S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5445
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2019
                                ___________
 
 Introduced  by M. of A. SALKA -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to reducing farm-based taxes
 
   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 13
 of part Q of chapter 60 of the laws of  2016  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  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,  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 para-
 graph.  The  minimum filing fee is twenty-five dollars for taxable years
 beginning in two thousand eight and thereafter. Limited liability compa-
 nies 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09394-01-9

 A. 5445                             2
 
 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 OR AGRICULTURAL  SERVICE  PROVIDERS,  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
 
   § 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,  COMMERCIAL  HORSE
 BOARDING, OR PROVIDING AGRICULTURAL SERVICES, THE TERM NEW YORK RECEIPTS
 SHALL REFER TO NET FARM INCOME AS REPORTED FOR FEDERAL TAX PURPOSES.
   § 3. This act shall take effect immediately.