§ 7-10 Payment of Tax.
RCNY § 7-10
(a)Every person subject to tax is required to pay the City Collector the tax imposed by the law, on or before the 20th day of the calendar month following the end of each tax period, as follows: The tax to be paid at such time shall be based on the base rent of such tax period and the rate of tax shall be the one which would be applicable if the base rent for such period were the same for each tax period during the tax year, except that the payment required to be made together with the final return or at the time that the final return should be filed shall be the amount by which the actual tax for the tax year exceeds the amounts previously paid for the tax year. Example 1: Under the terms of a lease entered into by A, a tenant, with B, his landlord, for a tax year beginning on or after June 1, 1985, A agrees to pay B an annual rent of $14,000, as follows: Tax Periods Base Rent June, July and August$2,000 September, October and November$3,000 December, January and February$4,000 March, April and May$5,000 TOTAL$14,000 Since the rent paid for the three months of June, July and August is $2,000, such amount is deemed to be the rent payable in each tax period during the tax year. Since the annualized rent payable on this basis ($2,000 × 4 = $8,000) is not in excess of $10,999, no tax is payable for the period; nevertheless a quarterly return must be filed for June, July and August since the annual rent exceeds $11,000 (see 19 RCNY § 7-07). Since the rent paid for the three months of September, October and November is $3,000 the rent payable on this basis for the year would be $12,000 ($3,000 × 4). The tax rate applicable would be 6 percent and the tax payable would be $180 (6% × $3,000). For the three months, December, January and February, the rate of tax applicable would also be 6 percent, and the tax payable would be $240 (6% × $4,000). In filing the final return, the total rental for the tax year to be shown on the return is $14,000. The rate of tax applicable thereto is 6 percent, and the tax payable thereon would be $840 (6% × $14,000). Since the tax previously paid is $420, the balance of the tax payable with the final return is $420 ($840 - $420). Where the final return shows that the amount of the tax paid for the tax year exceeds the actual tax for such year, the Commissioner of Finance will make the appropriate refund as promptly as possible, provided, however, that where the Commissioner of Finance has reason to believe that the final return is inaccurate, he may withhold the refund in whole or in part. The making of the refund pursuant to this paragraph will not prohibit the Commissioner of Finance from making a determination that additional tax is due or from pursuing any other method to recover the full amount of the actual tax due for the tax year. Where a tenant ceases to do business, the tax, as measured by his base rent for the prior part of the tax year shall be due immediately and he shall file a final return within twenty days after he ceases to do business. However, should he continue to pay rent for the taxable premises, he must file the normally required returns and a final return for the tax year, provided, however, that any such tax payment shall be applied in reduction of the tax payments required to be made with such returns or with the final return for such tax year. Example 2: B, a tenant of taxable premises, ceases to do business on November 1, 1963. B, however, continues to pay rent to May 31, 1964. B is required to file a quarterly return for the three months of June, July and August, 1963, and pay the tax due thereon, and a final return within twenty days for the months of September and October, 1963, on or before November 21, 1963. B is also required to file a return for the three months of September, October and November, 1963 and pay the tax due thereon less the tax previously paid for the months of September and October, 1963. He also is required to file a quarterly return for the months of December, January and February, and a final return for the tax year ending May 31, 1964. The tax may be paid by check, post office money order, express company money order, bank draft, or cash. Postage stamps will not be accepted in payment of the tax. If payment is made by check, money order or draft and a receipt is requested, a duplicate copy of the return must also be submitted, accompanied by return postage, and the duplicate copy will be receipted by the City Collector's cashier, indicating that payment has been made, and returned to the taxpayer. Cash payments will be accepted only at the borough offices of the Bureau of City Collections, by a cashier, before 3 p.m. Monday through Friday. Under no circumstances should cash be sent by mail. Where a cash payment is made at a borough office of the Bureau of City Collections, a duplicate copy of the return in addition to the original thereof must be submitted and the duplicate copy will be receipted by the cashier indicating that payment has been made.
(b)Electronic payment. Pursuant to 19 RCNY § 17-03, the Commissioner may authorize the electronic payment of any tax required to be paid by this section.
