§ 1340 — Authorization to impose tax

New York § 1340

• Jurisdiction: New York
• Law TAX: Tax
• Art. 30-B: City Earnings Tax On Nonresidents

Text

§ 1340. Authorization to impose tax. (a) In addition to any other\ntaxes, now authorized by law, any city having a population of more than\none hundred ninety thousand but less than two hundred fifteen thousand\ninhabitants, determined in accordance with the 1980 federal census, is\nhereby authorized and empowered to adopt and amend local laws imposing a\ntax on the earnings of nonresidents of such city to be administered in\nthe manner provided for in this article by the commissioner.\n The tax authorized by this article may be imposed only if the city\nimposing the tax herein authorized also imposes a city income tax\nsurcharge on its residents. The rates of such tax shall be the rates\ncontained in section two of the model local law.\n (b) (i) A local law enacted pursuant to the authority of this section\nshall go into effect on the first day of January, nineteen hundred\neighty-four and shall apply to taxable years beginning on or after such\ndate and before two thousand twenty-eight. Provided, however, no such\nlocal law shall be so effective unless such local law is enacted by July\nthirty-first, nineteen hundred eighty-four and unless a certified copy\nof such local law is mailed by registered or certified mail to the\ncommissioner at such commissioner's office in Albany by such date. (ii)\nIf the requirements of the preceding sentence are not met, a local law\nenacted pursuant to the authority of this section shall go into effect\non the first day of the next succeeding January and shall apply to\ntaxable years beginning on or after such date and before two thousand\ntwenty-eight. Provided, however, no such local law shall be so effective\nunless such local law is enacted at least ninety days prior to the date\nit is to become effective and unless a certified copy of such local law\nis mailed by registered or certified mail to the commissioner at such\ncommissioner's office in Albany by such date. However, the commissioner\nmay waive and reduce such ninety day minimum requirements within a\nperiod of not less than thirty days prior to such effective date if such\ncommissioner deems such action to be consistent with such commissioner's\nduties under this article. (iii) Any amendment of such a local law\nenacted pursuant to the authority of the section, which changes the rate\nof the income tax surcharge on residents, shall take effect on the first\nday of January in the year in which such amendment is enacted and shall\napply to taxable years beginning on or after such date, if such\namendment is enacted on or before July thirty-first of the year in which\nit is to take effect and a certified copy of such amendment is mailed by\nregistered or certified mail to the commissioner at the commissioner's\noffice in Albany by such date. (iv) If the requirements of paragraph\n(iii) of this subsection are not met, the amendment of such local law\nshall go into effect on the first day of the next succeeding January and\nshall apply to taxable years beginning on or after such date, provided\nthat no such amendment shall take effect unless it is enacted at least\nninety days prior to the date it is to become effective and a certified\ncopy thereof is mailed by registered or certified mail to the\ncommissioner at the commissioner's office in Albany by such date.\n (c) The terms of such local law shall be substantially the same as the\nfollowing model local law.\n EARNINGS TAX ON NONRESIDENTS\n Model Local Law\nSection 1. Meaning of terms.\n 2. Persons subject to tax.\n 3. Taxable years to which tax imposed by this local law\n applies.\n 4. Allocation to the city.\n 5. Accounting periods and methods.\n 7. Withholding of tax on wages.\n 8. Returns and payment of tax.\n 9. Combined returns and employer's returns.\n 10. Time and place for filing returns and paying tax.\n 11. Signing of returns and other documents.\n 12. Change of residence status during year.\n 13. Extensions of time.\n 14. Requirements concerning returns, notices, records and\n statements.\n 15. Report of change in federal or New York state taxable\n income.\n 16. Effect of invalidity in part; inconsistencies with other\n laws.\n Section 1. Meaning of terms. As used in this local law, the following\nterms shall mean and include:\n (a) City. City shall mean the city imposing the tax.\n (b) Payroll period and employer. Payroll period and employer shall\nmean the same as payroll period and employer as defined in subsections\n(b) and (d) of section thirty-four hundred one of the internal revenue\ncode, and "employee" shall also include all those included as employees\nin subsection (c) of such section of such code.