S 9009: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2026-2027 state fiscal year; sets forth a child and dependent care credit for taxable years beginning on or after January 1, 2026 (Part A); excludes up to twenty-five thousand dollars in qualified tips earned from New York adjusted gross income (Part B); retains the deductibility of certain charitable contributions (Part C); standardizes the definition of farmer for various tax credits (Part D); extends the current corporate tax rates (Part E); provides for exemptions from calculation of income in certain cases, provided such exemptions were not already applied in the calculation of income under federal provisions (Part F); relates to the treatment of certain deductions allowable under the internal revenue code in calculating New York city taxable income for corporations for taxable years beginning after December 31, 2024 (Part G); extends provisions of law relating to the commercial security tax credit from January 1, 2026 until January 1, 2029 (Part I); enhances the New York city musical and theatrical production credit (Part J); defines the term "alternative nicotine product"; makes provisions relating to the possession for sale, sale, and taxation of alternative nicotine products (Part K); extends the real estate transfer tax rate reduction for conveyances of real property to existing real estate investment funds (Part M); directs the commissioner of taxation and finance to establish a sales and use tax reregistration program and a sales and use tax penalty and interest discount program (Part N); extends the sales tax exemption for vending machines (Part P); extends the residential energy storage sales tax exemption for two years (Part Q); relates to the petroleum business tax filing deadline for commercial vessel operators (Part R); extends the alternative fuels tax exemptions (Part S); makes technical corrections to the STAR exemption and STAR credit programs (Part T); extends the assessment ceiling for local public utility mass real property to January 1, 2031; clarifies the powers of the state board of real property tax services (Part U); relates to rent exemptions and rent increase exemptions and property tax exemptions for certain persons; extends provisions of law relating thereto (Subpart A); provides notice to tenants regarding rent increase exemptions (Subpart B)(Part V); conforms pari-mutuel tax provisions; makes technical corrections (Part W); extends the utilization of funds in off-track betting corporations' capital acquisition funds (Part X); extends certain provisions of law relating 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, distributions of wagers, and the imposition of certain taxes related thereto (Part Y); extends certain seasonal employee licensing requirements for additional race dates at Saratoga Racetrack for the year 2026 (Part Z); excludes certain distributions on federal elections for the purposes of calculating federal adjusted gross income (Part AA); relates to tax credits for donations to food pantries made by farmers (Part BB); relates to the sales tax exemption for meal donations; authorizes students to donate unused meal funds, meals or meal points to other students enrolled in such school, college or university who are facing food insecurity; extends the authorization of such sales tax exemption (Part CC); establishes additional qualifications for the board members of regional off-track betting corporations (Part DD); relates to the real property tax exemption for disabled veterans (Part EE); establishes a protecting our wallets energy rebate (POWER) credit (Part FF); relates to standardbred total carbon dioxide (TCO2) on-track drug testing (Part GG); authorizes a city having a population of one million or more to impose a surcharge on property that does not serve as a primary residence (Part HH); authorizes additional vendor fees to vendor tracks and video lottery gaming facilities; directs the gaming commission to conduct a study on video lottery terminal vendor fees and commercial casino tax rates (Part II); extends the duration of certain brownfield redevelopment and remediation tax credits with respect to certain sites (Part JJ).

  
  STATE OF NEW YORK ________________________________________________________________________ S. 9009 A. 10009  SENATE - ASSEMBLY January 21, 2026 ___________ 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, in relation to enhancing and reforming the child and dependent care credit (Part A); to amend the tax law, in relation to excluding certain tips earned from New York adjusted gross income (Part B); to amend the tax law, in relation to retaining the deductibility of certain charitable contributions (Part C); to amend the tax law, in relation to standardizing the definition of farmer for various credits; and to repeal certain provisions of such law relating thereto (Part D); to amend the tax law, in relation to extending the current corporate tax rates (Part E); to amend the tax law, in relation to exemptions from calculation of income in certain cases (Part F); to amend the administrative code of the city of New York, in relation to the treatment of certain deductions allowable under the internal revenue code in calculating New York city taxable income for corporations (Part G); to amend the tax law, in relation to the pass- through entity tax and New York city pass-through entity tax election deadline (Part H); to amend the executive law and the tax law, in relation to extending the commercial security tax credit (Part I); to amend the tax law, in relation to enhancing the New York city musical and theatrical production tax credit (Part J); to amend the tax law and the state finance law, in relation to alternative nicotine products (Part K); to amend the tax law and the public health law, in relation to the taxation of vapor products (Part L); to amend the tax law and the administrative code of the city of New York, in relation to extending the real estate transfer tax rate reduction for convey- ances of real property to existing real estate investment funds (Part M); establishing a sales and use tax reregistration program and a sales and use tax penalty and interest discount program (Part N); to amend the tax law, in relation to establishing a sales tax exemption for electric vehicle charging stations (Part O); to amend the tax law, in relation to extending the sales tax exemption for certain sales EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-01-6 
 S. 9009 2 A. 10009 made through a vending machine for three years (Part P); to amend part PP of chapter 58 of the laws of 2024 amending the tax law relating to establishing a sales tax exemption for residential energy storage, in relation to extending the residential energy storage exemption for two years (Part Q); to amend the tax law, in relation to the petroleum business tax filing deadline for commercial vessel operators (Part R); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and cred- its from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions (Part S); to amend the real property tax law and the tax law, in relation to making technical corrections to the STAR exemption and STAR credit programs; and to repeal certain provisions of the real property tax law relating there- to (Part T); to amend chapter 475 of the laws of 2013 amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2031 (Part U); to amend the real property tax law, in relation to expanding the rent increase exemption for senior citizens and persons with disa- bilities; to amend part U of chapter 55 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by senior citizens, in relation to the effectiveness thereof; to amend chapter 129 of the laws of 2014, amending the real property tax law relating to the tax abatement and exemption for rent regulated and rent controlled property occupied by persons with disabilities, in relation to the effectiveness thereof; and providing for the repeal of certain provisions upon expiration thereof (Part V); to amend the racing, pari-mutuel wagering and breeding law, in relation to conforming pari- mutuel tax provisions (Part W); to amend the racing, pari-mutuel wagering and breeding law, in relation to extending the utilization of funds in the Capital off-track betting corporations' capital acquisi- tion funds (Part X); 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; 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 Y); and to amend the racing, pari-mutuel wagering and breeding law, in relation to extend- ing certain seasonal employee licensing requirements for additional race dates at Saratoga Racetrack (Part Z) 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 2026-2027 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through Z. 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 
 S. 9009 3 A. 10009 1 component, shall be deemed to mean and refer to the corresponding 2 section of the Part in which it is found. Section three of this act sets 3 forth the general effective date of this act. 4 PART A 5 Section 1. Paragraph 1 of subsection (c) of section 606 of the tax 6 law, as amended by section 1 of part M of chapter 63 of the laws of 7 2000, is amended to read as follows: 8 (1) [A] For taxable years beginning before January first, two thousand 9 twenty-six, a taxpayer shall be allowed a credit as provided herein 10 equal to the applicable percentage of the credit allowable under section 11 twenty-one of the internal revenue code for the same taxable year (with- 12 out regard to whether the taxpayer in fact claimed the credit under such 13 section twenty-one for such taxable year). The applicable percentage 14 shall be the sum of (i) twenty percent and (ii) a multiplier multiplied 15 by a fraction. For taxable years beginning in nineteen hundred ninety- 16 six and nineteen hundred ninety-seven, the numerator of such fraction 17 shall be the lesser of (i) four thousand dollars or (ii) fourteen thou- 18 sand dollars less the New York adjusted gross income for the taxable 19 year, provided, however, the numerator shall not be less than zero. For 20 the taxable year beginning in nineteen hundred ninety-eight, the numera- 21 tor of such fraction shall be the lesser of (i) thirteen thousand 22 dollars or (ii) thirty thousand dollars less the New York adjusted gross 23 income for the taxable year, provided, however, the numerator shall not 24 be less than zero. For taxable years beginning in nineteen hundred nine- 25 ty-nine, the numerator of such fraction shall be the lesser of (i) 26 fifteen thousand dollars or (ii) fifty thousand dollars less the New 27 York adjusted gross income for the taxable year, provided, however, the 28 numerator shall not be less than zero. For taxable years beginning after 29 nineteen hundred ninety-nine, the numerator of such fraction shall be 30 the lesser of (i) fifteen thousand dollars or (ii) sixty-five thousand 31 dollars less the New York adjusted gross income for the taxable year, 32 provided, however, the numerator shall not be less than zero. The denom- 33 inator of such fraction shall be four thousand dollars for taxable years 34 beginning in nineteen hundred ninety-six and nineteen hundred ninety- 35 seven, thirteen thousand dollars for the taxable year beginning in nine- 36 teen hundred ninety-eight, and fifteen thousand dollars for taxable 37 years beginning after nineteen hundred ninety-eight. The multiplier 38 shall be ten percent for taxable years beginning in nineteen hundred 39 ninety-six, forty percent for taxable years beginning in nineteen 40 hundred ninety-seven, and eighty percent for taxable years beginning 41 after nineteen hundred ninety-seven. Provided, however, for taxable 42 years beginning after nineteen hundred ninety-nine, for a person whose 43 New York adjusted gross income is less than forty thousand dollars, such 44 applicable percentage shall be equal to (i) one hundred percent, plus 45 (ii) ten percent multiplied by a fraction whose numerator shall be the 46 lesser of (i) fifteen thousand dollars or (ii) forty thousand dollars 47 less the New York adjusted gross income for the taxable year, provided 48 such numerator shall not be less than zero, and whose denominator shall 49 be fifteen thousand dollars. Provided, further, that if the reversion 50 event, as defined in this paragraph, occurs, the applicable percentage 51 shall, for taxable years ending on or after the date on which the rever- 52 sion event occurred, be determined using the rules specified in this 53 paragraph applicable to taxable years beginning in nineteen hundred 54 ninety-nine. The reversion event shall be deemed to have occurred on the 
 S. 9009 4 A. 10009 1 date on which federal action, including but not limited to, administra- 2 tive, statutory or regulatory changes, materially reduces or eliminates 3 New York state's allocation of the federal temporary assistance for 4 needy families block grant, or materially reduces the ability of the 5 state to spend federal temporary assistance for needy families block 6 grant funds for the credit for certain household and dependent care 7 services necessary for gainful employment or to apply state general fund 8 spending on the credit for certain household and dependent care services 9 necessary for gainful employment toward the temporary assistance for 10 needy families block grant maintenance of effort requirement, and the 11 commissioner of the office of temporary and disability assistance shall 12 certify the date of such event to the commissioner, the director of the 13 division of the budget, the speaker of the assembly and the temporary 14 president of the senate. 15 § 2. Section 606 of the tax law is amended by adding a new subsection 16 (c-2) to read as follows: 17 (c-2) New York state child and dependent care credit. (1) For taxable 18 years beginning on or after January first, two thousand twenty-six, an 19 eligible taxpayer shall be allowed a credit as provided herein to enable 20 the eligible taxpayer to be gainfully employed or a full-time student at 21 an educational institution for any period of the taxable year. If the 22 amount of the credit allowed under this subsection for any taxable year 23 shall exceed the eligible taxpayer's tax for such year, the excess shall 24 be treated as an overpayment of tax to be credited or refunded in 25 accordance with the provisions of six hundred eighty-six of this arti- 26 cle, provided, however, that no interest shall be paid thereon. 27 (2) For the purposes of this subsection: 28 (A) "Eligible taxpayer" shall mean a resident individual as defined in 29 paragraph one of subsection (b) of section six hundred five of this 30 article who, during the taxable year: (i) is not a dependent of another 31 taxpayer pursuant to section one hundred fifty-two of the internal 32 revenue code; and (ii) is not a resident married individual filing a 33 separate return unless such individual meets the conditions in paragraph 34 four of subdivision (e) of section twenty-one of the internal revenue 35 code. Provided, however, where married individuals file a joint federal 36 return, but are required to determine their New York taxes separately 37 pursuant to subsection (b) of section six hundred fifty-one of this 38 article, the credit allowed pursuant to this subsection may only be 39 applied against the tax imposed on the spouse with the lower New York 40 adjusted gross income. 41 (B) "Qualifying individual" shall mean an individual who: (i) is under 42 the age of thirteen at the close of the taxable year or is physically or 43 mentally incapable of caring for themselves during the taxable year; 44 (ii) resides with the eligible taxpayer for more than one-half of the 45 taxable year; and (iii) is claimed as a dependent pursuant to section 46 one hundred fifty-two of the internal revenue code, or could otherwise 47 be claimed as a dependent. Provided, a qualifying individual shall also 48 include an individual where a noncustodial parent claims such individual 49 under subsection (e) of section one hundred fifty-two of the internal 50 revenue code or the individual is the eligible taxpayer's spouse who is 51 physically or mentally incapable of caring for themselves during the 52 taxable year and resides with the eligible taxpayer for more than one- 53 half of the taxable year. 54 (C) "Earned income" shall mean the wages, salaries, tips and other 55 employee compensation, and those items of gross income which are inclu- 56 dible in the computation of net earnings from self-employment. 
 S. 9009 5 A. 10009 1 (D) (i) "Qualifying expenses" shall mean the sum of the amount 2 incurred and paid in the taxable year directly by an eligible taxpayer 3 for: a. services provided in and about the eligible taxpayer's resi- 4 dence to provide care for any qualifying individual, including such 5 expenses for the room and board of any such caregiver; and b. non-over- 6 night services provided outside of the eligible taxpayer's residence to 7 provide care for any qualifying individual; provided, however, that 8 amounts incurred or paid for which the primary purpose is educational 9 shall not be included. 10 (ii) Provided, however, "qualifying expenses" shall not include: a. 11 any amounts paid whereby the taxpayer receives reimbursement or are paid 12 from funds provided by a government entity, dependent care account, or 13 other third party; b. any amounts paid to a dependent of the taxpayer 14 for which the taxpayer or the taxpayer's spouse is entitled to a 15 deduction for the taxable year under subsection (c) of section one 16 hundred fifty-one of the internal revenue code; or c. any amounts paid 17 to a child of the taxpayer as defined in paragraph one of subsection (f) 18 of section one hundred fifty-two of the internal revenue code who has 19 not attained the age of nineteen at the close of the taxable year. 20 (iii) For the purposes of the credit provided pursuant to this 21 subsection, an eligible taxpayer's qualifying expenses shall not exceed: 22 a. three thousand dollars, in the case of an eligible taxpayer with 23 one qualifying individual; 24 b. six thousand dollars, in the case of an eligible taxpayer with two 25 qualifying individuals; 26 c. seven thousand five hundred dollars, in the case of an eligible 27 taxpayer with three qualifying individuals; 28 d. eight thousand five hundred dollars, in the case of an eligible 29 taxpayer with four qualifying individuals; and 30 e. nine thousand dollars, in the case of an eligible taxpayer with 31 five or more qualifying individuals. 32 Provided, further, that an eligible taxpayer's qualifying expenses 33 shall not exceed such eligible taxpayer's earned income as defined in 34 subparagraph (C) of this paragraph, or in the case of a married eligible 35 taxpayer filing a joint return, the lesser of the earned income of each 36 spouse determined separately. 37 (E) "Applicable percentage" shall mean: (i) fifty-five percent in the 38 case of an eligible taxpayer with a New York adjusted gross income 39 determined pursuant to section six hundred twelve of this article of 40 fifteen thousand dollars or less; or (ii) fifty-five percent reduced by 41 twenty-five hundred thousandths of a percentage point for each dollar of 42 an eligible taxpayer's New York adjusted gross income determined pursu- 43 ant to section six hundred twelve of this article in excess of fifteen 44 thousand dollars. Provided, however, that the applicable percentage for 45 an eligible taxpayer shall not be reduced below four percent. 46 (3) The amount of the credit allowed to an eligible taxpayer under 47 this subsection shall be the product of the eligible taxpayer's qualify- 48 ing expenses determined pursuant to subparagraph (D) of paragraph two of 49 this subsection and the applicable percentage determined pursuant to 50 subparagraph (E) of paragraph two of this subsection. 51 (4) To be eligible for the credit provided by this subsection, an 52 eligible taxpayer shall provide the following information to the satis- 53 faction of the commissioner: (i) the amount of qualifying expenses; (ii) 54 identifying information related to the care provider; (iii) identifying 55 information related to the qualifying individual for whom the expenses 56 were incurred; and (iv) any other information as required. 
