NY TAX § 1340. Authorization to impose tax

(a) In addition to any other taxes, now authorized by law, any city having a population of more than one hundred ninety thousand but less than two hundred fifteen thousand inhabitants, determined in accordance with the 1980 federal census, is hereby authorized and empowered to adopt and amend local laws imposing a tax on the earnings of nonresidents of such city to be administered in the manner provided for in this article by the commissioner.

The tax authorized by this article may be imposed only if the city imposing the tax herein authorized also imposes a city income tax surcharge on its residents.  The rates of such tax shall be the rates contained in section two of the model local law.

(b)(i) A local law enacted pursuant to the authority of this section shall go into effect on the first day of January, nineteen hundred eighty-four and shall apply to taxable years beginning on or after such date and before two thousand twenty.  Provided, however, no such local law shall be so effective unless such local law is enacted by July thirty-first, nineteen hundred eighty-four and unless a certified copy of such local law is mailed by registered or certified mail to the commissioner at such commissioner's office in Albany by such date.  (ii) If the requirements of the preceding sentence are not met, a local law enacted pursuant to the authority of this section shall go into effect on the first day of the next succeeding January and shall apply to taxable years beginning on or after such date and before two thousand twenty.  Provided, however, no such local law shall be so effective unless such local law is enacted at least ninety days prior to the date it is to become effective and unless a certified copy of such local law is mailed by registered or certified mail to the commissioner at such commissioner's office in Albany by such date.  However, the commissioner may waive and reduce such ninety day minimum requirements within a period of not less than thirty days prior to such effective date if such commissioner deems such action to be consistent with such commissioner's duties under this article.  (iii) Any amendment of such a local law enacted pursuant to the authority of the section, which changes the rate of the income tax surcharge on residents, shall take effect on the first day of January in the year in which such amendment is enacted and shall apply to taxable years beginning on or after such date, if such amendment is enacted on or before July thirty-first of the year in which it is to take effect and a certified copy of such amendment is mailed by registered or certified mail to the commissioner at his or her office in Albany by such date.  (iv) If the requirements of paragraph (iii) of this subsection are not met, the amendment of such local law shall go into effect on the first day of the next succeeding January and shall apply to taxable years beginning on or after such date, provided that no such amendment shall take effect unless it is enacted at least ninety days prior to the date it is to become effective and a certified copy thereof is mailed by registered or certified mail to the commissioner at his or her office in Albany by such date.

(c) The terms of such local law shall be substantially the same as the following model local law.

(d) Any wages received by an individual as an employee of a business located in a tax-free NY area within the city during the first five years of such business's ten year taxable period specified in of this chapter and earned at such location shall be exempt from the tax authorized to be imposed by this article to the extent included in federal adjusted gross income and allowed under of this chapter.  During the second five years of such business's ten year taxable period, the first two hundred thousand dollars of such wages in the case of a taxpayer filing as a single individual, the first two hundred fifty thousand dollars of such wages in the case of a taxpayer filing as a head of household, and three hundred thousand dollars of such wages in the case of a taxpayer filing a joint return, to the extent included in federal adjusted gross income and allowed under of this chapter.