§ 3. Imposition of tax; exemptions. 1. For the privilege of doing
business in the city in a corporate or organized capacity for all or any
part of each of its fiscal or calendar years, every domestic or foreign
corporation, except corporations specified in subdivision four of this
section, shall annually pay a tax, upon the basis of its entire net
income, or upon such other basis as may be applicable as hereinafter
provided, for such fiscal or calendar year or part thereof, on a report
which shall be filed, except as hereinafter provided, on or before the
fifteenth day of March next succeeding the close of each such year, or,
in the case of a taxpayer which reports on the basis of a fiscal year,
within two and one-half months after the close of such fiscal year, and
shall be paid as hereinafter provided.

2. The holding of real property in the city shall be deemed to be
doing business in the city within the meaning of this part. A
corporation shall not be deemed to be doing business in the city, for
the purposes of this part, by reason of (a) the maintenance of cash
balances with banks or trust companies in the city, or (b) the ownership
of shares of stock or securities kept in the city, if kept in a safe
deposit box, safe, vault or other receptacle rented for the purpose, or
if pledged as collateral security, or if deposited with one or more
banks or trust companies, or brokers who are members of a recognized
security exchange, in safekeeping or custody accounts, or (c) the taking
of any action by any such bank or trust company or broker, which is
incidental to the rendering of safekeeping or custodian service to such
corporation, or (d) any combination of the foregoing activities.

3. Any receiver, referee, trustee, assignee or other fiduciary, or any
officer or agent appointed by any court, who conducts the business of
any corporation, shall be subject to the tax imposed by this part in the
same manner and to the same extent as if the business were conducted by
the agents or officers of such corporation. A dissolved corporation
which continues to conduct business shall also be subject to the tax
imposed by this part.

4. Corporations subject to tax under part three, part four or part
five, or under a local law of the city imposing a tax on utilities, and
any trust company organized under a law of this state all of the stock
of which is owned by not less than twenty savings banks organized under
a law of this state, and housing companies organized and operating
pursuant to the provisions of article two, article four or article five
of the private housing finance law, shall not be subject to tax under
this part; provided, however, that corporations, other than utility
corporations subject to the supervision of the state department of
public service, which are subject to tax under a local law of the city
imposing a tax on vendors of utility services shall be subject to tax
under this part on that percentage of their entire net income allocable
to the city under section four which their receipts other than those
taxable under such local law taxing vendors of utility services is of
their total receipts.

5. The tax imposed by subdivision one of this section, with the
modifications provided by subdivision six of this section, is imposed
for each calendar or fiscal year beginning with calendar or fiscal years
ending in or with the calendar year nineteen hundred sixty-six.

6. (a) The tax for any taxable year ending prior to December
thirty-first, nineteen hundred sixty-six shall be an amount equal to the
tax imposed by subdivision one of this section for such taxable year,
multiplied by the number of months (or major portions thereof) in such
taxable year which occur after December thirty-first, nineteen hundred
sixty-five and divided by the number of months (or major portions
thereof) in such taxable year.

(b) In lieu of the method of computation of tax prescribed in
paragraph (a) of this subdivision, if the taxpayer maintained adequate
records for the portion of any taxable year ending prior to December
thirty-first, nineteen hundred sixty-six, which portion falls within the
calendar year nineteen hundred sixty-six, it may elect to compute the
tax for such taxable year by determining entire net income on the basis
of the entire taxable income which it would have reported for federal
income tax purposes had it filed a federal income tax return for a
taxable year beginning January first, nineteen hundred sixty-six and
ending with the close of its actual taxable year and such taxable year
beginning January first, nineteen hundred sixty-six, shall be deemed to
be the period covered by its report, except that in computing such tax
any portion of a capital loss which results from a capital loss
carryover and any net operating loss deduction, as modified pursuant to
paragraph (f) of subdivision eight of section two shall be reduced by
the same part of such portion of such capital loss or of such net
operating loss deduction (as the case may be) as the number of months (
or major portions thereof) in the taxable year occurring before January
first, nineteen hundred sixty-six is of the number of months (or major
portions thereof) in such taxable year.