 S. 9009 6 A. 10009 1 (5) Any references to the internal revenue code in this subsection 2 shall be to the internal revenue code as it existed prior to January 3 first, two thousand twenty-five. 4 § 3. Paragraph 3 of subsection (e) of section 697 of the tax law, as 5 amended by chapter 284 of the laws of 2016, is amended to read as 6 follows: 7 (3) Nothing herein shall be construed to prohibit the department, its 8 officers or employees from furnishing information to the office of 9 temporary and disability assistance relating to the payment of the cred- 10 it for certain household and dependent care services necessary for gain- 11 ful employment under subsection (c) of section six hundred six of this 12 article, the New York state child and dependent care credit under 13 subsection (c-2) of section six hundred six of this article, and the 14 earned income credit under subsection (d) of section six hundred six of 15 this article and the enhanced earned income credit under subsection 16 (d-1) of section six hundred six of this article, or pursuant to a local 17 law enacted by a city having a population of one million or more pursu- 18 ant to subsection (f) of section thirteen hundred ten of this chapter, 19 only to the extent necessary to calculate qualified state expenditures 20 under paragraph seven of subdivision (a) of section four hundred nine of 21 the federal social security act or to document the proper expenditure of 22 federal temporary assistance for needy families funds under section four 23 hundred three of such act. The office of temporary and disability 24 assistance may redisclose such information to the United States depart- 25 ment of health and human services only to the extent necessary to calcu- 26 late such qualified state expenditures or to document the proper expend- 27 iture of such federal temporary assistance for needy families funds. 28 Nothing herein shall be construed to prohibit the delivery by the 29 commissioner to a commissioner of jurors, appointed pursuant to section 30 five hundred four of the judiciary law, or, in counties within cities 31 having a population of one million or more, to the county clerk of such 32 county, or to the clerk of the court or jury administrator of a United 33 States district court appointed pursuant to title twenty-eight of the 34 United States Code, section 1836(b)(2), of a mailing list of individuals 35 to whom income tax forms are mailed by the commissioner for the sole 36 purpose of compiling a list of prospective jurors as provided in article 37 sixteen of the judiciary law or title twenty-eight of the United States 38 Code. Provided, however, such delivery shall only be made pursuant to an 39 order of the chief administrator of the courts, appointed pursuant to 40 section two hundred ten of the judiciary law or an order of a chief 41 judge of any United States district court in New York State. No such 42 order may be issued unless such chief administrator or chief judge of 43 such United States district court is satisfied that such mailing list is 44 needed to compile a proper list of prospective jurors for the county or 45 such United States district court for which such order is sought and 46 that, in view of the responsibilities imposed by the various laws of the 47 state on the department, it is reasonable to require the commissioner to 48 furnish such list. Such order shall provide that such list shall be used 49 for the sole purpose of compiling a list of prospective jurors and that 50 such commissioner of jurors, or such county clerk, or clerk of the court 51 or jury administrator of such United States district court shall take 52 all necessary steps to insure that the list is kept confidential and 53 that there is no unauthorized use or disclosure of such list. Further- 54 more, nothing herein shall be construed to prohibit the delivery to a 55 taxpayer or [his or her] their duly authorized representative of a 56 certified copy of any return or report filed in connection with [his or 
 S. 9009 7 A. 10009 1 her] their tax or to prohibit the publication of statistics so classi- 2 fied as to prevent the identification of particular reports or returns 3 and the items thereof, or the inspection by the attorney general or 4 other legal representatives of the state of the report or return of any 5 taxpayer or of any employer filed under section one hundred 6 seventy-one-h of this chapter, where such taxpayer or employer shall 7 bring action to set aside or review the tax based thereon, or against 8 whom an action or proceeding under this chapter or under this chapter 9 and article eighteen of the labor law has been recommended by the 10 commissioner, the commissioner of labor with respect to unemployment 11 insurance matters, or the attorney general or has been instituted, or 12 the inspection of the reports or returns required under this article by 13 the comptroller or duly designated officer or employee of the state 14 department of audit and control, for purposes of the audit of a refund 15 of any tax paid by a taxpayer under this article, or the furnishing to 16 the state department of labor of unemployment insurance information 17 obtained or derived from quarterly combined withholding, wage reporting 18 and unemployment insurance returns required to be filed by employers 19 pursuant to paragraph four of subsection (a) of section six hundred 20 seventy-four of this article, for purposes of administration of such 21 department's unemployment insurance program, employment services 22 program, federal and state employment and training programs, employment 23 statistics and labor market information programs, worker protection 24 programs, federal programs for which the department has administrative 25 responsibility or for other purposes deemed appropriate by the commis- 26 sioner of labor consistent with the provisions of the labor law, and 27 redisclosure of such information in accordance with the provisions of 28 sections five hundred thirty-six and five hundred thirty-seven of the 29 labor law or any other applicable law, or the furnishing to the state 30 office of temporary and disability assistance of information obtained or 31 derived from New York state personal income tax returns as described in 32 paragraph (b) of subdivision two of section one hundred seventy-one-g of 33 this chapter for the purpose of reviewing support orders enforced pursu- 34 ant to title six-A of article three of the social services law to aid in 35 the determination of whether such orders should be adjusted, or the 36 furnishing of information obtained from the reports required to be 37 submitted by employers regarding newly hired or re-hired employees 38 pursuant to section one hundred seventy-one-h of this chapter to the 39 state office of temporary and disability assistance, the state depart- 40 ment of health, the state department of labor and the workers' compen- 41 sation board for purposes of administration of the child support 42 enforcement program, verification of individuals' eligibility for one or 43 more of the programs specified in subsection (b) of section eleven 44 hundred thirty-seven of the federal social security act and for other 45 public assistance programs authorized by state law, and administration 46 of the state's employment security and workers' compensation programs, 47 and to the national directory of new hires established pursuant to 48 section four hundred fifty-three-A of the federal social security act 49 for the purposes specified in such section, or the furnishing to the 50 state office of temporary and disability assistance of the amount of an 51 overpayment of income tax and interest thereon certified to the comp- 52 troller to be credited against past-due support pursuant to section one 53 hundred seventy-one-c of this chapter and of the name and social securi- 54 ty number of the taxpayer who made such overpayment, or the disclosing 55 to the commissioner of finance of the city of New York, pursuant to 56 section one hundred seventy-one-l of this chapter, of the amount of an 
 S. 9009 8 A. 10009 1 overpayment and interest thereon certified to the comptroller to be 2 credited against a city of New York tax warrant judgment debt and of the 3 name and social security number of the taxpayer who made such overpay- 4 ment, or the furnishing to the New York state higher education services 5 corporation of the amount of an overpayment of income tax and interest 6 thereon certified to the comptroller to be credited against the amount 7 of a default in repayment of any education loan debt, including judg- 8 ments, owed to the federal or New York state government that is being 9 collected by the New York state higher education services corporation, 10 and of the name and social security number of the taxpayer who made such 11 overpayment, or the furnishing to the state department of health of the 12 information required by paragraph (f) of subdivision two and subdivision 13 two-a of section two thousand five hundred eleven of the public health 14 law and by subdivision eight of section three hundred sixty-six-a of the 15 social services law, or the furnishing to the state university of New 16 York or the city university of New York respectively or the attorney 17 general on behalf of such state or city university the amount of an 18 overpayment of income tax and interest thereon certified to the comp- 19 troller to be credited against the amount of a default in repayment of a 20 state university loan pursuant to section one hundred seventy-one-e of 21 this chapter and of the name and social security number of the taxpayer 22 who made such overpayment, or the disclosing to a state agency, pursuant 23 to section one hundred seventy-one-f of this chapter, of the amount of 24 an overpayment and interest thereon certified to the comptroller to be 25 credited against a past-due legally enforceable debt owed to such agency 26 and of the name and social security number of the taxpayer who made such 27 overpayment, or the furnishing of employee and employer information 28 obtained through the wage reporting system, pursuant to section one 29 hundred seventy-one-a of this chapter, as added by chapter five hundred 30 forty-five of the laws of nineteen hundred seventy-eight, to the state 31 office of temporary and disability assistance, the department of health 32 or to the state office of the medicaid inspector general for the purpose 33 of verifying eligibility for and entitlement to amounts of benefits 34 under the social services law or similar law of another jurisdiction, 35 locating absent parents or other persons legally responsible for the 36 support of applicants for or recipients of public assistance and care 37 under the social services law and persons legally responsible for the 38 support of a recipient of services under section one hundred eleven-g of 39 the social services law and, in appropriate cases, establishing support 40 obligations pursuant to the social services law and the family court act 41 or similar provision of law of another jurisdiction for the purpose of 42 evaluating the effect on earnings of participation in employment, train- 43 ing or other programs designed to promote self-sufficiency authorized 44 pursuant to the social services law by current recipients of public 45 assistance and care and by former applicants and recipients of public 46 assistance and care, (except that with regard to former recipients, 47 information which relates to a particular former recipient shall be 48 provided with client identifying data deleted), to the state office of 49 temporary and disability assistance for the purpose of determining the 50 eligibility of any child in the custody, care and custody or custody and 51 guardianship of a local social services district or of the office of 52 children and family services for federal payments for foster care and 53 adoption assistance pursuant to the provisions of title IV-E of the 54 federal social security act by providing information with respect to the 55 parents, the stepparents, the child and the siblings of the child who 56 were living in the same household as such child during the month that 
 S. 9009 9 A. 10009 1 the court proceedings leading to the child's removal from the household 2 were initiated, or the written instrument transferring care and custody 3 of the child pursuant to the provisions of section three hundred fifty- 4 eight-a or three hundred eighty-four-a of the social services law was 5 signed, provided however that the office of temporary and disability 6 assistance shall only use the information obtained pursuant to this 7 subdivision for the purpose of determining the eligibility of such child 8 for federal payments for foster care and adoption assistance pursuant to 9 the provisions of title IV-E of the federal social security act, and to 10 the state department of labor, or other individuals designated by the 11 commissioner of labor, for the purpose of the administration of such 12 department's unemployment insurance program, employment services 13 program, federal and state employment and training programs, employment 14 statistics and labor market information programs, worker protection 15 programs, federal programs for which the department has administrative 16 responsibility or for other purposes deemed appropriate by the commis- 17 sioner of labor consistent with the provisions of the labor law, and 18 redisclosure of such information in accordance with the provisions of 19 sections five hundred thirty-six and five hundred thirty-seven of the 20 labor law, or the furnishing of information, which is obtained from the 21 wage reporting system operated pursuant to section one hundred seventy- 22 one-a of this chapter, as added by chapter five hundred forty-five of 23 the laws of nineteen hundred seventy-eight, to the state office of 24 temporary and disability assistance so that it may furnish such informa- 25 tion to public agencies of other jurisdictions with which the state 26 office of temporary and disability assistance has an agreement pursuant 27 to paragraph (h) or (i) of subdivision three of section twenty of the 28 social services law, and to the state office of temporary and disability 29 assistance for the purpose of fulfilling obligations and responsibil- 30 ities otherwise incumbent upon the state department of labor, under 31 section one hundred twenty-four of the federal family support act of 32 nineteen hundred eighty-eight, by giving the federal parent locator 33 service, maintained by the federal department of health and human 34 services, prompt access to such information as required by such act, or 35 to the state department of health to verify eligibility under the child 36 health insurance plan pursuant to subdivisions two and two-a of section 37 two thousand five hundred eleven of the public health law, to verify 38 eligibility under the medical assistance and family health plus programs 39 pursuant to subdivision eight of section three hundred sixty-six-a of 40 the social services law, and to verify eligibility for the program for 41 elderly pharmaceutical insurance coverage under title three of article 42 two of the elder law, or to the office of vocational and educational 43 services for individuals with disabilities of the education department, 44 the commission for the blind and any other state vocational rehabili- 45 tation agency, for purposes of obtaining reimbursement from the federal 46 social security administration for expenditures made by such office, 47 commission or agency on behalf of disabled individuals who have achieved 48 economic self-sufficiency or to the higher education services corpo- 49 ration for the purpose of assisting the corporation in default 50 prevention and default collection of education loan debt, including 51 judgments, owed to the federal or New York state government; provided, 52 however, that such information shall be limited to the names, social 53 security numbers, home and/or business addresses, and employer names of 54 defaulted or delinquent student loan borrowers, or to the office of the 55 state comptroller for purposes of verifying the income of a retired 
 S. 9009 10 A. 10009 1 member of a retirement system or pension plan administered by the state 2 or any of its political subdivisions who returns to public employment. 3 Provided, however, that with respect to employee information the 4 office of temporary and disability assistance shall only be furnished 5 with the names, social security account numbers and gross wages of those 6 employees who are (A) applicants for or recipients of benefits under the 7 social services law, or similar provision of law of another jurisdiction 8 (pursuant to an agreement under subdivision three of section twenty of 9 the social services law) or, (B) absent parents or other persons legally 10 responsible for the support of applicants for or recipients of public 11 assistance and care under the social services law or similar provision 12 of law of another jurisdiction (pursuant to an agreement under subdivi- 13 sion three of section twenty of the social services law), or (C) persons 14 legally responsible for the support of a recipient of services under 15 section one hundred eleven-g of the social services law or similar 16 provision of law of another jurisdiction (pursuant to an agreement under 17 subdivision three of section twenty of the social services law), or (D) 18 employees about whom wage reporting system information is being 19 furnished to public agencies of other jurisdictions, with which the 20 state office of temporary and disability assistance has an agreement 21 pursuant to paragraph (h) or (i) of subdivision three of section twenty 22 of the social services law, or (E) employees about whom wage reporting 23 system information is being furnished to the federal parent locator 24 service, maintained by the federal department of health and human 25 services, for the purpose of enabling the state office of temporary and 26 disability assistance to fulfill obligations and responsibilities other- 27 wise incumbent upon the state department of labor, under section one 28 hundred twenty-four of the federal family support act of nineteen 29 hundred eighty-eight, and, only if, the office of temporary and disabil- 30 ity assistance certifies to the commissioner that such persons are such 31 applicants, recipients, absent parents or persons legally responsible 32 for support or persons about whom information has been requested by a 33 public agency of another jurisdiction or by the federal parent locator 34 service and further certifies that in the case of information requested 35 under agreements with other jurisdictions entered into pursuant to 36 subdivision three of section twenty of the social services law, that 37 such request is in compliance with any applicable federal law. Provided, 38 further, that where the office of temporary and disability assistance 39 requests employee information for the purpose of evaluating the effects 40 on earnings of participation in employment, training or other programs 41 designed to promote self-sufficiency authorized pursuant to the social 42 services law, the office of temporary and disability assistance shall 43 only be furnished with the quarterly gross wages (excluding any refer- 44 ence to the name, social security number or any other information which 45 could be used to identify any employee or the name or identification 46 number of any employer) paid to employees who are former applicants for 47 or recipients of public assistance and care and who are so certified to 48 the commissioner by the commissioner of the office of temporary and 49 disability assistance. Provided, further, that with respect to employee 50 information, the department of health shall only be furnished with the 51 information required pursuant to the provisions of paragraph (f) of 52 subdivision two and subdivision two-a of section two thousand five 53 hundred eleven of the public health law and subdivision eight of section 54 three hundred sixty-six-a of the social services law, with respect to 55 those individuals whose eligibility under the child health insurance 56 plan, medical assistance program, and family health plus program is to 
 S. 9009 11 A. 10009 1 be determined pursuant to such provisions and with respect to those 2 members of any such individual's household whose income affects such 3 individual's eligibility and who are so certified to the commissioner or 4 by the department of health. Provided, further, that wage reporting 5 information shall be furnished to the office of vocational and educa- 6 tional services for individuals with disabilities of the education 7 department, the commission for the blind and any other state vocational 8 rehabilitation agency only if such office, commission or agency, as 9 applicable, certifies to the commissioner that such information is 10 necessary to obtain reimbursement from the federal social security 11 administration for expenditures made on behalf of disabled individuals 12 who have achieved self-sufficiency. Reports and returns shall be 13 preserved for three years and thereafter until the commissioner orders 14 them to be destroyed. 15 § 4. This act shall take effect immediately. 16 PART B 17 Section 1. Subsection (c) of section 612 of the tax law is amended by 18 adding a new paragraph 48 to read as follows: 19 (48) For taxable years beginning on or after January first, two thou- 20 sand twenty-six, an amount of up to twenty-five thousand dollars to the 21 extent allowed as a federal deduction pursuant to section two hundred 22 twenty-four of the internal revenue code. 23 § 2. This act shall take effect immediately. 24 PART C 25 Section 1. Subsection (g) of section 615 of the tax law, as amended by 26 section 1 of part Q of chapter 59 of the laws of 2019, paragraph 2 as 27 amended by section 1 of part A of chapter 59 of the laws of 2024, is 28 amended to read as follows: 29 (g) Notwithstanding subsection (a) of this section, the New York item- 30 ized deduction for charitable contributions shall be the amount allowed 31 under section one hundred seventy of the internal revenue code or the 32 amount allowable pursuant to paragraph three of this subsection, as 33 modified by paragraph nine of subsection (c) of this section and as 34 limited by this subsection. (1) With respect to an individual whose New 35 York adjusted gross income is over one million dollars and no more than 36 ten million dollars, the New York itemized deduction shall be an amount 37 equal to fifty percent of any charitable contribution deduction allowed 38 under section one hundred seventy of the internal revenue code or allow- 39 able pursuant to paragraph three of this subsection for taxable years 40 beginning after two thousand nine and before two thousand twenty-five. 41 With respect to an individual whose New York adjusted gross income is 42 over one million dollars, the New York itemized deduction shall be an 43 amount equal to fifty percent of any charitable contribution deduction 44 allowed under section one hundred seventy of the internal revenue code 45 or allowable pursuant to paragraph three of this subsection for taxable 46 years beginning in two thousand nine or after two thousand twenty-four. 47 (2) With respect to an individual whose New York adjusted gross income 48 is over ten million dollars, the New York itemized deduction shall be an 49 amount equal to twenty-five percent of any charitable contribution 50 deduction allowed under section one hundred seventy of the internal 51 revenue code or allowable pursuant to paragraph three of this subsection 
 S. 9009 12 A. 10009 1 for taxable years beginning after two thousand nine and ending before 2 two thousand thirty. 3 (3) Contributions to an organization that meets the definition of an 4 exempt organization under paragraph four of subdivision (a) of section 5 eleven hundred sixteen of this chapter or to organizations that have 6 applied for, and were approved for tax-exempt status under subsection 7 (c) of section five hundred one of the internal revenue code by the 8 internal revenue service before January first, two thousand twenty-five, 9 will continue to qualify as charitable contributions allowable as a New 10 York itemized deduction under this subsection, to the extent otherwise 11 allowable under section one hundred seventy of the internal revenue 12 code, even if the internal revenue service revokes such organization's 13 tax-exempt status, so long as the organization establishes that the 14 revocation was unrelated to the organization's charitable mission and 15 that it continues to meet the statutory requirements of paragraph three 16 of subsection (c) of section five hundred one of the internal revenue 17 code and the regulations and authorities promulgated thereunder. 18 § 2. This act shall take effect immediately and shall apply to taxable 19 years beginning on or after January 1, 2026. 20 PART D 21 Section 1. Paragraph (c) of section 42 of the tax law, as amended by 22 section 1 of part N of chapter 59 of the laws of 2019, is amended to 23 read as follows: 24 (c) For purposes of this section, the term "eligible farmer" [means a 25 taxpayer whose federal gross income from farming as defined] shall have 26 the same meaning as set forth in subsection (n) of section six hundred 27 six of this chapter [for the taxable year is at least two-thirds of 28 excess federal gross income. Excess federal gross income means the 29 amount of federal gross income from all sources for the taxable year in 30 excess of thirty thousand dollars. For purposes of this section, 31 payments from the state's farmland protection program, administered by 32 the department of agriculture and markets, shall be included as federal 33 gross income from farming for otherwise eligible farmers]. 34 § 2. Paragraph (b) of section 42-a of the tax law, as amended by 35 section 2 of part KK of chapter 59 of the laws of 2025, is amended to 36 read as follows: 37 (b) For purposes of this section, the term "eligible farm employer" 38 means a taxpayer who received an overtime expense certificate pursuant 39 to section three hundred thirty-five of the agriculture and markets law 40 and [whose federal gross income from farming] who is an eligible farmer, 41 as defined in subsection (n) of section six hundred six of this chapter 42 for the taxable year [is at least two-thirds of excess federal gross 43 income. Excess federal gross income means the amount of federal gross 44 income from all sources for the taxable year in excess of thirty thou- 45 sand dollars. For purposes of this section, payments from the state's 46 farmland protection program, administered by the department of agricul- 47 ture and markets, shall be included as federal gross income from farming 48 for otherwise eligible farmers]. 49 § 3. Subdivision 11 of section 210-B of the tax law is amended by 50 adding a new paragraph (a-1) to read as follows: 51 (a-1) New York gross income from farming. For purposes of this subdi- 52 vision, the term "New York gross income from farming" means a taxpayer's 53 federal gross income from farming, plus payments from the state's farm- 54 land protection program, administered by the department of agriculture 
 S. 9009 13 A. 10009 1 and markets, income from a commercial horse boarding operation as 2 defined by subdivision thirteen of section three hundred one of the 3 agriculture and markets law, and income from the production or sale of 4 maple syrup, Christmas trees, and cider or wine from a licensed New York 5 state farm cidery or winery, as provided for in section fifty-eight-c 6 and article six of the alcoholic beverage control law. 7 § 4. Paragraph (b) of subdivision 11 of section 210-B of the tax law, 8 as added by section 17 of part A of chapter 59 of the laws of 2014, is 9 amended to read as follows: 10 (b) Eligible farmer. For purposes of this subdivision, the term 11 "eligible farmer" means a taxpayer whose [federal] New York gross income 12 from farming for the taxable year, or whose average New York gross 13 income from farming for the current year and two prior taxable years, is 14 at least two-thirds of [excess] such taxpayer's federal gross income 15 from all sources less thirty thousand dollars. The term "eligible farm- 16 er" also includes a corporation other than the taxpayer of record for 17 qualified agricultural land which has paid the school district property 18 taxes on such land pursuant to a contract for the future purchase of 19 such land; provided that such corporation [has a federal gross income 20 from farming for the taxable year which is at least two-thirds of excess 21 federal gross income; and provided further that, in determining such 22 income eligibility, a taxpayer may, for any taxable year, use the aver- 23 age of such federal gross income from farming for that taxable year and 24 such income for the two consecutive taxable years immediately preceding 25 such taxable year. Excess federal gross income means the amount of 26 federal gross income from all sources for the taxable year in excess of 27 thirty thousand dollars. For the purposes of this paragraph, payments 28 from the state's farmland protection program, administered by the 29 department of agriculture and markets, shall be included as federal 30 gross income from farming for otherwise eligible farmers] meets the 31 definition of eligible farmer pursuant to this paragraph. 32 § 5. Paragraph (i) of subdivision 11 of section 210-B of the tax law 33 is REPEALED. 34 § 6. Paragraph (b) of subdivision 52 of section 210-B of the tax law, 35 as added by section 4 of part DDD of chapter 59 of the laws of 2017, is 36 amended to read as follows: 37 (b) Eligible farmer. For purposes of this subdivision, the term 38 "eligible farmer" [means a taxpayer whose federal gross income from 39 farming for the taxable year is at least two-thirds of excess federal 40 gross income. Excess federal gross income means the amount of federal 41 gross income from all sources for the taxable year in excess of thirty 42 thousand dollars. For purposes of this paragraph, payments from the 43 state's farmland protection program, administered by the department of 44 agriculture and markets, shall be included as federal gross income from 45 farming for otherwise eligible farmers] shall have the same meaning as 46 set forth subdivision eleven of this section. 47 § 7. Subsection (n) of section 606 of the tax law is amended by adding 48 a new paragraph 1-a to read as follows: 49 (1-a) New York gross income from farming. For purposes of this 50 subsection, the term "New York gross income from farming" means a 51 taxpayer's federal gross income from farming, plus payments from the 52 state's farmland protection program, administered by the department of 53 agriculture and markets, income from a commercial horse boarding opera- 54 tion as defined by subdivision thirteen of section three hundred one of 55 the agriculture and markets law, and income from the production or sale 56 of maple syrup, Christmas trees, and cider or wine from a licensed New 
 S. 9009 14 A. 10009 1 York state farm cidery or winery, as provided for in section fifty- 2 eight-c and article six of the alcoholic beverage control law. 3 § 8. Paragraph 2 of subsection (n) of section 606 of the tax law, as 4 amended by chapter 297 of the laws of 2010, is amended to read as 5 follows: 6 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 7 ble farmer" means a taxpayer whose [federal] New York gross income from 8 farming for the taxable year, or whose average New York gross income 9 from farming for the current year and two prior taxable years, is at 10 least two-thirds of [excess] such taxpayer's federal gross income from 11 all sources less thirty thousand dollars. The term "eligible farmer" 12 also includes an individual other than the taxpayer of record for quali- 13 fied agricultural land who has paid the school district property taxes 14 on such land pursuant to a contract for the future purchase of such 15 land; provided that such individual [has a federal gross income from 16 farming for the taxable year which is at least two-thirds of excess 17 federal gross income; and provided further that, in determining such 18 income eligibility, a taxpayer may, for any taxable year, use the aver- 19 age of such federal gross income from farming for that taxable year and 20 such income for the two consecutive taxable years immediately preceding 21 such taxable year. Excess federal gross income means the amount of 22 federal gross income from all sources for the taxable year reduced by 23 the sum (not to exceed thirty thousand dollars) of those items included 24 in federal gross income which consist of (i) earned income, (ii) pension 25 payments, including social security payments, (iii) interest, and (iv) 26 dividends. For purposes of this paragraph, the term "earned income" 27 shall mean wages, salaries, tips and other employee compensation, and 28 those items of gross income which are includible in the computation of 29 net earnings from self-employment. For the purposes of this paragraph, 30 payments from the state's farmland protection program, administered by 31 the department of agriculture and markets, shall be included as federal 32 gross income from farming for otherwise eligible farmers] meets the 33 definition of "eligible farmer" pursuant to this paragraph. 34 § 9. Paragraph 8 of subsection (n) of section 606 of the tax law is 35 REPEALED. 36 § 10. Paragraph 2 of subsection (n-2) of section 606 of the tax law, 37 as added by section 1 of part DDD of chapter 59 of the laws of 2017, is 38 amended to read as follows: 39 (2) Eligible farmer. For purposes of this subsection, the term "eligi- 40 ble farmer" [means a taxpayer whose federal gross income from farming 41 for the taxable year is at least two-thirds of excess federal gross 42 income. Excess federal gross income means the amount of federal gross 43 income from all sources for the taxable year reduced by the sum (not to 44 exceed thirty thousand dollars) of those items included in federal gross 45 income that consist of: (i) earned income, (ii) pension payments, 46 including social security payments, (iii) interest, and (iv) dividends. 47 For purposes of this paragraph, the term "earned income" shall mean 48 wages, salaries, tips and other employee compensation, and those items 49 of gross income that are includible in the computation of net earnings 50 from self-employment. For the purposes of this paragraph, payments from 51 the state's farmland protection program, administered by the department 52 of agriculture and markets, shall be included as federal gross income 53 from farming for otherwise eligible farmers] shall have the same meaning 54 as set forth in subsection (n) of this section. 55 § 11. This act shall take effect immediately and shall apply to taxa- 56 ble years beginning on or after January 1, 2026. 