\n * (c) Wages. Wages shall mean wages as defined in subsection (a) of\nsection thirty-four hundred one of the internal revenue code, except\nthat (1) wages shall not include payments for active service as a member\nof the armed forces of the United States and shall not include, in the\ncase of a nonresident individual or partner of a partnership doing an\ninsurance business as a member of the New York insurance exchange\ndescribed in section six thousand two hundred one of the insurance law,\nany item of income, gain, loss or deduction of such business which is\nsuch individual's distributive or pro rata share for federal income tax\npurposes or which such individual is required to take into account\nseparately for federal income tax purposes and (2) wages shall include\n(i) the amount of member or employee contributions to a retirement\nsystem or pension fund picked up by the employer pursuant to subdivision\nf of section five hundred seventeen or subdivision d of section six\nhundred thirteen of the retirement and social security law or section\n13-225.1, 13-327.1, 13-125.1, 13-125.2 or 13-521.1 of the administrative\ncode of the city of New York or subdivision nineteen of section\ntwenty-five hundred seventy-five of the education law, (ii) the amount\ndeducted or deferred from an employee's salary under a flexible benefits\nprogram established pursuant to section twenty-three of the general\nmunicipal law or section one thousand two hundred ten-a of the public\nauthorities law, (iii) the amount by which an employee's salary is\nreduced pursuant to the provisions of subdivision b of section 12-126.1\nand subdivision b of section 12-126.2 of the administrative code of the\ncity of New York, and (iv) the amount of member or employee\ncontributions to a retirement system or pension fund picked up or paid\nby the employer for members of the Manhattan and Bronx surface\ntransportation authority pension plan and treated as employer\ncontributions in determining income tax treatment under section 414(h)\nof the Internal Revenue Code.\n * NB Effective until ch 525/2011 § 5 takes effect\n * (c) Wages. Wages shall mean wages as defined in subsection (a) of\nsection thirty-four hundred one of the internal revenue code, except\nthat (1) wages shall not include payments for active service as a member\nof the armed forces of the United States and shall not include, in the\ncase of a nonresident individual or partner of a partnership doing an\ninsurance business as a member of the New York insurance exchange\ndescribed in section six thousand two hundred one of the insurance law,\nany item of income, gain, loss or deduction of such business which is\nsuch individual's distributive or pro rata share for federal income tax\npurposes or which such individual is required to take into account\nseparately for federal income tax purposes and (2) wages shall include\n(i) the amount of member or employee contributions to a retirement\nsystem or pension fund picked up by the employer pursuant to subdivision\nf of section five hundred seventeen, subdivision d of section six\nhundred thirteen or section twelve hundred four-a of the retirement and\nsocial security law or section 13-225.1, 13-327.1, 13-125.1, 13-125.2 or\n13-521.1 of the administrative code of the city of New York or\nsubdivision nineteen of section twenty-five hundred seventy-five of the\neducation law, (ii) the amount deducted or deferred from an employee's\nsalary under a flexible benefits program established pursuant to section\ntwenty-three of the general municipal law or section one thousand two\nhundred ten-a of the public authorities law, (iii) the amount by which\nan employee's salary is reduced pursuant to the provisions of\nsubdivision b of section 12-126.1 and subdivision b of section 12-126.2\nof the administrative code of the city of New York, and (iv) the amount\nof member or employee contributions to a retirement system or pension\nfund picked up or paid by the employer for members of the Manhattan and\nBronx surface transportation authority pension plan and treated as\nemployer contributions in determining income tax treatment under section\n414(h) of the Internal Revenue Code.\n * NB See ch 525/2011 § 7 for effectiveness\n * (c) Wages. Wages shall mean wages as defined in subsection (a) of\nsection thirty-four hundred one of the internal revenue code, except\nthat (1) wages shall not include payments for active service as a member\nof the armed forces of the United States and shall not include, in the\ncase of a nonresident individual or partner of a partnership doing an\ninsurance business as a member of the New York insurance exchange\ndescribed in section six thousand two hundred one of the insurance law,\nany item of income, gain, loss or deduction of such business which is\nsuch individual's distributive or pro rata share for federal income tax\npurposes or which such individual is required to take into account\nseparately for federal income tax purposes and (2) wages shall include\n(i) the amount of member or employee contributions to a retirement\nsystem or pension fund picked up by the employer pursuant to subdivision\nf of section five hundred seventeen or subdivision d of section six\nhundred thirteen of the retirement and social security law or section\n13-225.1, 13-327.1 or 13-125.1 of the administrative code of the city of\nNew York, and (ii) the amount deducted or deferred from an employee's\nsalary under a flexible benefits program established pursuant to section\ntwenty-three of the general municipal law or section one thousand two\nhundred ten-a of the public authorities law.