change  or  correction  or
renegotiation,  or  computation  or  recomputation,  the commissioner of
finance had no notice at the time he mailed the notice of deficiency  or
unless  such  increase  in  deficiency  is  the  result  of  a change or
correction of sales and compensating use tax liability  required  to  be
reported under part two of this title, and of which change or correction
the  commissionr  of  finance  had  no  notice at the time he mailed the
notice of deficiency.
6. Evidence of related federal or state determination.--Evidence of  a
federal  or  state  determination  relating  to  issues raised in a case
before the director of finance under this section shall  be  admissible,
under rules established by the director of finance.
7.  Jurisdiction  over  other  years.--The  director  of finance shall
consider such facts with relation to the taxes for other years as may be
necessary correctly to determine the tax for the taxable year, but in so
doing shall have no jurisdiction to determine whether or not the tax for
any other year has been overpaid or underpaid.
§ 81. Review of director's decision.  1. General.--A decision  of  the
director  of finance shall be subject to judicial review at the instance
of any taxpayer affected thereby in the manner provided by law  for  the
review  of  a final decision or action of administrative agencies of the
city. An application by a taxpayer for such review must be  made  within
four  months  after  notice  of  the  decision  is  sent by certified or
registered mail to the taxpayer.
2. Judicial review exclusive remedy  of  taxpayer.--The  review  of  a
decision  of  the  director of finance provided by this section shall be
the  exclusive  remedy  available  to  any  taxpayer  for  the  judicial
determination  of the liability of the taxpayer for the taxes imposed by
the named parts.
3.  Assessment  pending  review;  review  bond.--Irrespective  of  any
restrictions  on  the  assessment  and  collection  of deficiencies, the
director of finance may assess a deficiency after the expiration of  the

period specified in subdivision one, notwithstanding that an application
for  judicial review in respect of such deficiency has been duly made by
the taxpayer unless the taxpayer, at or before the time  the  taxpayer's
application  for  review is made, has paid the deficiency, has deposited
with the director of finance the amount of the deficiency, or has  filed
with  the director of finance a bond (which may be a jeopardy bond under
subdivision eight of section eighty-five) in the amount of  the  portion
of  the  deficiency (including interest and other amounts) in respect of
which the application for review is made and all costs and charges which
may accrue against the taxpayer in the prosecution  of  the  proceeding,
including costs of all appeals, and with surety approved by a justice of
the  supreme  court  of  the  state, conditioned upon the payment of the
deficiency (including interest and other amounts) as finally  determined
and  such  costs  and  charges.  If  as  a  result  of  a  waiver of the
restrictions on the assessment and collection of a deficiency  any  part
of  the  amount  determined by the director of finance is paid after the
filing of the review bond, such  bond  shall,  at  the  request  of  the
taxpayer, be proportionately reduced.
4.  Credit,  refund  or  abatement  after  review.--If the amount of a
deficiency determined by the director of finance is disallowed in  whole
or  in  part  by  the court of review, the amount so disallowed shall be
credited or refunded to  the  taxpayer,  without  the  making  of  claim
therefor, or, if payment has not been made, shall be abated.
5.  Date  of  finality of director of finance decision.--A decision of
the director of finance shall become final upon the  expiration  of  the
period  specified  in  subdivision  one  for  making  an application for
review, if no such application has been duly made within such  time,  or
if  such application has been duly made, upon expiration of the time for
all further judicial review, or upon the rendering by  the  director  of
finance  of  a  decision  in accordance with the mandate of the court on
review. Notwithstanding the foregoing, for  the  purpose  of  making  an
application for review, the decision of the director of finance shall be
deemed  final on the date the notice of decision is sent by certified or
registered mail to the taxpayer.
§ 82. Mailing rules;  holidays.  1.  Timely  mailing.--If  any  claim,
statement,  notice, petition, or other document (including to the extent
authorized by the director of finance, a  return  or  a  declaration  of
estimated  tax) required to be filed within a prescribed period or on or
before a prescribed date under authority of any provision of  this  part
or  of  the named parts is, after such period or such date, delivered by
United States mail to the director of finance, bureau,  office,  officer
or person with which or with whom such document is required to be filed,
the  date of the United States postmark stamped on the envelope shall be
deemed to be the date of delivery. This subdivision shall apply only  if
the postmark date falls within the prescribed period or on or before the
prescribed  date for the filing of such document, determined with regard
to any extension granted for such filing, and only if such document  was
deposited  in  the  mail,  postage  prepaid,  properly  addressed to the
director of finance, bureau, office, officer or  person  with  which  or
with  whom the document is required to be filed. If any document is sent
by United States registered mail, such registration shall be prima facie
evidence that such document was delivered to the  director  of  finance,
bureau,  office, officer or person to which or to whom addressed. To the
extent that the director  of  finance  shall  prescribe  by  regulation,
certified  mail  may  be  used  in  lieu  of  registered mail under this
subdivision. This subdivision shall apply in the case of  postmarks  not
made by the United States Post Office only if and to the extent provided
by regulations of the director of finance.
2.  Last  known address.--For purposes of this part, a taxpayer's last
known address shall be the address given in the last return filed by it,
unless subsequently to the filing of such return the taxpayer shall have
notified the director of finance of a change of address.
3.  Last  day  a Saturday, Sunday or legal holiday.--When the last day
prescribed under authority of this part or the  named  parts  (including
any  extension  of  time)  for  performing  any act falls on a Saturday,
Sunday, or legal holiday in the state, the performance of such act shall
be considered timely if it is performed on the next succeeding day which
is not a Saturday, Sunday or legal holiday.
§ 83. Collection,  levy  and  liens.--1.  Collection  procedures.--The
taxes  imposed  by the named parts shall be collected by the director of
finance, and he may establish the mode or time for the collection of any
amount due him thereunder if not otherwise specified.   The director  of
finance  shall,  upon  request,  give  a  receipt  for any sum collected
thereunder. The  director  of  finance  may  authorize  banks  or  trust
companies  which  are  depositaries  or  financial agents of the city to
receive and give a receipt for any tax imposed under the named parts  in
such manner, at such times, and under such conditions as the director of
finance  may  prescribe; and the director of finance shall prescribe the
manner, times and conditions under which the receipt of such tax by such
banks and trust companies is to be treated as payment of such tax to the
director of finance.
2. Notice and demand for tax.--The director of finance shall  as  soon
as  practicable  give  notice  to each taxpayer liable for any amount of
tax, addition to tax, penalty or interest, which has been  assessed  but
remains  unpaid,  stating the amount and demanding payment thereof. Such
notice shall be left at the principal office of the taxpayer in the city
or shall be sent by mail to such taxpayer's last known  address.  Except
where  the  director  of  finance  determines  that  collection would be
jeopardized by delay, if any tax is assessed  prior  to  the  last  date
(including  any  date fixed by extension) prescribed for payment of such
tax, payment of such tax shall not be demanded until after such date.
3. Issuance of warrant after notice and demand.--If any corporation or
other person liable under the named parts for the payment  of  any  tax,
addition to tax, penalty or interest neglects or refuses to pay the same
within  ten  days  after  notice  and  demand  therefor is given to such
corporation or other person  under  subdivision  two,  the  director  of
finance  may  within six years after the date of such assessment issue a
warrant under his official seal directed to the sheriff of any county of
the state, or to any officer or employee of the department  of  finance,
commanding  him  to levy upon and sell the real and personal property of
such corporation or other person for the payment of the amount assessed,
with the cost of executing the warrant, and to return  such  warrant  to
the  director  of  finance  and pay to him the money collected by virtue
thereof within sixty days after the  receipt  of  the  warrant.  If  the
director of finance finds that the collection of the tax or other amount
is  in jeopardy, notice and demand for immediate payment of such tax may
be made by the director of finance and upon failure or  refusal  to  pay
such  tax  or  other  amount the director of finance may issue a warrant
without regard to the ten-day period provided in this subdivision.
4. Copy of warrant to be filed and lien to be created.--Any sheriff or
officer or employee who receives a warrant under subdivision three shall
within  five  days  thereafter  file  a  copy  with  the  clerk  of  the
appropriate  county.  The  clerk  shall  thereupon enter in the judgment
docket, in the column for judgment debtors, the  name  of  the  taxpayer
mentioned  in  the  warrant, and in appropriate columns the tax or other
amounts for which the warrant is issued and the date when such  copy  is

filed;  and such amount shall thereupon be a binding lien upon the real,
personal and other property of the taxpayer.
5.  Judgment.--When a warrant has been filed with the county clerk the
director of finance shall, on behalf of the  city,  be  deemed  to  have
obtained judgment against the taxpayer for the tax or other amounts.
6.  Execution.--The  sheriff  or  officer  or employee shall thereupon
proceed upon the judgment in all respects, with like effect, and in  the
same  manner  prescribed  by law in respect to executions issued against
property upon judgments of a court of record, and  a  sheriff  shall  be
entitled  to the same fees for his services in executing the warrant, to
be collected  in  the  same  manner.  An  officer  or  employee  of  the
department  of  finance  may  proceed  in any county or counties of this
state and shall have all the powers of execution conferred by  law  upon
sheriffs,  but  shall be entitled to no fee or compensation in excess of
actual expenses paid in connection with the execution of the warrant.
7. Foreign corporations.--Where a notice and demand under  subdivision
two  shall  have been given to a foreign corporation or other person who
is not then a resident, and it appears to the director of  finance  that
it  is  not  practicable  to  find in the state property of such foreign
corporation or nonresident person sufficient to pay the  entire  balance
of  tax or other amount owing by such foreign corporation or nonresident
person, the director of finance  may,  in  accordance  with  subdivision
three,  issue  a  warrant  directed  to  an  officer  or employee of the
department of finance, a copy  of  which  warrant  shall  be  mailed  by
certified  or registered mail to such foreign corporation or nonresident
person at its last known address,  subject  to  the  rules  for  mailing
provided  in  subdivision one of section seventy-two. Such warrant shall
command the officer or employee to proceed in New York  county,  and  he
shall,  within  five days after receipt of the warrant, file the warrant
and obtain a judgment in accordance with  this  section.  Thereupon  the
director  of  finance  may  authorize  the  institution of any action or
proceeding to collect or enforce the judgment in any place  and  by  any
procedure that a civil judgment of the supreme court of the state of New
York  could  be collected or enforced. The director of finance may also,
in his discretion, designate agents or retain counsel for the purpose of
collecting, outside the state,  any  unpaid  taxes,  additions  to  tax,
penalties  or interest which have been assessed under this part or under
any  of  the  named  parts,  against  foreign  corporations   or   other
non-resident  persons,  may  fix  the  compensation  of  such agents and
counsel to be paid out  of  money  appropriated  or  otherwise  lawfully
available  for  payment  thereof, and may require of them bonds or other
security for the faithful performance of their duties, in such form  and
in  such  amount  as  the  director  of  finance  shall  deem proper and
sufficient.
8. Action by city for recovery of taxes.--Action may be brought by the
corporation counsel at the  instance  of  the  director  of  finance  to
recover  the  amount of any unpaid taxes, additions to tax, penalties or
interest which have been assessed under this part  or  under  the  named
parts within six years prior to the date the action is commenced.
9.  Release  of  lien.--The  director of finance, if it finds that the
interests of the city will not thereby be  jeopardized,  and  upon  such
conditions  as it may require, may release any property from the lien of
any warrant filed under subdivision four  or  seven  for  unpaid  taxes,
additions to tax, penalties and interest filed pursuant to this section,
and  such release may be recorded in the office of any recording officer
in which such warrant has been filed.
10. Lien from due date of return.--(a) In addition to any  other  lien
provided  for in this section, each tax imposed by the named parts shall

become a lien on the date on which the return is required  to  be  filed
(without regard to any extension of time for filing such return), except
that  such  tax shall become a lien not later than the date the taxpayer
ceases to be subject to the tax imposed by any of the named parts, or to
do  business  in  this  state in a corporate or organized capacity. Each
such tax shall be a lien and binding upon the real and personal property
of the taxpayer, or of a transferee liable to pay the  same,  until  the
same  is  paid  in  full,  except  that  no  lien for any additional tax
assessed pursuant to this part shall  be  enforceable  against  property
which  prior  to  the issuance to the taxpayer of a notice of deficiency
under section seventy-two had been transferred in good faith to  a  bona
fide  transferee  for  value.  But  the  lien  of each such tax shall be
subject to the lien of any mortgage indebtedness existing  against  real
property  previous to the time when the tax became a lien and where such
mortgage indebtedness has been incurred in good faith and was not given,
directly or indirectly, to any officer or stockholder of the corporation
owning such real property, whether  as  a  purchase  money  mortgage  or
otherwise,  and  shall  also  be  subject to the lien of local taxes and
assessments, without  regard  to  when  the  lien  for  such  taxes  and
assessments  may  have accrued. If the return is filed and the tax shown
on the report to be due is paid on or  before  the  date  on  which  the
report is required to be filed, without regard to any extensions of time
for  filing  such  report, the lien shall not be enforceable against the
interest of any purchaser or mortgagee in property which is  thereafter,
but  prior  to  the  issuance  to the taxpayer of a notice of deficiency
under section seventy-two transferred  to  a  bona  fide  purchaser  for
value,  or mortgaged where the mortgage indebtedness is incurred in good
faith and the mortgage is not given,  directly  or  indirectly,  to  any
officer  or  stockholder  of the corporation. In any action to foreclose
any  such  mortgage,  or  to  foreclose  the  lien  of  local  taxes  or
assessments,  to  which  the people of the state, or the city shall have
been made a party defendant by reason of the existence of a lien for any
such tax, or if no such tax was due or was a lien at  the  time  of  the
commencement  of  such  action  and the filing of the notice of pendency
thereof, but such a tax becomes due or becomes a lien subsequent to  the
time  of the commencement of such action and the filing of the notice of
pendency thereof, such real property shall be sold and conveyed in  such
action  free  from any such tax lien, and any such tax lien may become a
lien on any surplus moneys which  may  result  from  such  sale,  to  be
determined  in  the  proceedings  for  the  distribution of such surplus
moneys. Where title to real property passes from an individual, or  from
a  corporation  owing no tax, to another corporation which is in default
for such tax, the lien herein provided shall not be  enforceable  except
as  to  any  equity  after the prior mortgage or purchase money mortgage
encumbrance.
(b) The director of finance may, upon application made to him and  the
payment  of  a  fee  of five dollars, release any real property from the
lien under this subdivision, provided payment be made to the director of
finance of such a sum as the director of  finance  shall  deem  adequate
consideration  for  such release, or deposit be made of such security or
such bond be filed as the director  of  finance  shall  deem  proper  to
secure  payment  of any such tax. The application for such release shall
contain an accurate description of the property to be released  together
with  such  information  as  the  director of finance may require.  Such
release may be recorded in any  office  in  which  conveyances  of  real
estate are entitled to be recorded.
(c)  All  taxes,  additions  to tax, penalties and interest which have
become a lien under this subdivision shall, after the expiration of  ten

years  from  date they become due and payable, cease to be a lien (1) as
to real estate in the hands of persons who are owners thereof who  would
be  purchasers  in  good  faith  but  for  such taxes, additions to tax,
penalties or interest and (2) as to the lien on real estate of mortgages
held  by persons who would be holders thereof in good faith but for such
taxes,  additions  to  tax,  penalties  or  interest,  as  against  such
purchasers  or  holders.  The  limitations herein provided for shall not
apply to any transfer from a corporation to a person or corporation with
intent to avoid payment of any taxes, or  where  with  like  intent  the
transfer  is  made  to  a grantee corporation, or any subsequent grantee
corporation, controlled by such grantor or which has  any  community  of
interest with it, either through stock ownership or otherwise.
§  84. Transferees.   1. General.--The liability, at law or in equity,
of a transferee of property of a taxpayer for any tax, additions to tax,
penalty or interest due the director of finance under this part or under
the named parts, shall be assessed, paid,  and  collected  in  the  same
manner and subject to the same provisions and limitations as in the case
of  the  tax  to  which the liability relates, except that the period of
limitations for assessment against the transferee shall be  extended  by
one  year  for  each  successive  transfer,  in order, from the original
taxpayer to the transferee involved, but not by more than three years in
the aggregate. The term  transferee  includes,  in  case  of  successive
transfers,  donee, heir, legatee, devisee, distributee, and successor by
merger, consolidation or other reorganization.
2. Exceptions.--
(a) If  before  the  expiration  of  the  period  of  limitations  for
assessment of liability of the transferee, a claim has been filed by the
director  of  finance  in any court against the original taxpayer or the
last preceding transferee based  upon  the  liability  of  the  original
taxpayer,  then  the period of limitation for assessment of liability of
the transferee shall in no event expire prior to  one  year  after  such
claim has been finally allowed, disallowed or otherwise disposed of.
(b)  If,  before  the expiration of the time prescribed in subdivision
one or the immediately preceding paragraph of this subdivision  for  the
assessment  of the liability, the director of finance and the transferee
have both consented in writing to its assessment after  such  time,  the
liability  may  be  assessed  at any time prior to the expiration of the
period agreed upon. The  period  so  agreed  upon  may  be  extended  by
subsequent  agreements  in  writing  made  before  the expiration of the
period previously agreed upon. For the purpose of determining the period
of limitation on credit or refund to the transferee or  overpayments  of
tax  made  by  such  transferee  or  overpayments  of  tax  made  by the
transferor as to which the transferee is legally entitled to  credit  or
refund,  such  agreement  and  any  extension thereof shall be deemed an
agreement and extension  thereof  referred  to  in  subdivision  two  of
section seventy-eight. If the agreement is executed after the expiration
of  the  period  of  limitation  for  assessment  against  the  original
taxpayer, then in applying the  limitations  under  subdivision  two  of
section seventy-eight on the amount of the credit or refund, the periods
specified in subdivision one of section seventy-eight shall be increased
by  the  period  from  the  date  of  such expiration to the date of the
agreement.
3. Period for assessment against certain transferors.--For purposes of
this section, if any person is deceased or is a  corporation  which  has
terminated  its  existence,  the  period  of  limitation  for assessment
against such person or corporation shall be the period that would be  in
effect had death or termination of existence not occurred.
4.  Evidence.--The  director  of  finance shall use his powers to make
available to the transferee evidence necessary to enable the  transferee
to determine the liability of the original taxpayer and of any preceding
transferees,  but  without  undue  hardship  to the original taxpayer or
preceding  transferee.  See subdivision three of section eighty for rule
as to burden of proof.
§ 85. Jeopardy assessment. 1. Authority for making.--If  the  director
of  finance  believes  that the assessment or collection of a deficiency
will be jeopardized by delay, he shall, notwithstanding  the  provisions
of section seventy-two immediately assess such deficiency (together with
all  interest,  penalties and additions to tax provided for by law), and
notice and demand shall be made by  the  director  of  finance  for  the
payment thereof.
2.  Notice  of  deficiency.--If the jeopardy assessment is made before
any notice in respect of  the  tax  to  which  the  jeopardy  assessment
relates  has been mailed under section seventy-two, then the director of
finance shall mail a notice under such section within sixty  days  after
the making of the assessment.
3.  Amount  assessable  before  decision  of director of finance.--The
jeopardy assessment may be made in respect of a  deficiency  greater  or
less  than that of which notice is mailed to the taxpayer and whether or
not the taxpayer has theretofore filed a petition with the  director  of
finance.  The  director of finance may, at any time before rendering his
decision, abate such assessment, or any unpaid portion thereof,  to  the
extent  that  he  believes the assessment to be excessive in amount. The
director of finance may in his decision redetermine the entire amount of
the deficiency  and  of  all  amounts  assessed  at  the  same  time  in
connection therewith.
4.  Amounts  assessable after decision of director of finance.--If the
jeopardy assessment is made  after  the  decision  of  the  director  of
finance  is rendered, such assessment may be made only in respect of the
deficiency determined by the director of finance in his decision.
5. Expiration of right to assess.--A jeopardy assessment  may  not  be
made  after  the decision of the director of finance has become final or
after the taxpayer has made an application for review of the decision of
the director of finance.
6. Collection of unpaid amounts.--When a petition has been filed  with
the  director  of  finance  and  when  the amount which should have been
assessed has been determined by a decision of the  director  of  finance
which has become final, then any unpaid portion, the collection of which
has  been  stayed  by  bond,  shall be collected as part of the tax upon
notice and demand from  the  director  of  finance,  and  any  remaining
portion  of  the  assessment  shall  be  abated.  If  the amount already
collected exceeds the amount determined as the amount which should  have
been assessed, such excess shall be credited or refunded to the taxpayer
as  provided  in  section  seventy-seven  without  the  filing  of claim
therefor. If the amount determined as the amount which should have  been
assessed  is  greater  than  the  amount  actually  assessed,  then  the
difference shall be assessed and shall be collected as part of  the  tax
upon notice and demand from the director of finance.
7.  Abatement if jeopardy does not exist.--The director of finance may
abate the jeopardy assessment if he finds that jeopardy does not  exist.
Such  abatement  may  not  be  made  after a decision of the director of
finance in respect of  the  deficiency  has  been  rendered  or,  if  no
petition  is filed with the director of finance, after the expiration of
the period for filing such petition. The period  of  limitation  on  the
making  of  assessments  and  levy  or  a  proceeding for collection, in
respect of any deficiency,  shall  be  determined  as  if  the  jeopardy

assessment  so abated had not been made, except that the running of such
period shall in any event be suspended for the period from the  date  of
such jeopardy assessment until the expiration of the tenth day after the
day on which such jeopardy assessment is abated.
8. Bond to stay collection.--The collection of the whole or any amount
of  any jeopardy assessment may be stayed by filing with the director of
finance, within such time as may be fixed by regulation, a  bond  in  an
amount  equal to the amount as to which the stay is desired, conditioned
upon the payment of the amount  (together  with  interest  thereon)  the
collection  of  which is stayed at the time at which, but for the making
of the jeopardy assessment, such amount would be due. Upon the filing of
the bond the collection of so much of the amount assessed as is  covered
by  the bond shall be stayed. The taxpayer shall have the right to waive
such stay at any time in respect of the whole or any part of the  amount
covered  by  the bond, and if as a result of such waiver any part of the
amount covered by the bond is paid, then the bond shall at  the  request
of  the  taxpayer,  be  proportionately  reduced.  If any portion of the
jeopardy assessment is abated,  or  if  a  notice  of  deficiency  under
section  seventy-two  is  mailed to the taxpayer in a lesser amount, the
bond shall, at the request of the taxpayer, be proportionately reduced.
9. Petition to director of finance.--If the bond is given  before  the
taxpayer  has  filed  its  petition under section eighty, the bond shall
contain a further condition that if a petition is not filed  within  the
period  provided  in  such  section,  then the amount, the collection of
which is stayed by the bond, will be paid on notice and  demand  at  any
time after the expiration of such period, together with interest thereon
from  the  date  of the jeopardy notice and demand to the date of notice
and demand under this subdivision. The bond shall  be  conditioned  upon
the payment of so much of such assessment (collection of which is stayed
by  the  bond) as is not abated by a decision of the director of finance
which has become final. If the director of finance determines  that  the
amount  assessed  is  greater  than  the  amount  which should have been
assessed, then the bond shall,  at  the  request  of  the  taxpayer,  be
proportionately  reduced when the decision of the director of finance is
rendered.
10.   Stay   of   sale   of   seized   property   pending   director's
decision.--Where  a jeopardy assessment is made, the property seized for
the collection of the tax shall not be sold--
(a) if subdivision two is applicable, prior to  the  issuance  of  the
notice  of deficiency and the expiration of the time provided in section
eighty for filing a petition with the director of finance, and
(b) if a petition is filed  with  the  director  of  finance  (whether
before  or  after  the making of such jeopardy assessment), prior to the
expiration of the period during which the assessment of  the  deficiency
would be prohibited if subdivision one were not applicable.
Such  property may be sold if the taxpayer consents to the sale, or if
the director of finance determines that the expenses of conservation and
maintenance will greatly reduce the net proceeds, or if the property  is
perishable.
11.   Interest.--For   the  purpose  of  subdivision  one  of  section
seventy-five, the last date prescribed for payment shall  be  determined
without  regard  to  any notice and demand for payment issued under this
section prior to the last date otherwise prescribed for such payment.
12. Early termination of taxable year.--If  the  director  of  finance
finds  that  a taxpayer designs quickly to remove its property from this
state, or to conceal its property  therein,  or  to  do  any  other  act
tending   to  prejudice  or  to  render  wholly  or  partly  ineffectual
proceedings to collect the tax for the current or the preceding  taxable