 S. 9009 15 A. 10009 1 PART E 2 Section 1. The opening paragraph of paragraph (a) of subdivision 1 of 3 section 210 of the tax law, as amended by section 1 of subpart A of part 4 I of chapter 59 of the laws of 2023, is amended to read as follows: 5 For taxable years beginning before January first, two thousand 6 sixteen, the amount prescribed by this paragraph shall be computed at 7 the rate of seven and one-tenth percent of the taxpayer's business 8 income base. For taxable years beginning on or after January first, two 9 thousand sixteen, the amount prescribed by this paragraph shall be six 10 and one-half percent of the taxpayer's business income base. For taxable 11 years beginning on or after January first, two thousand twenty-one and 12 before January first, two thousand [twenty-seven] thirty for any taxpay- 13 er with a business income base for the taxable year of more than five 14 million dollars, the amount prescribed by this paragraph shall be seven 15 and one-quarter percent of the taxpayer's business income base. The 16 taxpayer's business income base shall mean the portion of the taxpayer's 17 business income apportioned within the state as hereinafter provided. 18 However, in the case of a small business taxpayer, as defined in para- 19 graph (f) of this subdivision, the amount prescribed by this paragraph 20 shall be computed pursuant to subparagraph (iv) of this paragraph and in 21 the case of a manufacturer, as defined in subparagraph (vi) of this 22 paragraph, the amount prescribed by this paragraph shall be computed 23 pursuant to subparagraph (vi) of this paragraph, and, in the case of a 24 qualified emerging technology company, as defined in subparagraph (vii) 25 of this paragraph, the amount prescribed by this paragraph shall be 26 computed pursuant to subparagraph (vii) of this paragraph. 27 § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 28 of the tax law, as amended by section 2 of subpart A of part I of chap- 29 ter 59 of the laws of 2023, is amended to read as follows: 30 (1) (i) The amount prescribed by this paragraph shall be computed 31 at .15 percent for each dollar of the taxpayer's total business capital, 32 or the portion thereof apportioned within the state as hereinafter 33 provided for taxable years beginning before January first, two thousand 34 sixteen. However, in the case of a cooperative housing corporation as 35 defined in the internal revenue code, the applicable rate shall be .04 36 percent until taxable years beginning on or after January first, two 37 thousand twenty and zero percent for taxable years beginning on or after 38 January first, two thousand twenty-one. The rate of tax for subsequent 39 tax years shall be as follows: .125 percent for taxable years beginning 40 on or after January first, two thousand sixteen and before January 41 first, two thousand seventeen; .100 percent for taxable years beginning 42 on or after January first, two thousand seventeen and before January 43 first, two thousand eighteen; .075 percent for taxable years beginning 44 on or after January first, two thousand eighteen and before January 45 first, two thousand nineteen; .050 percent for taxable years beginning 46 on or after January first, two thousand nineteen and before January 47 first, two thousand twenty; .025 percent for taxable years beginning on 48 or after January first, two thousand twenty and before January first, 49 two thousand twenty-one; and .1875 percent for years beginning on or 50 after January first, two thousand twenty-one and before January first, 51 two thousand [twenty-seven] thirty, and zero percent for taxable years 52 beginning on or after January first, two thousand [twenty-seven] thirty. 53 Provided however, for taxable years beginning on or after January first, 54 two thousand twenty-one, the rate of tax for a small business as defined 55 in paragraph (f) of this subdivision shall be zero percent. The rate of 
 S. 9009 16 A. 10009 1 tax for a qualified New York manufacturer shall be .132 percent for 2 taxable years beginning on or after January first, two thousand fifteen 3 and before January first, two thousand sixteen, .106 percent for taxable 4 years beginning on or after January first, two thousand sixteen and 5 before January first, two thousand seventeen, .085 percent for taxable 6 years beginning on or after January first, two thousand seventeen and 7 before January first, two thousand eighteen; .056 percent for taxable 8 years beginning on or after January first, two thousand eighteen and 9 before January first, two thousand nineteen; .038 percent for taxable 10 years beginning on or after January first, two thousand nineteen and 11 before January first, two thousand twenty; .019 percent for taxable 12 years beginning on or after January first, two thousand twenty and 13 before January first, two thousand twenty-one; and zero percent for 14 years beginning on or after January first, two thousand twenty-one. (ii) 15 In no event shall the amount prescribed by this paragraph exceed three 16 hundred fifty thousand dollars for qualified New York manufacturers and 17 for all other taxpayers five million dollars. 18 § 3. This act shall take effect immediately. 19 PART F 20 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax 21 law is amended by adding three new subparagraphs 24, 25 and 26 to read 22 as follows: 23 (24) For taxable years beginning on or after January first, two thou- 24 sand twenty-five, in the case of qualified production property described 25 in paragraph two of subsection (n) of section one hundred sixty-eight of 26 the internal revenue code, the amount of any deduction allowed pursuant 27 to subsection (a) of section one hundred sixty-seven of the internal 28 revenue code as if the taxpayer has not made an election pursuant to 29 subsection (n) of section one hundred sixty-eight of the internal reven- 30 ue code. 31 (25) For taxable years beginning on or after January first, two thou- 32 sand twenty-five, the amount of any foreign and domestic research or 33 experimental expenditures, as defined in sections one hundred seventy- 34 four and 174A of the internal revenue code, paid or incurred in each 35 taxable year on and after January first, two thousand twenty-five, amor- 36 tized over a sixty-month period as if the election in subsection (c) of 37 section 174A of the internal revenue code applied to such foreign and 38 domestic research or experimental expenditures. 39 (26) For taxable years beginning on or after January first, two thou- 40 sand twenty-five, the remaining amount of any foreign and domestic 41 research or experimental expenditures, as defined in sections one 42 hundred seventy-four and 174A of the internal revenue code, paid or 43 incurred prior to January first, two thousand twenty-five, determined as 44 if section one hundred seventy-four of the internal revenue code in 45 effect as of January first, two thousand twenty-two, applied to such 46 expenditures. 47 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is 48 amended by adding two new subparagraphs 28 and 29 to read as follows: 49 (28) For taxable years beginning on or after January first, two thou- 50 sand twenty-five, in the case of qualified production property described 51 in paragraph two of subsection (n) of section one hundred sixty-eight of 52 the internal revenue code, any amount which the taxpayer claimed as a 53 deduction under subsection (a) of section one hundred sixty-seven of the 54 internal revenue code that included an allowance solely as a result of 
 S. 9009 17 A. 10009 1 an election made pursuant to subsection (n) of section one hundred 2 sixty-eight of the internal revenue code. 3 (29) For taxable years beginning on or after January first, two thou- 4 sand twenty-five, any amount claimed as a deduction under sections one 5 hundred seventy-four and 174A of the internal revenue code in effect as 6 of January first, two thousand twenty-five, and any amount claimed as a 7 deduction pursuant to federal Public Law 119-21, title VII, section 8 70302(f)(2)(a), for foreign and domestic research or experimental 9 expenditures, as defined in sections one hundred seventy-four and 174A 10 of the internal revenue code. 11 § 3. Subsection (b) of section 612 of the tax law is amended by adding 12 two new paragraphs 44 and 45 to read as follows: 13 (44) For taxable years beginning on or after January first, two thou- 14 sand twenty-five, in the case of qualified production property described 15 in paragraph two of subsection (n) of section one hundred sixty-eight of 16 the internal revenue code, any amount which the taxpayer claimed as a 17 deduction under subsection (a) of section one hundred sixty-seven of the 18 internal revenue code that included an allowance solely as a result of 19 an election made pursuant to subsection (n) of section one hundred 20 sixty-eight of the internal revenue code. 21 (45) For taxable years beginning on or after January first, two thou- 22 sand twenty-five, any amount claimed as a deduction under sections one 23 hundred seventy-four and 174A of the internal revenue code in effect as 24 of January first, two thousand twenty-five, and any amount claimed as a 25 deduction pursuant to federal Public Law 119-21, title VII, section 26 70302(f)(2)(a), for foreign and domestic research or experimental 27 expenditures, as defined in sections one hundred seventy-four and 174A 28 of the internal revenue code. 29 § 4. Subsection (c) of section 612 of the tax law is amended by adding 30 three new paragraphs 48, 49 and 50 to read as follows: 31 (48) For taxable years beginning on or after January first, two thou- 32 sand twenty-five, in the case of qualified production property described 33 in paragraph two of subsection (n) of section one hundred sixty-eight of 34 the internal revenue code, the amount of any deduction allowed pursuant 35 to subsection (a) of section one hundred sixty-seven of the internal 36 revenue code as if the taxpayer has not made an election pursuant to 37 subsection (n) of section one hundred sixty-eight of the internal reven- 38 ue code. 39 (49) For taxable years beginning on or after January first, two thou- 40 sand twenty-five, the amount of any foreign and domestic research or 41 experimental expenditures, as defined in sections one hundred seventy- 42 four and 174A of the internal revenue code, paid or incurred in each 43 taxable year on and after January first, two thousand twenty-five, amor- 44 tized over a sixty-month period as if the election in subsection (c) of 45 section 174A of the internal revenue code applied to such foreign and 46 domestic research or experimental expenditures. 47 (50) For taxable years beginning on or after January first, two thou- 48 sand twenty-five, the remaining amount of any foreign and domestic 49 research or experimental expenditures, as defined in sections one 50 hundred seventy-four and 174A of the internal revenue code, paid or 51 incurred prior to January first, two thousand twenty-five, determined as 52 if section one hundred seventy-four of the internal revenue code in 53 effect as of January first, two thousand twenty-two, applied to such 54 expenditures. 
 S. 9009 18 A. 10009 1 § 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 2 amended by adding three new subparagraphs (X), (Y) and (Z) to read as 3 follows: 4 (X) For taxable years beginning on or after January first, two thou- 5 sand twenty-five, in the case of qualified production property described 6 in paragraph two of subsection (n) of section one hundred sixty-eight of 7 the internal revenue code, the amount of any deduction allowed pursuant 8 to subsection (a) of section one hundred sixty-seven of the internal 9 revenue code as if the taxpayer has not made an election pursuant to 10 subsection (n) of section one hundred sixty-eight of the internal reven- 11 ue code. 12 (Y) For taxable years beginning on or after January first, two thou- 13 sand twenty-five, the amount of any foreign and domestic research or 14 experimental expenditures, as defined in sections one hundred seventy- 15 four and 174A of the internal revenue code, paid or incurred in each 16 taxable year on and after January first, two thousand twenty-five, amor- 17 tized over a sixty-month period as if the election in subsection (c) of 18 section 174A of the internal revenue code applied to such foreign and 19 domestic research or experimental expenditures. 20 (Z) For taxable years beginning on or after January first, two thou- 21 sand twenty-five, the remaining amount of any foreign and domestic 22 research or experimental expenditures, as defined in sections one 23 hundred seventy-four and 174A of the internal revenue code, paid or 24 incurred prior to January first, two thousand twenty-five, determined as 25 if section one hundred seventy-four of the internal revenue code in 26 effect as of January first, two thousand twenty-two, applied to such 27 expenditures. 28 § 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 29 amended by adding two new subparagraphs (AA) and (BB) to read as 30 follows: 31 (AA) For taxable years beginning on or after January first, two thou- 32 sand twenty-five, in the case of qualified production property described 33 in paragraph two of subsection (n) of section one hundred sixty-eight of 34 the internal revenue code, any amount which the taxpayer claimed as a 35 deduction under subsection (a) of section one hundred sixty-seven of the 36 internal revenue code that included an allowance solely as a result of 37 an election made pursuant to subsection (n) of section one hundred 38 sixty-eight of the internal revenue code. 39 (BB) For taxable years beginning on or after January first, two thou- 40 sand twenty-five, any amount claimed as a deduction under sections one 41 hundred seventy-four and 174A of the internal revenue code in effect as 42 of January first, two thousand twenty-five, and any amount claimed as a 43 deduction pursuant to federal Public Law 119-21, title VII, section 44 70302(f)(2)(a), for foreign and domestic research or experimental 45 expenditures, as defined in sections one hundred seventy-four and 174A 46 of the internal revenue code. 47 § 7. This act shall take effect immediately, and shall apply to tax 48 years beginning on or after January 1, 2025. 49 PART G 50 Section 1. Subdivision (b) of section 11-506 of the administrative 51 code of the city of New York is amended by adding four new paragraphs 52 19, 20, 21 and 22 to read as follows: 53 (19) For taxable years beginning after December thirty-first, two 54 thousand twenty-four, the amount allowed as an exclusion or deduction in 
 S. 9009 19 A. 10009 1 determining federal gross income of any depreciation of qualified 2 production property described in subsection (n) of section one hundred 3 sixty-eight of the internal revenue code. For the purposes of this chap- 4 ter, such property shall not be treated as a 1245 property as described 5 in section twelve hundred forty-five of the internal revenue code. 6 (20) For taxable years beginning after December thirty-first, two 7 thousand twenty-four, the amount allowed as an exclusion or deduction in 8 determining federal gross income pursuant to subsection (a) of section 9 one hundred seventy-nine of the internal revenue code. 10 (21) For taxable years beginning after December thirty-first, two 11 thousand twenty-four, the amount allowed as an exclusion or deduction in 12 determining federal gross income for domestic research or experimental 13 expenditures pursuant to section one hundred seventy-four-A of the 14 internal revenue code. 15 (22) For taxable years beginning on or after January first, two thou- 16 sand twenty-five, the increase in the amount allowed as a federal inter- 17 est deduction pursuant to section one hundred sixty-three of the inter- 18 nal revenue code attributable to additional adjusted taxable income that 19 is attributable to depreciation, amortization, or depletion. For the 20 purposes of this subdivision, "additional adjusted taxable income that 21 is attributable to depreciation, amortization, or depletion" means the 22 difference between the amount of adjusted taxable income computed pursu- 23 ant to paragraph eight of subsection (j) of section one hundred sixty- 24 three of the internal revenue code and such amount calculated without 25 regard to clause (v) of subparagraph (A) of such paragraph. 26 § 2. Paragraph (c) of section 11-506 of the administrative code of the 27 city of New York is amended by adding three new paragraphs 14, 15 and 16 28 to read as follows: 29 (14) For taxable years beginning after December thirty-first, two 30 thousand twenty-four, for taxpayers that have made an election pursuant 31 to paragraph six of subsection (n) of section one hundred sixty-eight of 32 the internal revenue code with respect to any qualified production prop- 33 erty as defined in such subsection, the amount allowed as an exclusion 34 or deduction in determining federal gross income of any depreciation of 35 such qualified production property, pursuant to subsection (a) of 36 section one hundred sixty-seven of such code so that the depreciation 37 deduction and adjusted basis reduction or any other deduction or exclu- 38 sion allowed by subsection (n) of section one hundred sixty-eight of 39 such code shall not apply. 40 (15) For taxable years beginning after December thirty-first, two 41 thousand twenty-four, the amount allowed as an exclusion or deduction in 42 determining federal gross income pursuant to subsection (a) of section 43 one hundred seventy-nine of the internal revenue code subject to the 44 dollar limitations in paragraphs one and two of subsection (b) of such 45 section that were in effect for the last tax year beginning before Janu- 46 ary first, two thousand twenty-five, adjusted in accordance with para- 47 graph six of such subsection using the amounts in paragraphs one and two 48 that were in effect for such tax year and, for the purposes of applying 49 clause (ii) of paragraph three of subsection (f) of section one of the 50 internal revenue code, substituting "calendar year 2017" for "calendar 51 year 2016". 52 (16) For taxable years beginning after December thirty-first, two 53 thousand twenty-four, the amount allowed as an exclusion or deduction in 54 determining federal gross income for domestic research or experimental 55 expenditures pursuant to section one hundred seventy-four-A of the 56 internal revenue code, provided that such exclusion or deduction is 
 S. 9009 20 A. 10009 1 calculated in the same manner as an exclusion or deduction for a foreign 2 research or experimental expenditure described in section one hundred 3 seventy-four of such code, except that the amortization deduction of 4 such expenditures shall be rated over the five-year period beginning 5 with the midpoint of the taxable year in which such expenditures are 6 paid or incurred. 7 § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- 8 trative code of the city of New York is amended by adding three new 9 subparagraphs 18, 19 and 20 to read as follows: 10 (18) for taxable years beginning after December thirty-first, two 11 thousand twenty-four, for taxpayers that have made an election pursuant 12 to paragraph six of subsection (n) of section one hundred sixty-eight of 13 the internal revenue code with respect to any qualified production prop- 14 erty defined in such subsection, the amount allowed as an exclusion or 15 deduction in determining federal taxable income of any depreciation of 16 such qualified production property, pursuant to subsection (a) of 17 section one hundred sixty-seven of such code so that the depreciation 18 deduction and adjusted basis reduction or any other deduction or exclu- 19 sion allowed by subsection (n) of section one hundred sixty-eight of 20 such code shall not apply. 21 (19) for taxable years beginning after December thirty-first, two 22 thousand twenty-four, the amount allowed as an exclusion or deduction in 23 determining federal taxable income pursuant to subsection (a) of section 24 one hundred seventy-nine of the internal revenue code subject to the 25 dollar limitations in paragraphs one and two of subsection (b) of such 26 section that were in effect for the last tax year beginning before Janu- 27 ary first, two thousand twenty-five, adjusted in accordance with para- 28 graph six of such subsection using the amounts in paragraphs one and two 29 that were in effect for such tax year and, for the purposes of applying 30 clause (ii) of paragraph three of subsection (f) of section one of the 31 internal revenue code, substituting "calendar year 2017" for "calendar 32 year 2016". 33 (20) for taxable years beginning after December thirty-first, two 34 thousand twenty-four, the amount allowed as an exclusion or deduction in 35 determining federal taxable income for domestic research or experimental 36 expenditures pursuant to section one hundred seventy-four-A of the 37 internal revenue code, provided that such exclusion or deduction is 38 calculated in the same manner as an exclusion or deduction for a foreign 39 research or experimental expenditure described in section one hundred 40 seventy-four of such code, except that the amortization deduction of 41 such expenditures shall be rated over the five-year period beginning 42 with the midpoint of the taxable year in which such expenditures are 43 paid or incurred. 44 § 4. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- 45 trative code of the city of New York is amended by adding four new 46 subparagraphs 23, 24, 25 and 26 to read as follows: 47 (23) For taxable years beginning after December thirty-first, two 48 thousand twenty-four, the amount allowed as an exclusion or deduction in 49 determining federal taxable income of any depreciation of qualified 50 production property described in subsection (n) of section one hundred 51 sixty-eight of the internal revenue code. For the purposes of this 52 subchapter, such property shall not be treated as a 1245 property as 53 described in section one thousand two hundred forty-five of the internal 54 revenue code. 55 (24) For taxable years beginning after December thirty-first, two 56 thousand twenty-four, the amount allowed as an exclusion or deduction in 
 S. 9009 21 A. 10009 1 determining federal taxable income pursuant to subsection (a) of section 2 one hundred seventy-nine of the internal revenue code. 3 (25) For taxable years beginning after December thirty-first, two 4 thousand twenty-four, the amount allowed as an exclusion or deduction in 5 determining federal taxable income for domestic research or experimental 6 expenditures pursuant to section one hundred seventy-four-A of the 7 internal revenue code. 8 (26) For taxable years beginning on or after January first, two thou- 9 sand twenty-five, the increase in the amount allowed as a federal inter- 10 est deduction pursuant to section one hundred sixty-three of the inter- 11 nal revenue code attributable to additional adjusted taxable income that 12 is attributable to depreciation, amortization, or depletion. For the 13 purposes of this subdivision, "additional adjusted taxable income that 14 is attributable to depreciation, amortization, or depletion" means the 15 difference between the amount of adjusted taxable income computed pursu- 16 ant to paragraph eight of subsection (j) of section one hundred sixty- 17 three of the internal revenue code and such amount calculated without 18 regard to clause (v) of subparagraph (A) of such paragraph. 19 § 5. Subdivision (b) of section 11-641 of the administrative code of 20 the city of New York is amended by adding four new paragraphs 18, 19, 20 21 and 21 to read as follows: 22 (18) For taxable years beginning after December thirty-first, two 23 thousand twenty-four, the amount allowed as an exclusion or deduction in 24 determining federal taxable income of any depreciation of qualified 25 production property described in subsection (n) of section one hundred 26 sixty-eight of the internal revenue code. For the purposes of this 27 subchapter, such property shall not be treated as a 1245 property as 28 described in section one thousand two hundred forty-five of the internal 29 revenue code. 30 (19) For taxable years beginning after December thirty-first, two 31 thousand twenty-four, the amount allowed as an exclusion or deduction in 32 determining federal taxable income pursuant to subsection (a) of section 33 one hundred seventy-nine of the internal revenue code. 34 (20) For taxable years beginning after December thirty-first, two 35 thousand twenty-four, the amount allowed as an exclusion or deduction in 36 determining federal taxable income for domestic research or experimental 37 expenditures pursuant to section one hundred seventy-four-A of the 38 internal revenue code. 39 (21) For taxable years beginning on or after January first, two thou- 40 sand twenty-five, the increase in the amount allowed as a federal inter- 41 est deduction pursuant to section one hundred sixty-three of the inter- 42 nal revenue code attributable to additional adjusted taxable income that 43 is attributable to depreciation, amortization, or depletion. For the 44 purposes of this subdivision, "additional adjusted taxable income that 45 is attributable to depreciation, amortization, or depletion" means the 46 difference between the amount of adjusted taxable income computed pursu- 47 ant to paragraph eight of subsection (j) of section one hundred sixty- 48 three of the internal revenue code and such amount calculated without 49 regard to clause (v) of subparagraph (A) of such paragraph. 50 § 6. Subdivision (e) of section 11-641 of the administrative code of 51 the city of New York is amended by adding three new paragraphs 17, 18 52 and 19 to read as follows: 53 (17) for taxable years beginning after December thirty-first, two 54 thousand twenty-four, for taxpayers that have made an election pursuant 55 to paragraph six of subsection (n) of section one hundred sixty-eight of 56 the internal revenue code with respect to any qualified production prop- 
 S. 9009 22 A. 10009 1 erty defined in such subsection, the amount allowed as an exclusion or 2 deduction in determining federal taxable income of any depreciation of 3 such qualified production property, pursuant to subsection (a) of 4 section one hundred sixty-seven of such code so that the depreciation 5 deduction and adjusted basis reduction or any other deduction or exclu- 6 sion allowed by subsection (n) of section one hundred sixty-eight of 7 such code shall not apply. 8 (18) for taxable years beginning after December thirty-first, two 9 thousand twenty-four, the amount allowed as an exclusion or deduction in 10 determining federal taxable income pursuant to subsection (a) of section 11 one hundred seventy-nine of the internal revenue code subject to the 12 dollar limitations in paragraphs one and two of subsection (b) of such 13 section that were in effect for the last tax year beginning before Janu- 14 ary first, two thousand twenty-five, adjusted in accordance with para- 15 graph six of such subsection using the amounts in paragraphs one and two 16 that were in effect for such tax year and, for the purposes of applying 17 clause (ii) of paragraph three of subsection (f) of section one of the 18 internal revenue code, substituting "calendar year 2017" for "calendar 19 year 2016". 20 (19) for taxable years beginning after December thirty-first, two 21 thousand twenty-four, the amount allowed as an exclusion or deduction in 22 determining federal taxable income for domestic research or experimental 23 expenditures pursuant to section one hundred seventy-four-A of the 24 internal revenue code, provided that such exclusion or deduction is 25 calculated in the same manner as an exclusion or deduction for a foreign 26 research or experimental expenditure described in section one hundred 27 seventy-four of such code, except that the amortization deduction of 28 such expenditures shall be rated over the five-year period beginning 29 with the midpoint of the taxable year in which such expenditures are 30 paid or incurred. 31 § 7. Paragraph (a) of subdivision 8 of section 11-652 of the adminis- 32 trative code of the city of New York is amended by adding three new 33 subparagraphs 19, 20 and 21 to read as follows: 34 (19) for taxable years beginning after December thirty-first, two 35 thousand twenty-four, for taxpayers that have made an election pursuant 36 to paragraph six of subsection (n) of section one hundred sixty-eight of 37 the internal revenue code with respect to any qualified production prop- 38 erty defined in such subsection, the amount allowed as an exclusion or 39 deduction in determining federal taxable income of any depreciation of 40 such qualified production property, pursuant to subsection (a) of 41 section one hundred sixty-seven of such code so that the depreciation 42 deduction and adjusted basis reduction or any other deduction or exclu- 43 sion allowed by subsection (n) of section one hundred sixty-eight of 44 such code shall not apply. 45 (20) for taxable years beginning after December thirty-first, two 46 thousand twenty-four, the amount allowed as an exclusion or deduction in 47 determining federal taxable income pursuant to subsection (a) of section 48 one hundred seventy-nine of the internal revenue code subject to the 49 dollar limitations in paragraphs one and two of subsection (b) of such 50 section that were in effect for the last tax year beginning before Janu- 51 ary first, two thousand twenty-five, adjusted in accordance with para- 52 graph six of such subsection using the amounts in paragraphs one and two 53 that were in effect for such tax year and, for the purposes of applying 54 clause (ii) of paragraph three of subsection (f) of section one of the 55 internal revenue code, substituting "calendar year 2017" for "calendar 56 year 2016". 
