S 10609

                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
                                   10609
                             I N  S E N A T E
                               May 29, 2026
                                ___________
 Introduced  by  Sen. BOTTCHER -- (at request of the NYC Finance) -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Investigations and Government Operations
 AN  ACT to amend the tax law, the administrative code of the city of New
   York, chapter 877 of the laws of 1975, chapter 884 of the laws of 1975
   and chapter 882 of the laws of 1977, relating  to  the  imposition  of
   certain  taxes  in the city of New York, in relation to postponing the
   expiration of certain tax rates and taxes in the city of New York
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
   Section 1. Paragraph 3 of subdivision (a) of section 1212-a of the tax
 law,  as  amended by chapter 345 of the laws of 2023, is amended to read
 as follows:
   (3) a tax, at the same uniform rate, but at a rate not to exceed  four
 and  one-half per centum, in multiples of one-half of one per centum, on
 the receipts from every sale of any or all of the following services  in
 whole or in part: credit rating, credit reporting, credit adjustment and
 collection  services,  including,  but  not  limited  to, those services
 provided by mercantile and consumer credit rating or  reporting  bureaus
 or  agencies  and  credit  adjustment or collection bureaus or agencies,
 whether rendered in written or oral form or in any other manner,  except
 to the extent otherwise taxable under article twenty-eight of this chap-
 ter;  notwithstanding  the  foregoing,  collection  services  shall  not
 include those services performed by a law office or a law and collection
 office, the maintenance or conduct of which constitutes the practice  of
 law,  if  the  services are performed by an attorney at law who has been
 duly licensed and admitted to practice law in this state. The local  law
 imposing  the  taxes authorized by this paragraph may provide for exclu-
 sions and exemptions in addition to those provided  for  in  such  para-
 graph.  Provided,  however,  that the tax hereby authorized shall not be
 imposed after November thirtieth, two thousand [twenty-six] TWENTY-NINE.
   § 2. Subsection (a) of section 1301 of the  tax  law,  as  amended  by
 chapter 345 of the laws of 2023, is amended to read as follows:
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16029-01-6
 S. 10609                            2
   (a)  Notwithstanding  any  other provision of law to the contrary, any
 city in this state having a population of one million or  more  inhabit-
 ants,  acting  through  its local legislative body, is hereby authorized
 and empowered to adopt and amend local laws imposing in any  such  city,
 for taxable years beginning after nineteen hundred seventy-five:
   (1)  a  tax  on  the personal income of residents of such city, at the
 rates provided for under subsection (a) of section thirteen hundred four
 of this article for taxable years beginning before two  thousand  [twen-
 ty-seven]  THIRTY, and at the rates provided for under subsection (b) of
 section thirteen hundred four of this article for taxable  years  begin-
 ning  after  two  thousand  [twenty-six] TWENTY-NINE, provided, however,
 that if, for any taxable year beginning after two thousand  [twenty-six]
 TWENTY-NINE,  the  rates  set  forth in such subsection (b) are rendered
 inapplicable and the rates set forth in such subsection (a) are rendered
 applicable, then the tax for such taxable year shall  be  at  the  rates
 provided  under  subparagraphs  (A)  of paragraphs one, two and three of
 such subsection (a),
   (2) for taxable years beginning after nineteen hundred seventy-six,  a
 separate tax on the ordinary income portion of lump sum distributions of
 such  residents,  at  the  rates  provided  for herein, such taxes to be
 administered, collected and distributed by the commissioner as  provided
 for in this article.
