Bill Text: NY A08809 | 2023-2024 | General Assembly | Introduced
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Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2024-2025 state fiscal year; extends the itemized deduction limit on individuals with income over ten million dollars to 2030 (Part A); extends provisions relating to the voluntary compliance initiative (Part B); makes technical corrections to the metropolitan commuter transportation mobility tax (Part C); relates to the restriction upon issuing notices for a tax year that is the subject of a pending petition filed with the division of tax appeals (Part D); creates the commercial security tax credit program for certain expenses of eligible businesses related to qualified retail theft prevention measures (Part E); extends provisions of law relating to the mandatory electronic filing of certain tax documents (Part F); extends provisions relating to segregated sales tax accounts to December 31, 2029 (Part G); provides that a tax return may be amended where such amendment would not result in the reduction or elimination of a past-due tax liability; provides that any person who willfully files or amends a return that contains false information to reduce or eliminate a liability shall be subjected to a penalty not to exceed one thousand dollars per return (Part H); extends provisions of law relating to exempting from sales and use tax certain tangible personal property and services sold to a related person (Part I); extends the sales tax exemption for certain sales made through vending machines through March 31, 2025 (Part J); relates to the taxation of adult-use cannabis products; provides for the taxation of adult-use cannabis products where books and records are not provided or are determined to be insufficient (Part L); relates to the utilization of funds in the Capital region off-track betting corporations' capital acquisition funds (Part O); extends certain provisions of the racing, pari-mutuel wagering and breeding law (Part P); relates to the computation of tax on little cigars (Part Q); extends requirements related to the New York Jockey Injury Compensation Fund, Inc. (Part R); extends certain exceptions to licensing at a race meet for certain races conducted at the Saratoga racetrack during 2024 and 2025; provides for the repeal of such provisions upon expiration thereof (Part S); lowers the excise tax rate on medical cannabis; provides for the allocation of moneys of the medical cannabis trust fund (Part T).
Spectrum: Committee Bill
Status: (Introduced) 2024-04-18 - substituted by s8309b [A08809 Detail]
Download: New_York-2023-A08809-Introduced.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2024-2025 state fiscal year; extends the itemized deduction limit on individuals with income over ten million dollars to 2030 (Part A); extends provisions relating to the voluntary compliance initiative (Part B); makes technical corrections to the metropolitan commuter transportation mobility tax (Part C); relates to the restriction upon issuing notices for a tax year that is the subject of a pending petition filed with the division of tax appeals (Part D); creates the commercial security tax credit program for certain expenses of eligible businesses related to qualified retail theft prevention measures (Part E); extends provisions of law relating to the mandatory electronic filing of certain tax documents (Part F); extends provisions relating to segregated sales tax accounts to December 31, 2029 (Part G); provides that a tax return may be amended where such amendment would not result in the reduction or elimination of a past-due tax liability; provides that any person who willfully files or amends a return that contains false information to reduce or eliminate a liability shall be subjected to a penalty not to exceed one thousand dollars per return (Part H); extends provisions of law relating to exempting from sales and use tax certain tangible personal property and services sold to a related person (Part I); extends the sales tax exemption for certain sales made through vending machines through March 31, 2025 (Part J); relates to the taxation of adult-use cannabis products; provides for the taxation of adult-use cannabis products where books and records are not provided or are determined to be insufficient (Part L); relates to the utilization of funds in the Capital region off-track betting corporations' capital acquisition funds (Part O); extends certain provisions of the racing, pari-mutuel wagering and breeding law (Part P); relates to the computation of tax on little cigars (Part Q); extends requirements related to the New York Jockey Injury Compensation Fund, Inc. (Part R); extends certain exceptions to licensing at a race meet for certain races conducted at the Saratoga racetrack during 2024 and 2025; provides for the repeal of such provisions upon expiration thereof (Part S); lowers the excise tax rate on medical cannabis; provides for the allocation of moneys of the medical cannabis trust fund (Part T).
Spectrum: Committee Bill
Status: (Introduced) 2024-04-18 - substituted by s8309b [A08809 Detail]
Download: New_York-2023-A08809-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 8309 A. 8809 SENATE - ASSEMBLY January 17, 2024 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law and the administrative code of the city of New York, in relation to permanently extending the itemized deduction limit on individuals with income over ten million dollars (Part A); to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to eliminating the expiration thereof (Part B); to amend the tax law, in relation to making technical corrections to the metropolitan commuter transporta- tion mobility tax (Part C); to amend the tax law, in relation to the restriction upon issuing notices for a tax year that is the subject of a pending petition filed with the division of tax appeals (Part D); to amend the executive law and the tax law, in relation to creating the commercial security tax credit program (Part E); to amend section 23 of part U of chapter 61 of the laws of 2011, amending the real proper- ty tax law and other laws relating to establishing standards for elec- tronic tax administration, in relation to the effectiveness of certain provisions relating to mandatory electronic filing of tax docu- ments; and to repeal certain provisions of the tax law and the admin- istrative code of the city of New York relating to mandatory electron- ic filing by certain tax return preparers and the failure to electronically file returns (Part F); to repeal subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011 relating to the expiration of the segregated sales tax account provisions (Part G); to amend the tax law, in relation to the filing of amended returns under article 28 thereof (Part H); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property and services (Part I); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vending machines (Part J); to amend the tax law, in relation to requiring sales tax from vacation rental marketplace providers (Part K); to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-01-4S. 8309 2 A. 8809 amend the tax law, in relation to the taxation of adult-use cannabis products (Part L); to amend the real property tax law, in relation to clarifying the assessment ceiling for local public utility mass real property (Part M); to amend the real property tax law, in relation to requiring excess proceeds from a tax foreclosure sale to be returned to the former owner (Part N); to amend the racing, pari-mutuel wager- ing and breeding law, in relation to the utilization of funds in the Capital off-track betting corporations' capital acquisition funds (Part O); and to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distrib- utions of wagers; to amend chapter 59 of the laws of 2023 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting; to amend chapter 59 of the laws of 2023 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part P) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2024-2025 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through P. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, 7 including the effective date of the Part, which makes a reference to a 8 section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Section 1. Paragraph 2 of subsection (g) of section 615 of the tax 14 law, as amended by section 1 of part Q of chapter 59 of the laws of 15 2019, is amended to read as follows: 16 (2) With respect to an individual whose New York adjusted gross income 17 is over ten million dollars, the New York itemized deduction shall be an 18 amount equal to twenty-five percent of any charitable contribution 19 deduction allowed under section one hundred seventy of the internal 20 revenue code for taxable years beginning after two thousand nine [and21ending before two thousand twenty-five]. 22 § 2. Paragraph 2 of subdivision (g) of section 11-1715 of the adminis- 23 trative code of the city of New York, as amended by section 2 of part Q 24 of chapter 59 of the laws of 2019, is amended to read as follows: 25 (2) With respect to an individual whose New York adjusted gross income 26 is over ten million dollars, the New York itemized deduction shall be an 27 amount equal to twenty-five percent of any charitable contribution 28 deduction allowed under section one hundred seventy of the internalS. 8309 3 A. 8809 1 revenue code for taxable years beginning after two thousand nine [and2ending before two thousand twenty-five]. 3 § 3. This act shall take effect immediately. 4 PART B 5 Section 1. Section 12 of part N of chapter 61 of the laws of 2005, 6 amending the tax law relating to certain transactions and related infor- 7 mation and relating to the voluntary compliance initiative, as amended 8 by section 1 of part O of chapter 59 of the laws of 2019, is amended to 9 read as follows: 10 § 12. This act shall take effect immediately; provided, however, that 11 (i) section one of this act shall apply to all disclosure statements 12 described in paragraph 1 of subdivision (a) of section 25 of the tax 13 law, as added by section one of this act, that were required to be filed 14 with the internal revenue service at any time with respect to "listed 15 transactions" as described in such paragraph 1, and shall apply to all 16 disclosure statements described in paragraph 1 of subdivision (a) of 17 section 25 of the tax law, as added by section one of this act, that 18 were required to be filed with the internal revenue service with respect 19 to "reportable transactions" as described in such paragraph 1, other 20 than "listed transactions", in which a taxpayer participated during any 21 taxable year for which the statute of limitations for assessment has not 22 expired as of the date this act shall take effect, and shall apply to 23 returns or statements described in such paragraph 1 required to be filed 24 by taxpayers (or persons as described in such paragraph) with the 25 commissioner of taxation and finance on or after the sixtieth day after 26 this act shall have become a law; and 27 (ii) sections two through four and seven through nine of this act 28 shall apply to any tax liability for which the statute of limitations on 29 assessment has not expired as of the date this act shall take effect[;30and31(iii) provided, further, that the provisions of this act, except32section five of this act, shall expire and be deemed repealed July 1,332024; provided, that, such expiration and repeal shall not affect any34requirement imposed pursuant to this act]. 35 § 2. This act shall take effect immediately. 36 PART C 37 Section 1. The opening paragraph of paragraph 2 of subsection (a) of 38 section 801 of the tax law, as amended by section 1 of part N of chapter 39 59 of the laws of 2012, is amended to read as follows: 40 (A) For individuals, the tax is imposed at a rate of thirty-four 41 hundredths (.34) percent of the net earnings from self-employment of 42 individuals that are attributable to the MCTD, in the counties of Dutch- 43 ess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, if such 44 earnings attributable to the MCTD exceed fifty thousand dollars for the 45 tax year. 46 § 2. This act shall take effect immediately and shall apply to taxable 47 years beginning on or after January 1, 2024. 48 PART D 49 Section 1. Paragraph 2 of subsection (c) and paragraph 4 of subsection 50 (d) of section 689 of the tax law, paragraph 2 of subsection (c) asS. 8309 4 A. 8809 1 amended by chapter 40 of the laws of 1964 and paragraph 4 of subsection 2 (d) as amended by chapter 28 of the laws of 1987, are amended to read as 3 follows: 4 (2) the taxpayer has not previously filed with the tax commission a 5 timely petition under subsection (b) of this section for the same taxa- 6 ble year unless the petition under this subsection relates to a separate 7 claim for credit or refund properly filed under subsection (f) of 8 section six hundred eighty-seven of this part or relates to a refund or 9 credit first claimed on an amended return for the taxable year, and 10 (4) Restriction on further notices of deficiency. -- If the taxpayer 11 files a petition with the tax commission under this section, no notice 12 of deficiency under section six hundred eighty-one of this part may 13 thereafter be issued by the tax commission for the same [taxable year] 14 tax return, except in case of fraud or with respect to a change or 15 correction required to be reported under section six hundred fifty-nine 16 of this article. 