Section 699. Transition provisions

For  purposes  of  implementation of
  changes in tax rate and in amounts of taxable  income  subject  to  each
  rate applicable to any taxable year (whether or not such taxable year is
  a   taxable  year  of  twelve  months)  beginning  in  nineteen  hundred
  ninety-five and nineteen hundred ninety-six, under subsections (a),  (b)
  or (c) of section six hundred one, the tax is imposed and determined for
  each such taxable year in accordance with the following provisions:
    (1)  Taxable years beginning in nineteen hundred ninety-six. Paragraph
  two of subsections (a), (b) and (c) of section six hundred one, relating
  to imposition of the income tax for taxable years beginning in  nineteen
  hundred ninety-six, establishes a new tax rate schedule effective on the
  first  day  of the taxpayer's taxable year, except that the highest rate
  of tax of seven percent shall not take effect until the first day of the
  fourth month of  the  taxpayer's  taxable  year  beginning  in  nineteen
  hundred  ninety-six.    For  purposes  of  implementation of the tax for
  taxable years beginning in nineteen hundred ninety-six, the highest rate
  of tax in each tax rate schedule shall be administered  for  the  entire
  taxable  year at the rate of 7.125 percent on New York taxable income in
  excess of (A)  twenty-six  thousand  dollars  in  the  case  of  married
  individuals  filing  joint  returns and surviving spouses, (B) seventeen
  thousand dollars in the case of heads of  households  and  (C)  thirteen
  thousand   dollars   in  the  case  of  unmarried  individuals,  married
  individuals filing separate returns and estates and trusts.
    (2) Taxable years beginning in nineteen hundred ninety-five. Paragraph
  three of subsections (a), (b)  and  (c)  of  section  six  hundred  one,
  relating  to imposition of the income tax for taxable years beginning in
  nineteen hundred  ninety-five,  establishes  a  new  tax  rate  schedule
  effective  on  the first day of the taxpayer's taxable year, except that
  the highest rate of tax of seven and one-half  percent  shall  not  take
  effect until the first day of the fourth month of the taxpayer's taxable
  year   beginning  in  nineteen  hundred  ninety-five.  For  purposes  of
  implementation of the tax, the highest rate of  tax  in  each  tax  rate
  schedule  shall  be administered for the entire taxable year at the rate
  of 7.59375  percent  on  New  York  taxable  income  (A)  in  excess  of
  twenty-five  thousand  dollars in the case of married individuals filing
  joint returns and surviving spouses, (B) in excess of nineteen  thousand
  dollars  in  the case of heads of households and (C) in excess of twelve
  thousand five hundred dollars in  the  case  of  unmarried  individuals,
  married individuals filing separate returns and estates and trusts.