\n * NB Effective upon expiration of ch 525/2011 § 5\n (d) Net earnings from self-employment. Net earnings from\nself-employment shall mean the same as net earnings from self-employment\nas defined in subsection (a) of section fourteen hundred two of the\ninternal revenue code, except that the deduction for wages and salaries\npaid or incurred for the taxable year which is not allowed pursuant to\nsection two hundred eighty-C of such code shall be allowed, and except\nthat an estate or trust shall be deemed to have net earnings from\nself-employment determined in the same manner as if it were an\nindividual subject to the tax on self-employment income imposed by\nsection fourteen hundred one of the internal revenue code diminished by\n(1) the amount of any deduction allowed by subsection (c) of section six\nhundred forty-two of the internal revenue code and (2) the deductions\nallowed by sections six hundred fifty-one and six hundred sixty-one of\nsuch code to the extent that they represent distributions or payments to\na resident of the city. However, "trade or business" as used in\nsubsection (a) of section fourteen hundred two of such code shall mean\nthe same as trade or business as defined in subsection (c) of section\nfourteen hundred two of such code, except that paragraphs four, five and\nsix of such subsection shall not apply in determining net earnings from\nself-employment taxable under this local law. Provided however, in the\ncase of a nonresident individual or partner of a partnership doing an\ninsurance business described in section six thousand two hundred one of\nthe insurance law, any item of income, gain, loss or deduction of such\nbusiness which is the individual's distributive or pro rata share for\nfederal income tax purposes or which the individual is required to take\ninto account separately for federal income tax purposes shall not be\nconsidered to be "net earnings from self-employment".\n (e) Taxable year. Taxable year shall mean the taxpayer's taxable year\nfor federal income tax purposes.\n (f) Resident individual. A resident individual shall mean an\nindividual:\n (1) who is domiciled in the city, unless (A) the taxpayer maintains no\npermanent place of abode in the city, maintains a permanent place of\nabode elsewhere, and spends in the aggregate not more than thirty days\nof the taxable year in the city, or (B) (i) within any period of five\nhundred forty-eight consecutive days the taxpayer is present in a\nforeign country or countries for at least four hundred fifty days, and\n(ii) during such period of five hundred forty-eight consecutive days the\ntaxpayer, the taxpayer's spouse (unless the spouse is legally separated)\nand the taxpayer's minor children are not present in the city for more\nthan ninety days, and (iii) during any period of less than twelve\nmonths, which would be treated as a separate taxable period based on a\nchange of resident status, and which period is contained within the\nperiod of five hundred forty-eight consecutive days, the taxpayer is\npresent in the city for a number of days which does not exceed an amount\nwhich bears the same ratio to ninety as the number of days contained in\nthat period of less than twelve months bears to five hundred\nforty-eight, or\n (2) who is not domiciled in the city but maintains a permanent place\nof abode in the city and spends in the aggregate more than one hundred\neighty-three days of the taxable year in the city, unless such\nindividual is in active service in the armed forces of the United\nStates.\n (g) Nonresident individual. A nonresident individual shall mean an\nindividual who is not a resident.\n (h) Resident estate or trust. A resident estate or trust shall mean:\n (1) the estate of a decedent who at his death was domiciled in the\ncity,\n (2) a trust, or a portion of a trust, consisting of property\ntransferred by will of a decedent who at his death was domiciled in the\ncity, or\n (3) a trust, or a portion of a trust, consisting of the property of:\n (A) a person domiciled in such city at the time such property was\ntransferred to the trust, if such trust or portion of a trust was then\nirrevocable, or if it was then revocable and has not subsequently become\nirrevocable; or\n (B) a person domiciled in such city at the time such trust or portion\nof a trust became irrevocable, if it was revocable when such property\nwas transferred to the trust but has subsequently become irrevocable.\n For the purposes of the foregoing, a trust or a portion of a trust is\nrevocable if it is subject to a power, exercisable immediately or at any\nfuture time, to revest title in the person whose property constitutes\nsuch trust or portion of a trust and a trust or portion of a trust\nbecomes irrevocable when the possibility that such power may be\nexercised has been terminated.\n (i) Nonresident estate or trust. A nonresident estate or trust shall\nmean an estate or trust which is not a resident.\n (j) The term "partnership" shall include, unless a different meaning\nis clearly required, a subchapter K limited liability company. The term\n"subchapter K limited liability company" shall mean a limited liability\ncompany classified as a partnership for federal income tax purposes. The\nterm "limited liability company" means a domestic limited liability\ncompany or a foreign limited liability company, as defined in section\none hundred two of the limited liability company law, a limited\nliability investment company formed pursuant to section five hundred\nseven of the banking law, or a limited liability trust company formed\npursuant to section one hundred two-a of the banking law.