Senate Bill S2482

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

                                 2482--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 20, 2009
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend the tax law, in relation to limited liability company
  fees and business corporation franchise taxes for farms and commercial
  horse boarding operations

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

  Section  1.  Paragraph  3  of subsection (c) of section 658 of the tax
law, as amended by section 1 of part H-1 of chapter 57 of  the  laws  of
2009, is amended to read as follows:
  (3)  Filing  fees.  (A)  Every subchapter K limited liability company,
every limited liability company that is a disregarded entity for federal
income tax purposes, and every partnership which has any income  derived
from  New  York  sources,  determined  in accordance with the applicable
rules of section six hundred thirty-one of this article as in  the  case
of  a  nonresident  individual, shall, within thirty days after the last
day of the taxable year, make a payment of a filing fee.  SUCH  DEADLINE
SHALL  NOT APPLY TO FARMS OR COMMERCIAL HORSE BOARDING OPERATIONS, WHICH
SHALL, WITHIN ONE HUNDRED TWENTY DAYS AFTER THE LAST DAY OF THE  TAXABLE
YEAR,  MAKE PAYMENT OF A FILING FEE. The amount of the filing fee is the
amount set forth in subparagraph (B)  of  this  paragraph.  The  minimum
filing  fee  is  twenty-five  dollars for taxable years beginning in two
thousand eight and thereafter.  Limited  liability  companies  that  are
disregarded  entities  for federal income tax purposes must pay a filing
fee of twenty-five dollars for taxable years beginning on or after Janu-
ary first, two thousand eight.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07730-02-0

              

S. 2482--A                          2

  (B) The filing fee will be based on the New York source  gross  income
of  the  limited  liability  company or partnership for the taxable year
immediately preceding the taxable year for which the fee is due. If  the
limited  liability  company  or  partnership  does not have any New York
source gross income for the taxable year immediately preceding the taxa-
ble  year  for  which  the  fee is due, the limited liability company or
partnership shall pay the minimum filing fee. Partnerships,  other  than
limited  liability partnerships under article eight-B of the partnership
law and foreign limited  liability  partnerships,  with  less  than  one
million  dollars  in  New  York  source gross income are exempt from the
filing fee. New York source gross income is the sum of the partners'  or
members'  shares of federal gross income from the partnership or limited
liability company derived from  or  connected  with  New  York  sources,
determined  in  accordance  with  the  provisions of section six hundred
thirty-one of this article  as  if  those  provisions  and  any  related
provisions  expressly  referred to a computation of federal gross income
from New York  sources.  For  this  purpose,  federal  gross  income  is
computed  without  any  allowance  or  deduction for cost of goods sold,
EXCEPT THAT FOR COMPANIES ENGAGED PRIMARILY  IN  FARMING  OR  COMMERCIAL
HORSE  BOARDING,  FEDERAL GROSS INCOME SHALL BE BASED UPON NET INCOME AS
REPORTED FOR FEDERAL TAX PURPOSES.
  The amount of the filing fee for taxable years beginning on  or  after
January  first, two thousand eight will be determined in accordance with
the following table:

If the New York source gross income is:         The fee is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $50
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $500
more than $1,000,000 but not over $5,000,000    $1,500
more than $5,000,000 but not over $25,000,000   $3,000
Over $25,000,000                                $4,500

  (C) No credits provided by this article may be taken against  the  fee
imposed by this paragraph.
  (D)  Where  the  filing  fee is not timely paid, it shall be paid upon
notice and demand and shall be assessed, collected and paid in the  same
manner as taxes, and for those purposes any reference in this article to
tax imposed by this article shall be deemed also to refer to this filing
fee.
  S  2.  Subparagraph 4 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 2 of part AA-1 of chapter 57 of  the
laws of 2008, is amended to read as follows:
  (4)  Notwithstanding  subparagraphs one and two of this paragraph, for
taxable years beginning on or after January first, two  thousand  eight,
the amount prescribed by this paragraph for New York S corporations will
be determined in accordance with the following table:
If New York receipts are:                       The fixed dollar
                                                minimum tax is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $50
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $300
more than $1,000,000 but not over $5,000,000    $1,000

S. 2482--A                          3

more than $5,000,000 but not over $25,000,000   $3,000
Over $25,000,000                                $4,500
Otherwise  the amount prescribed by this paragraph will be determined in
accordance with the following table:
If New York receipts are:                       The fixed dollar
                                                minimum tax is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $75
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $500
more than $1,000,000 but not over $5,000,000    $1,500
more than $5,000,000 but not over $25,000,000   $3,500
Over $25,000,000                                $5,000
For purposes of this paragraph,  New  York  receipts  are  the  receipts
computed  in accordance with subparagraph two of paragraph (a) of subdi-
vision three of this section for  the  taxable  year,  EXCEPT  THAT  FOR
CORPORATIONS  ENGAGED PRIMARILY IN FARMING OR COMMERCIAL HORSE BOARDING,
THE TERM NEW YORK RECEIPTS SHALL REFER TO NET FARM  INCOME  AS  REPORTED
FOR FEDERAL TAX PURPOSES.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.