2015 New York Laws
TAX - Tax
Article 22 - PERSONAL INCOME TAX
Part 2 - (611 - 630-D*2) RESIDENTS
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
  lump sum distributions received by  resident  individuals,  estates  and
  trusts.  (a)  Amount  of  separate  tax. The amount of tax imposed under
  section six hundred three for any taxable  year,  with  respect  to  the
  ordinary  income  portion  of  a  lump  sum  distribution  received by a
  resident individual, estate or trust is an amount equal  to  five  times
  the  tax which would be imposed by subsection (c) of section six hundred
  one if the recipient of such lump sum distribution  were  an  individual
  referred  to  in such subsection and the New York taxable income were an
  amount equal to one-fifth of the excess of:
(1) the total taxable amount of the  lump  sum  distribution  for  the
  taxable year, over
(2) the minimum distribution allowance.
(b)  Minimum distribution allowance. For purposes of this section, the
  minimum  distribution  allowance  shall  be  that  which  is  calculated
  according  to  subparagraph  (C)  of  paragraph one of subsection (e) of
  section four hundred two of the internal revenue code.
(c) Multiple distributions and distributions of annuity contracts. For
  purposes of this section, the rules  concerning  multiple  distributions
  and  distributions of annuity contracts as specified by paragraph two of
  subsection (e) of section four hundred two of the internal revenue  code
  shall be applicable, except that references to "paragraph (1) (A)" shall
  be  deemed  to  be references to this section, and except that only lump
  sum distributions (or portions thereof)  and  distributions  of  annuity
  contracts  subject  to  tax  under  this  article shall be included, and
  except that references to the secretary shall be deemed to be references
  to the tax commission.
(d) Definitions and special rules. For purposes of this  section,  the
  following  provisions  shall  apply,  to  the  extent  applicable to the
  taxpayer's federal tax on lump sum distributions:  (1)  the  definitions
  and  special  rules  as specified in paragraph four of subsection (e) of
  section four hundred two of the  internal  revenue  code;  and  (2)  the
  special  rules  relating to (A) individuals who have attained the age of
  fifty before January first, nineteen hundred eighty-six and (B)  capital
  gains,  as  specified  in  paragraphs  three,  four,  five  and  six  of
  subsection (h) of section eleven hundred twenty-two of  the  tax  reform
  act  of nineteen hundred eighty-six as enacted by public law 99-514, but
  (i) in the event that paragraph three of such subsection is  applicable,
  clause (ii) of subparagraph (B) of such paragraph shall be applied using
  a  rate  of  five  and  four-tenths  percent, and (ii) in the event that
  paragraph five of such subsection is applicable, the  words  "five"  and
  "one-fifth" in subsection (a) of this section shall be read as "ten" and
  "one-tenth",  respectively,  and subsection (a) of this section shall be
  applied by using the rate of tax specified in subsection (f) of  section
  six  hundred  two  as  such  subsection  was in effect for taxable years
  beginning in nineteen hundred eighty-six.