S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
February 5, 2013
Introduced by Sen. O'MARA -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
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
11 to read as follows:
11. (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FOURTEEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
FIFTY PERCENT OF ALL TAXES IMPOSED BY THIS ARTICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 3562 2
(B) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, 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, 2013; 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