2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 2 - Residents › 624 - Computation of Separate Tax on the Ordinary Income Portion of Lump Sum Distributions Received by Resident Individuals, Estates and Trusts.

§  624.  Computation of separate tax on the ordinary income portion of
lump sum distributions received by  resident  individuals,  estates  and
trusts.  (a)  Amount  of  separate  tax. The amount of tax imposed under
section six hundred three for any taxable  year,  with  respect  to  the
ordinary  income  portion  of  a  lump  sum  distribution  received by a
resident individual, estate or trust is an amount equal  to  five  times
the  tax which would be imposed by subsection (c) of section six hundred
one if the recipient of such lump sum distribution  were  an  individual
referred  to  in such subsection and the New York taxable income were an
amount equal to one-fifth of the excess of:
(1) the total taxable amount of the  lump  sum  distribution  for  the
taxable year, over
(2) the minimum distribution allowance.
(b)  Minimum distribution allowance. For purposes of this section, the
minimum  distribution  allowance  shall  be  that  which  is  calculated
according  to  subparagraph  (C)  of  paragraph one of subsection (e) of
section four hundred two of the internal revenue code.
(c) Multiple distributions and distributions of annuity contracts. For
purposes of this section, the rules  concerning  multiple  distributions
and  distributions of annuity contracts as specified by paragraph two of
subsection (e) of section four hundred two of the internal revenue  code
shall be applicable, except that references to "paragraph (1) (A)" shall
be  deemed  to  be references to this section, and except that only lump
sum distributions (or portions thereof)  and  distributions  of  annuity
contracts  subject  to  tax  under  this  article shall be included, and
except that references to the secretary shall be deemed to be references
to the tax commission.
(d) Definitions and special rules. For purposes of this  section,  the
following  provisions  shall  apply,  to  the  extent  applicable to the
taxpayer's federal tax on lump sum distributions:  (1)  the  definitions
and  special  rules  as specified in paragraph four of subsection (e) of
section four hundred two of the  internal  revenue  code;  and  (2)  the
special  rules  relating to (A) individuals who have attained the age of
fifty before January first, nineteen hundred eighty-six and (B)  capital
gains,  as  specified  in  paragraphs  three,  four,  five  and  six  of
subsection (h) of section eleven hundred twenty-two of  the  tax  reform
act  of nineteen hundred eighty-six as enacted by public law 99-514, but
(i) in the event that paragraph three of such subsection is  applicable,
clause (ii) of subparagraph (B) of such paragraph shall be applied using
a  rate  of  five  and  four-tenths  percent, and (ii) in the event that
paragraph five of such subsection is applicable, the  words  "five"  and
"one-fifth" in subsection (a) of this section shall be read as "ten" and
"one-tenth",  respectively,  and subsection (a) of this section shall be
applied by using the rate of tax specified in subsection (f) of  section
six  hundred  two  as  such  subsection  was in effect for taxable years
beginning in nineteen hundred eighty-six.