NY State Senate Bill 2009-S7094

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 19, 2010	recommitted to finance
Apr 14, 2010	advanced to third reading
Apr 13, 2010	2nd report cal.
Apr 12, 2010	1st report cal.350
Apr 05, 2010	print number 7094a
Apr 05, 2010	amend and recommit to finance
Mar 18, 2010	committee discharged and committed to finance
Mar 11, 2010	referred to investigations and government operations

Votes

- Apr 12, 2010 - Finance Committee Vote
  S7094
  
  27
  
  Aye
  
  0
  
  Nay
  
  6
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: Apr 12, 2010
      
      aye (27)
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espada
      
      Farley
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      Larkin
      
      Leibell
      
      Maziarz
      
      Montgomery
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Robach
      
      Saland
      
      Seward
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      aye wr (6)
      
      Duane
      
      Hannon
      
      LaValle
      
      Marcellino
      
      Nozzolio
      
      Padavan

Bill Amendments

Original

A (Active)

2009-S7094 - Details

See Assembly Version of this Bill:: A10238
Current Committee:: Senate Finance
Law Section:: Taxation
Laws Affected:: Amd §51, Chap 298 of 1985; amd §110, Chap 817 of 1987; amd §68, Chap 525 of 1988

2009-S7094 - Summary

Extends transitional provisions of law relating to the extension of the bank tax.

2009-S7094 - Sponsor Memo

                                 BILL NUMBER:  S7094

 TITLE OF BILL :  An act to amend chapter 298 of the laws of 1985,
amending the tax law relating to the franchise tax on banking
corporations imposed by the tax law, authorized to be imposed by any
city having a population of one million or more by chapter 772 of the
laws of 1966 and imposed by the administrative code of the city of New
York and relating to other provisions of the tax law, chapter 883 of
the laws of 1975 and the administrative code of the city of New York
which relates to such franchise tax, to amend chapter 817 of the laws
of 1987, amending the tax law and the environmental conservation law,
constituting the business tax reform and rate reduction act of 1987,
and to amend chapter 525 of the laws of 1988, amending the tax law and
the administrative code of the city of New York relating to the
imposition of taxes in the city of New York, in relation to the
effectiveness of certain provisions of such chapters


 PURPOSE OF BILL :
To extend for one year the transitional provisions of the relating to
the bank tax.

 SUMMARY OF PROVISIONS :
The bill would extend the transitional provisions in the State and
city bank taxes relating to the bank tax for one year to taxable years
beginning before January 1, 2011.

 JUSTIFICATION :
The bill would extend the provisions concerning the New York State and
New York City taxation of commercial banks, which were added to the
bank tax in 1985, for one more year to taxable years beginning before
January 1, 2011.

Significant changes were made to the franchise tax on banking
corporations under the Tax Law and the New York City Administrative
Code in 1985. Many of those amendments, however, were made subject to
a sunset provision. That provision has been extended numerous times,
so that the amendments in question currently expire for taxable years
beginning on or after January 1, 2010.

Starting in 2000, transitional provisions relating to the GLBA, which
removed the prohibition against the affiliation of banks, securities
firms, and insurance companies, were added to both the Tax Law and the
New York City Administrative Code. The current GLBA transitional
provision, which is set forth in Tax Law section 1452(m}, expires in
2010.

The GLBA provisions were first enacted to provide banks and securities
firms with certainty about their taxable status under the State and
City taxes when the firms exercised the expanded powers authorized by
the Federal law while the possible consolidation of the bank tax and
the general corporation tax was studied. The initial study did not
result in any legislation, and the transitional provisions have been
extended for ten years. But the present system of taxation, which
treats banks and securities firms differently, is outdated. These
businesses are now often affiliated as part of a single large
financial organization. In addition, banks and securities firms today
are competing against each other more and more. Separate systems of
taxation also encourage tax planning strategies that result in
substantially different tax liabilities for businesses conducting the
same or comparable activities.