 S. 9009 23 A. 10009 1 (21) for taxable years beginning after December thirty-first, two 2 thousand twenty-four, the amount allowed as an exclusion or deduction in 3 determining federal taxable income for domestic research or experimental 4 expenditures pursuant to section one hundred seventy-four-A of the 5 internal revenue code, provided that such exclusion or deduction is 6 calculated in the same manner as an exclusion or deduction for a foreign 7 research or experimental expenditure described in section one hundred 8 seventy-four of such code, except that the amortization deduction of 9 such expenditures shall be rated over the five-year period beginning 10 with the midpoint of the taxable year in which such expenditures are 11 paid or incurred. 12 § 8. Paragraph (b) of subdivision 8 of section 11-652 of the adminis- 13 trative code of the city of New York is amended by adding four new 14 subparagraphs 24, 25, 26 and 27 to read as follows: 15 (24) For taxable years beginning after December thirty-first, two 16 thousand twenty-four, the amount allowed as an exclusion or deduction in 17 determining federal taxable income of any depreciation of qualified 18 production property described in subsection (n) of section one hundred 19 sixty-eight of the internal revenue code. For the purposes of this 20 subchapter, such property shall not be treated as a 1245 property as 21 described in section one thousand two hundred forty-five of the internal 22 revenue code. 23 (25) For taxable years beginning after December thirty-first, two 24 thousand twenty-four, the amount allowed as an exclusion or deduction in 25 determining federal taxable income pursuant to subsection (a) of section 26 one hundred seventy-nine of the internal revenue code. 27 (26) For taxable years beginning after December thirty-first, two 28 thousand twenty-four, the amount allowed as an exclusion or deduction in 29 determining federal taxable income for domestic research or experimental 30 expenditures pursuant to section one hundred seventy-four-A of the 31 internal revenue code. 32 (27) For taxable years beginning on or after January first, two thou- 33 sand twenty-five, the increase in the amount allowed as a federal inter- 34 est deduction pursuant to section one hundred sixty-three of the inter- 35 nal revenue code attributable to additional adjusted taxable income that 36 is attributable to depreciation, amortization, or depletion. For the 37 purposes of this subdivision, "additional adjusted taxable income that 38 is attributable to depreciation, amortization, or depletion" means the 39 difference between the amount of adjusted taxable income computed pursu- 40 ant to paragraph eight of subsection (j) of section one hundred sixty- 41 three of the internal revenue code and such amount calculated without 42 regard to clause (v) of subparagraph (A) of such paragraph. 43 § 9. This act shall take effect immediately and shall be deemed to 44 have been in full force and effect on and after December 31, 2024, and 45 shall apply to taxable years beginning after December 31, 2024. 46 PART H 47 Section 1. Subsection (c) of section 861 of the tax law, as amended by 48 section 2 of subpart C of part J of chapter 59 of the laws of 2023, is 49 amended to read as follows: 50 (c) The annual election must be made on or before [the due date of the 51 first estimated payment under section eight hundred sixty-four of this 52 article] September fifteenth and will take effect for the current taxa- 53 ble year. Only one election may be made during each calendar year. An 
 S. 9009 24 A. 10009 1 election made under this section is irrevocable after [the due date] 2 September fifteenth of the taxable year. 3 § 2. Subsection (b) of section 864 of the tax law, as added by section 4 1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by 5 chapter 555 of the laws of 2022, is amended to read as follows: 6 (b) General. The estimated tax shall be paid as follows for an elect- 7 ing partnership and an electing S corporation: 8 (1) [The] For a partnership or S corporation that made an election to 9 be taxed pursuant to this article on or before March fifteenth of the 10 taxable year, the electing partnership or electing S corporation shall 11 make estimated tax [shall be paid] payments in four equal installments 12 on March fifteenth, June fifteenth, September fifteenth, and December 13 fifteenth in the calendar year prior to the year in which the due date 14 of the return required by this article falls. The amount of each 15 installment shall be twenty-five percent of the required annual payment. 16 (2) [The amount of any required installment shall be twenty-five 17 percent of the required annual payment] For a partnership or S corpo- 18 ration that made an election to be taxed pursuant to this article after 19 March fifteenth but on or before June fifteenth in the taxable year, the 20 electing partnership or electing S corporation shall make payments on 21 June fifteenth, September fifteenth, and December fifteenth in the 22 calendar year prior to the year in which the due date of the return 23 required by this article falls. The amount of the June fifteenth payment 24 shall be fifty percent of the required annual amount. The amount of the 25 September fifteenth payment shall be twenty-five percent of the required 26 annual amount. The amount of the December fifteenth payment shall be 27 twenty-five percent of the required annual amount. 28 (2-a) For a partnership or S corporation that made an election to be 29 taxed pursuant to this article after June fifteenth but on or before 30 September fifteenth in the taxable year, the electing partnership or 31 electing S corporation shall make payments on September fifteenth and 32 December fifteenth in the calendar year prior to the year in which the 33 due date of the return required by this article falls. The amount of the 34 September fifteenth payment shall be seventy-five percent of the 35 required annual amount. The amount of the December fifteenth payment 36 shall be twenty-five percent of the required annual amount. 37 (3) Notwithstanding paragraph four of subsection (c) of section six 38 hundred eighty-five of this chapter, the required annual payment is the 39 lesser of: (A) ninety percent of the tax shown on the return for the 40 taxable year; or (B) one hundred percent of the tax shown on the return 41 of the electing partnership or electing S corporation for the preceding 42 taxable year. 43 § 3. Subsection (c) of section 868 of the tax law, as amended by 44 section 7 of subpart C of part J of chapter 59 of the laws of 2023, is 45 amended to read as follows: 46 (c) The annual election to be taxed pursuant to this article must be 47 made on or before [the due date of the first estimated payment under 48 section eight hundred sixty-four of this chapter] September fifteenth 49 and will take effect for the current taxable year. Only one election to 50 be taxed pursuant to this article may be made during each calendar year. 51 An election made under this section is irrevocable after [such due date] 52 September fifteenth of the taxable year. To the extent an election made 53 under section eight hundred sixty-one of this chapter is revoked or 54 otherwise invalidated an election made under this section is automat- 55 ically invalidated. 
 S. 9009 25 A. 10009 1 § 4. Subsection (b) of section 871 of the tax law, as added by section 2 1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3 3 as amended by chapter 555 of the laws of 2022, is amended to read as 4 follows: 5 (b) General. Except as provided in subsection (c) of this section, the 6 estimated tax shall be paid as follows for an electing city partnership 7 and an electing city resident S corporation: 8 (1) [The] For an electing city partnership or electing city S corpo- 9 ration that made an election to be taxed pursuant to this article on or 10 before March fifteenth in the taxable year, the electing city partner- 11 ship or electing city S corporation shall make estimated tax [shall be 12 paid] payments in four equal installments on March fifteenth, June 13 fifteenth, September fifteenth, and December fifteenth in the calendar 14 year prior to the year in which the due date of the return required by 15 this article falls. The amount of each installment shall be twenty-five 16 percent of the required annual payment. 17 (2) [The amount of any required installment shall be twenty-five 18 percent of the required annual payment] For an electing city partnership 19 or electing city S corporation that made an election to be taxed pursu- 20 ant to this article after March fifteenth but on or before June 21 fifteenth in the taxable year, the electing city partnership or electing 22 city S corporation shall make payments on June fifteenth, September 23 fifteenth, and December fifteenth in the calendar year prior to the year 24 in which the due date of the return required by this article falls. The 25 amount of the June fifteenth payment shall be fifty percent of the 26 required annual amount. The amount of the September fifteenth payment 27 shall be twenty-five percent of the required annual amount. The amount 28 of the December fifteenth payment shall be twenty-five percent of the 29 required annual amount. 30 (2-a) For an electing city partnership or electing city S corporation 31 that made an election to be taxed pursuant to this article after June 32 fifteenth but on or before September fifteenth in the taxable year, the 33 electing city partnership or electing city S corporation shall make 34 payments on September fifteenth and December fifteenth in the calendar 35 year prior to the year in which the due date of the return required by 36 this article falls. The amount of the September fifteenth payment shall 37 be seventy-five percent of the required annual amount. The amount of the 38 December fifteenth payment shall be twenty-five percent of the required 39 annual amount. 40 (3) Without regard to paragraph four of subsection (c) of section six 41 hundred eighty-five of this chapter, the required annual payment is the 42 lesser of: (A) ninety percent of the tax shown on the return for the 43 taxable year; or (B) one hundred percent of the tax shown on the return 44 of the electing city partnership or electing city resident S corporation 45 for the preceding taxable year. 46 § 5. This act shall take effect immediately and shall apply to all 47 taxable years beginning on or after January 1, 2027. 48 PART I 49 Section 1. Paragraph (a) of subdivision 5 of section 845-e of the 50 executive law, as added by section 1 of part E of chapter 59 of the laws 51 of 2024, is amended to read as follows: 52 (a) For taxable years beginning on or after January first, two thou- 53 sand twenty-four and before January first, two thousand [twenty-six] 54 twenty-nine, a business entity in the commercial security tax credit 
 S. 9009 26 A. 10009 1 program that meets the eligibility requirements of subdivision two of 2 this section may be eligible to claim a credit equal to three thousand 3 dollars for each retail location of the business entity located in New 4 York state. 5 § 2. Subdivision (a) of section 49 of the tax law, as added by section 6 2 of part E of chapter 59 of the laws of 2024, is amended to read as 7 follows: 8 (a) Allowance of credit. For taxable years beginning on or after Janu- 9 ary first, two thousand twenty-four and before January first, two thou- 10 sand [twenty-six] twenty-nine, a taxpayer required to file a return 11 pursuant to articles nine, nine-A or twenty-two of this chapter shall be 12 allowed a credit against such tax, pursuant to the provisions referenced 13 in subdivision (f) of this section. The amount of the credit is equal to 14 the amount determined pursuant to section eight hundred forty-five-e of 15 the executive law. No cost or expense paid or incurred by the taxpayer 16 that is included as part of the calculation of this credit shall be the 17 basis of any other tax credit allowed under this chapter. 18 § 3. This act shall take effect immediately. 19 PART J 20 Section 1. Paragraph 1 of subdivision (f) of section 24-c of the tax 21 law, as amended by section 4 of part L of chapter 59 of the laws of 22 2025, is amended to read as follows: 23 (1) The aggregate amount of tax credits allowed under this section, 24 subdivision fifty-seven of section two hundred ten-B and subsection 25 (mmm) of section six hundred six of this chapter shall be [four] five 26 hundred fifty million dollars. Such aggregate amount of credits shall be 27 allocated by the department of economic development among taxpayers 28 based on the date of first performance of the qualified musical and 29 theatrical production. 30 § 2. This act shall take effect immediately and apply to qualified New 31 York city musical and theatrical production companies whose first 32 performance was on or after December 1, 2025; provided, however, that 33 the amendments to section 24-c of the tax law made by section one of 34 this act shall not affect the repeal of such section and shall be deemed 35 repealed therewith. 36 PART K 37 Section 1. Subdivisions 2 and 12 of section 470 of the tax law, subdi- 38 vision 2 as amended by chapter 728 of the laws of 2019 and subdivision 39 12 as added by chapter 61 of the laws of 1989, are amended and a new 40 subdivision 22 is added to read as follows: 41 2. "Tobacco products." Any cigar, including a little cigar, [or] 42 tobacco, or alternative nicotine product, other than cigarettes, 43 intended for consumption by smoking, chewing, or as snuff. "Tobacco 44 products" shall not include research tobacco products. 45 12. "Distributor." Any person who imports or causes to be imported 46 into this state any tobacco product (in excess of fifty cigars [or], one 47 pound of tobacco, or fifteen units of alternative nicotine products) for 48 sale, or who manufactures any tobacco product in this state, and any 49 person within or without the state who is authorized by the commissioner 50 of taxation and finance to make returns and pay the tax on tobacco 51 products sold, shipped or delivered by [him] them to any person in the 52 state. 
 S. 9009 27 A. 10009 1 22. "Alternative nicotine product." Any noncombustible product, other 2 than vapor products, which contains nicotine but not tobacco and is 3 intended for human consumption, whether chewed, absorbed, dissolved, or 4 ingested by any other means. "Alternative nicotine product" does not 5 include any product regulated as a drug or device by the U.S. Food and 6 Drug Administration (FDA) under Chapter V (21 U.S.C. § 351 et seq.) of 7 the Federal Food, Drug, and Cosmetic Act. The term "unit" as it relates 8 to alternative nicotine products means any cannister, pack, box, carton, 9 or container of any kind or, if no other container, any wrapping, in 10 which an alternative nicotine product is offered for sale, sold, or 11 otherwise distributed to consumers. 12 § 2. The opening paragraph of subdivision (a) of section 471-c of the 13 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of 14 2009, is amended to read as follows: 15 There is hereby imposed and shall be paid a tax on all tobacco 16 products used in the state by any person, except that no such tax shall 17 be imposed (1) if the tax provided in section four hundred seventy-one-b 18 of this article is paid, or (2) on the use of tobacco products which are 19 exempt from the tax imposed by said section, or (3) on the use of two 20 hundred fifty cigars or less, or five pounds or less of tobacco other 21 than roll-your-own tobacco, or thirty-six ounces or less of roll-your- 22 own tobacco, or seventy-five units or less of alternative nicotine 23 products, brought into the state on, or in the possession of, any 24 person. 25 § 3. Subdivisions 2 and 3 of section 474 of the tax law, subdivision 2 26 as amended by chapter 552 of the laws of 2008 and subdivision 3 as added 27 by chapter 61 of the laws of 1989, are amended to read as follows: 28 2. Every person who shall possess or transport more than two hundred 29 fifty cigars, or more than five pounds of tobacco other than roll-your- 30 own tobacco, or more than thirty-six ounces of roll-your-own tobacco, or 31 more than seventy-five units of alternative nicotine products, upon the 32 public highways, roads or streets of the state, shall be required to 33 have in [his] their actual possession invoices or delivery tickets for 34 such tobacco products. Such invoices or delivery tickets shall show the 35 name and address of the consignor or seller, the name and address of the 36 consignee or purchaser, the quantity and brands of the tobacco products 37 transported, and the name and address of the person who has or shall 38 assume the payment of the tax and the wholesale price or the tax paid or 39 payable. The absence of such invoices or delivery tickets shall be prima 40 facie evidence that such person is a dealer in tobacco products in this 41 state and subject to the requirements of this article. 42 3. Every dealer or distributor or employee thereof, or other person 43 acting on behalf of a dealer or distributor, who shall possess or trans- 44 port more than fifty cigars [or], more than one pound of tobacco, or 45 more than fifteen units of alternative nicotine products, upon the 46 public highways, roads or streets of the state, shall be required to 47 have in [his] their actual possession invoices or delivery tickets for 48 such tobacco products. Such invoices or delivery tickets shall show the 49 name and address of the consignor or seller, the name and address of the 50 consignee or purchaser, the quantity and brands of the tobacco products 51 transported, and the name and address of the person who has or shall 52 assume the payment of the tax and the wholesale price or the tax paid or 53 payable. The absence of such invoices or delivery tickets shall be prima 54 facie evidence that the tax imposed by this article on tobacco products 55 has not been paid and is due and owing. 
 S. 9009 28 A. 10009 1 § 4. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 2 of the tax law, as amended by section 1 of part O of chapter 59 of the 3 laws of 2013, is amended to read as follows: 4 (i) In addition to any other penalty imposed by this article, the 5 commissioner may (A) impose a penalty of not more than six hundred 6 dollars for each two hundred cigarettes, or fraction thereof, in excess 7 of one thousand cigarettes in unstamped or unlawfully stamped packages 8 in the possession or under the control of any person or (B) impose a 9 penalty of not more than two hundred dollars for each ten unaffixed 10 false, altered or counterfeit cigarette tax stamps, imprints or 11 impressions, or fraction thereof, in the possession or under the control 12 of any person. In addition, the commissioner may impose a penalty of not 13 more than seventy-five dollars for each fifty cigars [or], one pound of 14 tobacco, or fifteen units of alternative nicotine products, or fraction 15 thereof, in excess of two hundred fifty cigars [or], five pounds of 16 tobacco, or seventy-five units of alternative nicotine products, in the 17 possession or under the control of any person and a penalty of not more 18 than one hundred fifty dollars for each fifty cigars [or], pound of 19 tobacco, or fifteen units of alternative nicotine products, or fraction 20 thereof, in excess of five hundred cigars [or], ten pounds of tobacco, 21 or one hundred fifty units of alternative nicotine products, in the 22 possession or under the control of any person, with respect to which the 23 tobacco products tax has not been paid or assumed by a distributor or 24 tobacco products dealer; provided, however, that any such penalty 25 imposed shall not exceed seven thousand five hundred dollars in the 26 aggregate. The commissioner may impose a penalty of not more than seven- 27 ty-five dollars for each fifty cigars [or], one pound of tobacco, or 28 fifteen units of alternative nicotine products, or fraction thereof, in 29 excess of fifty cigars [or], one pound of tobacco, or fifteen units of 30 alternative nicotine products, in the possession or under the control of 31 any tobacco products dealer or distributor appointed by the commission- 32 er, and a penalty of not more than one hundred fifty dollars for each 33 fifty cigars [or], pound of tobacco, or fifteen units of alternative 34 nicotine products, or fraction thereof, in excess of two hundred fifty 35 cigars [or], five pounds of tobacco, or seventy-five units of alterna- 36 tive nicotine products, in the possession or under the control of any 37 such dealer or distributor, with respect to which the tobacco products 38 tax has not been paid or assumed by a distributor or a tobacco products 39 dealer; provided, however, that any such penalty imposed shall not 40 exceed fifteen thousand dollars in the aggregate. 41 § 5. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of 42 subdivision 1 of section 481 of the tax law, as added by chapter 262 of 43 the laws of 2000, are amended to read as follows: 44 (B)(I) not less than twenty-five dollars but not more than one hundred 45 dollars for each fifty cigars [or], one pound of tobacco, or fifteen 46 units of alternative nicotine products, or fraction thereof, in excess 47 of two hundred fifty cigars [or], five pounds of tobacco, or seventy- 48 five units of alternative nicotine products, knowingly in the possession 49 or knowingly under the control of any person, with respect to which the 50 tobacco products tax has not been paid or assumed by a distributor or 51 tobacco products dealer; and 52 (II) not less than fifty dollars but not more than two hundred dollars 53 for each fifty cigars [or], pound of tobacco, or fifteen units of alter- 54 native nicotine products, or fraction thereof, in excess of five hundred 55 cigars [or], ten pounds of tobacco, or one hundred fifty units of alter- 56 native nicotine products, knowingly in the possession or knowingly under 
 S. 9009 29 A. 10009 1 the control of any person, with respect to which the tobacco products 2 tax has not been paid or assumed by a distributor or tobacco products 3 dealer; provided, however, that any such penalty imposed under this 4 clause shall not exceed ten thousand dollars in the aggregate. 5 (C)(I) not less than twenty-five dollars but not more than one hundred 6 dollars for each fifty cigars [or], one pound of tobacco, or fifteen 7 units of alternative nicotine products, or fraction thereof, in excess 8 of fifty cigars [or], one pound of tobacco, or fifteen units of alterna- 9 tive nicotine products, knowingly in the possession or knowingly under 10 the control of any person, with respect to which the tobacco products 11 tax has not been paid or assumed by a distributor or tobacco products 12 dealer; and 13 (II) not less than fifty dollars but not more than two hundred dollars 14 for each fifty cigars [or], pound of tobacco, or fifteen units of alter- 15 native nicotine products, or fraction thereof, in excess of two hundred 16 fifty cigars [or], five pounds of tobacco, or seventy-five units of 17 alternative nicotine products, knowingly in the possession or knowingly 18 under the control of any person, with respect to which the tobacco 19 products tax has not been paid or assumed by a distributor or a tobacco 20 products dealer; provided, however, that any such penalty imposed under 21 this clause shall not exceed twenty thousand dollars in the aggregate. 22 § 6. Paragraph (a) of subdivision 2 of section 481 of the tax law, as 23 amended by chapter 552 of the laws of 2008, is amended to read as 24 follows: 25 (a) The possession within this state of more than four hundred ciga- 26 rettes in unstamped or unlawfully stamped packages or more than two 27 hundred fifty cigars, or more than five pounds of tobacco other than 28 roll-your-own tobacco, or more than thirty-six ounces of roll-your-own 29 tobacco, or more than seventy-five units of alternative nicotine 30 products, by any person other than an agent or distributor, as the case 31 may be, at any one time shall be presumptive evidence that such ciga- 32 rettes or tobacco products are subject to tax as provided by this arti- 33 cle. 34 § 7. Section 482 of the tax law is amended by adding a new subdivision 35 (c) to read as follows: 36 (c) From the taxes, interest and penalties collected or received by 37 the commissioner under section four hundred seventy-one-b of this arti- 38 cle, effective April first, two thousand twenty-seven, fifty million 39 dollars from the moneys collected or received under such section shall 40 be deposited annually to the credit of the tobacco control and insurance 41 initiatives pool to be established and distributed by the commissioner 42 of health in accordance with section twenty-eight hundred seven-v of the 43 public health law. 44 § 8. Subdivisions (a) and (h) of section 1814 of the tax law, as 45 amended by section 28 of subpart I of part V1 of chapter 57 of the laws 46 of 2009, are amended to read as follows: 47 (a) Any person who willfully attempts in any manner to evade or defeat 48 the taxes imposed by article twenty of this chapter or payment thereof 49 on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars 50 or more, [or] (iii) four hundred forty pounds of tobacco or more, or 51 (iv) six thousand six hundred units of alternative nicotine products or 52 more, or has previously been convicted two or more times of a violation 53 of paragraph one of this subdivision shall be guilty of a class E felo- 54 ny. 55 (h) (1) Any dealer, other than a distributor appointed by the commis- 56 sioner of taxation and finance under article twenty of this chapter, who 
