N.Y. Tax Law § 1301-B — City separate tax on the ordinary income portion of lump sum distributions

§ 1301-B. City separate tax on the ordinary income portion of lump sum\ndistributions. (a) Imposition of separate tax. The city separate tax on\nthe ordinary income portion of a lump sum distribution imposed pursuant\nto the authority of this article shall be imposed for each taxable year\non the ordinary income portion of a lump sum distribution of every\nresident individual, estate or trust of such city which has made an\nelection of lump sum treatment under subsection (e) of section four\nhundred two of the internal revenue code.\n (b) Amount of separate tax. The amount of tax imposed pursuant to the\nauthority of subsection (a) for any taxable year shall be an amount\nequal to five times the tax which would be imposed at the rate set forth\nin paragraph three of subsection (a) or (b) of section thirteen hundred\nfour of this article, whichever may be applicable, if the recipient were\nan individual referred to in such subsection and the city taxable income\nreferred to were an amount equal to one-fifth of the excess of:\n (1) the total taxable amount of the lump sum distribution for the\ntaxable year, over\n (2) the minimum distribution allowance.\n (c) Minimum distribution allowance. For purposes of this section, the\nminimum distribution allowance shall be that which is calculated\naccording to subparagraph (C) of paragraph one of subsection (e) of\nsection four hundred two of the internal revenue code.\n (d) Liability for tax. The recipient of a lump sum distribution shall\nbe liable for the tax imposed pursuant to the authority of this section.\n (e) Multiple distributions and distributions of annuity contracts. For\npurposes of this section the rules concerning multiple distributions and\ndistributions of annuity contracts as specified by paragraph two of\nsubsection (e) of section four hundred two of the internal revenue code\nshall be applicable, except that references to the "tax imposed by\nparagraph (1) (A)" shall be deemed to be references to the city separate\ntax on the ordinary income portion of a lump sum distribution authorized\nby this article, and except that only lump sum distributions (or\nportions thereof) and distributions of annuity contracts subject to the\ncity separate tax on the ordinary income portion of lump sum\ndistributions authorized by this article shall be included, and except\nthat references to the secretary shall be deemed to be references to the\ntax commission.\n (f) Definitions and special rules. For purposes of this section, the\nfollowing provisions shall apply, to the extent applicable to the\ntaxpayer's federal tax on lump sum distributions: (1) the definitions\nand special rules as specified in paragraph four of subsection (e) of\nsection four hundred two of the internal revenue code; and (2) the\nspecial rules relating to (A) individuals who have attained the age of\nfifty before January first, nineteen hundred eighty-six and (B) capital\ngains, as specified in paragraphs three, four, five and six of\nsubsection (h) of section eleven hundred twenty-two of the tax reform\nact of nineteen hundred eighty-six as enacted by public law 99-514, but\n(i) in the event that paragraph three of such subsection is applicable,\nclause (ii) of subparagraph (B) of such paragraph shall be applied using\na rate of one and seventy-two hundredths percent, and (ii) in the event\nthat paragraph five of such subsection is applicable, the words "five"\nand "one-fifth" in subsection (b) of this section shall be read as "ten"\nand "one-tenth", respectively, and subsection (b) of this section shall\nbe applied by using the rate of tax specified in subsection (a) of\nsection thirteen hundred four as such subsection was in effect for\ntaxable years beginning in nineteen hundred eighty-six.\n (g) Credits. The credits against tax authorized under this article,\nexcept for the credit under subsection (a) of section thirteen hundred\nten, shall not be allowed against the city separate tax on the ordinary\nincome portion of lump sum distributions imposed pursuant to the\nauthority of this article.\n