NY A02600

Authorizes cities with a population of one million or more to impose a 1% earnings tax on nonresidents' wages and self-employment income earned within the city, provided the city also imposes an income tax on residents.

Establishes an exclusion table for nonresidents: $3,000 exclusion on earnings not exceeding $10,000; $2,000 on earnings over $10,000 but not over $20,000; $1,000 on earnings over $20,000 but not over $30,000; and no exclusion for earnings exceeding $30,000.

Provides a dollar-for-dollar real property tax credit against city real estate taxes for nonresidents who pay the earnings tax, with the option for tenants to transfer credits to property owners in lieu of rent payments.

Creates an MTA infrastructure bank funded by net revenues from the nonresident earnings tax, authorized to issue taxable and non-taxable revenue bonds for system-wide capital improvements with biannual revenue distributions.

Repeals Chapter 5 of the Laws of 1999 and takes effect retroactively as of July 1, 1999, with tax administration transferred to the New York State Tax Department for taxable periods beginning January 1, 1976 and later.