NY State Senate Bill 2009-S8351

Archive: Last Bill Status - In Senate Committee Rules 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 25, 2010	referred to rules

2009-S8351 (ACTIVE) - Details

See Assembly Version of this Bill:: A11367
Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §1452, Tax L; amd §11-640, NYC Ad Cd
Versions Introduced in 2011-2012 Legislative Session:: S911

2009-S8351 (ACTIVE) - Summary

Relates to the Gramm-Leach-Bliley Act.

2009-S8351 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8351

TITLE OF BILL:
An act
to amend the tax law and the administrative code of the city of New
York, in relation to the federal Gramm-Leach-Bliley act

PURPOSE OR GENERAL IDEA OF BILL:
This bill extends for two additional
years the provisions of the New York State and New York City bank
taxes dealing with the taxation of commercial banks and the
transitional provisions concerning the enactment and implementation
of the Federal Gramm-Leach-Bliley Act (GLBA).

SUMMARY OF SPECIFIC PROVISIONS:
These provisions state, among other
things, that a corporation required to be taxable, or electing to be
taxable as a banking corporation under the transitional provisions
shall continue to he taxable as such for those taxable years in which
the corporation meets the definition of a banking corporation, or
satisfies the requirements allowing it to elect to be taxed as a
banking corporation.

JUSTIFICATION:
Starting in 2000, transitional provisions relating to
the Federal 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.
These transitional provisions were intended to provide banks and
securities firms with some certainty about their taxable status under
the New York, State and New York City taxes when the firms exercised
the expanded powers provided at the Federal level.

The provisions first enacted in 1985, which relate to the taxation of
commercial banks, have been effective in accomplishing their
legislative goals. They have been extended many times without change.
Therefore, it is appropriate to extend these provisions for an
additional two years.

Without the transitional provisions relating to the Federal GLBA,
businesses in the financial industry may encounter unexpected tax
consequences or uncertainties concerning their tax status, because,
in order to affiliate, the banking, securities and insurance
industries must do so under the umbrella of a financial holding
company. Since most financial holding companies are, by definition,
bank holding companies, securities firms making the financial holding
company election and their subsidiaries may unwittingly subject
themselves to liability under the bank tax. This sudden
reclassification of a company from a general business corporation
taxpayer to a bank tax taxpayer may cause considerable administrative
and compliance burdens. Companies whose financial subsidiaries expand

their activities may have a difficult time determining whether or not
they should be classified as a taxpayer under the bank tax. Moreover,
the ability of such companies to join
in the filing of a combined report is left open to question.
Thus, it is appropriate to extend the transitional relief for two
additional years.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
Immediately.

2009-S8351 (ACTIVE) - Bill Text download pdf

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

                                  8351

                            I N  S E N A T E

                              June 25, 2010
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law and the administrative code of the  city  of
  New York, in relation to the federal Gramm-Leach-Bliley act

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

  Section 1. Paragraph 1 of subsection (m) of section 1452  of  the  tax
law, as amended by chapter 24 of the laws of 2010, is amended to read as
follows:
  (1) Notwithstanding anything to the contrary contained in this section
other  than  subsection  (n)  of this section, a corporation that was in
existence before January first, two thousand ten and was subject to  tax
under article nine-A of this chapter for its last taxable year beginning
before  January  first,  two  thousand ten, shall continue to be taxable
under such article for all taxable years beginning on or  after  January
first,  two  thousand ten and before January first, two thousand eleven.
The preceding sentence shall not apply to any taxable year during  which
such  corporation  is  a banking corporation described in paragraphs one
through  eight  of  subsection  (a)  of  this  section.  Notwithstanding
anything to the contrary contained in this section other than subsection
(n)  of  this  section, a banking corporation or corporation that was in
existence before January first, two thousand ten and was subject to  tax
under  this  article  for its last taxable year beginning before January
first, two thousand ten, shall continue to be taxable under this article
for all taxable years beginning on or after January first, two  thousand
ten  and before January first, two thousand eleven [or in which] ONLY IF
THE CORPORATION IS A BANKING CORPORATION AS DEFINED IN SUBSECTION (A) OF
THIS SECTION OR the corporation satisfies the requirements for a  corpo-
ration to elect to be taxable under this article. Provided further, that
nothing  in  this  subsection  shall prohibit a corporation that elected
pursuant to subsection (d) of this section to be taxable  under  article
nine-A  of  this  chapter from revoking that election in accordance with
such subsection (d).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD17589-02-0

