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Form a Business

Utility Tax

NYC Admin. Code tit. 11, ch. 11
in effect

NYC Admin. Code § 11-1101 Definitions.

§ 11-1101 Definitions. When used in this chapter the following terms shall mean or include: 1. "Person." Includes any individual, partnership, society, association, joint-stock company, corporation, estate, receiver, lessee, trustee, assignee, assignee of rents, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals. 2. "Comptroller." The comptroller of the city. 3. "Commissioner of finance." The commissioner of finance of the city. 4. "Gross income." All receipts received in or by reason of any sale made including receipts from the sale of residuals and by-products (except sale of real property) or service rendered in the city, including cash, credits and property of any kind or nature (whether or not such sale is made or such service is rendered for profit) without any deduction therefrom on account of the cost of the property sold, the cost of material used, labor or services, delivery costs, any other costs whatsoever, interest or discount paid, or any other expense whatsoever; also profits from the sale of securities; also profits from the sale of real property growing out of the ownership or use of or interest in such property; also profit from the sale of personal property (other than property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable period for which a return is made); also receipts from interest, dividends and royalties without any deductions therefrom for any expense whatsoever incurred in connection with the receipt thereof, and also gains or profits from any source whatsoever; but shall not include gross income of railroads from the transportation of freight, gross income from the operation of hotels, multiple dwellings or office buildings by persons in the business of operating or leasing sleeping or parlor railroad cars or of operating railroads other than street surface, rapid transit, subway and elevated railroads, or interest or dividends received from a corporation by such persons or by persons subject to taxation under the provisions of section one hundred eighty-six-a of the tax law. Rents or rentals shall not be deemed to be gross receipts subject to tax, except rents or rentals derived from facilities used in the public service; provided, however, that in the case of persons in the business of operating or leasing sleeping or parlor railroad cars or of operating railroads other than street surface, rapid transit, subways and elevated railroads, such last-mentioned rents or rentals derived from other such utilities with respect to the operation of terminal facilities shall not be deemed to be gross income subject to tax except for the amount in excess of a user proportion of New York city real property and special franchise taxes and expenses of maintenance and operation. Notwithstanding anything to the contrary in this subdivision or any other provision of law, for taxable periods beginning on or after August first, two thousand two, gross income shall include eighty-four percent of charges for the provision of mobile telecommunications services where the place of primary use of the mobile telecommunications services is within the territorial limits of the city except to the extent that such inclusion would result in the taxation of charges for the provision of mobile telecommunications services that is prohibited by federal law. 5. "Gross operating income." Includes receipts received in or by reason of any sale made or service rendered, of the property and services specified in subdivision seven of this section in the city, including cash, credits and property of any kind or nature (whether or not such sale is made or such service is rendered for profit), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or other services, delivery costs or any other costs whatsoever, interest or discount paid or any other expenses whatsoever, provided however, that if a vendor of utility service purchases gas, electricity, steam, water or refrigeration or gas, electric, steam, water or refrigeration service in a transaction the receipts from which are not subject to the tax imposed under this chapter, the gross operating income derived by such vendor of utility service from the resale of such gas, electricity, steam, water or refrigeration or such gas, electric, steam, water or refrigeration service to its tenants as an incident to such vendor's activity of renting premises to tenants, shall, if subject to the tax imposed under this chapter on such vendor, be conclusively presumed to be equal to the amount of such vendor's cost (including any associated transportation cost) for the purchase of such gas, electricity, steam, water or refrigeration or gas, electric, steam, water or refrigeration service for resale by such vendor. Notwithstanding anything to the contrary in this subdivision or any other provision of law, for taxable periods beginning on or after August first, two thousand two, gross operating income shall include eighty-four percent of charges for the provision of mobile telecommunications services where the place of primary use of the mobile telecommunications services is within the territorial limits of the city except to the extent that such inclusion would result in the taxation of charges for the provision of mobile telecommunications services that is prohibited by federal law. 6. "Utility." Every person subject to the supervision of the department of public service and, for taxable periods beginning on or after August first, two thousand two, every person, whether or not supervised by the department of public service, eighty percent or more of the gross receipts of which consists of charges for the provision of mobile telecommunications services to customers. Notwithstanding anything to the contrary in any other provision of law, for purposes of this subdivision, the gross receipts of a person shall not include the gross receipts of any other related or unrelated person. 7. "Vendor of utility services." Every person not subject to the supervision of the department of public service, and not otherwise a utility as defined in subdivision six of this section, who furnishes or sells gas, electricity, steam, water or refrigeration, or furnishes or sells gas, electric, steam, water, refrigeration or telecommunications services, or who operates omnibuses (whether or not such operation is on the public streets); regardless of whether such furnishing, selling or operation constitutes the main activity of such person or is merely incidental thereto. 8. "Return." Includes any return filed or required to be filed as herein provided. 9. "Telecommunications services." Telephony or telegraphy, or telephone or telegraph service, including, but not limited to, any transmission of voice image, data, information and paging, through the use of wire, cable, fiber-optic, laser, microwave, radio wave, satellite or similar media or any combination thereof and shall include services that are ancillary to the provision of telephone service (such as, but not limited to, dial tone, basic service, directory information, call forwarding, caller-identification, call waiting and the like) and also include any equipment and services provided therewith; provided, however, that the definition of telecommunication services shall not apply to separately stated charges for any service that alters the substantive content of the message received by the recipient from that sent; and that such services shall not include (i) cable television services that consist of the transmitting to subscribers of programs broadcast by one or more television or radio stations or any other programs originated by any person by means of wire, cable, microwave or any other means or (ii) air safety and navigation services where such telecommunication service is provided by an organization, at least ninety percent of which (if a corporation, ninety percent of the voting stock of which) is owned, directly or indirectly, by air carriers, and which organization's principal function is to fulfill the requirements of (a) the federal aviation administration (or the successor thereto) or (b) the international civil aviation organization (or the successor thereto), relating to the existence of a communication system between aircraft and dispatcher, aircraft and air traffic control or ground station and ground station (or any combination of the foregoing) for the purposes of air safety and navigation. 10. "Limited fare omnibus company." An omnibus company whose principal source of revenue is derived from the daily transportation of passengers wholly within the city on a route or zoned portion thereof pursuant to a franchise agreement with, or consent of, the city, at the following fares: for the period from August first, nineteen hundred sixty-five until and including December thirty-first, nineteen hundred seventy-five, at a fare not in excess of thirty-five cents per passenger; for the period from January first, nineteen hundred seventy-six until and including June twenty-seventh, nineteen hundred eighty, at a fare not in excess of fifty cents per passenger; for the period from June twenty-eighth, nineteen hundred eighty until and including August thirty-first, nineteen hundred eighty, at a fare not in excess of sixty cents per passenger; for the period from September first, nineteen hundred eighty and thereafter, at a fare not in excess of the regular rate of fare charged per passenger for comparable service both local and express on regular rapid transit and surface lines operated by the New York city transit authority. For purposes of this subdivision, the term "regular rate of fare" shall be exclusive of fares for special train or bus service, or additional charges for bridge or tunnel tolls or transfer privileges. 11. "Commuter service." Mass transportation service (exclusive of limited stop service to airports, racetracks or any place where entertainment, amusement or sport activities are held or where recreational facilities are supplied) provided pursuant to a franchise with, or consent of, the city of New York. 12. "Tax appeals tribunal." The tax appeals tribunal established by section one hundred sixty-eight of the charter. 13. "Base Year." Means the calendar year ending immediately prior to the calendar year containing the taxable period or periods for which a return is required to be filed pursuant to the provisions of section 11-1104 of this chapter. 14. "Taxable Period." Means the period for which a return is required to be filed pursuant to the provisions of this chapter and shall be either (i) the semiannual period beginning the first day of January or the first day of July of the calendar year, or (ii) the calendar month. 15. "Premises." Means for purposes of section 11-1102 of this chapter, any real property or part thereof, and any structure thereon or space therein. 16. "Tenant." Means a person paying, or required to pay, rent for premises as a lessee, sublessee, licensee or concessionaire. 17. "Mobile telecommunications services." Telecommunications services that are commercial mobile radio services. 18. "Commercial mobile radio services." Commercial mobile radio services as defined in 47 CFR § 20.3 as in effect on June first, nineteen hundred ninety-nine. 19. "Charges for mobile telecommunications services." Any charge for, or associated with, the provision of mobile telecommunications services and any charge for, or associated with, a service provided as an adjunct to mobile telecommunications services that is billed to the customer by or for the customer's home service provider regardless of whether individual transmissions originate or terminate within the licensed service area of the home service provider. 20. "Place of primary use." The street address representative of where the customer's use of the mobile telecommunications services primarily occurs, which must be (i) the residential street address or the primary business street address of the customer; and (ii) within the licensed service area of the home service provider. 21. "Licensed service area." The geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio services to the customer. 22. "Home service provider." The facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services. 23. "Customer." The person or entity that contracts with the home service provider for mobile telecommunications services. If the end user of mobile telecommunications services is not the contracting party, then, solely for purposes of subdivision twenty of this section, the term "customer" shall mean the end user of the mobile telecommunications services. The term customer does not include a reseller of mobile telecommunications services, or a serving carrier under an arrangement to serve the customer outside the home service provider's licensed service area. 24. "Reseller." A provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service. The term reseller does not include a serving carrier with which a home service provider arranges for the services to its customers outside the home service provider's licensed service area. 25.* "Serving carrier." A facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider's or reseller's licensed service area. * Editor's note: there are two divisions designated 25 in this section. 25.* "Cogeneration facility" means (i) a facility that was in operation before January first, two thousand four and that produces electric energy and steam or other forms of useful energy (such thermal energy) that are supplied to and used by tenants and/or occupants of a cooperative corporation for industrial, commercial, or residential heating or cooling purposes; or (ii) a cogeneration facility, as defined in clause (i) of this subparagraph, that has been replaced by any other facility used to generate electricity and steam or other forms of useful energy (such as thermal energy), when such electricity and steam or other forms of useful energy (such as thermal energy) are supplied to and used by tenants and/or occupants of a cooperative corporation. * Editor's note: there are two divisions designated 25 in this section. 26.* "Enhanced zip code." A United States postal zip code of nine or more digits. * Editor's note: there are two divisions designated 26 in this section. 26.* "Cooperative corporation" means a corporation organized under the laws of New York, at least some of the stockholders of which are entitled, by reason of the stockholders' ownership interest of stock in the corporation, to occupy for dwelling purposes an apartment in a building owned by the corporation pursuant to a lease or occupancy agreement with the corporation. * Editor's note: there are two divisions designated 26 in this section. 27. [Repealed.] Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1987/049.

