Bill Text: NY A08809 | 2023-2024 | General Assembly | Amended
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-Amended.html
STATE OF NEW YORK ________________________________________________________________________ S. 8309--B A. 8809--B 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law and the administrative code of the city of New York, in relation to 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 relat- ing to certain transactions and related information and relating to the voluntary compliance initiative, in relation to extending the effectiveness 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 part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness of certain provisions relating to mandatory electronic filing of tax documents (Part F); to amend part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, allowing the department of taxa- tion and finance to use electronic communication means to furnish tax notices and other documents, mandatory electronic filing of tax docu- ments, debit cards issued for tax refunds, improving sales tax compli- ance, in relation to extending the provisions thereof (Part G); to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-04-4S. 8309--B 2 A. 8809--B 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 sold to a related person (Part I); to amend the tax law, in relation to extending the sales tax exemption for certain sales made through vending machines (Part J); intentionally omitted (Part K); to amend the tax law, in relation to the imposition of taxes on the sale of cannabis (Part L); intentionally omitted (Part M); inten- tionally omitted (Part N); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Cats- kill and the Capital off-track betting corporations' capital acquisi- tion funds (Part O); 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 distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, in relation to the effectiveness there- of; and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to the effectiveness thereof (Part P); to amend the tax law, in relation to the computation of tax on little cigars (Part Q); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part R); to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain exceptions to licensing at a race meet; and providing for the repeal of such provisions upon expiration thereof (Part S); and to amend the tax law and the state finance law, in relation to the excise tax on medical cannabis and the allocation of moneys of the medical cannabis trust fund (Part T) 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 T. 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 contributionS. 8309--B 3 A. 8809--B 1 deduction allowed under section one hundred seventy of the internal 2 revenue code for taxable years beginning after two thousand nine and 3 ending before two thousand [twenty-five] thirty. 4 § 2. Paragraph 2 of subdivision (g) of section 11-1715 of the adminis- 5 trative code of the city of New York, as amended by section 2 of part Q 6 of chapter 59 of the laws of 2019, is amended to read as follows: 7 (2) With respect to an individual whose New York adjusted gross income 8 is over ten million dollars, the New York itemized deduction shall be an 9 amount equal to twenty-five percent of any charitable contribution 10 deduction allowed under section one hundred seventy of the internal 11 revenue code for taxable years beginning after two thousand nine and 12 ending before two thousand [twenty-five] thirty. 13 § 3. This act shall take effect immediately. 14 PART B 15 Section 1. Section 12 of part N of chapter 61 of the laws of 2005, 16 amending the tax law relating to certain transactions and related infor- 17 mation and relating to the voluntary compliance initiative, as amended 18 by section 1 of part O of chapter 59 of the laws of 2019, is amended to 19 read as follows: 20 § 12. This act shall take effect immediately; provided, however, that 21 (i) section one of this act shall apply to all disclosure statements 22 described in paragraph 1 of subdivision (a) of section 25 of the tax 23 law, as added by section one of this act, that were required to be filed 24 with the internal revenue service at any time with respect to "listed 25 transactions" as described in such paragraph 1, and shall apply to all 26 disclosure statements described in paragraph 1 of subdivision (a) of 27 section 25 of the tax law, as added by section one of this act, that 28 were required to be filed with the internal revenue service with respect 29 to "reportable transactions" as described in such paragraph 1, other 30 than "listed transactions", in which a taxpayer participated during any 31 taxable year for which the statute of limitations for assessment has not 32 expired as of the date this act shall take effect, and shall apply to 33 returns or statements described in such paragraph 1 required to be filed 34 by taxpayers (or persons as described in such paragraph) with the 35 commissioner of taxation and finance on or after the sixtieth day after 36 this act shall have become a law; and 37 (ii) sections two through four and seven through nine of this act 38 shall apply to any tax liability for which the statute of limitations on 39 assessment has not expired as of the date this act shall take effect; 40 and 41 (iii) provided, further, that the provisions of this act, except 42 section five of this act, shall expire and be deemed repealed July 1, 43 [2024] 2029; provided, that, such expiration and repeal shall not affect 44 any requirement imposed pursuant to this act. 45 § 2. This act shall take effect immediately. 46 PART C 47 Section 1. The opening paragraph of paragraph 2 of subsection (a) of 48 section 801 of the tax law, as amended by section 1 of part N of chapter 49 59 of the laws of 2012, is amended to read as follows: 50 (A) For individuals, the tax is imposed at a rate of thirty-four 51 hundredths (.34) percent of the net earnings from self-employment of 52 individuals that are attributable to the MCTD, in the counties of Dutch-S. 8309--B 4 A. 8809--B 1 ess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, if such 2 earnings attributable to the MCTD exceed fifty thousand dollars for the 3 tax year. 4 § 2. This act shall take effect immediately and shall apply to taxable 5 years beginning on or after January 1, 2024. 6 PART D 7 Section 1. Paragraph 2 of subsection (c) and paragraph 4 of subsection 8 (d) of section 689 of the tax law, paragraph 2 of subsection (c) as 9 amended by chapter 40 of the laws of 1964 and paragraph 4 of subsection 10 (d) as amended by chapter 28 of the laws of 1987, are amended to read as 11 follows: 12 (2) the taxpayer has not previously filed with the tax commission a 13 timely petition under subsection (b) of this section for the same taxa- 14 ble year unless the petition under this subsection relates to a separate 15 claim for credit or refund properly filed under subsection (f) of 16 section six hundred eighty-seven of this part or relates to a refund or 17 credit first claimed on an amended return for the taxable year, and 18 (4) Restriction on further notices of deficiency. -- If the taxpayer 19 files a petition with the tax commission under this section, no notice 20 of deficiency under section six hundred eighty-one of this part may 21 thereafter be issued by the tax commission for the same [taxable year] 22 tax return, except in case of fraud or with respect to a change or 23 correction required to be reported under section six hundred fifty-nine 24 of this article. 25 § 2. Paragraph 2 of subsection (c) and paragraph 4 of subsection (d) 26 of section 1089 of the tax law, paragraph 2 of subsection (c) as added 27 by chapter 188 of the laws of 1964 and paragraph 4 of subsection (d) as 28 amended by chapter 817 of the laws of 1987, are amended to read as 29 follows: 30 (2) the taxpayer has not previously filed with the tax commission a 31 timely petition under subsection (b) of this section for the same taxa- 32 ble year unless the petition under this subsection relates to a separate 33 claim for credit or refund properly filed under subsection (f) of 34 section one thousand eighty-seven of this article or relates to a refund 35 or credit first claimed on an amended return for the taxable year, and 36 (4) Restriction on further notices of deficiency.---If the taxpayer 37 files a petition with the tax commission under this section, no notice 38 of deficiency under section one thousand eighty-one of this article may 39 thereafter be issued by the tax commission for the same [taxable year] 40 tax return, except in case of fraud or with respect to an increase or 41 decrease in federal taxable income or federal alternative minimum taxa- 42 ble income or federal tax or a federal change or correction or renegoti- 43 ation, or computation or recomputation of tax, which is treated in the 44 same manner as if it were a deficiency for federal income tax purposes, 45 required to be reported under subdivision three of section two hundred 46 eleven[, or under section two hundred nineteen-bb or under section two47hundred nineteen-zz] of this chapter. 