S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6651
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 14, 2019
                                ___________
 
 Introduced  by  M.  of  A. KOLB, MONTESANO, DiPIETRO, BRABENEC, ASHBY --
   Multi-Sponsored by -- M. of A. BARCLAY,  CROUCH,  FINCH,  FITZPATRICK,
   GIGLIO,  HAWLEY,  McDONOUGH, RAIA, 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. Subparagraph 1 of paragraph (b) of subdivision 1 of section
 210 of the tax law, as amended by section 18 of part T of chapter 59  of
 the laws of 2015, is amended to read as follows:
   (1)  [(i)]  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  apportioned  within  the  state  as  hereinafter
 provided  for taxable years beginning before January first, two thousand
 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,
 two  thousand  twenty-one.  The  rate  of  tax  for a qualified New York
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06104-02-9

 A. 6651                             2
 
 manufacturer shall be .132 percent for taxable  years  beginning  on  or
 after  January first, two thousand fifteen and before January first, two
 thousand sixteen, .106 percent for taxable years beginning on  or  after
 January  first, two thousand sixteen and before January first, two thou-
 sand 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 thou-
 sand nineteen; [.038] AND ZERO 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 thou-
 sand twenty-one; and zero percent for years beginning on or after  Janu-
 ary  first,  two  thousand twenty-one. (ii) 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] THEREAFTER.
   §  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,
 subparagraphs  1  and 2 as amended by section 19 of part T of chapter 59
 of the laws of 2015, clause (D) as amended by section 2 and clause (D-1)
 of subparagraph 1 as added by section 3 of part VV of chapter 59 of  the
 laws of 2017, is amended to read as follows:
   (d) Fixed dollar minimum.  (1) (A) The amount prescribed by this para-
 graph  for  New  York S corporations, other than New York S corporations
 that are qualified New York manufacturers or qualified emerging technol-
 ogy companies, 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
 
   (B)  Provided further, the amount prescribed by this paragraph for New
 York S corporations  that  are  qualified  New  York  manufacturers,  as
 defined  in  subparagraph (vi) of paragraph (a) of this subdivision, and
 for New York S  corporations  that  are  qualified  emerging  technology
 companies  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 para-
 graph (c), will be determined in accordance with the following tables.
 
 For taxable years beginning on or after January 1, 2015 and before Janu-
 ary 1, 2016:
 
 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             $   44
  more than $250,000 but not over $500,000             $  153
  more than $500,000 but not over $1,000,000           $  263

 A. 6651                             3
 
  more than $1,000,000 but not over $5,000,000         $  877
  more than $5,000,000 but not over $25,000,000        $2,631
  Over $25,000,000                                     $3,947
 
 For taxable years beginning on or after January 1, 2016 and before Janu-
 ary 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             $   42
  more than $250,000 but not over $500,000             $  148
  more than $500,000 but not over $1,000,000           $  254
  more than $1,000,000 but not over $5,000,000         $  846
  more than $5,000,000 but not over $25,000,000        $2,538
  Over $25,000,000                                     $3,807
 
 For taxable years beginning on or after January 1, 2018 AND BEFORE JANU-
 ARY 1, 2019:
 
 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             $   38
  more than $250,000 but not over $500,000             $  131
  more than $500,000 but not over $1,000,000           $  225
  more than $1,000,000 but not over $5,000,000         $  750
  more than $5,000,000 but not over $25,000,000        $2,250
  Over $25,000,000                                     $3,375
 
 FOR  TAXABLE  YEARS  BEGINNING  ON  OR  AFTER JANUARY 1, 2019, THE FIXED
 DOLLAR MINIMUM TAX IS $0.
   (C) Provided further, the amount prescribed by this  paragraph  for  a
 qualified  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 para-
 graph (c), that is not a New York S corporation, will be  determined  in
 accordance with the following tables. However, with respect to qualified
 New  York  manufacturers,  the amounts in these tables will apply in the
 case of a combined report only  if  the  combined  group  satisfies  the
 requirements  to  be  a  qualified New York manufacturer as set forth in
 such subparagraph (vi).
 
 For tax years beginning on or after January 1, 2015 and  before  January
 1, 2016:
 
 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

 A. 6651                             4
 
 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 AND BEFORE JANUARY
 1, 2019:

 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
 
 FOR TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2019,  THE  FIXED  DOLLAR
 MINIMUM TAX IS $0.
   (D)  Otherwise,  for  all  other taxpayers not covered by clauses (A),
 (B), (C) and (D-1) of this subparagraph, 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
 
   (D-1)  In  the  case  of a REIT or a RIC that is not a captive REIT or
 captive RIC, 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                                   $  500

 A. 6651                             5
 
   (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 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-
 plying the result by twelve, and the amount prescribed by this paragraph
 shall be reduced by twenty-five percent of  the  period  for  which  the
 taxpayer  is  subject  to  tax is more than six months but not more than
 nine months and by fifty percent if the period for which the taxpayer is
 subject to tax is not more than six months. 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.
   §  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 NINETEEN. 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.
   §  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.