Recognizing these inherent problems, the Department of Taxation and
Finance has undertaken a project to eliminate the separate tax on
banking corporations, and reform the current taxation of general
business corporations. The goal of the project is structure a tax that
treats general business corporations and financial institutions in the
same manner under a tax system that promotes the principles of equity,
economic efficiency, simplicity, ease of compliance and
administration, reliability and stability, and economic
competitiveness. As part of this project, the Department of Taxation
and Finance is consulting with, and receiving input from, the New York
general business, securities broker-dealer, and banking communities.
The project is expected to be completed during 2010. To facilitate the
transition to this unified tax system and eliminate any uncertainty
about tax status in the interim, this additional extension of the bank
tax provisions is warranted.

 LEGISLATIVE HISTORY :
Transitional provisions have been extended for ten years.

 FISCAL IMPLICATIONS :
This bill preserves current Financial Plan revenue.

 EFFECTIVE DATE :
This bill would take effect immediately.

2009-S7094 - Bill Text download pdf

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

                                  7094

                            I N  S E N A T E

                             March 11, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN  ACT  to  amend chapter 298 of the laws of 1985, amending the tax law
  relating to the franchise tax on banking corporations imposed  by  the
  tax  law,  authorized to be imposed by any city having a population of
  one million or more by chapter 772 of the laws of 1966 and imposed  by
  the  administrative code of the city of New York and relating to other
  provisions of the tax law, chapter 883 of the laws  of  1975  and  the
  administrative  code  of  the  city  of New York which relates to such
  franchise tax, to amend chapter 817 of the laws of 1987, amending  the
  tax law and the environmental conservation law, constituting the busi-
  ness  tax  reform and rate reduction act of 1987, and to amend chapter
  525 of the laws of 1988, amending the tax law and  the  administrative
  code  of  the  city of New York relating to the imposition of taxes in
  the city of New York, in relation  to  the  effectiveness  of  certain
  provisions of such chapters

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

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one million or more by chapter 772 of the laws of 1966  and  imposed  by
the  administrative  code  of the city of New York and relating to other
provisions of the tax law, chapter 883 of  the  laws  of  1975  and  the
administrative  code of the city of New York which relates to such fran-
chise tax, as amended by section 1 of part H of chapter 60 of  the  laws
of 2007, is amended to read as follows:
  S  51. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 1985, except that:
  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, [2010] 2011;
  (b) sections nine, twelve,  the  amendment  made  to  paragraph  9  of
subsection  (a)  of  section  1452  of  the tax law by section thirteen,
sections fifteen, sixteen,  eighteen,  nineteen,  twenty,  twenty-three,
twenty-seven,  thirty  and thirty-two, the amendment made to paragraph 9
of subdivision (a) of section 11-640 of the administrative code  of  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16415-01-0

