Senate Bill S4172

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

                                  4172

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 22, 2011
                               ___________

Introduced  by  Sen.  ALESI  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to phasing  out  the  franchise
  tax on business corporations that are manufacturers

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

  Section 1. Section 208 of the tax law is amended  by  adding  two  new
subdivisions 20 and 21 to read as follows:
  20.    THE  TERM "MANUFACTURER" SHALL MEAN A TAXPAYER WHICH DURING THE
TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY  MANU-
FACTURING,  PROCESSING,  ASSEMBLING, REFINING, MINING, EXTRACTING, FARM-
ING, AGRICULTURE, HORTICULTURE, FLORICULTURE, VITICULTURE OR  COMMERCIAL
FISHING.  MOREOVER,  FOR  PURPOSES  OF  COMPUTING  THE CAPITAL BASE IN A
COMBINED REPORT, THE GROUP SHALL  BE  CONSIDERED  A  "MANUFACTURER"  FOR
PURPOSES  OF  THIS ARTICLE ONLY IF THE COMBINED GROUP DURING THE TAXABLE
YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH  IN THIS  SUBDI-
VISION, OR ANY COMBINATION THEREOF.
  21.    THE  TERM  "PRINCIPALLY  ENGAGED" SHALL INCLUDE A TAXPAYER OR A
COMBINED GROUP 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  MANUFACTURING.
IN  COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTERCORPORATE RECEIPTS
SHALL BE ELIMINATED.
  S 2. Section 209 of the tax law is amended by adding a new subdivision
11 to read as follows:
  11. (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO
THOUSAND  TWELVE,  A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
FIFTY PERCENT OF ALL TAXES IMPOSED BY THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06163-01-1

S. 4172                             2
              

  (B) FOR ANY TAXABLE YEAR BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND THIRTEEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
ALL TAXES IMPOSED BY THIS ARTICLE.
  S 3. This act shall take effect immediately and shall apply to taxable
years  commencing  on  or after January 1, 2011; provided, however, that
the commissioner of taxation and finance is authorized to promulgate any
and all rules and regulations and take any other measures necessary  for
the timely implementation of this act on its effective date on or before
such date.