S T A T E O F N E W Y O R K
________________________________________________________________________
5316
2021-2022 Regular Sessions
I N A S S E M B L Y
February 12, 2021
___________
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.
LBD07868-01-1
A. 5316 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.