 S. 9009 30 A. 10009 1 shall knowingly transport or have in [his] their custody, possession or 2 under [his] their control more than ten pounds of tobacco [or], more 3 than five hundred cigars, or more than one hundred fifty units of alter- 4 native nicotine products, upon which the taxes imposed by article twenty 5 of this chapter have not been assumed or paid by a distributor appointed 6 by the commissioner of taxation and finance under article twenty of this 7 chapter, or other person treated as a distributor pursuant to section 8 four hundred seventy-one-d of this chapter, shall be guilty of a misde- 9 meanor punishable by a fine of not more than five thousand dollars or by 10 a term of imprisonment not to exceed thirty days. 11 (2) Any person, other than a dealer or a distributor appointed by the 12 commissioner under article twenty of this chapter, who shall knowingly 13 transport or have in [his] their custody, possession or under [his] 14 their control more than fifteen pounds of tobacco [or], more than seven 15 hundred fifty cigars, or more than two hundred twenty-five units of 16 alternative nicotine products, upon which the taxes imposed by article 17 twenty of this chapter have not been assumed or paid by a distributor 18 appointed by the commissioner under article twenty of this chapter, or 19 other person treated as a distributor pursuant to section four hundred 20 seventy-one-d of this chapter shall be guilty of a misdemeanor punisha- 21 ble by a fine of not more than five thousand dollars or by a term of 22 imprisonment not to exceed thirty days. 23 (3) Any person, other than a distributor appointed by the commissioner 24 under article twenty of this chapter, who shall knowingly transport or 25 have in [his] their custody, possession or under [his] their control 26 twenty-five hundred or more cigars [or], fifty or more pounds of 27 tobacco, or seven hundred fifty units or more of alternative nicotine 28 products, upon which the taxes imposed by article twenty of this chapter 29 have not been assumed or paid by a distributor appointed by the commis- 30 sioner under article twenty of this chapter, or other person treated as 31 a distributor pursuant to section four hundred seventy-one-d of this 32 chapter shall be guilty of a misdemeanor. Provided further, that any 33 person who has twice been convicted under this subdivision shall be 34 guilty of a class E felony for any subsequent violation of this section, 35 regardless of the amount of tobacco products involved in such violation. 36 (4) For purposes of this subdivision, such person shall knowingly 37 transport or have in [his] their custody, possession or under [his] 38 their control tobacco [or], cigars, or alternative nicotine products, on 39 which such taxes have not been assumed or paid by a distributor 40 appointed by the commissioner where such person has knowledge of the 41 requirement of the tax on tobacco products and, where to [his] their 42 knowledge, such taxes have not been assumed or paid on such tobacco 43 products by a distributor appointed by the commissioner of taxation and 44 finance. 45 § 9. Section 1814-a of the tax law, as added by chapter 61 of the laws 46 of 1989, is amended to read as follows: 47 § 1814-a. Person not appointed as a tobacco products distributor. (a) 48 Any person who, while not appointed as a distributor of tobacco products 49 pursuant to the provisions of article twenty of this chapter, imports or 50 causes to be imported into the state more than fifty cigars [or], more 51 than one pound of tobacco, or more than fifteen units of alternative 52 nicotine products, for sale within the state, or produces, manufactures 53 or compounds tobacco products within the state shall be guilty of a 54 misdemeanor punishable by a fine of not more than five thousand dollars 55 or by a term of imprisonment not to exceed thirty days. If, within any 56 ninety day period, one thousand or more cigars, or five hundred pounds 
 S. 9009 31 A. 10009 1 or more of tobacco, or seven thousand five hundred units or more of 2 alternative nicotine products, are imported or caused to be imported 3 into the state for sale within the state or are produced, manufactured 4 or compounded within the state by any person while not appointed as a 5 distributor of tobacco products, such person shall be guilty of a misde- 6 meanor. Provided further, that any person who has twice been convicted 7 under this section shall be guilty of a class E felony for any subse- 8 quent violation of this section, regardless of the amount of tobacco 9 products involved in such violation. 10 (b) For purposes of this section, the possession or transportation 11 within this state by any person, other than a tobacco products distribu- 12 tor appointed by the commissioner of taxation and finance, at any one 13 time of seven hundred fifty or more cigars [or], fifteen pounds or more 14 of tobacco, or two hundred twenty-five units or more of alternative 15 nicotine products, shall be presumptive evidence that such tobacco 16 products are possessed or transported for the purpose of sale and are 17 subject to the tax imposed by section four hundred seventy-one-b of this 18 chapter. With respect to such possession or transportation, any 19 provisions of article twenty of this chapter providing for a time period 20 during which the tax imposed by such article may be paid shall not 21 apply. 22 § 10. Subdivision (a) of section 1846-a of the tax law, as amended by 23 chapter 556 of the laws of 2011, is amended to read as follows: 24 (a) Whenever a police officer designated in section 1.20 of the crimi- 25 nal procedure law or a peace officer designated in subdivision four of 26 section 2.10 of such law, acting pursuant to [his] their special duties, 27 shall discover any tobacco products in excess of five hundred cigars 28 [or], ten pounds of tobacco, or one hundred fifty units of alternative 29 nicotine products, which are [being imported for] possessed for the 30 purpose of sale in the state [where the person importing or causing] 31 when the excise taxes on such tobacco products [to be imported has not 32 been appointed as] have not been assumed or paid by a distributor 33 appointed pursuant to section four hundred seventy-two of this chapter, 34 such police officer or peace officer is hereby authorized and empowered 35 forthwith to seize and take possession of such tobacco products. Such 36 tobacco products seized by a police officer or peace officer shall be 37 turned over to the commissioner. Such seized tobacco products shall be 38 forfeited to the state. All tobacco products forfeited to the state 39 shall be destroyed or used for law enforcement purposes, except that 40 tobacco products that violate, or are suspected of violating, federal 41 trademark laws or import laws shall not be used for law enforcement 42 purposes. If the commissioner determines the tobacco products may not be 43 used for law enforcement purposes, the commissioner must, within a 44 reasonable time thereafter, upon publication in the state registry of a 45 notice to such effect before the day of destruction, destroy such 46 forfeited tobacco products. The commissioner may, prior to any 47 destruction of tobacco products, permit the true holder of the trademark 48 rights in the tobacco products to inspect such forfeited products in 49 order to assist in any investigation regarding such tobacco products. 50 § 11. Subdivision (b) of section 1847 of the tax law, as added by 51 chapter 61 of the laws of 1989, is amended to read as follows: 52 (b) Any peace officer designated in subdivision four of section 2.10 53 of the criminal procedure law, acting pursuant to [his] their special 54 duties, or any police officer designated in section 1.20 of the criminal 55 procedure law may seize any vehicle or other means of transportation 56 used to import tobacco products in excess of five hundred cigars [or], 
 S. 9009 32 A. 10009 1 ten pounds of tobacco, or one hundred fifty units of alternative nico- 2 tine products, for sale where the person importing or causing such 3 tobacco products to be imported has not been appointed a distributor 4 pursuant to section four hundred seventy-two of this chapter, other than 5 a vehicle or other means of transportation used by any person as a 6 common carrier in transaction of business as such common carrier, and 7 such vehicle or other means of transportation shall be subject to 8 forfeiture as hereinafter in this section provided. 9 § 12. Subdivisions (a) and (b) of section 92-dd of the state finance 10 law, subdivision (a) as amended by section 2 of part UU of chapter 59 of 11 the laws of 2019 and subdivision (b) as amended by section 3 of part T 12 of chapter 61 of the laws of 2011, are amended to read as follows: 13 (a) On and after April first, two thousand five, such fund shall 14 consist of the revenues heretofore and hereafter collected or required 15 to be deposited pursuant to paragraph (a) of subdivision eighteen of 16 section twenty-eight hundred seven-c, and sections twenty-eight hundred 17 seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t 18 of the public health law, [subdivision] subdivisions (b) and (c) of 19 section four hundred eighty-two and section eleven hundred eighty-six of 20 the tax law and required to be credited to the tobacco control and 21 insurance initiatives pool, subparagraph (O) of paragraph four of 22 subsection (j) of section four thousand three hundred one of the insur- 23 ance law, section twenty-seven of part A of chapter one of the laws of 24 two thousand two and all other moneys credited or transferred thereto 25 from any other fund or source pursuant to law. 26 (b) The pool administrator under contract with the commissioner of 27 health pursuant to section twenty-eight hundred seven-y of the public 28 health law shall continue to collect moneys required to be collected or 29 deposited pursuant to paragraph (a) of subdivision eighteen of section 30 twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, 31 twenty-eight hundred seven-s and twenty-eight hundred seven-t of the 32 public health law, and shall deposit such moneys in the HCRA resources 33 fund. The comptroller shall deposit moneys collected or required to be 34 deposited pursuant to [subdivision] subdivisions (b) and (c) of section 35 four hundred eighty-two of the tax law and required to be credited to 36 the tobacco control and insurance initiatives pool, subparagraph (O) of 37 paragraph four of subsection (j) of section four thousand three hundred 38 one of the insurance law, section twenty-seven of part A of chapter one 39 of the laws of two thousand two and all other moneys credited or trans- 40 ferred thereto from any other fund or source pursuant to law in the HCRA 41 resources fund. 42 § 13. Notwithstanding any other provision of law to the contrary, the 43 units of alternative nicotine products possessed in New York state as of 44 11:59 pm eastern standard time on August 31, 2026, by any person for 45 sale shall be subject to tax pursuant to section 471-b of the tax law, 46 and shall be remitted by September 21, 2026, in the form and manner 47 prescribed by the commissioner of taxation and finance. 48 § 14. This act shall take effect immediately, and shall apply to all 49 sales of alternative nicotine products on or after September 1, 2026. 50 PART L 51 Section 1. The article heading of article 28-C of the tax law, as 52 added by section 1 of part UU of chapter 59 of the laws of 2019, is 53 amended to read as follows: 
 S. 9009 33 A. 10009 1 [SUPPLEMENTAL] TAX ON VAPOR PRODUCTS 2 § 2. Section 1180 of the tax law, as added by section 1 of part UU of 3 chapter 59 of the laws of 2019, is amended to read as follows: 4 § 1180. Definitions. For the purposes of the taxes imposed by this 5 article, the following [terms shall mean] definitions shall apply: 6 (a) "Vapor product" means any noncombustible liquid or gel, regardless 7 of the presence of nicotine therein, that is manufactured [in to] into a 8 finished product for use in an electronic cigarette, electronic cigar, 9 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 10 similar device. "Vapor product" shall not include any product approved 11 by the United States food and drug administration as a drug or medical 12 device, or manufactured and dispensed pursuant to title five-A of arti- 13 cle thirty-three of the public health law. 14 (b) "Vapor products dealer" means a person [licensed by the commis- 15 sioner to sell] who sells vapor products at retail to a person in this 16 state. 17 (c) "Vapor products distributor" means any person who imports or caus- 18 es to be imported into this state any vapor products or who manufactures 19 any vapor products in this state; provided, however, where a vapor 20 products dealer also imports vapor products or causes vapor products to 21 be imported into this state for sale, or manufactures vapor products for 22 sale in this state, such vapor products dealer shall also be a vapor 23 products distributor. 24 (d) "Contraband vapor products" means any vapor products that are: (1) 25 possessed by a vapor products dealer or vapor products distributor who 26 does not possess a valid certificate of registration or whose certif- 27 icate of registration has been revoked; (2) possessed by a vapor 28 products distributor or vapor products dealer upon which the tax imposed 29 by this article is due and has not been paid; or (3) possessed in this 30 state that are not listed on the vapor products registry pursuant to 31 section eleven hundred eighty-seven of this article. 32 (e) "Unit" means the individual package, box, carton, canister or 33 container of any kind, or, if no other container, any wrapping in or 34 from which retail sales of vapor products are made or intended to be 35 made as such vapor product is packaged by the manufacturer of such vapor 36 products. 37 § 3. Section 1181 of the tax law, as amended by chapter 92 of the laws 38 of 2021, is amended to read as follows: 39 § 1181. Imposition of tax. (a)(1) In addition to any other tax 40 imposed by this chapter or other law, there is hereby imposed a tax on 41 each unit of vapor products first imported into or manufactured in the 42 state by a vapor products distributor at the rate of fifty-five cents 43 per unit of vapor product that shall accrue at the time of first import 44 or manufacture in the state. 45 (2) The tax imposed by this subdivision shall be passed through from 46 the vapor products distributor to the vapor products dealer at the time 47 the vapor products distributor sells or transfers such vapor products to 48 a vapor products dealer. Upon each sale or transfer of vapor products, 49 other than a sale at retail, the vapor products distributor shall 50 provide to the vapor products dealer at the time of delivery of such 51 products, a certification containing such information as the commission- 52 er shall require that shall include a statement to the effect that such 53 vapor products distributor paid the taxes imposed by this subdivision 54 and, in each case, is passing through such taxes. 55 (3) It shall be presumed that all vapor products possessed within the 56 state by a vapor products dealer are subject to the vapor products 
 S. 9009 34 A. 10009 1 distributor tax until the contrary is established and the burden to 2 establish that any vapor products are not taxable hereunder shall be 3 upon the vapor products dealer in possession or control of such vapor 4 products. 5 (4) Every vapor products dealer shall be liable for the tax on vapor 6 products in their possession upon which tax has not been paid by a 7 distributor, and the failure of any vapor products dealer to produce and 8 exhibit to the commissioner upon demand the invoice provided by a vapor 9 products distributor for any vapor products in their possession shall be 10 presumptive evidence that the tax thereon has not been paid, and that 11 such dealer is liable for the tax thereon unless evidence of such 12 invoice or payment shall later be produced. 13 (b) In addition to any other tax imposed by this chapter or other law, 14 there is hereby imposed a tax of twenty percent on receipts from the 15 retail sale of vapor products sold in this state. The tax is imposed on 16 the purchaser and collected by the vapor products dealer as defined in 17 subdivision (b) of section eleven hundred eighty of this article, in 18 trust for and on account of the state. 19 (c) The taxes imposed under this section shall not apply to adult-use 20 cannabis products subject to tax under article twenty-C of this chapter. 21 § 4. Section 1183 of the tax law, as added by section 1 of part UU of 22 chapter 59 of the laws of 2019, is amended to read as follows: 23 § 1183. Vapor products [dealer] registration and renewal. (a) Every 24 [person who intends to sell vapor products] vapor products distributor 25 and vapor products dealer in this state must [receive from the commis- 26 sioner] file with the commissioner a properly completed application for 27 a certificate of registration and obtain such certificate twenty days 28 prior to [engaging in business] the first import, manufacture, or sale 29 of vapor products. Such person must electronically submit a properly 30 completed application for a certificate of registration [for each 31 location at which vapor products will be sold in this state,] on a form 32 prescribed by the commissioner[,] and such application shall be accompa- 33 nied by a non-refundable application fee of three hundred dollars. A 34 vapor products dealer shall apply for a certificate of registration for 35 each location at which vapor products will be sold at retail in this 36 state. 37 (b) A [vapor products dealer] certificate of registration shall be 38 valid for the calendar year for which it is issued unless earlier 39 [suspended or] revoked. Upon the expiration of the term stated on the 40 certificate of registration, such certificate shall be null and void. A 41 certificate of registration shall not be assignable or transferable and 42 shall be destroyed immediately upon [the vapor products dealer] the 43 person to whom such certificate is issued ceasing to do business as 44 specified in such certificate or in the event that such business never 45 commenced. 46 (c) (1) Every [vapor product dealer] person to whom a certificate is 47 issued under this article shall publicly display a vapor products [deal- 48 er] certificate of registration in each place of business in this state 49 where vapor products are first imported, manufactured, or sold [at 50 retail]. A vapor products dealer who has no regular place of business 51 shall publicly display such valid certificate on each of its carts, 52 stands, trucks or other merchandising devices through which it sells 53 vapor products. 54 (2) No vapor products distributor shall sell any vapor product to any 55 vapor products dealer who is not registered pursuant to this section, or 56 whose registration has been revoked. No vapor products dealer shall 
 S. 9009 35 A. 10009 1 purchase any vapor products from a vapor products distributor who is not 2 registered pursuant to this section, or whose registration has been 3 revoked. 4 (d) (1) The commissioner shall refuse to issue a certificate of regis- 5 tration pursuant to this section to any applicant who is required to but 6 does not possess a valid certificate of authority under section eleven 7 hundred thirty-four of this chapter. In addition, the commissioner may 8 refuse to issue a certificate of registration[, or suspend, cancel] or 9 revoke a certificate of registration issued to any person who: (A) has a 10 past-due liability as that term is defined in section one hundred seven- 11 ty-one-v of this chapter; (B) has had a certificate of registration 12 under this article or any license or registration provided for in this 13 chapter revoked [within one year from the date on which such application 14 was filed]; (C) has been convicted of a crime provided for in this chap- 15 ter [within one year from the date on which such application was filed]; 16 (D) willfully fails to file a report or return required by this article; 17 (E) willfully files, causes to be filed, gives or causes to be given a 18 report, return, certificate or affidavit required by this article which 19 is false; (F) willfully fails to collect or truthfully account for or 20 pay over any tax imposed by this [article] chapter; [or] (G) has had a 21 penalty imposed pursuant to paragraph three, four, five, or six of 22 subdivision (b) of section eleven hundred eighty-five of this article 23 within one year from the date on which such application was filed; or 24 (H) whose place of business is at the same premises as that of a person 25 whose vapor products distributor registration or vapor products dealer 26 registration has been revoked and where such revocation is still in 27 effect, unless the applicant or vapor products distributor or vapor 28 products dealer, as the case may be, provides the commissioner with 29 adequate documentation demonstrating that such applicant or vapor 30 products distributor or vapor products dealer acquired the premises or 31 business through an arm's length transaction as defined in paragraph (e) 32 of subdivision one of section four hundred eighty-a of this chapter and 33 the sale or lease was not conducted, in whole or in part, for the 34 purpose of permitting the original registrant to avoid the effect of the 35 previous revocation for the same premises. 36 (2) In addition to the grounds provided in paragraph one of this 37 subdivision, the commissioner shall refuse to issue a certificate of 38 registration and shall [cancel or suspend] revoke a certificate of 39 registration as directed by an enforcement officer pursuant to article 40 thirteen-F of the public health law. Notwithstanding any provision of 41 law to the contrary, an applicant whose application for a certificate of 42 registration is refused or a vapor products distributor or vapor 43 products dealer whose registration is [cancelled or suspended] revoked 44 under this paragraph shall have no right to a hearing under this chapter 45 and shall have no right to commence a court action or proceeding or to 46 any other legal recourse against the commissioner with respect to such 47 refusal[, suspension or cancellation] or revocation; provided, however, 48 that nothing herein shall be construed to deny a vapor products distrib- 49 utor or vapor products dealer a hearing under article thirteen-F of the 50 public health law or to prohibit vapor products distributor or vapor 51 products dealers from commencing a court action or proceeding against an 52 enforcement officer as defined in section thirteen hundred ninety-nine- 53 aa of the public health law. 54 (3) No person whose registration has been revoked or was refused 55 pursuant to this section shall possess vapor products in any place of 56 business, cart, stand, truck or other merchandising device in this state 
 S. 9009 36 A. 10009 1 beginning on the tenth day after such revocation and continuing for the 2 duration of the same; provided, however, that such person shall not be 3 prohibited before the tenth day after such revocation from selling or 4 transferring such inventory of vapor product properly listed on the 5 vapor products registry pursuant to section eleven hundred eighty-seven 6 of this article on which taxes imposed by this article have been paid to 7 a properly registered vapor products dealer whose registration has not 8 been revoked. 9 (e) If a vapor products [dealer] certificate of registration is 10 [suspended, cancelled or] revoked and [such vapor products dealer] the 11 holder of such certificate sells vapor products through more than one 12 place of business in this state, the [vapor products dealer's] certif- 13 icate of registration issued to that place of business, cart, stand, 14 truck or other merchandising device, where such violation occurred, 15 shall be [suspended,] revoked [or cancelled]. Provided, however, upon a 16 [vapor products dealer's] holder of a certificate of registration's 17 third [suspension, cancellation or] revocation within a five-year period 18 for any one or more businesses owned or operated by [the vapor products 19 dealer] such person, such [suspension, cancellation, or] revocation of 20 the [vapor products dealer's] certificate of registration shall apply to 21 all places of business where [he or she] such person sells vapor 22 products in this state. 23 (f) Every holder of a certificate of registration must notify the 24 commissioner of changes to any of the information stated on the certif- 25 icate or changes to any information contained in the application for the 26 certificate of registration. Such notification must be made on or before 27 the last day of the month in which a change occurs and must be made 28 electronically on a form prescribed by the commissioner. 29 (g) Every vapor products distributor and vapor products dealer who 30 holds a certificate of registration under this [article] section shall 31 be required to reapply for a certificate of registration for the follow- 32 ing calendar year on or before the twentieth day of September and such 33 reapplication shall be subject to the same requirements and conditions, 34 including grounds for refusal, as an initial registration under this 35 [article] section, including but not limited to the payment of the three 36 hundred dollar application fee for each retail location. 37 (h) In addition to any other penalty imposed by this chapter, any 38 vapor products distributor or vapor products dealer who violates the 39 provisions of this section, (1) for a first violation is liable for a 40 civil [fine] penalty not less than five thousand dollars but not to 41 exceed twenty-five thousand dollars and such certificate of registration 42 may be [suspended] revoked for a period of not more than six months; and 43 (2) for a second or subsequent violation within three years following a 44 prior violation of this section, is liable for a civil [fine] penalty 45 not less than ten thousand dollars but not to exceed thirty-five thou- 46 sand dollars and such certificate of registration may be [suspended] 47 revoked for a period of up to thirty-six months; or (3) for a third 48 violation within a period of five years, its vapor products certificate 49 or certificates of registration issued to each place of business owned 50 or operated by the vapor products distributor or vapor products dealer 51 in this state, shall be revoked for a period of up to five years. 52 § 5. Section 1184 of the tax law, as added by section 1 of part UU of 53 chapter 59 of the laws of 2019, is amended to read as follows: 54 § 1184. Administrative provisions. (a) Except as otherwise provided 55 for in this article, the taxes imposed by this article shall be adminis- 56 tered and collected in a like manner as and jointly with the taxes 