48 § 3. This act shall take effect immediately and apply to taxable years 49 beginning on or after January 1, 2024. 50 PART E 51 Section 1. The executive law is amended by adding a new section 845-e 52 to read as follows:S. 8309--B 5 A. 8809--B 1 § 845-e. Commercial security tax credit program. 1. Definitions. For 2 the purposes of this section: 3 (a) "Certificate of tax credit" means the document issued to a busi- 4 ness entity by the division after the division has verified that the 5 business entity has met all applicable eligibility criteria in subdivi- 6 sion two of this section. The certificate shall specify the exact amount 7 of the tax credit under this section that a business entity may claim, 8 pursuant to subdivision five of this section, and other information as 9 required by the department of taxation and finance. 10 (b) "Qualified business" means a business with fifty or fewer total 11 employees that operates one or more physical retail business locations 12 open to the public in New York state that incurs costs related to 13 protection against retail theft of goods through retail theft prevention 14 measures. 15 (c) "Qualified retail theft prevention measure expenses" means any 16 combination of retail theft prevention measure costs paid or incurred by 17 a qualified business during the taxable year that cumulatively exceed 18 four thousand dollars for a qualified business with twenty-five or fewer 19 total employees or six thousand dollars for a qualified business with 20 more than twenty-five employees for each New York retail location. 21 (d) "Retail theft prevention measure" means (i) the use of security 22 officers as defined in paragraph (e) of this subdivision, (ii) security 23 cameras, (iii) perimeter security lighting, (iv) interior or exterior 24 locking or hardening measures, (v) alarm systems, (vi) access control 25 systems, or (vii) other appropriate anti-theft devices as determined by 26 the division to be eligible under this section. 27 (e) "Security officers" means security officers, registered under 28 article seven-A of the general business law, responsible for the securi- 29 ty and theft deterrence in a qualified business, whether employed 30 directly by such business or indirectly through a contractor. 31 2. Eligibility criteria. To be eligible for a tax credit under the 32 commercial security tax credit program, an eligible business must: 33 (a) be a qualified business required to file a tax return pursuant to 34 articles nine, nine-A or twenty-two of the tax law; 35 (b) have qualified retail theft prevention measure expenses that 36 exceed four thousand dollars for a qualified business with twenty-five 37 or fewer total employees or six thousand dollars for a qualified busi- 38 ness with more than twenty-five employees for each New York retail 39 location during the taxable year; 40 (c) provide a certification in a manner and form prescribed by the 41 commissioner that the business entity participates in a community anti- 42 theft partnership as established by the division between businesses and 43 relevant local law enforcement agencies; and 44 (d) may not owe past due state taxes or local property taxes unless 45 the business entity is making payments and complying with an approved 46 binding payment agreement entered into with the taxing authority. 47 3. Application and approval process. (a) A business entity must submit 48 a complete application as prescribed by the commissioner by October 49 thirty-first of each year. 50 (b) The commissioner shall establish procedures for business entities 51 to submit applications. As part of the application, each business entity 52 must: 53 (i) provide evidence of eligibility in a form and manner prescribed by 54 the commissioner; 55 (ii) agree to allow the department of taxation and finance to share 56 the business entity's tax information with the division. However, anyS. 8309--B 6 A. 8809--B 1 information shared as a result of this program shall not be available 2 for disclosure or inspection under the state freedom of information law 3 pursuant to article six of the public officers law; 4 (iii) allow the division and its agents access to any and all books 5 and records the division may require to confirm eligibility; and 6 (iv) agree to provide any additional information required by the divi- 7 sion relevant to this section. 8 4. Certificate of tax credit. After reviewing a business entity's 9 completed final application and determining that a business entity meets 10 the eligibility criteria as set forth in this section, the division may 11 issue to that business entity a certificate of tax credit. All applica- 12 tions will be processed by the division in the order they are received 13 and certificates of tax credit may be issued in amounts that, in the 14 aggregate, do not exceed the annual cap as set forth in subdivision 15 seven of this section. 16 5. Commercial security tax credit. (a) For taxable years beginning on 17 or after January first, two thousand twenty-four and before January 18 first, two thousand twenty-six, a business entity in the commercial 19 security tax credit program that meets the eligibility requirements of 20 subdivision two of this section may be eligible to claim a credit equal 21 to three thousand dollars for each retail location of the business enti- 22 ty located in New York state. 23 (b) A business entity may claim the tax credit in the taxable year 24 that begins in the year for which it was allocated a credit by the divi- 25 sion under this section. 26 (c) The credit shall be allowed as provided in section forty-nine, 27 section one hundred eighty-seven-r, subdivision sixty of section two 28 hundred ten-B and subsection (ppp) of section six hundred six of the tax 29 law. 30 (d) The commissioner shall, in consultation with the department of 31 taxation and finance, develop a certificate of tax credit that shall be 32 issued by the commissioner to eligible businesses. 33 (e) The commissioner shall solely determine the eligibility of any 34 applicant applying for entry into the program and shall remove any busi- 35 ness entity from the program for failing to meet any of the requirements 36 set forth in subdivision two and subdivision three of this section. In 37 the event a business entity is removed from the program, the division 38 shall notify the department of taxation and finance of such removal. 39 6. Maintenance of records. Each eligible business participating in the 40 program shall keep all relevant records for the duration of their 41 program participation for at least three years. 42 7. Cap on tax credit. The total amount of tax credits listed on 43 certificates of tax credit issued by the division pursuant to this 44 section may not exceed five million dollars per calendar year. 45 § 2. The tax law is amended by adding a new section 49 to read as 46 follows: 47 § 49. Commercial security tax credit. (a) Allowance of credit. For 48 taxable years beginning on or after January first, two thousand twenty- 49 four and before January first, two thousand twenty-six, a taxpayer 50 required to file a return pursuant to articles nine, nine-A or twenty- 51 two of this chapter shall be allowed a credit against such tax, pursuant 52 to the provisions referenced in subdivision (f) of this section. The 53 amount of the credit is equal to the amount determined pursuant to 54 section eight hundred forty-five-e of the executive law. No cost or 55 expense paid or incurred by the taxpayer that is included as part of theS. 8309--B 7 A. 8809--B 1 calculation of this credit shall be the basis of any other tax credit 2 allowed under this chapter. 3 (b) To be eligible for the commercial security tax credit, the taxpay- 4 er shall have been issued a certificate of tax credit by the division of 5 criminal justice services pursuant to section eight hundred forty-five-e 6 of the executive law, which certificate shall set forth the amount of 7 the credit that may be claimed for the taxable year. The taxpayer shall 8 be allowed to claim only the amount listed on the certificate of tax 9 credit for the taxable year. A taxpayer that is a partner in a partner- 10 ship, member of a limited liability company or shareholder in a subchap- 11 ter S corporation that has received a certificate of tax credit shall be 12 allowed its pro rata share of the credit earned by the partnership, 13 limited liability company or subchapter S corporation. 14 (c) Tax return requirement. The taxpayer shall be required to attach 15 to its tax return in the form prescribed by the commissioner, proof of 16 receipt of its certificate of tax credit issued by the division of crim- 17 inal justice services. 