Bill Summary: A06920

• Authorizes cities with populations of one million or more to impose an earnings tax on nonresidents at rates of 0.25% on wages and 0.375% on net self-employment earnings, with exclusions ranging from $1,000 to $3,000 depending on income level.

• Tax may only be imposed if the city also imposes a personal income tax on residents, and nonresident tax liability cannot exceed what a resident would pay under the city's resident income tax.

• Establishes employer withholding requirements beginning 45 days after the law becomes effective, with returns and payments due monthly to the city administrator or designated depository.

• Allows nonresidents who pay city earnings taxes to claim a real property tax credit against real property taxation and special ad valorem levies in the amount of taxes paid, with ability to transfer credits from tenants to property owners as rental payment substitutes.

• Creates administrative provisions for tax collection, assessment limitations of three years (six years for substantial income omissions), and judicial review procedures under Article 78 of the Civil Practice Law and Rules.