NY State Senate Bill 2011-S911A

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 13, 2012	print number 911a
Jan 13, 2012	amend and recommit to investigations and government operations
Jan 04, 2012	referred to investigations and government operations
Jan 05, 2011	referred to investigations and government operations

Bill Amendments

2011-S911 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1452, Tax L; amd §11-640, NYC Ad Cd
Versions Introduced in 2009-2010 Legislative Session:: S8351

2011-S911 - Summary

Relates to the Gramm-Leach-Bliley Act.

2011-S911 - Sponsor Memo

                                BILL NUMBER:S911

TITLE OF BILL:
An act
to amend the tax law and the administrative code of the city of New
York, in relation to the federal Gramm-Leach-Bliley act

PURPOSE OR GENERAL IDEA OF BILL:
This bill extends for two additional
years the provisions of the New York State and New York City bank
taxes dealing with the taxation of commercial banks and the
transitional provisions concerning the enactment and implementation
of the Federal Gramm-Leach-Bliley Act (GLBA).

SUMMARY OF SPECIFIC PROVISIONS:
These provisions state, among other
things, that a corporation required to be taxable, or electing to be
taxable as a banking corporation under the transitional provisions
shall continue to he taxable as such for those taxable years in which
the corporation meets the definition of a banking corporation, or
satisfies the requirements allowing it to elect to be taxed as a
banking corporation.

JUSTIFICATION:
Starting in 2000, transitional provisions relating to
the Federal GLBA, which removed the prohibition against the

affiliation of banks, securities firms and insurance companies, were
added to both the Tax Law and the New York City Administrative Code.
These transitional provisions were intended to provide banks and
securities firms with some certainty about their taxable status under
the New York, State and New York City taxes when the firms exercised
the expanded powers provided at the Federal level.

The provisions first enacted in 1985, which relate to the taxation of
commercial banks, have been effective in accomplishing their
legislative goals. They have been extended many times without change.
Therefore, it is appropriate to extend these provisions for an
additional two years.

Without the transitional provisions relating to the Federal GLBA,
businesses in the financial industry may encounter unexpected tax
consequences or uncertainties concerning their tax status, because,
in order to affiliate, the banking, securities and insurance
industries must do so under the umbrella of a financial holding
company. Since most financial holding companies are, by definition,
bank holding companies, securities firms making the financial holding
company election and their subsidiaries may unwittingly subject
themselves to liability under the bank tax. This sudden
reclassification of a company from a general business corporation
taxpayer to a bank tax taxpayer may cause considerable administrative
and compliance burdens. Companies whose financial subsidiaries expand
their activities may have a difficult time determining whether or not
they should be classified as a taxpayer under the bank tax. Moreover,
the ability of such companies to join
in the filing of a combined report is left open to question.


Thus, it is appropriate to extend the transitional relief for two
additional years.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
Immediately.

2011-S911 - Bill Text download pdf

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

                                   911

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- 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 federal Gramm-Leach-Bliley act

  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 chapter 24 of the laws of 2010, 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 ten and was subject to  tax
under article nine-A of this chapter for its last taxable year beginning
before  January  first,  two  thousand ten, shall continue to be taxable
under such article for all taxable years beginning on or  after  January
first,  two  thousand ten and before January first, two thousand eleven.
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 corporation that was in
existence before January first, two thousand ten and was subject to  tax
under  this  article  for its last taxable year beginning before January
first, two thousand ten, shall continue to be taxable under this article
for all taxable years beginning on or after January first, two  thousand
ten  and before January first, two thousand eleven [or in which] ONLY IF
THE CORPORATION IS A BANKING CORPORATION AS DEFINED IN SUBSECTION (A) OF
THIS SECTION OR the corporation satisfies the requirements for a  corpo-
ration to elect to be taxable under this article. Provided further, that

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

                                                           LBD00715-01-1

S. 911                              2

nothing  in  this  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 ten but first becomes  a
taxpayer  in  a  taxable  year  beginning on or after January first, two
thousand ten and before January first, two  thousand  eleven,  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 ten 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 ten but first becomes a
taxpayer in a taxable year beginning on  or  after  January  first,  two
thousand  ten  and  before  January first, two thousand eleven, 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 ten if such corporation would have been  subject  to
tax  under  this article for such taxable year if it had been a taxpayer
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 chapter 24 of the
laws of 2010, 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 ten and was subject to tax
under subchapter two of this chapter for its last taxable year beginning
before January first, two thousand ten, shall  continue  to  be  taxable
under  such subchapter for all taxable years beginning on or after Janu-
ary first, two thousand ten and before January first, two thousand elev-
en. 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 subdivi-
sion (m) of this section, a banking corporation or corporation that  was
in  existence  before January first, two thousand ten and was subject to
tax under this subchapter for its last  taxable  year  beginning  before
January first, two thousand ten, shall continue to be taxable under this
subchapter  for  all  taxable years beginning on or after January first,
two thousand ten and before January first, two thousand  eleven  [or  in
which]  ONLY  IF  THE CORPORATION IS A BANKING CORPORATION AS DEFINED IN
SUBDIVISION (A)  OF  THIS  SECTION  OR  the  corporation  satisfies  the
requirements  for  a  corporation  to  elect  to  be  taxable under this
subchapter. Provided further, that nothing  in  this  subdivision  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  section.  For

