N.Y. Tax Law § 624 — Computation of separate tax on the ordinary income portion of lump sum distributions received by resident individuals, estates and trusts

§ 624. Computation of separate tax on the ordinary income portion of\nlump sum distributions received by resident individuals, estates and\ntrusts. (a) Amount of separate tax. The amount of tax imposed under\nsection six hundred three for any taxable year, with respect to the\nordinary income portion of a lump sum distribution received by a\nresident individual, estate or trust is an amount equal to five times\nthe tax which would be imposed by subsection (c) of section six hundred\none if the recipient of such lump sum distribution were an individual\nreferred to in such subsection and the New York taxable income were an\namount 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 (b) 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 (c) Multiple distributions and distributions of annuity contracts. For\npurposes of this section, the rules concerning multiple distributions\nand distributions 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 "paragraph (1) (A)" shall\nbe deemed to be references to this section, and except that only lump\nsum distributions (or portions thereof) and distributions of annuity\ncontracts subject to tax under this article shall be included, and\nexcept that references to the secretary shall be deemed to be references\nto the tax commission.\n (d) 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 five and four-tenths percent, and (ii) in the event that\nparagraph five of such subsection is applicable, the words "five" and\n"one-fifth" in subsection (a) of this section shall be read as "ten" and\n"one-tenth", respectively, and subsection (a) of this section shall be\napplied by using the rate of tax specified in subsection (f) of section\nsix hundred two as such subsection was in effect for taxable years\nbeginning in nineteen hundred eighty-six.\n