NY S00505

Repeals Chapter 5 of the Laws of 1999, which had previously ended the city earnings tax on nonresidents.

Authorizes any city with a population of one million or more to impose a tax on earnings of nonresidents, provided the city also imposes a personal income tax on residents.

Establishes tax rates on nonresident wages at 0.25% and net self-employment earnings at 0.375%, with exclusions ranging from $1,000 to $3,000 depending on total earnings.

Caps nonresident tax liability so it does not exceed what would be owed if the individual were a resident of the city subject to local income tax.

Takes effect immediately and is deemed effective retroactively to July 1, 1999, with the Commissioner of Taxation and Finance authorized to promulgate emergency rules for implementation.