 S. 9009 37 A. 10009 1 imposed by sections eleven hundred five and eleven hundred ten of this 2 chapter. In addition, except as otherwise provided in this article, all 3 of the provisions of article twenty-eight of this chapter (except 4 sections eleven hundred seven, eleven hundred eight, eleven hundred 5 nine, and eleven hundred forty-eight) relating to or applicable to the 6 administration, collection and review of the taxes imposed by such 7 sections eleven hundred five and eleven hundred ten, including, but not 8 limited to, the provisions relating to definitions, returns, exemptions, 9 penalties, tax secrecy, personal liability for the tax, and collection 10 of tax from the customer, shall apply to the taxes imposed by this arti- 11 cle so far as such provisions can be made applicable to the taxes 12 imposed by this article with such limitations as set forth in this arti- 13 cle and such modifications as may be necessary in order to adapt such 14 language to the taxes so imposed. Such provisions shall apply with the 15 same force and effect as if the language of those provisions had been 16 set forth in full in this article except to the extent that any 17 provision is either inconsistent with a provision of this article or is 18 not relevant to the taxes imposed by this article. 19 (b) Notwithstanding the provisions of subdivision (a) of this section, 20 the exemptions provided in paragraph ten of subdivision (a) of section 21 eleven hundred fifteen of this chapter, and the provisions of section 22 eleven hundred sixteen, except those provided in paragraphs one, two, 23 three and six of subdivision (a) of such section, shall not apply to the 24 taxes imposed by this article. 25 (c) Notwithstanding the provisions of this section or section eleven 26 hundred forty-six of this chapter, the commissioner may, in [his or her] 27 their discretion, permit the commissioner of health or [his or her] 28 their authorized representative to inspect any return related to the 29 [tax] taxes imposed by this article and may furnish to the commissioner 30 of health any such return or supply [him or her] such commissioner with 31 information concerning an item contained in any such return, or 32 disclosed by any investigation of a liability under this article. 33 (d) Every vapor products distributor and vapor products dealer on whom 34 tax is imposed under this article shall maintain complete and accurate 35 records in such form as the commissioner may require and shall provide 36 such records to the commissioner upon request. Each vapor products 37 distributor shall make a true duplicate invoice, in the form and manner 38 prescribed by the commissioner, that identifies the name and address of 39 the vapor products distributor, such distributor's certificate of regis- 40 tration number issued by the commissioner, the names and addresses of 41 any consignors or sellers, the names and addresses of the vapor products 42 dealer or any consignees or purchasers, the date of delivery or 43 purchase, the quantities, brands and purchase price of the vapor 44 products transported, purchased or delivered, the amount of taxes paid 45 by such distributor pursuant to section eleven hundred eighty-one of 46 this article on such vapor products, and any other record or information 47 the commissioner may require. A vapor products distributor shall provide 48 such invoice to the vapor products dealer when such vapor products are 49 purchased or received. Such records shall be preserved for a period of 50 four years after the filing of the return to which such records relate 51 and shall be provided to the commissioner upon request. 52 (e) (1) In addition to any other penalty provided in this chapter or 53 otherwise imposed by law, every person subject to the taxes imposed 54 under this article who fails to maintain or make available to the 55 commissioner the records required by this section shall be subject to a 56 penalty not to exceed one thousand dollars for each month, or part ther- 
 S. 9009 38 A. 10009 1 eof, for which the failure occurs. Such penalty may not be imposed more 2 than once for failures for the same monthly period or part thereof. If 3 the commissioner determines that a failure to maintain and make avail- 4 able records in any month was entirely due to reasonable cause and not 5 due to willful neglect, the commissioner shall abate the penalty for 6 that month. 7 (2) The failure of any vapor products distributor or vapor products 8 dealer on whom tax is imposed under this article to meet the require- 9 ments made applicable by subdivision (a) of this section for such vapor 10 products possessed by such distributor or such dealer shall be presump- 11 tive evidence that the taxes imposed pursuant to section eleven hundred 12 eighty-one of this article have not been paid, and that such distributor 13 or dealer is liable for the taxes thereon unless evidence of such 14 invoice, receipt or payment shall later be produced. 15 § 6. Section 1185 of the tax law, as added by section 1 of part UU of 16 chapter 59 of the laws of 2019, is amended to read as follows: 17 § 1185. [Criminal penalties] Enforcement. (a) For purposes of the 18 efficient administration of the taxes imposed by this article, it is the 19 intent of the legislature that the distribution and sale of vapor 20 products be deemed a heavily regulated industry subject to supervision 21 by the commissioner. The commissioner is hereby authorized to conduct 22 regulatory inspections in the same manner as a regulatory inspection 23 pursuant to article twenty of this chapter of any place of business or 24 vehicle where vapor products are distributed, placed, stored, sold or 25 offered for sale and to examine the books, papers, invoices and other 26 records of any place of business or vehicle where vapor products are 27 distributed, placed, stored, sold or offered for sale. Any vapor 28 products distributor or vapor products dealer in possession, control or 29 occupancy of any such business or vehicle is hereby directed and 30 required upon demand to give to the commissioner the means, facilities, 31 and opportunity for such inspections and examinations. 32 (b) Penalties. (1) The criminal penalties in sections eighteen hundred 33 one through eighteen hundred seven and eighteen hundred seventeen of 34 this chapter shall apply to this article with the same force and effect 35 as if the language of those provisions had been set forth in full in 36 this article except to the extent that any provision is either incon- 37 sistent with a provision of this article or is not relevant to the taxes 38 imposed by this article. 39 (2) If any person registered under section eleven hundred eighty-three 40 of this article refuses to give the commissioner the means, facilities 41 and opportunity for the inspections and examinations provided for in 42 this article, such person's registration to distribute or to sell vapor 43 products in this state shall be revoked for a period of one year or, for 44 a second such failure within a period of three years, such registration 45 shall be permanently revoked. 46 (3) If any person required to be registered under section eleven 47 hundred eighty-three of this article who does not possess a valid regis- 48 tration, or whose registration is revoked, refuses to give the commis- 49 sioner the means, facilities and opportunity for such inspections and 50 examinations provided for in this article, such person shall be subject 51 to a civil penalty of up to four thousand dollars for the first such 52 refusal, and up to eight thousand dollars for a second or any subsequent 53 such refusal within three years of a prior refusal. 54 (4) Any vapor products distributor who: (i) sells vapor products to a 55 vapor products dealer that does not possess a valid registration under 56 section eleven hundred eighty-three of this article, or whose registra- 
 S. 9009 39 A. 10009 1 tion is revoked; (ii) manufactures, sells, imports, or causes to be 2 imported, into this state any contraband vapor products; or (iii) 3 possesses contraband vapor products for sale in this state shall be 4 subject to a civil penalty of up to four thousand dollars for the first 5 such violation, and up to eight thousand dollars for a second or any 6 subsequent violation within three years. The possession by a vapor 7 products distributor of more than one hundred units of any vapor 8 products in its place of business or any offices or vehicles used to 9 conduct business shall be presumptive evidence that such vapor products 10 are possessed for the purpose of sale or transfer to a retail dealer. 11 (5) Any vapor products dealer who possesses contraband vapor products 12 for sale in this state shall be liable for a civil penalty of up to 13 twenty-five thousand dollars for a first violation and up to thirty-five 14 thousand dollars for a second or any subsequent violation within three 15 years following a prior violation. The possession by a vapor products 16 dealer of more than one hundred units of any vapor products in a retail 17 location shall be presumptive evidence that such vapor products are 18 possessed for the purpose of a sale. 19 (6) Any vapor products dealer who purchases vapor products from any 20 vapor products distributor who does not possess a valid registration 21 under section eleven hundred eighty-three of this article, or whose 22 registration is revoked, shall be subject to a civil penalty of up to 23 four thousand dollars for the first such sale, and up to eight thousand 24 dollars for a second or any subsequent sale within three years. 25 (c) Forfeiture and seizure. (1) The commissioner, or their duly 26 authorized representative, shall seize any contraband vapor products 27 found in any place of business or vehicle where such products are 28 distributed, placed, stored, sold or offered for sale. Such seized 29 contraband vapor products shall be immediately forfeited to the state. 30 If such contraband vapor products are not the subject of a criminal 31 referral, such contraband vapor products shall be turned over to the 32 commissioner of health for destruction. 33 (2) Contraband vapor products that have been seized pursuant to this 34 subdivision that are the subject of a criminal referral shall be held in 35 the custody of either the commissioner or the prosecutor until such time 36 as the related criminal action has concluded. Notwithstanding any 37 provision of law to the contrary, such vapor products may be turned over 38 to the commissioner of health for destruction upon the written consent 39 of the prosecutor or an authorized assistant or agent thereof. 40 (3) The commissioner or the commissioner of health, whomever is in 41 possession of the seized and forfeited vapor products, may implement 42 procedures whereby any cost charged for the storage and destruction of 43 the seized and forfeited vapor products will be borne jointly and 44 severally by the manufacturer of the product and the person from whom 45 such products were seized. 46 § 7. The tax law is amended by adding a new section 1187 to read as 47 follows: 48 § 1187. Vapor products registry. (a) The commissioner shall maintain a 49 publicly available vapor products registry that lists all vapor products 50 the commissioner has authorized to be sold in this state. Such registry 51 shall be updated at least monthly. 52 (b) Every manufacturer of vapor products whose vapor products are sold 53 in this state shall certify to the commissioner each calendar year, or 54 earlier as necessary, on a form and in a manner prescribed by the 55 commissioner, that: (1) the manufacturer has received a marketing 56 authorization or similar order for each such vapor product from the 
 S. 9009 40 A. 10009 1 United States food and drug administration pursuant to section three 2 hundred eighty-seven-j of the federal food, drug, and cosmetic act; or 3 (2) each vapor product was marketed in the United States as of August 4 eighth, two thousand sixteen, a pre-market tobacco product application 5 was submitted for the vapor product to the United States food and drug 6 administration pursuant to section three hundred eighty-seven-j of the 7 federal food, drug, and cosmetic act on or before September ninth, two 8 thousand twenty, and either the application remains under review by the 9 United States food and drug administration or a final decision on the 10 application has not taken effect. 11 (c)(1) A vapor products manufacturer must file an application for 12 certification to the commissioner or for an amended certification to add 13 additional vapor products to the vapor products registry if the vapor 14 product satisfies the requirements provided in this section. Such 15 certification shall be effective for the calendar year in which it is 16 issued; provided, however, that any vapor products approved by the 17 commissioner for inclusion on the vapor products registry shall only be 18 listed on the registry and sold in this state until the end of the 19 calendar year, at which time, a manufacturer that intends to continue to 20 sell such vapor products in this state shall reapply to the commissioner 21 for such products to remain on the registry for the next calendar year. 22 The application shall include a schedule, in the manner prescribed by 23 the commissioner, that separately lists each of the vapor products 24 intended for sale in the state. The manufacturer shall submit with the 25 application a non-refundable fee equal to one thousand five hundred 26 dollars per individual vapor product to be listed on the registry for 27 each calendar year. 28 (2) For each vapor product to be listed on the registry, the applica- 29 tion to the commissioner shall include a copy of the marketing authori- 30 zation or similar order for the vapor product issued by the United 31 States food and drug administration pursuant to section three hundred 32 eighty-seven-j of the federal food, drug, and cosmetic act, as provided 33 under paragraph one of subdivision (b) of this section, or evidence that 34 the pre-market tobacco product application for the vapor product was 35 submitted to the United States food and drug administration, as provided 36 under paragraph two of subdivision (b) of this section and a final deci- 37 sion on the application has not taken effect. Other information, includ- 38 ing but not limited to, the twelve-digit universal product code, a 39 picture of the product label, a picture of the product to be listed on 40 the registry, the manufacturer contact information, and any other infor- 41 mation as prescribed by the commissioner, shall be included with the 42 application. 43 (d) A manufacturer shall notify the commissioner within thirty days of 44 any material change to the information contained in its application, 45 including any order or action by the United States food and drug admin- 46 istration that affects the ability of the vapor product to be introduced 47 or delivered into interstate commerce for commercial distribution in the 48 United States. 49 (e) Any vapor products that cannot be lawfully sold or possessed in 50 this state shall not be listed on the vapor products registry. Vapor 51 products distributors and vapor products dealers shall not purchase or 52 sell any vapor products that are not listed on the vapor products regis- 53 try. The commissioner may impose on each such distributor or dealer who 54 sells or offers for sale vapor products in this state that are not list- 55 ed on the vapor product registry a civil penalty of one thousand dollars 56 per day for each vapor product offered for sale in violation of this 
 S. 9009 41 A. 10009 1 section until each such vapor product is no longer offered for sale in 2 this state or each such vapor product is properly listed on the registry 3 pursuant to this section; provided, however, that any such penalty 4 imposed under this subdivision shall not exceed fifty thousand dollars 5 in the aggregate per day. 6 (f) (1) The commissioner shall provide a vapor products manufacturer 7 with notice and an opportunity to cure deficiencies before removing a 8 vapor product from the registry. The commissioner may remove a vapor 9 product from the registry no sooner than ten business days after the 10 date on which the commissioner provides such notice to the manufacturer 11 by electronic mail to the address provided on the vapor product manufac- 12 turer's most recent application for inclusion on the vapor products 13 registry submitted pursuant to this section. 14 (2) A determination by the commissioner to refuse inclusion of or to 15 remove a vapor product from the registry shall not be subject to review 16 in the division of tax appeals, but may be reviewed pursuant to article 17 seventy-eight of the civil practice law and rules, by a proceeding 18 commenced in the county where the commissioner has their principal 19 office. 20 (g) (1) When a vapor product is removed from the registry pursuant to 21 this section, the commissioner shall publish on the vapor products 22 registry website the name of the vapor product removed, the manufacturer 23 of such vapor product, the date of the removal of the vapor product from 24 such registry, and any additional information the commissioner 25 prescribes. 26 (2) Each vapor products distributor and vapor products dealer that 27 possesses in its inventory a vapor product that has been removed from 28 the vapor products registry shall: (i) be notified of such removal by 29 the manufacturer; and (ii) allow the manufacturer to retrieve the vapor 30 product from its inventory no later than ten business days after the 31 date the vapor product has been removed from the registry. After ten 32 days following removal of a vapor product from the registry, any such 33 removed vapor product shall be deemed contraband vapor products and 34 subject to seizure, forfeiture, and destruction pursuant to section 35 eleven hundred eighty-five of this article and shall not be purchased, 36 sold, or transferred in this state. Notwithstanding whether any taxes on 37 such vapor products have been paid or passed through to the purchaser, 38 the cost of forfeiture and destruction of such contraband vapor products 39 shall be borne jointly and severally by the manufacturer and the person 40 from whom the vapor products are seized. 41 § 8. Paragraph 6 of subdivision (a) of section 1801 of the tax law, as 42 amended by section 4 of part F of chapter 25 of the laws of 2009, is 43 amended to read as follows: 44 (6) fails to collect any tax required to be collected under articles 45 twelve-A, eighteen, twenty, twenty-two, twenty-eight [or], 46 twenty-eight-A, or twenty-eight-C of this chapter, or pursuant to the 47 authority of article twenty-nine of this chapter; 48 § 9. The tax law is amended by adding a new section 1814-b to read as 49 follows: 50 § 1814-b. Vapor products taxes. (a) Any person who, while not regis- 51 tered as a vapor products distributor pursuant to the provisions of 52 article twenty-eight-C of this chapter, sells more than fifty units of 53 vapor products to a vapor products dealer for sale within the state, 54 shall be guilty of a misdemeanor. If, within any ninety-day period, such 55 unregistered person sells more than one hundred units of vapor products 
 S. 9009 42 A. 10009 1 to a vapor products dealer in this state, such person shall be guilty of 2 a class A misdemeanor. 3 (b) Any person who, while not registered as a vapor products dealer 4 pursuant to the provisions of article twenty-eight-C of this chapter, 5 purchases or possesses for sale within this state, more than fifty units 6 of vapor products shall be guilty of a misdemeanor. If, within any nine- 7 ty-day period, such unregistered person purchases or possesses for sale 8 more than one hundred units of vapor products from a vapor products 9 distributor in this state, such person shall be guilty of a class A 10 misdemeanor. Provided, further, that any person who has twice been 11 convicted under this subdivision shall be guilty of a class E felony for 12 any subsequent violation of this subdivision, regardless of the amount 13 of vapor products involved in such violation. 14 (c)(1) Any person who sells or possesses for sale contraband vapor 15 products in this state shall be guilty of a class A misdemeanor. Any 16 person who violates the provisions of this paragraph after having previ- 17 ously been convicted of a violation of this paragraph within the preced- 18 ing five years, shall be guilty of a class E felony. 19 (2) Any person who sells or possesses for sale in this state more than 20 three hundred units of contraband vapor products shall be guilty of a 21 class E felony. 22 (3) Any person who sells or possesses for sale in this state more than 23 five hundred units of contraband vapor products shall be guilty of a 24 class D felony. 25 (d) Any person required to be registered under the provisions of 26 section eleven hundred eighty-three of this chapter that willfully 27 represents any false information required on the application prescribed 28 in section eleven hundred eighty-three of this chapter, shall be guilty 29 of a class A misdemeanor for each false representation. Any such person 30 who violates the provisions of this subdivision after having previously 31 been convicted of a violation of this subdivision within the preceding 32 five years shall be guilty of a class E felony. 33 § 10. Subdivision 3 of section 1399-ff of the public health law, as 34 amended by chapter 405 of the laws of 2000, is amended to read as 35 follows: 36 3. The enforcement officer shall promptly notify the commissioner of 37 taxation and finance and the director of the division of the lottery of 38 any determination, made after a hearing and any appeals therefrom have 39 been concluded, that a violation of this article has occurred together 40 with a direction to such commissioner and director with respect to any 41 action to be taken concerning registration under [section] sections four 42 hundred eighty-a and eleven hundred eighty-three of the tax law and 43 licensing under section sixteen hundred seven of the tax law. 44 § 11. Notwithstanding any other provision of law to the contrary, the 45 vapor products distributor tax due on vapor products that were first 46 imported or manufactured and are currently possessed in New York state 47 as of 11:59 pm eastern standard time on August 31, 2026, by any person 48 in possession for sale shall be subject to tax pursuant to subdivision 49 (a) of section 1181 of the tax law, as amended by section three of this 50 act, and shall be paid on or before September 20, 2026, in the form and 51 manner prescribed by the commissioner of taxation and finance. It shall 52 be presumed that the vapor products distributor tax imposed by article 53 28-C of the tax law has not been paid and is owing on all inventory in 54 the possession and control of a vapor products dealer. 
 S. 9009 43 A. 10009 1 § 12. This act shall take effect immediately; provided, however, that 2 sections three, six, eight and nine of this act shall take effect 3 September 1, 2026. 4 PART M 5 Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of 6 subdivision (b) of section 1402 of the tax law, as amended by section 1 7 of part U of chapter 59 of the laws of 2023, is amended to read as 8 follows: 9 For purposes of this subdivision, the phrase "real estate investment 10 trust transfer" shall mean any conveyance of real property or an inter- 11 est therein to a REIT, or to a partnership or corporation in which a 12 REIT owns a controlling interest immediately following the conveyance, 13 which conveyance (I) occurs in connection with the initial formation of 14 the REIT, provided that the conditions set forth in clauses (i) and (ii) 15 of this subparagraph are satisfied, or (II) in the case of any real 16 estate investment trust transfer occurring on or after July thirteenth, 17 nineteen hundred ninety-six and before September first, two thousand 18 [twenty-six] twenty-nine, is described in the last sentence of this 19 subparagraph. 20 § 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section 21 1201 of the tax law, as amended by section 2 of part U of chapter 59 of 22 the laws of 2023, is amended to read as follows: 23 (2) any issuance or transfer of an interest in a REIT, or in a part- 24 nership or corporation in which a REIT owns a controlling interest imme- 25 diately following the issuance or transfer, in connection with a trans- 26 action described in subparagraph one of this paragraph. Notwithstanding 27 the foregoing, a transaction described in the preceding sentence shall 28 not constitute a real estate investment trust transfer unless (A) it 29 occurs in connection with the initial formation of the REIT and the 30 conditions described in subparagraphs three and four of this paragraph 31 are satisfied, or (B) in the case of any real estate investment trust 32 transfer occurring on or after July thirteenth, nineteen hundred nine- 33 ty-six and before September first, two thousand [twenty-six] 34 twenty-nine, the transaction is described in subparagraph five of this 35 paragraph in which case the provisions of such subparagraph shall apply. 36 § 3. Subparagraph (B) of paragraph 2 of subdivision e of section 37 11-2102 of the administrative code of the city of New York, as amended 38 by section 3 of part U of chapter 59 of the laws of 2023, is amended to 39 read as follows: 40 (B) any issuance or transfer of an interest in a REIT, or in a part- 41 nership or corporation in which a REIT owns a controlling interest imme- 42 diately following the issuance or transfer in connection with a trans- 43 action described in subparagraph (A) of this paragraph. Notwithstanding 44 the foregoing, a transaction described in the preceding sentence shall 45 not constitute a real estate investment trust transfer unless (i) it 46 occurs in connection with the initial formation of the REIT and the 47 conditions described in subparagraphs (C) and (D) of this paragraph are 48 satisfied, or (ii) in the case of any real estate investment trust 49 transfer occurring on or after July thirteenth, nineteen hundred nine- 50 ty-six and before September first, two thousand [twenty-six] 51 twenty-nine, the transaction is described in subparagraph (E) of this 52 paragraph in which case the provision of such subparagraph shall apply. 53 § 4. This act shall take effect immediately. 