year  unless  such proceedings be brought without delay, the director of
finance shall declare the taxable period for such  taxpayer  immediately
terminated, and shall cause notice of such finding and declaration to be
given  the taxpayer, together with a demand for immediate payment of the
tax for the taxable period so declared terminated and of the tax for the
preceding taxable year or so much of such tax as is unpaid,  whether  or
not  the  time otherwise allowed by law for filing return and paying the
tax has expired; and such taxes shall thereupon become  immediately  due
and  payable. If any proceeding brought to enforce payment of taxes made
due and payable by virtue of the provisions  of  this  subdivision,  the
finding of the director of finance made as herein provided, whether made
after  notice  to  the  taxpayer  or  not,  shall  be  for  all purposes
presumptive evidence of jeopardy.
13. Reopening of taxable period.-- Notwithstanding the termination  of
the  taxable  period  of  the  taxpayer  by  the director of finance, as
provided in subdivision twelve, the director of finance may reopen  such
taxable  period  each  time  the  taxpayer  is  found by the director of
finance to have received income, within the current taxable year,  since
the  termination  of  such period. A taxable period so terminated by the
director of finance may be reopened by the taxpayer if it files with the
director of finance a true and accurate return under any  of  the  named
parts  for  such taxable period, together with such other information as
the director of finance may by regulations prescribe.
14. Furnishing of bond where taxable year is closed by the director of
finance.--Payment of taxes shall not  be  enforced  by  any  proceedings
under  the  provisions  of subdivision twelve prior to the expiration of
the time otherwise  allowed  for  paying  such  taxes  if  the  taxpayer
furnishes,  under  regulations  prescribed by the director of finance, a
bond to insure the timely making of returns with respect to, and payment
of, such taxes or any taxes for prior years.
§ 86. Criminal penalties.  1. Attempt to evade  tax.--Any  corporation
or  person  who, with intent to evade any tax or any requirement of this
part or of any of the named parts, or  any  lawful  requirement  of  the
director  of  finance thereunder, shall fail to pay the tax, or to make,
render, sign or certify any return or declaration of estimated  tax,  or
to  supply  any  information  within  the  time required by or under the
provisions of this part or of any of the named parts, or who  with  like
intent,  shall  make,  render,  sign  or certify any false or fraudulent
return,  declaration  or  statement,  or  shall  supply  any  false   or
fraudulent information, shall be guilty of a misdemeanor and shall, upon
conviction,  be  fined  not  to  exceed  five  thousand  dollars  or  be
imprisoned not to exceed one year, or both, at  the  discretion  of  the
court.  The  term  "person" as used in this section includes an officer,
employee or agent of a corporation who  as  such  officer,  employee  or
agent  is  under  a  duty  to  perform  the  act in respect of which the
violation occurs.
2. Limitation.--Notwithstanding the provisions of section one  hundred
forty-two  of  the  code  of  criminal  procedure or of any other law, a
prosecution for any offense under this section may be commenced  at  any
time  not  later  than three years after the commission of such offense,
provided that, if such offense is the failure to do an act  required  by
or  under the provision of this part to be done before a certain date, a
prosecution for such offense may be commenced not later than three years
after such date.
3. Two or more charges.--In the prosecution  of  offenses  under  this
section,  if  there  are  two  or  more  charges  against  any person or
corporation, involving a violation or violations  of  any  provision  or
provisions  of  this  part or of any of the named parts, whether for the

same  or  different  taxable  years,  instead   of   returning   several
indictments  or  filing several informations, all of such charges may be
joined in one indictment or information, in separate counts, and if  two
or  more  indictments  are found, or two or more informations are filed,
the court may order them to be consolidated. If a person or  corporation
shall be convicted of two or more offenses constituting different crimes
set  forth  in  different counts of one indictment or information, or in
separate  indictments  or  informations  consolidated  as   hereinbefore
provided, the court may impose a separate sentence for each offense, and
if imprisonment is imposed, the court may order any of such sentences to
be served concurrently or consecutively.
4.  Miscellaneous  rules.--  Any prosecution under this section may be
conducted in any county where the person or  corporation  to  whose  tax
liability the proceeding relates resides, or has a place of business, or
from  which  such  person  or corporation received any income, or in any
county in which any such crime is committed. The corporation counsel  of
the  city  imposing  the tax shall have concurrent jurisdiction with any
district attorney in the prosecution of any offenses under this section.
If the provisions of this section conflict with those contained  in  any
other  law,  this section shall control. The certificate of the director
of finance to the effect that a tax has not been paid, that a return  or
declaration of estimated tax has not been filed, or that information has
not  been  supplied, as required by or under the provisions of this part
or of any of the named parts, shall be prima facie  evidence  that  such
tax  has  not  been  paid,  that such return or declaration has not been
filed, or that such information has not been supplied. All fines  levied
under  this  section  shall  be  paid  to  the  director  of finance and
deposited in the same manner as revenues collected or received under any
of the named parts.
§ 87. General powers of director of finance. 1. General.--The director
of finance shall administer and enforce the tax  imposed  by  the  named
parts  and  he  is authorized to make such rules and regulations, and to
require such facts and information  to  be  reported,  as  he  may  deem
necessary to enforce the provisions of this part and of the named parts;
and  he  may  delegate  his powers and functions under all parts of this
title to one of his deputies or to any  employee  or  employees  of  his
department.
2.  Examination  of  books and witnesses.--The director of finance for
the purpose of ascertaining the correctness of any return,  or  for  the
purpose of making an estimate of tax liability of any corporation, shall
have  power  to  examine  or  to cause to have examined, by any agent or
representative designated by it for that  purpose,  any  books,  papers,
records or memoranda bearing upon the matters required to be included in
the  return, and may require the attendance of the corporation rendering
the return through any officer or employee of such corporation,  or  the
attendance of any other person having knowledge in the premises, and may
take  testimony  and  require  proof  material for his information, with
power to administer oaths to such person or persons.
3. Abatement authority.--The director of finance, of his  own  motion,
may  abate  any  small  unpaid  balance  of an assessment of tax, or any
liability in respect thereof, if  the  director  of  finance  determines
under  uniform  rules  prescribed  by  him  that  the administration and
collection costs involved would not warrant  collection  of  the  amount
due.  He  may  also  abate, of his own motion, the unpaid portion of the
assessment of any tax or any liability  in  respect  thereof,  which  is
excessive  in  amount, or is assessed after the expiration of the period
of  limitation  properly  applicable  thereto,  or  is  erroneously   or

illegally  assessed. No claim for abatement under this subdivision shall
be filed by a taxpayer.
4.  Special  refund  authority.--Where no questions of fact or law are
involved and it appears from the records of the director of finance that
any moneys  have  been  erroneously  or  illegally  collected  from  any
taxpayer or other person, or paid by such taxpayer or other person under
a mistake of facts, pursuant to the provisions of this part or of any of
the  named parts, the director of finance at any time, without regard to
any period of limitations, shall have the power, upon making a record of
his reasons therefor in writing, to cause such moneys so paid and  being
erroneously and illegally held to be refunded.
5.  Authority  to set interest rates.--The commissioner of finance, by
regulation, may set the rate of interest to be paid pursuant to sections
six and eight  of  part  two,  sections  seventy-five,  seventy-six  and
seventy-nine  of this part, and those sections of any local law imposing
a tax such as is imposed by article thirty-two  of  the  tax  law  which
correspond  to  sections fourteen hundred sixty-one and fourteen hundred
sixty-three of the tax law. Such rate shall be the same  for  each  such
section  and  shall be not less than six percent per annum nor more than
the rate of interest prescribed by the banking board pursuant to section
fourteen-a of the banking law, but if the commissioner  of  finance  has
not set such rate, interest at six percent per annum shall apply, except
that  for  purposes  of  subdivision  five  of section eight of part two
interest at the rate of four percent per annum shall apply. Any rate set
by the commissioner of finance shall go into effect not less than  sixty
days  after the regulation is promulgated, and shall apply only to taxes
due or paid for a calendar or fiscal year  or  other  period  commencing
after the effective date of such regulation.
6.  Interest  required  to  be  paid.--In  computing the amount of any
interest required to be paid under this part or any of the  named  parts
by  the  commissioner of finance or by the taxpayer, or any other amount
determined by reference to such amount of interest,  such  interest  and
such  amount shall be compounded daily. The preceding sentence shall not
apply for purposes of computing the amount of any addition  to  tax  for
failure  to  pay  estimated  tax  under  subdivision  three  of  section
seventy-six of this part.
7. Fractional parts of a  dollar.--The  commissioner  of  finance  may
provide  by  regulation  (a)  that  in  any  determination,  assessment,
collection, refund or credit under the named parts, a fractional part of
a dollar may be disregarded unless it amounts to fifty cents or more, in
which case it shall be increased to one dollar, and (b) that any  person
making  a  return,  report or other statement required to be filed under
the named parts, may elect with respect to any  amount  required  to  be
shown  thereon,  if  such  amount  is  other than a whole dollar amount,
either to disregard the fractional part of a dollar or to disregard  the
fractional part of a dollar unless it amounts to fifty cents or more, in
which  case the amount (determined without regard to the fractional part
of the dollar) shall be increased by one dollar; provided, however, that
such election shall not be applicable to items which must be taken  into
account  in  making  the  computations necessary to determine the amount
required to be shown on any such return, report or other  statement  but
shall  be  applicable  only  to  the  final  amount required to be shown
thereon.
§ 88. Secrecy required of official; penalty for violation.  1.  Except
in accordance with proper judicial order or  as  otherwise  provided  by
law, it shall be unlawful for the director of finance, the department of
finance  of  the  city,  any  officer  or  employee of the department of
finance of the city, or any person who, pursuant  to  this  section,  is

permitted  to  inspect  any report or return, or to whom any information
contained in any report or return, is  furnished,  to  divulge  or  make
known in any manner the amount of income or any particulars set forth or
disclosed  in  any  report  or  return,  under  this title. The officers
charged with the custody of  such  reports  and  returns  shall  not  be
required  to  produce  any  of them or evidence of anything contained in
them in any action or proceeding in any court, except on behalf  of  the
city  in  an  action or proceeding involving the collection of a tax due
under this title to which the city, is a party  or  a  claimant,  or  on
behalf  of any party to any action or proceeding under the provisions of
this title when the reports, returns or facts shown thereby are directly
involved in such action or proceeding, in any of which events the  court
may  require  the  production  of, and may admit in evidence, so much of
said reports or returns or of the facts shown thereby as  are  pertinent
to  the  action or proceeding, and no more. The director of finance may,
nevertheless, publish a copy  or  a  summary  of  any  determination  or
decision  rendered  after  the  formal  hearing  provided for in section
eighty of this part.  Nothing herein shall be construed to prohibit  the
delivery  to  a taxpayer or its duly authorized representative of a copy
of any report filed by it, nor to prohibit the publication of statistics
so classified as to prevent the identification of particular reports  or
returns  and  the  items  thereof,  or the inspection by the corporation
counsel or other legal representatives of the  city  of  the  report  or
return  of  any taxpayer which shall bring action to set aside or review
the tax based thereon, or against which an action  or  proceeding  under
this  title  or under any local law of the city imposed as authorized by
the act authorizing the adoption of this title has been  recommended  by
the  director  of  finance  or  the  corporation  counsel  or  has  been
instituted, or the inspection of the reports or returns of any  taxpayer
by the duly designated officers or employees of the city for purposes of
an  audit under this title or an audit authorized by the act authorizing
the adoption of this title; and nothing in this part shall be  construed
to  prohibit  the  publication of the percentage of capital stock, gross
premiums or net income of any corporation which may be  required  to  be
allocated  within the city for purposes of the tax imposed by any of the
named parts.
2. Any offense against  subdivision  one  of  this  section  shall  be
punished by a fine not exceeding one thousand dollars or by imprisonment
not  exceeding one year, or both, at the discretion of the court, and if
the offender be an officer or employee of the state or city, he shall be
dismissed from office and be incapable of holding any public  office  in
the city or this state for a period of five years thereafter.
3.  Notwithstanding  any  provisions  of this section, the director of
finance may permit the secretary of the treasury of the United States or
his delegates, or the proper officer of this or any other state  charged
with tax administration, or the authorized representative of either such
officer,  to inspect the returns or reports filed under any of the named
parts, or may furnish to such officer or his  authorized  representative
an  abstract  of  any  such  return  or  report  or  supply  information
concerning an item contained in any such return or report, or supply him
with information concerning an item contained  in  any  such  return  or
report,  or  disclosed by an investigation of tax liability under any of
the  named  parts,  but  such  permission  shall  be  granted  or   such
information  furnished to such officer or his representative only if the
laws of the United States or of such state, as the case  may  be,  grant
substantially  similar  privileges  to  the director of finance and such
information is to be used for tax purposes only;  and  provided  further
the  director of finance may furnish to the secretary of the treasury of

the United States or his delegates or to the tax commission of the state
of New York or its delegates such returns or reports filed under any  of
the  named  parts  and other tax information, as he may consider proper,
for  use in court actions or proceedings under the internal revenue code
or the tax law of the state of New  York,  whether  civil  or  criminal,
where  a  written  request  therefor  has  been  made to the director of
finance by the secretary of the treasury or by such tax commission or by
their delegates, provided the laws of the United States or the  laws  of
the  state  of  New  York  grant  substantially  similar  powers  to the
secretary of the treasury or his delegates or to such tax commission  or
its  delegates.  Where  the director of finance has so authorized use of
returns, reports or other information in such  actions  or  proceedings,
officers  and employees of the department of finance may testify in such
actions or proceedings in respect to  such  returns,  reports  or  other
information.
§  89.  Disposition  of  revenues.    All  revenues resulting from the
imposition of the taxes under this title shall be paid into the treasury
of the city and shall be credited to and deposited in the  general  fund
of  the  city,  but  no  part  of  such  revenues may be expended unless
appropriated in the annual budget of the city.
§ 90. Inconsistencies with other laws.  If any provision of this title
is inconsistent with,  in  conflict  with,  or  contrary  to  any  other
provision  of  law, such provision of this title 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.
§ 91. Effect  of  invalidity  in  part.    If  any  clause,  sentence,
paragraph,  subsection,  section  or  other  part  of  this title 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 title or the application of such part held invalid, to
any other  person  or  circumstances,  but  shall  be  confined  in  its
operation  to  the  clause,  sentence, paragraph, subsection, section or
other part thereof directly involved in such holding, or to  the  person
and circumstances therein involved.
§  2.  Notwithstanding  any provision of law to the contrary, any city
having a population of one million or more,  acting  through  its  local
legislative  body, is hereby authorized and empowered to adopt and amend
local  laws  imposing  for  any  such  city  a  tax  on   unincorporated
businesses.  The  terms  of  such  local law shall be, substantially, as
follows except that any such local law may be amended for the purpose of
conforming it with similar provisions of article twenty-three of the tax
law as presently in effect or as it may be amended and except  that  the
appendix  in  any  such  local  law  may  be  amended for the purpose of
conforming it with the United States  internal  revenue  code  or  other
federal  laws relating to taxation as presently in effect or as they may
be amended;
CITY UNINCORPORATED BUSINESS INCOME TAX
Section 101.   Imposition of tax.
101-a. Taxable years to which tax applies; tax for taxable years
beginning prior to  and  ending  after  January  first,
nineteen hundred sixty-six.
102.   Meaning of terms.
103.   Unincorporated business defined.
104.   Unincorporated business taxable income.
105.   Unincorporated business gross income.
106.   Unincorporated business deductions.
107.   Allocation to the city.
108.   Deductions not subject to allocation.
109.   Unincorporated business exemptions.
115.   Declarations of estimated tax.
116.   Payments of estimated tax.
121.   Accounting periods and methods.
122.   Returns, payment of tax.
123.   Time and place for filing returns and paying tax.
124.   Signing of returns and other documents.
125.   Extensions of time.
126.   Requirements  concerning  returns,  notices,  records and
statements.
127.   Report of change in federal taxable income.
127-A. Reporting  of  changes  or  corrections  in   sales   and
compensating use tax liability.
128.   Change of election.
129.   Notice of deficiency.
130.   Assessment.
131.   Limitations on assessment.
132.   Interest on underpayment.
133.   Additions to tax and civil penalties.
134.   Overpayment.
135.   Limitations on credit or refund.
136.   Interest on overpayment.
137.   Petition to director of finance.
138.   Review of director's decision.
139.   Mailing rules; holidays.
140.   Collection, levy and liens.
141.   Transferees.
142.   Jeopardy assessment.
143.   Criminal penalties.
144.   Armed forces relief provisions.
145.   General powers of director of finance.
146.   Secrecy requirement and penalties for violation.
147.   Effect of invalidity in part.
148.   Inconsistencies with other laws.
149.   Deposit  and  disposition  of  revenues  by  director  of
finance*.
* Does not conform to section heading in text of law.
§ 101. Imposition of tax. (a) General.--A tax  at  the  rate  of  four
percent  is hereby imposed for each taxable year, beginning with taxable
years ending after January first, nineteen  hundred  sixty-six,  on  the
unincorporated  business taxable income of every unincorporated business
wholly or partly carried on within  the  city.  This  tax  shall  be  in
addition to any other taxes imposed.
(b)  Credit against tax.--If the tax computed under subdivision (a) is
six hundred dollars or less, a credit shall be allowed  for  the  entire
amount  of  such  tax. If the tax computed under subdivision (a) exceeds
six hundred dollars but is less than eight  hundred  dollars,  a  credit
shall  be  allowed in the amount determined by multiplying such tax by a
fraction the numerator of which  is  eight  hundred  dollars  minus  the
amount  of such tax and the denominator of which is two hundred dollars.
If the tax computed under subdivision (a) is eight  hundred  dollars  or
more,  no  credit  shall  be  allowed.  If  separate partnerships, joint
ventures or other unincorporated entities have  substantially  the  same
partners  or members, each of such partners or members has substantially
the same interest in each of such partnerships, joint ventures or  other
unincorporated  entities, and such partnerships, joint ventures or other
unincorporated entities are engaged in substantially the  same  business

or  businesses  or  in  substantially  related  businesses,  all of such
partnerships, joint ventures or other unincorporated entities  shall  be
treated as one unincorporated business for purposes of this subdivision.
The  preceding  sentence  shall  not be construed to limit or affect the
meaning or application of any other provision of this title.
(c) Credit relating to stock transfer tax.
(1) In addition to any other credit permitted under  this  section,  a
taxpayer  shall  be  allowed a credit, to be credited or refunded in the
manner hereinafter provided in this subdivision, against the tax imposed
by this title after  the  allowance  of  any  other  credit  under  this
section.  The  amount  of  such credit shall be fifty percent of the tax
incurred in market making transactions under the provisions  of  article
twelve of the tax law on such transactions subject to such tax occurring
on and after August first, nineteen hundred seventy-six and paid by such
taxpayer  (except when such tax shall have been paid pursuant to section
two hundred seventy-nine-a of such tax law).
2. For purposes of this subdivision:
(a) the term "taxpayer" shall mean any unincorporated business subject
to tax under this section registered with the United  States  securities
and  exchange  commission  in  accordance with subsection (b) of section
fifteen of the securities exchange act of nineteen hundred  thirty-four,
as  amended,  and  acting  as  a  dealer  in  a transaction described in
subparagraph (b) of this paragraph, and
(b) the term "market making transaction" shall  mean  any  transaction
involving  a  sale  (including  a  short  sale) by a dealer of shares or
certificates subject to the tax imposed by article  twelve  of  the  tax
law, provided such shares or certificates are sold:
(i) as stock in trade or inventory or as property held for sale in the
ordinary  course of such dealer's trade or business (including transfers
which are part of an underwriting),
(ii) in (a) a bona fide arbitrage transaction; (b) a bona  fide  hedge
transaction  involving  a  long or short position in any equity security
and a long or short position in  a  security  entitling  the  holder  to
acquire   or  sell  such  equity  security;  or  (c)  a  risk  arbitrage
transaction in connection with  a  merger,  acquisition,  tender  offer,
recapitalization, reorganization, or similar transaction, or
(iii) to offset a transaction made in error.
Provided,  however,  that,  except  as  to  clause  (ii)  (c)  of this
paragraph, the term "market making transaction" shall  not  include  any
sale  of shares or certificates identified in such dealer's records as a
security held for  investment  within  the  meaning  of  section  twelve
hundred thirty-six of the internal revenue code.
(3)  The  credit  allowed  under this subdivision for any taxable year
shall be deemed to be an overpayment  of  tax  by  the  taxpayer  to  be
credited  or  refunded  in accordance with the provisions of section one
hundred thirty-four of this chapter, except  as  otherwise  provided  in
subdivision  (g)  of  section  one  hundred  sixteen of this chapter and
subdivision (g) of section  one  hundred  twenty-two  of  this  chapter;
provided,  however,  that  the provisions of this title notwithstanding,
the amount to be refunded pursuant to this subdivision shall not be paid
prior to the first day of the eighth month following the  close  of  the
taxable  year,  and  the  provisions  of  subdivision (c) of section one
hundred thirty-six of this chapter notwithstanding,  interest  shall  be
allowed and paid on the overpayment of the credit under this subdivision
from  the  first  day  of  the eleventh month following the close of the
taxable year, or three months after a claim for  the  credit  or  refund
provided for in this subdivision has been filed, whichever is later.
(4) Provided, however, that the credit provided under this subdivision
shall  be allowed only to the extent that the amount of credit allowable
with respect to market making transactions under the provisions of  this
subdivision  (determined  without  regard  to  the  provisions  of  this
paragraph)  exceeds  fifty  percent  of  all rebates (provided under the
provisions of section two hundred eighty-a of article twelve of the  tax
law)  allowed  for  such  taxes  incurred  in  the  same  market  making
transactions with respect to which the credit is determined.  No  credit
shall be allowed under this subdivision with respect to any tax incurred
in  market  making  transactions  occurring  on  or after October first,
nineteen hundred eighty-one.
(d) Credit relating to certain sales and compensating use  taxes.  (1)
In  addition  to the credits allowed by subdivisions (b) and (c) of this
section, a taxpayer shall be allowed a credit against the tax imposed by
this title to be credited or refunded in the manner hereinafter provided
in this section. The amount of such credit shall be the  excess  of  (A)
the amount of sales and compensating use taxes imposed by section eleven
hundred  seven  of  the tax law during the taxpayer's taxable year which
became legally due on or after and was paid  on  or  after  July  first,
nineteen hundred seventy-seven, less any credit or refund of such taxes,
with  respect  to  the  purchase  or use by the taxpayer of machinery or
equipment for use or  consumption  directly  and  predominantly  in  the
production    of   tangible   personal   property,   gas,   electricity,
refrigeration  or  steam  for  sale,   by   manufacturing,   processing,
generating,  assembling,  refining,  mining  or extracting, or telephone
central office equipment or station apparatus  or  comparable  telegraph
equipment for use directly and predominantly in receiving at destination
or  initiating  and  switching telephone or telegraph communication, but
not including parts with a useful life of one year or less or  tools  or
supplies  used in connection with such machinery, equipment or apparatus
over (B) the amount of any credit for such sales  and  compensating  use
taxes allowed or allowable against the taxes imposed by any local law of
the  city  imposing  a tax on utilities and vendors of utility services,
for any periods embraced within the taxable year of the  taxpayer  under
this  part.  (2)  The  credit allowed under this section for any taxable
year shall be deemed to be an overpayment of tax by the taxpayer  to  be
credited   or   refunded,  without  interest,  in  accordance  with  the
provisions of section one hundred thirty-four of this title.  (3)  Where
the  taxpayer  receives  a  refund  or  credit  of any tax imposed under
section eleven hundred seven of the tax law for which the  taxpayer  had
claimed a credit under the provisions of this section in a prior taxable
year,  the amount of such tax refund or credit shall be added to the tax
imposed by section one hundred one, and such amount shall be  subtracted
in  computing  unincorporated  business  taxable  income for the taxable
year.
(e) Credit relating to  certain  expenses  involved  in  the  cost  of
relocating  industrial  and  commercial employment opportunities. (1) In
addition to any other credit allowed by this section, a  taxpayer  shall
be  allowed a credit against the tax imposed by this part to be credited
or refunded in the manner hereinafter  provided  in  this  section.  The
amount of such credit shall be:
(A)  A maximum of three hundred dollars for each commercial employment
opportunity and a maximum of five hundred dollars  for  each  industrial
employment  opportunity  relocated  to the city from an area outside the
state. Such credit shall be  allowed  to  a  taxpayer  who  relocates  a
minimum  of  ten  employment  opportunities. The credit shall be allowed
against  employment  opportunity  relocation  costs  incurred   by   the
taxpayer.  The  credit allowed hereunder may be taken by the taxpayer in

