Section 197-B. Payments of estimated tax

1. (a) For taxable years beginning
  on  or  after  January  first,  nineteen  hundred  seventy-seven,  every
  taxpayer subject to  tax  under  section  one  hundred  eighty-two,  one
  hundred  eighty-two-a,  former  section  one  hundred  eighty-two-b, one
  hundred  eighty-four,  one   hundred   eighty-six-a   or   one   hundred
  eighty-six-e  of  this article, must pay in each year an amount equal to
  (i) twenty-five percent of the tax imposed under each of  such  sections
  for  the preceding taxable year if the preceding year's tax exceeded one
  thousand dollars but was equal to or  less  than  one  hundred  thousand
  dollars,  or  (ii)  forty  percent of the tax imposed under any of these
  sections for the preceding taxable year  if  the  preceding  year's  tax
  exceeded one hundred thousand dollars. If the preceding year's tax under
  section one hundred eighty-four, one hundred eighty-six-a or one hundred
  eighty-six-e  of  this  article  exceeded  one  thousand dollars and the
  taxpayer is subject to the tax surcharge imposed by section one  hundred
  eighty-four-a or one hundred eighty-six-c of this article, respectively,
  the  taxpayer  must  also  pay  in each such year an amount equal to (i)
  twenty-five percent of the tax surcharge imposed under such section  for
  the  preceding  taxable  year  if  the preceding year's tax exceeded one
  thousand dollars but was equal to or  less  than  one  hundred  thousand
  dollars,  or  (ii) forty percent of the tax surcharge imposed under that
  section for the preceding taxable  year  if  the  preceding  year's  tax
  exceeded  one  hundred  thousand  dollars. The amount or amounts must be
  paid with the return or report required to be filed with respect to  the
  tax  or  tax  surcharge  for  the  preceding  taxable  year  or  with an
  application for extension of the time for filing the return or report.
    (b) Notwithstanding  any  other  provision  of  this  article  to  the
  contrary,  any taxpayer required under this subdivision to pay an amount
  equal to twenty-five percent of its tax for the taxable year  ending  on
  December  thirty-first,  nineteen hundred seventy-six shall compute such
  amount as if its tax for such taxable year were determined on the  basis
  of  its  gross earnings, dividends paid, gross income or gross operating
  income, as the case may be,  for  either  the  preceding  twelve  months
  ending on such date or for the period from the date of its incorporation
  under  the  laws  of  this state or the date it commenced carrying on or
  doing business in New  York  to  and  including  December  thirty-first,
  nineteen   hundred   seventy-six,  if  such  date  of  incorporation  or
  commencement of the carrying on or doing business was within the  twelve
  months  immediately  preceding  December  thirty-first, nineteen hundred
  seventy-six.
    2. The estimated tax or estimated tax surcharge for each taxable  year
  with respect to which a declaration of estimated tax or a declaration of
  estimated  tax  surcharge,  respectively,  is required to be filed under
  this article shall be paid, in the case of a taxpayer which  reports  on
  the basis of a calendar year, as follows:
    (a)  If  the  declaration  is  filed  on or before June fifteenth, the
  estimated tax or estimated tax surcharge shown thereon,  after  applying
  thereto  the  amount, if any, paid during the same taxable year pursuant
  to subdivision one of  this  section,  shall  be  paid  in  three  equal
  installments.  One of such installments shall be paid at the time of the
  filing of the declaration, one shall be paid on the following  September
  fifteenth, and one on the following December fifteenth.
    (b)  If  the  declaration  is filed after June fifteenth and not after
  September fifteenth of such taxable year, and  is  not  required  to  be
  filed  on  or  before  June fifteenth of such year, the estimated tax or
  estimated tax  surcharge  shown  on  such  declaration,  after  applying
  thereto  the  amount, if any, paid during the same taxable year pursuant
  to subdivision  one  of  this  section,  shall  be  paid  in  two  equal