 S. 9009 44 A. 10009 1 PART N 2 Section 1. Notwithstanding any provision of law to the contrary, the 3 commissioner of taxation and finance is hereby directed to institute a 4 reregistration program in accordance with this section, to be completed 5 by December 31, 2030. Such commissioner shall issue a notice of expira- 6 tion to holders of current certificates of authority in an order and at 7 such times that such commissioner determines necessary for the proper 8 administration of such reregistration program and to ensure the integri- 9 ty and qualifications of registrants pursuant to this section. Such 10 notice of expiration shall be issued to the holder of such certificate 11 of authority at least 180 days prior to the date of expiration indicated 12 therein and shall be mailed by certified mail in accordance with the 13 provisions in subdivision (a) of section 1147 of the tax law. A properly 14 completed certificate of registration for a new certificate of authority 15 must be filed with such commissioner at least 90 days prior to the date 16 of expiration of the current certificate of authority. The commissioner, 17 within 30 days of receipt of a certificate of registration for a new 18 certificate of authority pursuant to this section, shall either: issue, 19 without charge, to each registrant a certificate of authority empowering 20 such person to collect sales tax for a specified term of no less than 21 three years, and a duplicate thereof for each additional place of busi- 22 ness of such person; or, shall propose to refuse to issue a certificate 23 of authority for any of the circumstances described in subparagraph (B) 24 of paragraph 4 of subdivision (a) of section 1134 of the tax law. A 25 person who has received a notice of proposed refusal pursuant to this 26 section may seek review of such determination in accordance with para- 27 graph (h) of subdivision 3-a of section 170 and subdivision 2 of section 28 2008 of the tax law; provided, however, the division of tax appeals must 29 schedule an expedited hearing within 30 days of receipt of a petition by 30 a person who has received a notice of proposed refusal pursuant to this 31 section. 32 § 2. (a) Notwithstanding any provision of law to the contrary, the 33 commissioner of taxation and finance shall administer a sales and use 34 tax penalty and interest discount program for all eligible taxpayers 35 with eligible tax liabilities as described in this section. 36 (b) For purposes of this sales and use tax penalty and interest 37 discount program, an eligible taxpayer is any person who is a holder of 38 a current certificate of authority subject to the reregistration program 39 authorized by section one of this act who has an eligible tax liability, 40 and who meets the conditions of this section. A person convicted of a 41 crime under the tax law, or a person convicted under the penal law who 42 is subject to a court order to pay a tax liability as result of such 43 conviction, is not eligible to participate in this program. 44 (c) For purposes of this section, an eligible tax liability is a 45 liability for sales and use taxes imposed by article 28 of the tax law 46 or pursuant to the authority of article 29 of such law, including any 47 interest or penalty thereon, that is fixed and final on or before 48 September 1, 2026, such that the taxpayer no longer has any right to an 49 administrative or judicial review. An eligible tax liability shall not 50 include any penalty imposed by paragraphs 2 or 5 of subdivision (a) of 51 section 1145 of the tax law, or subdivisions (i) or (j) of such section 52 1145, as added by section 15 of subpart J of part V-1 of chapter 57 of 53 the laws of 2009. An eligible tax liability shall not include any 54 assessment that was reduced by a written agreement with the commission- 55 er, a liability that was compromised pursuant to subdivision eigh- 
 S. 9009 45 A. 10009 1 teenth-a of section 171 of the tax law, or a liability reduced pursuant 2 to subdivision 3 of section 1700 of the tax law. 3 (d) The discounted amount due under the sales and use tax penalty and 4 interest discount program for an eligible taxpayer with an eligible tax 5 liability shall be the sales or use tax liability plus fifty percent of 6 the interest accrued thereon, through December 31, 2026. 7 (e) The commissioner of taxation and finance shall identify the eligi- 8 ble taxpayers with eligible tax liabilities for purposes of this 9 section, shall compute the discounted amount due on such eligible tax 10 liabilities, and shall notify eligible taxpayers of such discounted 11 amount due. The discount authorized by this section shall not be granted 12 to any eligible taxpayer for any eligible tax liability unless the 13 eligible taxpayer pays the discounted amount due in full on or before 14 December 31, 2026. Payment pursuant to this program shall be made by 15 eligible taxpayers with eligible tax liabilities in a form and manner as 16 prescribed by the commissioner of taxation and finance. 17 (f) No refund will be granted or subsequent credit allowed with 18 respect to any penalty or interest paid with respect to an eligible tax 19 liability prior to the time the eligible taxpayer participates in the 20 sales and use tax penalty and interest discount program. 21 (g) No refund will be granted or subsequent credit allowed with 22 respect to any amount paid under the sales and use tax penalty and 23 interest discount program. 24 (h) If an eligible taxpayer has entered into an installment payment 25 agreement that applies to an eligible tax liability, the taxpayer may 26 participate in the sales and use tax penalty and interest discount 27 program with respect to that liability if the taxpayer pays the 28 discounted amount due under such program in full by December 31, 2026. 29 § 3. This act shall take effect immediately. 30 PART O 31 Section 1. Section 1115 of the tax law is amended by adding a new 32 subdivision (mm) to read as follows: 33 (mm) The following shall be exempt from tax under this article: (1) 34 Receipts from the retail sale of electricity by means of a commercial 35 electric vehicle charging station. For purposes of this subdivision, a 36 "commercial electric vehicle charging station" shall mean a device that 37 supplies electricity to charge the battery of an electric vehicle and 38 that accepts payment for such electricity at the time such charging 39 takes place. 40 (2) The purchase of electricity for sale by means of a commercial 41 electric vehicle charging station shall be deemed a retail sale subject 42 to tax under subdivision (b) of section eleven hundred five of this 43 article. 44 § 2. This act shall take effect on the first day of a sales tax quar- 45 terly period next commencing at least 90 days after this act shall have 46 become a law. 47 PART P 48 Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of 49 section 1115 of the tax law, as amended by section 1 of part AA of chap- 50 ter 59 of the laws of 2025, is amended to read as follows: 51 (B) Until May thirty-first, two thousand [twenty-six] twenty-nine, the 52 food and drink excluded from the exemption provided by clauses (i), (ii) 
 S. 9009 46 A. 10009 1 and (iii) of subparagraph (A) of this paragraph, and bottled water, 2 shall be exempt under this subparagraph: (i) when sold for one dollar 3 and fifty cents or less through any vending machine that accepts coin or 4 currency only; or (ii) when sold for two dollars or less through any 5 vending machine that accepts any form of payment other than coin or 6 currency, whether or not it also accepts coin or currency. 7 § 2. This act shall take effect immediately. 8 PART Q 9 Section 1. Section 2 of part PP of chapter 58 of the laws of 2024 10 amending the tax law relating to establishing a sales tax exemption for 11 residential energy storage, is amended to read as follows: 12 § 2. This act shall take effect June 1, 2024 and shall expire and be 13 deemed repealed June 1, [2026] 2028. 14 § 2. This act shall take effect immediately. 15 PART R 16 Section 1. Subdivision (a) of section 308 of the tax law, as amended 17 by chapter 2 of the laws of 1995, is amended to read as follows: 18 (a) General.--Every petroleum business subject to tax under this arti- 19 cle shall monthly, on or before the twentieth day following the close of 20 its taxable month, file a return which shall state (i) the number of 21 gallons of motor fuel imported or caused to be imported into this state 22 for use, distribution, storage or sale in the state or produced, 23 refined, manufactured or compounded in the state during the preceding 24 calendar month, (ii) the number of gallons of diesel motor fuel sold or 25 used or, with respect to gallonage which prior thereto has not been 26 included in the measure of the tax imposed by this article, delivered by 27 the petroleum business to a filling station or into the fuel tank 28 connecting with the engine of a motor vehicle for use in the operation 29 thereof during the preceding calendar month, (iii) the number of gallons 30 of, and the resultant product produced, manufactured or blended, using 31 diesel motor fuel as a component of such resultant product and the sales 32 of such resultant product, and (iv) the number of gallons of residual 33 petroleum product sold or used in this state and the sales of such resi- 34 dual petroleum product, for the period covered by such return. A resi- 35 dual petroleum business shall include in its reports the number of 36 gallons of residual petroleum product imported into the state or 37 purchased in this state, the number of gallons of diesel motor fuel 38 purchased in this state and the number of gallons of, and the resultant 39 product produced, manufactured or blended by such petroleum business, 40 using diesel motor fuel as a component of such resultant product. The 41 commissioner of taxation and finance may permit the filing of a return 42 on a quarterly basis in the case of a petroleum business which only 43 makes sales of diesel motor fuel solely for residential heating purposes 44 and which is registered under article twelve-A of this chapter as a 45 diesel motor fuel distributor under a limited registration applicable 46 only to the importation, sale and distribution of diesel motor fuel for 47 the purposes described in subparagraph (i) of paragraph (b) of subdivi- 48 sion three of section two hundred eighty-two-a of this chapter or in the 49 case of a petroleum business registered as a "distributor of kero-jet 50 fuel only" pursuant to the provisions of subdivision two of section two 51 hundred eighty-two-a of this chapter. In the case of such returns 52 permitted to be filed on a quarterly basis, the adjustments to the rates 
 S. 9009 47 A. 10009 1 of tax then in effect, as provided for in sections three hundred one-a 2 and three hundred one-e of this article, which take effect on the first 3 day of January of each year shall, with respect to such quarterly 4 return, take effect on the first day of the next succeeding March. 5 Returns shall be filed with the commissioner [in] on a form prescribed 6 by the commissioner, setting forth such other information as the commis- 7 sioner may prescribe. Every petroleum business shall also transmit such 8 other returns and such facts and information as the commissioner may 9 require in the administration of this article. Every petroleum business 10 which is a corporation subject to tax under this article and which ceas- 11 es to exercise its franchise or to be subject to the tax imposed by this 12 article shall transmit to the commissioner a return on the date of such 13 cessation, or at such other time as the commissioner may require, cover- 14 ing each month or period for which no return was theretofore filed. The 15 commissioner may, if the commissioner deems it necessary in order to 16 insure the payment of the tax imposed by this article, require returns 17 to be made at such times and covering such periods as the commissioner 18 may deem necessary. Notwithstanding the foregoing provisions of this 19 subdivision, the commissioner may require any corporation or unincorpo- 20 rated business [which] that engages in transactions involving petroleum 21 or similar products, including aviation fuels, to file a monthly return, 22 which shall contain [any data specified by him] such information as the 23 commissioner prescribes, regardless of whether such corporation or unin- 24 corporated business is subject to tax under this article. Notwithstand- 25 ing the provisions of this subdivision, every petroleum business that 26 operates a "commercial vessel", as defined in subdivision (b) of section 27 eleven hundred one of this chapter, shall annually file the returns 28 required under this section, on a form and containing such information 29 as the commissioner prescribes. Such "commercial vessel" returns shall 30 be filed annually on or before March twentieth and shall cover the four 31 sales tax quarterly periods described in subdivision (b) of section 32 eleven hundred thirty-six of this chapter immediately preceding such 33 date. 34 § 2. This act shall take effect on the first day of the month next 35 commencing at least ninety days after this act shall have become a law; 36 provided, however, that a petroleum business that is required to file an 37 annual return pursuant to section one of this act shall be required to 38 file monthly returns for periods ending on or before such effective 39 date; and provided further, however, that such petroleum business shall 40 file an annual return for the remainder of the annual period of March 1, 41 2026 through February 28, 2027, on or before March 20, 2027, and shall 42 be required to file annual returns thereafter. 43 PART S 44 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 45 amending the tax law and other laws relating to providing exemptions, 46 reimbursements and credits from various taxes for certain alternative 47 fuels, as amended by section 1 of part EE of chapter 59 of the laws of 48 2021, is amended to read as follows: 49 § 19. This act shall take effect immediately; provided, however, that 50 sections one through thirteen of this act shall take effect September 1, 51 2006 and shall be deemed repealed on September 1, [2026] 2031 and such 52 repeal shall apply in accordance with the applicable transitional 53 provisions of sections 1106 and 1217 of the tax law, and shall apply to 54 sales made, fuel compounded or manufactured, and uses occurring on or 
 S. 9009 48 A. 10009 1 after such date, and with respect to sections seven through eleven of 2 this act, in accordance with applicable transitional provisions of 3 sections 1106 and 1217 of the tax law; provided, however, that the 4 commissioner of taxation and finance shall be authorized on and after 5 the date this act shall have become a law to adopt and amend any rules 6 or regulations and to take any steps necessary to implement the 7 provisions of this act; provided further that sections fourteen through 8 sixteen of this act shall take effect immediately and shall apply to 9 taxable years beginning on or after January 1, 2006. 10 § 2. This act shall take effect immediately. 11 PART T 12 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real 13 property tax law, as amended by section 1 of subpart A of part Z of 14 chapter 59 of the laws of 2022, is amended to read as follows: 15 (a-2) Notwithstanding any provision of law to the contrary, [where an 16 application for the "enhanced" STAR exemption authorized by subdivision 17 four of this section has not been filed on or before the taxable status 18 date, and the owner believes that good cause existed for the failure to 19 file the application by that date,] when a property owner of a property 20 with a basic STAR exemption believes they have become eligible for the 21 enhanced STAR exemption but their basic STAR exemption has not been 22 changed to an enhanced STAR exemption pursuant to the provisions of 23 paragraph (b) of subdivision four-b of this section, the owner may, no 24 later than the last day for paying school taxes without incurring inter- 25 est or penalty, submit a [written] request to the commissioner asking 26 [him or her to extend the filing deadline and] the commissioner to grant 27 the exemption. Such request shall be in a form prescribed by the commis- 28 sioner and shall contain an explanation of why the [deadline was missed, 29 and shall be accompanied by an application, reflecting the facts and 30 circumstances as they existed on the taxable status date] property owner 31 believes they have become eligible for the enhanced STAR exemption. 32 After consulting with the assessor, the commissioner may [extend the 33 filing deadline and] grant the exemption if the commissioner is satis- 34 fied that [(i) good cause existed for the failure to file the applica- 35 tion by the taxable status date, and that (ii)] the applicant is [other- 36 wise] entitled to the exemption. The commissioner shall mail notice of 37 [his or her] such determination to such owner and the assessor. If the 38 determination states that the commissioner has granted the exemption, 39 the assessor shall thereupon be authorized and directed to correct the 40 assessment roll accordingly, or, if another person has custody or 41 control of the assessment roll, to direct that person to make the appro- 42 priate corrections. Provided, however, that if the assessment roll 43 cannot be corrected in time for the exemption to appear on the appli- 44 cant's school tax bill, the commissioner shall be authorized to remit 45 directly to the applicant the tax savings that the STAR exemption would 46 have yielded if it had appeared on the applicant's tax bill. The amounts 47 so payable shall be paid from the account established for the payment of 48 STAR benefits to late registrants pursuant to subparagraph (iii) of 49 paragraph (a) of subdivision fourteen of this section. 50 § 2. Paragraphs (c) and (d) of subdivision 14 of section 425 of the 51 real property tax law are REPEALED and a new paragraph (c) is added to 52 read as follows: 53 (c) When the commissioner determines that a property is ineligible for 54 a STAR exemption, notice of such determination and an opportunity for 
 S. 9009 49 A. 10009 1 review thereof shall be provided in the manner set forth in subdivision 2 four-b of this section. 3 § 3. Subparagraphs (ii) and (iii) of paragraph (b) of subdivision 15 4 of section 425 of the real property tax law are REPEALED and a new 5 subparagraph (ii) is added to read as follows: 6 (ii) When the commissioner determines that a property is ineligible 7 for a STAR exemption, notice of such determination and an opportunity 8 for review thereof shall be provided in the manner set forth in subdivi- 9 sion four-b of this section. 10 § 4. Subparagraph (A) of paragraph 1 of subsection (eee) of section 11 606 of the tax law, as amended by section 8 of part A of chapter 73 of 12 the laws of 2016, is amended to read as follows: 13 (A) "Qualified taxpayer" means a resident individual of the state, who 14 maintained [his or her] their primary residence in this state on [Decem- 15 ber thirty-first] July first of the taxable year, and who was an owner 16 of that property on that date, provided however: 17 (i) A taxpayer whose primary residence received a STAR exemption for 18 the associated fiscal year shall not be considered a qualified taxpayer 19 for purposes of this subsection. 20 (ii) An individual may be considered a qualified taxpayer with respect 21 to no more than one primary residence during any given taxable year. 22 [(iii) If a resident individual was an owner of the property during 23 the taxable year but did not own it on December thirty-first of the 24 taxable year, he or she shall be considered a qualified taxpayer if the 25 property was his or her primary residence during the taxable year and he 26 or she paid qualifying taxes on that property while he or she was still 27 an owner of that property. 28 (iv) If a resident individual has acquired ownership of property 29 during a taxable year, such resident individual shall not be considered 30 a qualified taxpayer for that taxable year to the extent that an advance 31 payment of the credit for that taxable year has been issued to the prior 32 owner with respect to the same property, unless such resident individual 33 can demonstrate that he or she paid qualifying taxes on such property 34 during the taxable year, and that the prior owner did not.] 35 § 5. Subsection (eee) of section 606 of the tax law is amended by 36 adding a new paragraph 2 to read as follows: 37 (2) Allowance of credit. A qualified taxpayer shall be allowed a cred- 38 it as provided in paragraph three or four of this subsection, whichever 39 is applicable, against the taxes imposed by this article reduced by the 40 credits permitted by this article, provided that the requirements set 41 forth in the applicable subsection are satisfied. If the credit exceeds 42 the tax as so reduced for such year under this article, the excess shall 43 be treated as an overpayment, to be credited or refunded, without inter- 44 est. If a qualified taxpayer is not required to file a return pursuant 45 to section six hundred fifty-one of this article, a qualified taxpayer 46 may nevertheless receive the full amount of the credit to be credited or 47 repaid as an overpayment, without interest thereon. 48 § 6. The opening paragraph of subparagraph (A) of paragraph 4 of 49 subsection (eee) of section 606 of the tax law, as amended by section 11 50 of part O of chapter 59 of the laws of 2025, is amended to read as 51 follows: 52 Beginning with taxable years after two thousand [twenty-four] twenty- 53 five, an enhanced STAR credit shall be available to a qualified taxpayer 54 where both of the following conditions are satisfied: 
 S. 9009 50 A. 10009 1 § 7. Subparagraph (C) of paragraph 13 of subsection (eee) of section 2 606 of the tax law, as added by section 1 of part TT of chapter 59 of 3 the laws of 2017, is amended to read as follows: 4 (C) If the commissioner determines that a taxpayer received a prelimi- 5 nary advance payment that is above or below the advance payment to which 6 he or she was entitled under this subsection, the commissioner shall 7 provide notice to such taxpayer that the next advance payment due to 8 such taxpayer under this subsection shall be adjusted to reconcile such 9 underpayment or overpayment[; provided, however, the commissioner shall 10 permit a taxpayer to request that such adjustment be made on an 11 originally filed timely income tax return for the tax year in which such 12 overpayment or underpayment occurred, provided such return is filed on 13 or before the due date for such return, determined without regard to 14 extensions]. 15 § 8. This act shall take effect immediately; provided, however, that 16 section six of this act shall be deemed to have been in full force and 17 effect on and after January 1, 2026. 18 PART U 19 Section 1. Section 4 of chapter 475 of the laws of 2013 amending the 20 real property tax law relating to assessment ceilings for local public 21 utility mass real property, as amended by section 1 of part Y of chapter 22 59 of the laws of 2022, is amended to read as follows: 23 § 4. This act shall take effect on the first of January of the second 24 calendar year commencing after this act shall have become a law and 25 shall apply to assessment rolls with taxable status dates on or after 26 such date; provided, however, that this act shall expire and be deemed 27 repealed [twelve] sixteen years after such effective date; and provided, 28 further, that no assessment of local public utility mass real property 29 appearing on the municipal assessment roll with a taxable status date 30 occurring in the first calendar year after this act shall have become a 31 law shall be less than ninety percent or more than one hundred ten 32 percent of the assessment of the same property on the date this act 33 shall have become a law. 34 § 2. This act shall take effect immediately. 35 PART V 36 Section 1. Paragraph a of subdivision 3 of section 467-b of the real 37 property tax law, as amended by section 1 of part U of chapter 55 of the 38 laws of 2014, is amended to read as follows: 39 a. for a dwelling unit where the head of the household is a person 40 sixty-two years of age or older, no tax abatement shall be granted if 41 the combined income of all members of the household for the income tax 42 year immediately preceding the date of making application exceeds four 43 thousand dollars, or such other sum not more than twenty-five thousand 44 dollars beginning July first, two thousand five, twenty-six thousand 45 dollars beginning July first, two thousand six, twenty-seven thousand 46 dollars beginning July first, two thousand seven, twenty-eight thousand 47 dollars beginning July first, two thousand eight, twenty-nine thousand 48 dollars beginning July first, two thousand nine, [and] fifty thousand 49 dollars beginning July first, two thousand fourteen, and seventy-five 50 thousand dollars beginning July first, two thousand twenty-six, as may 51 be provided by the local law, ordinance or resolution adopted pursuant 52 to this section, provided that when the head of the household retires 
 S. 9009 51 A. 10009 1 before the commencement of such income tax year and the date of filing 2 the application, the income for such year may be adjusted by excluding 3 salary or earnings and projecting [his or her] their retirement income 4 over the entire period of such year, and further provided that, notwith- 5 standing any other provision of law, in a city with a population of one 6 million or more, the income limit of seventy-five thousand dollars 7 beginning July first, two thousand twenty-six, shall apply without the 8 need for a local law, ordinance or resolution to be adopted pursuant to 9 this section. 10 § 2. Paragraph b of subdivision 3 of section 467-b of the real proper- 11 ty tax law, as amended by section 1 of chapter 129 of the laws of 2014, 12 is amended to read as follows: 13 b. for a dwelling unit where the head of the household qualifies as a 14 person with a disability pursuant to subdivision five of this section, 15 no tax abatement shall be granted if the combined income for all members 16 of the household for the current income tax year exceeds fifty thousand 17 dollars beginning July first, two thousand fourteen, and seventy-five 18 thousand dollars beginning July first, two thousand twenty-six, as may 19 be provided by the local law, ordinance or resolution adopted pursuant 20 to this section, and further provided that, notwithstanding any other 21 provision of law, in a city with a population of one million or more, 22 the income limit of seventy-five thousand dollars beginning July first, 23 two thousand twenty-six shall apply without the need for a local law, 24 ordinance or resolution to be adopted pursuant to this section. 25 § 3. Subparagraph 1 of paragraph d of subdivision 1 of section 467-c 26 of the real property tax law, as amended by section 2 of part U of chap- 27 ter 55 of the laws of 2014, is amended to read as follows: 28 (1) a person or [his or her] their spouse who is sixty-two years of 29 age or older and is entitled to the possession or to the use and occu- 30 pancy of a dwelling unit, provided, however, with respect to a dwelling 31 which was subject to a mortgage insured or initially insured by the 32 federal government pursuant to section two hundred thirteen of the 33 National Housing Act, as amended "eligible head of the household" shall 34 be limited to that person or [his or her] their spouse who was entitled 35 to possession or the use and occupancy of such dwelling unit at the time 36 of termination of such mortgage, and whose income when combined with the 37 income of all other members of the household, does not exceed six thou- 38 sand five hundred dollars for the taxable period, or such other sum not 39 less than sixty-five hundred dollars nor more than twenty-five thousand 40 dollars beginning July first, two thousand five, twenty-six thousand 41 dollars beginning July first, two thousand six, twenty-seven thousand 42 dollars beginning July first, two thousand seven, twenty-eight thousand 43 dollars beginning July first, two thousand eight, twenty-nine thousand 44 dollars beginning July first, two thousand nine, [and] fifty thousand 45 dollars beginning July first, two thousand fourteen, and seventy-five 46 thousand dollars beginning July first, two thousand twenty-six, as may 47 be provided by local law, and further provided that, notwithstanding any 48 other provision of law, in a city with a population of one million or 49 more, the income limit of seventy-five thousand dollars beginning July 50 first, two thousand twenty-six shall apply without the need for a local 51 law to be adopted pursuant to this section; or 52 § 4. Paragraph m of subdivision 1 of section 467-c of the real proper- 53 ty tax law, as amended by chapter 129 of the laws of 2014, is amended to 54 read as follows: 55 m. "Person with a disability" means an individual who is currently 56 receiving social security disability insurance (SSDI) or supplemental 
 S. 9009 52 A. 10009 1 security income (SSI) benefits under the federal social security act or 2 disability pension or disability compensation benefits provided by the 3 United States department of veterans affairs or those previously eligi- 4 ble by virtue of receiving disability benefits under the supplemental 5 security income program or the social security disability program and 6 currently receiving medical assistance benefits based on determination 7 of disability as provided in section three hundred sixty-six of the 8 social services law and whose income for the current income tax year, 9 together with the income of all members of such individual's household, 10 does not exceed fifty thousand dollars beginning July first, two thou- 11 sand fourteen, and seventy-five thousand dollars beginning July first, 12 two thousand twenty-six, as may be provided by local law, and further 13 provided that, notwithstanding any other provision of law, in a city 14 with a population of one million or more, the income limit of seventy- 15 five thousand dollars beginning July first, two thousand twenty-six 16 shall apply without the need for a local law to be adopted pursuant to 17 this section. 18 § 5. Section 4 of part U of chapter 55 of the laws of 2014, amending 19 the real property tax law relating to the tax abatement and exemption 20 for rent regulated and rent controlled property occupied by senior citi- 21 zens, as amended by chapter 144 of the laws of 2024, is amended to read 22 as follows: 23 § 4. This act shall take effect July 1, 2014, and sections one and two 24 of this act shall expire and be deemed repealed June 30, [2026] 2028; 25 provided that the amendment to section 467-b of the real property tax 26 law made by section one of this act shall not affect the expiration of 27 such section and shall be deemed to expire therewith. 28 § 6. Section 4 of chapter 129 of the laws of 2014, amending the real 29 property tax law relating to the tax abatement and exemption for rent 30 regulated and rent controlled property occupied by persons with disabil- 31 ities, as amended by chapter 144 of the laws of 2024, is amended to read 32 as follows: 33 § 4. This act shall take effect July 1, 2014 provided, however, that: 34 (a) the amendments to paragraph b of subdivision 3 of section 467-b of 35 the real property tax law made by section one of this act shall be 36 subject to the expiration and reversion of such subdivision pursuant to 37 section 17 of chapter 576 of the laws of 1974, as amended, when upon 38 such date the provisions of section two of this act shall take effect; 39 and 40 (b) nothing contained in this act shall be construed so as to extend 41 the provisions of this act beyond June 30, [2026] 2028, when upon such 42 date this act shall expire and the provisions contained in this act 43 shall be deemed repealed. 44 § 7. This act shall take effect immediately; provided however: 45 (a) sections one, two, three and four of this act shall expire and be 46 deemed repealed June 30, 2028; 47 (b) the amendments to paragraphs a and b of subdivision 3 of section 48 467-b of the real property tax law made by sections one and two of this 49 act shall not affect the expiration of such paragraphs and shall be 50 deemed to expire therewith; 51 (c) the amendments to subparagraph 1 of paragraph d of subdivision 1 52 of section 467-c of the real property tax law made by section three of 53 this act shall not affect the expiration of such subparagraph and shall 54 be deemed to expire therewith; and 55 (d) the amendments to paragraph m of subdivision 1 of section 467-c of 56 the real property tax law made by section four of this act shall not 
 S. 9009 53 A. 10009 1 affect the expiration of such paragraph and shall be deemed to expire 2 therewith. 3 PART W 4 Section 1. Subdivisions 2, 4 and 5 of section 136 of the racing, 5 pari-mutuel wagering and breeding law, as added by section 1 of subpart 6 A of part FF of chapter 59 of the laws of 2025, are amended to read as 7 follows: 8 2. Beginning with state fiscal year two thousand twenty-six, the 9 aggregate amount of the pari-mutuel wagering tax paid by a harness track 10 pursuant to [paragraph (b) of] subdivision one of this section in a 11 state fiscal year shall not exceed the pari-mutuel wagering tax attrib- 12 utable to live racing handle paid by such harness track in state fiscal 13 year two thousand twenty-four. 14 4. Breaks[, as defined in sections two hundred thirty-six, two hundred 15 thirty-eight, three hundred eighteen, and four hundred eighteen of this 16 chapter] are not permitted, unless required by another jurisdiction 17 pursuant to section nine hundred five of this chapter. All distributions 18 to the holders of winning tickets shall be calculated to the nearest 19 penny. 20 5. Notwithstanding subdivision four of this section, a racetrack may 21 round to the nearest nickel for bets made at the facility[, however the] 22 only if such breaks [must be] are directed to the retired and rescued 23 thoroughbred horse aftercare fund pursuant to section two hundred nine-n 24 of the tax law if the bet was made on a thoroughbred race, and to the 25 retired and rescued standardbred horse aftercare fund pursuant to 26 section two hundred nine-o of the tax law if the bet was made on a 27 [standardbred] harness race. 28 § 2. Section 236 of the racing, pari-mutuel wagering and breeding law, 29 as amended by chapter 18 of the laws of 2008, subdivisions 1, 2, and 3 30 as amended by chapter 243 of the laws of 2020, is amended to read as 31 follows: 32 § 236. Disposition of pari-mutuel pools; percentage payable to state 33 as a tax; authority of counties or certain cities to impose a tax. 1. 34 Every corporation authorized under this chapter to conduct pari-mutuel 35 betting at a race meeting on races run thereat, except as provided in 36 section two hundred thirty-eight of this article with respect to the 37 franchised corporation, shall distribute all sums deposited in any pari- 38 mutuel pool to the holders of winning tickets therein, providing such 39 tickets be presented for payment before April first of the year follow- 40 ing the year of their purchase, less an amount that shall be established 41 and retained by such racing corporation of between fourteen to twenty 42 percent of the total deposits in pools resulting from regular on-track 43 bets and less sixteen to twenty-two percent of the total deposits in 44 pools resulting from multiple on-track bets and less twenty to thirty 45 percent of the total deposits in pools resulting from exotic on-track 46 bets and less twenty to thirty-six percent of the total pools resulting 47 from super exotic on-track bets[, plus the breaks]. The retention rate 48 to be established is subject to the prior approval of the commission. 49 Such rate may not be changed more than once per calendar quarter to be 50 effective on the first day of the calendar quarter. "Exotic bets" and 51 "multiple bets" shall have the meanings set forth in section five 52 hundred nineteen of this chapter [and breaks are hereby defined as the 53 odd cents over any multiple of five for payoffs greater than one dollar 54 five cents but less than five dollars, over any multiple of ten for 
 S. 9009 54 A. 10009 1 payoffs greater than five dollars but less than twenty-five dollars, 2 over any multiple of twenty-five for payoffs greater than twenty-five 3 dollars but less than two hundred fifty dollars, or over any multiple of 4 fifty for payoffs over two hundred fifty dollars]. "Super exotic bets" 5 shall have the meaning set forth in section three hundred one of this 6 chapter. Of the amount so retained there shall be paid by such corpo- 7 ration to the department of taxation and finance as a reasonable tax by 8 the state for the privilege of conducting pari-mutuel betting on the 9 races run at the race meeting held by such corporation, which tax is 10 hereby levied, [the following percentages of the total pool, plus 11 fifty-five percent of the breaks; the applicable rates for regular and 12 multiple bets shall be one and one-half percent; the applicable rates 13 for exotic bets shall be six and three-quarter percent and the applica- 14 ble rate for super exotic bets shall be seven and three-quarter percent. 15 Effective on and after September first, nineteen hundred ninety-four, 16 the applicable tax rate shall be one percent of all wagers, provided 17 that, an amount equal to one-half the difference between the taxation 18 rate for on-track regular, multiple and exotic bets as of December thir- 19 ty-first, nineteen hundred ninety-three and the rates on such on-track 20 wagers as herein provided shall be used exclusively for purses. 21 Provided, however, that] in the applicable percentage set forth in 22 subdivision one of section one hundred thirty-six of this chapter. Any 23 such racing corporation shall, for any twelve-month period beginning on 24 April first in nineteen hundred ninety and any year thereafter, [each of 25 the applicable rates set forth above shall be increased by one-quarter 26 of one percent on all on-track bets of any such racing corporation that 27 did not] expend an amount equal to at least one-half of one percent of 28 its on-track bets during the immediately preceding calendar year for 29 enhancements consisting of capital improvements as defined by section 30 two hundred thirty-seven of this article, repairs to its physical plant, 31 structures, and equipment used in its racing or wagering operations [as 32 certified by the commission to the commissioner of taxation and finance 33 no later than eighty days after the close of such calendar year,] and 34 five special events at each track in each calendar year, not otherwise 35 conducted in the ordinary course of business, the purpose of which shall 36 be to encourage, attract and promote track attendance and encourage new 37 and continued patronage, which events shall be subject to the prior 38 approval of the commission for purposes of this subdivision. In the 39 determination of the amounts expended for such enhancements, the commis- 40 sion may consider the immediately preceding twelve-month calendar period 41 or the average of the two immediately preceding twelve-month calendar 42 periods. Provided further, however, that of the portion of the increased 43 amounts retained by such corporation above those amounts retained in 44 nineteen hundred eighty-four, an amount of such increase shall be 45 distributed to purses in the same proportion as commissions and purses 46 were distributed during nineteen hundred eighty-four as certified by the 47 commission. [Such corporation in the second zone shall receive a credit 48 against the daily tax imposed by this subdivision in an amount equal to 49 four-tenths of one percent of total daily pools resulting from the 50 simulcast of such corporation's races to licensed facilities operated by 51 regional off-track betting corporations in accordance with section one 52 thousand eight of this chapter, provided however, that sixty percent of 53 the amount of such credit shall be used exclusively to increase purses 54 for overnight races conducted by such corporation; and, provided 55 further, that in no event shall such total daily credit exceed four- 56 tenths of one percent of the total daily pool of such corporation.] 