18 (d) Information sharing. Notwithstanding any provision of this chap- 19 ter, employees of the division of criminal justice services and the 20 department shall be allowed and are directed to share and exchange: 21 (1) information derived from tax returns or reports that is relevant 22 to a taxpayer's eligibility to participate in the commercial security 23 tax credit program; 24 (2) information regarding the credit applied for, allowed or claimed 25 pursuant to this section and taxpayers that are applying for the commer- 26 cial security tax credit program or that are claiming such credit; and 27 (3) information contained in or derived from credit claim forms 28 submitted to the department and applications for admission into the 29 commercial security tax credit program. All information exchanged 30 between the department and the division of criminal justice services 31 shall not be subject to disclosure or inspection under the state's free- 32 dom of information law. 33 (e) Credit recapture. If a certificate of tax credit issued by the 34 division of criminal justice services under section eight hundred 35 forty-five-e of the executive law is revoked by the division, the amount 36 of credit described in this section and claimed by the taxpayer prior to 37 such revocation shall be added back to tax in the taxable year such 38 revocation becomes final. 39 (f) Cross references. For application of the credit provided for in 40 this section, see the following provisions of this chapter: 41 (1) article 9; section 187-r; 42 (2) article 9-A: section 210-B, subdivision 60; 43 (3) article 22: section 606, subdivision (ppp). 44 § 3. The tax law is amended by adding a new section 187-r to read as 45 follows: 46 § 187-r. Commercial security tax credit. 1. Allowance of credit. A 47 taxpayer shall be allowed a credit, to be computed as provided in 48 section forty-nine of this chapter, against the tax imposed by this 49 article. 50 2. Application of credit. In no event shall the credit under this 51 section be allowed in an amount that will reduce the tax payable to less 52 than the applicable minimum tax fixed by section one hundred eighty- 53 three of this article. If, however, the amount of credit allowable under 54 this section for any taxable year reduces the tax to such amount, any 55 amount of credit not deductible in such taxable year shall be treated as 56 an overpayment of tax to be refunded in accordance with the provisionsS. 8309--B 8 A. 8809--B 1 of section one thousand eighty-six of this chapter. Provided, however, 2 the provisions of subsection (c) of section one thousand eighty-eight of 3 this chapter notwithstanding, no interest shall be paid thereon. 4 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 5 sion 60 to read as follows: 6 60. Commercial security tax credit. (a) Allowance of credit. A taxpay- 7 er shall be allowed a credit, to be computed as provided in section 8 forty-nine of this chapter, against the taxes imposed by this article. 9 (b) Application of credit. The credit allowed under this subdivision 10 for the taxable year shall not reduce the tax due for such year to less 11 than the amount prescribed in paragraph (d) of subdivision one of 12 section two hundred ten of this article. However, if the amount of cred- 13 it allowable under this subdivision for the taxable year reduces the tax 14 to such amount or if the taxpayer otherwise pays tax based on the fixed 15 dollar minimum amount, any amount of credit thus not deductible in such 16 taxable year shall be treated as an overpayment of tax to be credited or 17 refunded in accordance with the provisions of section one thousand 18 eighty-six of this chapter. Provided, however, the provisions of 19 subsection (c) of section one thousand eighty-eight of this chapter 20 notwithstanding, no interest will be paid thereon. 21 § 5. Section 606 of the tax law is amended by adding a new subsection 22 (ppp) to read as follows: 23 (ppp) Commercial security tax credit. (1) Allowance of credit. A 24 taxpayer shall be allowed a credit, to be computed as provided in 25 section forty-nine of this chapter, against the tax imposed by this 26 article. 27 (2) Application of credit. If the amount of the credit allowed under 28 this subsection for the taxable year exceeds the taxpayer's tax for such 29 year, the excess shall be treated as an overpayment of tax to be credit- 30 ed or refunded in accordance with the provisions of section six hundred 31 eighty-six of this article, provided, however, that no interest will be 32 paid thereon. 33 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 34 of the tax law is amended by adding a new clause (li) to read as 35 follows: 36 (li) Commercial security tax Amount of credit under 37 credit under subsection (ppp) subdivision sixty of 38 section two hundred ten-B 39 § 7. This act shall take effect immediately. 40 PART F 41 Section 1. Subdivisions (a), (b) and (d) of section 23 of part U of 42 chapter 61 of the laws of 2011, amending the real property tax law and 43 other laws relating to establishing standards for electronic tax 44 administration, subdivisions (a) and (d) as amended by section 5 of part 45 A of chapter 59 of the laws of 2019 and subdivision (b) as amended by 46 section 5 of part G of chapter 60 of the laws of 2016, are amended to 47 read as follows: 48 (a) the amendments to section 29 of the tax law made by section thir- 49 teen of this act shall apply to tax documents filed or required to be 50 filed on or after the sixtieth day after which this act shall have 51 become a law and shall expire and be deemed repealed December 31, [2024] 52 2029, provided however that the amendments to paragraph 4 of subdivision 53 (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of 54 section 29 of the tax law made by section thirteen of this act withS. 8309--B 9 A. 8809--B 1 regard to individual taxpayers shall take effect September 15, 2011 but 2 only if the commissioner of taxation and finance has reported in the 3 report required by section seventeen-b of this act that the percentage 4 of individual taxpayers electronically filing their 2010 income tax 5 returns is less than eighty-five percent; provided that the commissioner 6 of taxation and finance shall notify the legislative bill drafting 7 commission of the date of the issuance of such report in order that the 8 commission may maintain an accurate and timely effective data base of 9 the official text of the laws of the state of New York in furtherance of 10 effectuating the provisions of section 44 of the legislative law and 11 section 70-b of the public officers law; 12 (b) sections fourteen, fifteen, sixteen and seventeen of this act 13 shall take effect September 15, 2011 but only if the commissioner of 14 taxation and finance has reported in the report required by section 15 seventeen-b of this act that the percentage of individual taxpayers 16 electronically filing their 2010 income tax returns is less than eight- 17 y-five percent; and 18 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this 19 act shall take effect January 1, [2025] 2030 but only if the commission- 20 er of taxation and finance has reported in the report required by 21 section seventeen-b of this act that the percentage of individual 22 taxpayers electronically filing their 2010 income tax returns is less 23 than eighty-five percent; and 24 § 2. This act shall take effect immediately. 25 PART G 26 Section 1. Subdivision (e) of section 23 of part U of chapter 61 of 27 the laws of 2011, amending the real property tax law and other laws 28 relating to establishing standards for electronic real property tax 29 administration, allowing the department of taxation and finance to use 30 electronic communication means to furnish tax notices and other docu- 31 ments, mandatory electronic filing of tax documents, debit cards issued 32 for tax refunds, improving sales tax compliance, as amended by section 1 33 of part S of chapter 59 of the laws of 2019, is amended to read as 34 follows: 35 (e) sections twenty-one and twenty-one-a of this act shall expire and 36 be deemed repealed December 31, [2024] 2029. 37 § 2. This act shall take effect immediately. 38 PART H 39 Section 1. Section 1136 of the tax law is amended by adding a new 40 subdivision (d-1) to read as follows: 41 (d-1)(1) Notwithstanding subdivision (d) of this section, a return may 42 be amended where such amendment would not result in the reduction or 43 elimination of a past-due tax liability, as such term is defined in 44 section one hundred seventy-one-v of this chapter. Provided, however, 45 that a person required to collect tax, as defined in section eleven 46 hundred thirty-one of this part, may amend a return within one hundred 47 eighty days of the date such return was due if the past-due liability 48 was self-assessed and reported by such person. 