\n (k) Comparable meaning of terms. Unless a different meaning is clearly\nrequired, any term used in this local law shall have the same meaning as\nwhen used in a comparable context in the laws of the United States\nrelating to federal taxes but such meaning shall be subject to the\nexceptions or modifications prescribed in or pursuant to article\nthirty-B of the tax law or by the laws of this state. Any reference in\nthis local law to the internal revenue code, the internal revenue code\nof nineteen hundred eighty-six or to the laws of the United States shall\nmean the provisions of the internal revenue code of nineteen hundred\neighty-six (unless a reference to the internal revenue code of nineteen\nhundred fifty-four is clearly intended), and amendments thereto, and\nother provisions of the laws of the United States relating to federal\ntaxes, and amendments thereto.\n § 2. Persons subject to tax. (a) Imposition of tax. A tax is hereby\nimposed at a rate not to exceed one-half of one percent on the wages\nearned, and net earnings from self-employment, within the city, of every\nnonresident individual, estate and trust.\n (b) Exclusion. (1) In computing the amount of wages and net earnings\nfrom self-employment taxable under subsection (a) of this section, there\nshall be allowed an exclusion against the total of wages and net\nearnings from self-employment in accordance with the following table:\n Total of Wages and Net Earnings\n From Self-Employment Exclusion Allowable\n Not Over $10,000 $3,000\n Over $10,000 But Not Over\n $20,000 $2,000\n Over $20,000 But Not Over\n $30,000 $1,000\n Over $30,000 NONE\n (2) The exclusion allowable shall be applied pro rata against wages\nand net earnings from self-employment.\n (3) For taxable periods of less than one year, the exclusion allowable\nshall be prorated pursuant to regulations of the state tax commission.\n (c) Limitation. In no event shall a taxpayer be subject to the tax\nunder this local law in an amount greater than he would be required to\npay if he were a resident of the city and subject to a city income tax\nsurcharge on residents of the city adopted by the city pursuant to\nauthority granted by article thirty-A of the tax law.\n § 3. Taxable years to which tax imposed by this local law applies. The\ntax imposed by this local law is imposed for taxable years beginning\nafter December thirty-first, nineteen hundred eighty-three and before\nJanuary first, two thousand twenty-eight.\n § 4. Allocation to the city. (a) General. If net earnings from\nself-employment are derived from services performed, or from sources,\nwithin and without the city, there shall be allocated to the city a fair\nand equitable portion of such earnings.\n (b) Allocation of net earnings from self-employment. (1) Place of\nbusiness. If a taxpayer has no regular place of business outside the\ncity all of his net earnings from self-employment shall be allocated to\nthe city.\n (2) Allocation by taxpayer's books. The portion of net earnings from\nself-employment allocable to the city may be determined from the books\nand records of a taxpayer's trade or business, if the methods used in\nkeeping such books and the accuracy thereof are approved by the state\ntax commission as fairly and equitably reflecting net earnings from\nself-employment within the city.\n (3) Allocation by formula. If paragraph two of this subsection does\nnot apply to the taxpayer, the portion of net earnings from\nself-employment allocable to the city shall be determined by multiplying\n(A) net earnings from self-employment within and without the city, by\n(B) the average of the following three percentages:\n (i) Property percentage. The percentage computed by dividing (I) the\naverage of the value, at the beginning and end of the taxable year, of\nreal and tangible personal property connected with the net earnings from\nself-employment and located within the city, by (II) the average of the\nvalue, at the beginning and end of the taxable year, of all real and\ntangible personal property connected with the net earnings from\nself-employment and located both within and without the city. For this\npurpose, real property shall include real property, whether owned or\nrented.\n (ii) Payroll percentage. The percentage computed by dividing (I) the\ntotal wages, salaries and other personal service compensation paid or\nincurred during the taxable year to employees in connection with the net\nearnings from self-employment derived from a trade or business carried\non within the city, by (II) the total of all wages, salaries and other\npersonal service compensation paid or incurred during the taxable year\nto employees in connection with the net earnings from self-employment\nderived from a trade or business carried on both within and without the\ncity.