   §  3.  Subsection  (b)  of  section 1304 of the tax law, as amended by
 chapter 345 of the laws of 2023, is amended to read as follows:
   (b) A tax other than the city separate  tax  on  the  ordinary  income
 portion  of  lump sum distributions imposed pursuant to the authority of
 section thirteen hundred one of this  article  shall  be  determined  as
 follows:
   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with [his or her] SUCH INDIVIDUAL'S spouse
 under subsection (b) of section thirteen hundred six of this article and
 on the city taxable income of every city resident surviving spouse shall
 be determined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 If the city taxable income is:         The tax is:
 Not over $21,600                       1.18% of the city taxable income
 Over $21,600 but not                   $255 plus 1.435% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $591 plus 1.455% of excess
 over $90,000                             over $45,000
 Over $90,000                           $1,245 plus 1.48% of excess
                                          over $90,000
   (2)  Resident heads of households. The tax under this section for each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 S. 10609                            3
 If the city taxable income is:         The tax is:
 Not over $14,400                       1.18% of the city taxable income
 Over $14,400 but not                   $170 plus 1.435% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $394 plus 1.455% of excess
 over $60,000                             over $30,000
 Over $60,000                           $830 plus 1.48% of excess
                                          over $60,000
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single return jointly with [his or her] SUCH INDIVIDUAL'S
 spouse under subsection (b) of section  thirteen  hundred  six  of  this
 article  or a city resident head of household or a city resident surviv-
 ing spouse, and on the city taxable income of every city resident estate
 and trust shall be determined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 If the city taxable income is:         The tax is:
 Not over $12,000                       1.18% of the city taxable income
 Over $12,000 but not                   $142 plus 1.435% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $328 plus 1.455% of excess
 over $50,000                             over $25,000
 Over $50,000                           $692 plus 1.48% of excess
                                          over $50,000
   §  4.  Subsection  (a) of section 1304-B of the tax law, as amended by
 chapter 345 of the laws of 2023, is amended to read as follows:
   (a) (1) In addition to any other taxes authorized by this article, any
 city imposing such taxes is hereby authorized and empowered to adopt and
 amend local laws imposing in any such city for each taxable year  begin-
 ning  after nineteen hundred ninety but before two thousand [twenty-sev-
 en] THIRTY, an additional tax on the city taxable income of  every  city
 resident individual, estate and trust, to be calculated for each taxable
 year  as  follows:  (i)  for  each taxable year beginning after nineteen
 hundred ninety but before nineteen hundred ninety-nine, at the  rate  of
 fourteen  percent  of  the  sum  of the taxes for each such taxable year
 determined pursuant to section thirteen hundred four and  section  thir-
 teen  hundred  four-A  of  this  article; and (ii) for each taxable year
 beginning after nineteen hundred ninety-eight, at the rate  of  fourteen
 percent  of  the  tax  for such taxable year determined pursuant to such
 section thirteen hundred four.
   (2) Notwithstanding paragraph one of this subsection, for each taxable
 year beginning after nineteen hundred ninety-nine but before  two  thou-
 sand [twenty-seven] THIRTY, any city imposing such additional tax may by
 local  law  impose such tax at a rate that is less than fourteen percent
 and may impose such tax at more than one rate depending upon the  filing
 status  and city taxable income of such city resident individual, estate
 or trust.
   (3) A local law enacted pursuant to paragraph two of  this  subsection
 shall be applicable with respect to any taxable year only if it has been
 enacted on or before July thirty-first of such year. A certified copy of
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 such  local  law shall be mailed by registered mail to the department at
 its office in Albany within fifteen days of its enactment. However,  the
 department  may  allow  additional  time  for  such certified copy to be
 mailed  if  it  deems such action to be consistent with its duties under
 this article.