17 § 2. Paragraph 2 of subsection (c) and paragraph 4 of subsection (d) 18 of section 1089 of the tax law, paragraph 2 of subsection (c) as added 19 by chapter 188 of the laws of 1964 and paragraph 4 of subsection (d) as 20 amended by chapter 817 of the laws of 1987, are amended to read as 21 follows: 22 (2) the taxpayer has not previously filed with the tax commission a 23 timely petition under subsection (b) of this section for the same taxa- 24 ble year unless the petition under this subsection relates to a separate 25 claim for credit or refund properly filed under subsection (f) of 26 section one thousand eighty-seven of this article or relates to a refund 27 or credit first claimed on an amended return for the taxable year, and 28 (4) Restriction on further notices of deficiency.---If the taxpayer 29 files a petition with the tax commission under this section, no notice 30 of deficiency under section one thousand eighty-one of this article may 31 thereafter be issued by the tax commission for the same [taxable year] 32 tax return, except in case of fraud or with respect to an increase or 33 decrease in federal taxable income or federal alternative minimum taxa- 34 ble income or federal tax or a federal change or correction or renegoti- 35 ation, or computation or recomputation of tax, which is treated in the 36 same manner as if it were a deficiency for federal income tax purposes, 37 required to be reported under subdivision three of section two hundred 38 eleven[, or under section two hundred nineteen-bb or under section two39hundred nineteen-zz] of this chapter. 40 § 3. This act shall take effect immediately and apply to taxable years 41 beginning on or after January 1, 2024. 42 PART E 43 Section 1. The executive law is amended by adding a new section 845-e 44 to read as follows: 45 § 845-e. Commercial security tax credit program. 1. Definitions. For 46 the purposes of this section: 47 (a) "Certificate of tax credit" means the document issued to a busi- 48 ness entity by the division after the division has verified that the 49 business entity has met all applicable eligibility criteria in subdivi- 50 sion two of this section. The certificate shall specify the exact amount 51 of the tax credit under this section that a business entity may claim, 52 pursuant to subdivision five of this section, and other information as 53 required by the department of taxation and finance.S. 8309 5 A. 8809 1 (b) "Qualified business" means a business with one hundred or fewer 2 total employees that operates one or more physical retail business 3 locations open to the public in New York state that incurs costs related 4 to protection against retail theft of goods through retail theft 5 prevention measures. 6 (c) "Qualified retail theft prevention measure expenses" means any 7 combination of retail theft prevention measure costs paid or incurred by 8 a qualified business during the taxable year that cumulatively exceed 9 twelve thousand dollars for each New York retail location. 10 (d) "Retail theft prevention measure" means (i) the use of security 11 officers as defined in paragraph (e) of this subdivision, (ii) security 12 cameras, (iii) perimeter security lighting, (iv) interior or exterior 13 locking or hardening measures, (v) alarm systems, (vi) access control 14 systems, or (vii) other appropriate anti-theft devices as determined by 15 the division to be eligible under this section. 16 (e) "Security officers" means security officers, registered under 17 article seven-A of the general business law, responsible for the securi- 18 ty and theft deterrence in a qualified business, whether employed 19 directly by such business or indirectly through a contractor. 20 2. Eligibility criteria. To be eligible for a tax credit under the 21 commercial security tax credit program, an eligible business must: 22 (a) be a qualified business required to file a tax return pursuant to 23 articles nine, nine-A or twenty-two of the tax law; 24 (b) have qualified retail theft prevention measure expenses that 25 exceed twelve thousand dollars for each New York retail location during 26 the taxable year; 27 (c) provide a certification in a manner and form prescribed by the 28 commissioner that the business entity participates in a community anti- 29 theft partnership as established by the division between businesses and 30 relevant local law enforcement agencies; and 31 (d) may not owe past due state taxes or local property taxes unless 32 the business entity is making payments and complying with an approved 33 binding payment agreement entered into with the taxing authority. 34 3. Application and approval process. (a) A business entity must submit 35 a complete application as prescribed by the commissioner by October 36 thirty-first of each year. 37 (b) The commissioner shall establish procedures for business entities 38 to submit applications. As part of the application, each business entity 39 must: 40 (i) provide evidence of eligibility in a form and manner prescribed by 41 the commissioner; 42 (ii) agree to allow the department of taxation and finance to share 43 the business entity's tax information with the division. However, any 44 information shared as a result of this program shall not be available 45 for disclosure or inspection under the state freedom of information law 46 pursuant to article six of the public officers law; 47 (iii) allow the division and its agents access to any and all books 48 and records the division may require to confirm eligibility; and 49 (iv) agree to provide any additional information required by the divi- 50 sion relevant to this section. 51 4. Certificate of tax credit. After reviewing a business entity's 52 completed final application and determining that a business entity meets 53 the eligibility criteria as set forth in this section, the division may 54 issue to that business entity a certificate of tax credit. All applica- 55 tions will be processed by the division in the order they are received 56 and certificates of tax credit may be issued in amounts that, in theS. 8309 6 A. 8809 1 aggregate, do not exceed the annual cap as set forth in subdivision 2 seven of this section. 3 5. Commercial security tax credit. (a) For taxable years beginning on 4 or after January first, two thousand twenty-four and before January 5 first, two thousand twenty-six, a business entity in the commercial 6 security tax credit program that meets the eligibility requirements of 7 subdivision two of this section may be eligible to claim a credit equal 8 to three thousand dollars for each retail location of the business enti- 9 ty located in New York state. 10 (b) A business entity may claim the tax credit in the taxable year 11 that begins in the year for which it was allocated a credit by the divi- 12 sion under this section. 13 (c) The credit shall be allowed as provided in section forty-nine, 14 section one hundred eighty-seven-r, subdivision sixty of section two 15 hundred ten-B and subsection (ppp) of section six hundred six of the tax 16 law. 17 (d) The commissioner shall, in consultation with the department of 18 taxation and finance, develop a certificate of tax credit that shall be 19 issued by the commissioner to eligible businesses. 20 (e) The commissioner shall solely determine the eligibility of any 21 applicant applying for entry into the program and shall remove any busi- 22 ness entity from the program for failing to meet any of the requirements 23 set forth in subdivision two and subdivision three of this section. In 24 the event a business entity is removed from the program, the division 25 shall notify the department of taxation and finance of such removal. 26 6. Maintenance of records. Each eligible business participating in the 27 program shall keep all relevant records for the duration of their 28 program participation for at least three years. 29 7. Cap on tax credit. The total amount of tax credits listed on 30 certificates of tax credit issued by the division pursuant to this 31 section may not exceed five million dollars per calendar year. 32 § 2. The tax law is amended by adding a new section 49 to read as 33 follows: 34 § 49. Commercial security tax credit. (a) Allowance of credit. For 35 taxable years beginning on or after January first, two thousand twenty- 36 four and before January first, two thousand twenty-six, a taxpayer 37 required to file a return pursuant to articles nine, nine-A or twenty- 38 two of this chapter shall be allowed a credit against such tax, pursuant 39 to the provisions referenced in subdivision (f) of this section. The 40 amount of the credit is equal to the amount determined pursuant to 41 section eight hundred forty-five-e of the executive law. No cost or 42 expense paid or incurred by the taxpayer that is included as part of the 43 calculation of this credit shall be the basis of any other tax credit 44 allowed under this chapter. 45 (b) To be eligible for the commercial security tax credit, the taxpay- 46 er shall have been issued a certificate of tax credit by the division of 47 criminal justice services pursuant to section eight hundred forty-five-e 48 of the executive law, which certificate shall set forth the amount of 49 the credit that may be claimed for the taxable year. The taxpayer shall 50 be allowed to claim only the amount listed on the certificate of tax 51 credit for the taxable year. A taxpayer that is a partner in a partner- 52 ship, member of a limited liability company or shareholder in a subchap- 53 ter S corporation that has received a certificate of tax credit shall be 54 allowed its pro rata share of the credit earned by the partnership, 55 limited liability company or subchapter S corporation.S. 8309 7 A. 8809 1 (c) Tax return requirement. The taxpayer shall be required to attach 2 to its tax return in the form prescribed by the commissioner, proof of 3 receipt of its certificate of tax credit issued by the division of crim- 4 inal justice services. 5 (d) Information sharing. Notwithstanding any provision of this chap- 6 ter, employees of the division of criminal justice services and the 7 department shall be allowed and are directed to share and exchange: 8 (1) information derived from tax returns or reports that is relevant 9 to a taxpayer's eligibility to participate in the commercial security 10 tax credit program; 11 (2) information regarding the credit applied for, allowed or claimed 12 pursuant to this section and taxpayers that are applying for the commer- 13 cial security tax credit program or that are claiming such credit; and 14 (3) information contained in or derived from credit claim forms 15 submitted to the department and applications for admission into the 16 commercial security tax credit program. All information exchanged 17 between the department and the division of criminal justice services 18 shall not be subject to disclosure or inspection under the state's free- 19 dom of information law. 20 (e) Credit recapture. If a certificate of tax credit issued by the 21 division of criminal justice services under section eight hundred 22 forty-five-e of the executive law is revoked by the division, the amount 23 of credit described in this section and claimed by the taxpayer prior to 24 such revocation shall be added back to tax in the taxable year such 25 revocation becomes final. 26 (f) Cross references. For application of the credit provided for in 27 this section, see the following provisions of this chapter: 28 (1) article 9; section 187-r; 29 (2) article 9-A: section 210-B, subdivision 60; 30 (3) article 22: section 606, subdivision (ppp). 31 § 3. The tax law is amended by adding a new section 187-r to read as 32 follows: 33 § 187-r. Commercial security tax credit. 1. Allowance of credit. A 34 taxpayer shall be allowed a credit, to be computed as provided in 35 section forty-nine of this chapter, against the tax imposed by this 36 article. 37 2. Application of credit. In no event shall the credit under this 38 section be allowed in an amount that will reduce the tax payable to less 39 than the applicable minimum tax fixed by section one hundred eighty- 40 three of this article. If, however, the amount of credit allowable under 41 this section for any taxable year reduces the tax to such amount, any 42 amount of credit not deductible in such taxable year shall be treated as 43 an overpayment of tax to be refunded in accordance with the provisions 44 of section one thousand eighty-six of this chapter. Provided, however, 45 the provisions of subsection (c) of section one thousand eighty-eight of 46 this chapter notwithstanding, no interest shall be paid thereon. 47 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 48 sion 60 to read as follows: 49 60. Commercial security tax credit. (a) Allowance of credit. A taxpay- 50 er shall be allowed a credit, to be computed as provided in section 51 forty-nine of this chapter, against the taxes imposed by this article. 52 (b) Application of credit. The credit allowed under this subdivision 53 for the taxable year shall not reduce the tax due for such year to less 54 than the amount prescribed in paragraph (d) of subdivision one of 55 section two hundred ten of this article. However, if the amount of cred- 56 it allowable under this subdivision for the taxable year reduces the taxS. 8309 8 A. 8809 1 to such amount or if the taxpayer otherwise pays tax based on the fixed 2 dollar minimum amount, any amount of credit thus not deductible in such 3 taxable year shall be treated as an overpayment of tax to be credited or 4 refunded in accordance with the provisions of section one thousand 5 eighty-six of this chapter. Provided, however, the provisions of 6 subsection (c) of section one thousand eighty-eight of this chapter 7 notwithstanding, no interest will be paid thereon. 