S. 7094                             2

city  of New York by section thirty-three, sections thirty-five, thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations other than savings banks and savings and loan  associations
for taxable years beginning on or after January 1, [2010] 2011;
  (c)   sections  twenty-one,  twenty-two,  twenty-four,  forty-one  and
forty-two shall not apply to corporations other than savings  banks  and
savings  and  loan  associations for taxable years beginning on or after
January 1, [2010] 2011, provided, however, that the provisions  of  such
sections which relate to the alternative minimum tax measured by taxable
assets shall continue to apply to all taxpayers for taxable years begin-
ning on or after January 1, [2010] 2011;
  (d)  the amendment to the section heading and the opening paragraph of
section 11-643.3 of the administrative code of the city of New York made
by section forty-three  shall  not  apply  to  corporations  other  than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, [2010] 2011 with respect to those provisions
of  such  section  11-643.3  which  relate  to the basic tax measured by
entire net income; and
  (e) section twenty-eight, and the addition of new section 11-643.5  of
the  administrative  code of the city of New York made by section forty-
four shall not apply  to  corporations  other  than  savings  banks  and
savings  and  loan  associations for taxable years beginning on or after
January 1, [2010] 2011, provided, however, that the provisions  of  such
sections  which  relate  to  the  alternative  minimum taxes measured by
assets, issued capital stock and one hundred twenty-five  dollars  shall
continue  to  apply  to  all taxpayers for taxable years beginning on or
after January 1, [2010] 2011.
  S 2. Subdivision (f) of section 110 of chapter  817  of  the  laws  of
1987,  amending  the  tax  law  and  the environmental conservation law,
constituting the business tax reform and rate reduction act of 1987,  as
amended  by  section  2  of part H of chapter 60 of the laws of 2007, is
amended to read as follows:
  (f) The provisions of section one hundred four of this act shall apply
to taxable years beginning after December 31, 1986, and shall not  apply
to  corporations  other  than savings banks and savings and loan associ-
ations for taxable years beginning on or after January 1,  [2010]  2011,
provided,  however,  that the provisions of such section which relate to
the alternative minimum tax measured by taxable assets shall continue to
apply to all taxpayers for taxable years beginning on or  after  January
1, [2010] 2011.
  S 3. Subdivision (d) of section 68 of chapter 525 of the laws of 1988,
amending the tax law and the administrative code of the city of New York
relating  to the imposition of taxes in the city of New York, as amended
by section 3 of part H of chapter 60 of the laws of 2007, is amended  to
read as follows:
  (d)  The  provisions  of  section forty-six of this act shall apply to
taxable years beginning after December 31, 1986, and shall not apply  to
corporations  other than savings banks and savings and loan associations
for taxable  years  beginning  on  or  after  January  1,  [2010]  2011,
provided,  however,  that the provisions of such section which relate to
the alternative minimum tax measured by taxable assets shall continue to
apply to all taxpayers for taxable years beginning on or  after  January
1, [2010] 2011;
  S 4. This act shall take effect immediately.

2009-S7094A (ACTIVE) - Details

See Assembly Version of this Bill:: A10238
Current Committee:: Senate Finance
Law Section:: Taxation
Laws Affected:: Amd §51, Chap 298 of 1985; amd §110, Chap 817 of 1987; amd §68, Chap 525 of 1988

2009-S7094A (ACTIVE) - Summary

Extends transitional provisions of law relating to the extension of the bank tax.

2009-S7094A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7094A

 TITLE OF BILL :
An act to amend chapter 298 of the laws of 1985, amending the tax law
relating to the franchise tax on banking corporations imposed by the
tax law, authorized to be imposed by any city having a population of
one million or more by chapter 772 of the laws of 1966 and imposed by
the administrative code of the city of New York and relating to other
provisions of the tax law, chapter 883 of the laws of 1975 and the
administrative code of the city of New York which relates to such
franchise tax, to amend chapter 817 of the laws of 1987, amending the
tax law and the environmental conservation law, constituting the
business tax reform and rate reduction act of 1987, and to amend
chapter 525 of the laws of 1988, amending the tax law and the
administrative code of the city of New York relating to the imposition
of taxes in the city of New York, in relation to the effectiveness of
certain provisions of such chapters


 PURPOSE OF BILL :
To extend for one year the transitional provisions of the relating to
the bank tax.

 SUMMARY OF PROVISIONS :
The bill would extend the transitional provisions in the State and
city bank taxes relating to the bank tax for one year to taxable years

beginning before January 1, 2011.

 JUSTIFICATION :
The bill would extend the provisions concerning the New York State and
New York City taxation of commercial banks, which were added to the
bank tax in 1985, for one more year to taxable years beginning before
January 1, 2011.

Significant changes were made to the franchise tax on banking
corporations under the Tax Law and the New York City Administrative
Code in 1985. Many of those amendments, however, were made subject to
a sunset provision. That provision has been extended numerous times,
so that the amendments in question currently expire for taxable years
beginning on or after January 1, 2010.

Starting in 2000, transitional provisions relating to the GLBA, which
removed the prohibition against the affiliation of banks, securities
firms, and insurance companies, were added to both the Tax Law and the
New York City Administrative Code. The current GLBA transitional
provision, which is set forth in Tax Law section 1452(m), expires in
2010.