whole or in part in the year in  which  the  employment  opportunity  is
relocated  by  such  taxpayer or either of the two years succeeding such
event.
The   director  of  finance  is  empowered  to  promulgate  rules  and
regulations and to prescribe the form of application to  be  used  by  a
taxpayer seeking the credit provided hereunder.
(B)  Definitions:  When used in this section, "Employment Opportunity"
means the creation of a full time position of gainful employment for  an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial   Employee"  means  one  engaged  in  the  manufacture  or
assembling of tangible goods or the processing of raw materials.
"Commercial Employee" means one engaged  in  the  buying,  selling  or
otherwise providing of goods or services other than on a retail basis.
"Retail"  means the selling or otherwise disposing of or furnishing of
tangible goods or services directly to the ultimate user or consumer.
"Full Time Position" means the hiring of an industrial  or  commercial
employee  in  a position of gainful employment where the number of hours
worked by such employee is not less than thirty hours during  any  given
work week.
"Employment  Opportunity Relocation Costs" means the costs incurred by
the taxpayer in moving furniture, files,  papers  and  office  equipment
into  the  city from a location outside the state; the costs incurred by
the taxpayer in the moving from a location outside the state; the  costs
of   installation  of  telephones  and  other  communications  equipment
required as a result of the relocation  to  the  city  from  a  location
outside the state; the cost incurred in the purchase of office furniture
and  fixtures  required as a result of the relocation to the city from a
location outside the state; and the cost of renovation of  the  premises
to  be  occupied  as  a result of the relocation provided, however, that
such renovation costs shall be allowable only in an  amount  which  does
not exceed seventy-five cents per square foot of the total area utilized
by the taxpayer in the occupied premises.
(2)  The  credit allowed under this section for any taxable year shall
be deemed to be an overpayment of tax by the taxpayer to be credited  or
refunded, without interest, in accordance with the provisions of section
one hundred thirty-four of this title.
(3)  Where the taxpayer receives a refund or credit of any tax imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under the provisions of this  section  in  a  prior
taxable  year, the amount of such tax refund or credit shall be added to
the tax imposed by section one hundred one, and  such  amount  shall  be
subtracted  in  computing unincorporated business taxable income for the
taxable year.
(f) Credit relating to the annual increase in certain  payments  to  a
landlord  by  a taxpayer relocating industrial and commercial employment
opportunities. (1) In addition to  any  other  credit  allowed  by  this
section, a taxpayer shall be allowed a credit against the tax imposed by
this  part  to  be credited or refunded, without interest, in the manner
hereinafter provided in this section.
(A) Where a taxpayer shall have relocated to the city from a  location
outside  the  state, and by such relocation shall have created a minimum
of one hundred industrial or commercial  employment  opportunities;  and
where  such  taxpayer  shall  have  entered into a written lease for the
relocation premises, the terms of  which  lease  provide  for  increased
additional  payments to the landlord which are based solely and directly
upon any increase or addition in real estate taxes imposed on the leased
premises, the taxpayer upon approval and certification by the industrial

and  commercial  incentive  board  as  hereinafter  provided,  shall  be
entitled to a credit against the tax imposed by this section. The amount
of  such  credit  shall  be:  An  amount  equal  to the annual increased
payments  actually made by the taxpayer to the landlord which are solely
and directly attributable to an increase or addition to the real  estate
tax  imposed upon the leased premises. Such credit shall be allowed only
to the extent that the taxpayer has not otherwise claimed said amount as
a deduction against the  tax  imposed  by  this  section,  has  met  the
requirements  of this section, and further, that the granting of the tax
credit to the applicant is in the "public interest." In determining that
the granting of the tax credit is in  the  public  interest,  the  board
shall  make affirmative findings that: the granting of the tax credit to
the applicant will not effect an undue  hardship  on  similar  taxpayers
already located within the city; the existence of this tax incentive has
been  instrumental  in bringing about the relocation of the applicant to
the city; and the granting of the tax credit will  foster  the  economic
recovery  and  economic  development  of  the  city.  The tax credit, if
approved and certified by the industrial and commercial incentive board,
shall be utilized annually on the  filing  of  its  tax  return  by  the
taxpayer  for the length of the term of the lease or for a period not to
exceed ten years from  the  date  of  relocation,  whichever  period  is
shorter.
(B)  Definitions.  When used in this section, "employment opportunity"
means the creation of a full time position of gainful employment for  an
industrial or commercial employee and the actual hiring of such employee
for the said position.
"Industrial   employee"  means  one  engaged  in  the  manufacture  or
assembling of tangible goods or the processing of raw materials.
"Commercial employee" means one engaged  in  the  buying,  selling  or
otherwise providing of goods or services other than on a retail basis.
"Retail"  means  the  selling  or otherwise disposing or furnishing of
tangible goods or services directly to the ultimate user or consumer.
"Full time position" means the hiring of an industrial  or  commercial
employee  in  a position of gainful employment where the number of hours
worked by such employee is not less than thirty hours during  any  given
work week.
"Industrial  and  commercial  incentive board" means the board created
pursuant to section four hundred eighty-nine-nn of the real property tax
law.
(2) The credit allowed under this section for any taxable  year  shall
be  deemed to be an overpayment of tax by the taxpayer to be credited or
refunded, without interest, in accordance with the provisions of section
one hundred thirty-four of this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had  claimed  a  credit  under the provisions of this section in a prior
taxable year, the amount of such tax refund or credit shall be added  to
the  tax  imposed  by  section  one  hundred one of this title, and such
amount shall be subtracted in computing unincorporated business  taxable
income for the taxable year.
(g)  Credit  relating to certain sales and compensating use taxes. (1)
In addition to any other credit allowed  by  this  section,  a  taxpayer
shall  be  allowed  a credit against the tax imposed by this title to be
credited or refunded in the manner hereinafter provided in this section.
The amount of such credit shall be equal to one-half the amount of sales
and compensating use taxes imposed by section eleven  hundred  seven  of
the  tax law during the taxpayer's taxable year which became legally due
on or after and was paid  on  or  after  July  first,  nineteen  hundred

eighty-one,  less  one-half  of any credit or refund of such taxes, with
respect to the purchase or use by the  taxpayer  of  (i)  parts  with  a
useful  life  of  one  year  or  less,  tools  and  supplies  for use or
consumption  directly  and  predominantly  in the production of tangible
personal property, gas, electricity, refrigeration or steam for sale  by
manufacturing,  processing,  generating, assembling, refining, mining or
extracting or for use directly and  predominantly  in  or  on  telephone
central  office  equipment  or station apparatus or comparable telegraph
equipment where  such  equipment  or  apparatus  is  used  directly  and
predominantly  in  receiving  at destination or initiating and switching
telephone  or  telegraph  communication,  and  (ii)  the   services   of
installing,  repairing,  maintaining  or servicing the tangible personal
property described in subdivision (d) of  this  section,  including  the
parts  with  a  useful  life  of  one  year  or less, tools and supplies
described in clause (i) of this paragraph. The foregoing credit shall be
reduced by the amount of any credit for such sales and compensating  use
taxes allowed or allowable against the taxes imposed by any local law of
the  city  imposing  a tax on utilities and vendors of utility services,
for any periods embraced within the taxable year of the  taxpayer  under
this title.
(2)  The  credit  allowed  under this subdivision for any taxable year
shall be deemed to be an overpayment  of  tax  by  the  taxpayer  to  be
credited  or  refunded  in accordance with the provisions of section one
hundred thirty-four of this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under this subdivision in a prior taxable year, the
amount of such tax refund or credit shall be added to the tax imposed by
section  one  hundred  one,  and  such  amount  shall  be  subtracted in
computing unincorporated business taxable income for the taxable year.
(h) Credit relating to certain sales and  compensating  use  taxes  on
electricity used in manufacturing, processing or assembling.
(1)  (a)  In  addition  to any other credit allowed by this section, a
taxpayer shall be allowed a credit against the tax imposed by this title
to be credited or refunded in the manner hereinafter  provided  in  this
subdivision.  The  amount of such credit shall be equal to the amount of
sales and compensating use taxes imposed by section eleven hundred seven
of the tax law during the taxpayer's taxable year which  became  legally
due  on  or  after and was paid on or after July first, nineteen hundred
eighty-four, less any credit or refund of such taxes,  with  respect  to
the  purchase  or use by the taxpayer of electricity or electric service
of whatever nature for use or consumption directly  and  exclusively  in
the  production of tangible personal property for sale by manufacturing,
processing or assembling. Provided, however, the amount  of  the  credit
allowed  by  this paragraph shall be reduced by the amount of any rebate
or rebates received during the taxpayer's taxable  year  pursuant  to  a
local  law  enacted in accordance with article two-G of the general city
law.
(b) In addition to  any  other  credit  allowed  by  this  section,  a
taxpayer shall be allowed a credit against the tax imposed by this title
to  be  credited  or refunded in the manner hereinafter provided in this
subdivision. The amount of such credit shall be equal to the  percentage
specified  below  of  the  amount  of  sales  and compensating use taxes
imposed by section eleven hundred  seven  of  the  tax  law  during  the
taxpayer's  taxable  year  which  became legally due on or after and was
paid on or after July first, nineteen  hundred  eighty-eight,  less  any
credit or refund of such taxes, with respect to the purchase or use by a
nonresidential  energy user, as such term is defined in article two-G of

the general city law, of electricity or electric  service  purchased  at
retail  from  the  power  authority of the state of New York or the port
authority of the state of New York and New  Jersey,  provided,  however,
that no credit shall be allowed with respect to purchases from such port
authority unless it shall be an "eligible vendor of energy services", as
defined  in paragraph one of subdivision (c) of section twenty-five-v of
the general city  law,  and  shall  have  obtained  a  certification  of
eligibility  in accordance with subdivision (b) of section twenty-five-w
of such law; during the period commencing July first,  nineteen  hundred
eighty-eight and ending June thirtieth, nineteen hundred eighty-nine the
credit  shall  be  in  an amount equal to twenty-five per centum of such
sales and compensating use taxes imposed; during the  period  commencing
July  first,  nineteen  hundred  eighty-nine  and ending June thirtieth,
nineteen hundred ninety the credit shall be in an amount equal to  fifty
per  centum  of  such  taxes  imposed; during the period commencing July
first, nineteen hundred  ninety  and  ending  June  thirtieth,  nineteen
hundred   ninety-one   the  credit  shall  be  in  an  amount  equal  to
seventy-five per centum of such taxes imposed;  and  during  the  period
commencing  July  first,  nineteen hundred ninety-one and thereafter the
credit shall be in an amount equal to one hundred  per  centum  of  such
taxes imposed.
(c)  In  addition  to  any  other  credit  allowed  by this section, a
taxpayer shall be allowed a credit against the tax imposed by this title
to be credited or refunded in the manner hereinafter  provided  in  this
subdivision.  The amount of such credit shall be equal to the percentage
specified below of the  amount  of  sales  and  compensating  use  taxes
imposed  by  section  eleven  hundred  seven  of  the tax law during the
taxpayer's taxable year which became legally due on  or  after  and  was
paid  on  or  after  July first, nineteen hundred eighty-eight, less any
credit or refund of such taxes, with respect to the purchase or use by a
non-residential fuel user of fuel or fuel service except  fuel  used  to
operate  motor  vehicles:  during  the  period  commencing  July  first,
nineteen  hundred  eighty-eight  and  ending  June  thirtieth,  nineteen
hundred   eighty-nine  the  credit  shall  be  in  an  amount  equal  to
twenty-five per centum of such sales and compensating use taxes imposed;
during the period commencing July first,  nineteen  hundred  eighty-nine
and  ending  June thirtieth, nineteen hundred ninety the credit shall be
in an amount equal to fifty per centum of such taxes; during the  period
commencing   July   first,  nineteen  hundred  ninety  and  ending  June
thirtieth, nineteen hundred ninety-one the credit shall be in an  amount
equal  to  seventy-five  per centum of such taxes; and during the period
commencing July first, nineteen hundred ninety-one  and  thereafter  the
credit  shall  be  in  an amount equal to one hundred per centum of such
taxes  imposed.  For   purposes   of   this   subparagraph,   the   term
"non-residential fuel user" shall mean any non-residential user of fuel,
except  a  government  agency or instrumentality thereof, public benefit
corporation, or any entity that is exempt from  the  sales  tax  imposed
pursuant  to  section eleven hundred seven of the tax law, provided that
the term "non-residential fuel user"  shall  not  include  an  owner  or
operator of residential income producing property, except a hotel.
(2)  The  credit  allowed  under this subdivision for any taxable year
shall be deemed to be an overpayment  of  tax  by  the  taxpayer  to  be
credited   or   refunded,  without  interest,  in  accordance  with  the
provisions of section one hundred thirty-four of this title.
(3) Where the taxpayer receives a refund or credit of any tax  imposed
under section eleven hundred seven of the tax law for which the taxpayer
had claimed a credit under this subdivision in a prior taxable year, the
amount of such tax refund or credit shall be added to the tax imposed by

this   section   and  such  amount  shall  be  subtracted  in  computing
unincorporated business taxable income for the taxable year.
(j)  Relocation  and employment assistance credit.  (1) In addition to
any other credit allowed by this part, a taxpayer that has obtained  the
certifications   in   accordance   with   subdivision   (b)  of  section
twenty-five-z of the general city law shall be allowed a credit  against
the  tax  imposed  by  this  part. The amount of the credit shall be the
amount determined by multiplying five hundred dollars or, in the case of
a taxpayer that has obtained pursuant to subdivision (b) of such section
twenty-five-z a certification of eligibility  dated  on  or  after  July
first,  nineteen  hundred  ninety-five,  one thousand dollars or, in the
case of an eligible business that has obtained pursuant  to  subdivision
(b)  of  such section twenty-five-z a certification of eligibility dated
on or after July first, two  thousand,  for  a  relocation  to  eligible
premises located within a revitalization area defined in subdivision (n)
of  section  twenty-five-y  of  the  general  city  law,  three thousand
dollars,  by  the  number  of  eligible  aggregate   employment   shares
maintained  by  the  taxpayer  during  the  taxable year with respect to
particular premises to  which  the  taxpayer  has  relocated;  provided,
however,  with  respect  to  a relocation for which no application for a
certificate of  eligibility  is  submitted  prior  to  July  first,  two
thousand   three,   to   eligible   premises   that  are  not  within  a
revitalization area, if  the  date  of  such  relocation  as  determined
pursuant to subdivision (j) of section twenty-five-y of the general city
law is before July first, nineteen hundred ninety-five, the amount to be
multiplied  by  the number of eligible aggregate employment shares shall
be five hundred dollars, and with respect to a relocation for  which  no
application  for a certificate of eligibility is submitted prior to July
first, two thousand three,  to  eligible  premises  that  are  within  a
revitalization  area,  if  the  date  of  such  relocation as determined
pursuant to subdivision (j)  of  such  section  is  before  July  first,
nineteen  hundred ninety-five, the amount to be multiplied by the number
of eligible aggregate employment shares shall be five  hundred  dollars,
and if the date of such relocation as determined pursuant to subdivision
(j)  of  such  section  is  on  or  after  July  first, nineteen hundred
ninety-five, and before July first, two thousand, one thousand  dollars;
provided, however, that no credit shall be allowed for the relocation of
any retail activity or hotel services; provided, further, that no credit
shall  be  allowed under this paragraph to any taxpayer that has elected
pursuant to subdivision (d) of section twenty-five-z of the general city
law to take such credit against a gross receipts  tax  imposed  under  a
local  law enacted pursuant to subdivision (a) of section twelve hundred
one of the tax law; and  provided  that  in  the  case  of  an  eligible
business  that  has obtained pursuant to subdivision (b) of such section
twenty-five-z  certifications  of  eligibility   for   more   than   one
relocation,  the  portion  of  the  total  amount  of eligible aggregate
employment shares to be multiplied by the  dollar  amount  specified  in
this  subdivision  for  each such certification of a relocation shall be
the number of total  attributed  eligible  aggregate  employment  shares
determined  with  respect to such relocation pursuant to subdivision (o)
of section twenty-five-y of the general city law. For purposes  of  this
section,  the  terms "eligible aggregate employment shares", "relocate",
"retail activity" and "hotel services" shall have the meanings  ascribed
by section twenty-five-y of the general city law.
(2) The credit allowed under this subdivision with respect to eligible
aggregate  employment  shares  maintained  with  respect  to  particular
premises to which the taxpayer has relocated shall be  allowed  for  the
first  taxable  year  during  which  such  eligible aggregate employment

shares are maintained with respect to such premises and for any  of  the
twelve   succeeding   taxable  years  during  which  eligible  aggregate
employment shares are maintained with respect to such premises; provided
that the credit allowed for the twelfth succeeding taxable year shall be
calculated  by  multiplying  the number of eligible aggregate employment
shares  maintained  with  respect  to  such  premises  in  the   twelfth
succeeding  taxable  year  by  the  lesser  of  one  and  a fraction the
numerator of which is such  number  of  days  in  the  taxable  year  of
relocation  less  the  number  of  days the eligible business maintained
employment shares in the  eligible  premises  in  the  taxable  year  of
relocation  and  the  denominator of which is the number of days in such
twelfth succeeding taxable year during  which  such  eligible  aggregate
employment  shares  are maintained with respect to such premises. Except
as provided in paragraph four of this subdivision, if the amount of  the
credit allowable under this section for any taxable year exceeds the tax
imposed  for such year, the excess may be carried over, in order, to the
five immediately  succeeding  taxable  years  and,  to  the  extent  not
previously  deductible, may be deducted from the taxpayer's tax for such
years.
(3) The credit allowable under this section shall be deducted prior to
the deduction of any other credit allowed by this title.
(4) In the case of a taxpayer that has  obtained  a  certification  of
eligibility  pursuant to subdivision (b) of section twenty-five-z of the
general city law dated on or  after  July  first,  two  thousand  for  a
relocation  to  eligible premises located within the revitalization area
defined in subdivision (n) of section twenty-five-y of the general  city
law,  the  credits  allowed  under this subdivision, or in the case of a
taxpayer that has relocated more than once, the portion of such  credits
attributed  to  such  certification of eligibility pursuant to paragraph
one of this subdivision, against the tax imposed by this chapter for the
taxable  year  of  such  relocation  and  for  the  four  taxable  years
immediately  succeeding  the  taxable  year of such relocation, shall be
deemed to be overpayments of tax by  the  taxpayer  to  be  credited  or
refunded, without interest, in accordance with the provisions of section
one  hundred  thirty-four  of  this  title. For such taxable years, such
credits or portions thereof may not be carried over  to  any  succeeding
taxable  year; provided, however, that this paragraph shall not apply to
any  relocation  for  which  an  application  for  a  certification   of
eligibility  was  not submitted prior to July first, two thousand three,
unless the date of such relocation  is  on  or  after  July  first,  two
thousand.
(k)  Lower  Manhattan relocation and employment assistance credit. (1)
In addition to any other credit allowed by this part,  a  taxpayer  that
has  obtained  the  certifications in accordance with subdivision (b) of
section twenty-five-ee of the general city law shall be allowed a credit
against the tax imposed by this part. The amount of the credit shall  be
the  amount  determined  by  multiplying  three  thousand dollars by the
number  of  eligible  aggregate  employment  shares  maintained  by  the
taxpayer  during  the  taxable year with respect to eligible premises to
which the taxpayer has relocated;  provided,  however,  that  no  credit
shall  be  allowed  for  the  relocation of any retail activity or hotel
services; provided, further, that no credit shall be allowed under  this
subdivision to any taxpayer that has elected pursuant to subdivision (d)
of  section  twenty-five-ee  of the general city law to take such credit
against a gross receipts tax imposed under a local law enacted  pursuant
to  subdivision  (a)  of  section twelve hundred one of the tax law. For
purposes of this subdivision, the terms "eligible  aggregate  employment
shares,"  "eligible  premises," "relocate," "retail activity" and "hotel

services" shall have the meanings ascribed by section twenty-five-dd  of
the general city law.
(2) The credit allowed under this subdivision with respect to eligible
aggregate employment shares maintained with respect to eligible premises
to  which  the  taxpayer  has relocated shall be allowed for the taxable
year of the relocation and for any  of  the  twelve  succeeding  taxable
years  during  which eligible aggregate employment shares are maintained
with respect to eligible premises; provided that the credit allowed  for
the  twelfth  succeeding taxable year shall be calculated by multiplying
the number of  eligible  aggregate  employment  shares  maintained  with
respect  to  eligible premises in the twelfth succeeding taxable year by
the lesser of one and a fraction the numerator of which is  such  number
of  days  in  the taxable year of relocation less the number of days the
eligible business maintained employment shares in eligible  premises  in
the  taxable  year  of  relocation  and  the denominator of which is the
number of days in such twelfth succeeding taxable year during which such
eligible aggregate employment shares are maintained with respect to such
premises.
(3) Except as provided in paragraph four of this subdivision,  if  the
amount  of  the  credit allowable under this subdivision for any taxable
year exceeds the tax imposed for such year, the excess  may  be  carried
over, in order, to the five immediately succeeding taxable years and, to
the   extent  not  previously  deductible,  may  be  deducted  from  the
taxpayer's tax for such years.
(4) The credits  allowed  under  this  subdivision,  against  the  tax
imposed  by  this chapter for the taxable year of the relocation and for
the four taxable years immediately succeeding the taxable year  of  such
relocation, shall be deemed to be overpayments of tax by the taxpayer to
be  credited  or  refunded,  without  interest,  in  accordance with the
provisions of section seventy-seven of  this  title.  For  such  taxable
years,  such  credits or portions thereof may not be carried over to any
succeeding taxable year.
(5) The credit allowable under  this  subdivision  shall  be  deducted
after  the  credits allowed by subdivisions (b) and (j) of this section,
but prior to the deduction of any other credit allowed by this section.
§ 101-a. Taxable years to which tax applies;  tax  for  taxable  years
beginning  prior  to  and  ending  after January first, nineteen hundred
sixty-six. (a) General.--The tax imposed by  section  one  hundred  one,
with  any  modification permitted by subdivision (b) of this section, is
imposed for each taxable year beginning with taxable years ending on  or
after January first, nineteen hundred sixty-six.
(b)  Alternate methods for determining tax for taxable years ending on
or after January first, nineteen hundred sixty-six.--(1) The tax for any
taxable  year  ending  on  or  after  January  first,  nineteen  hundred
sixty-six  and before December thirty-first, nineteen hundred sixty-six,
shall be an amount equal to the tax which would have  been  imposed  had
section  one  hundred  one  been  in effect for the entire taxable year,
multiplied by the number of months (or major portions thereof)  in  such
taxable  year  which occur after December thirty-first, nineteen hundred
sixty-five and divided by  the  number  of  months  (or  major  portions
thereof) in such taxable year.
(2)  In  lieu  of  the  method  of  computation  of  tax prescribed in
paragraph one, if the  taxpayer  maintained  adequate  records  for  the
portion  of  any taxable year ending on or after January first, nineteen
hundred sixty-six, and before December  thirty-first,  nineteen  hundred
sixty-six,  which  falls  within  the  calendar  year  nineteen  hundred
sixty-six, the tax for such taxable year at the election of the taxpayer
may be computed on the basis  of  the  unincorporated  business  taxable

