Section 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.
    * NB Applies to amounts distributed after 1986
    * NB The  reference  in subsection (a) to section 603 (formerly 601-C)
  shall be applicable to taxable years beginning after 1986.
    * (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.
    * NB Applies to amounts distributed after 1986
    * (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.
    * NB Applies to amounts distributed after 1986
    * (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.
    * NB Applies to amounts distributed after 1986