49 (2) Where there is no such past-due tax liability, an amended return 50 that would result in the reduction or elimination of tax due shall be 51 deemed a claim for credit or refund and must be filed within the time 52 required for filing a claim for credit or refund under section elevenS. 8309--B 10 A. 8809--B 1 hundred thirty-nine of this part and otherwise meet the requirements of 2 such section. 3 (3) Where the commissioner has determined the amount of tax due pursu- 4 ant to paragraph one of subdivision (a) of section eleven hundred thir- 5 ty-eight of this part, an original return may be filed within one 6 hundred eighty days after mailing of notice of such determination. 7 Provided, however, that nothing in this paragraph shall affect any 8 penalty or interest that may have accrued for such tax period on account 9 of failure to timely file the original return. 10 (4) An assessment of tax, penalty and interest, including recovery of 11 a previously paid refund, attributable to a change or correction on a 12 return, may be made at any time within three years after such return is 13 filed. 14 § 2. Subdivision (a) of section 1145 of the tax law is amended by 15 adding a new paragraph 8 to read as follows: 16 (8) Notwithstanding any other provision of this article, any person 17 who willfully files or amends a return that contains false information 18 to reduce or eliminate a liability shall be subject to a penalty not to 19 exceed one thousand dollars per return. This penalty shall be in addi- 20 tion to any other penalty provided by law. 21 § 3. The commissioner of taxation and finance shall be required to 22 provide notice to persons required to collect tax of the amendments made 23 by sections one and two of this act no later than September 1, 2024. 24 § 4. This act shall take effect immediately, provided, however, the 25 amendments made by section one of this act shall apply to returns filed 26 or amended for periods commencing on and after December 1, 2024. 27 PART I 28 Section 1. Subdivision (jj) of section 1115 of the tax law, as amended 29 by section 1 of part M of chapter 59 of the laws of 2021, is amended to 30 read as follows: 31 (jj) Tangible personal property or services otherwise taxable under 32 this article sold to a related person shall not be subject to the taxes 33 imposed by section eleven hundred five of this article or the compensat- 34 ing use tax imposed under section eleven hundred ten of this article 35 where the purchaser can show that the following conditions have been met 36 to the extent they are applicable: (1)(i) the vendor and the purchaser 37 are referenced as either a "covered company" as described in section 38 243.2(f) or a "material entity" as described in section 243.2(l) of the 39 Code of Federal Regulations in a resolution plan that has been submitted 40 to an agency of the United States for the purpose of satisfying subpara- 41 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 42 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 43 successor law, or (ii) the vendor and the purchaser are separate legal 44 entities pursuant to a divestiture directed pursuant to subparagraph 5 45 of paragraph (d) of section one hundred sixty-five of such act or any 46 successor law; (2) the sale would not have occurred between such related 47 entities were it not for such resolution plan or divestiture; and (3) in 48 acquiring such property or services, the vendor did not claim an 49 exemption from the tax imposed by this state or another state based on 50 the vendor's intent to resell such services or property. A person is 51 related to another person for purposes of this subdivision if the person 52 bears a relationship to such person described in section two hundred 53 sixty-seven of the internal revenue code. The exemption provided by this 54 subdivision shall not apply to sales made, services rendered, or usesS. 8309--B 11 A. 8809--B 1 occurring after June thirtieth, two thousand [twenty-four] twenty-five, 2 except with respect to sales made, services rendered, or uses occurring 3 pursuant to binding contracts entered into on or before such date; but 4 in no case shall such exemption apply after June thirtieth, two thousand 5 [twenty-seven] twenty-eight. 6 § 2. This act shall take effect immediately. 7 PART J 8 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 9 section 1115 of the tax law, as amended by section 1 of part R of chap- 10 ter 59 of the laws of 2023, is amended to read as follows: 11 (B) Until May thirty-first, two thousand [twenty-four] twenty-five, 12 the food and drink excluded from the exemption provided by clauses (i), 13 (ii) and (iii) of subparagraph (A) of this paragraph, and bottled water, 14 shall be exempt under this subparagraph: (i) when sold for one dollar 15 and fifty cents or less through any vending machine that accepts coin or 16 currency only; or (ii) when sold for two dollars or less through any 17 vending machine that accepts any form of payment other than coin or 18 currency, whether or not it also accepts coin or currency. 19 § 2. This act shall take effect immediately. 20 PART K 21 Intentionally Omitted 22 PART L 23 Section 1. Subdivision (a) of section 493 of the tax law, as added by 24 chapter 92 of the laws of 2021, is amended to read as follows: 25 (a) There is hereby imposed a tax on adult-use cannabis products sold 26 by a distributor to a person who sells adult-use cannabis products at 27 retail at the [following rates:28(1) cannabis flower at the rate of five-tenths of one cent per milli-29gram of the amount of total THC, as reflected on the product label;30(2) concentrated cannabis at the rate of eight-tenths of one cent per31milligram of the amount of total THC, as reflected on the product label;32and33(3) cannabis edible product at the rate of three cents per milligram34of the amount of total THC, as reflected on the product label. This tax35shall accrue at the time of such sale or transfer. Where] rate of nine 36 percent of the amount charged for the sale or transfer of such adult-use 37 cannabis products to such retailer; provided that where a person who 38 distributes adult-use cannabis is licensed under the cannabis law as a 39 microbusiness or registered organization and such person sells adult-use 40 cannabis products at retail, such person shall be liable for the tax, 41 [and] such tax shall accrue at the time of the retail sale, and the 42 amount subject to the tax imposed by this subdivision shall be seventy- 43 five percent of the amount charged by such person for the sale or trans- 44 fer of such products to a retail customer. 45 § 2. Section 496 of the tax law is amended by adding new subdivision 46 (d) to read as follows: 47 (d) If books and records are not provided or are determined to be 48 insufficient, the amount of tax due shall be determined by the commis- 49 sioner from such information as may be available. In the absence ofS. 8309--B 12 A. 8809--B 1 evidence of the wholesale price for the tax imposed by subdivision (a) 2 of section four hundred ninety-three of this article, the tax may be 3 determined based on the retail price of such adult-use cannabis 4 products. 5 § 3. Subdivision (a) of section 496-b of the tax law, as added by 6 chapter 92 of the laws of 2021, is amended to read as follows: 7 (a) The provisions of part four of article [twenty-seven] twenty-eight 8 of this chapter shall apply to the taxes imposed by section four hundred 9 ninety-three of this article in the same manner and with the same force 10 and effect as if the language of such article had been incorporated in 11 full into this section and had expressly referred to the tax imposed by 12 this article, except to the extent that any provision of such article is 13 either inconsistent with a provision of this article or is not relevant 14 to this article. 15 § 4. This act shall take effect immediately; provided, however, that 16 sections one and two of this act shall apply to sales of adult-use 17 cannabis products on or after June 1, 2024, and section three of this 18 act shall apply to sales of adult-use cannabis products on or after 19 December 1, 2024. 20 PART M 21 Intentionally Omitted 22 PART N 23 Intentionally Omitted 24 PART O 25 Section 1. Subdivision 2 of section 509-a of the racing, pari-mutuel 26 wagering and breeding law, as amended by section 1 of part OO of chapter 27 56 of the laws of 2023, is amended to read as follows: 28 2. a. Notwithstanding any other provision of law or regulation to the 29 contrary, from April nineteenth, two thousand twenty-one to March thir- 30 ty-first, two thousand twenty-two, twenty-three percent of the funds, 31 not to exceed two and one-half million dollars, in the Catskill off- 32 track betting corporation's capital acquisition fund and twenty-three 33 percent of the funds, not to exceed four hundred forty thousand dollars, 34 in the Capital off-track betting corporation's capital acquisition fund 35 established pursuant to this section shall also be available to such 36 off-track betting corporation for the purposes of statutory obligations, 37 payroll, and expenditures necessary to accept authorized wagers. 