8 § 5. Section 606 of the tax law is amended by adding a new subsection 9 (ppp) to read as follows: 10 (ppp) Commercial security tax credit. (1) Allowance of credit. A 11 taxpayer shall be allowed a credit, to be computed as provided in 12 section forty-nine of this chapter, against the tax imposed by this 13 article. 14 (2) Application of credit. If the amount of the credit allowed under 15 this subsection for the taxable year exceeds the taxpayer's tax for such 16 year, the excess shall be treated as an overpayment of tax to be credit- 17 ed or refunded in accordance with the provisions of section six hundred 18 eighty-six of this article, provided, however, that no interest will be 19 paid thereon. 20 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 21 of the tax law is amended by adding a new clause (li) to read as 22 follows: 23 (li) Commercial security tax Amount of credit under 24 credit under subsection (ppp) subdivision sixty of 25 section two hundred ten-B 26 § 7. This act shall take effect immediately. 27 PART F 28 Section 1. Paragraph 10 of subsection (g) of section 658 of the tax 29 law is REPEALED. 30 § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- 31 istrative code of the city of New York is REPEALED. 32 § 3. Paragraph 5 of subsection (u) of section 685 of the tax law is 33 REPEALED. 34 § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- 35 trative code of the city of New York is REPEALED. 36 § 5. Subdivisions (a), (b), (c) and (d) of section 23 of part U of 37 chapter 61 of the laws of 2011, amending the real property tax law and 38 other laws relating to establishing standards for electronic tax 39 administration, subdivisions (a), (c) and (d) as amended by section 5 of 40 part A of chapter 59 of the laws of 2019 and subdivision (b) as amended 41 by section 5 of part G of chapter 60 of the laws of 2016, are amended to 42 read as follows: 43 (a) the amendments to section 29 of the tax law made by section thir- 44 teen of this act shall apply to tax documents filed or required to be 45 filed on or after the sixtieth day after which this act shall have 46 become a law [and shall expire and be deemed repealed December 31,472024], provided however that the amendments to paragraph 4 of subdivi- 48 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) 49 of section 29 of the tax law made by section thirteen of this act with 50 regard to individual taxpayers shall take effect September 15, 2011 but 51 only if the commissioner of taxation and finance has reported in the 52 report required by section seventeen-b of this act that the percentage 53 of individual taxpayers electronically filing their 2010 income tax 54 returns is less than eighty-five percent; provided that the commissionerS. 8309 9 A. 8809 1 of taxation and finance shall notify the legislative bill drafting 2 commission of the date of the issuance of such report in order that the 3 commission may maintain an accurate and timely effective data base of 4 the official text of the laws of the state of New York in furtherance of 5 effectuating the provisions of section 44 of the legislative law and 6 section 70-b of the public officers law; 7 (b) sections fourteen, fifteen, sixteen and seventeen of this act 8 shall take effect September 15, 2011 but only if the commissioner of 9 taxation and finance has reported in the report required by section 10 seventeen-b of this act that the percentage of individual taxpayers 11 electronically filing their 2010 income tax returns is less than eight- 12 y-five percent; and 13 (c) sections fourteen-a and fifteen-a of this act shall take effect 14 September 15, 2011 and expire and be deemed repealed December 31, 2012 15 but shall take effect only if the commissioner of taxation and finance 16 has reported in the report required by section seventeen-b of this act 17 that the percentage of individual taxpayers electronically filing their 18 2010 income tax returns is eighty-five percent or greater[;19(d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this20act shall take effect January 1, 2025 but only if the commissioner of21taxation and finance has reported in the report required by section22seventeen-b of this act that the percentage of individual taxpayers23electronically filing their 2010 income tax returns is less than eight-24y-five percent; and]. 25 § 6. This act shall take effect immediately. 26 PART G 27 Section 1. Subdivision (e) of section 23 of part U of chapter 61 of 28 the laws of 2011 is REPEALED. 29 § 2. This act shall take effect immediately. 30 PART H 31 Section 1. Section 1136 of the tax law is amended by adding a new 32 subdivision (d-1) to read as follows: 33 (d-1)(1) Notwithstanding subdivision (d) of this section, a return may 34 be amended where such amendment would not result in the reduction or 35 elimination of a past-due tax liability, as such term is defined in 36 section one hundred seventy-one-v of this chapter. Provided, however, 37 that a person required to collect tax, as defined in section eleven 38 hundred thirty-one of this part, may amend a return within one hundred 39 eighty days of the date such return was due if the past-due liability 40 was self-assessed and reported by such person. 41 (2) Where there is no such past-due tax liability, an amended return 42 that would result in the reduction or elimination of tax due shall be 43 deemed a claim for credit or refund and must be filed within the time 44 required for filing a claim for credit or refund under section eleven 45 hundred thirty-nine of this part and otherwise meet the requirements of 46 such section. 47 (3) Where the commissioner has determined the amount of tax due pursu- 48 ant to paragraph one of subdivision (a) of section eleven hundred thir- 49 ty-eight of this part, an original return may be filed within one 50 hundred eighty days after mailing of notice of such determination. 51 Provided, however, that nothing in this paragraph shall affect anyS. 8309 10 A. 8809 1 penalty or interest that may have accrued for such tax period on account 2 of failure to timely file the original return. 3 (4) An assessment of tax, penalty and interest, including recovery of 4 a previously paid refund, attributable to a change or correction on a 5 return, may be made at any time within three years after such return is 6 filed. 7 § 2. Subdivision (a) of section 1145 of the tax law is amended by 8 adding a new paragraph 8 to read as follows: 9 (8) Notwithstanding any other provision of this article, any person 10 who willfully files or amends a return that contains false information 11 to reduce or eliminate a liability shall be subject to a penalty not to 12 exceed one thousand dollars per return. This penalty shall be in addi- 13 tion to any other penalty provided by law. 14 § 3. The commissioner of taxation and finance shall be required to 15 provide notice to persons required to collect tax of the amendments made 16 by sections one and two of this act no later than September 1, 2024. 17 § 4. This act shall take effect immediately, provided, however, the 18 amendments made by section one of this act shall apply to returns filed 19 or amended for quarterly periods, as described in subdivision (b) of 20 section 1136 of the tax law, commencing on and after December 1, 2024. 21 PART I 22 Section 1. Subdivision jj of section 1115 of the tax law, as amended 23 by section 1 of part M of chapter 59 of the laws of 2021, is amended to 24 read as follows: 25 (jj) Tangible personal property or services otherwise taxable under 26 this article sold to a related person shall not be subject to the taxes 27 imposed by section eleven hundred five of this article or the compensat- 28 ing use tax imposed under section eleven hundred ten of this article 29 where the purchaser can show that the following conditions have been met 30 to the extent they are applicable: (1)(i) the vendor and the purchaser 31 are referenced as either a "covered company" as described in section 32 243.2(f) or a "material entity" as described in section 243.2(l) of the 33 Code of Federal Regulations in a resolution plan that has been submitted 34 to an agency of the United States for the purpose of satisfying subpara- 35 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 36 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 37 successor law, or (ii) the vendor and the purchaser are separate legal 38 entities pursuant to a divestiture directed pursuant to subparagraph 5 39 of paragraph (d) of section one hundred sixty-five of such act or any 40 successor law; (2) the sale would not have occurred between such related 41 entities were it not for such resolution plan or divestiture; and (3) in 42 acquiring such property or services, the vendor did not claim an 43 exemption from the tax imposed by this state or another state based on 44 the vendor's intent to resell such services or property. A person is 45 related to another person for purposes of this subdivision if the person 46 bears a relationship to such person described in section two hundred 47 sixty-seven of the internal revenue code. The exemption provided by this 48 subdivision shall not apply to sales made, services rendered, or uses 49 occurring after June thirtieth, two thousand [twenty-four] twenty-seven, 50 except with respect to sales made, services rendered, or uses occurring 51 pursuant to binding contracts entered into on or before such date; but 52 in no case shall such exemption apply after June thirtieth, two thousand 53 [twenty-seven] thirty. 54 § 2. This act shall take effect immediately.S. 8309 11 A. 8809 1 PART J 2 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 3 section 1115 of the tax law, as amended by section 1 of part R of chap- 4 ter 59 of the laws of 2023, is amended to read as follows: 5 (B) Until May thirty-first, two thousand [twenty-four] twenty-five, 6 the food and drink excluded from the exemption provided by clauses (i), 7 (ii) and (iii) of subparagraph (A) of this paragraph, and bottled water, 8 shall be exempt under this subparagraph: (i) when sold for one dollar 9 and fifty cents or less through any vending machine that accepts coin or 10 currency only; or (ii) when sold for two dollars or less through any 11 vending machine that accepts any form of payment other than coin or 12 currency, whether or not it also accepts coin or currency. 13 § 2. This act shall take effect immediately. 14 PART K 15 Section 1. Subdivision (c) of section 1101 of the tax law, as added 16 by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended 17 by section 2 and paragraph 8 as added by section 3 of part AA of chapter 18 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the 19 laws of 1965, is amended to read as follows: 20 (c) When used in this article for the purposes of the tax imposed 21 under subdivision (e) of section eleven hundred five of this article, 22 the following terms shall mean: 23 (1) Hotel. A building or portion of it which is regularly used and 24 kept open as such for the lodging of guests. The term "hotel" includes 25 an apartment hotel, a motel, boarding house or club, whether or not 26 meals are served. 27 (2) Occupancy. The use or possession, or the right to the use or 28 possession, of any room in a hotel or vacation rental. "Right to the 29 use or possession" includes the rights of a room remarketer as described 30 in paragraph eight of this subdivision. 31 (3) Occupant. A person who, for a consideration, uses, possesses, or 32 has the right to use or possess, any room in a hotel or vacation rental 33 under any lease, concession, permit, right of access, license to use or 34 other agreement, or otherwise. "Right to use or possess" includes the 35 rights of a room remarketer as described in paragraph eight of this 36 subdivision. 37 (4) Operator. Any person operating a hotel or vacation rental. Such 38 term shall include a room remarketer and such room remarketer shall be 39 deemed to operate a hotel, or portion thereof, with respect to which 40 such person has the rights of a room remarketer. 41 (5) Permanent resident. Any occupant of any room or rooms in a hotel 42 or vacation rental for at least ninety consecutive days shall be consid- 43 ered a permanent resident with regard to the period of such occupancy. 44 (6) Rent. The consideration received for occupancy, including any 45 service or other charge or amount required to be paid as a condition for 46 occupancy, valued in money, whether received in money or otherwise and 47 whether received or collected by the vacation rental marketplace provid- 48 er, operator or a room remarketer or another person on behalf of either 49 of them. 50 (7) Room. Any room or rooms of any kind in any part or portion of a 51 hotel or vacation rental, which is available for or let out for any 52 purpose other than a place of assembly.S. 8309 12 A. 8809 1 (8) Room remarketer. A person who reserves, arranges for, conveys, or 2 furnishes occupancy, whether directly or indirectly, to an occupant for 3 rent in a hotel for an amount determined by the room remarketer, direct- 4 ly or indirectly, whether pursuant to a written or other agreement. Such 5 person's ability or authority to reserve, arrange for, convey, or 6 furnish occupancy, directly or indirectly, and to determine rent there- 7 for, shall be the "rights of a room remarketer". A room remarketer is 8 not a permanent resident with respect to a room for which such person 9 has the rights of a room remarketer. 