S T A T E   O F   N E W   Y O R K
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                                 3342--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by M. of A. SCHIMMINGER, MAGNARELLI, MAGEE, BRINDISI, LUPAR-
  DO, TENNEY, ZEBROWSKI -- Multi-Sponsored  by  --  M.  of  A.  BARCLAY,
  CORWIN,  GIGLIO,  GOODELL,  HOOPER,  KOLB,  LAVINE,  OAKS,  PALMESANO,
  PEOPLES-STOKES, WEISENBERG -- read once and referred to the  Committee
  on Ways and Means -- recommitted to the Committee on Ways and Means in
  accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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
12 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06767-03-4
              

A. 3342--A                          2

  12.  (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT  FROM
FIFTY PERCENT OF ALL TAXES IMPOSED BY THIS ARTICLE.
  (B)  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN, 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, 2015; 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.