38 b. Notwithstanding any other provision of law or regulation to the 39 contrary, from April first, two thousand twenty-two to March thirty- 40 first, two thousand twenty-three, twenty-three percent of the funds, not 41 to exceed two and one-half million dollars, in the Catskill off-track 42 betting corporation's capital acquisition fund established pursuant to 43 this section, and twenty-three percent of the funds, not to exceed four 44 hundred forty thousand dollars, in the Capital off-track betting corpo- 45 ration's capital acquisition fund established pursuant to this section, 46 shall be available to such off-track betting corporations for the 47 purposes of statutory obligations, payroll, and expenditures necessary 48 to accept authorized wagers.S. 8309--B 13 A. 8809--B 1 c. Notwithstanding any other provision of law or regulation to the 2 contrary, from April first, two thousand twenty-three to March thirty- 3 first, two thousand twenty-four, twenty-three percent of the funds, not 4 to exceed two and one-half million dollars, in the Catskill off-track 5 betting corporation's capital acquisition fund established pursuant to 6 this section, and one million dollars in the Capital off-track betting 7 corporation's capital acquisition fund established pursuant to this 8 section, shall be available to such off-track betting corporation for 9 the purposes of expenditures necessary to accept authorized wagers; past 10 due statutory obligations to New York licensed or franchised racing 11 corporations or associations; past due contractual obligations due to 12 other racing associations or organizations for the costs of acquiring a 13 simulcast signal; past due statutory payment obligations due to the New 14 York state thoroughbred breeding and development fund corporation, agri- 15 culture and New York state horse breeding development fund, and the 16 Harry M. Zweig memorial fund for equine research; and past due obli- 17 gations due the state. 18 d. Notwithstanding any other provision of law or regulation to the 19 contrary, from April first, two thousand twenty-four to March thirty- 20 first, two thousand twenty-five, twenty-three percent of the funds, not 21 to exceed two and one-half million dollars, in the Catskill off-track 22 betting corporation's capital acquisition fund established pursuant to 23 this section, and one million dollars in the Capital off-track betting 24 corporation's capital acquisition fund established pursuant to this 25 section, shall be available to such off-track betting corporation for 26 the purposes of expenditures necessary to accept authorized wagers; past 27 due statutory obligations to New York licensed or franchised racing 28 corporations or associations; past due contractual obligations due to 29 other racing associations or organizations for the costs of acquiring a 30 simulcast signal; past due statutory payment obligations due to the New 31 York state thoroughbred breeding and development fund corporation, agri- 32 culture and New York state horse breeding development fund, and the 33 Harry M. Zweig memorial fund for equine research; and past due obli- 34 gations due the state. 35 e. Prior to a corporation being able to utilize the funds authorized 36 by paragraph c or d of this subdivision, the corporation must attest 37 that the surcharge monies from section five hundred thirty-two of this 38 chapter are being held separate and apart from any amounts otherwise 39 authorized to be retained from pari-mutuel pools and all surcharge 40 monies have been and will continue to be paid to the localities as 41 prescribed in law. Once this condition is satisfied, the corporation 42 must submit an expenditure plan to the gaming commission for review. 43 Such plan shall include the corporation's outstanding liabilities, 44 projected revenue for the upcoming year, a detailed explanation of how 45 the funds will be used, and any other information necessary to detail 46 such plan as determined by the commission. Upon review, the commission 47 shall make a determination as to whether the requirements of this para- 48 graph have been satisfied and notify the corporation of expenditure plan 49 approval. In the event the commission determines the requirements of 50 this paragraph have not been satisfied, the commission shall notify the 51 corporation of all deficiencies necessary for approval. As a condition 52 of such expenditure plan approval, the corporation shall provide a 53 report to the commission no later than [October first, two thousand54twenty-three] the last day of the calendar year for which the funds are 55 requested, which shall include an accounting of the use of such funds. 56 At such time, the commission may cause an independent audit to beS. 8309--B 14 A. 8809--B 1 conducted of the corporation's books to ensure that all moneys were 2 spent as indicated in such approved plan. The audit shall be paid for 3 from money in the fund established by this section. If the audit deter- 4 mines that a corporation used the money authorized under this section 5 for a purpose other than one listed in their expenditure plan, then the 6 corporation shall reimburse the capital acquisition fund for the unau- 7 thorized amount. 8 § 2. This act shall take effect immediately. 9 PART P 10 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 11 racing, pari-mutuel wagering and breeding law, as amended by section 1 12 of part BB of chapter 59 of the laws of 2023, is amended to read as 13 follows: 14 (a) Any racing association or corporation or regional off-track 15 betting corporation, authorized to conduct pari-mutuel wagering under 16 this chapter, desiring to display the simulcast of horse races on which 17 pari-mutuel betting shall be permitted in the manner and subject to the 18 conditions provided for in this article may apply to the commission for 19 a license so to do. Applications for licenses shall be in such form as 20 may be prescribed by the commission and shall contain such information 21 or other material or evidence as the commission may require. No license 22 shall be issued by the commission authorizing the simulcast transmission 23 of thoroughbred races from a track located in Suffolk county. The fee 24 for such licenses shall be five hundred dollars per simulcast facility 25 and for account wagering licensees that do not operate either a simul- 26 cast facility that is open to the public within the state of New York or 27 a licensed racetrack within the state, twenty thousand dollars per year 28 payable by the licensee to the commission for deposit into the general 29 fund. Except as provided in this section, the commission shall not 30 approve any application to conduct simulcasting into individual or group 31 residences, homes or other areas for the purposes of or in connection 32 with pari-mutuel wagering. The commission may approve simulcasting into 33 residences, homes or other areas to be conducted jointly by one or more 34 regional off-track betting corporations and one or more of the follow- 35 ing: a franchised corporation, thoroughbred racing corporation or a 36 harness racing corporation or association; provided (i) the simulcasting 37 consists only of those races on which pari-mutuel betting is authorized 38 by this chapter at one or more simulcast facilities for each of the 39 contracting off-track betting corporations which shall include wagers 40 made in accordance with section one thousand fifteen, one thousand 41 sixteen and one thousand seventeen of this article; provided further 42 that the contract provisions or other simulcast arrangements for such 43 simulcast facility shall be no less favorable than those in effect on 44 January first, two thousand five; (ii) that each off-track betting 45 corporation having within its geographic boundaries such residences, 46 homes or other areas technically capable of receiving the simulcast 47 signal shall be a contracting party; (iii) the distribution of revenues 48 shall be subject to contractual agreement of the parties except that 49 statutory payments to non-contracting parties, if any, may not be 50 reduced; provided, however, that nothing herein to the contrary shall 51 prevent a track from televising its races on an irregular basis primari- 52 ly for promotional or marketing purposes as found by the commission. For 53 purposes of this paragraph, the provisions of section one thousand thir- 54 teen of this article shall not apply. Any agreement authorizing anS. 8309--B 15 A. 8809--B 1 in-home simulcasting experiment commencing prior to May fifteenth, nine- 2 teen hundred ninety-five, may, and all its terms, be extended until June 3 thirtieth, two thousand [twenty-four] twenty-five; provided, however, 4 that any party to such agreement may elect to terminate such agreement 5 upon conveying written notice to all other parties of such agreement at 6 least forty-five days prior to the effective date of the termination, 7 via registered mail. Any party to an agreement receiving such notice of 8 an intent to terminate, may request the commission to mediate between 9 the parties new terms and conditions in a replacement agreement between 10 the parties as will permit continuation of an in-home experiment until 11 June thirtieth, two thousand [twenty-four] twenty-five; and (iv) no 12 in-home simulcasting in the thoroughbred special betting district shall 13 occur without the approval of the regional thoroughbred track. 