   § 5. Paragraph E of subdivision 1 of section 11-604 of the administra-
 tive code of the city of New York, as amended by chapter 345 of the laws
 of 2023, is amended to read as follows:
   E. For taxable years beginning on or  after  January  first,  nineteen
 hundred  seventy-eight  but  before January first, two thousand [twenty-
 seven] THIRTY, the tax imposed by subdivision one of section  11-603  of
 this subchapter shall be, in the case of each taxpayer:
   (a) whichever of the following amounts is the greatest:
   (1)  an  amount  computed, for taxable years beginning before nineteen
 hundred eighty-seven, at the rate of nine per centum,  and  for  taxable
 years  beginning after nineteen hundred eighty-six, at the rate of eight
 and eighty-five one-hundredths per centum, of its entire net  income  or
 the portion of such entire net income allocated within the city as here-
 inafter provided, subject to any modification required by paragraphs (d)
 and (e) of subdivision three of this section,
   (2)  an  amount  computed at one and one-half mills for each dollar of
 its total business and investment capital, or the portion thereof  allo-
 cated  within the city, as hereinafter provided, except that in the case
 of a cooperative housing corporation as defined in the internal  revenue
 code, the applicable rate shall be four-tenths of one mill,
   (3)  an  amount  computed, for taxable years beginning before nineteen
 hundred eighty-seven, at the rate of nine per centum,  and  for  taxable
 years  beginning after nineteen hundred eighty-six, at the rate of eight
 and eighty-five one-hundredths per centum, on thirty per centum  of  the
 taxpayer's  entire  net income plus salaries and other compensation paid
 to the taxpayer's elected or appointed officers and to every stockholder
 owning in excess of five per centum of its issued  capital  stock  minus
 fifteen  thousand dollars (subject to proration as hereinafter provided)
 and any net loss for the reported year, or on the portion  of  any  such
 sum allocated within the city as hereinafter provided for the allocation
 of entire net income, subject to any modification required by paragraphs
 (d)  and  (e)  of  subdivision three of this section, provided, however,
 that for taxable years  beginning  on  or  after  July  first,  nineteen
 hundred  ninety-six,  the  provisions of paragraph H of this subdivision
 shall apply for purposes of the computation under this clause, or
   (4) for taxable years ending on or  before  June  thirtieth,  nineteen
 hundred  eighty-nine, one hundred twenty-five dollars, for taxable years
 ending after June thirtieth, nineteen hundred eighty-nine and  beginning
 before  two  thousand nine, three hundred dollars, and for taxable years
 beginning after two thousand eight:
     If New York city receipts are:          Fixed dollar minimum tax is:
   Not more than $100,000                              $25
   More than $100,000 but not over $250,000            $75
   More than $250,000 but not over $500,000            $175
   More than $500,000 but not over $1,000,000          $500
   More than $1,000,000 but not over $5,000,000        $1,500
   More than $5,000,000 but not over $25,000,000       $3,500
   Over $25,000,000                                    $5,000
 For purposes of this clause, New York city  receipts  are  the  receipts
 computed  in accordance with subparagraph two of paragraph (a) of subdi-
 vision three of this section for the taxable  year.  For  taxable  years
 S. 10609                            5
 beginning  after  two  thousand  eight, if the taxable year is less than
 twelve months, the amount prescribed by this clause shall be reduced  by
 twenty-five  percent  if the period for which the taxpayer is subject to
 tax  is  more than six months but not more than nine months and by fifty
 percent if the period for which the taxpayer is subject to  tax  is  not
 more  than  six  months. If the taxable year is less than twelve months,
 the amount of New York city receipts for  purposes  of  this  clause  is
 determined  by  dividing the amount of the receipts for the taxable year
 by the number of months in the taxable year and multiplying  the  result
 by twelve, plus;
   (b)  an  amount  computed  at the rate of three-quarters of a mill for
 each dollar of the portion of its subsidiary  capital  allocated  within
 the city as hereinafter provided.
   In  the  case  of a taxpayer which is not subject to tax for an entire
 year, the exemption allowed in clause three of subparagraph (a) of  this
 paragraph  shall  be  prorated according to the period such taxpayer was
 subject to tax. Provided, however, that this paragraph shall  not  apply
 to  taxable  years  beginning  after December thirty-first, two thousand
 [twenty-six] TWENTY-NINE.   For  the  taxable  years  specified  in  the
 preceding sentence, the tax imposed by subdivision one of section 11-603
 of this subchapter shall be, in the case of each taxpayer, determined as
 specified  in  paragraph  A of this subdivision, provided, however, that
 the provisions of paragraphs G and H of this subdivision shall apply for
 purposes of the computation under clause three of  subparagraph  (a)  of
 such paragraph A.