  installments.  One of such installments shall be paid at the time of the
  filing of the declaration  and  one  shall  be  paid  on  the  following
  December fifteenth.
    (c)  If  the  declaration  is  filed after September fifteenth of such
  taxable year, and is not required to be filed  on  or  before  September
  fifteenth  of  such  year,  the estimated tax or estimated tax surcharge
  shown on such declaration, after applying thereto the  amount,  if  any,
  paid in respect of such year pursuant to subdivision one of this section
  shall be paid in full at the time of the filing of the declaration.
    (d) If the declaration is filed after the time prescribed therefor, or
  after  the  expiration of any extension of time therefor, paragraphs (b)
  and (c) of this subdivision shall not apply and there shall be  paid  at
  the  time  of such filing all installments of estimated tax or estimated
  tax surcharge  payable  at  or  before  such  time,  and  the  remaining
  installments  shall be paid at the times at which, and in the amounts in
  which, they would have been payable if the declaration  had  been  filed
  when due.
    3.  If  any  amendment  of  a  declaration  is  filed,  the  remaining
  installments, if any, shall be ratably increased or  decreased  (as  the
  case may be) to reflect any increase or decrease in the estimated tax or
  estimated  tax  surcharge  by  reason  of  such  amendment,  and  if any
  amendment is made after September fifteenth of  the  taxable  year,  any
  increase  in  the  estimated  tax  or  estimated tax surcharge by reason
  thereof shall be paid at the time of making such amendment.
    4. Any amount paid pursuant to subdivision one shall be applied  as  a
  first  installment against the estimated tax or estimated tax surcharge,
  respectively, of  the  taxpayer  for  the  taxable  year  shown  on  the
  declaration  required  to  be  filed  pursuant  to  section  one hundred
  ninety-seven-a of this chapter, or if no declaration is  filed  pursuant
  to  such  section,  any  such  amount  shall  be considered a payment on
  account of the tax or tax  surcharge  shown  on  the  return  or  report
  required to be filed by the taxpayer for such taxable year.
    5. Notwithstanding the provisions of section one thousand eighty-eight
  of  this  chapter  or  section  sixteen  of the state finance law, if an
  amount paid pursuant to subdivision one of this section exceeds the  tax
  or  tax  surcharge, respectively, shown on the return or report required
  to be filed by the taxpayer for  the  taxable  year  during  which  such
  amount  was  paid,  interest  shall be allowed and paid on the amount by
  which the amount so paid pursuant to subdivision one exceeds such tax or
  tax surcharge, at the  overpayment  rate  set  by  the  commissioner  of
  taxation and finance pursuant to subdivision (e) of section one thousand
  ninety-six  or, if no rate is set, at the rate of six percent per annum,
  from the date of  payment  of  the  amount  so  paid  pursuant  to  such
  subdivision  one  to  the fifteenth day of the third month following the
  close of the taxable year, provided, however, that no interest shall  be
  allowed  or  paid  under  this subdivision if the amount thereof is less
  than one dollar.
    6. As used in this section, "the preceding year's tax" means  the  tax
  imposed  upon  the  taxpayer  by  section one hundred eighty-two, former
  section one hundred eighty-two-b, one hundred eighty-four,  one  hundred
  eighty-six-a  or  one  hundred  eighty-six-e  of  this  article  for the
  preceding taxable year.
    7. This section shall apply to a taxable period of  less  than  twelve
  months in accordance with regulations of the tax commission.
    8.  The  commissioner  of  taxation and finance may grant a reasonable
  extension of time, not to exceed six months,  for  the  payment  of  any
  installment  of  estimated  tax  or  estimated  tax  surcharge  required
  pursuant to this section,  on  such  terms  and  conditions  as  he  may

  require,  including  the  furnishing  of a bond or other security by the
  taxpayer in an amount not exceeding  twice  the  amount  for  which  any
  extension  of  time  for  payment  is  granted,  provided, however, that
  interest  at  the  underpayment rate set by the commissioner pursuant to
  subdivision (e) of section one thousand ninety-six or,  if  no  rate  is
  set,  at  the  rate  of  six  percent  per  annum  for the period of the
  extension, shall be charged and collected on the amount  for  which  any
  extension of time for payment is granted under this subdivision.
    9.  A  taxpayer  may  elect to pay any installment of estimated tax or
  estimated tax surcharge prior to the date prescribed in this section for
  payment thereof.
    10. The provisions of this section shall apply to taxable  periods  of
  twelve  months  other  than  a  calendar year by the substitution of the
  months of such fiscal year for the  corresponding  months  specified  in
  such provisions.
    11.  Any  amount  paid pursuant to paragraph four of subsection (c) of
  section six hundred fifty-eight of this chapter on behalf of a  taxpayer
  subject to tax under this article shall be applied against the estimated
  tax  of  the  taxpayer  for  the  taxable  year shown on the declaration
  required to be filed pursuant to section one hundred  ninety-seven-a  of
  this  article,  or  if no declaration is filed pursuant to such section,
  any such amount shall be considered a payment  on  account  of  the  tax
  shown  on  the  report  required  to  be  filed by the taxpayer for such
  taxable year.