\n (iii) Gross income percentage. The percentage computed by dividing (I)\nthe gross sales or charges for services performed by or through an\nagency located within the city, by (II) the total of all gross sales or\ncharges for services performed within and without the city. The sales or\ncharges to be allocated to the city shall include all sales negotiated\nor consummated, and charges for services performed, by an employee,\nagent, agency or independent contractor chiefly situated at, connected\nby contract or otherwise with, or sent out from, offices or other\nagencies of the trade or business from which a taxpayer is deriving net\nearnings from self-employment, situated within the city.\n (c) Other allocation methods. The portion of net earnings from\nself-employment allocable to the city shall be determined in accordance\nwith rules and regulations of the state tax commission if it shall\nappear to the tax commission that the net earnings from self-employment\nare not fairly and equitably reflected under the provisions of\nsubsection (b) of this section.\n (d) Special rules for real estate. Income and deductions from the\nrental of real property and gain and loss from the sale, exchange or\nother disposition of real property, shall not be subject to allocation\nunder subsection (b) or (c) of this section, but shall be considered as\nentirely derived from or connected with the place in which such property\nis located.\n § 5. Accounting periods and methods. (a) Accounting periods. A\ntaxpayer's taxable year under this local law shall be the same as his\ntaxable year for federal income tax purposes.\n (b) Change of accounting periods. If a taxpayer's taxable year is\nchanged for federal income tax purposes, his taxable year for purposes\nof this local law shall be similarly changed. If a taxable period of\nless than twelve months results from a change of taxable year, the\nexclusion allowable under section two of this local law shall be\nprorated under regulations of the state tax commission.\n (c) Accounting methods. A taxpayer's method of accounting under this\nlocal law shall be the same as his method of accounting for federal\nincome tax purposes. In the absence of any method of accounting for\nfederal income tax purposes, net earnings from self-employment within\nthe city shall be computed under such method as in the opinion of the\nstate tax commission clearly reflects net earnings from self-employment\nwithin the city.\n (d) Change of accounting methods. (1) If a taxpayer's method of\naccounting is changed for federal income tax purposes, his method of\naccounting for purposes of this local law shall be similarly changed.\n (2) If a taxpayer's method of accounting is changed, other than from\nan accrual to an installment method, any additional tax which results\nfrom adjustments determined to be necessary solely by reason of the\nchange shall not be greater than if such adjustments were ratably\nallocated and included for the taxable year of the change and the\npreceding taxable years beginning after nineteen hundred eighty-three,\nnot in excess of two, during which the taxpayer used the method of\naccounting from which the change is made.\n (3) If a taxpayer's method of accounting is changed from an accrual to\nan installment method, any additional tax for the year of such change of\nmethod and for any subsequent year which is attributable to the receipt\nof installment payments properly accrued in a prior year, shall be\nreduced by the portion of tax for any prior taxable year attributable to\nthe accrual of such installment payments, in accordance with regulations\nof the state tax commission.\n § 7. Withholding of tax on wages. The provisions contained in part V\nof article twenty-two of the tax law (relating to withholding of tax on\nwages) shall be applicable with the same force and effect as if those\nprovisions had been incorporated in full in this section and had\nexpressly referred to the tax imposed by this local law except where\ninconsistent with the provisions of this local law, except that the term\n"aggregate amount" contained in paragraphs one, two and three of\nsubsection (a) of section six hundred seventy-four of the tax law shall\nmean the aggregate of the aggregate amounts of New York state personal\nincome tax, city earnings tax on nonresidents authorized pursuant to\narticle two-E of the general city law, city earnings tax on nonresidents\nauthorized pursuant to article thirty-B of the tax law, city personal\nincome tax on residents authorized pursuant to article thirty of the tax\nlaw and city income tax surcharge on residents authorized pursuant to\narticle thirty-A of the tax law required to be deducted and withheld.\n § 8. Returns and payment of tax. (a) General. On or before the\nfifteenth day of the fourth month following the close of the taxable\nyear, every person subject to the tax shall make and file a return and\nany balance of the tax shown due on the face of such return shall be\npaid therewith. The state tax commission may, by regulation, provide\nfor the filing of returns and payment of the tax at such other times as\nit deems necessary for the proper enforcement of this local law. The\nstate tax commission may also provide by regulation that any return\notherwise required to be made and filed under this local law by any\nnonresident individual need not be made and filed if such nonresident\nindividual had, during the taxable year to which the return would\nrelate, no net earnings from self-employment within the city. Any\nregulation allowing such waiver of return may provide for additional\nlimitations on and conditions and prerequisites to the privilege of not\nfiling a return.