income  which  the  taxpayer  would have reported had he filed a federal
income tax return for a taxable year beginning January  first,  nineteen
hundred  sixty-six and ending with the close of such taxable year ending
before  December  thirty-first, nineteen hundred sixty-six. Such taxable
year beginning January first,  nineteen  hundred  sixty-six  and  ending
before  December  thirty-first,  nineteen  hundred  sixty-six,  shall be
deemed (unless clearly indicated otherwise) to be the  taxable  year  of
the  taxpayer.  For  purposes  of this paragraph two, the unincorporated
business exemptions allowable under section one hundred nine, the credit
allowable under subdivision (b) of section one hundred one and  any  net
operating  loss  deduction  as  modified  pursuant to subdivision two of
section one hundred six shall each be reduced by the same part  of  such
exemptions, credit, or net operating loss deduction (as the case may be)
as  the number of months (or major portions thereof) in the taxable year
occurring before January first, nineteen hundred  sixty-six  is  of  the
number  of  months  (or  major  portions  thereof) in such taxable year.
Except as provided in this paragraph two, the tax for such period ending
before December  thirty-first,  nineteen  hundred  sixty-six,  shall  be
computed in accordance with the other provisions of this title.
§  102.  Meaning of terms. (a) General.--Unless a different meaning is
clearly required, any term used  in  this  title  shall  have  the  same
meaning  as  when used in a comparable context in the laws of the United
States relating to federal income taxes, and any reference in this title
to the laws of the United  States  shall  mean  the  provisions  of  the
internal  revenue  code  of  nineteen hundred fifty-four, and amendments
thereto, and other provisions of the laws of the United States  relating
to  federal  income  taxes, as the same are included in this title as an
appendix or as included by reference to an  appendix  of  another  title
enacted  by  the  same local law as enacts this title. (The quotation of
the aforesaid laws of the United States is intended to make them a  part
of  this  title  and  to  avoid constitutional uncertainties which might
result if such laws were merely incorporated by reference. The quotation
of a provision of the federal internal revenue code or of any other  law
of the United States shall not necessarily mean that it is applicable to
or has relevance to this title.)
(b)  "State",  "this  state"  or "the state" when used in this article
shall mean the state of New York.
(c) "City", "this city", or "the city" when used in this  title  shall
mean the city imposing this tax.
(d) "Local income taxes", when used in this title shall mean an income
tax imposed by a political subdivision of a state.
(e)  "Tax  commission"  when  used  in  this  title shall mean the tax
commission of the state of New York.
(f) Attorney general.--The term "attorney general" when used  in  this
title shall mean the attorney general of the state of New York.
(g)  "Comptroller"  when used in this title shall mean the comptroller
of the state of New York.
(h) "Title" means this local law.
§   103.   Unincorporated   business   defined.
(a)    General.--An
unincorporated   business  means  any  trade,  business,  profession  or
occupation conducted, engaged in or being liquidated by an individual or
unincorporated  entity,  including  a  partnership  or  fiduciary  or  a
corporation  in liquidation, but not including any entity subject to tax
under any  local  law  imposed  pursuant  to  section  one  of  the  act
authorizing  the  adoption  of  this  title and not including any entity
doing an insurance business as a member  or  members  of  the  New  York
insurance  exchange  described  in  paragraph  (a) of subdivision one of
section four hundred twenty-five-a of the insurance law.
Unincorporated businesses subject to tax under a local law of the city
imposing a tax on utilities shall not be subject to tax under this part;
provided, however, that unincorporated businesses,  other  than  utility
businesses  subject to the supervision of the state department of public
service, which are subject to tax under a local law of the city imposing
a  tax on vendors of utility services shall be subject to tax under this
part on that percentage of their entire net income allocable to the city
under section one hundred seven which their receipts  other  than  those
taxable  under  such  local law taxing vendors of utility services is of
their total receipts. If  an  individual  or  an  unincorporated  entity
carries  on  two  or more unincorporated businesses, all such businesses
shall be treated as one unincorporated business for the purposes of this
title.
(b) Services as employee, et cetera.--The performance of  services  by
an  individual  as  an  employee  or  as  an  officer  or  director of a
corporation,  society,  association,  or  political  entity,  or  as   a
fiduciary,  shall  not be deemed an unincorporated business, unless such
services constitute part of a business  regularly  carried  on  by  such
individual.
(d)  Purchase  and  sale  for  own  account.--An  individual  or other
unincorporated entity, except a dealer holding  property  primarily  for
sale to customers in the ordinary course of his trade or business, shall
not  be deemed engaged in an unincorporated business solely by reason of
the purchase and  sale  of  property  for  his  own  account,  but  this
subdivision shall not apply if the unincorporated entity is taxable as a
corporation for federal income tax purposes.
(e)  Holding,  leasing  or  managing  real property.--An owner of real
property, a lessee or a fiduciary shall not  be  deemed  engaged  in  an
unincorporated business solely by reason of holding, leasing or managing
real property.
(f) Sales representative.--An individual, other than one who maintains
an  office  or  who  employs  one  or  more  assistants or who otherwise
regularly carries on a business, shall  not  be  deemed  engaged  in  an
unincorporated  business  solely  by  reason  of  selling  goods, wares,
merchandise or insurance for more than one enterprise. For  purposes  of
this  subdivision,  space utilized solely for the display of merchandise
and/or for the maintenance and storage of records normally used  in  the
course  of business shall not be deemed an office, and the employment of
clerical and secretarial assistance shall not be deemed  the  employment
of assistants.
(g)  Exempt trusts and organizations.--A trust or other unincorporated
organization which by reason of its purposes  or  activities  is  exempt
from  federal  income tax shall not be deemed an unincorporated business
(regardless of whether  subject  to  federal  income  tax  on  unrelated
business taxable income).
§  104.  Unincorporated  business taxable income.   The unincorporated
business taxable income of  an  unincorporated  business  shall  be  the
excess   of   its   unincorporated   business   gross  income  over  its
unincorporated business deductions, allocated  to  the  city,  less  the
amount of:
(1)  Its  deductions  under  section  one hundred eight not subject to
allocation; and
(2) Its unincorporated business exemptions under section  one  hundred
nine.
§     105.     Unincorporated     business     gross    income.
(a)
General.--Unincorporated business  gross  income  of  an  unincorporated
business  means the sum of the items of income and gain of the business,
of whatever kind and in whatever form paid, includible in  gross  income

for  the  taxable year for federal income tax purposes, including income
and gain from any property employed in the business, or from liquidation
of the business, or from collection of installment  obligations  of  the
business, with the modifications specified in this section.
(b)  Modifications  increasing  federal  gross income.--There shall be
added to federal gross  income  of  the  business  the  following  items
attributable to the business:
(1) Interest income on obligations of any state other than this state,
or  of a political subdivision of any such other state unless created by
compact or agreement to which this state is a party; and
(2) Interest or dividend income on obligations or  securities  of  any
authority,  commission,  or  instrumentality of the United States, which
the laws of the United States exempt from federal  income  tax  but  not
from state or local income taxes.
(3) In the case of a taxpayer who has exercised the election permitted
by  subdivision  (b)  of  section  one hundred eight, if the property to
which such election relates was sold or otherwise disposed of during the
taxable year, the amount required by said subdivision  to  be  added  to
federal gross income.
(4) The entire amount allowable as an exclusion or deduction for stock
transfer  taxes  imposed by article twelve of the tax law in determining
federal gross income but only to the extent that such taxes are incurred
and paid in market making transactions.
(5) the amount allowed as an exclusion or deduction for sales and  use
taxes  imposed  by  section  eleven  hundred  seven  of  the  tax law in
determining federal gross income but only such portion of such exclusion
or deduction which is not in excess of the amount of the credit  allowed
pursuant to subdivision (d) of section one hundred one of this title.
(6)  The  amount  allowed  as an exclusion or deduction in determining
federal gross income and also allowed for the taxable  year  under  this
section  but  only  such portion of such exclusion or deduction which is
not  in  excess  of  the  amount  of  the  credit  allowed  pursuant  to
subdivision (e) of section one hundred one of this title.
(7)  The  amount  allowed  as  an  exclusion  or  deduction as rent in
determining federal gross income but only such portion of such exclusion
or deduction which is not in excess of the amount of the credit  allowed
pursuant to subdivision (f) of section one hundred one of this title.
(8)  The amount allowed as an exclusion or deduction for sales and use
taxes imposed by  section  eleven  hundred  seven  of  the  tax  law  in
determining federal gross income but only such portion of such exclusion
or  deduction which is not in excess of the amount of the credit allowed
pursuant to subdivisions (g) and (h) of section one hundred one of  this
title.
(9)  For taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to property which is a qualified
mass commuting vehicle described in subparagraph (D) of paragraph  eight
of  subsection  (f)  of  section one hundred sixty-eight of the internal
revenue code (relating to qualified mass commuting vehicles), any amount
which would properly be includible for federal income tax  purposes  had
the  taxpayer not made the election permitted pursuant to such paragraph
eight as it was in effect for agreements entered into prior  to  January
first, nineteen hundred eighty-four.
10.  Upon  the  disposition  of recovery property to which subdivision
thirteen of section one hundred six applies,  the  amount,  of  any,  by
which  the  aggregate  of  the  amounts  described  in  such subdivision
thirteen attributable to such property  exceeds  the  aggregate  of  the
amounts  described  in  subdivision  twelve  of  section one hundred six
attributable to such property.
(c) Modifications  reducing  federal  gross  income.--There  shall  be
subtracted from federal gross income of the business the following items
attributable to the business:
(1)  Interest  income  on  obligations  of  the  United States and its
possessions to the extent includible in gross income for federal  income
tax purposes;
(2)  Interest  or  dividend income on obligations or securities of any
authority, commission or instrumentality of the  United  States  to  the
extent  includible  in  gross income for federal income tax purposes but
exempt from state or local income taxes under the  laws  of  the  United
States;
(3)  Interest  or  dividend income on obligations or securities to the
extent exempt from income tax under the laws of the city or  this  state
authorizing   the   issuance  of  such  obligations  or  securities  but
includible in gross income for federal income tax purposes; and
(4) The amount of any refund or credit for overpayment of income taxes
imposed by the city, this state or any other taxing jurisdiction, to the
extent  properly  included  in  gross  income  for  federal  income  tax
purposes.
(5) With respect to gain derived from the sale or other disposition of
any   property   acquired  prior  to  January  first,  nineteen  hundred
sixty-six, except property described in  subsections  one  and  four  of
section  twelve  hundred  twenty-one  of  the internal revenue code, the
difference between
(a) the amount of gain included in federal gross income  with  respect
to each such property, and
(b)  the  amount of gain (if smaller than the amount described in (a))
that would be included in federal gross income with respect to each such
property if the federal adjusted basis of such property on the  date  of
the sale or other disposition had been equal to its fair market value on
January  first,  nineteen  hundred sixty-six, or the date of its sale or
other disposition prior to January first,  nineteen  hundred  sixty-six,
plus  or  minus  all  adjustments  to  basis  made  with respect to such
property for federal income  tax  purposes  for  periods  on  and  after
January  first,  nineteen hundred sixty-six; provided, however, that the
total modification provided by this subparagraph shall  not  exceed  the
taxpayer's  net  gain  from  the  sale  or other disposition of all such
property.
(6) For taxable years beginning after December thirty-first,  nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue code (relating to qualified mass commuting vehicles), any amount
properly  includible  in  federal  gross income solely as a result of an
election made pursuant to the provisions of such paragraph eight  as  it
was  in  effect  for  agreements  entered  into  prior to January first,
nineteen hundred eighty-four.
(7) Upon the disposition of recovery  property  to  which  subdivision
thirteen  of  section  one  hundred  six applies, the amount, if any, by
which the aggregate of the amounts described in  subdivision  twelve  of
section  one  hundred  six  attributable  to  such  property exceeds the
aggregate of the amounts described in subdivision  thirteen  of  section
one hundred six attributable to such property.
(d)  Upon  the disposition of property to which subdivisions 14 and 15
of section 106 of this chapter apply, the amount of  any  gain  or  loss
includible  in  entire  net  income  shall  be  adjusted  to reflect the
modifications  provided  in  such  subdivisions  attributable  to   such
property.
§ 106. Unincorporated business deductions. The unincorporated business
deductions  of  an  unincorporated  business means the items of loss and
deduction directly connected with or incurred  in  the  conduct  of  the
business,  which  are  allowable for federal income tax purposes for the
taxable  year  (including  losses  and  deductions  connected  with  any
property employed in the business), with the following modifications:
(1) A deduction shall be allowed for charitable contributions  of  the
unincorporated  business, to the extent that such contributions would be
deductible for federal income tax purposes if made by a corporation, but
not  in  excess  of  five  per  centum  of  the  amount  by  which   the
unincorporated business gross income exceeds the unincorporated business
deductions  computed without the benefit of any deduction for charitable
contributions.
(2) A deduction shall be allowed for net operating losses incurred  by
the  unincorporated business in an amount computed in the same manner as
the net operating loss  deduction  which  would  be  allowable  for  the
taxable  year  for  federal  income  tax  purposes if the unincorporated
business were an individual taxpayer (but determined solely by reference
to the unincorporated business gross income and unincorporated  business
deductions, allocated to the city, of the unincorporated business). Such
deduction  shall not include any net operating loss sustained during any
taxable year ending prior to January first, nineteen  hundred  sixty-six
and  for  the  purposes  of this paragraph net operating losses shall be
determined  without  regard  to  any  deductions  allowed  pursuant   to
subsection  (b)  of section one hundred eight and any net operating loss
for a taxable year beginning in nineteen  hundred  eighty-one  shall  be
computed  without  regard  to  the  deduction  allowed  with  respect to
recovery property under section one hundred sixty-eight of the  internal
revenue code; in lieu of such deduction, a taxpayer shall be allowed for
such  taxable  year  with  respect  to  such  property  the depreciation
deduction allowable under section one hundred sixty-seven of  such  code
as  such  section was in full force and effect on December thirty-first,
nineteen hundred eighty.
(3) No deduction shall be allowed (except as provided in  section  one
hundred  eight)  for amounts paid or incurred to a proprietor or partner
for services or for use of capital.
(4) No deduction shall be allowed for  income  taxes  imposed  by  the
city, this state or any other taxing jurisdiction.
(5)  No  deduction  shall  be allowed for (A) interest on indebtedness
incurred or continued to purchase or carry obligations or securities the
income from which is exempt from tax under this title; (B) expenses paid
or incurred for the production or  collection  of  such  income  or  the
management,  conservation  or  maintenance  of  property  held  for  the
production of such income; or (C) the amortizable bond  premium  on  any
bond the interest income from which is so exempt.
(6)  No  deduction  shall  be  allowed in respect of the excess of net
long-term capital gain over net short-term  capital  loss,  but  capital
losses  incurred  in  the  unincorporated  business  shall be treated as
ordinary losses and shall be allowed in full.
(7) In the case of a taxpayer who has exercised the election permitted
by subdivision (b) of section one hundred eight, no deduction  shall  be
allowed  for  expenditures  with reference to the property to which such
election relates, or  for  depreciation  of  such  property,  except  as
permitted by said subdivision.
(8)  A  deduction  shall  be  allowed for (A) interest on indebtedness
incurred or continued to purchase or carry obligations or securities the
income from which is subject to tax under this  title  but  exempt  from
federal income tax; (B) ordinary and necessary expenses paid or incurred

during  the taxable year for the production or collection of such income
or the management, conservation or maintenance of property held for  the
production  of such income; and (C) the amortizable bond premium for the
taxable  year  on any bond the interest on which is subject to tax under
this title but exempt from federal income tax.
(9) At the election of the taxpayer, a deduction shall be allowed  for
expenditures   paid   or  incurred  during  the  taxable  year  for  the
construction, reconstruction,  erection  or  improvement  of  industrial
waste treatment facilities and air pollution control facilities.
(A)  (i)  The  term "industrial waste treatment facilities" shall mean
facilities  for  the  treatment,  neutralization  or  stabilization   of
industrial  waste  (as the term "industrial waste" is defined in section
twelve hundred two  of  the  state  public  health  law)  from  a  point
immediately  preceding  the  point  of such treatment, neutralization or
stabilization to the point of disposal, including the necessary  pumping
and transmitting facilities, but excluding such facilities installed for
the  primary  purpose  of  salvaging  materials  which are usable in the
manufacturing process or are marketable.
(ii) The term "air pollution control facilities" shall mean facilities
which remove, reduce, or render less noxious  air  contaminants  emitted
from  an  air  contamination  source (as the terms "air contaminant" and
"air  contamination  source"  are  defined  in  section  twelve  hundred
sixty-seven  of  the  state  public health law) from a point immediately
preceding the point of such removal, reduction or rendering to the point
of discharge of air, meeting emission standards as  established  by  the
air pollution control board, but excluding such facilities installed for
the  primary  purpose  of  salvaging  materials  which are usable in the
manufacturing process or are marketable and excluding  those  facilities
which rely for their efficacy on dilution, dispersion or assimilation of
air contaminants in the ambient air after emission.
(B) However, such deduction shall be allowed only
(i)  with  respect to tangible property which is depreciable, pursuant
to section one hundred sixty-seven of the internal revenue code,  having
a  situs  in  the city and used in the taxpayer's trade or business, the
construction, reconstruction, erection or improvement of which,  in  the
case  of industrial waste treatment facilities, is initiated on or after
January first, nineteen hundred sixty-six,  and  only  for  expenditures
paid  or  incurred prior to January first, nineteen hundred seventy-two,
or which; in the case of air pollution control facilities, is  initiated
on or after January first, nineteen hundred sixty-six, and
(ii)  on  condition  that  such  facilities have been certified by the
state commissioner of health or his designated representative,  pursuant
to  the state public health law, as complying with the provisions of the
state public health  law,  the  state  sanitary  code  and  regulations,
permits or orders promulgated pursuant thereto, and
(iii)  on  condition  that  for  the  taxable  year and all succeeding
taxable years, no deduction for such expenditures or for depreciation of
the same property allowed for  federal  income  tax  purposes  shall  be
allowed  under  this  title,  except to the extent that the basis of the
property may be attributable to factors other than such expenditures, or
in case a deduction is allowable pursuant to this  paragraph  nine,  for
only  a  part  of  such  expenditures,  on  condition that any deduction
allowed for federal income tax purposes for  such  expenditures  or  for
depreciation   of  the  same  property  be  proportionately  reduced  in
computing unincorporated business deductions for the  taxable  year  and
all succeeding taxable years, and
(iv) where the election provided for in subdivision (b) of section one
hundred eight has not been exercised in respect to the same property.
(C)  (i)  If  expenditures in respect to an industrial waste treatment
facility or an air pollution control  facility  have  been  deducted  as
provided herein and if within ten years from the end of the taxable year
in which such deduction was allowed such property or any part thereof is
used  for the primary purpose of salvaging materials which are usable in
the manufacturing process or are marketable, the taxpayer  shall  report
such change of use in its return for the first taxable year during which
it  occurs,  and  the  director of finance may recompute the tax for the
year or years for which such deduction was allowed and any carryback  or
carryover  year,  and  may assess any additional tax resulting from such
recomputation within the time fixed by paragraph  eight  of  subdivision
(c) of section one hundred thirty-one.
(ii)  If  a  deduction  is allowed as herein provided for expenditures
paid or incurred during any taxable year on the  basis  of  a  temporary
certificate  of  compliance  issued  pursuant to the state public health
law, and if the taxpayer fails to  obtain  a  permanent  certificate  of
compliance  upon completion of the facilities with respect to which such
temporary certificate was issued, the taxpayer shall report such failure
in its report for the taxable year  during  which  such  facilities  are
completed,  and  the  director  of finance may recompute the tax for the
year or years for which such deduction was allowed and any carryback  or
carryover  year,  and  may assess any additional tax resulting from such
recomputation within the time fixed by paragraph  eight  of  subdivision
(c) of section one hundred thirty-one.
(D)  In  any  taxable year when property is sold or otherwise disposed
of, with respect to which a deduction has been allowed pursuant to  this
paragraph nine, such deduction shall be disregarded in computing gain or
loss,  and  the  gain  or  loss on the sale or other disposition of such
property shall be the gain or loss  allowable  for  federal  income  tax
purposes for such taxable year.
(10) For taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue   code  (relating  to  qualified  mass  commuting  vehicles),  a
deduction shall be allowed for any amount which the taxpayer could  have
excluded  for  purposes  of  this  title  had  it  not made the election
provided for in such paragraph eight as it was in effect for  agreements
entered into prior to January first, nineteen hundred eighty-four.
(11) For taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to property which is a qualified
mass  commuting vehicle described in subparagraph (D) of paragraph eight
of subsection (f) of section one hundred  sixty-eight  of  the  internal
revenue  code  (relating  to  qualified  mass  commuting  vehicles),  no
deduction shall be allowed for any amount deductible for federal  income
tax  purposes  solely  as  a  result of an election made pursuant to the
provisions of such paragraph eight as it was in  effect  for  agreements
entered into prior to January first, nineteen hundred eighty-four.
(12) For taxable years beginning after December thirty-first, nineteen
hundred  eighty-one, except with respect to recovery property subject to
the provisions of section two hundred eighty-F of the  internal  revenue
code  and  recovery  property placed in service in this state in taxable
years  beginning   after   December   thirty-first,   nineteen   hundred
eighty-four, no deduction shall be allowed for the amount allowable as a
deduction  under section one hundred sixty-eight of the internal revenue
code.
(13) For taxable years beginning after December thirty-first, nineteen
hundred eighty-one, except with respect to recovery property subject  to

the  provisions  of section two hundred eighty-F of the internal revenue
code and recovery property placed in service in this  state  in  taxable
years   beginning   after   December   thirty-first,   nineteen  hundred
eighty-four,  and  provided a deduction has not been disallowed pursuant
to subdivision eleven of this section, a taxpayer shall be allowed  with
respect  to recovery property the depreciation deduction allowable under
section one hundred sixty-seven of the internal  revenue  code  as  such
section  would  have  applied  to property placed in service on December
thirty-first, nineteen hundred eighty.
(14) For taxable years ending after September 10, 2001, in the case of
qualified property described in paragraph 2 of subsection k  of  section
168  of  the internal revenue code, other than qualified resurgence zone
property described in subdivision 16 of this  section,  and  other  than
qualified  New  York  Liberty  Zone property described in paragraph 2 of
subsection b of section 1400L of  the  internal  revenue  code  (without
regard  to  clause  (i)  of  subparagraph  (C)  of  such  paragraph), no
deduction shall be allowed for the amount allowable as a deduction under
section 167 of the internal revenue code.
(15) For taxable years ending after September 10, 2001, in the case of
qualified property described in paragraph 2 of subsection k  of  section
168  of  the internal revenue code, other than qualified resurgence zone
property described in subdivision 16 of this  section,  and  other  than
qualified  New  York  Liberty  Zone property described in paragraph 2 of
subsection b of section 1400L of  the  internal  revenue  code  (without
regard to clause (i) of subparagraph (C) of such paragraph), a deduction
shall be allowed with respect to such property equal to the depreciation
deduction  allowable  under  section 167 of the internal revenue code as
such section would have applied to such property had it been acquired by
the taxpayer on September 10, 2001.
(16) For purposes of subdivisions 14 and 15 of this section, qualified
resurgence zone property shall  mean  qualified  property  described  in
paragraph  2 of subsection k of section 168 of the internal revenue code
substantially all of the use of which is  in  the  resurgence  zone,  as
defined  below,  and  is in the active conduct of a trade or business by
the taxpayer in such  zone,  and  the  original  use  of  which  in  the
resurgence  zone  commences  with the taxpayer after September 10, 2001.
The resurgence zone shall mean the area of New York  county  bounded  on
the  south  by  a line running from the intersection of the Hudson River
with the Holland Tunnel, and running thence east to Canal  Street,  then
running  along the centerline of Canal Street to the intersection of the
Bowery and Canal Street, running thence  in  a  southeasterly  direction
diagonally  across  Manhattan  Bridge Plaza, to the Manhattan Bridge and
thence along the centerline of the Manhattan Bridge to the  point  where
the centerline of the Manhattan Bridge would intersect with the easterly
bank  of the East River, and bounded on the north by a line running from
the intersection of the Hudson River with the Holland Tunnel and running
thence north along West Avenue to the intersection  of  Clarkson  Street
then  running  east  along  the  centerline  of  Clarkson  Street to the
intersection  of  Washington  Avenue,  then  running  south  along   the
centerline  of  Washington  Avenue  to  the intersection of West Houston
Street, then east along the centerline of West Houston Street,  then  at
the intersection of the Avenue of the Americas continuing east along the
centerline  of  East  Houston  Street  to  the easterly bank of the East
River.
§ 107. Allocation to the  city.  (a)  General.--If  an  unincorporated
business  is  carried on both within and without the city, as determined
under regulations of the director of finance, there shall  be  allocated
to  the  city  a  fair  and  equitable  portion  of  the  excess  of its

