Senate Bill S445A

2017-2018 Legislative Session

Exempts farm operations from limited liability filing fees and certain business franchise taxes

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 22, 2018	print number 445a
Jan 22, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Jan 04, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S445 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§658 & 210, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2482
2011-2012: S846
2013-2014: S2684
2015-2016: S3016

2017-S445 - Summary

Exempts farm operations from limited liability filing fees and certain business franchise taxes.

2017-S445 - Sponsor Memo

2017-S445 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    445
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by Sens. YOUNG, BONACIC, GALLIVAN, ORTT, RANZENHOFER -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Investigations and Government Operations
 
 AN  ACT  to  amend the tax law, in relation to limited liability company
   fees and business corporation franchise taxes for farms and commercial
   horse boarding operations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  3  of subsection (c) of section 658 of the tax
 law, as amended by section 1 of part H-1 of chapter 57 of  the  laws  of
 2009,  subparagraph (A) as amended by section 13 of part Q of chapter 60
 of the laws of 2016, subparagraph (E) as added by section 13 of  part  S
 of chapter 59 of the laws of 2015, is amended to read as follows:
   (3)  Filing  fees.   (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 on or before the fifteenth day of the
 third month following the close of each taxable year make a payment of a
 filing  fee.  SUCH DEADLINE SHALL NOT APPLY TO FARMS OR COMMERCIAL HORSE
 BOARDING OPERATIONS, WHICH SHALL, WITHIN ONE HUNDRED TWENTY  DAYS  AFTER
 THE  LAST  DAY  OF  THE  TAXABLE YEAR, MAKE PAYMENT OF A 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 taxa-
 ble years beginning  in  two  thousand  eight  and  thereafter.  Limited
 liability companies that are disregarded entities 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.

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

                                                            LBD05890-01-7

 S. 445                              2
 
   (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
 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  OR  COMMERCIAL
 HORSE  BOARDING,  FEDERAL GROSS INCOME SHALL BE BASED UPON 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
 
   (C) No credits provided by this article may be taken against  the  fee
 imposed by this paragraph.
   (D)  Where  the  filing  fee is not timely paid, it shall be paid upon
 notice and demand and shall be assessed, collected and paid in the  same
 manner as taxes, and for those purposes any reference in this article to
 tax imposed by this article shall be deemed also to refer to this filing
 fee.
   (E)  Notwithstanding  the  provisions of subsection (e) of section six
 hundred ninety-seven of this article, the commissioner shall provide the
 statements and other required information included  on  the  filing  fee
 payment  form  under  section three hundred one of the limited liability
 company law, subdivision (g) of section 121-1500 of the partnership law,
 and subdivision (f) of section 121-1502 of the partnership law,  to  the
 secretary of state for filing. Such provision may also include a copy or
 image of that portion of the report solely pertinent to such information
 to the extent feasible. The commissioner may also provide information on
 noncompliance.
   § 2. Clause (E) of subparagraph 1 of paragraph (d) of subdivision 1 of
 section  210 of the tax law, as amended by section 19 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (E) For purposes of this paragraph, New York receipts are the receipts
 included in the numerator of the apportionment factor  determined  under

 S. 445                              3
 
 section  two  hundred ten-A OF THIS ARTICLE for the taxable year, EXCEPT
 THAT FOR CORPORATIONS ENGAGED PRIMARILY IN FARMING OR  COMMERCIAL  HORSE
 BOARDING,  THE  TERM NEW YORK RECEIPTS SHALL REFER TO NET FARM INCOME AS
 REPORTED FOR FEDERAL TAX PURPOSES.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.

co-Sponsors

2017-S445A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§658 & 210, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2482
2011-2012: S846
2013-2014: S2684
2015-2016: S3016

2017-S445A (ACTIVE) - Summary

Exempts farm operations from limited liability filing fees and certain business franchise taxes.

2017-S445A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S445A

SPONSOR: YOUNG
 
TITLE OF BILL:  An act to amend the tax law, in relation to limited
liability company fees and business corporation franchise taxes for
farms and commercial horse boarding operations

 
PURPOSE:

To exempt farm or commercial horse boarding operations from limited
liability filing fees and certain business franchise taxes.

 
SUMMARY OF PROVISIONS:

This legislation amends the Tax law to exempt farm operations from
filing fees for limited liability (LLC) and S corporations.

 
JUSTIFICATION:

In past enacted state budgets, LLC and S corporation filing fees

increases were proposed which negatively impacted farms. These fees were
increased incrementally as a LLC or S corporation's total gross income,
or New York receipts, reached certain thresholds.