\n (b) Decedents. The return for any deceased individual shall be made\nand filed by his executor, administrator, or other person charged with\nhis property. If a final return of a decedent is for a fractional part\nof a year, the due date of such return shall be the fifteenth day of the\nfourth month following the close of the twelve-month period which began\nwith the first day of such fractional part of the year.\n (c) Individuals under a disability. The return for an individual who\nis unable to make a return by reason of minority or other disability\nshall be made and filed by his guardian, committee, fiduciary or other\nperson charged with the care of his person or property (other than a\nreceiver in possession of only a part of his property), or by his duly\nauthorized agent.\n (d) Estates and trusts. The return for an estate or trust shall be\nmade and filed by the fiduciary.\n (e) Joint fiduciaries. If two or more fiduciaries are acting jointly,\nthe return may be made by any one of them.\n (f) Cross reference. For provisions as to information returns by\npartnerships, employers and other persons, see section fourteen.\n § 9. Combined returns and employer's returns. The state tax commission\nmay require:\n (1) The filing of any or all of the following:\n (A) A combined return which in addition to the return provided for in\na local law authorized by article thirty-B of the tax law may also\ninclude returns required to be filed under a local law authorized by\narticle two-E of the general city law or article thirty or thirty-A of\nthe tax law and under article twenty-two of the tax law.\n (B) A combined employer's return which in addition to the employer's\nreturn provided for in a local law authorized by article thirty-B of the\ntax law may also include employer's returns required to be filed under a\nlocal law authorized by article two-E of the general city law or article\nthirty or thirty-A of the tax law and under article twenty-two of the\ntax law.\n (2) Where a combined return or employer's return is required, and with\nrespect to the payment of estimated tax, the state tax commission may\nalso require payment of a single amount which shall be the total of the\namounts (total taxes less any credits or refunds) required to be paid\nwith the returns or employer's returns or in payment of estimated tax\npursuant to the provisions of local laws imposed under the authority of\narticle thirty-B of the tax law, article two-E of the general city law\nor article thirty or thirty-A of the tax law and pursuant to the\nprovisions of article twenty-two of the tax law.\n § 10. Time and place for filing returns and paying tax. A person\nrequired to make and file a return under this local law shall, without\nassessment, notice or demand, pay any tax due thereon to the state tax\ncommission on or before the date fixed for filing such return\n(determined without regard to any extension of time for filing the\nreturn). The state tax commission shall prescribe by regulation the\nplace for filing any return, statement or other document required\npursuant to this local law and for payment of any tax.\n § 11. Signing of returns and other documents. (a) General. Any return,\nstatement or other document required to be made pursuant to this local\nlaw shall be signed in accordance with regulations or instructions\nprescribed by the state tax commission. The fact that an individual's\nname is signed to a return, statement or other document, shall be prima\nfacie evidence for all purposes that the return, statement or other\ndocument was actually signed by him.\n (b) Partnerships. Any return, statement or other document required of\na partnership shall be signed by one or more partners. The fact that a\npartner's name is signed to a return, statement or other document, shall\nbe prima facie evidence for all purposes that such partner is authorized\nto sign on behalf of the partnership.\n (c) Certifications. The making or filing of any return, statement or\nother document or copy thereof required to be made or filed pursuant to\nthis local law, including a copy of a federal return, shall constitute a\ncertification by the person making or filing such return, statement or\nother document or copy thereof that the statements contained therein are\ntrue and that any copy filed is a true copy.\n § 12. Change of residence status during year. (a) General. If an\nindividual changes his status during his taxable year from resident to\nnonresident, or from nonresident to resident, he shall file a return as\na nonresident for the portion of the year during which he is a\nnonresident if he is subject to the tax imposed by this local law or, if\nnot subject to such tax, an information return for the portion of the\nyear during which he is a nonresident, subject to such exceptions as the\nstate tax commission may prescribe by regulation. Such information\nreturn shall be due at the same time as the return required by a local\nlaw authorized by article thirty-A of the tax law for the portion of the\nyear during which such individual is a resident.