senate Bill S7663

2011-2012 Legislative Session

Relates to the franchise on business corporations

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 18, 2012 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1295
Jun 12, 2012 referred to rules

Votes

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Co-Sponsors

S7663 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยงยง209 & 612, Tax L

S7663 - Bill Texts

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Relates to the franchise tax on business corporations.

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BILL NUMBER:S7663

TITLE OF BILL:

An act
to amend the tax law, in relation to the franchise tax on business
corporations

PURPOSE:

To eliminate all business taxes on manufacturers to encourage the
expansion of the manufacturing sector in New York.

SUMMARY OF PROVISIONS:

ELIMINATING TAXES ON MANUFACTURERS: Over a three year period, the
legislation would provide manufacturers throughout New York State
with $495 million in tax relief - phasing out the taxes they pay
under the State's Corporate Franchise Tax and Personal Income Tax.
The first phase will begin for tax years beginning on January 1, 2013.
This will save manufacturers $114 million in SFY 2012-13 and $495
million when fully phased in.

JUSTIFICATION:

This bill will help create thousands of new private sector
manufacturing jobs by delivering tax relief to existing New York
manufacturers and encourage new manufacturers to locate in New York.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This bill will save New York businesses $114 million this year.

EFFECTIVE DATE:

Effective immediately.

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

                                  7663

                            I N  S E N A T E

                              June 12, 2012
                               ___________

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

AN ACT to amend the tax law, in relation to the franchise tax  on  busi-
  ness corporations

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

  Section 1. Subdivision 1 of section 209 of the tax law, as amended  by
chapter 817 of the laws of 1987, is amended to read as follows:
  1.  For  the  privilege  of  exercising its corporate franchise, or of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an office in this state, for all or any part of each of  its  fiscal  or
calendar  years,  every  domestic  or foreign corporation, except corpo-
rations specified in subdivision four of this  section,  shall  annually
pay  a  franchise  tax, upon the basis of its entire net income base, or
upon such other basis as may be applicable as hereinafter provided,  for
such fiscal or calendar year or part thereof, on a report which shall be
filed, except as hereinafter provided, on or before the fifteenth day of
March  next succeeding the close of each such year, or, in the case of a
corporation which reports on the basis of a fiscal year, within two  and
one-half  months  after the close of such fiscal year, and shall be paid
as hereinafter provided.  PROVIDED HOWEVER, A MANUFACTURER AS DEFINED IN
SECTION TWO HUNDRED TEN OF THIS ARTICLE SHALL  NOT  BE  SUBJECT  TO  TAX
UNDER  THIS  ARTICLE  FOR  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN; IF THE  MANUFACTURER  HAS  ONE  HUNDRED  OR
FEWER  EMPLOYEES  AND LESS THAN ONE MILLION DOLLARS IN GROSS INCOME SUCH
MANUFACTURER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE FOR  TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; IF THE
MANUFACTURER  HAS  FIFTY  OR  FEWER EMPLOYEES AND LESS THAN FIVE HUNDRED
THOUSAND DOLLARS IN GROSS INCOME SUCH MANUFACTURER SHALL NOT BE  SUBJECT
TO  TAX UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
  S 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15921-03-2

S. 7663                             2

  (39) IN THE CASE OF A TAXPAYER WHO IS A PROPRIETOR OF, A  PARTNER  IN,
AN  S-CORPORATION  SHAREHOLDER OF, A LIMITED LIABILITY COMPANY MEMBER OF
OR A LIMITED LIABILITY COMPANY MEMBER OF, A BUSINESS THAT IS A  MANUFAC-
TURER,  AS  THE TERM IS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
SUBDIVISION  ONE  OF  SECTION  TWO  HUNDRED  TEN OF THIS ARTICLE, TO THE
EXTENT INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE  YEAR,  BUSINESS
INCOME  OR SHARE OF BUSINESS INCOME FROM SUCH MANUFACTURING BUSINESS FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
PROVIDED HOWEVER IF SUCH BUSINESS THAT IS A MANUFACTURER HAS ONE HUNDRED
OR FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN BUSINESS INCOME,
THIS PARAGRAPH SHALL BE APPLICABLE FOR TAXABLE  YEARS  BEGINNING  ON  OR
AFTER  JANUARY FIRST, TWO THOUSAND FOURTEEN, FURTHER PROVIDED HOWEVER IF
SUCH BUSINESS THAT IS A MANUFACTURER HAS FIFTY OR  FEWER  EMPLOYEES  AND
LESS  THAN  FIVE  HUNDRED THOUSAND DOLLARS IN BUSINESS INCOME THIS PARA-
GRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
  S 3.  This act shall take effect immediately.

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