unincorporated business gross income over  its  unincorporated  business
deductions.  If  the  unincorporated  business  has  no regular place of
business outside the city, all of such excess shall be allocated to  the
city.
(b) Allocation by taxpayer's books.--The portion allocable to the city
may  be determined from the books of the business if the methods used in
keeping such books are approved by the director of finance as fairly and
equitably reflecting the income from the city.
(c) Allocation by formula.--If subdivision (b) does not apply  to  the
taxpayer,  the  portion  allocable  to  the  city shall be determined by
multiplying (A) the excess of its unincorporated business  gross  income
over  its  unincorporated  business deduction, by (B) the average of the
following three percentages:
(1) Property percentage.--The percentage computed by dividing (A)  the
average  of  the value, at the beginning and end of the taxable year, of
real and tangible personal property connected  with  the  unincorporated
business  and  located within the city, by (B) the average of the value,
at the beginning and end of the taxable year, of all real  and  tangible
personal property connected with the unincorporated business and located
both  within and without the city. For this purpose, real property shall
include real property rented to the unincorporated business.
(2) Payroll percentage.--The percentage computed by dividing  (A)  the
total  wages,  salaries  and other personal service compensation paid or
incurred during the taxable year to employees  in  connection  with  the
unincorporated  business carried on within the city, by (B) the total of
all wages, salaries and other  personal  service  compensation  paid  or
incurred  during  the  taxable  year to employees in connection with the
unincorporated business carried on both within and without the city.
(3) Gross income percentage.--The percentage computed by dividing  (A)
the  gross  sales  or  charges  for  services performed by or through an
agency located within the city, by (B) 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  of  the
unincorporated business, or other agencies, situated within the city.
(d) Other allocation methods.--The portion allocable to the city shall
be  determined  in accordance with rules and regulations of the director
of finance if it shall appear to the director of finance that the income
from the city is not fairly and equitably reflected under the provisions
of either subdivision (b) or subdivision (c).
(e) 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 subdivisions (b), (c), or (d), but shall be considered as entirely
derived  from  or  connected  with  the state, other than this state, in
which such property is located or, if such property is located  in  this
state, the political subdivision thereof.
§  108.  Deductions  not  subject  to  allocation.
(a) In computing
unincorporated business taxable income, there shall be allowed  (without
allocation  under  section  one hundred seven) deductions for reasonable
compensation not  in  excess  of  five  thousand  dollars  for  personal
services  of  the proprietor and of each partner actively engaged in the
unincorporated business, but the aggregate of such deductions shall  not
exceed  twenty  per centum of the unincorporated business taxable income
computed without the benefit of any deductions under this section or the
unincorporated business exemptions under section one hundred nine.
(b) At the election of  the  taxpayer  there  shall  also  be  allowed
(without  allocation  under section one hundred seven) either or both of
the items set forth in paragraphs  one  and  two  of  this  subdivision,
except  that only one of such items shall be allowed with respect to any
one item of property.
(1)  Depreciation  with  respect  to any property such as described in
paragraph  three  of  this  subdivision,   not   exceeding   twice   the
depreciation  allowed  with  respect  to  the  same property for federal
income tax  purposes.    Such  deduction  shall  be  allowed  only  upon
condition  that  no  deduction  shall be allowed pursuant to section one
hundred six for depreciation of the same property, and the total of  all
deductions  allowed  pursuant  to  this paragraph in any taxable year or
years with respect to any property shall not exceed its  cost  or  other
basis.
(2)  Expenditures  paid  or  incurred  during the taxable year for the
construction, reconstruction, erection or acquisition  of  any  property
such  as  described in paragraph three of this subdivision which is used
or  to  be  used  for  purposes  of  research  or  development  in   the
experimental  or  laboratory sense. Such purposes shall not be deemed to
include the ordinary testing or inspection of materials or products  for
quality   control,  efficiency  surveys,  management  studies,  consumer
surveys,  advertising,  promotions  or  research  in   connection   with
literary,  historical  or  similar  projects.  Such  deduction  shall be
allowed only on condition that, for the taxable year and all  succeeding
taxable  years,  no  deduction  shall be allowed pursuant to section one
hundred  six  on  account  of  such  expenditures  or  on   account   of
depreciation  of  the same property, except to the extent that its basis
may be attributable to factors other than such expenditures, or in  case
a  deduction  is allowable pursuant to this paragraph for only a part of
such expenditures, on condition that any deduction allowable for federal
income tax purposes on account of such expenditures  or  on  account  of
depreciation  of  the  same property shall be proportionately reduced in
determining the deductions allowable pursuant to section one hundred six
for the taxable year and all succeeding taxable years. With  respect  to
property  which  is used or to be used for research and development only
in part, or during only part of its useful life, the deduction allowable
pursuant to this paragraph shall be limited to a proportionate  part  of
the  expenditures  relating  thereto.  If  a  deduction  shall have been
allowed pursuant to this paragraph for all or part of such  expenditures
with  respect  to  any  property, and such property is used for purposes
other than research and development to a greater extent than  originally
reported,  the  taxpayer  shall report such use in the taxpayer's return
for the first taxable year during which it occurs, and the  director  of
finance  may  recompute  the  tax  for  the year or years for which such
deduction was allowed, and may assess any additional tax resulting  from
such  recomputation  within the time fixed by subdivision (c) of section
one hundred thirty-one.
(3) Such deductions shall be allowed only  with  respect  to  tangible
property   which   is   depreciable  pursuant  to  section  one  hundred
sixty-seven of the internal revenue code, having a situs in the city and
used  in  the  taxpayer's  trade  or  business,  (A)  the  construction,
reconstruction   or  erection  of  which  is  completed  after  December
thirty-first, nineteen hundred sixty-five, and then only with respect to
that portion of the basis thereof or the expenditures  relating  thereto
which  is  properly attributable to such construction, reconstruction or
erection after December thirty-first, nineteen  hundred  sixty-five,  or
(B) acquired after December thirty-first, nineteen hundred sixty-five by
purchase  as  defined  in  section  one  hundred seventy-nine (d) of the

internal revenue code, if the original use of  such  property  commenced
with the taxpayer, commenced in the city and commenced after such date.
(4)  If the deductions allowable for any taxable year pursuant to this
subdivision  exceed  the  taxpayer's  unincorporated  business   taxable
income,  determined without the allowance of such deductions, the excess
may be carried over to the following taxable year or years  and  may  be
deducted  (without  allocation  under  section  one  hundred  seven)  in
computing unincorporated business taxable income for such year or years.
(5) In any taxable year when property is sold  or  otherwise  disposed
of,  with  respect  to  which  a  deduction has been allowed pursuant to
paragraph one or two of this subdivision, the  basis  of  such  property
shall be adjusted to reflect the deductions so allowed, and if the basis
as so adjusted is lower than the adjusted basis of the same property for
federal  income  tax  purposes,  there  shall  be added to federal gross
income the amount of the difference between such adjusted bases.
§ 109. Unincorporated business exemptions. In computing unincorporated
business taxable income, there  shall  be  allowed  (without  allocation
under section one hundred seven):
(1)  an  unincorporated  business  exemption of five thousand dollars,
prorated for taxable years of less than twelve months under  regulations
of the director of finance;
(2)  if  a partner in an unincorporated business is taxable under this
title or under any local law imposed pursuant to section one of the  act
authorizing  the  adoption of this title, an exemption for the amount of
the partner's proportionate interest in the excess of the unincorporated
business gross income over the deductions  allowed  under  sections  one
hundred  six  and one hundred eight, but this exemption shall be limited
to the amount which is included in the partner's unincorporated business
taxable income allocable  to  the  city,  or  included  in  a  corporate
partner's net income allocable to the city.
§   115.   Declarations   of  estimated  tax.
(a)  Requirement  of
declaration.--Except   as   provided   in   subdivision
(j),    every
unincorporated  business  shall  make a declaration of its estimated tax
for the taxable year, containing such information as the commissioner of
finance  may  prescribe  by   regulations   or   instruction,   if   its
unincorporated  business  taxable  income  can reasonably be expected to
exceed fifteen thousand dollars.
(b) Definition of estimated tax.-- The term "estimated tax" means  the
amount  which  an  unincorporated business estimates to be its tax under
this title for the taxable year, less the amount which it  estimates  to
be  the  sum  of  any  credits  allowable against the tax other than the
credit allowable under subdivision (c) of section  one  hundred  one  of
this chapter.
(c)  Time  for  filing declaration.--Except as hereinafter provided, a
declaration of estimated tax required under this section shall be  filed
on or before April fifteenth of the taxable year provided, however, that
if the requirements of subdivision (a) are first met:
(1)  after April first and before June second of the taxable year, the
declaration shall be filed on or before June fifteenth, or
(2) after June first and before September second of the taxable  year,
the declaration shall be filed on or before September fifteenth, or
(3)  after  September first of the taxable year, the declaration shall
be filed on or before January fifteenth of the succeeding year.
(d) Filing of declarations on or before January fifteenth.--
(1) A declaration of  estimated  tax  by  an  unincorporated  business
having  an estimated unincorporated business taxable income from farming
(including oyster farming) for  the  taxable  year  which  is  at  least
two-thirds of its total estimated unincorporated business taxable income

for  the  taxable  year  may  be  filed at any time on or before January
fifteenth of the succeeding year.
(2) A declaration of estimated tax under this section of forty dollars
or  less  for  the  taxable  year  may be filed at any time on or before
January fifteenth of  the  succeeding  year  under  regulations  of  the
director of finance.
(e) Amendments of declaration.--An unincorporated business may amend a
declaration under regulations of the director of finance.
(f)  Return  as  declaration  or  amendment.--If on or before February
fifteenth of the succeeding  taxable  year  an  unincorporated  business
subject  to  the  estimated  tax  requirements of this section files its
return for the taxable year for which the declaration is  required,  and
pays  on  or before such date the full amount of the tax shown to be due
on the return:
(1)  such  return  shall  be  considered  as  its  declaration  if  no
declaration  was  required  to  be filed during the taxable year, but is
otherwise required to be filed on or before  January  fifteenth  of  the
succeeding year, and
(2)  such  return  shall  be  considered as the amendment permitted by
subdivision (e) to be filed on or before January fifteenth  if  the  tax
shown  on  the  return  is  greater  than  the  estimated tax shown in a
declaration previously made.
(g) Fiscal year.--This section shall apply to  a  taxable  year  other
than  a  calendar  year by the substitution of the months of such fiscal
year for the corresponding months specified in this section.
(h) Short taxable year.--An unincorporated  business  subject  to  the
estimated  tax requirements of this section and having a taxable year of
less than twelve months shall make  a  declaration  in  accordance  with
regulations of the director of finance.
(i)  Declaration  of  unincorporated business under a disability.--The
declaration of estimated tax for an  unincorporated  business  which  is
unable  to  make a declaration for any reason shall be made and filed by
the committee, fiduciary or other person charged with the  care  of  the
property  of  such  unincorporated  business  (other  than a receiver in
possession of only a part of such property), or by his  duly  authorized
agent.
(j)  Declaration of estimated tax for taxable years beginning prior to
the date of enactment of this title.--Notwithstanding subdivision (c) of
this section, no declaration of estimated tax  required  by  subdivision
(a)  of  this section need be filed until sixty days after the date that
this title becomes effective.
§ 116. Payments of estimated tax.   (a)  General.--The  estimated  tax
with  respect  to  which  a  declaration  is  required  shall be paid as
follows:
(1) If the declaration is filed on or before April  fifteenth  of  the
taxable   year,   the   estimated  tax  shall  be  paid  in  four  equal
installments.  The first installment shall be paid at the  time  of  the
filing of the declaration, and the second, third and fourth installments
shall  be paid on the following June fifteenth, September fifteenth, and
January fifteenth, respectively.
(2) If the declaration is filed after April fifteenth  and  not  after
June  fifteenth  of the taxable year, and is not required to be filed on
or before April fifteenth of the taxable year, the estimated  tax  shall
be paid in three equal installments. The first installment shall be paid
at  the  time of the filing of the declaration, and the second and third
installments shall be paid on  the  following  September  fifteenth  and
January fifteenth, respectively.
(3)  If  the  declaration  is filed after June fifteenth and not after
September fifteenth of the taxable year, and is not required to be filed
on or before June fifteenth of the taxable year, the estimated tax shall
be paid in two equal installments. The first installment shall  be  paid
at  the  time  of the filing of the declaration, and the second shall be
paid on the following January fifteenth.
(4) If the declaration is  filed  after  September  fifteenth  of  the
taxable  year,  and  is  not required to be filed on or before September
fifteenth of the taxable year, the estimated tax shall be paid  in  full
at the time of the filing of the declaration.
(5) If the declaration is filed after the time prescribed therefor, or
after  the expiration of any extension of time therefor, paragraphs (2),
(3) and (4) of this subdivision shall not apply, and there shall be paid
at the time of such filing all installments of estimated tax payable  at
or before such time, and the remaining installments shall be paid at the
times  at  which,  and  in  the  amounts  in which, they would have been
payable if the declaration had been filed when due.
(b) Amendments of declaration.--If any amendment of a  declaration  is
filed, the remaining installments, if any, shall be ratably increased or
decreased  (as  the  case may be) to reflect any increase or decrease in
the estimated tax by reason of such amendment, and if any  amendment  is
made  after September fifteenth of the taxable year, any increase in the
estimated tax by reason thereof shall be paid at the time of making such
amendment.
(c) Application to short taxable year.--This section shall apply to  a
taxable  year  of less than twelve months in accordance with regulations
of the director of finance.
(d) Fiscal year.--This section shall apply to  a  taxable  year  other
than  a  calendar  year by the substitution of the months of such fiscal
year for the corresponding months specified in this section.
(e) Installments paid  in  advance.--An  unincorporated  business  may
elect  to  pay  any  installment  of its estimated tax prior to the date
prescribed for the payment thereof.
(f) Cross reference.--For unincorporated businesses with taxable years
beginning prior to the date  that  this  title  becomes  effective,  see
subdivision (j) of section one hundred fifteen.
(g)  The  portion of an overpayment attributable to a credit allowable
pursuant to subdivision (c) of  section  one  hundred  one  of  of  this
chapter may not be credited against any payment due under this section.
§  121.  Accounting  periods  and  methods. (a) Accounting periods.--A
taxpayer's taxable year under this  title  shall  be  the  same  as  the
taxpayer's taxable year for federal income tax purposes.
(b)  Accounting methods.--A taxpayer's method of accounting under this
title shall be the same as  the  taxpayer's  method  of  accounting  for
federal  income tax purposes. In the absence of any method of accounting
for federal income tax purposes, unincorporated business taxable  income
shall be computed under such method as in the opinion of the director of
finance clearly reflects income.
(c)  Change  of  accounting  period  or  method.--(1)  If a taxpayer's
taxable year or method of accounting is changed for federal  income  tax
purposes,  the taxable year or method of accounting for purposes of this
title 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, not in excess of two, beginning after January

first, nineteen hundred sixty-six, 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 director of finance.
§  122.  Returns,  payment  of  tax.
(a) General.--On or before the
fifteenth day of the fourth month following the close of a taxable year,
an unincorporated business income tax return shall be  made  and  filed,
and  the  balance  of  any  tax  shown  on  the face of such return, not
previously paid as installments of estimated tax, shall be paid,  by  or
for  every  unincorporated business having unincorporated business gross
income,  determined  for  purposes  of  this  subdivision  without   any
deduction for the cost of goods sold or services performed, of more than
ten  thousand  dollars,  or having any amount of unincorporated business
taxable income.
(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) Returns for taxable years ending prior  to  December  thirty-first
nineteen  hundred sixty-six.--With respect to taxable years ending prior
to  December  thirty-first  nineteen  hundred  sixty-six,  the   returns
required to be made and filed pursuant to this section shall be made and
filed  on  or before the fifteenth day of the fourth month following the
close of such taxable year or the sixtieth day following the  date  that
this title becomes effective, whichever is later.
(g) Taxpayers with credit relating to stock transfer tax.--Subdivision
(a)  of  this  section  shall apply to a taxpayer which has a right to a
credit pursuant to subdivision (c) of section one hundred  one  of  this
chapter except that the tax, or balance thereof, payable to the director
of  finance  in full pursuant to subdivision (a) of this section, at the
time the return is required to be filed, shall be calculated and paid at
such time as if the credit provided for in subdivision  (c)  of  section
one hundred one of this chapter were not allowed.
§  123.    Time and place for filing returns and paying tax.  A person
required to make and file a  return  under  this  title  shall,  without
assessment, notice or demand, pay any tax due thereon to the director of
finance  on  or before the date fixed for filing such return (determined
without regard to any extension of time for filing  the  return).    The
director  of  finance shall prescribe by regulation the place for filing
any return, declaration, statement, or other document required  pursuant
to this title and for payment of any tax.
§  124.  Signing  of  returns  and  other documents. (a) General.--Any
return, declaration, statement or other document  required  to  be  made
pursuant to this title shall be signed in accordance with regulations or
instructions  prescribed  by  the  director of finance. The fact that an
individual's  name  is  signed  to  a return, declaration, statement, or
other document, shall be prima facie evidence for all purposes that  the
return,  declaration, 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, declaration,
statement or other document or copy thereof required to be made or filed
pursuant to this title, including a copy  of  a  federal  return,  shall
constitute  a  certification by the person making or filing such return,
declaration, statement or  other  document  or  copy  thereof  that  the
statements  contained therein are true and that any copy filed is a true
copy.
§ 125. Extensions of time. (a) General.--The director of  finance  may
grant a reasonable extension of time for payment of tax or estimated tax
(or  any installment), or for filing any return, declaration, statement,
or other document required pursuant to this title,  on  such  terms  and
conditions  as  it may require. Except for a taxpayer who is outside the
United States, no such extension for  filing  any  return,  declaration,
statement or other document, shall exceed six months.
(b)  Furnishing  of security.--If any extension of time is granted for
payment of any amount of tax, the director of finance  may  require  the
taxpayer  to furnish a bond or other security in an amount not exceeding
twice the amount for which the extension of time for payment is granted,
on such terms and conditions as the director of finance may require.
§  126.  Requirements  concerning  returns,   notices,   records   and
statements.
(a)  General.--The  director  of  finance  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 director of finance  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  director
of  finance  may  deem  sufficient to show whether or not such person is
liable under this title for tax or for collection of tax.
(b) 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 director
of finance, as may be required by regulation.
§ 127. Report of change in federal taxable income.--If the amount of a
taxpayer's  federal  taxable  income  reported on his federal income tax
return for any taxable year is changed or corrected by the United States
internal revenue service or other competent authority, or as the  result
of  a renegotiation of a contract or subcontract with the United States,
or if a taxpayer,  pursuant  to  subsection  (d)  of  section  sixty-two
hundred  thirteen  of  the  internal  revenue code, executes a notice of
waiver of the restrictions provided in subsection (a) of  said  section,
the  taxpayer  shall report such change or correction in federal taxable
income or such execution of such notice of waiver  and  the  changes  or
corrections  of  his federal taxable 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  as

otherwise  required  by  the  director of finance, and shall concede the
accuracy of such determination or state wherein  it  is  erroneous.  Any
taxpayer  filing  an  amended  federal income tax return shall also file
within  ninety  days  thereafter an amended return under this title, and
shall give such information as the director of finance may require.  The
director  of  finance may by regulation prescribe such exceptions to the
requirements of this section as he deems appropriate.
§ 127-A. Reporting of changes or corrections in sales and compensating
use tax liability.--Where the state tax commission changes or corrects a
taxpayer's sales and compensating use tax liability with respect to  the
purchase  or  use  of  items  for  which a sales or compensating use tax
credit against the tax imposed by this title was claimed,  the  taxpayer
shall  report  such  change or correction to the commissioner of finance
within ninety  days  of  the  final  determination  of  such  change  or
correction,  or  as  required  by the commissioner of finance, and shall
concede the accuracy of  such  determination  or  state  wherein  it  is
erroneous.  Any  taxpayer filing an amended return or report relating to
the purchase or use of such items shall also  file  within  ninety  days
thereafter a copy of such amended return or report with the commissioner
of finance.
§  128.  Change of election. Any election expressly authorized by this
title, other than the election authorized by subdivision (d) of  section
one  hundred  five,  may  be changed on such terms and conditions as the
director of finance may prescribe by regulation.
§ 129. Notice of deficiency.  (a) General.--If upon examination  of  a
taxpayer's  return  under  this title the director of finance determines
that there is a deficiency of income  tax,  he  may  mail  a  notice  of
deficiency  to  the  taxpayer.  If  a  taxpayer  fails  to file a return
required under this title, the director  of  finance  is  authorized  to
estimate  the taxpayer's city unincorporated business taxable income and
tax thereon, from any information in  his  possession,  and  to  mail  a
notice  of  deficiency  to the taxpayer. A notice of deficiency shall be
mailed by certified or registered mail to the taxpayer at his last known
address in or out of the city. If the taxpayer is deceased  or  under  a
legal disability, a notice of deficiency may be mailed to his last known
address  in  or  out  of  the  city,  unless the director of finance has
received notice of  the  existence  of  a  fiduciary  relationship  with
respect to the taxpayer.
(b)  Notice  of  deficiency as assessment.--After ninety days from the
mailing of a notice of deficiency, such notice shall be an assessment of
the amount of tax specified in such notice, together with the  interest,
additions  to  tax  and penalties stated in such notice, except only for
any such tax or other amounts as to which the taxpayer has  within  such
ninety  day  period  filed with the director of finance a petition under
section one hundred thirty-seven.    If  the  notice  of  deficiency  is
addressed to a person outside of the United States, such period shall be
one hundred fifty days instead of ninety days.
(c)   Restrictions   on  assessment  and  levy.--No  assessment  of  a
deficiency in tax and no levy or proceeding in court for its  collection
shall  be  made,  begun  or  prosecuted, except as otherwise provided in
section one hundred forty-two, until a notice  of  deficiency  has  been
mailed  to the taxpayer, nor until the expiration of the time for filing
a petition contesting such notice, nor, if a petition  with  respect  to
the  taxable year has been filed with the director of finance, until the
decision of the director of finance has become final. For  exception  in
the  case of judicial review of the decision of the director of finance,
see subdivision (c) of section one hundred thirty-eight.
(d) Exceptions  for  mathematical  errors.--If  a  mathematical  error
appears  on  a  return (including an overstatement of the amount paid as
estimated income tax), the director of finance shall notify the taxpayer
that an amount of tax in excess of that shown upon the  return  is  due,
and that such excess has been assessed.
Such  notice shall not be considered as a notice of deficiency for the
purposes of  this  section,  subdivision  (f)  of  section  one  hundred
thirty-five  (limiting credits or refunds after petition to the director
of finance), or subdivision (b)  of  section  one  hundred  thirty-seven
(authorizing the filing of a petition with the director of finance based
on  a  notice  of deficiency) nor shall such assessment or collection be
prohibited by the provisions of subdivision (c).
(e)  Exception  where  change  in  federal  taxable  income   is   not
reported.--(1)  If the taxpayer fails to comply with section one hundred
twenty-seven in not reporting  a  change  or  correction  increasing  or
decreasing  his federal taxable income as reported on his federal income
tax return or in not reporting a change or correction which  is  treated
in  the  same  manner  as if it were a deficiency for federal income tax
purposes or in not filing an amended return  or  in  not  reporting  the
execution  of  a  notice of waiver described in such section, instead of
the mode and time of assessment provided for in subdivision (b) of  this
section,  the commissioner of finance may assess a deficiency based upon
such changed or corrected federal  taxable  income  by  mailing  to  the
taxpayer  a  notice  of  additional tax due specifying the amount of the
deficiency, and such deficiency, together with the  interest,  additions
to  tax and penalties stated in such notice, shall be deemed assessed on
the date such notice is mailed  unless  within  thirty  days  after  the
mailing  of  such notice a report of the federal change or correction or
an amended return, where such return was required by section one hundred
twenty-seven, is filed accompanied by a statement showing  wherein  such
federal  determination  and  such  notice  of  additional  tax  due  are
erroneous.
(2) Such notice shall not be considered as a notice of deficiency  for
the  purposes  of  this  section, subdivision (f) of section one hundred
thirty-five (limiting credits or refunds after petition to the  director
of  finance),  or  subdivision  (b)  of section one hundred thirty-seven
(authorizing the filing of a petition with the director of finance based
on a notice of deficiency), nor shall such assessment or the  collection
thereof be prohibited by the provisions of subdivision (c).
(3)  If the taxpayer is deceased or under a legal disability, a notice
of additional tax due may be mailed to his last known address in or  out
of  the  city, unless the director of finance has received notice of the
existence of a fiduciary relationship with respect to the taxpayer.
(f) Waiver of restrictions.--The taxpayer shall at any  time  (whether
or  not  a notice of deficiency has been issued) have the right to waive
the restrictions on assessment and collection of the whole or  any  part
of  the deficiency by a signed notice in writing filed with the director
of finance.
(g) Deficiency defined.-- For purposes of  this  title,  a  deficiency
means  the  amount of the tax imposed by this title, less (i) the amount
shown as the tax upon the taxpayer's return (whether the return was made
or the tax computed by him or by the director  of  finance),  and  less,
(ii)  the  amounts previously assessed (or collected without assessment)
as a deficiency and plus (iii)  the  amount  of  any  rebates.  For  the
purpose  of  this  definition, the tax imposed by this title and the tax
shown on the return shall both be determined without regard to  payments
on account of estimated tax; and a rebate means so much of an abatement,
credit, refund or other repayment (whether or not erroneous) made on the

ground  that  the  amounts  entering into the definition of a deficiency
showed a balance in favor of the taxpayer.
(h) Exception where change or correction of sales and compensating use
tax  liability  is not reported.--(1) If a taxpayer fails to comply with
section  one  hundred  twenty-seven-A  in  not  reporting  a  change  or
correction  of  his  sales  and compensating use tax liability or in not
filing a copy of an amended return or report relating to his  sales  and
compensating  use  tax  liability,  instead  of  the  mode  and  time of
assessment  provided  for  in  subdivision  (b)  of  this  section,  the
commissioner  of finance may assess a deficiency based upon such changed
or corrected sales and compensating use tax liability, as  same  relates
to  credits  claimed  under  section  one hundred one, by mailing to the
taxpayer a notice of additional tax due specifying  the  amount  of  the
deficiency,  and  such deficiency, together with the interest, additions
to tax and penalties stated in such notice, shall be deemed assessed  on
the  date  such  notice  is  mailed  unless within thirty days after the
mailing of such notice a report of the state change or correction  or  a
copy  of  an  amended  return or report, where such copy was required by
section one hundred twenty-seven-A, is filed accompanied by a  statement
showing  wherein  such state determination and such notice of additional
tax due are erroneous.
(2) Such notice shall not be considered as a notice of deficiency  for
the  purposes  of  this  section, subdivision (f) of section one hundred
thirty-five  (limiting  credits  or  refunds  after  petition   to   the
commissioner  of  finance),  or  subdivision  (b) of section one hundred
thirty-seven (authorizing the filing of a petition with the commissioner
of finance based on a notice of deficiency), nor shall  such  assessment
or the collection thereof be prohibited by the provisions of subdivision
(c) of this section.
(3)  If the taxpayer is deceased or under a legal disability, a notice
of additional tax due may be mailed to his last known address in or  out
of  the  city,  and such notice shall be sufficient for purposes of this
title. If the commissioner of finance has received notice that a  person
is  acting  for  the  taxpayer  in  a fiduciary capacity, a copy of such
notice shall also be mailed to the fiduciary named in such notice.
§ 130. Assessment. (a) Assessment date.--The amount  of  tax  which  a
return  shows  to be due, or the amount of tax which a return would have
shown to be due but for a mathematical error,  shall  be  deemed  to  be
assessed  on  the  date  of  filing of the return (including any amended
return showing an increase of tax). In the case  of  a  return  properly
filed  without  computation  of tax, the tax computed by the director of
finance shall be deemed to be assessed on the date on which  payment  is
due.  If  a  notice  of  deficiency  has  been mailed, the amount of the
deficiency shall be deemed to be  assessed  on  the  date  specified  in
subdivision (b) of section one hundred twenty-nine if no petition to the
director  of  finance is filed, or if a petition is filed, then upon the
date when a decision of the director of finance establishing the  amount
of  the  deficiency becomes final.  If an amended return or report filed
pursuant to section one hundred twenty-seven concedes the accuracy of  a
federal  adjustment,  change  or correction, any deficiency in tax under
this title resulting therefrom shall be deemed to  be  assessed  on  the
date  of filing such report or amended return, and such assessment shall
be timely notwithstanding section one hundred thirty-one.  If  a  report
filed  pursuant  to  section  one  hundred  twenty-seven-A  concedes the
accuracy of a state change or correction of sales and  compensating  use
tax  liability,  any  deficiency  in  tax  under  this  title  resulting
therefrom shall be deemed assessed on the date of  filing  such  report,
and  such assessment shall be timely notwithstanding section one hundred

