Assembly Bill A11375

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  11375

                          I N  A S S E M B L Y

                              June 7, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Farrell) --
  read once and referred to the Committee on Ways and Means

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation to the general corporation tax

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 11-604 of the administrative code of  the  city  of
New York is amended by adding a new subdivision 22 to read as follows:
  22. RETAILER CREDIT. (A) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY  FIRST, TWO THOUSAND TEN, IN ADDITION TO ANY OTHER CREDIT ALLOWED BY
THIS SECTION, AN ELIGIBLE TAXPAYER THAT ENGAGES IN RETAIL ACTIVITY,  AND
WHICH IS SUBJECT TO TAX UNDER THIS SUBCHAPTER, SHALL BE ALLOWED A CREDIT
AGAINST  SUCH TAX, PURSUANT TO THIS PARAGRAPH, TO BE COMPUTED AS HEREIN-
AFTER PROVIDED. IF THE TAX COMPUTED UNDER PARAGRAPH E OF SUBDIVISION ONE
OF THIS SECTION:
  (1) IS THREE THOUSAND FOUR HUNDRED DOLLARS OR LESS, A CREDIT SHALL  BE
ALLOWED FOR THE ENTIRE AMOUNT OF SUCH TAX;
  (2)  EXCEEDS THREE THOUSAND FOUR HUNDRED DOLLARS BUT IS LESS THAN FIVE
THOUSAND FOUR HUNDRED DOLLARS, A CREDIT SHALL BE ALLOWED IN  THE  AMOUNT
DETERMINED  BY MULTIPLYING SUCH TAX BY A FRACTION THE NUMERATOR OF WHICH
IS FIVE THOUSAND FOUR HUNDRED DOLLARS MINUS THE AMOUNT OF SUCH  TAX  AND
THE DENOMINATOR OF WHICH IS TWO THOUSAND DOLLARS; OR
  (3)  IS FIVE THOUSAND FOUR HUNDRED DOLLARS OR MORE, NO CREDIT SHALL BE
ALLOWED.
  (B) AS USED IN THIS SUBDIVISION, THE FOLLOWING TERMS  SHALL  HAVE  THE
FOLLOWING MEANINGS:
  (1)  "ELIGIBLE  TAXPAYER" MEANS, WITH RESPECT TO ANY TAXABLE YEAR, ANY
TAXPAYER SUBJECT TO TAX UNDER THIS SUBCHAPTER AND FOR WHICH AN  ELECTION
IS  IN EFFECT PURSUANT TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY OF
THE TAX LAW FOR SUCH YEAR.
  (2) "RETAIL ACTIVITY" MEANS ANY ACTIVITY WHICH CONSISTS  PREDOMINANTLY
OF  THE  SALE,  OTHER  THAN  THROUGH THE MAIL OR BY THE TELEPHONE, OR BY
WIRELESS COMMUNICATION,  OR  BY  MEANS  OF  THE  INTERNET,  OF  TANGIBLE
PERSONAL  PROPERTY  TO ANY PERSON FOR ANY PURPOSE UNRELATED TO THE TRADE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD17588-01-0

A. 11375                            2

OR BUSINESS OF SUCH PERSON, OR FOOD  AND  FOOD  PRODUCTS  OFFERED  TO  A
CONSUMER  IN  AN  ESTABLISHMENT  OR SECTION OF AN ESTABLISHMENT THAT ARE
INTENDED FOR OFF-PREMISES CONSUMPTION,  OR  THE  PHYSICAL  CARE  OF  THE
PERSONAL  PROPERTY  OF  ANY PERSON UNRELATED TO THE TRADE OR BUSINESS OF
SUCH PERSON.
  (C) IF SEPARATE CORPORATIONS SUBJECT TO TAX UNDER THIS SUBCHAPTER  AND
FOR WHICH AN ELECTION IS IN EFFECT PURSUANT TO SUBSECTION (A) OF SECTION
SIX  HUNDRED SIXTY OF THE TAX LAW HAVE SUBSTANTIALLY THE SAME SHAREHOLD-
ERS, EACH OF SUCH SHAREHOLDERS HAS SUBSTANTIALLY THE  SAME  INTEREST  IN
EACH OF SUCH CORPORATIONS, AND SUCH CORPORATIONS ARE ENGAGED IN SUBSTAN-
TIALLY THE SAME BUSINESS OR BUSINESSES OR IN SUBSTANTIALLY RELATED BUSI-
NESSES, ALL OF SUCH CORPORATIONS SHALL BE TREATED AS ONE CORPORATION FOR
PURPOSES  OF  THIS  SUBDIVISION.  THE  PRECEDING  SENTENCE  SHALL NOT BE
CONSTRUED TO LIMIT OR AFFECT THE MEANING OR  APPLICATION  OF  ANY  OTHER
PROVISION OF THIS CHAPTER.
  (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, THE CREDIT
ALLOWABLE  UNDER  THIS SUBDIVISION SHALL BE TAKEN PRIOR TO THE DEDUCTION
OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
  (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, THE APPLI-
CATION OF THIS SUBDIVISION SHALL NOT  CHANGE  THE  BASIS  ON  WHICH  THE
ELIGIBLE TAXPAYER'S TAX IS COMPUTED UNDER PARAGRAPH E OF SUBDIVISION ONE
OF THIS SECTION.
  S  2.  This act shall take effect immediately; provided, however, that
the addition, amendment and/or repeal of any rule or  regulation  neces-
sary for the implementation of this act on its effective date is author-
ized to be made and completed on or before such date.