10 (9) Vacation rental. A building or portion of it that is used for the 11 lodging of guests. The term "vacation rental" includes a house, an 12 apartment, a condominium, a cooperative unit, a cabin, a cottage, a 13 bungalow, or a similar furnished living unit, or one or more rooms ther- 14 ein, where sleeping accommodations are provided for the lodging of 15 paying occupants, the typical occupants are transients or travelers, and 16 the relationship between the operator and occupant is not that of a 17 landlord and tenant. It is not necessary that meals are served. A build- 18 ing or portion of a building may qualify as a vacation rental whether or 19 not amenities, including but not limited to daily housekeeping services, 20 concierge services, or linen services, are provided. 21 (10) (i) Vacation rental marketplace provider. A person who, pursuant 22 to an agreement with an operator, facilitates the occupancy of a vaca- 23 tion rental by such operator or operators. A person "facilitates the 24 occupancy of a vacation rental" for purposes of this paragraph when the 25 person meets both of the following conditions: (A) such person provides 26 the forum in which, or by means of which, the sale of the occupancy 27 takes place or the offer of such sale is accepted, including a shop, 28 store, or booth, an internet website, catalog, or similar forum; and (B) 29 such person or an affiliate of such person collects the rent paid by a 30 customer to an operator for the occupancy of a vacation rental, or 31 contracts with a third party to collect such rent. 32 (ii) For the purposes of this article, the term "vacation rental 33 marketplace provider" shall not include a "room remarketer" as defined 34 in paragraph eight of this subdivision. For purposes of this paragraph, 35 persons are affiliated if one person has an ownership interest of more 36 than five percent, whether direct or indirect, in another, or where an 37 ownership interest of more than five percent, whether direct or indi- 38 rect, is held in each of such persons by another person or by a group of 39 other persons that are affiliated persons with respect to each other. 40 § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- 41 ter 3 of the laws of 2004, is amended to read as follows: 42 (a) Imposition. In addition to any other fee or tax imposed by this 43 article or any other law, on and after April first, two thousand five, 44 there is hereby imposed within the territorial limits of a city with a 45 population of a million or more and there shall be paid a unit fee on 46 every occupancy of a unit in a hotel or vacation rental in such city at 47 the rate of one dollar and fifty cents per unit per day, except that 48 such unit fee shall not be imposed upon (1) occupancy by a permanent 49 resident or (2) where the rent per unit is not more than at the rate of 50 two dollars per day. 51 § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as 52 amended by section 1 of part Q of chapter 59 of the laws of 2012, is 53 amended to read as follows: 54 (1) The rent for every occupancy of a room or rooms in a hotel or 55 vacation rental in this state, except that the tax shall not be imposedS. 8309 13 A. 8809 1 upon (i) a permanent resident, or (ii) where the rent is not more than 2 at the rate of two dollars per day. 3 § 4. Subdivisions 1 and 2 of section 1131 of the tax law, subdivision 4 1 as amended by section 2 of part G of chapter 59 of the laws of 2019 5 and subdivision 2 as added by chapter 93 of the laws of 1965, are 6 amended to read as follows: 7 (1) "Persons required to collect tax" or "person required to collect 8 any tax imposed by this article" shall include: every vendor of tangible 9 personal property or services; every recipient of amusement charges; 10 every operator of a hotel or vacation rental; every vacation rental 11 marketplace provider with respect to the rent for every occupancy of a 12 vacation rental it facilitates as described in paragraph ten of subdivi- 13 sion (c) of section eleven hundred one of this article; and every 14 marketplace provider with respect to sales of tangible personal property 15 it facilitates as described in paragraph one of subdivision (e) of 16 section eleven hundred one of this article. Said terms shall also 17 include any officer, director or employee of a corporation or of a 18 dissolved corporation, any employee of a partnership, any employee or 19 manager of a limited liability company, or any employee of an individual 20 proprietorship who as such officer, director, employee or manager is 21 under a duty to act for such corporation, partnership, limited liability 22 company or individual proprietorship in complying with any requirement 23 of this article, or has so acted; and any member of a partnership or 24 limited liability company. Provided, however, that any person who is a 25 vendor solely by reason of clause (D) or (E) of subparagraph (i) of 26 paragraph [(8)] eight of subdivision (b) of section eleven hundred one 27 of this article shall not be a "person required to collect any tax 28 imposed by this article" until twenty days after the date by which such 29 person is required to file a certificate of registration pursuant to 30 section eleven hundred thirty-four of this part. Such terms shall not 31 include an operator of a vacation rental who rents out the operator's 32 own property for three days or fewer in a calendar year and does not use 33 a vacation rental marketplace provider to facilitate such rental. 34 (2) "Customer" shall include: every purchaser of tangible personal 35 property or services; every patron paying or liable for the payment of 36 any amusement charge; and every occupant of a room or rooms in a hotel 37 or vacation rental. 38 § 5. Section 1132 of the tax law is amended by adding a new subdivi- 39 sion (m) to read as follows: 40 (m)(l) A vacation rental marketplace provider with respect to a sale 41 for every occupancy of a vacation rental it facilitates: (A) shall have 42 all the obligations and rights of a vendor under this article and arti- 43 cle twenty-nine of this chapter and under any regulations adopted pursu- 44 ant thereto, including, but not limited to, the duty to obtain a certif- 45 icate of authority, to collect tax, file returns, remit tax, and the 46 right to accept a certificate or other documentation from a customer 47 substantiating an exemption or exclusion from tax, the right to receive 48 the refund authorized by subdivision (e) of this section and the credit 49 allowed by subdivision (f) of section eleven hundred thirty-seven of 50 this part subject to the provisions of such subdivisions; and (B) shall 51 keep such records and information and cooperate with the commissioner to 52 ensure the proper collection and remittance of tax imposed, collected or 53 required to be collected under this article and article twenty-nine of 54 this chapter. 55 (2) An operator is relieved from the duty to collect tax in regard to 56 a particular rent for the occupancy of a vacation rental subject to taxS. 8309 14 A. 8809 1 under subdivision (e) of section eleven hundred five of this article and 2 shall not include the rent from such occupancy in its taxable sales for 3 purposes of section eleven hundred thirty-six of this part if, in regard 4 to such occupancy: (A) the operator of the vacation rental can show that 5 such occupancy was facilitated by a vacation rental marketplace provider 6 from whom such operator has received in good faith a properly completed 7 certificate of collection in a form prescribed by the commissioner, 8 certifying that the vacation rental marketplace provider is registered 9 to collect sales tax and will collect sales tax on all taxable sales of 10 occupancy of a vacation rental by the operator facilitated by the vaca- 11 tion rental marketplace provider, and with such other information as the 12 commissioner may prescribe; and (B) any failure of the vacation rental 13 marketplace provider to collect the proper amount of tax in regard to 14 such sale was not the result of such operator providing the vacation 15 rental marketplace provider with incorrect information. This provision 16 shall be administered in a manner consistent with subparagraph (i) of 17 paragraph one of subdivision (c) of this section as if a certificate of 18 collection were a resale or exemption certificate for purposes of such 19 subparagraph, including with regard to the completeness of such certif- 20 icate of collection and the timing of its acceptance by the operator. 21 Provided that, with regard to any sales of occupancy of a vacation 22 rental by an operator that are facilitated by a vacation rental market- 23 place provider who is affiliated with such operator within the meaning 24 of paragraph ten of subdivision (c) of section eleven hundred one of 25 this article, the operator shall be deemed liable as a person under a 26 duty to act for such vacation rental marketplace provider for purposes 27 of subdivision one of section eleven hundred thirty-one of this part. 28 (3) The commissioner may, at their discretion: (A) develop a standard 29 provision, or approve a provision developed by a vacation rental market- 30 place provider, in which the vacation rental marketplace provider obli- 31 gates itself to collect the tax on behalf of all operators for whom the 32 vacation rental marketplace provider facilitates sales of occupancy of a 33 vacation rental, with respect to all sales that it facilitates for such 34 operators where the rental occurs in the state; and (B) provide by regu- 35 lation or otherwise that the inclusion of such provision in the public- 36 ly-available agreement between the vacation rental marketplace provider 37 and operator will have the same effect as an operator's acceptance of a 38 certificate of collection from such vacation rental marketplace provider 39 under paragraph two of this subdivision. 40 § 6. Section 1133 of the tax law is amended by adding a new subdivi- 41 sion (g) to read as follows: 42 (g) A vacation rental marketplace provider is relieved of liability 43 under this section for failure to collect the correct amount of tax to 44 the extent that the vacation rental marketplace provider can show that 45 the error was due to incorrect or insufficient information given to the 46 vacation rental marketplace provider by the operator. Provided, however, 47 this subdivision shall not apply if the operator and vacation rental 48 marketplace provider are affiliated within the meaning of paragraph ten 49 of subdivision (c) of section eleven hundred one of this article. 50 § 7. Subdivision (a) of section 1134 of the tax law is amended by 51 adding a new paragraph 7 to read as follows: 52 (7) An operator of a vacation rental, as defined in paragraph nine of 53 subdivision (c) of section eleven hundred one of this article, is 54 relieved of the requirement to register in paragraph one of this subdi- 55 vision if its sales of occupancy are wholly facilitated by one or more 56 vacation rental marketplace providers from whom the operator hasS. 8309 15 A. 8809 1 received in good faith a certificate of collection that meets the 2 requirements set forth in paragraph two of subdivision (m) of section 3 eleven hundred thirty-two of this part or the vacation rental market- 4 place provider has included a provision approved by the commissioner in 5 the publicly-available agreement between the vacation rental marketplace 6 provider and the operator as described in subdivision (m) of section 7 eleven hundred thirty-two of this part. 8 § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 9 amended by section 5 of part G of chapter 59 of the laws of 2019, is 10 amended to read as follows: 11 (4) The return of a vendor of tangible personal property or services 12 shall show such vendor's receipts from sales and the number of gallons 13 of any motor fuel or diesel motor fuel sold and also the aggregate value 14 of tangible personal property and services and number of gallons of such 15 fuels sold by the vendor, the use of which is subject to tax under this 16 article, and the amount of tax payable thereon pursuant to the 17 provisions of section eleven hundred thirty-seven of this part. The 18 return of a recipient of amusement charges shall show all such charges 19 and the amount of tax thereon, and the return of an operator required to 20 collect tax on rents shall show all rents received or charged and the 21 amount of tax thereon. The return of a marketplace seller shall exclude 22 the receipts from a sale of tangible personal property facilitated by a 23 marketplace provider if, in regard to such sale: (A) the marketplace 24 seller has timely received in good faith a properly completed certif- 25 icate of collection from the marketplace provider or the marketplace 26 provider has included a provision approved by the commissioner in the 27 publicly-available agreement between the marketplace provider and the 28 marketplace seller as described in subdivision one of section eleven 29 hundred thirty-two of this part, and (B) the information provided by the 30 marketplace seller to the marketplace provider about such tangible 31 personal property is accurate. The return of an operator shall exclude 32 the rent from occupancy of a vacation rental facilitated by a vacation 33 rental marketplace provider if, in regard to such sale: (A) the vacation 34 rental operator has timely received in good faith a properly completed 35 certificate of collection from the vacation rental marketplace provider 36 or the vacation rental marketplace provider has included a provision 37 approved by the commissioner in the publicly-available agreement between 38 the vacation rental marketplace provider and the operator as described 39 in subdivision (m) of section eleven hundred thirty-two of this part, 40 and (B) the information provided by the operator to the vacation rental 41 marketplace provider about such rent and such occupancy is accurate. 