(a) Imposition of tax.
(1) A tax is hereby imposed for each taxable year ending on or after July first, nineteen hundred sixty-six and on or before December thirty-first, nineteen hundred seventy and for each taxable year beginning after December thirty-first, nineteen hundred ninety-nine, on the wages earned and net earnings from self-employment, within the city, of every nonresident individual, estate and trust which shall comprise:
(i) A tax at the rate of one-fourth of one per cent on all wages.
(ii) A tax at the rate of three-eighths of one per cent on all net earnings from self-employment.
(2) For each taxable year beginning on or after January first, nineteen hundred seventy-one and ending on or before December thirty-first, nineteen hundred ninety-nine, a tax is hereby imposed on the wages earned, and net earnings from self-employment, within the city, of every nonresident individual, estate and trust which shall comprise:
(i) A tax at the rate of forty-five hundredths of one per cent on all wages.
(ii) A tax at the rate of sixty-five hundredths of one per cent on all net earnings from self-employment.
(3) For each taxable year beginning in nineteen hundred seventy and ending in nineteen hundred seventy-one, two tentative taxes shall be computed, the first as provided in paragraph one of this subdivision and the second as provided in paragraph two of this subdivision, and the tax for each such year shall be the sum of that proportion of each tentative tax which the number of days in nineteen hundred seventy and the number of days in nineteen hundred seventy-one, respectively, bears to the number of days in the entire taxable year.
(4) For each taxable year beginning in nineteen hundred ninety-nine and ending in two thousand, two tentative taxes shall be computed, the first as provided in paragraph two of this subdivision and the second as provided in paragraph one of this subdivision, and the tax for each such year shall be the sum of that proportion of each tentative tax which the number of days in nineteen hundred ninety-nine and the number of days in two thousand, respectively, bears to the number of days in the entire taxable year.
(b) Exclusion.
(1) In computing the amount of wages and net earnings from self-employment taxable under subdivision (a) of this section, there shall be allowed an exclusion against the total of wages and net earnings from self-employment in accordance with the following table:
Total of wages and net earnings from self-employment | Exclusion allowable |
Not over $10,000 | $3,000 |
Over $10,000 but not over $20,000 | $2,000 |
Over $20,000 but not over $30,000 | $1,000 |
Over $30,000 | None |
(2) The exclusion allowable shall be applied pro rata against wages and net earnings from self-employment.
(3) For taxable periods of less than one year, the exclusion allowable shall be prorated pursuant to regulations of the commissioner.
(c) Limitation. In no event shall a taxpayer be subject to the tax under this chapter in an amount greater than such taxpayer would be required to pay if such taxpayer were a resident of the city and subject to a tax on personal income of residents of the city adopted by the city pursuant to authority granted by the general city law or the tax law.