S T A T E O F N E W Y O R K
________________________________________________________________________
1208
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. KOLB, TEDISCO, OAKS, REILICH, CORWIN, CASTELLI --
Multi-Sponsored by -- M. of A. AMEDORE, BARCLAY, BURLING, BUTLER,
CONTE, CROUCH, DUPREY, FINCH, HAWLEY, JORDAN, P. LOPEZ, J. MILLER,
MOLINARO, RAIA, SALADINO, SAYWARD, TOBACCO -- read once and referred
to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to net income base
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The opening paragraph and subparagraphs (iv) and (vi) of
paragraph (a) of subdivision 1 of section 210 of the tax law, as amended
by section 2 of part N of chapter 60 of the laws of 2007, are amended to
read as follows:
Entire net income base. For taxable years beginning before July first,
nineteen hundred ninety-nine, the amount prescribed by this paragraph
shall be computed at the rate of nine percent of the taxpayer's entire
net income base. For taxable years beginning after June thirtieth, nine-
teen hundred ninety-nine and before July first, two thousand, the amount
prescribed by this paragraph shall be computed at the rate of eight and
one-half percent of the taxpayer's entire net income base. For taxable
years beginning after June thirtieth, two thousand and before July
first, two thousand one, the amount prescribed by this paragraph shall
be computed at the rate of eight percent of the taxpayer's entire net
income base. For taxable years beginning after June thirtieth, two thou-
sand one and before January first, two thousand seven, the amount
prescribed by this paragraph shall be computed at the rate of seven and
one-half percent of the taxpayer's entire net income base. For taxable
years beginning [on or] after January first, two thousand seven AND
BEFORE JANUARY FIRST, TWO THOUSAND TWELVE, the amount prescribed by this
paragraph shall be computed at the rate of seven and one-tenth percent
of the taxpayer's entire net income base. FOR TAXABLE YEARS BEGINNING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05145-01-1
A. 1208 2
ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE, THE AMOUNT PRESCRIBED BY
THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF SIX AND EIGHTY-FIVE ONE
HUNDREDTH PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The taxpay-
er's entire net income base shall mean the portion of the taxpayer's
entire net income allocated within the state as hereinafter provided,
subject to any modification required by paragraphs (d) and (e) of subdi-
vision three of this section. However, in the case of a small business
taxpayer, as defined in paragraph (f) of this subdivision, the amount
prescribed by this paragraph shall be computed pursuant to subparagraph
(iv) of this paragraph and in the case of a manufacturer, as defined in
subparagraph (vi) of this paragraph, the amount prescribed by this para-
graph shall be computed pursuant to subparagraph (vi) of this paragraph.
(iv) for taxable years beginning [on or] after January first, two
thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND TWELVE, if the
entire net income base is not more than two hundred ninety thousand
dollars the amount shall be six and one-half percent of the entire net
income base; if the entire net income base is more than two hundred
ninety thousand dollars but not over three hundred ninety thousand
dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess of
the entire net income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the entire net income base over
three hundred fifty thousand dollars but not over three hundred ninety
thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWELVE, IF THE ENTIRE NET INCOME IS NOT OVER THREE
HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE SIX PERCENT OF THE
ENTIRE NET INCOME BASE;
(vi) for taxable years beginning [on or] after January thirty-first,
two thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND TWELVE, the
amount prescribed by this paragraph for a taxpayer which is a qualified
New York manufacturer, shall be computed at the rate of six and one-half
(6.5) percent of the taxpayer's entire net income base. FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE, THE
AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF SIX
PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The term "manufactur-
er" shall mean a taxpayer which during the taxable year is principally
engaged in the production of goods by manufacturing, processing, assem-
bling, refining, mining, extracting, farming, agriculture, horticulture,
floriculture, viticulture or commercial fishing. However, the gener-
ation and distribution of electricity, the distribution of natural gas,
and the production of steam associated with the generation of electric-
ity shall not be qualifying activities for a manufacturer under this
subparagraph. Moreover, the combined group shall be considered a
"manufacturer" for purposes of this subparagraph only if the combined
group during the taxable year is principally engaged in the activities
set forth in this paragraph, or any combination thereof. A taxpayer or a
combined group shall be "principally engaged" in activities described
above if, during the taxable year, more than fifty percent of the gross
receipts of the taxpayer or combined group, respectively, are derived
from receipts from the sale of goods produced by such activities. In
computing a combined group's gross receipts, intercorporate receipts
shall be eliminated. A "qualified New York manufacturer" is a manufac-
turer which has property in New York which is described in clause (A) of
subparagraph (i) of paragraph (b) of subdivision twelve of this section
and either (I) the adjusted basis of such property for federal income
A. 1208 3
tax purposes at the close of the taxable year is at least one million
dollars or (II) all of its real and personal property is located in New
York. In addition, a "qualified New York manufacturer" means a taxpayer
which is defined as a qualified emerging technology company under para-
graph (c) of subdivision one of section thirty-one hundred two-e of the
public authorities law regardless of the ten million dollar limitation
expressed in subparagraph one of such paragraph (c).
S 2. This act shall take effect immediately.