14 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 15 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 16 section 2 of part BB of chapter 59 of the laws of 2023, is amended to 17 read as follows: 18 (iii) Of the sums retained by a receiving track located in Westchester 19 county on races received from a franchised corporation, for the period 20 commencing January first, two thousand eight and continuing through June 21 thirtieth, two thousand [twenty-four] twenty-five, the amount used 22 exclusively for purses to be awarded at races conducted by such receiv- 23 ing track shall be computed as follows: of the sums so retained, two and 24 one-half percent of the total pools. Such amount shall be increased or 25 decreased in the amount of fifty percent of the difference in total 26 commissions determined by comparing the total commissions available 27 after July twenty-first, nineteen hundred ninety-five to the total 28 commissions that would have been available to such track prior to July 29 twenty-first, nineteen hundred ninety-five. 30 § 3. The opening paragraph of subdivision 1 of section 1014 of the 31 racing, pari-mutuel wagering and breeding law, as amended by section 3 32 of part BB of chapter 59 of the laws of 2023, is amended to read as 33 follows: 34 The provisions of this section shall govern the simulcasting of races 35 conducted at thoroughbred tracks located in another state or country on 36 any day during which a franchised corporation is conducting a race meet- 37 ing in Saratoga county at Saratoga thoroughbred racetrack until June 38 thirtieth, two thousand [twenty-four] twenty-five and on any day regard- 39 less of whether or not a franchised corporation is conducting a race 40 meeting in Saratoga county at Saratoga thoroughbred racetrack after June 41 thirtieth, two thousand [twenty-four] twenty-five. On any day on which a 42 franchised corporation has not scheduled a racing program but a 43 thoroughbred racing corporation located within the state is conducting 44 racing, each off-track betting corporation branch office and each simul- 45 casting facility licensed in accordance with section one thousand seven 46 (that has entered into a written agreement with such facility's repre- 47 sentative horsemen's organization, as approved by the commission), one 48 thousand eight, or one thousand nine of this article shall be authorized 49 to accept wagers and display the live simulcast signal from thoroughbred 50 tracks located in another state or foreign country subject to the 51 following provisions: 52 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 53 and breeding law, as amended by section 4 of part BB of chapter 59 of 54 the laws of 2023, is amended to read as follows: 55 1. The provisions of this section shall govern the simulcasting of 56 races conducted at harness tracks located in another state or countryS. 8309--B 16 A. 8809--B 1 during the period July first, nineteen hundred ninety-four through June 2 thirtieth, two thousand [twenty-four] twenty-five. This section shall 3 supersede all inconsistent provisions of this chapter. 4 § 5. The opening paragraph of subdivision 1 of section 1016 of the 5 racing, pari-mutuel wagering and breeding law, as amended by section 5 6 of part BB of chapter 59 of the laws of 2023, is amended to read as 7 follows: 8 The provisions of this section shall govern the simulcasting of races 9 conducted at thoroughbred tracks located in another state or country on 10 any day during which a franchised corporation is not conducting a race 11 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 12 thirtieth, two thousand [twenty-four] twenty-five. Every off-track 13 betting corporation branch office and every simulcasting facility 14 licensed in accordance with section one thousand seven that have entered 15 into a written agreement with such facility's representative horsemen's 16 organization as approved by the commission, one thousand eight or one 17 thousand nine of this article shall be authorized to accept wagers and 18 display the live full-card simulcast signal of thoroughbred tracks 19 (which may include quarter horse or mixed meetings provided that all 20 such wagering on such races shall be construed to be thoroughbred races) 21 located in another state or foreign country, subject to the following 22 provisions; provided, however, no such written agreement shall be 23 required of a franchised corporation licensed in accordance with section 24 one thousand seven of this article: 25 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 26 wagering and breeding law, as amended by section 6 of part BB of chapter 27 59 of the laws of 2023, is amended to read as follows: 28 Notwithstanding any other provision of this chapter, for the period 29 July twenty-fifth, two thousand one through September eighth, two thou- 30 sand [twenty-three] twenty-four, when a franchised corporation is 31 conducting a race meeting within the state at Saratoga Race Course, 32 every off-track betting corporation branch office and every simulcasting 33 facility licensed in accordance with section one thousand seven (that 34 has entered into a written agreement with such facility's representative 35 horsemen's organization as approved by the commission), one thousand 36 eight or one thousand nine of this article shall be authorized to accept 37 wagers and display the live simulcast signal from thoroughbred tracks 38 located in another state, provided that such facility shall accept 39 wagers on races run at all in-state thoroughbred tracks which are 40 conducting racing programs subject to the following provisions; 41 provided, however, no such written agreement shall be required of a 42 franchised corporation licensed in accordance with section one thousand 43 seven of this article. 44 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 45 racing, pari-mutuel wagering and breeding law and other laws relating to 46 simulcasting, as amended by section 7 of part BB of chapter 59 of the 47 laws of 2023, is amended to read as follows: 48 § 32. This act shall take effect immediately and the pari-mutuel tax 49 reductions in section six of this act shall expire and be deemed 50 repealed on July 1, [2024] 2025; provided, however, that nothing 51 contained herein shall be deemed to affect the application, qualifica- 52 tion, expiration, or repeal of any provision of law amended by any 53 section of this act, and such provisions shall be applied or qualified 54 or shall expire or be deemed repealed in the same manner, to the same 55 extent and on the same date as the case may be as otherwise provided by 56 law; provided further, however, that sections twenty-three and twenty-S. 8309--B 17 A. 8809--B 1 five of this act shall remain in full force and effect only until May 1, 2 1997 and at such time shall be deemed to be repealed. 3 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 4 racing, pari-mutuel wagering and breeding law and other laws relating to 5 simulcasting and the imposition of certain taxes, as amended by section 6 8 of part BB of chapter 59 of the laws of 2023, is amended to read as 7 follows: 8 § 54. This act shall take effect immediately; provided, however, 9 sections three through twelve of this act shall take effect on January 10 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 11 ing law, as added by section thirty-eight of this act, shall expire and 12 be deemed repealed on July 1, [2024] 2025; and section eighteen of this 13 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 14 two of this act shall take effect as of the same date as chapter 772 of 15 the laws of 1989 took effect. 