NYC Admin. Code § 11-1102 Imposition of excise tax.

§ 11-1102 Imposition of excise tax. a. Notwithstanding any other provisions of law to the contrary, for the privilege of exercising its franchise or franchises, or of holding property, or of doing business in the city, on or after August first, nineteen hundred sixty-five, every utility shall pay to the commissioner of finance an excise tax which shall be equal to two per centum of its gross income until and including December thirty-first, nineteen hundred sixty-five, and shall be equal to two and thirty-five hundredths per centum thereafter, except that the rate as to persons engaged in the business of operating omnibuses with a carrying capacity of more than seven persons shall be one per centum until and including December thirty-first, nineteen hundred sixty-five, and one and seventeen hundredths per centum thereafter, and except that as to persons engaged in the business of operating or leasing sleeping and parlor railroad cars or of operating railroads other than street surface, rapid transit, subway and elevated railroads, the rate shall be three per centum until and including December thirty-first, nineteen hundred sixty-five, and three and fifty-two one hundredths per centum thereafter, and every vendor of utility services in the city shall pay to the commissioner of finance an excise tax which shall be equal to two per centum of its gross operating income until and including December thirty-first, nineteen hundred sixty-five, and shall be equal to two and thirty-five one hundredths per centum thereafter, except that as to persons engaged in the business of operating omnibuses with a carrying capacity of more than seven persons other than omnibuses used exclusively for the transportation of children to and from schools operated under contracts made pursuant to the provisions of the education law, and not subject to the jurisdiction of the department of public service, the rate shall be one per centum of its gross operating income until and including December thirty-first, nineteen hundred sixty-five, and one and seventeen hundredths per centum thereafter. Such tax shall be in addition to any and all other taxes, charges and fees imposed by any other provision of law and shall be paid at the time and in the manner hereinafter provided, but any person to the extent that it is subject to tax hereunder shall not be liable to any tax under any other of the local laws of the city enacted pursuant to chapter ninety-three of the laws of nineteen hundred sixty-five as amended, or article two-b of the general city law, with respect to its gross income or gross operating income hereunder taxed, as the case may be. b. So much of the gross income of a utility shall be excluded from the measure of the tax imposed by this chapter, as is derived from sales for resale to vendors of utility services validly subject to the tax imposed by this chapter, except to the extent that such gross income is derived from sales of gas, electricity, steam, water or refrigeration or sales or rendering of gas, electric, steam, water or refrigeration service to a vendor of utility services for resale to its tenants as an incident to such vendor's activity of renting premises to tenants. c. For the purpose of proper administration of this chapter and to prevent evasion of the tax hereby imposed, it shall be presumed that the gross income or gross operating income of any person taxable hereunder is taxable and is derived from business conducted wholly within the territorial limits of the city until the contrary is established, and the burden of proving that any part of its gross income or gross operating income is not so derived shall be upon such person. Notwithstanding anything to the contrary in the preceding sentence or in any provision of section twenty-b of the general city law or any other provision of law, for taxable periods beginning on or after August first, two thousand two, gross income and gross operating income derived from the provision of mobile telecommunications services shall be deemed to be derived from business conducted wholly within the territorial limits of the city where the place of primary use of the mobile telecommunications services is within the territorial limits of the city. d. The tax imposed by this chapter shall be inapplicable to the gross income received by a limited fare omnibus company until and including August thirty-first, nineteen hundred eighty. Thereafter, such tax shall be applicable to such gross income received as follows: (1) for gross income received from commuter service from September first, nineteen hundred eighty until and including December thirty-first, nineteen hundred eighty-three, the rate of tax shall be one hundredth of one per centum; (2) for gross income received from commuter service from January first, nineteen hundred eighty-four and thereafter, the rate of tax shall be one tenth of one per centum; and (3) for gross income received from all other sources, the rate of tax shall be as provided in subdivision a of this section. e. The gross operating income of a vendor of utility services derived from sales to its tenants of gas, electricity, steam, water, or refrigeration or sales or rendering to its tenants of gas, electric, steam, water or refrigeration service, as an incident to such vendor's activity of renting premises to tenants, shall be excluded from the measure of the tax imposed by this chapter, but, with regard to sales to its tenants of gas, electricity, or steam or sales or rendering to its tenants of gas, electric or steam service, only to the extent that the tax imposed by this chapter has been validly paid or accrued with respect to a prior sale of such gas, electricity or steam or sale or rendering of gas, electric or steam service. f. (1) Notwithstanding anything contained in this chapter to the contrary, for taxable periods beginning on or after August first, two thousand two, if a partnership is subject to the tax imposed by this chapter as a utility or as a vendor of utility services, no person who is a partner in such a partnership shall be subject to the tax imposed by this chapter on such partner's distributive share of the gross income or gross operating income of such partnership. (2) If a person is a partner in a partnership subject to the tax imposed by this chapter and that person is separately subject to the supervision of the state department of public service or is a utility or a vendor of utility services based on its activities exclusive of any activities of such partnership, for taxable periods beginning on or after August first, two thousand two, such person shall be subject to the tax imposed by this chapter only on its separate gross income or separate gross operating income, which shall not include such person's distributive share of the gross income or gross operating income of such partnership. (3) For purposes of this subdivision, the term "partner" shall include a person who receives a distributive share of the gross income or gross operating income, directly or indirectly through one or more tiers of partnerships, of a partnership subject to the tax imposed by this chapter. (g) Notwithstanding anything else contained in this chapter to the contrary, for the taxable periods beginning on or after January 1, 2006, if a cooperative corporation containing at least fifteen hundred apartments furnishes or sells electricity, steam, refrigeration or water, or furnishes or sells electric, steam, refrigeration or water services that are (i) metered, (ii) generated or produced by a cogeneration facility owned or operated by such cooperative corporation, and (iii) such electricity, steam, refrigeration or water and/or electric, steam, refrigeration or water services are distributed to tenants and/or occupants of a cooperative corporation, then such cooperative corporation shall pay to the commissioner of finance an excise tax which shall be equal to zero per centum of its gross income or its gross operating income, as the case may be.

NYC Admin. Code § 11-1102.1 Deduction relating to certain sales to non-residential energy users. [Repealed] Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1987/049.

NYC Admin. Code § 11-1103 Records to be kept.

§ 11-1103 Records to be kept. Every person subject to tax hereunder shall keep records of its business and in such form as the commissioner of finance may by regulation require. Such records shall be offered for inspection and examination at any time upon demand by such commissioner or his or her duly authorized agent or employee and shall be preserved for a period of three years, except that the commissioner of finance may consent to their destruction within that period or may require that they be kept longer.