\n (b) City taxable wages and net earnings from self-employment for\nportion of year individual is a nonresident. The city taxable wages and\nnet earnings from self-employment for the portion of the year during\nwhich the taxpayer is a nonresident shall be determined, except as\nprovided in subsection (c), under this local law as if his taxable year\nfor federal income tax purposes were limited to the period of his\nnonresident status.\n (c) Special accruals. (1) If a individual changes his status from\nresident to nonresident, he shall, regardless of his method of\naccounting, accrue for the portion of the taxable year prior to such\nchange of status any items of income, gain, loss or deduction accruing\nprior to the change of status, if not otherwise properly includible\n(whether or not because of an election to report on an installment\nbasis) or allowable for city earnings tax purposes for such portion of\nthe taxable year or a prior taxable year. The amounts of such accrued\nitems shall be determined as if such accrued items were includible or\nallowable for federal self-employment tax purposes.\n (2) If an individual changes his status from nonresident to resident,\nhe shall, regardless of his method of accounting, accrue for the portion\nof the taxable year prior to such change of status any items of income,\ngain, loss or deduction accruing prior to the change of status, if not\notherwise properly includible (whether or not because of an election to\nreport on an installment basis) or allowable for federal self-employment\ntax purposes for such portion of the taxable year or a prior taxable\nyear. The amounts of such accrued items shall be determined as if such\naccrued items were includible or allowable for federal self-employment\ntax purposes.\n (3) No item of income, gain, loss or deduction which is accrued under\nthis subsection shall be taken into account in determining city adjusted\nwages earned, or net earnings from self-employment, within the city, for\nany subsequent taxable period.\n (4) Where an individual changes his status from resident to\nnonresident, the accruals under this subsection shall not be required if\nthe individual files with the state tax commission a bond or other\nsecurity acceptable to the commission, conditioned upon the inclusion of\namounts accruable under this subsection in the determination of the city\nincome tax surcharge under a local law authorized by article thirty-A of\nthe tax law for one or more subsequent taxable years as if the\nindividual had not changed his resident status. In such event, the tax\nunder this local law shall not apply to such amounts.\n (d) Prorations. Where an individual changes his status during his\ntaxable year from resident to nonresident or from nonresident to\nresident, the exclusion allowable under subsection (b) of section two\nshall be prorated, under regulations of the state tax commission, to\nreflect the portions of the entire taxable year during which the\nindividual was a resident and a nonresident.\n § 13. Extensions of time. The state tax commission may grant a\nreasonable extension of time for payment of a tax or estimated tax (or\nany installment), or for filing any return, statement or other document\nrequired pursuant to this local law, on such terms and conditions as it\nmay require. Except for a taxpayer who is outside the United States or\nwho intends to claim nonresident status pursuant to subparagraph (B) of\nparagraph one of subsection (f) of section one, no such extension for\nfiling any return, statement or other document shall exceed six months.\n § 14. Requirements concerning returns, notices, records and\nstatements. (a) General. The state tax commission may prescribe\nregulations as to the keeping of records, the content and form of\nreturns and statements, and the filing of copies of federal income tax\nreturns and determinations. The state tax commission may require any\nperson, by regulation or notice served upon such person, to make such\nreturns, render such statements, or keep such records, as the state tax\ncommission may deem sufficient to show whether or not such person is\nliable under this local law for tax or for collection of tax.\n (b) Partnerships. Every partnership doing business in the city and\nhaving no partners who are residents shall make a return for the taxable\nyear setting forth all items of income, gain, loss and deduction and\nsuch other pertinent information as the state tax commission may by\nregulations and instructions prescribe. Such return shall be filed on or\nbefore the fifteenth day of the fourth month following the close of each\ntaxable year. For purposes of this subsection, "taxable year" means a\nyear or a period which would be a taxable year of the partnership if it\nwere subject to tax under this local law.\n (c) Information at source. The state tax commission may prescribe\nregulations and instructions requiring returns of information to be made\nand filed on or before February twenty-eighth of each year as to the\npayment or crediting in any calendar year of amounts of six hundred\ndollars or more to any taxpayer under this local law. Such returns may\nbe required of any person, including lessees or mortgagors of real or\npersonal property, fiduciaries, employers, and all officers and\nemployees of this state, or any municipal corporation or political\nsubdivision of this state, having the control, receipt, custody,\ndisposal or payment of interest, rents, salaries, wages, premiums,\nannuities, compensation, remunerations, emoluments or other fixed or\ndeterminable gains, profits or income, except interest coupons payable\nto bearer. A duplicate of the statement as to tax withheld on wages,\nrequired to be furnished by an employer to an employee, shall constitute\nthe return of information required to be made under this section with\nrespect to such wages.