S T A T E   O F   N E W   Y O R K
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                                   2180
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced  by M. of A. SCHIMMINGER, MAGNARELLI, MAGEE, BRINDISI, LUPAR-
   DO, ZEBROWSKI -- Multi-Sponsored by  --  M.  of  A.  BARCLAY,  GIGLIO,
   GOODELL, HOOPER, KOLB, LAVINE, OAKS, PALMESANO, PEOPLES-STOKES -- read
   once and referred to the Committee on Ways and Means
 
 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 13 and 14 to read as follows:
   13.  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.
   14.  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.
   § 2. Section 209 of the tax law is amended by adding a new subdivision
 13 to read as follows:
   13.  (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
 THOUSAND EIGHTEEN, 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.
                                                            LBD05722-01-7
              

 A. 2180                             2
 
   (B) FOR ANY TAXABLE YEAR BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
 THOUSAND NINETEEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
 ALL TAXES IMPOSED BY THIS ARTICLE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years  commencing  on  or after January 1, 2017; 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.