42 § 9. Subparagraph (B) of paragraph 3 of subdivision (a) of section 43 1138 of the tax law, as amended by chapter 456 of the laws of 1998, is 44 amended to read as follows: 45 (B) The liability, pursuant to subdivision (a) of section eleven 46 hundred thirty-three of this article, of any officer, director or 47 employee of a corporation or of a dissolved corporation, member or 48 employee of a partnership or employee of an individual proprietorship 49 who as such officer, director, employee or member is under a duty to act 50 for such corporation, partnership or individual proprietorship in 51 complying with any requirement of this article for the tax imposed, 52 collected or required to be collected, or for the tax required to be 53 paid or paid over to the [tax commission] commissioner under this arti- 54 cle, and the amount of such tax liability (whether or not a return is 55 filed under this article, whether or not such return when filed is 56 incorrect or insufficient, or where the tax shown to be due on theS. 8309 16 A. 8809 1 return filed under this article has not been paid or has not been paid 2 in full) shall be determined by the [tax commission] commissioner in the 3 manner provided for in paragraphs one and two of this subdivision. Such 4 determination shall be an assessment of the tax and liability for the 5 tax with respect to such person unless such person, within ninety days 6 after the giving of notice of such determination, shall apply to the 7 division of tax appeals for a hearing. If such determination is identi- 8 cal to or arises out of a previously issued determination of tax of the 9 corporation, dissolved corporation, partnership or individual proprie- 10 torship for which such person is under a duty to act, an application 11 filed with the division of tax appeals on behalf of the corporation, 12 dissolved corporation, partnership or individual proprietorship shall be 13 deemed to include any and all subsequently issued personal determi- 14 nations and a separate application to the division of tax appeals for a 15 hearing shall not be required. The [tax commission] commissioner may, 16 nevertheless, of [its] their own motion, redetermine such determination 17 of tax or liability for tax. Where the [tax commission] commissioner 18 determines or redetermines that the amount of tax claimed to be due from 19 a vendor of tangible personal property or services, a recipient of 20 amusement charges, or an operator of a hotel or vacation rental is erro- 21 neous or excessive in whole or in part, [it] they shall redetermine the 22 amount of tax properly due from any such person as a person required to 23 collect tax with respect to such vendor, recipient, or operator, and if 24 such amount is less than the amount of tax for which such person would 25 have been liable in the absence of such determination or redetermi- 26 nation, [it] they shall reduce such liability accordingly. Furthermore, 27 the [tax commission] commissioner may, of [its] their own motion, abate 28 on behalf of any such person, any part of the tax determined to be erro- 29 neous or excessive whether or not such tax had become finally and irre- 30 vocably fixed with respect to such person but no claim for abatement may 31 be filed by any such person. The provisions of this paragraph shall not 32 be construed to limit in any manner the powers of the attorney general 33 under subdivision (a) of section eleven hundred forty-one of this part 34 or the powers of the [tax commission] commissioner to issue a warrant 35 under subdivision (b) of such section against any person whose liability 36 has become finally and irrevocably fixed. 37 § 10. Section 1142 of the tax law is amended by adding a new subdivi- 38 sion 16 to read as follows: 39 16. To publish on the department's website information regarding vaca- 40 tion rental marketplace providers that have a valid certificate of 41 authority and, if necessary to protect sales tax revenue, provide by 42 regulation or otherwise that a vacation rental operator will be relieved 43 of the requirement to register and the duty to collect tax on the rent 44 for occupancy of a vacation rental facilitated by a vacation rental 45 marketplace provider only if, in addition to the conditions prescribed 46 by paragraph two of subdivision (m) of section eleven hundred thirty-two 47 and paragraph six of subdivision (a) of section eleven hundred thirty- 48 four of this part being met, such vacation rental marketplace provider 49 has a valid certificate of authority at the commencement of the quarter- 50 ly period covered thereby. 51 § 11. Subparagraph (i) of paragraph 3 of subdivision (a) of section 52 1145 of the tax law, as amended by section 48 of part K of chapter 61 of 53 the laws of 2011, is amended to read as follows: 54 (i) Any person required to obtain a certificate of authority under 55 section eleven hundred thirty-four of this part who, without possessing 56 a valid certificate of authority, (A) sells tangible personal propertyS. 8309 17 A. 8809 1 or services subject to tax, receives amusement charges or operates a 2 hotel or vacation rental, (B) purchases or sells tangible personal prop- 3 erty for resale, (C) sells petroleum products, or (D) sells cigarettes 4 shall, in addition to any other penalty imposed by this chapter, be 5 subject to a penalty in an amount not exceeding five hundred dollars for 6 the first day on which such sales or purchases are made, plus an amount 7 not exceeding two hundred dollars for each subsequent day on which such 8 sales or purchases are made, not to exceed ten thousand dollars in the 9 aggregate. 10 § 12. Subparagraph (v) of paragraph 4 of subdivision (a) of section 11 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of 12 the laws of 2016, is amended to read as follows: 13 (v) shall provide that, for purposes of the tax described in subdivi- 14 sion (e) of section eleven hundred five of this chapter, "permanent 15 resident" means any occupant of any room or rooms in a hotel or vacation 16 rental for at least one hundred eighty consecutive days with regard to 17 the period of such occupancy; 18 § 13. Subdivisions (a) and (b) of section 1817 of the tax law, as 19 amended by section 53 of part K of chapter 61 of the laws of 2011, are 20 amended to read as follows: 21 (a) Any person required to obtain a certificate of authority under 22 section eleven hundred thirty-four of this chapter who, without possess- 23 ing a valid certificate of authority, willfully (1) sells tangible 24 personal property or services subject to tax, receives amusement charges 25 or operates a hotel or vacation rental, (2) purchases or sells tangible 26 personal property for resale, or (3) sells petroleum products; and any 27 person who fails to surrender a certificate of authority as required by 28 such article shall be guilty of a misdemeanor. 29 (b) Any person required to obtain a certificate of authority under 30 section eleven hundred thirty-four of this chapter who within five years 31 after a determination by the commissioner, pursuant to such section, to 32 suspend, revoke or refuse to issue a certificate of authority has become 33 final, and without possession of a valid certificate of authority (1) 34 sells tangible personal property or services subject to tax, receives 35 amusement charges or operates a hotel or vacation rental, (2) purchases 36 or sells tangible personal property for resale, or (3) sells petroleum 37 products, shall be guilty of a misdemeanor. It shall be an affirmative 38 defense that such person performed the acts described in this subdivi- 39 sion without knowledge of such determination. Any person who violates a 40 provision of this subdivision, upon conviction, shall be subject to a 41 fine in any amount authorized by this article, but not less than five 42 hundred dollars, in addition to any other penalty provided by law. 43 § 14. This act shall take effect immediately and shall apply to 44 collections of rent by an operator or vacation rental marketplace 45 provider on or after September 1, 2024. 46 PART L 47 Section 1. Subdivision (a) of section 493 of the tax law, as added by 48 chapter 92 of the laws of 2021, is amended to read as follows: 49 (a) There is hereby imposed a tax on adult-use cannabis products sold 50 by a distributor to a person who sells adult-use cannabis products at 51 retail at the [following rates:52(1) cannabis flower at the rate of five-tenths of one cent per milli-53gram of the amount of total THC, as reflected on the product label;S. 8309 18 A. 8809 1(2) concentrated cannabis at the rate of eight-tenths of one cent per2milligram of the amount of total THC, as reflected on the product label;3and4(3) cannabis edible product at the rate of three cents per milligram5of the amount of total THC, as reflected on the product label. This tax6shall accrue at the time of such sale or transfer. Where] rate of nine 7 percent of the amount charged for the sale or transfer of such adult-use 8 cannabis products to such retailer; provided that where a person who 9 distributes adult-use cannabis is licensed under the cannabis law as a 10 microbusiness or registered organization and such person sells adult-use 11 cannabis products at retail, such person shall be liable for the tax, 12 [and] such tax shall accrue at the time of the retail sale, and the 13 amount subject to the tax imposed by this subdivision shall be seventy- 14 five percent of the amount charged by such person for the sale or trans- 15 fer of such products to a retail customer. 16 § 2. Subdivision (a) of section 496-b of the tax law, as added by 17 chapter 92 of the laws of 2021, is amended to read as follows: 18 (a) The provisions of part four of article [twenty-seven] twenty-eight 19 of this chapter shall apply to the taxes imposed by section four hundred 20 ninety-three of this article in the same manner and with the same force 21 and effect as if the language of such article had been incorporated in 22 full into this section and had expressly referred to the tax imposed by 23 this article, except to the extent that any provision of such article is 24 either inconsistent with a provision of this article or is not relevant 25 to this article. 26 § 3. This act shall take effect immediately; provided, however, that 27 section one of this act shall apply to sales of adult-use cannabis 28 products on or after June 1, 2024, and section two of this act shall 29 apply to sales of adult-use cannabis products on or after December 1, 30 2024. 31 PART M 32 Section 1. Paragraph (i) of subdivision 12 of section 102 of the real 33 property tax law, as added by chapter 416 of the laws of 1987, is 34 amended to read as follows: 35 (i) When owned by other than a telephone company as such term is 36 defined in paragraph (d) hereof, all lines, wires, poles, supports and 37 inclosures for electrical conductors upon, above and underground used in 38 connection with the transmission or switching of electromagnetic voice, 39 video and data signals between different entities separated by air, 40 street or other public domain, except that such property shall not 41 include: (A) station connections; (B) fire and surveillance alarm system 42 property; (C) such property used in the transmission of news wire 43 services; and (D) such property primarily or exclusively used in the 44 transmission of news or entertainment radio, television or cable tele- 45 vision signals for immediate, delayed or ultimate exhibition to the 46 public, whether or not a fee is charged therefor. 47 § 2. This act shall take effect immediately. 48 PART N 49 Section 1. Subdivision 1 of section 1102 of the real property tax law, 50 as amended by chapter 532 of the laws of 1994, is amended to read as 51 follows: 52 1. "Charges" or "legal charges" means:S. 8309 19 A. 8809 1 (a) the cost of the mailing or service of notices required or author- 2 ized by this article; 3 (b) the cost of publication of notices required or authorized by this 4 title; 5 (c) the amount of any interest and penalties imposed by law; 6 (d) the cost of recording or filing legal documents required or 7 authorized by this article; [and] 8 (e) the reasonable and necessary cost of any search of the public 9 record required or authorized to satisfy the notice requirements of this 10 article, and [the] other reasonable and necessary expenses [for legal11services of] incurred by a tax district in connection with a proceeding 12 to foreclose a tax lien, including, and without limitation, administra- 13 tive, auction and reasonable attorney fees and/or costs associated with 14 the foreclosure process; provided, that: (i) a charge of up to [one] 15 either two hundred fifty dollars per parcel, or two percent of the sum 16 of the taxes, interest and penalties due on the parcel, whichever is 17 greater, shall be deemed reasonable and necessary to cover the combined 18 costs of such searches and [legal expenses] the other reasonable and 19 necessary costs and expenses delineated in this paragraph, and such an 20 amount may be charged without substantiation, even if salaried employees 21 of the tax district performed [the search or legal] some or all of such 22 services; and (ii) a tax district may charge a greater amount with 23 respect to one or more parcels upon demonstration to the satisfaction of 24 the court having jurisdiction that such greater amount was reasonable 25 and necessary; and 26 (f) the amount owed to the tax district by virtue of a judgment lien, 27 a mortgage lien, or any other lien held by the tax district that is not 28 a delinquent tax lien. 29 Charges shall be deemed a part of the delinquent tax for purposes of 30 redemption. 