 S. 9009 55 A. 10009 1 Such corporation shall pay to the New York state thoroughbred breeding 2 and development fund one-half of one percent of the total daily on-track 3 pari-mutuel pools from regular, multiple and exotic bets, and three 4 percent of super exotic bets. [The corporation shall receive credit as a 5 reduction of the tax by the state for the privilege of conducting pari- 6 mutuel betting for the amounts, except amounts paid from super exotic 7 betting pools, paid to the New York state thoroughbred breeding and 8 development fund after January first, nineteen hundred seventy-eight.] 9 Such corporation shall distribute to purses an amount equal to fifty 10 percent of any compensation it receives from simulcasting or from wager- 11 ing conducted outside the United States. Such corporation shall pay to 12 the commission as a regulatory fee, which fee is hereby levied, six- 13 tenths of one percent of the total daily on-track pari-mutuel pools of 14 such corporation. 15 2. The balance of the retained percentage of such pool [and of the 16 breaks] shall be held by such corporation for its own use and purposes, 17 except that in addition to any payments to purses provided for in subdi- 18 vision one of this section, an amount equal to two and one-half percent 19 of the total pools resulting from on-track regular bets and exotic bets 20 and an amount equal to three and one-half percent of the total pools 21 resulting from on-track multiple bets and an amount equal to twelve 22 percent of on-track super exotic bets shall be used exclusively for the 23 purpose of increasing purses (including stakes, premiums and prizes) 24 awarded to horses in races conducted by such corporation. Such two and 25 one-half percent and three and one-half percent shall be in addition to 26 (i) four and one-half percent of such total pools resulting from regular 27 and multiple wagers and five and one-half percent of such total pools 28 resulting from exotic wagers, or (ii) the percentage of such total pools 29 used for purses (including stakes, premiums and prizes) during the year 30 nineteen hundred eighty-two, whichever is larger. Such percentage of the 31 total pools mentioned in this subdivision shall be used for purses 32 (including stakes, premiums and prizes) in races hereafter conducted by 33 such corporation, and any portion not so used during any year shall be 34 so used during the following year[, failing which such portion shall be 35 payable to the commissioner of taxation and finance as additional tax]. 36 The commission shall report annually, on or before July first, to the 37 director of the budget, the chair of the senate finance committee and 38 the chair of the assembly ways and means committee the extent to which 39 such corporation used and retained percentages [and breakage] for oper- 40 ations, maintenance, capital improvements, advertising and promotion, 41 administration and general overhead and evaluate the effectiveness and 42 make recommendations with respect to the application of the [reduced] 43 rates of taxation [as provided for in subdivision one of this section in 44 accomplishing the objectives stated therein]. Such report shall also 45 specify the amount of such retained percentages [and breakage] used for 46 investments not directly related to racing activities and such amounts 47 used to declare dividends or other profit distributions, additions to 48 capital stock, its sale and transfer and additions to retained earnings. 49 Such reports shall also include an analysis of any such agreements or 50 proposals to conduct or otherwise expand wagers authorized under article 51 ten of this chapter and present its conclusions with respect to the 52 conduct of such wagering, the nature of such proposals and agreements, 53 and recommendations to ensure the future maintenance of the intent of 54 this article. 55 3. [Tax rates in event of a failure to maintain] Maintenance of pari- 56 mutuel racing activity. [a. Notwithstanding any other provision of this 
 S. 9009 56 A. 10009 1 section to the contrary, for] For any calendar year commencing on or 2 after January first, nineteen hundred eighty-nine, [in which] a racing 3 corporation in zone two [does] shall not conduct [a minimum number of] 4 fewer pari-mutuel programs and pari-mutuel races at its facilities 5 [equal to at least] than ninety percent of the programs and races so 6 conducted during nineteen hundred eighty-five or during nineteen hundred 7 eighty-six, whichever is less, [in lieu of the tax rates set forth in 8 subdivision one of this section the applicable pari-mutuel tax rates for 9 such corporation with respect to on-track pari-mutuel betting pools 10 during such year shall be increased by one percent of regular, multiple 11 and exotic betting pools. Notwithstanding the foregoing, no increase 12 shall be proposed unless such corporation has been afforded notice and 13 opportunity to be heard. The commission shall promulgate rules and regu- 14 lations to implement the provisions relating to notice and hearing. 15 b. The provisions of this subdivision shall not apply to a corporation 16 for any calendar year for which the commission certifies to the commis- 17 sioner of taxation and finance: 18 (i) by December fifteenth of the year immediately preceding such year, 19 that such corporation has been assigned for such year, from the programs 20 and races it requested, at least the minimum number of programs and 21 races prescribed in paragraph a of this subdivision, or, if fewer than 22 such number were assigned for such year, that the assignment of such 23 lesser number was for] unless such corporation demonstrates to the 24 satisfaction of the commission good cause due to factors beyond the 25 control of such corporation or because the commission [found] finds that 26 it would be uneconomical or impractical for such corporation to be 27 assigned or conduct the prescribed number[; and 28 (ii) by January thirty-first of the year immediately subsequent to 29 such year, that such corporation did conduct such number of programs and 30 races as were certified pursuant to subparagraph (i) of this paragraph, 31 or if it failed to conduct such number that such failure was for good 32 cause due to factors beyond its control or because the commission found 33 it uneconomical or impractical for such corporation to conduct such a 34 number. 35 c. For any calendar year for which the commission does not certify 36 pursuant to the provisions of subparagraph (i) of paragraph b of this 37 subdivision with respect to a corporation, the tax imposed by this 38 section shall be computed by substituting the provisions of paragraph a 39 of this subdivision for the provisions of subdivision one of this 40 section and shall pay the tax so computed to the commissioner of taxa- 41 tion and finance. In such computation and payment, all other provisions 42 of this section shall apply as if the provisions of this paragraph and 43 of paragraph a of this subdivision had been incorporated in whole in 44 subdivision one of this section. 45 d. For any calendar year for which the commission does not certify 46 pursuant to the provisions of subparagraph (ii) of paragraph b of this 47 subdivision with respect to a corporation, the tax required to be paid 48 hereunder for such year shall be equal to the difference between the tax 49 imposed pursuant to paragraph a of this subdivision and the tax imposed 50 pursuant to the provisions of subdivision one of this section less one- 51 half of such difference in recognition of purses that were required to 52 be paid, plus an additional amount equal to ten percent of such tax in 53 the event of a willful failure to comply with the provisions of subpara- 54 graph (ii) of paragraph b of this subdivision, and such corporation 55 shall pay the tax so computed to the commissioner of taxation and 56 finance on or before March fifteenth of the following year. Notwith- 
 S. 9009 57 A. 10009 1 standing the provisions of this subdivision, in the event that upon 2 appeal from the determination of the commission that the certification 3 provided in paragraph b of this subdivision will not be made, it is 4 finally determined that the commission erred in failing to so certify 5 and that any moneys received by the commissioner of taxation and finance 6 under paragraph c of this subdivision were paid in error, the same shall 7 be refunded at the rate of interest of six percent per annum. Payment of 8 such balance of tax due, or the anticipation of such payment, shall not 9 affect the determination of purses in the year in which such tax arises 10 or in the year in which such payment is made nor shall such payment in 11 any other manner be considered in any statutory or contractual calcu- 12 lation of purse obligations. 13 e. Written notice of the certification of the commission pursuant to 14 the provisions of paragraph b of this subdivision shall be given by the 15 commission to the applicable corporation by the dates therein specified. 16 In like manner, written notice that such certification will not be made 17 shall be given by the commission to the commissioner of taxation and 18 finance and the applicable corporation by such dates]. 19 4. The payment of the state tax imposed by this section shall be made 20 to the commissioner of taxation and finance on the last business day of 21 each month and shall cover taxes due for the period from the sixteenth 22 day of the preceding month through the fifteenth day of the current 23 month provided, however, that such payments required to be made on March 24 thirty-first shall include all taxes due and accruing through the last 25 full week of racing in March of the current year or as otherwise deter- 26 mined by the commissioner of taxation and finance, and shall be accompa- 27 nied by a report under oath, showing the total of all such contrib- 28 utions, together with such other information as the commissioner of 29 taxation and finance may require. A penalty of five [per centum] percent 30 and interest at the rate of one [per centum] percent per month from the 31 date the report is required to be filed to the date of payment of the 32 tax shall be payable in case any tax imposed by this section is not paid 33 when due. If the commissioner of taxation and finance determines that 34 any moneys received under this subdivision were paid in error, the 35 commissioner of taxation and finance may cause the same to be refunded 36 without interest out of any moneys collected thereunder, provided an 37 application therefor is filed with the commissioner of taxation and 38 finance within one year from the time the erroneous payment was made. 39 Such taxes, interest and penalties when collected, after the deduction 40 of refunds of taxes erroneously paid, shall be paid by the commissioner 41 of taxation and finance into the general fund of the state treasury. 42 5. No county, city, town, village or other political subdivision of 43 the state may impose, levy or collect a tax on admission fees or tickets 44 of admission, on wagers made by patrons, in the form of purchases of 45 pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on 46 breaks, on dividends or payments made to winning bettors, or on that 47 part of the pari-mutuel pools [or breaks] to be retained by racing 48 corporations under this section, except as otherwise provided in this 49 chapter. 50 § 3. Section 238 of the racing, pari-mutuel wagering and breeding law, 51 as amended by chapter 18 of the laws of 2008, subdivision 1 as amended 52 by chapter 243 of the laws of 2020, paragraph (a) of subdivision 1 as 53 amended by section 9 of subpart B of part FF of chapter 59 of the laws 54 of 2025, and paragraph c of subdivision 2 as amended by chapter 367 of 55 the laws of 2021, is amended to read as follows: 
 S. 9009 58 A. 10009 1 § 238. Disposition of pari-mutuel pools of the franchised corporation; 2 percentage payable to state as a tax; authority of counties or certain 3 cities to impose a tax. 1. (a) The franchised corporation authorized 4 under this chapter to conduct pari-mutuel betting at a race meeting or 5 races run thereat shall distribute all sums deposited in any pari-mutuel 6 pool to the holders of winning tickets therein, provided such tickets 7 are presented for payment before April first of the year following the 8 year of their purchase, less an amount that shall be established and 9 retained by such franchised corporation of between twelve to seventeen 10 percent of the total deposits in pools resulting from on-track regular 11 bets, and fourteen to twenty-one percent of the total deposits in pools 12 resulting from on-track multiple bets and fifteen to twenty-five percent 13 of the total deposits in pools resulting from on-track exotic bets and 14 fifteen to thirty-six percent of the total deposits in pools resulting 15 from on-track super exotic bets[, plus the breaks]. The retention rate 16 to be established is subject to the prior approval of the commission. 17 Such rate may not be changed more than once per calendar quarter to be 18 effective on the first day of the calendar quarter. "Exotic bets" and 19 "multiple bets" shall have the meanings set forth in section five 20 hundred nineteen of this chapter. "Super exotic bets" shall have the 21 meaning set forth in section three hundred one of this chapter. For 22 purposes of this section, a "pick six bet" shall mean a single bet or 23 wager on the outcomes of six races. [The breaks are hereby defined as 24 the odd cents over any multiple of five for payoffs greater than one 25 dollar five cents but less than five dollars, over any multiple of ten 26 for payoffs greater than five dollars but less than twenty-five dollars, 27 over any multiple of twenty-five for payoffs greater than twenty-five 28 dollars but less than two hundred fifty dollars, or over any multiple of 29 fifty for payoffs over two hundred fifty dollars.] Out of the amount so 30 retained there shall be paid by such franchised corporation to the 31 commissioner of taxation and finance, as a reasonable tax by the state 32 for the privilege of conducting pari-mutuel betting on the races run at 33 the race meetings held by such franchised corporation, which tax is 34 hereby levied, in the [following percentages of the total pool for regu- 35 lar and multiple bets five percent of regular bets and four percent of 36 multiple bets plus twenty percent of the breaks; for exotic wagers seven 37 and one-half percent plus twenty percent of the breaks, and for super 38 exotic bets seven and one-half percent plus fifty percent of the breaks. 39 For the period April first, two thousand one through December thirty- 40 first, two thousand twenty-six, such tax on all wagers shall be one and 41 six-tenths percent, plus, in each such period, twenty percent of the 42 breaks] applicable percentage set forth in subdivision one of section 43 one hundred thirty-six of this chapter. Payment to the New York state 44 thoroughbred breeding and development fund by such franchised corpo- 45 ration shall be one-half of one percent of total daily on-track pari-mu- 46 tuel pools resulting from regular, multiple and exotic bets and three 47 percent of super exotic bets and for the period April first, two thou- 48 sand one through December thirty-first, two thousand twenty-six, such 49 payment shall be seven-tenths of one percent of regular, multiple and 50 exotic pools. 51 (b) An amount equal to fifty percent of any compensation received by a 52 franchised corporation from simulcasting or from wagering conducted 53 outside the United States or outside New York state and within the 54 United States shall be distributed to purses, except with respect to 55 such compensation received from Connecticut which shall be computed as a 56 percentage of wagering handle in a manner approved by the commission. 
 S. 9009 59 A. 10009 1 (c) An amount equal to fifty percent of any compensation received by 2 the franchised corporation from simulcasting or from wagering conducted 3 outside the United States shall be distributed to purses. 4 (d) (i) [The pari-mutuel tax rate authorized by paragraph (a) of this 5 subdivision shall be effective so long as a franchised corporation noti- 6 fies the commission by August fifteenth of each year that such pari-mu- 7 tuel tax rate is effective of its intent to] The franchised corporation 8 shall conduct a race meeting at Aqueduct racetrack during the months of 9 December, January, February, March and April. For purposes of this para- 10 graph such race meeting shall consist of not less than ninety-five days 11 of racing unless otherwise agreed to in writing by the New York 12 Thoroughbred Breeders Inc., the New York thoroughbred horsemen's associ- 13 ation (or such other entity as is certified and approved pursuant to 14 section two hundred twenty-eight of this article) and approved by the 15 commission. Not later than May first of each year [that such pari-mutuel 16 tax rate is effective], the commission shall determine whether a race 17 meeting at Aqueduct racetrack consisted of the number of days as 18 required by this [paragraph] subparagraph. In determining the number of 19 race days, cancellation of a race day because of an act of God that the 20 commission approves or because of weather conditions that are unsafe or 21 hazardous that the commission approves shall not be construed as a fail- 22 ure to conduct a race day. Additionally, cancellation of a race day 23 because of circumstances beyond the control of such franchised corpo- 24 ration for which the commission gives approval shall not be construed as 25 a failure to conduct a race day. [If the commission determines that the 26 number of days of racing as required by this paragraph have not occurred 27 then the pari-mutuel tax rate in paragraph (a) of this subdivision shall 28 revert to the pari-mutuel tax rates in effect prior to January first, 29 nineteen hundred ninety-five.] 30 (ii) Such franchised corporation shall pay to the commission as a 31 regulatory fee, which fee is hereby levied, six-tenths of one percent of 32 the total daily on-track pari-mutuel pools of such franchised corpo- 33 ration. 34 2. a. Subject to the provisions of this section the payment of such 35 state tax shall be made to the commissioner of taxation and finance on 36 the last business day of each month and shall cover taxes due for the 37 period from the sixteenth day of the preceding month through the 38 fifteenth day of the current month provided, however, that such payments 39 required to be made on March thirty-first shall include all taxes due 40 and accruing through the last full week of racing in March of the 41 current year or as otherwise determined by the commissioner, and shall 42 be accompanied by a report under oath, showing such information as the 43 commissioner may require. A penalty of five [per centum] percent and 44 interest at the rate of one [per centum] percent per month from the date 45 the report is required to be filed to the date of the payment of the tax 46 shall be payable in case any tax imposed by this section is not paid 47 when due. If the commissioner determines that any moneys received by the 48 commissioner under this section were paid in error, the commissioner may 49 cause the same to be refunded without interest out of any moneys 50 collected thereunder, provided an application therefor is filed with the 51 commissioner within one year from the time the erroneous payment was 52 made. Such taxes, interest and penalties when collected, after the 53 deduction of refunds of taxes erroneously paid, shall be paid by the 54 commissioner into the general fund of the state treasury. 
 S. 9009 60 A. 10009 1 b. The balance of the retained percentage of such pool [and of the 2 breaks] shall be held by such franchised corporation for its corporate 3 purposes, except as provided in paragraph c of this subdivision. 4 c. An amount equal to five and ninety-four hundredths percent of the 5 total pools resulting from on-track regular bets and an amount equal to 6 five and ninety-four hundredths percent of the total pools resulting 7 from on-track multiple and exotic bets, and twelve percent of the total 8 pools resulting from super exotic bets shall be used exclusively for 9 purses (including stakes, premiums and prizes) awarded in races 10 conducted by such franchised corporation. Any portion of such percent 11 not so used during any year shall be so used during the following year[, 12 failing which such portion shall be payable to the commissioner as addi- 13 tional tax. Such additional tax shall be payable on or before April 14 first in the year following the year in which such portion is not so 15 used and the provisions of paragraph a of this subdivision shall be 16 applicable thereto except as to the time of payment