The GLBA provisions were first enacted to provide banks and securities
firms with certainty about their taxable status under the State and
City taxes when the firms exercised the expanded powers authorized by
the Federal law while the possible consolidation of the bank tax and
the general corporation tax was studied. The initial study did not
result in any legislation, and the transitional provisions have been
extended for ten years. But the present system of taxation, which
treats banks and securities firms differently, is outdated. These
businesses are now often affiliated as part of a single large
financial organization. In addition, banks and securities firms today
are competing against each other more and more. Separate systems of
taxation also encourage tax planning strategies that result in
substantially different tax liabilities for businesses conducting the
same or comparable activities.

Recognizing these inherent problems, the Department of Taxation and
Finance has undertaken a project to eliminate the separate tax on
banking corporations, and reform the current taxation of general
business corporations. The goal of the project is structure a tax that
treats general business corporations and financial institutions in the
same manner under a tax system that promotes the principles of equity,
economic efficiency, simplicity, ease of compliance and
administration, reliability and stability, and economic
competitiveness. As part of this project, the Department of Taxation
and Finance is consulting with, and receiving input from, the New York
general business, securities broker-dealer, and banking communities.
The project is expected to be completed during 2010. To facilitate the
transition to this unified tax system and eliminate any uncertainty
about tax status in the interim, this additional extension of the bank
tax provisions is warranted.

 LEGISLATIVE HISTORY :
Transitional provisions have been extended for ten years.

 FISCAL IMPLICATIONS :
This bill preserves current Financial Plan revenue.

 EFFECTIVE DATE :
This bill would take effect immediately.

2009-S7094A (ACTIVE) - Bill Text download pdf

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

                                 7094--A

                            I N  S E N A T E

                             March 11, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations -- committee discharged and said bill committed
  to the Committee on Finance --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend chapter 298 of the laws of 1985, amending the tax law
  relating to the franchise tax on banking corporations imposed  by  the
  tax  law,  authorized to be imposed by any city having a population of
  one million or more by chapter 772 of the laws of 1966 and imposed  by
  the  administrative code of the city of New York and relating to other
  provisions of the tax law, chapter 883 of the laws  of  1975  and  the
  administrative  code  of  the  city  of New York which relates to such
  franchise tax, to amend chapter 817 of the laws of 1987, amending  the
  tax law and the environmental conservation law, constituting the busi-
  ness  tax  reform and rate reduction act of 1987, and to amend chapter
  525 of the laws of 1988, amending the tax law and  the  administrative
  code  of  the  city of New York relating to the imposition of taxes in
  the city of New York, in relation  to  the  effectiveness  of  certain
  provisions of such chapters

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

  Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
tax law relating to the franchise tax on banking corporations imposed by
the tax law, authorized to be imposed by any city having a population of
one million or more by chapter 772 of the laws of 1966  and  imposed  by
the  administrative  code  of the city of New York and relating to other
provisions of the tax law, chapter 883 of  the  laws  of  1975  and  the
administrative  code of the city of New York which relates to such fran-
chise tax, as amended by section 1 of part H of chapter 60 of  the  laws
of 2007, is amended to read as follows:
  S  51. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 1985, except that:
  (a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, [2010] 2011;