thirty-one. If  a  notice  of  additional  tax  due,  as  prescribed  in
subdivision (e) of section one hundred twenty-nine, has been mailed, the
amount  of  the  deficiency  shall  be deemed to be assessed on the date
specified  in  such  subdivision  unless  within  thirty  days after the
mailing of such notice a report of the federal change or  correction  or
an amended return, where such return was required by section one hundred
twenty-seven,  is filed accompanied by a statement showing where in such
federal  determination  and  such  notice  of  additional  tax  due  are
erroneous.  If  a  notice  of  additional  tax  due,  as  prescribed  in
subdivision (h) of section one hundred twenty-nine, has been mailed, the
amount of the deficiency shall be deemed to  be  assessed  on  the  date
specified  in  such  subdivision  unless  within  thirty  days after the
mailing of such notice a report of the state change or correction, or  a
copy  of  an  amended  return or report, where such copy was required by
section one hundred twenty-seven-A, is filed accompanied by a  statement
showing  wherein  such state determination and such notice of additional
tax due are erroneous. Any amount paid as a tax or in respect of a  tax,
other  than  amounts paid as estimated income tax, shall be deemed to be
assessed upon the date of receipt of payment, notwithstanding any  other
provisions.
(b)  Other  assessment powers.--If the mode or time for the assessment
of any tax under this title (including interest, additions  to  tax  and
assessable  penalties)  is  not  otherwise provided for, the director of
finance may establish the same by regulations.
(c) Estimated income tax.--No unpaid amount  of  estimated  tax  under
section one hundred sixteen shall be assessed.
(d) Supplemental assessment.--The director of finance may, at any time
within  the  period  prescribed  for  assessment,  make  a  supplemental
assessment, subject to the provisions of section one hundred twenty-nine
where applicable, whenever it is  ascertained  that  any  assessment  is
imperfect or incomplete in any material respect.
(e)  Cross reference.--For assessment in case of jeopardy, see section
one hundred forty-two.
§ 131. Limitations on assessment. (a)  General.--Except  as  otherwise
provided  in  this  section,  any tax under this title shall be assessed
within three years after the return  was  filed  (whether  or  not  such
return was filed on or after the date prescribed).
(b)  Time  return deemed filed.--For purposes of this section a return
of income tax filed  before  the  last  day  prescribed  by  law  or  by
regulations promulgated pursuant to law for the filing thereof, shall be
deemed to be filed on such last day.
(c)  Exceptions.--(1) Assessment at any time.--The tax may be assessed
at any time if--
(A) no return is filed,
(B) a false or fraudulent return is filed with intent to evade tax,
(C) the taxpayer fails to comply with section one hundred twenty-seven
in not reporting a change or correction  increasing  or  decreasing  his
federal  taxable income as reported on his federal income tax return, or
the execution of a notice of waiver and the changes  or  corrections  on
which  it  is  based or in not reporting a change or correction which is
treated in the same manner as if it were a deficiency for federal income
tax purposes, or in not filing an amended return, or
(D) the taxpayer fails to file a report or amended  return  or  report
required  under  section  one  hundred  twenty-seven-A,  in respect of a
change or correction  of  sales  and  compensating  use  tax  liability,
relating  to  the  purchase  or  use  of  items  for  which  a  sales or
compensating use tax credit against the tax imposed by  this  title  was
claimed.
(2)  Extension by agreement.--Where, before the expiration of the time
prescribed in this section for the assessment of tax, both the  director
of  finance and the taxpayer have consented in writing to its assessment
after such time, the tax may be  assessed  at  any  time  prior  to  the
expiration  of  the period agreed upon. The period so agreed upon may be
extended by subsequent agreements in writing made before the  expiration
of the period previously agreed upon.
(3)  Report  of  changed  or corrected federal income. If the taxpayer
shall, pursuant to section one hundred twenty-seven, report a change  or
correction  or  file  an  amended  return  increasing  or decreasing his
federal taxable income or report the execution of a notice of waiver and
the changes and corrections on  which  it  is  based,  or  a  change  or
correction  which  is  treated  in  the  same  manner  as  if  it were a
deficiency for federal income  tax  purposes,  the  assessment  (if  not
deemed  to  have  been  made  upon  the  filing of the report or amended
return) may be made at any time within two years after  such  report  or
amended return was filed. The amount of such assessment of tax shall not
exceed  the  amount  of  the  increase  in city tax attributable to such
federal change or correction. The provisions of this paragraph shall not
affect the time within which or the amount for which an  assessment  may
otherwise be made.
(4)  Deficiency  attributable  to  net operating loss carryback.--If a
deficiency is attributable to the application to the taxpayer of  a  net
operating  loss  carryback,  it  may  be  assessed  at  any  time that a
deficiency for the taxable year of the loss may be assessed.
(5) Recovery  of  erroneous  refund.--An  erroneous  refund  shall  be
considered an underpayment of tax on the date made, and an assessment of
a  deficiency arising out of an erroneous refund may be made at any time
within two years  from  the  making  of  the  refund,  except  that  the
assessment  may  be made within five years from the making of the refund
if it appears that any part of  the  refund  was  induced  by  fraud  or
misrepresentation of a material fact.
(6)  Request  for  prompt  assessment.--If  a return is required for a
decedent or for his estate during the period of administration, the  tax
shall  be assessed within eighteen months after written request therefor
(made after the return is filed) by the executor, administrator or other
person representing the estate of such decedent, but not more than three
years after the return was filed, except as otherwise provided  in  this
subdivision and subdivision (d).
(7)  Report  on  use  of  certain  property.--Under  the circumstances
described in paragraph two of subdivision (b)  of  section  one  hundred
eight,  the tax may be assessed within three years after the filing of a
return reporting that property has been used  for  purposes  other  than
research and development to a greater extent than originally reported.
(8)   Report   concerning   waste   treatment   facility.--Under   the
circumstances described in paragraph (9) of section one hundred six, the
tax may be assessed within three years after the filing  of  the  return
containing the information required by such paragraph.
(9)  Report  of  change  or  corrected  sales and compensating use tax
liability.--If the taxpayer files a report or amended return  or  report
required  under  section  one  hundred  twenty-seven-A,  in respect of a
change or correction of sales and compensating use  tax  liability,  the
assessment  (if  not  deemed  to  have  been made upon the filing of the
report) may be made at any time within two years after  such  report  or
amended return or report was filed. The amount of such assessment of tax
shall  not exceed the amount of the increase in city tax attributable to
such state change or correction. The provisions of this paragraph  shall

not  affect  the time within which or the amount for which an assessment
may otherwise be made.
(d) Omission of income on return.--The tax may be assessed at any time
within six years after the return was filed if (1) a taxpayer omits from
his  city  unincorporated  business  gross  income  an  amount  properly
includible therein which is in excess of twenty-five per centum  of  the
amount  of  city  unincorporated  business  gross  income  stated in the
return, or (2) an estate or trust omits income from  its  return  in  an
amount  in excess of twenty-five per cent of its income determined as if
it were an individual.
For purposes of this subdivision there shall not be taken into account
any amount which is omitted in the return if such amount is disclosed in
the return, or in a statement  attached  to  the  return,  in  a  manner
adequate  to apprise the director of finance of the nature and amount of
such item.
(e) Suspension of running of period of limitation.--The running of the
period of limitations on assessment or collection of tax or other amount
(or of a transferee's liability) shall, after the mailing of a notice of
deficiency, be suspended for the period during  which  the  director  of
finance  is  prohibited  under  subdivision  (c)  of section one hundred
twenty-nine from making the assessment or from collecting by levy.
§ 132. Interest on underpayment. (a) General.--If any amount of income
tax is not paid on or before the last date prescribed in this title  for
payment,  interest on such amount at the rate set by the commissioner of
finance pursuant to section one hundred forty-five, or, if  no  rate  is
set, at the rate of six percentum per annum shall be paid for the period
from  such  last  date to the date paid, whether or not any extension of
time for payment was granted. Interest under this subdivision shall  not
be paid if the amount thereof is less than one dollar.
(b)  Exception  as  to estimated tax.--This section shall not apply to
any failure to pay estimated tax under section one hundred sixteen.
(c) Exception for mathematical error.--No interest shall be imposed on
any underpayment of tax due solely to mathematical error if the taxpayer
files a return within the time prescribed in this title  (including  any
extension  of  time)  and  pays  the amount of underpayment within three
months after the due date of such return, as it may be extended.
(e)  Suspension  of  interest  on  deficiencies.--If   a   waiver   of
restrictions  on  assessment  of  a  deficiency  has  been  filed by the
taxpayer, and if notice and  demand  by  the  director  of  finance  for
payment  of  such  deficiency  is  not made within thirty days after the
filing of such waiver, interest shall not be imposed on such  deficiency
for the period beginning immediately after such thirtieth day and ending
with the date of notice and demand.
(f)  Tax  reduced  by carryback.--If the amount of tax for any taxable
year is reduced by reason of a carryback of a net operating  loss,  such
reduction in tax shall not affect the computation of interest under this
section  for the period ending with the filing date for the taxable year
in which the net operating  loss  arises.  Such  filing  date  shall  be
determined without regard to extensions of time to file.
(g)  Interest  treated  as  tax.--Interest under this section shall be
paid upon notice and demand and shall be assessed, collected and paid in
the same manner as income tax. Any reference in this title  to  the  tax
imposed  by this title shall be deemed also to refer to interest imposed
by this section on such tax.
(h) Interest on penalties or  additions  to  tax.--Interest  shall  be
imposed  under  subdivision  (a) in respect of any assessable penalty or
addition to tax only if such assessable penalty or addition  to  tax  is
not paid within ten days from the date of the notice and demand therefor

under  subdivision  (b)  of  section one hundred forty, and in such case
interest shall be imposed only for the period  from  such  date  of  the
notice and demand to the date of payment.
(i)  Payment  prior to notice of deficiency.--If, prior to the mailing
to the taxpayer of a notice  of  deficiency  under  subdivision  (b)  of
section  one  hundred  twenty-nine, the director of finance mails to the
taxpayer a notice of proposed increase of tax  and  within  thirty  days
after  the date of the notice of proposed increase the taxpayer pays all
amounts shown on the notice to be due to the  director  of  finance,  no
interest  under  this section on the amount so paid shall be imposed for
the period after the date of such notice of proposed increase.
(j) Payment within ninety days after  notice  of  deficiency.--  If  a
notice  of deficiency under section one hundred twenty-nine is mailed to
the taxpayer, and the total amount specified in such notice is  paid  on
or  before  the  ninetieth day after the date of mailing, interest under
this section shall not be imposed for the period after the date  of  the
notice.
(k)  Payment  within  ten days after notice and demand.--If notice and
demand is made for payment  of  any  amount  under  subdivision  (b)  of
section  one  hundred  forty, and if such amount is paid within ten days
after the date of such notice and demand, interest under this section on
the amount so paid shall not be imposed for the period after the date of
such notice and demand.
(l) Limitation  on  assessment  and  collection.--Interest  prescribed
under  this section may be assessed and collected at any time during the
period within which the tax or  other  amount  to  which  such  interest
relates may be assessed and collected, respectively.
(m)  Interest on erroneous refund.--Any portion of tax or other amount
which has been erroneously refunded, and which  is  recoverable  by  the
commissioner  of  finance,  shall  bear  interest at the rate set by the
commissioner of finance pursuant to section one hundred forty-five,  or,
if no rate is set, at the rate of six per centum per annum from the date
of  the  payment  of the refund, but only if it appears that any part of
the refund was induced by fraud or a  misrepresentation  of  a  material
fact.
(n)  Satisfaction by credits.--If any portion of a tax is satisfied by
credit of an overpayment, then no interest shall be imposed  under  this
section  on  the  portion  of the tax so satisfied for any period during
which, if the credit  had  not  been  made,  interest  would  have  been
allowable with respect to such overpayment.
§  133.  Additions to tax and civil penalties. (a) Failure to file tax
return.--In case of failure to file a tax return under this title on  or
before  the  prescribed date (determined with regard to any extension of
time for filing), unless it  is  shown  that  such  failure  is  due  to
reasonable cause and not due to willful neglect, there shall be added to
the  amount  required to be shown as tax on such return five per cent of
the amount of such tax if the failure is for not more  than  one  month,
with  an  additional five per cent for each additional month or fraction
thereof during which such failure continues, not  exceeding  twenty-five
per  cent in the aggregate. For this purpose, the amount of tax required
to be shown on the tax return shall be reduced by the amount of any part
of the tax which is paid on or before the date prescribed for payment of
the tax and by the amount of any credit against the  tax  which  may  be
claimed upon the return.
(b)  Deficiency due to negligence.--If any part of a deficiency is due
to negligence or  intentional  disregard  of  this  title  or  rules  or
regulations  hereunder  (but  without intent to defraud), there shall be
added to the tax an amount equal to five per cent of the deficiency.
(c) Failure to file declaration or underpayment of estimated  tax.--If
any  taxpayer  fails  to file a declaration of estimated tax or fails to
pay all or any part of an installment of  estimated  tax,  he  shall  be
deemed  to  have  made  an underpayment of estimated tax. There shall be
added  to  the tax for the taxable year an amount at the rate set by the
commissioner of finance pursuant to section one hundred forty-five,  or,
if  no  rate  is  set,  at the rate of six per centum per annum upon the
amount of the underpayment for the period of the  underpayment  but  not
beyond  the fifteenth day of the fourth month following the close of the
taxable year. The amount of underpayment shall  be  the  excess  of  the
amount  of  the  installment  which  would be required to be paid if the
estimated tax were equal to ninety per cent of  the  tax  shown  on  the
return  for  the taxable year (or if no return was filed, ninety percent
of the tax for such year) over the amount, if any,  of  the  installment
paid  on  or  before  the  last  day  prescribed  for  such  payment. No
underpayment shall be deemed to exist with respect to a  declaration  or
installment  otherwise due on or after the taxpayer's death. In any case
in which there would be no underpayment if this subdivision were applied
by substituting "eighty percent" for "ninety percent" where  it  appears
in  the  second  preceding  sentence,  the  addition  to  tax under this
subdivision shall  be  equal  to  seventy-five  percent  of  the  amount
otherwise determined under this subdivision.
(d)  Exception  to  addition  for  underpayment of estimated tax.--The
addition to tax under subdivision (c) with respect to  any  underpayment
of  any  installment  shall  not  be  imposed of the total amount of all
payments of estimated tax made on or before the last date prescribed for
the payment of such installment  equals  or  exceeds  whichever  of  the
following is the lesser--
(1)  The amount which would have been required to be paid on or before
such date if the estimated tax were whichever of the  following  is  the
least--
(A)  The  tax  shown  on  the return of the taxpayer for the preceding
taxable year, if a return showing a liability for tax was filed  by  the
taxpayer  for  the  preceding taxable year and such preceding year was a
taxable year of twelve months, or
(B) An amount equal to the tax computed, at the  rates  applicable  to
the  taxable  year, but otherwise on the basis of the facts shown on his
return for, and the law applicable to, the preceding taxable year, or
(C) An amount equal to ninety per cent of the tax for the taxable year
computed by placing on an annualized basis the  unincorporated  business
taxable  income  for  the  months  in the taxable year ending before the
month in which the installment is required to be paid. For  purposes  of
this  subparagraph,  the unincorporated business taxable income shall be
placed on an annualized basis by--
(i) multiplying by twelve (or, in the case of a taxable year  of  less
than  twelve  months,  the  number  of  months  in the taxable year) the
unincorporated business taxable income for the  months  in  the  taxable
year  ending before the month in which the installment is required to be
paid, and
(ii) dividing the resulting amount by the  number  of  months  in  the
taxable  year  ending  before  the  month in which such installment date
falls, or
(D) (i) If the base period percentage for any six  consecutive  months
of  the  taxable year equals or exceeds seventy percent, an amount equal
to ninety percent of the tax determined in the following manner--
(I) take the unincorporated business taxable  income  for  all  months
during the taxable year preceding the filing month,
(II)  divide  such amount by the base period percentage for all months
during the taxable year preceding the filing month,
(III)  determine  the  tax  on  the amounts determined under subclause
(II), and
(IV) multiply the tax determined under subclause  (III)  by  the  base
period percentage for the filing month and all months during the taxable
year preceding the filing month.
(ii) For purposes of clause (i)--
(I)  the  base period percentage for any period of months shall be the
average percent which the unincorporated business taxable income for the
corresponding months in each of the three preceding years bears  to  the
unincorporated  business  taxable income for the three preceding taxable
years. The commissioner of finance may by regulations  provide  for  the
determination  of  the  base  period  percentage  in  the  case  of  new
unincorporated businesses and other similar circumstances, and
(II) the term "filing month" means the month in which the  installment
is required to be paid; or
(2)  An  amount  equal  to  ninety percent of the tax computed, at the
rates applicable to the  taxable  year,  on  the  basis  of  the  actual
unincorporated  business  taxable  income  for the months in the taxable
year ending before the month in which the installment is required to  be
paid.
(e) Allocation of unincorporated business tax.--(1) Except as provided
in  paragraph  two hereof, subparagraphs (A) and (B) of paragraph one of
subdivision (d) of this section shall not  apply  in  the  case  of  any
taxpayer  which  had  unincorporated  business  taxable  income,  or the
portion thereof allocated within the city, of  one  million  dollars  or
more  for  any  taxable  year during the three taxable years immediately
preceding the taxable year involved.
(2) The amount treated as the estimated tax  under  subparagraphs  (A)
and  (B) of paragraph one of subdivision (d) of this section shall in no
event be less than seventy-five percent of the tax shown on  the  return
for  the  taxable year beginning in nineteen hundred eighty-three or, if
no return was filed, seventy-five percent of the tax for such year.
(f) Deficiency due to fraud.--If any part of a deficiency  is  due  to
fraud, there shall be added to the tax an amount equal to fifty per cent
of the deficiency. This amount shall be in lieu of any other addition to
tax imposed by subdivision (a) or (b).
(g) Additional penalty.--Any taxpayer who with fraudulent intent shall
fail  to  pay any tax, or to make, render, sign or certify any return or
declaration of estimated tax, or to supply any  information  within  the
time  required  by  or under this title, shall be liable to a penalty of
not more than one thousand dollars, in addition  to  any  other  amounts
required  under  this title, to be imposed assessed and collected by the
director of finance. The director of finance shall have  the  power,  in
his  discretion,  to  waive, reduce or compromise any penalty under this
subdivision.
(h) Additions treated as tax.--The  additions  to  tax  and  penalties
provided  by this section shall be paid upon notice and demand and shall
be assessed, collected and paid in the same manner  as  taxes,  and  any
reference  in  this  title  to  income tax or tax imposed by this title,
shall be deemed also to refer to the  additions  to  tax  and  penalties
provided   by   this  section.  For  purposes  of  section  one  hundred
twenty-nine, this subdivision shall not apply to--
(1) any addition to tax  under  subdivision  (a)  except  as  to  that
portion attributable to a deficiency;
(2) any addition to tax under subdivision (c); and
(3) any additional penalty under subdivision (g).
(i) Determination of deficiency.--For purposes of subdivisions (b) and
(f),  the  amount shown as the tax by the taxpayer upon his return shall
be taken into account in determining the amount of the  deficiency  only
if  such  return  was filed on or before the last day prescribed for the
filing  of  such return, determined with regard to any extension of time
for such filing.
(j)  Substantial  understatement  of   liability.--If   there   is   a
substantial  understatement  of tax for any taxable year, there shall be
added to the tax an amount equal to ten percent of  the  amount  of  any
underpayment  attributable  to such understatement. For purposes of this
subdivision, there is  a  substantial  understatement  of  tax  for  any
taxable  year  if  the amount of the understatement for the taxable year
exceeds the greater of ten percent of the tax required to  be  shown  on
the  return for the taxable year, or five thousand dollars. For purposes
of the preceding sentence, the term "understatement" means the excess of
the amount of the tax required to be shown on the return for the taxable
year, over the amount of the tax imposed which is shown on  the  return.
The  amount  of the understatement under the preceding sentence shall be
reduced by that portion of the understatement which is  attributable  to
the  tax  treatment  of  any  item  by  the  taxpayer if there is or was
substantial authority for such treatment, or any item  with  respect  to
which  the  relevant  facts  affecting  the  item's  tax  treatment  are
adequately disclosed in the return or in a  statement  attached  to  the
return.  The  commissioner  of  finance may waive all or any part of the
addition to tax provided  by  this  subdivision  on  a  showing  by  the
taxpayer that there was reasonable cause for the understatement (or part
thereof) and that the taxpayer acted in good faith.
§  134. Overpayment. (a) General.--The director of finance, within the
applicable period of limitations, may credit an  overpayment  of  income
tax and interest on such overpayment against any liability in respect of
any  tax  imposed  by this title or by titles on the person who made the
overpayment, and the balance shall be refunded.
(b) Credits  against  estimated  tax.--The  director  of  finance  may
prescribe  regulations providing for the crediting against the estimated
income tax for any taxable year  of  the  amount  determined  to  be  an
overpayment  of  the  income  tax  for  a preceding taxable year. If any
overpayment of income tax is so claimed as a  credit  against  estimated
tax  for the succeeding taxable year, such amount shall be considered as
a payment of the income tax for the succeeding taxable year (whether  or
not  claimed  as  a  credit in the declaration of estimated tax for such
succeeding taxable year), and no claim for  credit  or  refund  of  such
overpayment  shall  be  allowed  for  the  taxable  year  for  which the
overpayment arises.
(c) Rule where no tax liability.--If there is no tax liability  for  a
period  in respect of which an amount is paid as income tax, such amount
shall be considered an overpayment.
(d) Assessment and collection after limitation period.--If any  amount
of  income  tax  is  assessed  or  collected after the expiration of the
period of limitations properly applicable thereto, such amount shall  be
considered an overpayment.
§ 135. Limitations on credit or refund. (a) General.--Claim for credit
or refund of an overpayment of income tax shall be filed by the taxpayer
within  three years from the time the return was filed or two years from
the time the tax was paid, whichever of such periods expires the  later,
or  if  no  return was filed, within two years from the time the tax was
paid. If the claim is filed within the three year period, the amount  of
the credit or refund shall not exceed the portion of the tax paid within
the  three  years immediately preceding the filing of the claim plus the