NYC Admin. Code § 11-1104 Returns; requirements as to.

§ 11-1104 Returns; requirements as to. a. Except as otherwise provided in subdivision e of this section with respect to taxable periods beginning after nineteen hundred ninety-eight, on or before the twenty-fifth day of September, nineteen hundred sixty-five, and on or before the twenty-fifth day of every month thereafter, every person subject to tax hereunder shall file a return with the commissioner of finance on a form to be prescribed by such commissioner. Such return shall state the gross income or gross operating income as the case may be for the preceding calendar month, and shall contain any other data, information or other matter which the commissioner of finance may require to be included therein. The commissioner of finance may require at any further time a supplemental return hereunder, which shall contain any data upon such matters as such commissioner may specify. Notwithstanding the foregoing and notwithstanding the provisions of subdivision e of this section, a vendor of utility services, all of whose gross operating income is excluded from the measure of the tax imposed by this chapter pursuant to subdivision e of section 11-1102 of this chapter during any taxable period, shall not be required to file a return for such taxable period, provided, however, that on or before the first day of September of each year, any such vendor of utility services who was not required to file a return for any taxable period during the period covered by the statement required to be filed by such date pursuant to subdivision a of section 11-208.1 of this title shall file an information return covering such period in such form and containing such information as the commissioner of finance may specify. b. The commissioner of finance may require amended returns to be filed within twenty days after notice and to contain the information specified in the notice. c. If a return required by this chapter is not filed or if a return when filed is incorrect or insufficient on its face, the commissioner of finance shall take the necessary steps to enforce the filing of such return or of a corrected return. d. Where the state tax commission changes or corrects a taxpayer's sales and compensating use tax liability with respect to the purchase or use of items for which a sales or compensating use tax credit against the tax imposed by this chapter was claimed, the taxpayer shall report such change or correction to the commissioner of finance within ninety days of the final determination of such change or correction, or as required by the commissioner of finance, and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended return or report with the state tax commission relating to the purchase or use of such items shall also file within ninety days thereafter a copy of such amended return or report with the commissioner of finance. e. With respect to taxable periods beginning after nineteen hundred ninety-eight, notwithstanding the provisions of subdivision a of this section, if the amount of tax imposed hereunder on any person in the base year does not exceed one hundred thousand dollars, the taxable period for which such person is required to file a return is the semiannual period described in paragraph i of subdivision fourteen of section 11-1101 of this chapter, and such person shall file a return for each semiannual period of the first calendar year beginning after the base year on or before the twenty-fifth day of the month following the end of each such taxable period. Such return shall be filed with the commissioner of finance on a form to be prescribed by such commissioner. Such return shall state the gross income or gross operating income as the case may be for the preceding taxable period and shall contain any other data, information or other matter which the commissioner of finance may require to be included therein. The commissioner of finance may require at any further time a supplemental return hereunder, which shall contain any data upon such matters as such commissioner may specify. For the purposes of this subdivision, if the amount of tax imposed hereunder on such person in the base year is for a period of less than one year, the amount of tax imposed on such person shall be annualized by multiplying the amount of tax imposed by a fraction, the denominator of which is the number of months or parts thereof during which the person was subject to the tax imposed hereunder and the numerator of which is twelve. Notwithstanding the foregoing provisions of this subdivision, a person that first becomes subject to the tax hereunder shall file a return for each month in the calendar year in which such person first becomes subject to such tax in accordance with subdivision a of this section.

NYC Admin. Code § 11-1105 Payment of tax; credit for certain sales and compensating use taxes.

§ 11-1105 Payment of tax; credit for certain sales and compensating use taxes. a. At the time of filing each return, as provided under section 11-1104 of this chapter, each person taxable hereunder shall pay to the commissioner of finance the taxes imposed by this chapter upon its gross income or gross operating income, as the case may be, for the taxable period covered by such return, less any credit to which such person may be entitled under subdivision b of this section. Such taxes shall be due and payable on the last day on which the return for such period is required to be filed, regardless of whether a return is filed or whether the return which is filed correctly indicates the amount of tax due. b. (1) A taxpayer shall be allowed a credit against the taxes imposed by this chapter for the amount of sales and compensating use taxes imposed by section eleven hundred seven of the tax law which became legally due on or after, and which were paid on or after, July first, nineteen hundred seventy-seven but within the taxable period for which a credit is claimed, with respect to the purchase or use by the taxpayer of machinery or equipment for use or consumption directly and predominantly in the production of steam for sale, by manufacturing, processing, generating, assembling, refining, mining or extracting, or telephone central office equipment or station apparatus or comparable telegraph equipment for use directly and predominantly in receiving at destination or initiating and switching telephone or telegraph communication, but not including parts with a useful life of one year or less or tools or supplies used in connection with such machinery, equipment or apparatus. (2) The amount of the credit provided in paragraph one of this subdivision shall be limited to the amount of such sales and compensating use taxes paid during the taxable period covered by the return under this chapter on which the credit is taken less the amount of any credit or refund of such sales and compensating use taxes during such taxable period. If such credit exceeds the amount of tax under this chapter payable for the taxable period in question, such excess amount shall be refunded or credited except in the case of a vendor of utility services who is entitled to a credit and/or refund for such sales and compensating use taxes under chapter five or six of this title. The credit allowed under this subdivision shall be deemed an erroneous payment of tax by the taxpayer to be credited or refunded in accordance with the provisions of section 11-1108 of this chapter, except as otherwise provided in the previous sentence. (3) Where the taxpayer receives a refund or credit of any tax imposed under section eleven hundred seven of the tax law for which the taxpayer has claimed a credit under the provisions of this subdivision in a prior taxable period, the amount of such refund or credit shall be added to the tax imposed by section 11-1102 of this chapter of the taxable period in which such refund or credit of tax under section eleven hundred seven of the tax law is received.

NYC Admin. Code § 11-1105.1 Credit for rebates and discounts of charges for energy.

§ 11-1105.1 Credit for rebates and discounts of charges for energy. A taxpayer shall be allowed a credit against the amount of taxes imposed by this chapter for the amount of special rebates and discounts made in accordance with the provisions of section 22-602 of this chapter and for the amount of special rebates and discounts made in accordance with the provisions of section twenty-five-bb of the general city law. Such credit shall be applied against the amount of tax otherwise required to be paid as provided in subdivision a of section 11-1105 of this chapter and shall be claimed for the taxable period immediately succeeding the taxable period in which such rebates or discounts are made.

NYC Admin. Code § 11-1105.2 Relocation and employment assistance program credit.