\n (d) Notice of qualification as receiver, etc. Every receiver, trustee\nin bankruptcy, assignee for benefit of creditors, or other like\nfiduciary shall give notice of his qualification as such to the state\ntax commission, as may be required by regulation.\n § 15. Report of change in federal or New York state taxable income. If\nthe amount of a taxpayer's federal or New York state taxable income or\nself-employment income reported on his federal or New York state tax\nreturn for any taxable year is changed or corrected by the United States\ninternal revenue service or the New York state commissioner of taxation\nand finance or other competent authority, or as the result of a\nrenegotiation of a contract or subcontract with the United States or New\nYork state or if a taxpayer, pursuant to subsection (d) of section six\nthousand two hundred thirteen of the internal revenue code, executes a\nnotice of waiver of the restrictions provided in subsection (a) of said\nsection or if a taxpayer, pursuant to subsection (f) of section six\nhundred eighty-one of the tax law executes a notice of waiver of the\nrestrictions provided in subsection (c) of said section, or if any tax\non self-employment income in addition to that shown on his return is\nassessed, the taxpayer shall report such change or correction in federal\nor New York state taxable income or such execution of such notice of\nwaiver or such assessment and the changes or corrections of his federal\nor New York state taxable income or self-employment income on which it\nis based, within ninety days after the final determination of such\nchange, correction, or renegotiation, or such execution of such notice\nof waiver or the making of such assessment as otherwise required by the\ncommissioner, and shall concede the accuracy of such determination or\nstate wherein it is erroneous. Any taxpayer filing an amended federal or\nNew York state income or self-employment income tax return shall also\nfile within ninety days thereafter an amended return under this local\nlaw, and shall give such information as the commissioner may require.\nThe commissioner may by regulation prescribe such exceptions to the\nrequirements of this section as he or she deems appropriate. For\npurposes of this section, (i) the term "taxpayer" shall include a\npartnership having any income derived from city sources, and (ii) the\nterm "federal income tax return" shall include the returns of income\nrequired under section six thousand thirty-one of the internal revenue\ncode. Reports made under this section by a partnership shall indicate\nthe portion of the change in each item of income, gain, loss or\ndeduction allocable to each partner and shall set forth such identifying\ninformation with respect to such partner as may be prescribed by the\ncommissioner.\n § 16. Effect of invalidity in part; inconsistencies with other laws.\n(a) If any clause, sentence, paragraph, subsection, section, provision\nor other portion of this local law or the application thereof to any\nperson or circumstances shall be held to be invalid, such holding shall\nnot affect, impair or invalidate the remainder of this local law or the\napplication of such portion held invalid, to any other person or\ncircumstances, but shall be confined in its operation to the clause,\nsentence, paragraph, subsection, section, provision or other portion\nthereof directly involved in such holding or to the person and\ncircumstances therein involved.\n (b) If any provision of this local law is inconsistent with, in\nconflict with, or contrary to any other provision of law, such provision\nof this local law shall prevail over such other provision and such other\nprovision shall be deemed to have been amended, superseded or repealed\nto the extent of such inconsistency, conflict or contrariety.\n (d) Any wages received by an individual as an employee of a business\nlocated in a tax-free NY area within the city during the first five\nyears of such business's ten year taxable period specified in\nsubdivision (a) of section thirty-nine of this chapter and earned at\nsuch location shall be exempt from the tax authorized to be imposed by\nthis article to the extent included in federal adjusted gross income and\nallowed under section thirty-nine of this chapter. During the second\nfive years of such business's ten year taxable period, the first two\nhundred thousand dollars of such wages in the case of a taxpayer filing\nas a single individual, the first two hundred fifty thousand dollars of\nsuch wages in the case of a taxpayer filing as a head of household, and\nthree hundred thousand dollars of such wages in the case of a taxpayer\nfiling a joint return, to the extent included in federal adjusted gross\nincome and allowed under section thirty-nine of this chapter.\n