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

                                                           LBD16415-02-0

S. 7094--A                          2

  (b) sections nine, twelve,  the  amendment  made  to  paragraph  9  of
subsection  (a)  of  section  1452  of  the tax law by section thirteen,
sections fifteen, sixteen,  eighteen,  nineteen,  twenty,  twenty-three,
twenty-seven,  thirty  and thirty-two, the amendment made to paragraph 9
of  subdivision  (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five,  thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations  other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, [2010] 2011;
  (c)  sections  twenty-one,  twenty-two,  twenty-four,  forty-one   and
forty-two  shall  not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to the alternative minimum tax measured by taxable
assets shall continue to apply to all taxpayers for taxable years begin-
ning on or after January 1, [2010] 2011;
  (d) the amendment to the section heading and the opening paragraph  of
section 11-643.3 of the administrative code of the city of New York made
by  section  forty-three  shall  not  apply  to  corporations other than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, [2010] 2011 with respect to those provisions
of such section 11-643.3 which relate  to  the  basic  tax  measured  by
entire net income; and
  (e)  section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by  section  forty-
four  shall  not  apply  to  corporations  other  than savings banks and
savings and loan associations for taxable years beginning  on  or  after
January  1,  [2010] 2011, provided, however, that the provisions of such
sections which relate to  the  alternative  minimum  taxes  measured  by
assets,  issued  capital stock and one hundred twenty-five dollars shall
continue to apply to all taxpayers for taxable  years  beginning  on  or
after January 1, [2010] 2011.
  S  2.  Subdivisions  (d)  and (f) of section 110 of chapter 817 of the
laws of 1987, amending the tax law and  the  environmental  conservation
law,  constituting  the  business  tax  reform and rate reduction act of
1987, as amended by section 2 of part H of chapter 60  of  the  laws  of
2007, are amended to read as follows:
  (d)  The  provisions of section sixty-seven of this act except insofar
as it amends paragraph 10 of subsection (b) of section 1453 of  the  tax
law, seventy-one and seventy-four shall apply to taxable years beginning
after  December  31, 1986, provided, however, that new paragraphs 11 and
12 of subsection (b) of section 1453 of the tax law as added by  section
sixty-seven  of  this act, the amendments made by section seventy-one of
this act, and new subsection (i) of section 1453 of the tax law as added
by section seventy-four of this act shall not  apply  to  taxable  years
beginning on or after January 1, [2010] 2011;
  (f) The provisions of section one hundred four of this act shall apply
to  taxable years beginning after December 31, 1986, and shall not apply
to corporations other than savings banks and savings  and  loan  associ-
ations  for  taxable years beginning on or after January 1, [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011.
  S 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
of 1988, amending the tax law and the administrative code of the city of

S. 7094--A                          3

New York relating to the imposition of taxes in the city of New York, as
amended by section 3 of part H of chapter 60 of the laws  of  2007,  are
amended to read as follows:
  (c)  The  provisions  of sections one, thirty-one, thirty-two, thirty-
three, thirty-six, thirty-seven, forty through  forty-five,  forty-seven
and forty-eight of this act shall apply to taxable years beginning after
December  31,  1986,  provided,  however,  that  the  amendments made by
sections thirty-six and forty-one of this act, and new  subdivision  (i)
of  section 11-641 of the administrative code of the city of New York as
added by section forty-four of this act shall not apply to taxable years
beginning on or after January 1, [2010] 2011;
  (d) The provisions of section forty-six of this  act  shall  apply  to
taxable  years beginning after December 31, 1986, and shall not apply to
corporations other than savings banks and savings and loan  associations
for  taxable  years  beginning  on  or  after  January  1,  [2010] 2011,
provided, however, that the provisions of such section which  relate  to
the alternative minimum tax measured by taxable assets shall continue to
apply  to  all taxpayers for taxable years beginning on or after January
1, [2010] 2011;
  S 4. This act shall take effect immediately.

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Senate Bill S7094

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Apr 12, 2010 - Finance Committee Vote

Finance Committee Vote: Apr 12, 2010

Bill Amendments

2009-S7094 - Details

2009-S7094 - Summary

2009-S7094 - Sponsor Memo

2009-S7094 - Bill Text download pdf

2009-S7094A (ACTIVE) - Details

2009-S7094A (ACTIVE) - Summary

2009-S7094A (ACTIVE) - Sponsor Memo

2009-S7094A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7094

Share this bill

Sponsored By

Craig M. Johnson

Archive: Last Bill Status - In Senate Committee Finance Committee

Bill Amendments

2009-S7094 - Details

2009-S7094 - Summary

2009-S7094 - Sponsor Memo

2009-S7094 - Bill Text download pdf

2009-S7094A (ACTIVE) - Details

2009-S7094A (ACTIVE) - Summary

2009-S7094A (ACTIVE) - Sponsor Memo

2009-S7094A (ACTIVE) - Bill Text download pdf

Comments