S. 911                              3

purposes  of  this  paragraph,  a  corporation shall be considered 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 ten but first becomes a taxpayer in a
taxable year beginning on or after January first, two thousand  ten  and
before  January  first,  two  thousand  eleven,  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 ten if such corporation would have been  subject  to
tax under such subchapter for such taxable year if it had been a taxpay-
er  during such taxable year. A corporation that was in existence before
January first, two thousand ten but first becomes a taxpayer in a  taxa-
ble  year  beginning  on  or  after  January first, two thousand ten and
before January first, two  thousand  eleven,  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 ten 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.

2011-S911A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1452, Tax L; amd §11-640, NYC Ad Cd
Versions Introduced in 2009-2010 Legislative Session:: S8351

2011-S911A (ACTIVE) - Summary

Relates to the Gramm-Leach-Bliley Act.

2011-S911A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S911A

TITLE OF BILL:
An act
to amend the tax law and the administrative code of the city of New
York, in relation to the federal Gramm-Leach-Bliley act

PURPOSE OR GENERAL IDEA OF BILL:
This bill extends for two additional years the provisions of the New
York State and New York City bank taxes dealing with the taxation of
commercial banks and the transitional provisions concerning the
enactment and implementation of the Federal Gramm-Leach-Bliley Act
(GLBA).

SUMMARY OF SPECIFIC PROVISIONS:
These provisions state, among other things, that a corporation
required to be taxable, or electing to be taxable as a banking
corporation under the transitional provisions shall continue to he
taxable as such for those taxable years in which the corporation
meets the definition of a banking corporation, or satisfies the
requirements allowing it to elect to be taxed as a banking
corporation.

JUSTIFICATION:
Starting in 2000, transitional provisions relating to the Federal
GLBA, which removed the prohibition against the affiliation of banks,

securities firms and insurance companies, were added to both the Tax
Law and the New York City Administrative Code. These transitional
provisions were intended to provide banks and securities firms with
some certainty about their taxable status under the New York, State
and New York City taxes when the firms exercised the expanded powers
provided at the Federal level.

The provisions first enacted in 1985, which relate to the taxation of
commercial banks, have been effective in accomplishing their
legislative goals. They have been extended many times without change.
Therefore, it is appropriate to extend these provisions for an
additional two years.

Without the transitional provisions relating to the Federal GLBA,
businesses in the financial industry may encounter unexpected tax
consequences or uncertainties concerning their tax status, because,
in order to affiliate, the banking, securities and insurance
industries must do so under the umbrella of a financial holding
company. Since most financial holding companies are, by definition,
bank holding companies, securities firms making the financial holding
company election and their subsidiaries may unwittingly subject
themselves to liability under the bank tax. This sudden
reclassification of a company from a general business
corporation taxpayer to a bank tax taxpayer may cause
considerable administrative and compliance burdens. Companies whose
financial subsidiaries expand their activities may have a difficult
time determining whether or not they should be classified as a
taxpayer under the bank tax. Moreover, the ability of such companies
to join in the filing of a combined report is left open to question.


Thus, it is appropriate to extend the transitional relief for two
additional years.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
Immediately.

2011-S911A (ACTIVE) - Bill Text download pdf

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

                                 911--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to the federal Gramm-Leach-Bliley act

  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

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

                                                           LBD00715-02-2

S. 911--A                           2

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
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-

S. 911--A                           3

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
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.

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Senate Bill S911A

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

2011-S911 - Details

2011-S911 - Summary

2011-S911 - Sponsor Memo

2011-S911 - Bill Text download pdf

2011-S911A (ACTIVE) - Details

2011-S911A (ACTIVE) - Summary

2011-S911A (ACTIVE) - Sponsor Memo

2011-S911A (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2011-S911A

Senate Bill S911A

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

2011-S911 - Details

2011-S911 - Summary

2011-S911 - Sponsor Memo

2011-S911 - Bill Text download pdf

2011-S911A (ACTIVE) - Details

2011-S911A (ACTIVE) - Summary

2011-S911A (ACTIVE) - Sponsor Memo

2011-S911A (ACTIVE) - Bill Text download pdf

Comments