31 § 2. Subdivision 2 of section 1104 of the real property tax law, as 32 amended by chapter 532 of the laws of 1994, paragraph (iii) as further 33 amended by subdivision (b) of section 1 of part W of chapter 56 of the 34 laws of 2010, is amended to read as follows: 35 2. The provisions of this article shall not be applicable to a county, 36 city or town which: (i) on January first, nineteen hundred ninety-three, 37 was authorized to enforce the collection of delinquent taxes pursuant to 38 a county charter, city charter, administrative code or special law; (ii) 39 adopted a local law, no later than July first, nineteen hundred ninety- 40 four, providing that the collection of taxes in such county, city or 41 town shall continue to be enforced pursuant to such charter, code or 42 special law, as such charter, code or special law may from time to time 43 be amended; and (iii) filed a copy of such local law with the commis- 44 sioner no later than August first, nineteen hundred ninety-four. 45 Provided, however, that notwithstanding any provisions of any general, 46 special or local law to the contrary, if such charter, code or special 47 law does not include provisions allowing for any "surplus" as defined by 48 section eleven hundred ninety-five of this article to be paid to the 49 former owner or other parties whose interests were extinguished by the 50 foreclosure of a delinquent tax lien, then until such charter, code of 51 special law is amended to include such provisions, any claims for 52 surplus within such tax district shall be administered in a manner 53 substantially similar to that prescribed by title six of this article. 54 § 3. Paragraph (d) of subdivision 2 of section 1136 of the real prop- 55 erty tax law, as amended by chapter 532 of the laws of 1994, is amended 56 to read as follows:S. 8309 20 A. 8809 1 (d) In directing any conveyance pursuant to this subdivision, the 2 judgment shall direct the enforcing officer of the tax district to 3 prepare and execute a deed conveying title to the parcel or parcels of 4 real property concerned. Such title shall be full and complete in the 5 absence of an agreement between tax districts as herein provided that it 6 shall be subject to the tax liens of one or more tax districts. Upon the 7 execution of such deed, the grantee shall be seized of an estate in fee 8 simple absolute in such parcel unless the conveyance is expressly made 9 subject to tax liens of a tax district as herein provided, and all 10 persons, including the state, infants, incompetents, absentees and non- 11 residents, who may have had any right, title, interest, claim, lien or 12 equity of redemption in or upon such parcel, shall be barred and forever 13 foreclosed of all such right, title, interest, claim, lien or equity of 14 redemption. Nothing contained herein shall be construed to preclude any 15 such person from filing a claim pursuant to title six of this article 16 for a share of any surplus that may be attributable to the sale of such 17 parcel. 18 § 4. Subdivision 3 of section 1136 of the real property tax law, as 19 amended by chapter 532 of the laws of 1994, is amended to read as 20 follows: 21 3. When no answer has been interposed. (a) The court shall make a 22 final judgment awarding to such tax district the possession of any 23 parcel of real property described in the petition of foreclosure not 24 redeemed as provided in this title and as to which no answer is inter- 25 posed as provided herein. In addition thereto such judgment shall 26 contain a direction to the enforcing officer of the tax district to 27 prepare, execute and cause to be recorded a deed conveying to such tax 28 district full and complete title to such parcel. 29 (b) Alternatively, at the request of the enforcing officer, the court 30 may make a final judgment authorizing the enforcing officer to prepare, 31 execute and cause to be recorded a deed conveying full and complete 32 title to such parcel directly to a party other than the tax district, 33 without the tax district taking title thereto. 34 (c) Upon the execution of such deed, the tax district, or the grantee 35 as the case may be, shall be seized of an estate in fee simple absolute 36 in such parcel and all persons, including the state, infants, incompe- 37 tents, absentees and non-residents who may have had any right, title, 38 interest, claim, lien or equity of redemption in or upon such parcel 39 shall be barred and forever foreclosed of all such right, title, inter- 40 est, claim, lien or equity of redemption. Nothing contained herein 41 shall be construed to preclude any such person from filing a claim 42 pursuant to title six of this article for a share of any surplus that 43 may be attributable to the sale of such parcel. 44 § 5. Section 1136 of the real property tax law is amended by adding a 45 new subdivision 4 to read as follows: 46 4. (a) Notwithstanding any other provision of law to the contrary, 47 when a parcel is subject to a judgment of foreclosure issued pursuant to 48 this section but has not yet been conveyed to a third party, the tax 49 district may, at its discretion, convey title to the parcel back to the 50 former owner or owners, or to the successor or successors in interest if 51 any, upon payment of the taxes, penalties, interest and other lawful 52 charges owed to the tax district, subject to the provisions of paragraph 53 (b) of this subdivision. 54 (b) If immediately prior to the issuance of the judgment of foreclo- 55 sure, any other person had any right, title, interest, claim, lien or 56 equity of redemption in or upon such parcel, the deed conveying theS. 8309 21 A. 8809 1 parcel back to the former owner or owners, or to their successor or 2 successors in interest, shall state that the conveyance shall become 3 subject to the right, title, interest, claim, lien or equity of redemp- 4 tion of any other person that had been extinguished by the judgment of 5 foreclosure, once such right, title, interest, claim, lien or equity of 6 redemption has been reinstated nunc pro tunc pursuant to the provisions 7 of this paragraph. Upon the execution of such deed, the tax district 8 shall cause a copy thereof to be filed with the court, which shall 9 direct the reinstatement of any such right, title, interest, claim, lien 10 or equity of redemption in such parcel nunc pro tunc. 11 § 6. Section 1166 of the real property tax law, as amended by chapter 12 532 of the laws of 1994, subdivision 1 as amended by chapter 500 of the 13 laws of 2015, is amended to read as follows: 14 § 1166. Real property acquired by tax district; right of sale. 1. 15 Whenever any tax district shall become vested with the title to real 16 property, and whenever an enforcing officer shall have been authorized 17 to sell and convey real property directly to another party, by virtue of 18 a foreclosure proceeding brought pursuant to the provisions of this 19 article, such tax district or enforcing officer is hereby authorized to 20 sell and convey [the] such real property [so acquired], which shall 21 include any and all gas, oil or mineral rights associated with such real 22 property, either with or without advertising for bids, notwithstanding 23 the provisions of any general, special or local law. 24 2. No such sale shall be effective unless and until such sale shall 25 have been approved and confirmed by a majority vote of the governing 26 body of the tax district, except that no such approval shall be required 27 when the property is sold at public auction to the highest bidder. 28 3. The provisions of title six of this article shall govern the 29 distribution of any surplus attributable to such sales. 30 § 7. Article 11 of the real property tax law is amended by adding a 31 new title 6 to read as follows: 32 TITLE 6 33 DISTRIBUTION OF SURPLUS 34 Section 1195. Definitions. 35 1196. Determination of existence and amount of surplus. 36 1197. Claims for surplus. 37 § 1195. Definitions. In addition to the definitions set forth in 38 section eleven hundred two of this article, for purposes of this title: 39 1. "Public sale" means a sale resulting from a public auction 40 conducted in accordance with the provisions of section two hundred thir- 41 ty-one of the real property actions and proceedings law. 42 2. "Surplus" means the net gain, if any, realized by the tax district 43 upon the sale of tax-foreclosed property, as determined in the manner 44 set forth in section eleven hundred ninety-six of this article. Where 45 no such gain was realized, no surplus shall be attributable to that 46 sale. 47 3. "Tax-foreclosed property" means a parcel as to which a judgment of 48 foreclosure has been issued pursuant to section eleven hundred thirty- 49 six of this article. 50 § 1196. Determination of existence and amount of surplus. 1. (a) 51 Within forty-five days after the sale of tax-foreclosed property, the 52 enforcing officer shall determine whether a surplus is attributable to 53 such sale and if so, the amount thereof. Such determination shall be 54 made by ascertaining the sum of the total amount of taxes due plus 55 interest, penalties and other charges as defined by section elevenS. 8309 22 A. 8809 1 hundred two of this article, and subtracting such sum from whichever of 2 the following is applicable: 3 (i) where the sale was a public sale, the amount paid for the proper- 4 ty; 5 (ii) where the sale was not a public sale, the full value of the prop- 6 erty as shown on the most recent tax roll, or if available, an estimate 7 of the property's value developed by the enforcing officer. Provided, 8 that the enforcing officer may develop such an estimate only where it 9 has been demonstrated to the satisfaction of such officer that the prop- 10 erty is worth significantly more or less than the full value shown on 11 the most recent tax roll. Nothing contained herein shall be construed 12 to impose any obligation upon the enforcing officer to develop estimated 13 values for this purpose. 14 (b) For purposes of this subdivision, where the enforcing officer has 15 been notified that the tax district intends to retain tax-foreclosed 16 property for a public use, the property shall be deemed to have been 17 sold on the date that the enforcing officer was so notified, and the 18 enforcing officer shall determine the existence and amount of a surplus 19 relative to such property in the manner provided by subparagraph (ii) of 20 paragraph (a) of this subdivision. 21 2. (a) If the enforcing officer determines that no surplus is attrib- 22 utable to the sale, such enforcing officer shall submit a report to the 23 court describing the circumstances of the sale, stating that no surplus 24 was attributable to the sale and demonstrating how the enforcing officer 25 reached that conclusion. 26 (b) If the enforcing officer determines that a surplus is attributable 27 to the sale, such enforcing officer shall submit a report to the court 28 describing the circumstances of the sale, stating that a surplus was 29 attributable to the sale, and demonstrating how the amount of the 30 surplus was determined. Such surplus shall be paid to the court there- 31 with. Within ten days of submitting such report, the enforcing officer 32 shall notify the former property owner that a surplus was attributable 33 to the sale of such property, that such surplus has been paid into 34 court, and that the court will notify the interested parties of the 35 procedure to be followed in order to make a claim for a share of the 36 surplus. 37 (c) Where the enforcing officer's determination of surplus is based 38 upon such enforcing officer's estimate of the property's value, the 39 enforcing officer's report to the court shall set forth an explanation 40 of how this estimate was made, including the evidence upon which it was 41 based. 42 3. Upon approval by the court of the enforcing officer's report, the 43 tax district shall have no further responsibilities in relation to the 44 parcel or any surplus attributable thereto, subject to the extent the 45 court directs otherwise pursuant to section eleven hundred ninety-seven 46 of this title. 47 § 1197. Claims for surplus. 1. Any person who had any right, title, 48 interest, claim, lien or equity of redemption in or upon a parcel imme- 49 diately prior to the issuance of the judgment of foreclosure may file a 50 claim with the court having jurisdiction for a share of any surplus 51 resulting from the sale of such property. Such claims shall be adminis- 52 tered and adjudicated, and such surplus shall be distributed, in the 53 same manner as in an action to foreclose a mortgage pursuant to article 54 thirteen of the real property actions and proceedings law, subject to 55 the provisions of this section.S. 8309 23 A. 8809 1 2. (a) Where the property was sold by a public sale, the amount paid 2 for the property shall be accepted as the full value of the property. 