This legislation would mitigate the financial burden from these filing
fee increases for farm operations by using net farm income as reported
for federal tax purposes to determine New York receipts.  Because New
York farms are asset-rich/cash-poor businesses, this revision more accu-
rately reflects total income taken in by a farm operation.

 
LEGISLATIVE HISTORY:

2017: Referred to Senate Investigations and Government Operations
2015,2016: S.3016-A Referred to Investigations and Government Operations
2013,2014: S.2684-A Referred to Investigations and Government Operations
2011,2012: S.846 Referred to Investigations and Government Operations
2009,2010: S.2482A/A.5954A Referred to Investigations and Government
Operations
2008: S.8062/A.11257 Passed Senate

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
Effective immediately and applicable to taxable years beginning on or
after January 1, 2018.

2017-S445A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  445--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by Sens. YOUNG, BONACIC, GALLIVAN, ORTT, RANZENHOFER -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on  Investigations and Government Operations -- recommitted
   to the  Committee  on  Investigations  and  Government  Operations  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend the tax law, in relation to limited liability company
   fees and business corporation franchise taxes for farms and commercial
   horse boarding operations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  3  of subsection (c) of section 658 of the tax
 law, as amended by section 1 of part H-1 of chapter 57 of  the  laws  of
 2009,  subparagraph (A) as amended by section 13 of part Q of chapter 60
 of the laws of 2016, subparagraph (E) as added by section 13 of  part  S
 of chapter 59 of the laws of 2015, is amended to read as follows:
   (3)  Filing  fees.   (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 on or before the fifteenth day of the
 third month following the close of each taxable year make a payment of a
 filing  fee.  SUCH DEADLINE SHALL NOT APPLY TO FARMS OR COMMERCIAL HORSE
 BOARDING OPERATIONS, WHICH SHALL, WITHIN ONE HUNDRED TWENTY  DAYS  AFTER
 THE  LAST  DAY  OF  THE  TAXABLE YEAR, MAKE PAYMENT OF A 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 taxa-
 ble years beginning  in  two  thousand  eight  and  thereafter.  Limited
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD05890-02-8

 S. 445--A                           2
 
 liability companies that are disregarded entities 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
 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  OR  COMMERCIAL
 HORSE  BOARDING,  FEDERAL GROSS INCOME SHALL BE BASED UPON 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
 
   (C) No credits provided by this article may be taken against  the  fee
 imposed by this paragraph.
   (D)  Where  the  filing  fee is not timely paid, it shall be paid upon
 notice and demand and shall be assessed, collected and paid in the  same
 manner as taxes, and for those purposes any reference in this article to
 tax imposed by this article shall be deemed also to refer to this filing
 fee.
   (E)  Notwithstanding  the  provisions of subsection (e) of section six
 hundred ninety-seven of this article, the commissioner shall provide the
 statements and other required information included  on  the  filing  fee
 payment  form  under  section three hundred one of the limited liability
 company law, subdivision (g) of section 121-1500 of the partnership law,
 and subdivision (f) of section 121-1502 of the partnership law,  to  the
 secretary of state for filing. Such provision may also include a copy or
 image of that portion of the report solely pertinent to such information
 to the extent feasible. The commissioner may also provide information on
 noncompliance.

 S. 445--A                           3
 
   § 2. Clause (E) of subparagraph 1 of paragraph (d) of subdivision 1 of
 section  210 of the tax law, as amended by section 19 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (E) 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 OF THIS ARTICLE for the taxable  year,  EXCEPT
 THAT  FOR  CORPORATIONS ENGAGED PRIMARILY IN FARMING OR COMMERCIAL HORSE
 BOARDING, THE TERM NEW YORK RECEIPTS SHALL REFER TO NET FARM  INCOME  AS
 REPORTED FOR FEDERAL TAX PURPOSES.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.

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Senate Bill S445A

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

co-Sponsors

2017-S445 - Details

2017-S445 - Summary

2017-S445 - Sponsor Memo

2017-S445 - Bill Text download pdf

co-Sponsors

2017-S445A (ACTIVE) - Details

2017-S445A (ACTIVE) - Summary

2017-S445A (ACTIVE) - Sponsor Memo

2017-S445A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

co-Sponsors

2017-S445 - Details

2017-S445 - Summary

2017-S445 - Sponsor Memo

2017-S445 - Bill Text download pdf

co-Sponsors

2017-S445A (ACTIVE) - Details

2017-S445A (ACTIVE) - Summary

2017-S445A (ACTIVE) - Sponsor Memo

2017-S445A (ACTIVE) - Bill Text download pdf

Comments