period of any extension of time for filing the return. If the  claim  is
not filed within the three year period, but is filed within the two year
period,  the amount of the credit or refund shall not exceed the portion
of the tax paid during the two years immediately preceding the filing of
the  claim. Except as otherwise provided in this section, if no claim is
filed, the amount of a credit or refund  shall  not  exceed  the  amount
which  would  be  allowable  if  a  claim had been filed on the date the
credit or refund is allowed.
(b) Extension  of  time  by  agreement.--If  an  agreement  under  the
provisions  of  paragraph  two of subdivision (c) of section one hundred
thirty-one (extending the period for assessment of income tax)  is  made
within  the  period  prescribed  in  subdivision (a) for the filing of a
claim for credit or refund, the period for filing a claim for credit  or
refund,  or  for making credit or refund if no claim is filed, shall not
expire prior to six months after the expiration  of  the  period  within
which  an  assessment  may  be  made  pursuant  to  the agreement or any
extension thereof. The amount of such credit or refund shall not  exceed
the  portion  of  the  tax paid after the execution of the agreement and
before the filing of the claim or the making of the credit or refund, as
the case may be, plus the portion of the  tax  paid  within  the  period
which  would  be  applicable  under  subdivision (a) if a claim had been
filed on the date the agreement was executed.
(c) Notice of change or correction of federal  taxable  income.--If  a
taxpayer  is  required  by  section one hundred twenty-seven to report a
change or correction in federal taxable income reported on  his  federal
income  tax return, or to report a change or correction which is treated
in the same manner as if it were an overpayment for federal  income  tax
purposes,  or  to  file  an amended return with the director of finance,
claim for credit or refund of any resulting overpayment of tax shall  be
filed  by the taxpayer within two years from the time the notice of such
change or correction or such amended return was  required  to  be  filed
with  the  director of finance. If the report or amended return required
by section one hundred twenty-seven is not filed within the  ninety  day
period  therein  specified,  interest  or any resulting refund or credit
shall cease to accrue after such  ninetieth  day.  The  amount  of  such
credit  or  refund  shall  not exceed the amount of the reduction in tax
attributable to such federal change, correction or items amended on  the
taxpayer's  amended  federal  income tax return.  This subdivision shall
not affect the time within which or the amount for  which  a  claim  for
credit or refund my be filed apart from this subdivision.
(d) Overpayment attributable to net operating loss carryback.--A claim
for  credit or refund of so much of an overpayment as is attributable to
the application to the taxpayer of a net operating loss carryback  shall
be  filed  within  three  years from the time the return was due for the
taxable year of the loss, or within the period prescribed in subdivision
(b) in respect of such taxable year, or within the period prescribed  in
subdivision  (c),  where  applicable,  in respect of the taxable year to
which the net operating loss is  carried  back,  whichever  expires  the
latest.
(e)  Failure  to  file  claim  within prescribed period.--No credit or
refund shall be allowed or made, except as provided in  subdivision  (f)
of  this  section or subdivision (d) of section one hundred thirty-eight
after the expiration of the applicable period of limitation specified in
this title unless a claim for credit or refund is filed by the  taxpayer
within  such period. Any later credit shall be void and any later refund
erroneous. No period of limitations specified in  any  other  law  shall
apply  to  the recovery by a taxpayer of moneys paid in respect of taxes
under this title.
(f) Effect of  petition  to  director  of  finance.--If  a  notice  of
deficiency  for  a  taxable  year  has been mailed to the taxpayer under
section one hundred twenty-nine and  if  the  taxpayer  files  a  timely
petition  with  the  director  of  finance  under  section  one  hundred
thirty-seven, he may determine that the taxpayer has made an overpayment
for  such  year (whether or not it also determines a deficiency for such
year). No separate claim for credit or refund for  such  year  shall  be
filed,  and  no credit or refund for such year shall be allowed or made,
except--
(1) as to overpayments determined by a decision  of  the  director  of
finance which has become final;
(2)  as  to  any  amount  collected in excess of an amount computed in
accordance with the decision of the director of finance which has become
final;
(3) as to any amount collected after the period of limitation upon the
making of levy for collection has expired; and
(4) as to any amount claimed as a result of  a  change  or  correction
described in subdivision (c).
(g)  Limit  on amount of credit or refund.-- The amount of overpayment
determined under  subdivision  (f)  shall,  when  the  decision  of  the
director  of  finance  has  become  final,  be  credited  or refunded in
accordance with subdivision (a) of section one hundred  thirty-four  and
shall  not  exceed  the  amount  of  tax  which  the director of finance
determines as part of his decision was paid--
(1) after the mailing of the notice of deficiency, or
(2) within the period which would  be  applicable  under  subdivisions
(a),  (b)  or  (c),  if  on  the  date  of  the mailing of the notice of
deficiency a claim had been filed (whether or  not  filed)  stating  the
grounds  upon  which  the  director  of  finance  finds that there is an
overpayment.
(h) Early return.--For purposes of  this  section,  any  return  filed
before  the  last  day  prescribed  for  the  filing  thereof  shall  be
considered as filed on such last day, determined without regard  to  any
extension of time granted the taxpayer.
(i) Prepaid income tax.--For purposes of this section, any tax paid by
the  taxpayer  before  the  last  day prescribed for its payment and any
amount paid by the taxpayer as estimated income tax for a  taxable  year
shall  be  deemed  to  have been paid by him on the fifteenth day of the
fourth month following the close of his taxable  year  with  respect  to
which such amount constitutes a credit or payment.
(j)  Cross  reference.--For  provision  barring  refund of overpayment
credited against tax of  a  succeeding  year,  see  subdivision  (d)  of
section one hundred thirty-four.
(k)  Notice  of change or correction of sales and compensating use tax
liability.--If  a  taxpayer  is  required   by   section   one   hundred
twenty-seven-A to file a report or amended return in respect of a change
or correction of his sales and compensating use tax liability, claim for
credit  or  refund of any resulting overpayment of tax shall be filed by
the taxpayer within two years from  the  time  such  report  or  amended
return was required to be filed with the commissioner of finance. If the
report  or amended return required by section one hundred twenty-seven-A
is not filed within the ninety day period therein specified, interest on
any resulting  refund  or  credit  shall  cease  to  accrue  after  such
ninetieth  day.  The  amount  of such credit or refund shall be computed
without change of the allocation of income or  capital  upon  which  the
taxpayer's  return  (or  any additional assessment) was based, and shall
not exceed the amount of the  reduction  in  tax  attributable  to  such
change  or  correction of sales and compensating use tax liability. This

subdivision shall not affect the time within which  or  the  amount  for
which  a  claim  for  credit  or  refund  may  be  filed apart from this
subdivision.
§  136.  Interest  on  overpayment.  (a) General.--Notwithstanding the
provisions of section three-a of the  general  municipal  law,  interest
shall be allowed and paid as follows at the rate set by the commissioner
of finance pursuant to section one hundred forty-five, or, if no rate is
set,  at  the  rate  of  six  percent  per annum upon any overpayment in
respect of the tax imposed by this title:
(1) from the date of the overpayment to the  due  date  of  an  amount
against which a credit is taken; or
(2)  from  the  date of the overpayment to a date (to be determined by
the commissioner of finance), preceding the date of a  refund  check  by
not  more than thirty days, whether or not such refund check is accepted
by the taxpayer  after  tender  of  such  check  to  the  taxpayer.  The
acceptance  of such check shall be without prejudice to any right of the
taxpayer to claim any additional overpayment and interest thereon.
(3) late  returns.  Notwithstanding  paragraph  one  or  two  of  this
subdivision,  in  the  case  of a return of tax which is filed after the
last date prescribed for filing such return (determined with  regard  to
extensions), no interest shall be allowed or paid for any day before the
date on which the return is filed.
No  interest  shall  be  allowed or paid if the amount thereof is less
than one dollar.
(b)  Advance  payment  of  tax  and  payment  of  estimated  tax.--The
provisions   of   subdivisions  (h)  and  (i)  of  section  one  hundred
thirty-five applicable in determining the date of  payment  of  tax  for
purposes  of  determining the period of limitations on credit or refund,
shall be applicable in determining the date of payment for  purposes  of
this section.
(c)  Income tax refund within three months of due date of tax.--If any
overpayment of tax imposed by this title is refunded within three months
after the last date prescribed (or permitted by extension of  time)  for
filing  the  return  of such tax or within three months after the return
was filed, whichever is later, no interest shall be allowed  under  this
section on such overpayment.
(d)  Refund  of  income tax caused by carryback.--For purposes of this
section, if any overpayment of tax imposed by this title results from  a
carryback  of a net operating loss, such overpayment shall be deemed not
to have been made prior to the filing date for the taxable year in which
such net operating loss arises. Such filing  date  shall  be  determined
without   regard  to  extensions  of  time  to  file.  For  purposes  of
subdivision (c) of this section any overpayment described  herein  shall
be  treated  as  an  overpayment  for the loss year and such subdivision
shall be applied with respect to such overpayment by treating the return
for the loss year as not filed before  claim  for  such  overpayment  is
filed.  The  term  "loss year" means the taxable year in which such loss
arises.
(e) No interest until return in processible form.--
(1) For purposes of subdivisions (a) and (c) of this section, a return
shall not be treated as filed until it is filed in processible form.
(2) For purposes of paragraph one of this subdivision, a return is  in
a processible form if--
(A) such return is filed on a permitted form, and
(B) such return contains--
(i)  the  taxpayer's  name,  address,  and  identifying number and the
required signatures, and
(ii) sufficient required information (whether  on  the  return  or  on
required  attachments)  to  permit  the mathematical verification of tax
liability shown on the return.
(f) Cross-reference.--For provision terminating interest after failure
to file notice of federal change under section one hundred twenty-seven,
see subdivision (c) of section one hundred thirty-five.
§  137.  Petition to director of finance.  (a) General.--The form of a
petition to the director of finance, and further proceedings before  the
director  of  finance in any case initiated by the filing of a petition,
shall be governed by  such  rules  as  the  director  of  finance  shall
prescribe.  No  petition  shall  be  denied  in whole or in part without
opportunity for a hearing on reasonable prior notice. Such hearing shall
be conducted by the  director  of  finance,  or  by  a  hearing  officer
designated by the director of finance to take evidence and report to the
director  of  finance.  The director of finance shall decide the case as
quickly as practicable. Notice of the decision shall be mailed  promptly
to  the  taxpayer  by  certified  or  registered  mail at his last known
address, and such notice shall set forth the director's findings of fact
and a brief statement of the grounds of decision in each case decided in
whole or in part adversely to the taxpayer.
(b) Petition for redetermination of a deficiency.--Within ninety days,
or one hundred fifty days if the notice is addressed to a person outside
of the United States, after the mailing  of  the  notice  of  deficiency
authorized  by  section one hundred twenty-nine, the taxpayer may file a
petition with the director of  finance  for  a  redetermination  of  the
deficiency.  Such  petition  may  also assert a claim for refund for the
same taxable year or years, subject to the  limitations  of  subdivision
(g) of section one hundred thirty-five.
(c)  Petition  for  refund.--A  taxpayer  may file a petition with the
director of finance for the amounts asserted in a claim for refund if--
(1) the taxpayer has filed a timely claim for refund with the director
of finance,
(2) the taxpayer has not previously filed with the director of finance
a timely petition under subdivision (b) for the same taxable year unless
the petition under this subdivision relates  to  a  separate  claim  for
credit  or  refund  properly  filed under subdivision (f) of section one
hundred thirty-five, and
(3) either (A) six months have expired since the claim was  filed,  or
(B) the director of finance has mailed to the taxpayer, by registered or
certified  mail,  a  notice of disallowance of such claim in whole or in
part. No petition under this subdivision shall be filed  more  than  two
years  after  the  date  of  mailing of a notice of disallowance, unless
prior to the expiration of such two year period it has been extended  by
written  agreement between the taxpayer and the director of finance.  If
a taxpayer files a written waiver of the requirement that he be mailed a
notice  of  disallowance,  the  two  year  period  prescribed  by   this
subdivision  for  filing  a  petition for refund shall begin on the date
such waiver is filed.
(d) Assertion of deficiency after filing petition.--(1)  Petition  for
redetermination of deficiency.--If a taxpayer files with the director of
finance  a petition for redetermination of a deficiency, the director of
finance shall have power to determine a greater deficiency than asserted
in the notice of deficiency and to determine if there should be assessed
any  addition  to  tax  or  penalty  provided  in  section  one  hundred
thirty-three,  if  claim  therefor  is asserted at or before the hearing
under the rules of the director of finance.
(2) Petition for refund.--If the taxpayer files with the  director  of
finance a petition for credit or refund for a taxable year, the director
of finance may
(A)  determine  a  deficiency  for  such  year  as  to  any  amount of
deficiency asserted at or before the hearing under rules of the director
of finance, and within the period in which an assessment would be timely
under section one hundred thirty-one, or
(B) deny so much of the amount for which credit or refund is sought in
the petition, as is offset  by  other  issues  pertaining  to  the  same
taxable  year which are asserted at or before the hearing under rules of
the director of finance.
(3) Opportunity to respond.--A taxpayer shall be  given  a  reasonable
opportunity  to  respond  to  any  matters  asserted  by the director of
finance under this subdivision.
(4) Restriction on further notices  of  deficiency.--If  the  taxpayer
files  a  petition  with  the director of finance under this section, no
notice  of  deficiency  under  section  one  hundred   twenty-nine   may
thereafter  be  issued  by  the director of finance for the same taxable
year, except in case of fraud or with respect to a change or  correction
in  federal  taxable  income  required  to be reported under section one
hundred twenty-seven or with respect to a state change or correction  of
sales  and  compensating use tax liability required to be reported under
section one hundred twenty-seven-A.
(e) Burden of proof.--In any case before the director of finance under
this title, the burden of proof shall be upon the petitioner except  for
the  following issues, as to which the burden of proof shall be upon the
director of finance:
(1) whether the petitioner has been guilty of  fraud  with  intent  to
evade tax;
(2)  whether the petitioner is liable as the transferee of property of
a taxpayer, but not to show that the taxpayer was liable  for  the  tax;
and
(3)  whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice  of  deficiency
was mailed and a petition under this section filed, unless such increase
in deficiency is the result of a change or correction of federal taxable
income  required  to be reported under section one hundred twenty-seven,
and of which change or correction the director of finance had no  notice
at  the  time he mailed the notice of deficiency or unless such increase
in deficiency is the result of a  change  or  correction  of  sales  and
compensating use tax liability required to be reported under section one
hundred   twenty-seven-A,   and   of  which  change  or  correction  the
commissioner of finance had no notice at the time he mailed  the  notice
of deficiency.
(f) Evidence of related federal or state determination.--Evidence of a
federal  or  state  determination  relating  to  issues raised in a case
before the director of finance under this section shall  be  admissible,
under rules established by the director of finance.
(g)  Jurisdiction  over  other  years.--The  director of finance shall
consider such facts with relation to the taxes for other years as may be
necessary correctly to determine the tax for the taxable year, but in so
doing shall have no jurisdiction to determine whether or not the tax for
any other year has been overpaid or underpaid.
§ 138. Review of director's decision. (a) General.--A decision of  the
director  of finance shall be subject to judicial review at the instance
of any taxpayer affected thereby in the manner provided by law  for  the
review  of  a final decision or action of administrative agencies of the
city. An application by a taxpayer for such review must be  made  within

four  months  after  notice  of  the  decision  is  sent by certified or
registered mail to the taxpayer.
(b)  Judicial  review  exclusive  remedy of taxpayer.--The review of a
decision of the director of finance provided by this  section  shall  be
the  exclusive  remedy  available  to  any  taxpayer  for  the  judicial
determination of the liability of the taxpayer for the taxes imposed  by
this title.
(c)  Assessment  pending  review;  review  bond.--Irrespective  of any
restrictions on the  assessment  and  collection  of  deficiencies,  the
director  of finance may assess a deficiency after the expiration of the
period specified in subdivision (a), notwithstanding that an application
for judicial review in respect of such deficiency has been duly made  by
the taxpayer, unless the taxpayer, at or before the time his application
for  review  is  made,  has  paid the deficiency, has deposited with the
director of finance the amount of the deficiency, or has filed with  the
director  of  finance  a  bond  (which  may  be  a  jeopardy  bond under
subdivision (h) of section one hundred forty-two) in the amount  of  the
portion  of  the  deficiency  (including  interest and other amounts) in
respect of which the application for review is made and  all  costs  and
charges  which  may  accrue  against  him  in  the  prosecution  of  the
proceeding, including costs of all appeals, and with surety approved  by
a  justice  of  the  supreme court of the state of New York, conditioned
upon the  payment  of  the  deficiency  (including  interest  and  other
amounts)  as  finally  determined  and  such  costs and charges. If as a
result of a waiver of the restrictions on the assessment and  collection
of  a  deficiency  any  part of the amount determined by the director of
finance is paid after the filing of the review bond, such bond shall, at
the request of the taxpayer, be proportionately reduced.
(d) Credit, refund or abatement after  review.--If  the  amount  of  a
deficiency  determined by the director of finance is disallowed in whole
or in part by the court of review, the amount  so  disallowed  shall  be
credited  or  refunded  to  the  taxpayer,  without  the making of claim
therefor, or, if payment has not been made, shall be abated.
(e) Date of  finality  of  director's  decision.--A  decision  of  the
director of finance shall become final upon the expiration of the period
specified in subdivision (a) for making an application for review, if no
such  application  has  been  duly  made  within  such  time, or if such
application has been duly made, upon expiration  of  the  time  for  all
further  judicial  review,  or  upon  the  rendering  by the director of
finance of a decision in accordance with the mandate  of  the  court  on
review.  Notwithstanding  the  foregoing,  for  the purpose of making an
application for review, the decision of the director of finance shall be
deemed final on the date the notice of decision is sent by certified  or
registered mail to the taxpayer.
§  139.  Mailing  rules;  holidays. (a) Timely mailing.--If any claim,
statement, notice, petition, or other document (including to the  extent
authorized  by  the  director  of  finance, a return or a declaration of
estimated tax) required to be filed within a prescribed period or on  or
before  a prescribed date under authority of any provision of this title
is, after such period or such date, delivered by the United States  mail
to the director of finance, bureau, office, officer or person with which
or  with  whom  such  document  is required to be filed, the date of the
United States postmark stamped on the envelope shall be deemed to be the
date of delivery.  This subdivision shall apply  only  if  the  postmark
date  falls  within the prescribed period or on or before the prescribed
date for the filing of such  document,  determine  with  regard  to  any
extension  granted  for  such  filing,  and  only  if  such document was
deposited in the  mail,  postage  prepaid,  properly  addressed  to  the

director  of  finance,  bureau,  office, officer or person with which or
with whom the document is required to be filed. If any document is  sent
by United States registered mail, such registration shall be prima facie
evidence  that  such  document was delivered to the director of finance,
bureau, office, officer or person to which or to whom addressed. To  the
extent  that  the  director  of  finance  shall prescribe by regulation,
certified mail may be  used  in  lieu  of  registered  mail  under  this
section.  This subdivision shall apply in the case of postmarks not made
by  the  United States Post Office only if and to the extent provided by
regulations of the director of finance.
(b) Last known address.--For purposes of this title, a taxpayer's last
known address shall be the address given in the  last  return  filed  by
him, unless subsequently to the filing of such return the taxpayer shall
have notified the director of finance of a change of address.
(c)  Last  day a Saturday, Sunday or legal holiday.--When the last day
prescribed under authority of this title  (including  any  extension  of
time)  for  performing  any  act  falls  on Saturday, Sunday, or a legal
holiday in the state of New York, the performance of such act  shall  be
considered timely if it is performed on the next succeeding day which is
not a Saturday, Sunday or a legal holiday.
§  140.  Collection,  levy and liens.  (a) Collection procedures.--The
taxes imposed by this title  shall  be  collected  by  the  director  of
finance, and he may establish the mode or time for the collection of any
amount  due it under this title if not otherwise specified. The director
of finance shall, upon request, give a receipt  for  any  sum  collected
under  this  title. The director of finance may authorize banks or trust
companies which are depositories or financial  agents  of  the  city  to
receive  and give a receipt for any tax imposed under this title in such
manner, at such times, and under such  conditions  as  the  director  of
finance  may  prescribe; and the director of finance shall prescribe the
manner, times and conditions under which the receipt of such tax by such
banks and trust companies is to be treated as payment of such tax to the
director of finance.
(b) Notice and demand for tax.--The director of finance shall as  soon
as  practicable give notice to each person liable for any amount of tax,
addition to tax, penalty  or  interest,  which  has  been  assessed  but
remains  unpaid,  stating the amount and demanding payment thereof. Such
notice shall be left at the dwelling or usual place of business of  such
person  or  shall  be  sent by mail to such person's last known address.
Except where the director of finance determines that collection would be
jeopardized by delay, if any tax is assessed  prior  to  the  last  date
(including  any  date fixed by extension) prescribed for payment of such
tax, payment of such tax shall not be demanded until after such date.
(c) Issuance of warrant after notice and demand.--If any person liable
under this title for the payment of any tax, addition to tax, penalty or
interest neglects or refuses to pay the same within the ten  days  after
notice  and  demand  therefor  is given to such person under subdivision
(b), the director of finance may within six years after the date of such
assessment issue a warrant under  his  official  seal  directed  to  the
sheriff of any county of the state, or to any officer or employee of the
department  of  finance,  commanding  him  to  levy  upon  and sell such
person's real and personal  property  for  the  payment  of  the  amount
assessed,  with  the  cost  of executing the warrant, and to return such
warrant to the director of finance and pay to him the money collected by
virtue thereof within sixty days after the receipt of  the  warrant.  If
the  director  of  finance finds that the collection of the tax or other
amount is in jeopardy, notice and demand for immediate payment  of  such
tax  may  be made by the director of finance and upon failure or refusal

to pay such tax or other amount the director  of  finance  may  issue  a
warrant   without   regard  to  the  ten-day  period  provided  in  this
subdivision.
(d)  Copy  of warrant to be filed and lien to be created.--Any sheriff
or officer or employee who receives  a  warrant  under  subdivision  (c)
shall  within  five  days  thereafter  file a copy with the clerk of the
appropriate county. The clerk shall  thereupon  enter  in  the  judgment
docket,  in  the  column  for judgment debtors, the name of the taxpayer
mentioned in the warrant, and in appropriate columns the  tax  or  other
amounts  for  which the warrant is issued and the date when such copy is
filed; and such amount shall thereupon be a binding lien upon the  real,
personal and other property of the taxpayer.
(e) Judgment.--When a warrant has been filed with the county clerk the
director  of  finance  shall,  on  behalf of the city, be deemed to have
obtained judgment against the taxpayer for the tax or other amounts.
(f) Execution.--The sheriff or officer  or  employee  shall  thereupon
proceed  upon the judgment in all respects, with like effect, and in the
same manner prescribed by law in respect to  executions  issued  against
property  upon  judgments  of  a court of record, and a sheriff shall be
entitled to the same fees for his services in executing the warrant,  to
be  collected  in  the  same  manner.  An  officer  or  employee  of the
department of finance may proceed in any  county  or  counties  of  this
state  and  shall have all the powers of execution conferred by law upon
sheriffs, but shall be entitled to no fee or compensation in  excess  of
actual expenses paid in connection with the execution of the warrant.
(g)  Taxpayer not a resident of this state.--Where a notice and demand
under subdivision (b) shall have been given to a  taxpayer  who  is  not
then a resident of this state, and it appears to the director of finance
that  it  is  not  practicable  to  find  in  this state property of the
taxpayer sufficient to pay the entire balance of  tax  or  other  amount
owing  by  such  taxpayer  who is not then a resident of this state, the
director of finance may, in accordance with  subdivision  (c),  issue  a
warrant directed to an officer or employee of the department of finance,
a  copy of which warrant shall be mailed by certified or registered mail
to the taxpayer at his last known address,  subject  to  the  rules  for
mailing  provided in subdivision (a) of section one hundred twenty-nine.
Such warrant shall command the officer or employee  to  proceed  in  New
York  county,  and  he  shall,  within  five  days  after receipt of the
warrant, file the warrant and obtain a judgment in accordance with  this
section. Thereupon the director of finance may authorize the institution
of  any  action  or proceeding to collect or enforce the judgment in any
place and by any procedure that a civil judgment of the supreme court of
the state of New York could be collected or enforced.  The  director  of
finance  may also, in his discretion, designate agents or retain counsel
for the purpose of collecting, outside the state of New York, any unpaid
taxes, additions to tax, penalties or interest which have been  assessed
under  this title against taxpayers who are not residents of this state,
may fix the compensation of such agents and counsel to be  paid  out  of
money  appropriated or otherwise lawfully available for payment thereof,
and may require of  them  bonds  or  other  security  for  the  faithful
performance  of  their  duties,  in  such form and in such amount as the
director of finance shall deem proper and sufficient.
(h) Action by city for recovery of taxes.--Action may  be  brought  by
the  corporation  counsel  at the instance of the director of finance as
agent and trustee for the city to  recover  the  amount  of  any  unpaid
taxes,  additions to tax, penalties or interest which have been assessed
under this title within six years  prior  to  the  date  the  action  is
commenced.
(i)  Release  of  lien.--The director of finance, if he finds that the
interests of the city will not thereby be  jeopardized,  and  upon  such
conditions  as he may require, may release any property from the lien of
any warrant for unpaid taxes, additions to tax, penalties  and  interest
filed  pursuant to this section, and such release may be recorded in the
office of any recording officer in which such warrant has been filed.
§ 141. Transferees. (a) General.--The liability, at law or in  equity,
of a transferee of property of a taxpayer for any tax, additions to tax,
penalty  or interest due the director of finance under this title, shall
be assessed, paid, and collected in the same manner and subject  to  the
same  provisions  and limitations as in the case of the tax to which the
liability relates, except that the period of limitations for  assessment
against the transferee shall be extended by one year for each successive
transfer,  in  order,  from  the  original  taxpayer  to  the transferee
involved, but not by more than three years in the  aggregate.  The  term
"transferee" includes donee, heir, legatee, devisee and distributee.
(b)  Exceptions.--(1)  If  before  the  expiration  of  the  period of
limitations for assessment of liability of the transferee, a  claim  has
been  filed by the director of finance in any court against the original
taxpayer or the last preceding transferee based upon  the  liability  of
the  original  taxpayer, then the period of limitation for assessment of
liability of the transferee shall in no event expire prior to  one  year
after  such  claim  has  been  finally  allowed, disallowed or otherwise
disposed of.
(2) If, before the expiration of the time  prescribed  in  subdivision
(a)  or  the immediately preceding paragraph of this subdivision for the
assessment of the liability, the director of finance and the  transferee
have  both  consented  in writing to its assessment after such time, the
liability may be assessed at any time prior to  the  expiration  of  the
period  agreed  upon.  The  period  so  agreed  upon  may be extended by
subsequent agreements in writing  made  before  the  expiration  of  the
period previously agreed upon. For the purpose of determining the period
of  limitation  on credit or refund to the transferee of overpayments of
tax made  by  such  transferee  or  overpayments  of  tax  made  by  the
transferor  as  to which the transferee is legally entitled to credit or
refund, such agreement and any extension  thereof  shall  be  deemed  an
agreement  and  extension  thereof  referred  to  in  subdivision (b) of
section one hundred thirty-five. If the agreement is executed after  the
expiration  of  the  period  of  limitation  for  assessment against the
original taxpayer, then in applying the  limitations  under  subdivision
(b)  of  section  one hundred thirty-five on the amount of the credit or
refund, the periods specified in subdivision (a) of section one  hundred
thirty-five  shall  be  increased  by  the  period from the date of such
expiration to the date of the agreement.
(c) Deceased transferor.--If any person is  deceased,  the  period  of
limitation  for assessment against him shall be the period that would be
in effect if he had lived.
(d) Evidence.--Notwithstanding the provisions of  subdivision  (e)  of
section  one  hundred  forty-five  the director of finance shall use his
powers to make available to the transferee evidence necessary to  enable
the  transferee  to determine the liability of the original taxpayer and
of any preceding transferees, but without undue hardship to the original
taxpayer or preceding transferee. See subdivision  (e)  of  section  one
hundred thirty-seven for rule as to burden of proof.
§ 142. Jeopardy assessment. (a) Authority for making.--If the director
of  finance  believes  that the assessment or collection of a deficiency
will be jeopardized by delay, he shall, notwithstanding  the  provisions
of  section  one  hundred  twenty-nine  and  one hundred forty-four, and