   §  6.  The  opening paragraph of section 11-1701 of the administrative
 code, as amended by chapter 345 of the laws of 2023, is amended to  read
 as follows:
   A tax is hereby imposed on the city taxable income of every city resi-
 dent  individual,  estate  and  trust  determined in accordance with the
 rates set forth in subdivision (a) of this  section  for  taxable  years
 beginning  before  two thousand [twenty-seven] THIRTY, and in accordance
 with the rates set forth in subdivision (b) of this section for  taxable
 years  beginning  after two thousand [twenty-six] TWENTY-NINE. Provided,
 however, that if, for any taxable  year  beginning  after  two  thousand
 [twenty-six]  TWENTY-NINE,  the  rates set forth in such subdivision (b)
 are rendered inapplicable and the rates set forth  in  such  subdivision
 (a) are rendered applicable, then the tax for such taxable year shall be
 at  the rates provided under subparagraph (A) of paragraphs one, two and
 three of such subdivision (a).
   § 7. Subdivision (b) of section 11-1701 of the administrative code  of
 the  city of New York, as amended by chapter 345 of the laws of 2023, is
 amended to read as follows:
   (b) Rate of tax. A tax imposed  pursuant  to  this  section  shall  be
 determined as follows:
   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with [his or her] SUCH INDIVIDUAL'S spouse
 under subdivision (b) of section 11-1751 of this title and on  the  city
 taxable  income  of every city resident surviving spouse shall be deter-
 mined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 S. 10609                            6
 If the city taxable income is:         The tax is:
 Not over $21,600                       1.18% of the city taxable income
 Over $21,600 but not                   $255 plus 1.435% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $591 plus 1.455% of excess
 over $90,000                             over $45,000
 Over $90,000                           $1,245 plus 1.48% of excess
                                          over $90,000
   (2)  Resident heads of households. The tax under this section for each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 If the city taxable income is:         The tax is:
 Not over $14,400                       1.18% of the city taxable income
 Over $14,400 but not                   $170 plus 1.435% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $394 plus 1.455% of excess
 over $60,000                             over $30,000
 Over $60,000                           $830 plus 1.48% of excess
                                          over $60,000
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a married  individual  who  makes  a
 single  return  jointly with [his or her] SUCH INDIVIDUAL'S spouse under
 subdivision (b) of section 11-1751 of this title or a city resident head
 of a household or a city resident surviving  spouse,  and  on  the  city
 taxable  income  of every city resident estate and trust shall be deter-
 mined in accordance with the following table:
   For taxable years beginning after two  thousand  [twenty-six]  TWENTY-
 NINE:
 If the city taxable income is:         The tax is:
 Not over $12,000                       1.18% of the city taxable income
 Over $12,000 but not                   $142 plus 1.435% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $328 plus 1.455% of excess
 over $50,000                             over $25,000
 Over $50,000                           $692 plus 1.48% of excess
                                          over $50,000
   § 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin-
 istrative code of the city of New York, as amended by chapter 345 of the
 laws of 2023, is amended to read as follows:
   (1)  In  addition to any other taxes imposed by this chapter, there is
 hereby imposed for each taxable year beginning  after  nineteen  hundred
 ninety  but before two thousand [twenty-seven] THIRTY, an additional tax
 on the city taxable income of every city resident individual, estate and
 trust, to be calculated for each taxable year as follows: (i)  for  each
 taxable year beginning after nineteen hundred ninety but before nineteen
 hundred  ninety-nine,  at the rate of fourteen percent of the sum of the
 taxes for each such taxable year determined pursuant to section  11-1701
 and  section  11-1704 of this subchapter; and (ii) for each taxable year
 S. 10609                            7
 beginning after nineteen hundred ninety-eight, at the rate  of  fourteen
 percent  of  the  tax  for such taxable year determined pursuant to such
 section 11-1701.