16 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 17 pari-mutuel wagering and breeding law, as amended by section 9 of part 18 BB of chapter 59 of the laws of 2023, is amended to read as follows: 19 (a) The franchised corporation authorized under this chapter to 20 conduct pari-mutuel betting at a race meeting or races run thereat shall 21 distribute all sums deposited in any pari-mutuel pool to the holders of 22 winning tickets therein, provided such tickets are presented for payment 23 before April first of the year following the year of their purchase, 24 less an amount that shall be established and retained by such franchised 25 corporation of between twelve to seventeen percent of the total deposits 26 in pools resulting from on-track regular bets, and fourteen to twenty- 27 one percent of the total deposits in pools resulting from on-track 28 multiple bets and fifteen to twenty-five percent of the total deposits 29 in pools resulting from on-track exotic bets and fifteen to thirty-six 30 percent of the total deposits in pools resulting from on-track super 31 exotic bets, plus the breaks. The retention rate to be established is 32 subject to the prior approval of the commission. 33 Such rate may not be changed more than once per calendar quarter to be 34 effective on the first day of the calendar quarter. "Exotic bets" and 35 "multiple bets" shall have the meanings set forth in section five 36 hundred nineteen of this chapter. "Super exotic bets" shall have the 37 meaning set forth in section three hundred one of this chapter. For 38 purposes of this section, a "pick six bet" shall mean a single bet or 39 wager on the outcomes of six races. The breaks are hereby defined as the 40 odd cents over any multiple of five for payoffs greater than one dollar 41 five cents but less than five dollars, over any multiple of ten for 42 payoffs greater than five dollars but less than twenty-five dollars, 43 over any multiple of twenty-five for payoffs greater than twenty-five 44 dollars but less than two hundred fifty dollars, or over any multiple of 45 fifty for payoffs over two hundred fifty dollars. Out of the amount so 46 retained there shall be paid by such franchised corporation to the 47 commissioner of taxation and finance, as a reasonable tax by the state 48 for the privilege of conducting pari-mutuel betting on the races run at 49 the race meetings held by such franchised corporation, the following 50 percentages of the total pool for regular and multiple bets five percent 51 of regular bets and four percent of multiple bets plus twenty percent of 52 the breaks; for exotic wagers seven and one-half percent plus twenty 53 percent of the breaks, and for super exotic bets seven and one-half 54 percent plus fifty percent of the breaks. 55 For the period April first, two thousand one through December thirty- 56 first, two thousand [twenty-four] twenty-five, such tax on all wagersS. 8309--B 18 A. 8809--B 1 shall be one and six-tenths percent, plus, in each such period, twenty 2 percent of the breaks. Payment to the New York state thoroughbred breed- 3 ing and development fund by such franchised corporation shall be one- 4 half of one percent of total daily on-track pari-mutuel pools resulting 5 from regular, multiple and exotic bets and three percent of super exotic 6 bets and for the period April first, two thousand one through December 7 thirty-first, two thousand [twenty-four] twenty-five, such payment shall 8 be seven-tenths of one percent of regular, multiple and exotic pools. 9 § 10. This act shall take effect immediately. 10 PART Q 11 Section 1. Paragraph (c) of subdivision 1 of section 471-b of the tax 12 law, as added by section 19 of part D of chapter 134 of the laws of 13 2010, is amended to read as follows: 14 (c) [Such tax on little cigars shall be at the same rate imposed on15cigarettes under this article] The tax on each little cigar shall be at 16 the rate of twenty-six and three-quarters cents and is intended to be 17 imposed only once upon the sale of any little [cigars] cigar. 18 § 2. Paragraph (iii) of subdivision a of section 471-c of the tax law, 19 as added by section 21 of part D of chapter 134 of the laws of 2010, is 20 amended to read as follows: 21 (iii) [Such tax on little cigars shall be at the same rate imposed on22cigarettes under this article] The tax on each little cigar shall be at 23 the rate of twenty-six and three-quarters cents and is intended to be 24 imposed only once upon the sale of any little [cigars] cigar. 25 § 3. This act shall take effect on the first day of the calendar month 26 next succeeding the ninetieth day after it shall have become a law. 27 PART R 28 Section 1. Paragraph (a) of subdivision 9 of section 208 of the 29 racing, pari-mutuel wagering and breeding law, as amended by section 2 30 of part QQ of chapter 59 of the laws of 2022, is amended to read as 31 follows: 32 (a) The franchised corporation shall maintain a separate account for 33 all funds held on deposit in trust by the corporation for individual 34 horsemen's accounts. Purse funds shall be paid by the corporation as 35 required to meet its purse payment obligations. Funds held in horsemen's 36 accounts shall only be released or applied as requested and directed by 37 the individual horseman. Through calendar year [two thousand twenty-38five] two thousand twenty-seven the New York Jockey Injury Compensation 39 Fund, Inc. may use up to two million dollars from the account estab- 40 lished pursuant to this subdivision to pay the annual costs required by 41 section two hundred twenty-one of this article. 42 § 2. The opening paragraph of subdivision 7 of section 221 of the 43 racing, pari-mutuel wagering and breeding law, as amended by section 1 44 of part QQ of chapter 59 of the laws of 2022, is amended to read as 45 follows: 46 In order to pay the costs of the insurance required by this section 47 and by the workers' compensation law and to carry out its other powers 48 and duties and to pay for any of its liabilities under section four- 49 teen-a of the workers' compensation law, the New York Jockey Injury 50 Compensation Fund, Inc. shall ascertain the total funding necessary and 51 establish the sums that are to be paid by all owners and trainers 52 licensed or required to be licensed under section two hundred twenty ofS. 8309--B 19 A. 8809--B 1 this article, to obtain the total funding amount required annually. In 2 order to provide that any sum required to be paid by an owner or trainer 3 is equitable, the fund shall establish payment schedules that reflect 4 such factors as are appropriate, including where applicable, the 5 geographic location of the racing corporation at which the owner or 6 trainer participates, the duration of such participation, the amount of 7 any purse earnings, the number of horses involved, or such other factors 8 as the fund shall determine to be fair, equitable and in the best inter- 9 ests of racing. In no event shall the amount deducted from an owner's 10 share of purses exceed two percent; provided, however, through calendar 11 year [two thousand twenty-five] two thousand twenty-seven, the New York 12 Jockey Injury Compensation Fund, Inc. may use up to two million dollars 13 from the account established pursuant to subdivision nine of section two 14 hundred eight of this article to pay the annual costs required by this 15 section and the funds from such account shall not count against the two 16 percent of purses deducted from an owner's share of purses. The amount 17 deducted from an owner's share of purses shall not exceed one percent 18 after April first, [two thousand twenty-four] two thousand twenty-seven. 19 In the cases of multiple ownerships and limited racing appearances, the 20 fund shall equitably adjust the sum required. 21 § 3. The opening paragraph of subdivision 2 of section 228 of the 22 racing, pari-mutuel wagering and breeding law, as amended by chapter 198 23 of the laws of 2023, is amended to read as follows: 24 The commission shall, as a condition of racing, require any franchised 25 corporation and every other corporation subject to its jurisdiction to 26 withhold one percent of all purses, except that for the franchised 27 corporation, starting on September first, two thousand seven and contin- 28 uing through August thirty-first, [two thousand twenty-four] two thou- 29 sand twenty-seven, two percent of all purses shall be withheld, and, in 30 the case of the franchised corporation, to pay such sum to the 31 horsemen's organization or its successor that was first entitled to 32 receive payments pursuant to this section in accordance with rules of 33 the commission adopted effective November third, nineteen hundred eight- 34 y-three representing at least fifty-one percent of the owners and train- 35 ers using the facilities of such franchised corporation, on the condi- 36 tion that such horsemen's organization shall expend as much as is 37 necessary, but not to exceed one-half of one percent of such total sum, 38 to acquire and maintain the equipment required to establish a program at 39 a state college within this state with an approved equine science 40 program to test for the presence of steroids in horses, provided further 41 that the qualified organization shall also, in an amount to be deter- 42 mined by its board of directors, annually include in its expenditures 43 for benevolence programs, funds to support an organization providing 44 services necessary to backstretch employees, and, in the case of every 45 other corporation, to pay such one percent sum of purses to the 46 horsemen's organization or its successor that was first entitled to 47 receive payments pursuant to this section in accordance with rules of 48 the commission adopted effective May twenty-third, nineteen hundred 49 eighty-six representing at least fifty-one percent of the owners and 50 trainers using the facilities of such corporation. 