Senate Bill S4890

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

                                  4890

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 28, 2011
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 and the administrative code of the  city  of
  New York, in relation to the taxation of certain banking corporations

  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  section  4 of part J of chapter 61 of the laws of
2011, 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 eleven and was subject to
tax under article nine-A of this  chapter  for  its  last  taxable  year
beginning  before  January first, two thousand eleven, shall continue to
be taxable under such article for all  taxable  years  beginning  on  or
after  January  first, two thousand eleven and before January first, two
thousand thirteen. 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 corpo-
ration that was in existence before January first, two  thousand  eleven
and  was  subject  to  tax  under this article for its last taxable year
beginning before January first, two thousand eleven, shall  continue  to
be  taxable  under  this  article  for all taxable years beginning on or
after January first, two thousand eleven and before January  first,  two
thousand  thirteen  [or  in  which] ONLY IF THE CORPORATION IS A BANKING
CORPORATION AS DEFINED IN SUBSECTION (A) OF THIS SECTION OR  the  corpo-
ration satisfies the requirements for a corporation to elect to be taxa-
ble   under  this  article.  Provided  further,  that  nothing  in  this

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11144-01-1
              

S. 4890                             2

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).
  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 eleven but first becomes
a taxpayer in a taxable year beginning on or after  January  first,  two
thousand  eleven  and before January first, two thousand thirteen, 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 eleven 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 eleven but first becomes  a
taxpayer  in  a  taxable  year  beginning on or after January first, two
thousand eleven and before January first, two thousand  thirteen,  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 eleven if such corporation would have  been  subject
to tax under this article for such taxable year if it had been a taxpay-
er 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 section 5 of part  J
of chapter 61 of the laws of 2011, 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 eleven and was  subject  to
tax  under  subchapter  two  of  this  chapter for its last taxable year
beginning before January first, two thousand eleven, shall  continue  to
be  taxable  under such subchapter for all taxable years beginning on or
after January first, two thousand eleven and before January  first,  two
thousand thirteen. 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 subdivision (m) of this section, a banking  corporation  or  corpo-
ration  that  was in existence before January first, two thousand eleven
and was subject to tax under this subchapter for its last  taxable  year
beginning  before  January first, two thousand eleven, shall continue to
be taxable under this subchapter for all taxable years beginning  on  or
after  January  first, two thousand eleven and before January first, two
thousand thirteen [or in which] ONLY IF THE  CORPORATION  IS  A  BANKING
CORPORATION  AS DEFINED IN SUBDIVISION (A) OF THIS SECTION OR the corpo-
ration satisfies the requirements for a corporation to elect to be taxa-
ble under this subchapter. Provided further, that nothing in this subdi-
vision 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

S. 4890                             3

section. For purposes of this paragraph, a corporation shall be  consid-
ered  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 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  eleven  but  first
becomes  a  taxpayer  in  a  taxable  year beginning on or after January
first, two thousand eleven and before January first, two thousand  thir-
teen,  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 eleven if such  corpo-
ration  would  have  been  subject to tax under such subchapter 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
eleven but first becomes a taxpayer in a taxable year  beginning  on  or
after  January  first, two thousand eleven and before January first, two
thousand thirteen, 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 eleven 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.