§ 11-1105.2 Relocation and employment assistance program credit. (a) A taxpayer that has obtained the certifications required by chapter six-B of title twenty-two of the code shall be allowed a credit against the tax imposed by this chapter, provided, however, that a taxpayer that is a vendor of utility services shall not be allowed the credit against the tax imposed by this chapter unless it elects as provided in subdivision (d) of section 22-622 of the code to take the credit against the tax imposed by this chapter. The amount of the credit shall be the amount determined by multiplying one thousand dollars or, in the case of an eligible business that has obtained pursuant to chapter six-B of such title twenty-two a certification of eligibility dated on or after July first, two thousand, for a relocation to eligible premises located within a revitalization area defined in subdivision (n) of section 22-621 of the code, three thousand dollars, by the number of eligible aggregate employment shares maintained by the taxpayer during the calendar year with respect to particular premises to which the taxpayer has relocated; provided, however, with respect to a relocation for which no application for a certificate of eligibility is submitted prior to July first, two thousand three, to eligible premises that are within a revitalization area, if the date of such relocation as determined pursuant to subdivision (j) of section 22-621 of the code is on or after January first, nineteen hundred ninety-nine, and before July first, two thousand, the amount to be multiplied by the number of eligible aggregate employment shares shall be one thousand dollars; provided, however, that no credit shall be allowed for the relocation of any retail activity or hotel services; and provided that in the case of an eligible business that has obtained pursuant to chapter six-B of such title twenty-two certifications of eligibility for more than one relocation, the portion of the total amount of eligible aggregate employment shares to be multiplied by the dollar amount specified in this subdivision for each such certification of a relocation shall be the number of total attributed eligible aggregate employment shares determined with respect to such relocation pursuant to subdivision (o) of section 22-621 of the code. For purposes of this subdivision, the terms "eligible aggregate employment shares", "relocate", "retail activity" and "hotel services" shall have the meanings ascribed by section 22-621 of the code. (b) The credit allowed under this subdivision with respect to eligible aggregate employment shares maintained with respect to particular premises to which the taxpayer has relocated shall be allowed for the taxable periods in the first calendar year during which such eligible aggregate employment shares are maintained with respect to such premises and for taxable periods in any of the twelve succeeding calendar years during which eligible aggregate employment shares are maintained with respect to such premises, provided that the credit allowed for the taxable periods in the twelfth succeeding calendar year shall be calculated by multiplying the number of eligible aggregate employment shares maintained with respect to such premises in the twelfth succeeding calendar year by the lesser of one and a fraction the numerator of which is the number of days in the calendar year of relocation less the number of days the eligible business maintained employment shares in the eligible premises in the calendar year of relocation and the denominator of which is the number of days in such twelfth succeeding year during which such eligible aggregate employment shares are maintained with respect to such premises. The credit allowable under this section shall be applied against the amount of tax otherwise required to be paid for the last taxable period of the calendar year as provided in subdivision a of section 11-1105 of this chapter, shall be deducted from the taxpayer's tax prior to the deduction of the credit provided in subdivision b of such section, and shall be claimed on the tax return for the last taxable period of the calendar year. Except as provided in subdivision (c) of this section, if the amount of the credit allowable under this subdivision for any calendar year exceeds the tax imposed for such last taxable period in such calendar year, the excess may be carried over, in order, to the immediately succeeding taxable periods in the five immediately succeeding calendar years and, to the extent not previously allowable, shall be applied against the tax otherwise required to be paid for such periods. Such carryover credit shall be deducted from the taxpayer's tax prior to the deduction of the credit provided in subdivision b of section 11-1105 of this chapter. With respect to the last taxable period in a calendar year, the credit for such calendar year shall be taken prior to any carryover credit. If in any period there are carryover credits available from more than one year, such credits shall be applied against the tax in the order in which they were earned with the oldest available credit being taken first. (c) In the case of a taxpayer that has obtained a certification of eligibility pursuant to chapter six-B of title twenty-two of the code dated on or after July first, two thousand for a relocation to eligible premises located within the revitalization area defined in subdivision (n) of section 22-621 of the code, the credits allowed under this section, or in the case of a taxpayer that has relocated more than once, the portion of such credits attributed to such certification of eligibility pursuant to subdivision (a) of this section, against the tax imposed by this chapter for the calendar year of such relocation and for the four calendar years immediately succeeding the calendar year of such relocation, shall be deemed to be erroneous payments of tax by the taxpayer to be credited or refunded, in accordance with the provisions of section 11-1108 of this chapter. For such calendar years, such credits or portions thereof may not be carried over to any succeeding taxable year; provided, however, that this subdivision shall not apply to any relocation for which an application for a certification of eligibility was not submitted prior to July first, two thousand three unless the date of such relocation is on or after July first, two thousand. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1987/049.

NYC Admin. Code § 11-1105.3 Lower Manhattan relocation employment assistance credit.

§ 11-1105.3 Lower Manhattan relocation employment assistance credit. (a) A taxpayer that has obtained the certifications required by chapter six-C of title twenty-two of the code shall be allowed a credit against the tax imposed by this chapter, provided, however, that a taxpayer that is a vendor of utility services shall not be allowed the credit against the tax imposed by this chapter unless it elects as provided in subdivision (d) of section 22-624 of the code to take the credit against the tax imposed by this chapter. The amount of the credit shall be the amount determined by multiplying three thousand dollars by the number of eligible aggregate employment shares maintained by the taxpayer during the calendar year with respect to eligible premises to which the taxpayer has relocated; provided, however, that no credit shall be allowed for the relocation of any retail activity or hotel services. For purposes of this subdivision, the terms "eligible aggregate employment shares", "eligible premises", "relocate", "retail activity" and "hotel services" shall have the meanings ascribed by section 22-623 of the code. (b) The credit allowed under this section with respect to eligible aggregate employment shares maintained with respect to eligible premises to which the taxpayer has relocated shall be allowed for the taxable period in which the relocation to eligible premises takes place and for succeeding taxable periods in the calendar year of the relocation and in any of the twelve succeeding calendar years during which eligible aggregate employment shares are maintained with respect to eligible premises, provided that the credit allowed for the taxable periods in the twelfth succeeding calendar year shall be calculated by multiplying the number of eligible aggregate employment shares maintained with respect to eligible premises in the twelfth succeeding calendar year by the lesser of one and a fraction the numerator of which is the number of days in the calendar year of relocation less the number of days the taxpayer maintained employment shares in eligible premises in the calendar year of relocation and the denominator of which is the number of days in such twelfth succeeding calendar year during which such eligible aggregate employment shares are maintained with respect to such premises. The credit allowable under this section shall be applied against the amount of tax otherwise required to be paid for the last taxable period of the calendar year as provided in subdivision a of section 11-1105 of this chapter, shall be deducted from the taxpayer's tax prior to the deduction of the credit provided in subdivision b of such section but after the credit provided for in section 11-1105.2 of this chapter, and shall be claimed on the tax return for the last taxable period of the calendar year. Except as provided in subdivision (c) of this section, if the amount of the credit allowable under this subdivision for any calendar year exceeds the tax imposed for such last taxable period in such calendar year, the excess may be carried over, in order, to the immediately succeeding taxable periods in the five immediately succeeding calendar years and, to the extent not previously allowable, shall be applied against the tax otherwise required to be paid for such periods. Such carryover credit shall be deducted from the taxpayer's tax prior to the deduction of the credit provided in subdivision b of section 11-1105 of this chapter but after the credit provided for in section 11-1105.2 of this chapter. With respect to the last taxable period in a calendar year, the credit for such calendar year shall be taken prior to any carryover credit. If in any period there are carryover credits available from more than one year, such credits shall be applied against the tax in the order in which they were earned with the oldest available credit being taken first. (c) The credits allowed under this section, against the tax imposed by this chapter for the calendar year of the relocation and for the four taxable years immediately succeeding the calendar year of such relocation, shall be deemed to be overpayments of tax by the taxpayer to be credited or refunded, without interest, in accordance with the provisions of section 11-1108 of this chapter. For such calendar years, such credits or portions thereof may not be carried over to any succeeding calendar year.

NYC Admin. Code § 11-1106 Determination of tax.

§ 11-1106 Determination of tax. In case the return required by this chapter shall be insufficient or unsatisfactory or if such return is not filed, the commissioner of finance shall determine the amount of the tax due from such information as is obtainable, and if necessary the tax may be estimated upon the basis of external indices. Notice of such determination shall be given to the person liable for the payment of the tax. Such determination shall finally and irrevocably fix such tax unless the person against whom it is assessed, within ninety days after the giving of notice of such determination or, if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code and the taxpayer has requested a conciliation conference in accordance therewith, within ninety days from the mailing of a conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, both (1) serves a petition upon the commissioner of finance and (2) files a petition with the tax appeals tribunal for a hearing, or unless such commissioner of his or her own motion shall redetermine the same. Such hearing and any appeal to the tax appeals tribunal sitting en banc from the decision rendered in such hearing shall be conducted in the manner and subject to the requirements prescribed by the tax appeals tribunal pursuant to sections one hundred sixty-eight through one hundred seventy-two of the charter. After such hearing the tax appeals tribunal shall give notice of its decision to the person against whom the tax is assessed and to the commissioner of finance. A decision of the tax appeals tribunal sitting en banc shall be reviewable for error, illegality, unconstitutionality or any other reason whatsoever by a proceeding under article seventy-eight of the civil practice law and rules if instituted by the person against whom the tax was assessed within four months after the giving of the notice of such tax appeals tribunal decision. A proceeding under such article of such law and rules shall not be instituted by a taxpayer unless (a) the amount of any tax sought to be reviewed with penalties and interest thereon, if any, shall first be deposited with the commissioner of finance and there shall be filed with such commissioner an undertaking, issued by a surety company authorized to transact business in this state and approved by the superintendent of insurance of this state as to solvency and responsibility, in such amount and with such sureties as a justice of the supreme court shall approve, to the effect that if such proceeding be dismissed or the tax confirmed, the taxpayer will pay all costs and charges which may accrue in the prosecution of the proceeding, or (b) at the option of the taxpayer such undertaking filed with the commissioner of finance may be in a sum sufficient to cover the taxes, penalties and interest thereon stated in such decision, plus the costs and charges which may accrue against it in the prosecution of the proceeding, in which event the taxpayer shall not be required to deposit such taxes, penalties and interest as a condition precedent to the application.

NYC Admin. Code § 11-1107 Assessment of tax where change or correction of sales and compensating use tax liability involved.