51 § 4. This act shall take effect immediately. 52 PART SS. 8309--B 20 A. 8809--B 1 Section 1. Subdivision 1 of section 220 of the racing, pari-mutuel 2 wagering and breeding law, as amended by chapter 243 of the laws of 3 2020, is amended to read as follows: 4 1. For the purpose of maintaining a proper control over race meetings 5 conducted pursuant to sections two hundred five and two hundred six of 6 this article, the commission shall license owners, which term shall be 7 deemed to include part-owners and lessees, trainers, assistant trainers 8 and jockeys, jockey agents, stable employees, and such other persons as 9 the commission may by rule prescribe at running races and at steeple- 10 chases, provided, however, that no such license shall be required for 11 seasonal employees hired solely to work for no longer than six weeks 12 during the summer meet at Saratoga racetrack, and any such other times 13 as race dates historically assigned to Belmont Park are conducted at the 14 Saratoga racetrack in two thousand twenty-four and two thousand twenty- 15 five as approved in writing by the commission. In the event that a 16 proposed licensee is other than a natural person, the commission shall 17 require by regulation disclosure of the names and addresses of all 18 owners of an interest in such entity. The commission may retain, employ 19 or appoint such officers, employees and agents, as it may deem necessary 20 to receive, examine and make recommendations, for the consideration of 21 the commission, in respect of applications for such licenses; prescribe 22 their duties in connection therewith, and fix their compensation there- 23 for within the limitations prescribed by law. Each applicant for a 24 license shall pay to the commission an annual license fee as follows: 25 owner's license, if a renewal, fifty dollars, and if an original appli- 26 cation, one hundred dollars; trainer's license, thirty dollars; assist- 27 ant trainer's license, thirty dollars; jockey's license, fifty dollars; 28 jockey agent's license, twenty dollars; and stable employee's license, 29 five dollars. Each applicant may apply for a two-year or three-year 30 license by payment to the commission of the appropriate multiple of the 31 annual fee. The commission may by rule fix the license fees to be paid 32 by other persons required to be licensed by the rules of the commission, 33 not to exceed thirty dollars per category. The application for the 34 license shall be in writing in such form as the commission may 35 prescribe, and contain such information as the commission may require. 36 The commission shall henceforth cause all applicants for licenses to be 37 photographed and fingerprinted and may issue identification cards to 38 licensees. Such fingerprints shall be submitted to the division of crim- 39 inal justice services for a state criminal history record check, as 40 defined in subdivision one of section three thousand thirty-five of the 41 education law, and may be submitted to the federal bureau of investi- 42 gation for a national criminal history record check. A fee equal to the 43 actual cost of issuance shall be charged for the initial issuance of 44 such identification cards. Each such license unless revoked for cause 45 shall be for the period of no more than one, two or three years, deter- 46 mined by rule of the commission, expiring on the applicant's birth date. 47 Licenses current on the effective date of this provision shall not be 48 reduced in duration by this provision. An applicant who applies for a 49 license that, if issued, would take effect less than six months prior to 50 the applicant's birth date may, by payment of a fifty percent higher 51 fee, receive a license which shall not expire until the applicant's 52 second succeeding birth date. All receipts of the commission derived 53 from the operation of this section shall be paid by it into the state 54 treasury on or before the tenth day of each month. All officials 55 connected with the actual conduct of racing shall be subject to approval 56 by the commission.S. 8309--B 21 A. 8809--B 1 § 2. This act shall take effect immediately and shall expire and be 2 deemed repealed December 31, 2026. 3 PART T 4 Section 1. Subdivision 2 of section 490 of the tax law, as amended by 5 chapter 92 of the laws of 2021, is amended to read as follows: 6 2. There is hereby imposed an excise tax on the gross receipts from 7 the sale of medical cannabis by a registered organization to a certified 8 patient or designated caregiver, to be paid by the registered organiza- 9 tion, at the rate of [seven] three and fifteen-hundredths percent. The 10 tax imposed by this article shall be charged against and be paid by the 11 registered organization and shall not be added as a separate charge or 12 line item on any sales slip, invoice, receipt or other statement or 13 memorandum of the price given to the retail customer. 14 § 2. Subdivision 4 of section 89-h of the state finance law, as 15 amended by section 28 of part FFF of chapter 56 of the laws of 2022, is 16 amended to read as follows: 17 4. The moneys of the medical cannabis trust fund, following appropri- 18 ation by the legislature, shall be allocated upon a certificate of 19 approval of availability by the director of the budget as follows: (a) 20 [Twenty-two and five-tenths] fifty percent of the monies shall be trans- 21 ferred to the counties in New York state in which the medical cannabis 22 was manufactured and allocated in proportion to the gross sales origi- 23 nating from medical cannabis manufactured in each such county; and (b) 24 [twenty-two and five-tenths] fifty percent of the moneys shall be trans- 25 ferred to the counties in New York state in which the medical cannabis 26 was dispensed and allocated in proportion to the gross sales occurring 27 in each such county[; (c) five percent of the monies shall be trans-28ferred to the office of addiction services and supports, which shall use29that revenue for additional drug abuse prevention, counseling and treat-30ment services; (d) five percent of the revenue received by the depart-31ment shall be transferred to the division of criminal justice services,32which shall use that revenue for a program of discretionary grants to33state and local law enforcement agencies that demonstrate a need relat-34ing to article three of the cannabis law; said grants could be used for35personnel costs of state and local law enforcement agencies; and (e)36forty-five percent of the monies shall be deposited to the New York37state cannabis revenue fund]. For purposes of this subdivision, the city 38 of New York shall be deemed to be a county. 39 § 3. This act shall take effect June 1, 2024; provided, however, that: 40 (a) the amendments to subdivision 2 of section 490 of the tax law made 41 by section one of this act shall not affect the repeal of such section 42 and shall be deemed repealed therewith; and 43 (b) the amendments to subdivision 4 of section 89-h of the state 44 finance law made by section two of this act shall not affect the repeal 45 of such section and shall be deemed repealed therewith. 46 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 47 sion, section or part of this act shall be adjudged by any court of 48 competent jurisdiction to be invalid, such judgment shall not affect, 49 impair, or invalidate the remainder thereof, but shall be confined in 50 its operation to the clause, sentence, paragraph, subdivision, section 51 or part thereof directly involved in the controversy in which such judg- 52 ment shall have been rendered. It is hereby declared to be the intent of 53 the legislature that this act would have been enacted even if such 54 invalid provisions had not been included herein.S. 8309--B 22 A. 8809--B 1 § 3. This act shall take effect immediately provided, however, that 2 the applicable effective date of Parts A through T of this act shall be 3 as specifically set forth in the last section of such Parts.