   §  9. Subdivision (a) of section 11-2002 of the administrative code of
 the city of New York, as amended by chapter 345 of the laws of 2023,  is
 amended to read as follows:
   (a)  There  are  hereby imposed and there shall be paid sales taxes at
 the rate of four and one-half percent on receipts from every sale of the
 services of beauty, barbering, hair restoring,  manicuring,  pedicuring,
 electrolysis,  massage  services and similar services, and every sale of
 services by weight control salons, health  salons,  gymnasiums,  turkish
 and  sauna  bath and similar establishments and every charge for the use
 of such facilities, whether or not any  tangible  personal  property  is
 transferred in conjunction therewith; but excluding services rendered by
 a  physician,  osteopath, dentist, nurse, physiotherapist, chiropractor,
 podiatrist, optometrist, ophthalmic dispenser  or  a  person  performing
 similar  services  licensed  under  title eight of the education law, as
 amended, and excluding such services when performed on  pets  and  other
 animals,  as  authorized  by  subdivision  (a) of section twelve hundred
 twelve-A of the tax law. Provided, however, that the tax hereby  imposed
 shall not be imposed after November thirtieth, two thousand [twenty-six]
 TWENTY-NINE.
   §  10.  The opening paragraph of subdivision (a) of section 11-2040 of
 the administrative code of the city of New York, as amended  by  chapter
 345 of the laws of 2023, is amended to read as follows:
   There  is hereby imposed within the city and there shall be paid a tax
 at the rate of four and one-half percent upon the  receipts  from  every
 sale,  except  for resale, of the following services, provided, however,
 that the tax hereby imposed shall not be imposed after November  thirti-
 eth,  two  thousand  [twenty-six] TWENTY-NINE, on receipts from sales of
 the services specified in paragraph one of this subdivision:
   § 11. Section 4 of chapter 877 of the laws of 1975,  relating  to  the
 imposition of certain taxes in the city of New York, as amended by chap-
 ter 345 of the laws of 2023, is amended to read as follows:
   §  4.  This  act  shall  expire on December 31, [2026] 2029, provided,
 however, that it is hereby declared to be the express intention  of  the
 legislature  that  the provisions of sections two and three of this act,
 except with respect to the enforcement and collection of any tax arising
 thereunder, shall remain in full force and effect only until the date of
 such expiration, at which time the provisions of law amended by this act
 shall be continued in full force and effect as they existed prior to the
 enactment of this act.
   § 12. Section 6 of chapter 884 of the laws of 1975,  relating  to  the
 imposition of certain taxes in the city of New York, as amended by chap-
 ter 345 of the laws of 2023, is amended to read as follows:
   §  6.  This  act  shall  expire on December 31, [2026] 2029, provided,
 however, that it is hereby declared to be the express intention  of  the
 legislature  that the provisions of sections two, three and four of this
 act, except with respect to the enforcement and collection  of  any  tax
 arising thereunder, shall remain in full force and effect only until the
 date  of such expiration, at which time the provisions of law amended by
 this act shall be continued in full force and  effect  as  they  existed
 prior to the enactment of this act.
   §  13.  Section  2 of chapter 882 of the laws of 1977, relating to the
 imposition of certain taxes in the city of New York, as amended by chap-
 ter 345 of the laws of 2023, is amended to read as follows:
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   § 2. This act shall expire on  December  31,  [2026]  2029,  provided,
 however,  that  it is hereby declared to be the express intention of the
 legislature that the provisions of section one of this act, except  with
 respect to the enforcement and collection of any tax arising thereunder,
 shall  remain in full force and effect only until the date of such expi-
 ration, at which time the provisions of law amended by this act shall be
 continued in full force and effect as they existed prior to  the  enact-
 ment of this act.
   § 14. This act shall take effect immediately.