§ 11-1107 Assessment of tax where change or correction of sales and compensating use tax liability involved. a. If a taxpayer fails to comply with subdivision d of section 11-1104 of this chapter in not reporting a change or correction of its sales and compensating use tax liability or in not filing a copy of an amended return or report relating to its sales and compensating use tax liability, instead of the mode and time of assessment provided for in section 11-1106 of this chapter, the commissioner of finance may assess a deficiency based upon such changed or corrected sales and compensating use tax liability, as same relates to credits claimed under this chapter, by mailing to the taxpayer a notice of additional tax due specifying the amount of the deficiency, and such deficiency, together with the interest and penalties stated in such notice, shall be deemed assessed on the date such notice is mailed unless within thirty days after the mailing of such notice a report of the state change or correction or a copy of an amended return or report, where such copy was required, is filed accompanied by a statement showing wherein such state determination and such notice of additional tax due are erroneous. Such notice shall not be considered as a notice of determination for the purposes of section 11-1106 of this chapter. b. If a report filed pursuant to subdivision d of section 11-1104 of this chapter concedes the accuracy of a state change or correction of sales and compensating use tax liability, any deficiency in tax resulting therefor shall be deemed assessed on the date of filing such report.

NYC Admin. Code § 11-1108 Refunds.

§ 11-1108 Refunds. a. In the manner provided in this section the commissioner of finance shall refund or credit, without interest, any tax, penalty or interest erroneously, illegally or unconstitutionally collected or paid, if application for such refund shall be made to the commissioner of finance within three years from the time the return was filed or two years from the time the tax was paid, whichever of such periods expires later, or if no return was filed, within two years from the time the tax was paid. If the claim is filed within the three-year period, the amount of the credit or refund shall not exceed the portion of the tax paid within the three years immediately preceding the filing of the claim plus the period of any extension of time for filing the return. If the claim is not filed within the three-year period, but is filed within the two-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim. Whenever a refund or credit is made or denied by the commissioner of finance, he or she shall state his or her reason therefor and give notice thereof to the taxpayer in writing. The commissioner of finance may, in lieu of any refund required to be made, allow credit therefor on payments due from the applicant. b. Any determination of the commissioner of finance denying a refund or credit pursuant to subdivision a of this section shall be final and irrevocable unless the applicant for such refund or credit, within ninety days from the mailing of notice of such determination, or, if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 and the applicant has requested a conciliation conference in accordance therewith, within ninety days from the mailing of a conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, both (1) serves a petition upon the commissioner of finance and (2) files a petition with the tax appeals tribunal for a hearing. Such petition for a refund or credit, made as herein provided, shall be deemed an application for a revision of any tax, penalty or interest complained of. Such hearing and any appeal to the tax appeals tribunal sitting en banc from the decision rendered in such hearing shall be conducted in the manner and subject to the requirements prescribed by the tax appeals tribunal pursuant to sections one hundred sixty-eight through one hundred seventy-two of the charter. After such hearing, the tax appeals tribunal shall give notice of its decision to the applicant and to the commissioner of finance. The applicant shall be entitled to institute a proceeding under article seventy-eight of the civil practice law and rules to review a decision of the tax appeals tribunal sitting en banc if application to the supreme court be made therefor within four months after the giving of notice of such decision, and provided, in the case of an application by a taxpayer, a final determination of tax due was not previously made. c. If a taxpayer is required by subdivision d of section 11-1104 of this chapter to file a report or amended return in respect of a change or correction of its sales and compensating use tax liability, claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within one year from the time such report or amended return was required to be filed with the commissioner of finance. This subdivision shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subdivision. d. A person shall not be entitled to a revision, refund or credit under this section of a tax, interest or penalty which had been determined to be due pursuant to the provisions of section 11-1106 or 11-1107 of this chapter where he or she has had a hearing or an opportunity for a hearing, as provided in said sections, or has failed to avail himself or herself of the remedies therein provided. No refund or credit shall be made of a tax, interest or penalty paid after a determination by the commissioner of finance made pursuant to section 11-1106 or 11-1107 of this chapter unless it be found that such determination was erroneous, illegal or unconstitutional or otherwise improper, by the tax appeals tribunal after a hearing or of the commissioner of finance's own motion or, if such tax appeals tribunal affirms in whole or in part the determination of the commissioner of finance, in a proceeding under article seventy-eight of the civil practice law and rules pursuant to the provisions of said section, in which event refund or credit without interest shall be made of the tax, interest or penalty found to have been overpaid.

NYC Admin. Code § 11-1109 Reserves.

§ 11-1109 Reserves. In cases where the taxpayer has applied for a refund and has instituted a proceeding under article seventy-eight of the civil practice law and rules to review a determination adverse to him or her on his or her application for refund, the comptroller shall set up appropriate reserves to meet any decision adverse to the city.

NYC Admin. Code § 11-1110 Remedies exclusive.

§ 11-1110 Remedies exclusive. The remedies provided by this chapter shall be the exclusive remedies available to any person for the review of tax liability imposed by this chapter; and no determination or proposed determination of tax or determination on any application for refund by the commissioner of finance, nor any decision by the tax appeals tribunal or any of its administrative law judges, shall be enjoined or reviewed by an action for declaratory judgment, an action for money had and received or by any action or proceeding other than, in the case of a decision by the tax appeals tribunal sitting en banc, a proceeding under article seventy-eight of the civil practice law and rules; provided, however, that a taxpayer may proceed by a declaratory judgment if he or she institutes suit within thirty days after a deficiency assessment is made and pays the amount of the deficiency assessment to the commissioner of finance prior to the institution of such suit and posts a bond for costs as provided in section 11-1106 of this chapter.

NYC Admin. Code § 11-1111 Proceedings to recover tax.

§ 11-1111 Proceedings to recover tax. a. Whenever any person shall fail to pay any tax or penalty or interest imposed by this chapter as herein provided, the corporation counsel shall, upon the request of the commissioner of finance, bring or cause to be brought an action to enforce payment of the same against the person liable for the same on behalf of the city of New York in any court of the state of New York or of any other state or of the United States. If, however, such commissioner in his or her discretion believes that a taxpayer subject to the provisions of this chapter is about to cease business, leave the state or remove or dissipate the assets out of which tax or penalties might be satisfied and that any such tax or penalty will not be paid when due, he or she may declare such tax or penalty to be immediately due and payable and may issue a warrant immediately. b. As a further additional or alternate remedy, the commissioner of finance may issue a warrant, directed to the city sheriff, commanding him or her to levy upon and sell the real and personal property of such person which may be found within the city, for the payment of the amount thereof, with any penalties and the cost of executing the warrant and to return such warrant to such commissioner and to pay to him or her the money collected by virtue thereof within sixty days after the receipt of such warrant. The city sheriff shall, within five days after the receipt of the warrant, file with the county clerk a copy thereof and thereupon such clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax and penalties for which the warrant is issued and the date when such copy is filed. Thereupon the amount of such warrant so docketed shall have the full force and effect of a judgment and shall become a lien upon the title to and interest in real and personal property of the person against whom the warrant is issued. The city sheriff shall then proceed upon the warrant in the same manner and with like effect as that provided by law in respect to executions against property upon judgments of a court of record, and for services in executing the warrant he or she shall be entitled to the same fees which he or she may collect in the same manner. In the discretion of the commissioner of finance a warrant of like terms, force and effect may be issued and directed to any officer or employee of the department of finance and in the execution thereof such officer or employee shall have all the power conferred by law upon sheriffs, but he or she shall be entitled to no fee or compensation in excess of the actual expenses paid in the performance of such duty. If a warrant is returned not satisfied in full, the commissioner of finance may from time to time issue new warrants and shall also have the same remedies to enforce the amount due thereunder as if the city had recovered judgment therefor and execution thereon had been returned unsatisfied. c. Whenever there is made a sale, transfer or assignment in bulk of any part or the whole of a stock of merchandising or of fixtures, or merchandise and of fixtures pertaining to the conducting of the business of the seller, transferor or assignor, otherwise than in the ordinary course of trade and in the regular prosecution of said business, the purchaser, transferee or assignee shall at least ten days before taking possession of such merchandise, fixtures, or merchandise and fixtures, or paying therefor, notify the commissioner of finance by registered mail of the proposed sale and of the price, terms and conditions thereof, whether or not the seller, transferor or assignor, has represented to, or informed the purchaser, transferee or assignee that it owes any tax pursuant to this chapter, whether or not the purchaser, transferee or assignee has knowledge that such taxes are owing, and whether or not any such taxes are in fact owing. Whenever the purchaser, transferee or assignee shall fail to give the notice to the commissioner of finance required by this subdivision, or whenever such commissioner shall inform the purchaser, transferee or assignee that a possible claim for such tax or taxes exists, any sums of money, property or choses in action, or other consideration, which the purchaser, transferee or assignee is required to transfer over to the seller, transferor or assignor shall be subject to a first priority right and lien for any such taxes theretofore or thereafter determined to be due from the seller, transferor or assignor to the city, and the purchaser, transferee or assignee is forbidden to transfer to the seller, transferor or assignor any such sums of money, property or choses in action to the extent of the amount of the city's claim. For failure to comply with the provisions of this subdivision the purchaser, transferee or assignee, in addition to being subject to the liabilities and remedies imposed under the provisions of article six of the uniform commercial code shall be personally liable for the payment to the city of any such taxes theretofore or thereafter determined to be due to the city from the seller, transferor or assignor and such liability may be assessed and enforced in the same manner as the liability for tax is imposed under this chapter. d. The commissioner of finance, if he or she finds that the interests of the city will not thereby be jeopardized, and upon such conditions as the commissioner of finance may require, may release any property from the lien of any warrant or vacate such warrant for unpaid taxes, additions to tax, penalties and interest filed pursuant to subdivision b of this section, and such release or vacating of the warrant may be recorded in the office of any recording officer in which such warrant has been filed. The clerk shall thereupon cancel and discharge as of the original date of docketing the vacated warrant.