3 No party may maintain a claim for surplus or any other claim or action 4 against the tax district on the basis that the amount paid for the prop- 5 erty did not fairly represent the property's value. 6 (b) Where the property was sold by other than a public sale, a claim- 7 ant may make a motion, upon notice to the enforcing officer, for the 8 surplus to be recalculated on the basis that the property's full value 9 on the date of the sale was substantially higher than the value used to 10 measure the surplus pursuant to subparagraph (ii) of paragraph (a) of 11 subdivision one of section eleven hundred ninety-six of this title. If 12 the court or its referee finds that a preponderance of the evidence 13 supports the claimant's position, the court may direct the enforcing 14 officer to recalculate the surplus based upon the property's value as 15 determined by the court or referee. The court may further direct the 16 enforcing officer to pay the difference into court to be distributed as 17 required by this section. 18 3. Where the court has appointed a referee to preside over the 19 proceedings pursuant to subdivision two of section thirteen hundred 20 sixty-one of the real property actions and proceedings law, it shall not 21 be necessary for such referee to make a report of such proceedings; nor 22 shall it be necessary for the court to confirm by order or otherwise 23 such proceedings. 24 4. At the conclusion of such proceedings, any surplus funds that have 25 not been claimed shall be deemed abandoned but shall be paid to the tax 26 district, not to the state comptroller, and shall be used by the tax 27 district to reduce its tax levy. 28 5. Notwithstanding any provision of this section or any other law to 29 the contrary, in the case of abandoned real property, no person other 30 than the tax district shall have any right to any surplus attributable 31 thereto. For purposes of this title, real property shall be deemed 32 abandoned if it: 33 (a) has been included on a local municipal roll, registry or list of 34 vacant and abandoned residential property pursuant to section eleven 35 hundred eleven-a of this article, or 36 (b) has been certified as abandoned commercial or industrial real 37 property pursuant to article nineteen-A of the real property actions and 38 proceedings law, or 39 (c) has been included on the statewide registry of vacant and aban- 40 doned property pursuant to section thirteen hundred ten of the real 41 property actions and proceedings law. 42 6. To the extent the provisions of article thirteen of the real prop- 43 erty actions and proceedings law are inconsistent with the provisions of 44 this article, the provisions of this article shall govern. 45 § 8. Severability clause. If any clause, sentence, paragraph, subdivi- 46 sion, section or subpart contained in any part of this act shall be 47 adjudged by any court of competent jurisdiction to be invalid, such 48 judgment shall not affect, impair, or invalidate the remainder thereof, 49 but shall be confined in its operation to the clause, sentence, para- 50 graph, subdivision, section or subpart contained in any part thereof 51 directly involved in the controversy in which such judgment shall have 52 been rendered. It is hereby declared to be the intent of the legislature 53 that this act would have been enacted even if such invalid provisions 54 had not been included herein.S. 8309 24 A. 8809 1 § 9. This act shall take effect immediately and shall be deemed to 2 have been in full force and effect on and after May 25, 2023, provided 3 that: 4 1. In a tax district that is subject to the provisions of title 6 of 5 article 11 of the real property tax law as added by section seven of 6 this act, where a tax-foreclosed property has been sold on or after May 7 25, 2023 and prior to the effective date of this act, the enforcing 8 officer of the tax district shall have six months from the effective 9 date of this act to submit to the court the report required by section 10 1196 of the real property tax law as added by section seven of this act 11 regarding the existence and amount of surplus and to pay such surplus to 12 the court. 13 2. Whether or not a tax district is subject to the provisions of title 14 6 of article 11 of the real property tax law as added by section seven 15 of this act, where a tax-foreclosed property was sold prior to May 25, 16 2023, a claim for surplus attributable to such sale may be maintained if 17 and only if a proceeding to compel such tax district to distribute such 18 surplus to the petitioner or petitioners had been initiated pursuant to 19 subdivision 1 of section 7803 of the civil practice law and rules, such 20 proceeding was commenced in a timely manner as provided by section 217 21 of such chapter, and such proceeding was still active on the effective 22 date of this act. 23 PART O 24 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 25 wagering and breeding law, as amended by section 1 of part OO of chapter 26 56 of the laws of 2023, is amended to read as follows: 27 2. a. Notwithstanding any other provision of law or regulation to the 28 contrary, from April nineteenth, two thousand twenty-one to March thir- 29 ty-first, two thousand twenty-two, twenty-three percent of the funds, 30 not to exceed two and one-half million dollars, in the Catskill off- 31 track betting corporation's capital acquisition fund and twenty-three 32 percent of the funds, not to exceed four hundred forty thousand dollars, 33 in the Capital off-track betting corporation's capital acquisition fund 34 established pursuant to this section shall also be available to such 35 off-track betting corporation for the purposes of statutory obligations, 36 payroll, and expenditures necessary to accept authorized wagers. 37 b. Notwithstanding any other provision of law or regulation to the 38 contrary, from April first, two thousand twenty-two to March thirty- 39 first, two thousand twenty-three, twenty-three percent of the funds, not 40 to exceed two and one-half million dollars, in the Catskill off-track 41 betting corporation's capital acquisition fund established pursuant to 42 this section, and twenty-three percent of the funds, not to exceed four 43 hundred forty thousand dollars, in the Capital off-track betting corpo- 44 ration's capital acquisition fund established pursuant to this section, 45 shall be available to such off-track betting corporations for the 46 purposes of statutory obligations, payroll, and expenditures necessary 47 to accept authorized wagers. 48 c. Notwithstanding any other provision of law or regulation to the 49 contrary, from April first, two thousand twenty-three to March thirty- 50 first, two thousand twenty-four, twenty-three percent of the funds, not 51 to exceed two and one-half million dollars, in the Catskill off-track 52 betting corporation's capital acquisition fund established pursuant to 53 this section, and one million dollars in the Capital off-track betting 54 corporation's capital acquisition fund established pursuant to thisS. 8309 25 A. 8809 1 section, shall be available to such off-track betting corporation for 2 the purposes of expenditures necessary to accept authorized wagers; past 3 due statutory obligations to New York licensed or franchised racing 4 corporations or associations; past due contractual obligations due to 5 other racing associations or organizations for the costs of acquiring a 6 simulcast signal; past due statutory payment obligations due to the New 7 York state thoroughbred breeding and development fund corporation, agri- 8 culture and New York state horse breeding development fund, and the 9 Harry M. Zweig memorial fund for equine research; and past due obli- 10 gations due the state. 11 d. Notwithstanding any other provision of law or regulation to the 12 contrary, from April first, two thousand twenty-four to March thirty- 13 first, two thousand twenty-five, one million dollars in the Capital 14 off-track betting corporation's capital acquisition fund established 15 pursuant to this section, shall be available to such off-track betting 16 corporation for the purposes of expenditures necessary to accept author- 17 ized wagers; past due statutory obligations to New York licensed or 18 franchised racing corporations or associations; past due contractual 19 obligations due to other racing associations or organizations for the 20 costs of acquiring a simulcast signal; past due statutory payment obli- 21 gations due to the New York state thoroughbred breeding and development 22 fund corporation, agriculture and New York state horse breeding develop- 23 ment fund, and the Harry M. Zweig memorial fund for equine research; and 24 past due obligations due the state. 25 e. Prior to a corporation being able to utilize the funds authorized 26 by paragraph c or d of this subdivision, the corporation must attest 27 that the surcharge monies from section five hundred thirty-two of this 28 chapter are being held separate and apart from any amounts otherwise 29 authorized to be retained from pari-mutuel pools and all surcharge 30 monies have been and will continue to be paid to the localities as 31 prescribed in law. Once this condition is satisfied, the corporation 32 must submit an expenditure plan to the gaming commission for review. 33 Such plan shall include the corporation's outstanding liabilities, 34 projected revenue for the upcoming year, a detailed explanation of how 35 the funds will be used, and any other information necessary to detail 36 such plan as determined by the commission. Upon review, the commission 37 shall make a determination as to whether the requirements of this para- 38 graph have been satisfied and notify the corporation of expenditure plan 39 approval. In the event the commission determines the requirements of 40 this paragraph have not been satisfied, the commission shall notify the 41 corporation of all deficiencies necessary for approval. As a condition 42 of such expenditure plan approval, the corporation shall provide a 43 report to the commission no later than [October first, two thousand44twenty-three] the last day of the calendar year for which the funds are 45 requested, which shall include an accounting of the use of such funds. 46 At such time, the commission may cause an independent audit to be 47 conducted of the corporation's books to ensure that all moneys were 48 spent as indicated in such approved plan. The audit shall be paid for 49 from money in the fund established by this section. If the audit deter- 50 mines that a corporation used the money authorized under this section 51 for a purpose other than one listed in their expenditure plan, then the 52 corporation shall reimburse the capital acquisition fund for the unau- 53 thorized amount. 54 § 2. This act shall take effect immediately. 55 PART PS. 8309 26 A. 8809 1 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 2 racing, pari-mutuel wagering and breeding law, as amended by section 1 3 of part BB of chapter 59 of the laws of 2023, is amended to read as 4 follows: 5 (a) Any racing association or corporation or regional off-track 6 betting corporation, authorized to conduct pari-mutuel wagering under 7 this chapter, desiring to display the simulcast of horse races on which 8 pari-mutuel betting shall be permitted in the manner and subject to the 9 conditions provided for in this article may apply to the commission for 10 a license so to do. Applications for licenses shall be in such form as 11 may be prescribed by the commission and shall contain such information 12 or other material or evidence as the commission may require. No license 13 shall be issued by the commission authorizing the simulcast transmission 14 of thoroughbred races from a track located in Suffolk county. The fee 15 for such licenses shall be five hundred dollars per simulcast facility 16 and for account wagering licensees that do not operate either a simul- 17 cast facility that is open to the public within the state of New York or 18 a licensed racetrack within the state, twenty thousand dollars per year 19 payable by the licensee to the commission for deposit into the general 20 fund. Except as provided in this section, the commission shall not 21 approve any application to conduct simulcasting into individual or group 22 residences, homes or other areas for the purposes of or in connection 23 with pari-mutuel wagering. The commission may approve simulcasting into 24 residences, homes or other areas to be conducted jointly by one or more 25 regional off-track betting corporations and one or more of the follow- 26 ing: a franchised corporation, thoroughbred racing corporation or a 27 harness racing corporation or association; provided (i) the simulcasting 28 consists only of those races on which pari-mutuel betting is authorized 29 by this chapter at one or more simulcast facilities for each of the 30 contracting off-track betting corporations which shall include wagers 31 made in accordance with section one thousand fifteen, one thousand 32 sixteen and one thousand seventeen of this article; provided further 33 that the contract provisions or other simulcast arrangements for such 34 simulcast facility shall be no less favorable than those in effect on 35 January first, two thousand five; (ii) that each off-track betting 36 corporation having within its geographic boundaries such residences, 37 homes or other areas technically capable of receiving the simulcast 38 signal shall be a contracting party; (iii) the distribution of revenues 39 shall be subject to contractual agreement of the parties except that 40 statutory payments to non-contracting parties, if any, may not be 41 reduced; provided, however, that nothing herein to the contrary shall 42 prevent a track from televising its races on an irregular basis primari- 43 ly for promotional or marketing purposes as found by the commission. For 44 purposes of this paragraph, the provisions of section one thousand thir- 45 teen of this article shall not apply. Any agreement authorizing an 46 in-home simulcasting experiment commencing prior to May fifteenth, nine- 47 teen hundred ninety-five, may, and all its terms, be extended until June 48 thirtieth, two thousand [twenty-four] twenty-five; provided, however, 49 that any party to such agreement may elect to terminate such agreement 50 upon conveying written notice to all other parties of such agreement at 51 least forty-five days prior to the effective date of the termination, 52 via registered mail. Any party to an agreement receiving such notice of 53 an intent to terminate, may request the commission to mediate between 54 the parties new terms and conditions in a replacement agreement between 55 the parties as will permit continuation of an in-home experiment until 56 June thirtieth, two thousand [twenty-four] twenty-five; and (iv) noS. 8309 27 A. 8809 1 in-home simulcasting in the thoroughbred special betting district shall 2 occur without the approval of the regional thoroughbred track. 