immediately  assess  such  deficiency  (together  with   all   interest,
penalties  and  additions  to  tax  provided for by law), and notice and
demand shall be made by the director of finance for the payment thereof.
(b)  Notice  of deficiency.--If the jeopardy assessment is made before
any notice in respect of  the  tax  to  which  the  jeopardy  assessment
relates  has been mailed under section one hundred twenty-nine, then the
director of finance shall mail a notice under such section within  sixty
days after the making of the assessment.
(c)  Amount  assessable  before  decision of director of finance.--The
jeopardy assessment may be made in respect of a  deficiency  greater  or
less  than that of which notice is mailed to the taxpayer and whether or
not the taxpayer has heretofore filed a petition with  the  director  of
finance.  The  director of finance may, at any time before rendering his
decision, abate such assessment, or any unpaid portion thereof,  to  the
extent  that  he  believes the assessment to be excessive in amount. The
director of finance may in his decision redetermine the entire amount of
the deficiency  and  of  all  amounts  assessed  at  the  same  time  in
connection therewith.
(d)  Amount  assessable after decision of director of finance.--If the
jeopardy assessment is made  after  the  decision  of  the  director  of
finance  is rendered, such assessment may be made only in respect of the
deficiency determined by the director of finance in his decision.
(e) Expiration of right to assess.--A jeopardy assessment may  not  be
made  after  the decision of the director of finance has become final or
after the taxpayer has made an application for review of the decision of
the director of finance.
(f) Collection of unpaid amounts.--When a petition has been filed with
the director of finance and when  the  amount  which  should  have  been
assessed  has  been  determined by a decision of the director of finance
which has become final, then any unpaid portion, the collection of which
has been stayed by bond, shall be collected as  part  of  the  tax  upon
notice  and  demand  from  the  director  of  finance, and any remaining
portion of the  assessment  shall  be  abated.  If  the  amount  already
collected  exceeds the amount determined as the amount which should have
been assessed, such excess shall be credited or refunded to the taxpayer
as provided in section one hundred thirty-four  without  the  filing  of
claim therefor. If the amount determined as the amount which should have
been  assessed  is  greater  than the amount actually assessed, then the
difference shall be assessed and shall be collected as part of  the  tax
upon notice and demand from the director of finance.
(g) Abatement if jeopardy does not exist.--The director of finance may
abate  the jeopardy assessment if he finds that jeopardy does not exist.
Such abatement may not be made after  a  decision  of  the  director  of
finance  in  respect  of  the  deficiency  has  been  rendered or, if no
petition is filed with the director of finance, after the expiration  of
the  period  for  filing  such petition. The period of limitation on the
making of assessments and  levy  or  a  proceeding  for  collection,  in
respect  of  any  deficiency,  shall  be  determined  as if the jeopardy
assessment so abated had not been made, except that the running of  such
period  shall  in any event be suspended for the period from the date of
such jeopardy assessment until the expiration of the tenth day after the
day on which such jeopardy assessment is abated.
(h) Bond to stay collection.--The  collection  of  the  whole  or  any
amount  of  any  jeopardy  assessment  may  be stayed by filing with the
director of finance, within such time as may be fixed by  regulation,  a
bond  in  an amount equal to the amount as to which the stay is desired,
conditioned upon the payment  of  the  amount  (together  with  interest
thereon) the collection of which is stayed at the time at which, but for

the  making  of  the jeopardy assessment, such amount would be due. Upon
the filing of the bond the collection of so much of the amount  assessed
as  is  covered by the bond shall be stayed. The taxpayer shall have the
right to waive such stay at any time in respect of the whole or any part
of the amount covered by the bond, and if as a result of such waiver any
part  of  the amount covered by the bond is paid, then the bond shall at
the request of the taxpayer, be proportionately reduced. If any  portion
of the jeopardy assessment is abated, or if a notice of deficiency under
section  one  hundred  twenty-nine is mailed to the taxpayer in a lesser
amount,  the  bond  shall,  at  the  request   of   the   taxpayer,   be
proportionately reduced.
(i)  Petition to director of finance.--If the bond is given before the
taxpayer has filed his petition under section one hundred  thirty-seven,
the  bond  shall  contain  a further condition that if a petition is not
filed within the period provided in such section, then the  amount,  the
collection  of  which  is stayed by the bond, will be paid on notice and
demand at any time after the expiration of such  period,  together  with
interest  thereon from the date of the jeopardy notice and demand to the
date of notice and demand under this  subdivision.  The  bond  shall  be
conditioned  upon  the payment of so much of such assessment (collection
of which is stayed by the bond) as is not abated by a  decision  of  the
director  of  finance which has become final. If the director of finance
determines that the amount assessed is greater  than  the  amount  which
should  have  been  assessed, then the bond shall, at the request of the
taxpayer, be proportionately reduced when the decision of  the  director
of finance is rendered.
(j)  Stay  of  sale  of  seized  property  pending director of finance
decision.--Where a jeopardy assessment is made, the property seized  for
the collection of the tax shall not be sold--
(1)  if  subdivision  (b)  is  applicable, pior to the issuance of the
notice of deficiency and the expiration of the time provided in  section
one  hundred  thirty-seven  for  filing  a petition with the director of
finance, and
(2) if a petition is filed  with  the  director  of  finance  (whether
before  or  after  the making of such jeopardy assessment), prior to the
expiration of the period during which the assessment of  the  deficiency
would be prohibited if subdivision (a) were not applicable.
Such  property may be sold if the taxpayer consents to the sale, or if
the director of finance determines that the expenses of conservation and
maintenance will greatly reduce the net proceeds, or if the property  is
perishable.
(k)  Interest.--For  the  purpose  of  subdivision  (a) of section one
hundred thirty-two, the  last  date  prescribed  for  payment  shall  be
determined  without  regard  to any notice and demand for payment issued
under this section prior to the last date otherwise prescribed for  such
payment.
(l)  Early  termination  of  taxable year.--If the director of finance
finds that a taxpayer designs quickly to depart from this  state  or  to
remove  his  property  therefrom,  or to conceal himself or his property
therein, or to do any other act tending to prejudice or to render wholly
or partly ineffectual proceedings to collect  the  income  tax  for  the
current  or  the  preceeding  taxable  year  unless  such proceedings be
brought without delay, the director of finance shall declare the taxable
period for such taxpayer immediately terminated, and shall cause  notice
of  such finding and declaration to be given the taxpayer, together with
a demand for immediate payment of the tax  for  the  taxable  period  so
declared terminated and of the tax for the preceeding taxable year or so
much of such tax as is unpaid, whether or not the time otherwise allowed

by  law for filing return and paying the tax has expired; and such taxes
shall thereupon become immediately due and payable.  In  any  proceeding
brought  to  enforce  payment of taxes made due and payable by virtue of
the  provisions  of  this  subdivision,  the  finding of the director of
finance made as herein  provided,  whether  made  after  notice  to  the
taxpayer  or  not,  shall  be  for  all purposes presumptive evidence of
jeopardy.
(m) Reopening of taxable period.--Notwithstanding the  termination  of
the  taxable  period  of  the  taxpayer  by  the  director of finance as
provided in subdivision (l), the director of  finance  may  reopen  such
taxable  period  each  time  the  taxpayer  is  found by the director of
finance to have received income, within the current taxable year,  since
the  termination  of  such period. A taxable period so terminated by the
director of finance may be reopened by the taxpayer if he files with the
director of finance a true and accurate return  of  taxable  income  and
credits  allowed under this title for such taxable period, together with
such other information as the director of  finance  may  by  regulations
prescribe.
(n) Furnishing of bond where taxable year is closed by the director of
finance.--Payment  of  taxes  shall  not  be enforced by any proceedings
under the provisions of subdivision (1) prior to the expiration  of  the
time  otherwise allowed for paying such taxes if the taxpayer furnishes,
under regulations prescribed by the  director  of  finance,  a  bond  to
insure  the  timely  making  of returns with respect to, and payment of,
such taxes or any taxes under this title for prior years.
§ 143. Criminal penalties. (a) Attempt to evade  tax.--Any  individual
or  partnership  or  member  or  employee  of any partnership, who, with
intent to evade any tax or any requirement of this title or  any  lawful
requirement of the director of finance thereunder, shall fail to pay the
tax,  or  to  make, render, sign or certify any return or declaration of
estimated income, or to supply any information within the time  required
by  or  under  the  provisions  of this title, or who, with like intent,
shall make, render, sign or certify  any  false  or  fraudulent  return,
declaration  or  statement,  or  shall  supply  any  false or fraudulent
information after the service of a notice by  the  director  of  finance
thereunder, shall be guilty of a misdemeanor and shall, upon conviction,
be  fined  not  to  exceed five thousand dollars or be imprisoned not to
exceed one year, or both, at the discretion of the court.
(b)  Limitations.--Notwithstanding  the  provisions  of  section   one
hundred  forty-two  of  the  state  code of criminal procedure or of any
other law of this state,  a  prosecution  for  any  offense  under  this
section  may  be  commenced at any time not later than three years after
the commission of such offense provided that, if  such  offense  is  the
failure to do an act required by or under any provision of this title to
be  done  before  a  certain date, a prosecution for such offense may be
commenced not later than three years after such date.
(c) Two or more charges.--In the prosecution of  offenses  under  this
section,  if  there  are  two  or  more  charges  against  any person or
corporation, involving a violation or violations  of  any  provision  or
provisions  of  this  title,  whether  for the same or different taxable
years, instead  of  returning  several  indictments  or  filing  several
informations,  all  of  such  charges may be joined in one indictment or
information, in separate counts, and if  two  or  more  indictments  are
found or two or more informations are filed, the court may order them to
be consolidated. If a person or corporation shall be convicted of two or
more  offenses  constituting  different  crimes  set  forth in different
counts of one indictment or information, or in separate  indictments  or
informations consolidated as hereinbefore provided, the court may impose

a  separate  sentence  for each offense, and if imprisonment is imposed,
the court may order any of such sentences to be served  concurrently  or
consecutively.
(d)  Miscellaneous  rules.--Any  prosecution under this section may be
conducted in any county where the person or  corporation  to  whose  tax
liability the proceeding relates resides, or has a place of business, or
from  which  such  person  or corporation received any income, or in any
county in which any such crime is committed. The corporation counsel  of
the  city  imposing  the tax shall have concurrent jurisdiction with any
district attorney in the prosecution of any offenses under this section.
If the provisions of this section conflict with those contained  in  any
other  law,  this section shall control. The certificate of the director
of finance to the effect that a tax has not been paid, that a return  or
declaration of estimated tax has not been filed, or that information has
not been supplied, as required by or under the provisions of this title,
shall be prima facie evidence that such tax has not been paid, that such
return  or  declaration has not been filed, or that such information has
not been supplied. All fines levied under this section shall be paid  to
the  director  of  finance  and deposited in the same manner as revenues
collected or received under this title.
§ 144. Armed forces relief provisions. (a) Time to be disregarded.--In
the case of an individual serving in the  armed  forces  of  the  United
States or serving in support of such armed forces, in an area designated
by  the  president  of the United States by executive order as a "combat
zone" at any time during the  period  designated  by  the  president  by
executive  order  as the period of combatant activities in such zone, or
hospitalized outside the state as a  result  of  injury  received  while
serving  in such an area during such time, the period of service in such
area, plus the period of continuous hospitalization  outside  the  state
attributable  to  such  injury,  and  the  next  one hundred eighty days
thereafter, shall be disregarded in determining, under  this  title,  in
respect  of  the  tax  liability  (including  any  interest, penalty, or
addition to the tax) of such individual--
(1) Whether any of the following acts was performed  within  the  time
prescribed therefor:
(A) filing any return of tax;
(B)  payment  of  any  income tax or any installment thereof or of any
other liability to the director of finance, in respect thereof;
(C) filing a petition with the  director  of  finance  for  credit  or
refund or for redetermination of a deficiency, or application for review
of a decision rendered by the director of finance;
(D) allowance of a credit or refund of tax;
(E) filing a claim for credit or refund of tax;
(F) assessment of tax;
(G)  giving or making any notice or demand for the payment of any tax,
or with respect to any liability to the director of finance  in  respect
of tax;
(H)  collection,  by  the director of finance, by levy or otherwise of
the amount of any liability in respect of tax;
(I) bringing suit by the city, or  any  officer,  on  its  behalf,  in
respect of any liability in respect of tax; and
(J)  any other act required or permitted under this title or specified
in regulations prescribed under this section by the director of finance.
(2) The amount of any credit or refund (including interest).
(b) Action taken  before  ascertainment  of  right  to  benefits.--The
assessment  or  collection  of  the  tax imposed by this title or of any
liability to the director of finance in respect  of  such  tax,  or  any
action  or  proceeding  by  or  on  behalf of the director of finance in

connection therewith, may  be  made,  taken,  begun,  or  prosecuted  in
accordance  with  law,  without  regard to the provisions of subdivision
(a), unless prior to such assessment, collection, action, or  proceeding
it  is  ascertained that the person concerned is entitled to the benefit
of subdivision (a).
(c) Members of armed forces dying  in  action.--In  the  case  of  any
person  who dies during an induction period while in active service as a
member of the armed forces of the United States, if such death  occurred
while  serving  in a combat zone during a period of combatant activities
in such zone, as described in subdivision (a), or as a result of wounds,
disease or injury incurred while so serving, the  tax  imposed  by  this
title  shall  not  apply with respect to the taxable year in which falls
the date of his death, or with respect to any prior taxable year  ending
on  or after the first day he so served in a combat zone, and no returns
shall be required in behalf of such person or his estate for such  year;
and the tax for any such taxable year which is unpaid at the date of his
death, including interest, additions to tax and penalties, if any, shall
not  be assessed and if assessed, the assessment shall be abated and, if
collected, shall be refunded to the legal representative of  his  estate
if   one  has  been  appointed  and  has  qualified,  or,  if  no  legal
representative has been appointed or has qualified, to his widow.
§ 145. General  powers  of  director  of  finance.  (a)  General.--The
director of finance shall administer and enforce the tax imposed by this
title  and  he  is authorized to make such rules and regulations, and to
require such facts and information  to  be  reported,  as  he  may  deem
necessary  to  enforce the provisions of this title; and he may delegate
his powers and functions under all parts of this title  to  one  of  his
deputies or to any employee or employees of his department.
(b)  Examination  of books and witnesses.--The director of finance for
the purpose of ascertaining the correctness of any return,  or  for  the
purpose  of  making  an  estimate of taxable income of any person, shall
have power to examine or to cause to have  examined,  by  any  agent  or
representative  designated  by  him for that purpose, any books, papers,
records or memoranda bearing upon the matters required to be included in
the return, and may require the attendance of the person  rendering  the
return  or  any officer or employee of such person, or the attendance of
any other  person  having  knowledge  in  the  premises,  and  may  take
testimony  and require proof material for his information, with power to
administer oaths to such person or persons.
(c) Abatement authority.--The director of finance, of his own  motion,
may  abate  any  small unpaid balance of an assessment of tax under this
part, or any liability in respect thereof, if the  director  of  finance
determines under uniform rules prescribed by him that the administration
and collection costs involved would not warrant collection of the amount
due.  He  may  also  abate, of his own motion, the unpaid portion of the
assessment of any tax or any liability  in  respect  thereof,  which  is
excessive  in  amount, or is assessed after the expiration of the period
of  limitation  properly  applicable  thereto,  or  is  erroneously   or
illegally assessed.  No claim for abatement under this subdivision shall
be filed by a taxpayer.
(d)  Special  refund authority.--Where no questions of fact or law are
involved and it appears from the records of the director of finance that
any moneys  have  been  erroneously  or  illegally  collected  from  any
taxpayer or other person, or paid by such taxpayer or other person under
a  mistake  of  facts,  pursuant  to  the  provisions of this title, the
director of finance at  any  time,  without  regard  to  any  period  of
limitations,  shall  have the power, upon making a record of his reasons

therefor in writing, to cause such moneys so paid and being  erroneously
and illegally held to be refunded.
(e)   Cooperation  with  the  United  States,  this  state  and  other
states.--Notwithstanding  the  provisions   of   section   one   hundred
forty-six,  the  director  of  finance  may  permit the secretary of the
treasury of the United States or his delegates, or the proper officer of
this or any other state imposing an  income  tax  upon  the  incomes  of
individuals,  or  the  authorized representative of any such officer, to
inspect any return filed under this title or may furnish to such officer
or his authorized representative an  abstract  of  any  such  return  or
supply  him  with  information  concerning an item contained in any such
return, or disclosed by any investigation of tax  liability  under  this
title,  but  such  permission  shall  be  granted  or  such  information
furnished to such officer or his representative only if the laws of  the
United  States or of such state, as the case may be, grant substantially
similar privileges to the director of finance and such information is to
be used for tax purposes only; and  provided  further  the  director  of
finance  may  furnish  to  the  secretary  of the treasury of the United
States or his delegates or to the tax commission of  the  state  of  New
York  or its delegates such returns filed under this title and other tax
information, as he may consider proper, for  use  in  court  actions  or
proceedings  under the internal revenue code or the tax law of the state
of New York, whether civil or criminal, where a written request therefor
has been made to the  director  of  finance  by  the  secretary  of  the
treasury  or  by such tax commission or by their delegates, provided the
laws of the United States or the laws of the state  of  New  York  grant
substantially  similar  powers  to  the secretary of the treasury or his
delegates or to such tax commission or its delegates. Where the director
of finance has so authorized use of returns or other information in such
actions or proceedings, officers and  employees  of  the  department  of
finance  may  testify  in such actions or proceedings in respect to such
returns or other information.
(f) Authority to set interest rates.--The commissioner of finance,  by
regulation, may set the rate of interest to be paid pursuant to sections
one  hundred  thirty-two,  one  hundred  thirty-three  and  one  hundred
thirty-six. Such rate shall be the same for each such section and  shall
be  not  less  than  six  percent  per  annum  nor more than the rate of
interest prescribed by the banking board pursuant to section  fourteen-a
of  the banking law, but if the commissioner of finance has not set such
rate, interest at six percent per annum shall apply.   Any rate  set  by
the  commissioner  of  finance  shall go into effect not less than sixty
days after the regulation is promulgated, and shall apply only to  taxes
due  or  paid  for  taxable years commencing after the effective date of
such regulation.
(g) In computing the amount of any interest required to be paid  under
this  title  by  the  commissioner of finance or by the taxpayer, or any
other amount determined by reference to such amount  of  interest,  such
interest  and  such  amount  shall  be  compounded  daily. The preceding
sentence shall not apply for purposes of computing  the  amount  of  any
addition  to  tax for failure to pay estimated tax under subdivision (c)
of section one hundred thirty-three.
(h) Fractional parts of a dollar. -- The commissioner of  finance  may
provide  by  regulation  (1)  that  in  any  determination,  assessment,
collection, refund or credit under this title, a fractional  part  of  a
dollar  may  be disregarded unless it amounts to fifty cents or more, in
which case it shall be increased to one dollar, and (2) that any  person
making  a  return,  report or other statement required to be filed under
this title, may elect with respect to any amount required  to  be  shown

thereon,  if  such amount is other than a whole dollar amount, either to
disregard the fractional part of a dollar or to disregard the fractional
part of a dollar unless it amounts to fifty cents or more, in which case
the  amount  (determined  without  regard  to  the  fractional part of a
dollar) shall be increased by one dollar; provided, however,  that  such
election  shall  not  be  applicable  to  items which must be taken into
account in making the computations necessary  to  determine  the  amount
required  to  be shown on any such return, report or other statement but
shall be applicable only to  the  final  amount  required  to  be  shown
thereon.
§  146.  Secrecy  requirement  and  penalties for violation. Except in
accordance with proper judicial order or as otherwise provided  by  law,
it  shall  be  unlawful  for  the director of finance, the department of
finance of the city, any  officer  or  employee  of  the  department  of
finance  of  the city, any person engaged or retained by such department
on an independent contract basis, or any person who,  pursuant  to  this
section, is permitted to inspect any report or return or to whom a copy,
an  abstract  or  a  portion of any report or return is furnished, or to
whom any information contained in any report or return is furnished,  to
divulge  or  make  known  in  any  manner  the  amount  of income or any
particulars set forth or disclosed in  any  report  or  return  required
under  this title. The officers charged with the custody of such reports
and returns shall not be required to produce any of them or evidence  of
anything  contained  in  them  in any action or proceeding in any court,
except on behalf of the city  in  an  action  or  proceeding  under  the
provisions  of this title or in any other action or proceeding involving
the collection of a tax due under this title to  which  the  city  is  a
party  or  a  claimant,  or  on  behalf  of  any  party to any action or
proceeding under the provisions of this title when the reports,  returns
or  facts  shown  thereby  are  directly  involved  in  such  action  or
proceeding, in any of which events the court may require the  production
of,  and  may  admit in evidence, so much of said reports, returns or of
the facts shown thereby, as are pertinent to the  action  or  proceeding
and  no  more. The director of finance may, nevertheless, publish a copy
or a summary of any determination or decision rendered after the hearing
required under section one hundred thirty-seven of this title.   Nothing
herein  shall be construed to prohibit the delivery to a taxpayer or his
duly authorized representative of a certified  copy  of  any  return  or
report  filed  in connection with his tax or to prohibit the publication
of  statistics  so  classified  as  to  prevent  the  identification  of
particular  reports  or returns and the items thereof, or the inspection
by the corporation counsel or other legal representatives of the city of
the report or return of any taxpayer who shall bring action to set aside
or review the tax based thereon, or against whom an action or proceeding
under this title has been recommended by the director of finance or  the
corporation  counsel  or  has  been instituted, or the inspection of the
reports or returns required under this  title  by  the  duly  designated
officers  or  employees  of the city for purposes of an audit under this
title or an audit authorized by the act enacting this title. Reports and
returns shall be preserved for three  years  and  thereafter  until  the
director  of  finance  orders them to be destroyed. Any violation of the
provisions of this subdivision shall be punished by a fine not exceeding
one thousand dollars or by imprisonment not exceeding one year, or both,
at the discretion of the court, and if the offender  be  an  officer  or
employee of the city or the state, he shall be dismissed from office and
be incapable of holding any public office in the city or the state for a
period of five years thereafter.
§  147.  Effect  of  invalidity  in  part.  If  any  clause, sentence,
paragraph, subsection, section or  other  part  of  this  title  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 title or the application of such part held invalid, to
any  other  person  or  circumstances,  but  shall  be  confined  in its
operation to the clause, sentence,  paragraph,  subsection,  section  or
other  part  thereof directly involved in such holding, or to the person
and circumstances therein involved.
§ 148. Inconsistencies with other laws. If any provision of this title
is inconsistent with,  in  conflict  with,  or  contrary  to  any  other
provision  of  law, such provision of this title 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.
§ 149. Disposition of  revenues*.  All  revenues  resulting  from  the
imposition of the taxes under this title shall be paid into the treasury
of  the  city and shall be credited to and deposited in the general fund
of the city, but no  part  of  such  revenues  may  be  expended  unless
appropriated in the annual budget of the city.
* Does not conform to section heading in schedule.