NYC Admin. Code § 11-1112 General powers of the commissioner of finance.

§ 11-1112 General powers of the commissioner of finance. In addition to the powers granted to the commissioner of finance in this chapter, he or she is hereby authorized and empowered: 1. To make, adopt and amend rules and regulations appropriate to the carrying out of this chapter and the purposes thereof; and to prescribe the form of blanks, reports and other records relating to the enforcement and administration of this chapter; 2. To prescribe methods for determining the amount of "gross income" and "gross operating income" received by a person subject to tax hereunder; 3. To request information from the tax commission of the state of New York or treasury department of the United States relative to any person; and to afford returns, reports and other information to such tax commission or such treasury department relative to any person, any other provision in this chapter to the contrary notwithstanding; 4. To extend, for cause shown, the time for filing any return for a period not exceeding thirty days; and to compromise disputed claims in connection with the taxes hereby imposed; 5. To delegate his or her functions hereunder to a deputy commissioner of finance or other employee or employees of the department of finance of the city; 6. To assess, determine, revise and readjust the taxes imposed under this chapter.

NYC Admin. Code § 11-1113 Administration of oaths and compelling testimony.

§ 11-1113 Administration of oaths and compelling testimony. a. The commissioner of finance, his or her employees duly designated and authorized by him or her, the tax appeals tribunal and any of its duly designated and authorized employees shall have power to administer oaths and take affidavits in relation to any matter or proceedings in the exercise of their powers and duties under this chapter. Such commissioner and the tax appeals tribunal shall have power to subpoena and require the attendance of witnesses and the production of books, papers and documents to secure information pertinent to the performance of the duties of such commissioner or of the tax appeals tribunal hereunder and of the enforcement of this chapter, and to examine them in relation thereto, and to issue commissions for the examination of witnesses who are out of the state or unable to attend before the commissioner or the tax appeals tribunal or excused from attendance. b. A justice of the supreme court either in court or at chambers shall have power summarily to enforce by proper proceedings the attendance and testimony of witnesses and the production and examination of books, papers and documents called for by the subpoena of the commissioner of finance or the tax appeals tribunal under this chapter. c. Cross-reference; criminal penalties. For failure to obey subpoenas or for testifying falsely, see section 11-4007 of this title; for supplying false or fraudulent information, see section 11-4002 of this title. d. The officers who serve the summons or subpoena of the commissioner of finance or the tax appeals tribunal hereunder and witnesses attending in response thereto shall be entitled to the same fees as are allowed to officers and witnesses in civil cases in courts of record, except as herein otherwise provided. Such officers shall be the city sheriff, and his or her duly appointed deputies or any officers or employees of the department of finance or the tax appeals tribunal, designated to serve such process.

NYC Admin. Code § 11-1114 Interest and penalties.