3 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 4 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 5 section 2 of part BB of chapter 59 of the laws of 2023, is amended to 6 read as follows: 7 (iii) Of the sums retained by a receiving track located in Westchester 8 county on races received from a franchised corporation, for the period 9 commencing January first, two thousand eight and continuing through June 10 thirtieth, two thousand [twenty-four] twenty-five, the amount used 11 exclusively for purses to be awarded at races conducted by such receiv- 12 ing track shall be computed as follows: of the sums so retained, two and 13 one-half percent of the total pools. Such amount shall be increased or 14 decreased in the amount of fifty percent of the difference in total 15 commissions determined by comparing the total commissions available 16 after July twenty-first, nineteen hundred ninety-five to the total 17 commissions that would have been available to such track prior to July 18 twenty-first, nineteen hundred ninety-five. 19 § 3. The opening paragraph of subdivision 1 of section 1014 of the 20 racing, pari-mutuel wagering and breeding law, as amended by section 3 21 of part BB of chapter 59 of the laws of 2023, is amended to read as 22 follows: 23 The provisions of this section shall govern the simulcasting of races 24 conducted at thoroughbred tracks located in another state or country on 25 any day during which a franchised corporation is conducting a race meet- 26 ing in Saratoga county at Saratoga thoroughbred racetrack until June 27 thirtieth, two thousand [twenty-four] twenty-five and on any day regard- 28 less of whether or not a franchised corporation is conducting a race 29 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 30 thirtieth, two thousand [twenty-four] twenty-five. On any day on which a 31 franchised corporation has not scheduled a racing program but a 32 thoroughbred racing corporation located within the state is conducting 33 racing, each off-track betting corporation branch office and each simul- 34 casting facility licensed in accordance with section one thousand seven 35 (that has entered into a written agreement with such facility's repre- 36 sentative horsemen's organization, as approved by the commission), one 37 thousand eight, or one thousand nine of this article shall be authorized 38 to accept wagers and display the live simulcast signal from thoroughbred 39 tracks located in another state or foreign country subject to the 40 following provisions: 41 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 42 and breeding law, as amended by section 4 of part BB of chapter 59 of 43 the laws of 2023, is amended to read as follows: 44 1. The provisions of this section shall govern the simulcasting of 45 races conducted at harness tracks located in another state or country 46 during the period July first, nineteen hundred ninety-four through June 47 thirtieth, two thousand [twenty-four] twenty-five. This section shall 48 supersede all inconsistent provisions of this chapter. 49 § 5. The opening paragraph of subdivision 1 of section 1016 of the 50 racing, pari-mutuel wagering and breeding law, as amended by section 5 51 of part BB of chapter 59 of the laws of 2023, is amended to read as 52 follows: 53 The provisions of this section shall govern the simulcasting of races 54 conducted at thoroughbred tracks located in another state or country on 55 any day during which a franchised corporation is not conducting a race 56 meeting in Saratoga county at Saratoga thoroughbred racetrack until JuneS. 8309 28 A. 8809 1 thirtieth, two thousand [twenty-four] twenty-five. Every off-track 2 betting corporation branch office and every simulcasting facility 3 licensed in accordance with section one thousand seven that have entered 4 into a written agreement with such facility's representative horsemen's 5 organization as approved by the commission, one thousand eight or one 6 thousand nine of this article shall be authorized to accept wagers and 7 display the live full-card simulcast signal of thoroughbred tracks 8 (which may include quarter horse or mixed meetings provided that all 9 such wagering on such races shall be construed to be thoroughbred races) 10 located in another state or foreign country, subject to the following 11 provisions; provided, however, no such written agreement shall be 12 required of a franchised corporation licensed in accordance with section 13 one thousand seven of this article: 14 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 15 wagering and breeding law, as amended by section 6 of part BB of chapter 16 59 of the laws of 2023, is amended to read as follows: 17 Notwithstanding any other provision of this chapter, for the period 18 July twenty-fifth, two thousand one through September eighth, two thou- 19 sand [twenty-three] twenty-four, when a franchised corporation is 20 conducting a race meeting within the state at Saratoga Race Course, 21 every off-track betting corporation branch office and every simulcasting 22 facility licensed in accordance with section one thousand seven (that 23 has entered into a written agreement with such facility's representative 24 horsemen's organization as approved by the commission), one thousand 25 eight or one thousand nine of this article shall be authorized to accept 26 wagers and display the live simulcast signal from thoroughbred tracks 27 located in another state, provided that such facility shall accept 28 wagers on races run at all in-state thoroughbred tracks which are 29 conducting racing programs subject to the following provisions; 30 provided, however, no such written agreement shall be required of a 31 franchised corporation licensed in accordance with section one thousand 32 seven of this article. 33 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 34 racing, pari-mutuel wagering and breeding law and other laws relating to 35 simulcasting, as amended by section 7 of part BB of chapter 59 of the 36 laws of 2023, is amended to read as follows: 37 § 32. This act shall take effect immediately and the pari-mutuel tax 38 reductions in section six of this act shall expire and be deemed 39 repealed on July 1, [2024] 2025; provided, however, that nothing 40 contained herein shall be deemed to affect the application, qualifica- 41 tion, expiration, or repeal of any provision of law amended by any 42 section of this act, and such provisions shall be applied or qualified 43 or shall expire or be deemed repealed in the same manner, to the same 44 extent and on the same date as the case may be as otherwise provided by 45 law; provided further, however, that sections twenty-three and twenty- 46 five of this act shall remain in full force and effect only until May 1, 47 1997 and at such time shall be deemed to be repealed. 48 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 49 racing, pari-mutuel wagering and breeding law and other laws relating to 50 simulcasting and the imposition of certain taxes, as amended by section 51 8 of part BB of chapter 59 of the laws of 2023, is amended to read as 52 follows: 53 § 54. This act shall take effect immediately; provided, however, 54 sections three through twelve of this act shall take effect on January 55 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 56 ing law, as added by section thirty-eight of this act, shall expire andS. 8309 29 A. 8809 1 be deemed repealed on July 1, [2024] 2025; and section eighteen of this 2 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 3 two of this act shall take effect as of the same date as chapter 772 of 4 the laws of 1989 took effect. 5 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 6 pari-mutuel wagering and breeding law, as amended by section 9 of part 7 BB of chapter 59 of the laws of 2023, is amended to read as follows: 8 (a) The franchised corporation authorized under this chapter to 9 conduct pari-mutuel betting at a race meeting or races run thereat shall 10 distribute all sums deposited in any pari-mutuel pool to the holders of 11 winning tickets therein, provided such tickets are presented for payment 12 before April first of the year following the year of their purchase, 13 less an amount that shall be established and retained by such franchised 14 corporation of between twelve to seventeen percent of the total deposits 15 in pools resulting from on-track regular bets, and fourteen to twenty- 16 one percent of the total deposits in pools resulting from on-track 17 multiple bets and fifteen to twenty-five percent of the total deposits 18 in pools resulting from on-track exotic bets and fifteen to thirty-six 19 percent of the total deposits in pools resulting from on-track super 20 exotic bets, plus the breaks. The retention rate to be established is 21 subject to the prior approval of the commission. 22 Such rate may not be changed more than once per calendar quarter to be 23 effective on the first day of the calendar quarter. "Exotic bets" and 24 "multiple bets" shall have the meanings set forth in section five 25 hundred nineteen of this chapter. "Super exotic bets" shall have the 26 meaning set forth in section three hundred one of this chapter. For 27 purposes of this section, a "pick six bet" shall mean a single bet or 28 wager on the outcomes of six races. The breaks are hereby defined as the 29 odd cents over any multiple of five for payoffs greater than one dollar 30 five cents but less than five dollars, over any multiple of ten for 31 payoffs greater than five dollars but less than twenty-five dollars, 32 over any multiple of twenty-five for payoffs greater than twenty-five 33 dollars but less than two hundred fifty dollars, or over any multiple of 34 fifty for payoffs over two hundred fifty dollars. Out of the amount so 35 retained there shall be paid by such franchised corporation to the 36 commissioner of taxation and finance, as a reasonable tax by the state 37 for the privilege of conducting pari-mutuel betting on the races run at 38 the race meetings held by such franchised corporation, the following 39 percentages of the total pool for regular and multiple bets five percent 40 of regular bets and four percent of multiple bets plus twenty percent of 41 the breaks; for exotic wagers seven and one-half percent plus twenty 42 percent of the breaks, and for super exotic bets seven and one-half 43 percent plus fifty percent of the breaks. 44 For the period April first, two thousand one through December thirty- 45 first, two thousand [twenty-four] twenty-five, such tax on all wagers 46 shall be one and six-tenths percent, plus, in each such period, twenty 47 percent of the breaks. Payment to the New York state thoroughbred breed- 48 ing and development fund by such franchised corporation shall be one- 49 half of one percent of total daily on-track pari-mutuel pools resulting 50 from regular, multiple and exotic bets and three percent of super exotic 51 bets and for the period April first, two thousand one through December 52 thirty-first, two thousand [twenty-four] twenty-five, such payment shall 53 be seven-tenths of one percent of regular, multiple and exotic pools. 54 § 10. This act shall take effect immediately. 55 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 56 sion, section or part of this act shall be adjudged by any court ofS. 8309 30 A. 8809 1 competent jurisdiction to be invalid, such judgment shall not affect, 2 impair, or invalidate the remainder thereof, but shall be confined in 3 its operation to the clause, sentence, paragraph, subdivision, section 4 or part thereof directly involved in the controversy in which such judg- 5 ment shall have been rendered. It is hereby declared to be the intent of 6 the legislature that this act would have been enacted even if such 7 invalid provisions had not been included herein. 8 § 3. This act shall take effect immediately provided, however, that 9 the applicable effective date of Parts A through P of this act shall be 10 as specifically set forth in the last section of such Parts.
