N.Y. TAX Law § 637

§ 637. Computation of separate tax on the ordinary income portion of\nlump sum distributions received by nonresident or part-year resident\nindividuals, estates and trusts. (a) General. The tax imposed under\nsection six hundred three for any taxable year, with respect to the\nordinary income portion of a lump sum distribution received by a\nnonresident or part-year resident individual, estate or trust shall be\napplicable to the ordinary income portion of a lump sum distribution\nwholly or partly derived from or connected with New York sources, and\nthe amount of such tax shall be computed in the same manner as that set\nforth in section six hundred twenty-four, except that if the lump sum\ndistribution was partly derived from or connected with New York sources,\nthe total taxable amount and the ordinary income portion of the lump sum\ndistribution referred to in such section shall be determined by\napportionment and allocation, pursuant to regulations promulgated by the\nstate tax commission.\n (b) Special rule for part-year residents. In the case of a part-year\nresident, the ordinary income portion of a lump sum distribution wholly\nor partly derived from or connected with New York sources shall be the\nsum of:\n (1) The ordinary income portion of a lump sum distribution for the\nperiod of residence, computed as if the taxable year for federal income\ntax purposes were limited to the period of residence.\n (2) The ordinary income portion of a lump sum distribution for the\nperiod of nonresidence, determined in accordance with subsection (a) of\nthis section, computed as if the taxable year for federal income tax\npurposes were limited to the period of nonresidence.\n