§ 11-1114 Interest and penalties. (a) Interest on underpayments. If any amount of tax is not paid on or before the last date prescribed for payment (without regard to any extension of time granted for payment), interest on such amount at the rate set by the commissioner of finance pursuant to subdivision (g) of this section, or, if no rate is set, at the rate of seven and one-half percent per annum, shall be paid for the period from such last date to the date of payment. In computing the amount of interest to be paid, such interest shall be compounded daily. Interest under this subdivision shall not be paid if the amount thereof is less than one dollar. (b) (1) Failure to file return. (A) In case of failure to file a return under this chapter on or before the prescribed date (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return five percent of the amount of such tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. (B) In the case of a failure to file a return of tax within sixty days of the date prescribed for filing of such return (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under subparagraph (A) of this paragraph shall not be less than the lesser of one hundred dollars or one hundred percent of the amount required to be shown as tax on such return. (C) For purposes of this paragraph, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. (2) Failure to pay tax shown on return. In case of failure to pay the amount shown as tax on a return required to be filed under this chapter on or before the prescribed date (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount shown as tax on such return one-half of one percent of the amount of such tax if the failure is not for more than one month, with an additional one-half of one percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. For the purpose of computing the addition for any month the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed upon the return. If the amount of tax required to be shown on a return is less than the amount shown as tax on such return, this paragraph shall be applied by substituting such lower amount. (3) Failure to pay tax required to be shown on return. In case of failure to pay any amount in respect of any tax required to be shown on a return required to be filed under this chapter which is not so shown (including a determination made pursuant to section 11-1106 of this chapter) within ten days of the date of a notice and demand therefor, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand one-half of one percent of such tax if the failure is not for more than one month, with an additional one-half of one percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. For the purpose of computing the addition for any month, the amount of tax stated in the notice and demand shall be reduced by the amount of any part of the tax which is paid before the beginning of such month. (4) Limitations on additions. (A) With respect to any return, the amount of the addition under paragraph one of this subdivision shall be reduced by the amount of the addition under paragraph two of this subdivision for any month to which an addition applies under both paragraphs one and two. In any case described in subparagraph (B) of paragraph (1) of this subdivision, the amount of the addition under such paragraph (1) shall not be reduced below the amount provided in such subparagraph. (B) With respect to any return, the maximum amount of the addition permitted under paragraph three of this subdivision shall be reduced by the amount of the addition under paragraph one of this subdivision (determined without regard to subparagraph (B) of such paragraph (1) * which is attributable to the tax for which the notice and demand is made and which is not paid within ten days of such notice and demand. (c) Underpayment due to negligence. (1) If any part of an underpayment of tax is due to negligence or intentional disregard of this chapter or any rules or regulations hereunder (but without intent to defraud), there shall be added to the tax a penalty equal to five percent of the underpayment. (2) There shall be added to the tax (in addition to the amount determined under paragraph (1) of this subdivision) an amount equal to fifty percent of the interest payable under subdivision (a) of this section with respect to the portion of the underpayment described in such paragraph (1) which is attributable to the negligence or intentional disregard referred to in such paragraph (1), for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax). (3) If any payment is shown on a return made by a payor with respect to dividends, patronage dividends and interest under subsection (a) of section six thousand forty-two, subsection (a) of section six thousand forty-four or subsection (a) of section six thousand forty-nine of the internal revenue code of nineteen hundred fifty-four, respectively, and the payee fails to include any portion of such payment in gross income or gross operating income, when required under this chapter to be so included, any portion of an underpayment attributable to such failure shall be treated, for purposes of this subdivision, as due to negligence in the absence of clear and convincing evidence to the contrary. If any penalty is imposed under this subdivision by reason of the preceding sentence, the amount of the penalty imposed by paragraph (1) of this subdivision shall be five percent of the portion of the underpayment which is attributable to the failure described in the preceding sentence. (d) Underpayment due to fraud. (1) If any part of an underpayment of tax is due to fraud, there shall be added to the tax a penalty equal to two times the underpayment. (2) [Repealed.] (3) The penalty under this subdivision shall be in lieu of any other addition to tax imposed by subdivision (b) or (c) of this section. (e) Additional penalty. Any person who, with fraudulent intent, shall fail to pay any tax imposed by this chapter, or to make, render, sign or certify any return, or to supply any information within the time required by or under this chapter, shall be liable for a penalty of not more than one thousand dollars, in addition to any other amounts required under this chapter to be imposed, assessed and collected by the commissioner of finance. The commissioner of finance shall have the power, in his or her discretion, to waive, reduce or compromise any penalty under this subdivision. (f) The interest and penalties imposed by this section shall be paid and disposed of in the same manner as other revenues from this chapter. Unpaid interest and penalties may be enforced in the same manner as the tax imposed by this chapter. (g) (1) Authority to set interest rates. The commissioner of finance shall set the rate of interest to be paid pursuant to subdivision (a) of this section, but if no such rate of interest is set, such rate shall be deemed to be set at seven and one-half percent per annum. Such rate shall be the rate prescribed in paragraph two of this subdivision but shall not be less than seven and one-half percent per annum. Any such rate set by the commissioner of finance shall apply to taxes, or any portion thereof, which remain or become due on or after the date on which such rate becomes effective and shall apply only with respect to interest computed or computable for periods or portions of periods occurring in the period in which such rate is in effect. (2) General rule. The rate of interest set under this subdivision shall be the sum of (i) the federal short-term rate as provided under paragraph three of this subdivision, plus (ii) seven percentage points. (3) Federal short-term rate. For purposes of this subdivision: (A) The federal short-term rate for any month shall be the federal short-term rate determined by the United States secretary of the treasury during such month in accordance with subsection (d) of section twelve hundred seventy-four of the internal revenue code for use in connection with section six thousand six hundred twenty-one of the internal revenue code. Any such rate shall be rounded to the nearest full percent (or, if a multiple of one-half of one percent, such rate shall be increased to the next highest full percent). (B) Period during which rate applies. (i) In general. Except as provided in clause (ii) of this subparagraph, the federal short-term rate for the first month in each calendar quarter shall apply during the first calendar quarter beginning after such month. (ii) Special rule for the month of September, nineteen hundred eighty-nine. The federal short-term rate for the month of April, nineteen hundred eighty-nine shall apply with respect to setting the rate of interest for the month of September, nineteen hundred eighty-nine. (4) Publication of interest rate. The commissioner of finance shall cause to be published in the city record, and give other appropriate general notice of, the interest rate to be set under this subdivision no later than twenty days preceding the first day of the calendar quarter during which such interest rate applies. The setting and publication of such interest rate shall not be included within paragraph (a) of subdivision five of section one thousand forty-one of the city charter relating to the definition of a rule. (h) Miscellaneous. (1) The certificate of the commissioner of finance to the effect that a tax has not been paid, that a return has not been filed, or that information has not been supplied pursuant to the provisions of this chapter shall be prima facie evidence thereof. (2) Cross-reference: For criminal penalties, see chapter forty of this title. (i) Substantial understatement of liability. If there is a substantial understatement of tax for any taxable period, there shall be added to the tax an amount equal to ten percent of the amount of any underpayment attributable to such understatement. For purposes of this subdivision, there is a substantial understatement of tax for any taxable period if the amount of the understatement for the taxable period exceeds the greater of ten percent of the tax required to be shown on the return for the taxable period or five thousand dollars. For purposes of the preceding sentence, the term "understatement" means the excess of the amount of the tax required to be shown on the return for the taxable period, over the amount of the tax imposed which is shown on the return, reduced by any rebate. The amount of such understatement shall be reduced by that portion of the understatement which is attributable to the tax treatment of any item by the taxpayer if there is or was substantial authority for such treatment, or any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return. The commissioner of finance may waive all or any part of the addition to tax provided by this subdivision on a showing by the taxpayer that there was reasonable cause for the understatement (or part thereof) and that the taxpayer acted in good faith. (j) Aiding or assisting in the giving of fraudulent returns, reports, statements or other documents. (1) Any person who, with the intent that tax be evaded, shall, for a fee or other compensation or as an incident to the performance of other services for which such person receives compensation, aid or assist in, or procure, counsel, or advise the preparation or presentation under, or in connection with any matter arising under this title of any return, report, statement or other document which is fraudulent or false as to any material matter, or supply any false or fraudulent information, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, report, statement or other document shall pay a penalty not exceeding ten thousand dollars. (2) For purposes of paragraph (1) of this subdivision, the term "procures" includes ordering (or otherwise causing) a subordinate to do an act, and knowing of, and not attempting to prevent, participation by a subordinate in an act. The term "subordinate" means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control. (3) For purposes of paragraph (1) of this subdivision, a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance. (4) The penalty imposed by this subdivision shall be in addition to any other penalty provided by law. (k) Failure to include on return information relating to issuer's allocation percentage. Where a return is filed but does not contain (1) the information necessary to compute the taxpayer's issuer's allocation percentage, as defined in subparagraph one of paragraph (b) of subdivision three of section 11-604 of this title, where the same is called for on the return, or, (2) the taxpayer's issuer's allocation percentage, where the same is called for on the return but where all of the information necessary for the computation of such percentage is not called for on the return, then unless it is shown that such failure is due to reasonable cause and not due to willful neglect there shall be added to the tax a penalty of five hundred dollars. (l) False or fraudulent document penalty. Any taxpayer that submits a false or fraudulent document to the department shall be subject to a penalty of one hundred dollars per document submitted, or five hundred dollars per tax return submitted. Such penalty shall be in addition to any other penalty or addition provided by law.

NYC Admin. Code § 11-1115 Notices and limitations of time.

§ 11-1115 Notices and limitations of time. a. Any notice authorized or required under the provisions of this chapter may be given by mailing the same to the person for whom it is intended in a postpaid envelope addressed to such person at the address given in the last return filed by such person pursuant to the provisions of this chapter or in any application made by him or her, or, if no return has been filed or application made, then to such address as may be obtainable. The mailing of such notice shall be presumptive evidence of the receipt of the same by the person to whom addressed. Any period of time which is determined according to the provisions of this chapter by the giving of notice shall commence to run from the date of mailing of such notice. b. The provisions of the civil practice law and rules or any other law relative to limitations of time for the enforcement of a civil remedy shall not apply to any proceeding or action by the city taken to levy, appraise, assess, determine or enforce the collection of any tax or penalty provided by this chapter. However, except in the case of a wilfully false or fraudulent return with intent to evade the tax, no assessment of additional tax imposed under a local law enacted subsequent to July first, nineteen hundred thirty-eight, shall be made after the expiration of more than three years from the date of the filing of a return, provided, however, that where no return has been filed, or where the taxpayer fails to file a report or return in respect of a change or correction in the amount of sales and compensating use tax liability as provided by law, the tax may be assessed at any time. Where the taxpayer files a report or return in respect of a change or correction in sales and compensating use tax liability, as required by subdivision d of section 11-1104, an assessment may be made at any time within two years after such report or return was filed, provided, however, that this sentence shall not affect the time within which an assessment may otherwise be made. c. Where, before the expiration of the period prescribed herein for the assessment of an additional tax, a taxpayer has consented in writing that such period be extended, the amount of such additional tax due may be determined at any time within such extended period. The period so extended may be further extended by subsequent consents in writing made before the expiration of the extended period. d. If any return, claim, statement, notice, application, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under authority of any provision of this chapter is, after such period or such date, delivered by United States mail to the commissioner of finance, the tax appeals tribunal, bureau, office, officer or person with which or with whom such document is required to be filed, or to which or to whom such payment is required to be made, the date of the United States postmark stamped on the envelope shall be deemed to be the date of delivery. This subdivision shall apply only if the postmark date falls within the prescribed period or on or before the prescribed date for the filing of such document, or for making the payment, including any extension granted for such filing or payment, and only if such document or payment was deposited in the mail, postage prepaid, properly addressed to the commissioner of finance, the tax appeals tribunal, bureau, office, officer or person with which or with whom the document is required to be filed or to which or to whom such payment is required to be made. If any document is sent by United States registered mail, such registration shall be prima facie evidence that such document was delivered to the commissioner of finance, the tax appeals tribunal, bureau, office, officer or person to which or to whom addressed, and the date of registration shall be deemed the postmark date. The commissioner of finance or, where relevant, the tax appeals tribunal is authorized to provide by regulation the extent to which the provisions of the preceding sentence with respect to prima facie evidence of delivery and the postmark date shall apply to certified mail. Except as provided in subdivision f of this section, this subdivision shall apply in the case of postmarks not made by the United States postal service only if and to the extent provided by regulation of the commissioner of finance or where relevant, the tax appeals tribunal. e. When the last day prescribed under authority of this chapter (including any extension of time) for performing any act falls on a Saturday, Sunday or legal holiday in the state, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or legal holiday. f. (1) Any reference in subdivision d of this section to the United States mail shall be treated as including a reference to any delivery service designated by the secretary of the treasury of the United States pursuant to section seventy-five hundred two of the internal revenue code and any reference in subdivision d of this section to a United States postmark shall be treated as including a reference to any date recorded or marked in the manner described in section seventy-five hundred two of the internal revenue code by a designated delivery service. If the commissioner of finance finds that any delivery service designated by such secretary is inadequate for the needs of the city, the commissioner of finance may withdraw such designation for purposes of this title. The commissioner of finance may also designate additional delivery services meeting the criteria of section seventy-five hundred two of the internal revenue code for purposes of this title, or may withdraw any such designation if the commissioner of finance finds that a delivery service so designated is inadequate for the needs of the city. Any reference in subdivision d of this section to the United States mail shall be treated as including a reference to any delivery service designated by the commissioner of finance and any reference in subdivision d of this section to a United States postmark shall be treated as including a reference to any date recorded or marked in the manner described in section seventy-five hundred two of the internal revenue code by a delivery service designated by the commissioner of finance. Notwithstanding the foregoing, any withdrawal of designation or additional designation by the commissioner of finance shall not be effective for purposes of service upon the tax appeals tribunal, unless and until such withdrawal of designation or additional designation is ratified by the president of the tax appeals tribunal. (2) Any equivalent of registered or certified mail designated by the United States secretary of the treasury, or as may be designated by the commissioner of finance pursuant to the same criteria used by such secretary for such designations pursuant to section seventy-five hundred two of the internal revenue code, shall be included within the meaning of registered or certified mail as used in subdivision d of this section. If the commissioner of finance finds that any equivalent of registered or certified mail designated by such secretary or the commissioner of finance is inadequate for the needs of the city, the commissioner of finance may withdraw such designation for purposes of this title. Notwithstanding the foregoing, any withdrawal of designation or additional designation by the commissioner of finance shall not be effective for purposes of service upon the tax appeals tribunal, unless and until such withdrawal of designation or additional designation is ratified by the president of the tax appeals tribunal.