S. 8351                             2

  For purposes of this paragraph, a corporation shall be  considered  to
be  subject  to  tax  under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven  of  this
chapter  for  such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if  such  corpo-
ration was not a taxpayer but was properly included in a combined return
filed  pursuant  to  subsection  (f)  or (g) of section fourteen hundred
sixty-two of this article for such taxable year. A corporation that  was
in  existence before January first, two thousand ten but first becomes a
taxpayer in a taxable year beginning on  or  after  January  first,  two
thousand  ten  and  before  January first, two thousand eleven, shall be
considered for purposes of this paragraph to have been  subject  to  tax
under article nine-A of this chapter for its last taxable year beginning
before  January  first,  two thousand ten if such corporation would have
been subject to tax under such article for such taxable year if  it  had
been  a  taxpayer  during  such  taxable year. A corporation that was in
existence before January first, two thousand ten  but  first  becomes  a
taxpayer  in  a  taxable  year  beginning on or after January first, two
thousand ten and before January first, two  thousand  eleven,  shall  be
considered  for  purposes  of this paragraph to have been subject to tax
under this article for its last taxable year  beginning  before  January
first,  two  thousand ten if such corporation would have been subject to
tax under this article for such taxable year if it had been  a  taxpayer
during such taxable year.
  S  2. Paragraph 1 of subdivision (l) of section 11-640 of the adminis-
trative code of the city of New York, as amended by chapter  24  of  the
laws of 2010, is amended to read as follows:
  (1) Notwithstanding anything to the contrary contained in this section
other  than  subdivision  (m) of this section, a corporation that was in
existence before January first, two thousand ten and was subject to  tax
under subchapter two of this chapter for its last taxable year beginning
before  January  first,  two  thousand ten, shall continue to be taxable
under such subchapter for all taxable years beginning on or after  Janu-
ary first, two thousand ten and before January first, two thousand elev-
en.  The  preceding  sentence shall not apply to any taxable year during
which such corporation is a banking corporation described in  paragraphs
one  through  eight of subdivision (a) of this section.  Notwithstanding
anything to the contrary contained in this section other  than  subdivi-
sion  (m) of this section, a banking corporation or corporation that was
in existence before January first, two thousand ten and was  subject  to
tax  under  this  subchapter  for its last taxable year beginning before
January first, two thousand ten, shall continue to be taxable under this
subchapter for all taxable years beginning on or  after  January  first,
two  thousand  ten  and before January first, two thousand eleven [or in
which] ONLY IF THE CORPORATION IS A BANKING CORPORATION  AS  DEFINED  IN
SUBSECTION (A) OF THIS SECTION OR the corporation satisfies the require-
ments  for  a  corporation to elect to be taxable under this subchapter.
Provided further, that nothing in  this  subdivision  shall  prohibit  a
corporation  that elected pursuant to subdivision (d) of this section to
be taxable under subchapter two  of  this  chapter  from  revoking  that
election  in  accordance  with  subdivision  (d)  of  this  section. For
purposes of this paragraph, a corporation  shall  be  considered  to  be
subject  to  tax under subchapter two of this chapter for a taxable year
if such corporation was not a taxpayer but was properly  included  in  a
combined  report filed pursuant to subdivision four of section 11-605 of

S. 8351                             3

this chapter for such taxable year and a corporation shall be considered
to be subject to tax under this subchapter for a taxable  year  if  such
corporation  was  not a taxpayer but was properly included in a combined
report  filed  pursuant  to  subdivision (f) or (g) of section 11-646 of
this part for such taxable year. A corporation  that  was  in  existence
before January first, two thousand ten but first becomes a taxpayer in a
taxable  year  beginning on or after January first, two thousand ten and
before January first, two  thousand  eleven,  shall  be  considered  for
purposes  of this paragraph to have been subject to tax under subchapter
two of this chapter for its last taxable year beginning  before  January
first,  two  thousand ten if such corporation would have been subject to
tax under such subchapter for such taxable year if it had been a taxpay-
er during such taxable year. A corporation that was in existence  before
January  first, two thousand ten but first becomes a taxpayer in a taxa-
ble year beginning on or after  January  first,  two  thousand  ten  and
before  January  first,  two  thousand  eleven,  shall be considered for
purposes of this paragraph to  have  been  subject  to  tax  under  this
subchapter for its last taxable year beginning before January first, two
thousand  ten  if  such corporation would have been subject to tax under
this subchapter for such taxable year if it had been a  taxpayer  during
such taxable year.
  S 3. This act shall take effect immediately.

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Senate Bill S8351

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8351 (ACTIVE) - Details

2009-S8351 (ACTIVE) - Summary

2009-S8351 (ACTIVE) - Sponsor Memo

2009-S8351 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

2009-S8351 (ACTIVE) - Details

2009-S8351 (ACTIVE) - Summary

2009-S8351 (ACTIVE) - Sponsor Memo

2009-S8351 (ACTIVE) - Bill Text download pdf

Comments