S T A T E O F N E W Y O R K
________________________________________________________________________
5217
2015-2016 Regular Sessions
I N A S S E M B L Y
February 13, 2015
___________
Introduced by M. of A. KOLB, TEDISCO, BUTLER, OAKS, CORWIN, MONTESANO --
Multi-Sponsored by -- M. of A. BARCLAY, CROUCH, DUPREY, FINCH, FITZPA-
TRICK, GIGLIO, HAWLEY, LOPEZ, McDONOUGH, McKEVITT, RAIA, SALADINO,
TENNEY, THIELE -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to eliminating the corporate
franchise and personal income tax on manufacturers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 1 of section 210 of the tax
law, as amended by section 12 of Part A of chapter 59 of the laws of
2014, is amended to read as follows:
(b) Capital base. (1) The amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
capital, or the portion thereof allocated within the state as hereinaft-
er provided for taxable years beginning before January first, two thou-
sand sixteen. However, in the case of a cooperative housing corporation
as defined in the internal revenue code, the applicable rate shall be
.04 percent until taxable years beginning on or after January first, two
thousand twenty. The rate of tax for subsequent tax years shall be as
follows: .125 percent for taxable years beginning on or after January
first, two thousand sixteen and before January first, two thousand
seventeen; .100 percent for taxable years beginning on or after January
first, two thousand seventeen and before January first, two thousand
eighteen; .075 percent for taxable years beginning on or after January
first, two thousand eighteen and before January first, two thousand
nineteen; .050 percent for taxable years beginning on or after January
first, two thousand nineteen and before January first, two thousand
twenty; .025 percent for taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand twen-
ty-one; and zero percent for years beginning on or after January first,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03610-02-5
A. 5217 2
two thousand twenty-one. The rate of tax for a qualified New York
manufacturer for tax years [subsequent to taxable years] beginning on or
after January first, two thousand fifteen [and before January first, two
thousand sixteen] shall be [.106] ZERO percent [for taxable years begin-
ning on or after January first, two thousand sixteen and before January
first, two thousand seventeen, .085 percent for taxable years beginning
on or after January first, two thousand seventeen and before January
first, two thousand eighteen; .056 percent for taxable years beginning
on or after January first, two thousand eighteen and before January
first, two thousand nineteen; .038 percent for taxable years beginning
on or after January first, two thousand nineteen and before January
first, thousand twenty; .019 percent for taxable years beginning on or
after January first, two thousand twenty and before January first, two
thousand twenty-one; and zero percent for years beginning on or after
January first, two thousand twenty-one. In no event shall the amount
prescribed by this paragraph exceed three hundred fifty thousand dollars
for qualified New York manufacturers and for all other taxpayers five
million dollars].
S 2. Paragraph (d) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of Part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d) Fixed dollar minimum. (1) 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
Provided further, the amount prescribed by this paragraph for a quali-
fied New York manufacturer, as defined in subparagraph (vi) of paragraph
(a) of this subdivision, and a qualified emerging technology company
under paragraph (c) of subdivision one of section thirty-one hundred
two-e of the public authorities law regardless of the ten million dollar
limitation expressed in subparagraph one of such paragraph (c) will be
determined in accordance with the following tables:
For tax years beginning on or after January 1, 2014 and before January
1, 2015:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 23
more than $100,000 but not over $250,000 $ 68
more than $250,000 but not over $500,000 $ 159
more than $500,000 but not over $1,000,000 $ 454
more than $1,000,000 but not over $5,000,000 $1,362
more than $5,000,000 but not over $25,000,000 $3,178
Over $25,000,000 $4,500
For tax years beginning on or after January 1, 2015 [and before January
1, 2016]:
A. 5217 3
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ [22
more than $100,000 but not over $250,000 $ 66
more than $250,000 but not over $500,000 $ 153
more than $500,000 but not over $1,000,000 $ 439
more than $1,000,000 but not over $5,000,000 $1,316
more than $5,000,000 but not over $25,000,000 $3,070
Over $25,000,000 $4,385
For tax years beginning on or after January 1, 2016 and before January
1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 21
more than $100,000 but not over $250,000 $ 63
more than $250,000 but not over $500,000 $ 148
more than $500,000 but not over $1,000,000 $ 423
more than $1,000,000 but not over $5,000,000 $1,269
more than $5,000,000 but not over $25,000,000 $2,961
Over $25,000,000 $4,230
For tax years beginning on or after January 1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 19
more than $100,000 but not over $250,000 $ 56
more than $250,000 but not over $500,000 $ 131
more than $500,000 but not over $1,000,000 $ 375
more than $1,000,000 but not over $5,000,000 $1,125
more than $5,000,000 but not over $25,000,000 $2,625
Over $25,000,000 $3,750] 0
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
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
more than $25,000,000
but not over $50,000,000 $5,000
more than $50,000,000 but not over $100,000,000 $10,000
more than $100,000,000 but not over $250,000,000 $20,000
more than $250,000,000 but not over $500,000,000 $50,000
more than $500,000,000 but not over $1,000,000,000 $100,000
Over $1,000,000,000 $200,000
For purposes of this paragraph, New York receipts are the receipts
included in the numerator of the apportionment factor determined under
section two hundred ten-A for the taxable year.
(2) If the taxable year is less than twelve months, the amount of New
York receipts is determined by dividing the amount of the receipts for
the taxable year by the number of months in the taxable year and multi-
A. 5217 4
plying the result by twelve. In the case of a termination year of a New
York S corporation, the sum of the tax computed under this paragraph for
the S short year and for the C short year shall not be less than the
amount computed under this paragraph as if the corporation were a New
York C corporation for the entire taxable year.
S 3. Subsection (i) of section 601 of the tax law is relettered
subsection (j) and a new subsection (i) is added to read as follows:
(I) MANUFACTURERS. NOTWITHSTANDING THIS OR ANY OTHER SECTION OF THIS
ARTICLE, A PERSON'S LIABILITY FOR TAX UNDER THIS SECTION, IF SUCH
PERSON'S PRIMARY ACTIVITY IS IN HIS OR HER ROLE AS A MANUFACTURER, SHALL
BE ZERO FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN. FOR PURPOSES OF THIS SECTION A PERSON SHALL BE CLASSIFIED
AS A MANUFACTURER IF, HE OR SHE IS PRINCIPALLY ENGAGED IN THE PRODUCTION
OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFINING, MINING,
EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE, VITICUL-
TURE OR COMMERCIAL FISHING. IN ADDITION, 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 SUBSECTION, OR ANY COMBINATION THEREOF. FOR PURPOSES OF
THIS SUBSECTION, A TAXPAYER IS "PRINCIPALLY ENGAGED" IN THE DESCRIBED
ACTIVITY IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE
GROSS RECEIPTS OF THE TAXPAYER ARE DERIVED FROM RECEIPTS FROM ACTIVITIES
COVERED BY THIS SUBSECTION.
S 4. This act shall take effect immediately; 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.