NYC Admin. Code § 11-1116 Returns to be secret.

§ 11-1116 Returns to be secret. a. Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the commissioner of finance, the tax appeals tribunal, or any officer or employee of the department of finance or the tax appeals tribunal to divulge or make known in any manner, the receipts or any other information relating to the business of a taxpayer contained in any return required under this chapter. The officers charged with the custody of such returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the city or the commissioner of finance, or on behalf of any party to any action or proceeding under the provisions of this chapter when the returns or facts shown thereby are directly involved in such action or proceeding, in either of which events, the court may require the production of, and may admit in evidence, so much of said returns or of the facts shown thereby, as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the delivery to a taxpayer or his or her duly authorized representative of a certified copy of any return filed in connection with his or her tax, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns and the items thereof, or the inspection by the corporation counsel of the city or other legal representatives of such city of the return of any taxpayer who shall bring action or proceeding to set aside or review the tax based thereon, or against whom an action or proceeding has been instituted or is contemplated for the collection of a tax, penalty or interest. Returns shall be preserved for three years and thereafter until the commissioner of finance permits them to be destroyed. b. (1) Any officer or employee of the city who willfully violates the provisions of subdivision a of this section shall be dismissed from office and be incapable of holding any public office in this city for a period of five years thereafter. (2) Cross-reference: For criminal penalties, see chapter forty of this title. c. This section shall be deemed a state statute for purposes of paragraph (a) of subdivision two of section eighty-seven of the public officers law. d. Notwithstanding anything in subdivision a of this section to the contrary, if a taxpayer has petitioned the tax appeals tribunal for administrative review as provided in section one hundred seventy of the charter, the commissioner of finance shall be authorized to present to the tribunal any report or return of such taxpayer, or any information contained therein or relating thereto, which may be material or relevant to the proceeding before the tribunal. The tax appeals tribunal shall be authorized to publish a copy or a summary of any decision rendered pursuant to section one hundred seventy-one of the charter. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1988/062.

NYC Admin. Code § 11-1117 Construction and enforcement.

§ 11-1117 Construction and enforcement. This chapter shall be construed and enforced in conformity with chapter ninety-three of the laws of nineteen hundred sixty-five, as amended, pursuant to which it is enacted.

NYC Admin. Code § 11-1118 Disposition of revenues.

§ 11-1118 Disposition of revenues. All revenues resulting from the imposition of the tax under this chapter shall be paid into the treasury of the city and shall be credited to and deposited in the general fund of the city, but no part of such revenues may be expended unless appropriated in the annual budget of the city.

NYC Admin. Code § 11-1119 Determinations of place of primary use of wireless telecommunications services.

§ 11-1119 Determinations of place of primary use of wireless telecommunications services. a. A home service provider shall be responsible for obtaining and maintaining the customer's place of primary use as defined in subdivision twenty of section 11-1101 of this chapter. Except as provided in subdivision b of this section, if the home service provider's reliance on the information provided by its customer is in good faith: (1) the home service provider can rely on the applicable residential or business street address supplied by the home service provider's customer; and (2) the home service provider shall not be held liable for any additional taxes under this chapter based on a different determination of the place of primary use. b. The commissioner of finance, or the commissioner of taxation and finance of the state of New York on behalf of the commissioner of finance, may determine that the address used by a home service provider for purposes of this chapter does not meet the definition of place of primary use as defined in subdivision twenty of section 11-1101 of this chapter and may give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination if: (1) where the determination is made by the commissioner of finance, such commissioner obtains the consent of all affected taxing jurisdictions within this state before giving such notice of determination; and (2) before the commissioner of finance or the commissioner of taxation and finance of the state of New York gives such notice of determination, the customer is given an opportunity to demonstrate, in accordance with applicable procedures established by the commissioner of finance making the determination, that that address is the customer's place of primary use. c. Except as provided in subdivision b of this section, a home service provider may treat the address used by the home service provider for purposes of this chapter for the last taxable period beginning before August first, two thousand two, for any customer under a service contract or agreement in effect on July twenty-eighth, two thousand two as that customer's place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement.

NYC Admin. Code § 11-1120 Assignment of place of primary use of telecommunications services to the city.

§ 11-1120 Assignment of place of primary use of telecommunications services to the city. a. If an electronic database meeting the requirements of 4 U.S.C. § 119(a) is provided by the state of New York, or by a designated database provider as defined in subsection three of section 124 of such title, and the requirements of subsection b of such section 119 are met, a home service provider shall use that database to determine whether the customer's place of primary use is within the territorial limits of the city and shall reflect changes to such database in accordance with subsection c of such section 119. b. A home service provider using the data contained in an electronic database described in subdivision a of this section shall be held harmless from any tax liability that otherwise would be due under this chapter solely as a result of any error or omission in such database provided the home service provider has properly reflected changes to such database in accordance with 4 U.S.C. § 119(c). c. (1) If no electronic database is provided as described in subdivision a of this section, a home service provider shall be held harmless from any tax liability under this chapter that otherwise would be due solely as a result of an assignment of a street address to an incorrect taxing jurisdiction if, subject to subdivision d of this section, the home service provider employs an enhanced zip code to assign each street address to a specific taxing jurisdiction for each level of taxing jurisdiction and exercises due diligence at each level of taxing jurisdiction to ensure that each such street address is assigned to the correct taxing jurisdiction. If an enhanced zip code overlaps boundaries of taxing jurisdictions of the same level, the home service provider must designate one specific jurisdiction within such enhanced zip code for use in taxing the activity for such enhanced zip code for each level of taxing jurisdiction. Any enhanced zip code assignment changed in accordance with subdivision d of this section is deemed to be in compliance with this subdivision. For purposes of this subdivision, there is a rebuttable presumption that a home service provider has exercised due diligence if such home service provider demonstrates that it has: (i) expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions; (ii) implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions; and (iii) used all reasonably obtainable and usable data pertaining to municipal annexations, incorporations, reorganizations and any other changes in jurisdictional boundaries that materially affect the accuracy of such database. (2) Paragraph one of this subdivision applies to a home service provider that is in compliance with the requirements of such paragraph until the later of: (i) eighteen months after the nationwide standard numeric code described in 4 U.S.C. § 119(a) has been approved by the federation of tax administrators and the multistate tax commission; or (ii) six months after the state of New York or a designated database provider provides a database as prescribed in subdivision a of this section. d. The commissioner of finance, or the commissioner of taxation and finance of the state of New York on behalf of the commissioner of finance, may determine that the assignment of a street address to a taxing jurisdiction by a home service provider under subdivision c of this section does not reflect the correct taxing jurisdiction and give binding notice to the home service provider to change the assignment on a prospective basis from the date of notice of determination if: (1) where the determination is made by the commissioner of finance, such commissioner obtains the consent of all affected taxing jurisdictions within this state before giving such notice of determination; and (2) the home service provider is given an opportunity to demonstrate in accordance with applicable procedures established by the commissioner of finance making the determination that the assignment reflects the correct taxing jurisdiction.
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-12785Fetched: 10/24/2026

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