|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jun 14, 2012||
referred to ways and means
delivered to assembly
ordered to third reading cal.1259
committee discharged and committed to rules
|Jun 01, 2012||
referred to investigations and government operations
senate Bill S7542
Relates to the imposition of the personal income tax upon foreign partnerships
Archive: Last Bill Status - Passed Senate
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
view actions (6)
Jun 14, 2012 - floor VoteS75424216floor42Aye16Nay0Absent4Excused0Abstained
show floor vote details
Floor Vote: Jun 14, 2012aye (42)
Jun 14, 2012 - Rules committee VoteS7542152committee15Aye2Nay7Aye with Reservations0Absent1Excused0Abstained
- show floor vote details
S7542 - Bill Details
- Current Committee:
- Law Section:
- Tax Law
- Laws Affected:
- Amd §601, Tax L
S7542 - Bill Texts
Relates to the imposition of the personal income tax upon foreign limited partnerships.
view sponsor memo
TITLE OF BILL:
to amend the tax law, in relation to the imposition of the personal
income tax upon foreign partnerships
PURPOSE OF THE BILL:
Under current law, foreign partnerships and out-of-state limited
liability companies taxed as a partnership are discouraged from doing
business with New York fulfillment service providers because of the
potentially adverse tax consequences they may face. The concern is
that an LLC or partnership that would not otherwise be subject to New
York State taxes will become subject to taxation in New York because
of its purchase of services from a New York fulfillment service
provider. The purpose of this bill is to grant the same exemptions to
partnerships and LLCs that are taxed as partnerships that are granted
to corporations under Article 9-A of the Tax law.
SUMMARY OF PROVISIONS:
Section 1. Amends subsection (f) of section 601 of the tax law by
designating subdivision (1) and adding a new subdivision (2) to
provide that foreign partnerships and non-resident partners of
foreign partnerships will not have nexus with the state because they
use fulfillment services of an entity or person of the state.
Section 2. Provides that this act shall take effect immediately and
shall apply to taxable years beginning on or after January 1, 2013.
The purpose of this bill is to provide a level playing field for
partnerships and LLCs with the same advantages currently granted to
9-A corporations. This legislation assures out-of-state businesses
that their use of New York fulfillment services will not result in
adverse tax consequences, regardless of whether the business is
formed as a corporation, partnership, or LLC. This encourages
out-of-state businesses to do business in New York and demonstrates
the commitment that New York is truly "Open for Business."
PRIOR LEGISLATIVE HISTORY:
This is a new proposal.
BUDGET IMPLICATIONS AND LOCAL IMPACT:
The bill would take effect immediately.
view full text
S T A T E O F N E W Y O R K ________________________________________________________________________ 7542 I N S E N A T E June 1, 2012 ___________ Introduced by Sen. O'MARA -- 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 the imposition of the personal income tax upon foreign partnerships THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (f) of section 601 of the tax law, as amended by chapter 248 of the laws of 1997, is amended to read as follows: (f) Partners and partnerships. (1) A partnership as such shall not be subject to tax under this article. Persons carrying on business as part- ners shall be liable for tax under this article only in their separate or individual capacities. As used in this article, the term "partner- ship" shall include, unless a different meaning is clearly required, a subchapter K limited liability company. The term "subchapter K limited liability company" shall mean a limited liability company classified as a partnership for federal income tax purposes. The term "limited liabil- ity company" means a domestic limited liability company or a foreign limited liability company, as defined in section one hundred two of the limited liability company law, a limited liability investment company formed pursuant to section five hundred seven of the banking law, or a limited liability trust company formed pursuant to section one hundred two-a of the banking law. (2) A FOREIGN PARTNERSHIP SHALL NOT BE DEEMED TO HAVE NEXUS IN THIS STATE, AND THE NON-RESIDENT PARTNERS OF SUCH FOREIGN PARTNERSHIP SHALL NOT BE DEEMED TO HAVE NEW YORK-SOURCE INCOME, BY REASON OF SUCH FOREIGN PARTNERSHIP USING FULFILLMENT SERVICES OF A PERSON OR ENTITY AND OWNING PROPERTY STORED ON THE PREMISES OF SUCH PERSON OR ENTITY IN CONJUNCTION WITH SUCH SERVICES. THE TERM "FULFILLMENT SERVICES" SHALL MEAN ANY OF THE FOLLOWING SERVICES PERFORMED BY AN ENTITY ON ITS PREMISES ON BEHALF OF A PURCHASER: (I) THE ACCEPTANCE OF ORDERS ELECTRONICALLY OR BY MAIL, TELEPHONE, TELEFAX OR INTERNET; (II) RESPONSES TO CONSUMER CORRESPOND- ENCE OR INQUIRIES ELECTRONICALLY OR BY MAIL, TELEPHONE, TELEFAX OR INTERNET; (III) BILLING AND COLLECTION ACTIVITIES; OR (IV) THE SHIPMENT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15966-03-2 S. 7542 2 OF ORDERS FROM AN INVENTORY OF PRODUCTS OFFERED FOR SALE BY THE PURCHAS- ER. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.
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