S T A T E O F N E W Y O R K
________________________________________________________________________
7318
2013-2014 Regular Sessions
I N A S S E M B L Y
May 10, 2013
___________
Introduced by M. of A. RUSSELL -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to reducing farm-based taxes
and fees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraphs (A) and (B) of paragraph 3 of subsection (c)
of section 658 of the tax law, subparagraph (A) as amended by section 18
of part U of chapter 61 of the laws of 2011 and subparagraph (B) as
amended by section 1 of part H-1 of chapter 57 of the laws of 2009, are
amended to read as follows:
(A) Every subchapter K limited liability company, every limited
liability company that is a disregarded entity for federal income tax
purposes, and every partnership which has any income derived from New
York sources, determined in accordance with the applicable rules of
section six hundred thirty-one of this article as in the case of a
nonresident individual, shall, within sixty days after the last day of
the taxable year, make a payment of a filing fee. SUCH DEADLINE SHALL
NOT APPLY TO FARMS, COMMERCIAL HORSE BOARDING OPERATIONS OR AGRICULTURAL
SERVICE PROVIDERS SUBJECT TO THE FEE, WHICH SHALL, WITHIN ONE HUNDRED
TWENTY DAYS AFTER THE LAST DAY OF THE TAXABLE YEAR, MAKE PAYMENT OF ANY
REQUIRED FILING FEE. The amount of the filing fee is the amount set
forth in subparagraph (B) of this paragraph. The minimum filing fee is
twenty-five dollars for taxable years beginning in two thousand eight
and thereafter. Limited liability companies that are disregarded enti-
ties for federal income tax purposes must pay a filing fee of twenty-
five dollars for taxable years beginning on or after January first, two
thousand eight.
(B) The filing fee will be based on the New York source gross income
of the limited liability company or partnership for the taxable year
immediately preceding the taxable year for which the fee is due. If the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10576-01-3
A. 7318 2
limited liability company or partnership does not have any New York
source gross income for the taxable year immediately preceding the taxa-
ble year for which the fee is due, the limited liability company or
partnership shall pay the minimum filing fee. Partnerships, other than
limited liability partnerships under article eight-B of the partnership
law and foreign limited liability partnerships, with less than one
million dollars in New York source gross income are exempt from the
filing fee. New York source gross income is the sum of the partners' or
members' shares of federal gross income from the partnership or limited
liability company derived from or connected with New York sources,
determined in accordance with the provisions of section six hundred
thirty-one of this article as if those provisions and any related
provisions expressly referred to a computation of federal gross income
from New York sources. For this purpose, federal gross income is
computed without any allowance or deduction for cost of goods sold,
EXCEPT THAT FOR COMPANIES ENGAGED PRIMARILY IN FARMING, COMMERCIAL HORSE
BOARDING, COMMERCIAL EQUINE OPERATIONS OR AGRICULTURAL SERVICE PROVID-
ERS, THE TERM FEDERAL GROSS INCOME SHALL MEAN NET INCOME AS REPORTED FOR
FEDERAL TAX PURPOSES.
The amount of the filing fee for taxable years beginning on or after
January first, two thousand eight will be determined in accordance with
the following table:
If the New York source gross income is: The fee is:
not more than $100,000 $25
more than $100,000 but not over $250,000 $50
more than $250,000 but not over $500,000 $175
more than $500,000 but not over $1,000,000 $500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
S 2. Subparagraph 4 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 2 of part AA-1 of chapter 57 of the
laws of 2008, is amended to read as follows:
(4) Notwithstanding subparagraphs one and two of this paragraph, for
taxable years beginning on or after January first, two thousand eight,
the amount prescribed by this paragraph for New York S corporations will
be determined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 50
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 300
more than $1,000,000 but not over $5,000,000 $1,000
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
Otherwise the amount prescribed by this paragraph will be determined in
accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 75
more than $250,000 but not over $500,000 $ 175
A. 7318 3
more than $500,000 but not over $1,000,000 $ 500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,500
Over $25,000,000 $5,000
For purposes of this paragraph, New York receipts are the receipts
computed in accordance with subparagraph two of paragraph (a) of subdi-
vision three of this section for the taxable year, EXCEPT THAT FOR
CORPORATIONS ENGAGED PRIMARILY IN FARMING, COMMERCIAL HORSE BOARDING,
COMMERCIAL EQUINE OPERATIONS OR PROVIDING AGRICULTURAL SERVICES, THE
TERM NEW YORK RECEIPTS SHALL REFER TO NET FARM INCOME AS REPORTED FOR
FEDERAL TAX PURPOSES.
S 3. This act shall take effect immediately.