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This entry was published on 2015-01-09
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SECTION 1505-A
Metropolitan transportation business tax surcharge on insurance corporations
Tax (TAX) CHAPTER 60, ARTICLE 33
§ 1505-a. Metropolitan transportation business tax surcharge on
insurance corporations.

(a) (1) Every domestic insurance corporation and every foreign or
alien insurance corporation, and every life insurance corporation
described in subdivision (b) of section fifteen hundred one of this
article, for the privilege of exercising its corporate franchise, or of
doing business, or of employing capital, or of owning or leasing
property in the metropolitan commuter transportation district in a
corporate or organized capacity, or of maintaining an office in the
metropolitan commuter transportation district, except corporations
specified in subdivision (c) of section fifteen hundred twelve of this
article, shall annually pay, in addition to the taxes otherwise imposed
by this article, a tax surcharge on the taxes imposed under this article
after the deduction of any credits otherwise allowable under this
article as allocated to such district. Such taxes shall be allocated to
such district for purposes of computing such tax surcharge upon
taxpayers subject to tax under subdivision (b) of section fifteen
hundred ten of this article by applying the methodology, procedures and
computations set forth in subdivisions (a) and (b) of section fifteen
hundred four of this article, except that references to terms denoting
New York premiums, and total wages, salaries, personal service
compensation and commissions within New York shall be read as denoting
within the metropolitan commuter transportation district and terms
denoting total premiums and total wages, salaries, personal service
compensation and commissions shall be read as denoting within the state.
If it shall appear to the commissioner that the application of the
methodology, procedures and computations set forth in such subdivisions
(a) and (b) does not properly reflect the activity, business or income
of a taxpayer within the metropolitan commuter transportation district,
then the commissioner shall be authorized, in the commissioner's
discretion, to adjust such methodology, procedures and computations for
the purpose of allocating such taxes by:

(A) excluding one or more factors therein;

(B) including one or more other factors therein, such as expenses,
purchases, receipts other than premiums, real property or tangible
personal property; or

(C) any other similar or different method which allocates such taxes
by attributing a fair and proper portion of such taxes to the
metropolitan commuter transportation district. The commissioner from
time to time shall publish all rulings of general public interest with
respect to any application of the provisions of the preceding sentence.
The commissioner may promulgate rules and regulations to further
implement the provisions of this section.

(2) Such taxes shall be allocated to such district for purposes of
computing such tax surcharge upon taxpayers subject to tax under section
fifteen hundred two-a of this article pursuant to a fraction, the
denominator of which shall be the direct premiums subject to tax under
section fifteen hundred ten of this article, and the numerator of which
shall be the direct premiums subject to tax under section fifteen
hundred ten of this article that are written on risks located or
resident in the metropolitan commuter transportation district, including
premiums written, procured or received in the metropolitan commuter
transportation district on business that cannot be specifically assigned
as located or resident in an area of New York state outside the
metropolitan commuter transportation district, or in another state or
states; provided, however, in the case of special risk premiums, the
numerator shall include only those premiums written, procured or
received in the metropolitan commuter transportation district on
property or risks located or resident in the metropolitan commuter
transportation district. If it shall appear to the commissioner that the
application of the methodology, procedures and computations set forth in
this paragraph does not properly reflect the activity, business or
income of a taxpayer within the metropolitan commuter transportation
district, then the commissioner shall be authorized, in the
commissioner's discretion, to adjust such methodology, procedures and
computations for the purpose of allocating such taxes by: (A) excluding
the factor therein and including one or more other factors such as
expenses, purchases, receipts other than premiums, real property or
tangible personal property; or (B) any other similar or different method
which allocates such taxes by attributing a fair and proper portion of
such taxes to the metropolitan commuter transportation district. The
commissioner from time to time shall publish all rulings of general
public interest with respect to any application of the provisions of the
preceding sentence. The commissioner may promulgate rules and
regulations to further implement the provisions of this section.

(3) Such tax surcharge shall be computed at the rate of seventeen
percent of the taxes imposed under sections fifteen hundred one, fifteen
hundred two-a, and fifteen hundred ten of this article, as limited or
otherwise determined by subdivision (a) or (b) of section fifteen
hundred five of this article, as allocated to such district, after the
deduction of any credits otherwise allowable under this article.
Provided however, that for taxable years commencing on or after July
first, two thousand, and in the case of taxpayers subject to tax under
section fifteen hundred two-a of this article, for taxable years of such
taxpayers beginning on or after July first, two thousand and before
January first, two thousand three, such surcharge shall be calculated as
if (i) the rate of the tax computed under paragraph one of subdivision
(a) of section fifteen hundred two of this article was nine percent and
(ii) the rate of the limitation on tax set forth in section fifteen
hundred five of this article for domestic, foreign and alien insurance
corporations except life insurance corporations was two and six-tenths
percent.

(b) The term metropolitan commuter transportation district as used in
this section shall be defined pursuant to section twelve hundred
sixty-two of the public authorities law.

(c) Notwithstanding any contrary provisions of state or local law, the
tax surcharge imposed under this section shall not be allowed as a
deduction in the computation of any state or local tax imposed under
this chapter or any chapter or local law. The credits set forth in
section fifteen hundred eleven of this article shall not be allowed
against the tax surcharge imposed by this section.

(d) (1) If, by the laws of any state other than this state, or by the
action of any public official of such other state, any insurer organized
or domiciled in this state, or the duly authorized agents thereof,
subject to the business tax surcharge imposed by this section shall be
required to pay taxes for the privilege of doing business in such other
state which taxes are imposed or assessed because of the taxes imposed
or assessed under this section, in computing the tax imposed by this
section a credit shall be allowed for taxes paid to other states, which
credit shall be determined pursuant to the provisions of this section;
provided, however, the credit allowed any insurer under this subdivision
shall in no event be greater than the tax surcharge payable by such
insurer pursuant to this section for the taxable year with respect to
which such amount has been imposed or assessed by such other states.

(2) In addition to any other requirements of this article, an insurer
claiming a credit under this subdivision shall attach to the returns
required pursuant to this section and section fifteen hundred fifteen of
this article a computation identifying the credit attributable to taxes
paid to other states because of the tax surcharge imposed by this
section, which credit shall be further broken down to reflect amounts
and taxable years to which the retaliatory taxes giving rise to the
credit relate. The credit attributable to taxes paid to other states
because of the tax surcharge imposed by this section shall be the
difference between: (i) the credit which would be claimed by the insurer
pursuant to subdivision (c) of section fifteen hundred eleven of this
chapter if the tax surcharge imposed by this section were permitted in
the computation of such credit, and (ii) the credit which is claimed by
such insurer pursuant to such subdivision (c).

(3) To the extent not inconsistent with the provisions of this
subdivision, the provisions of paragraphs four and five of subdivision
(c) of section fifteen hundred eleven of this chapter shall apply with
respect to the credit allowed under this subdivision.

(4) No credit against taxes paid to other jurisdictions under
subdivision (c) of section fifteen hundred eleven of this article shall
be allowed for any taxes paid under this section by any domestic
insurance corporation, including life insurance corporations subject to
tax under this section.

(e) The provisions concerning returns under section fifteen hundred
fifteen of this article shall be applicable to this section, except that
for purposes of an automatic extension for six months for filing a
return covering the tax surcharges imposed by this section, such
automatic extension shall be allowed only if a taxpayer files with the
commissioner an application for extension in such form and manner as
said commissioner may prescribe by regulation and such taxpayer pays on
or before the date of such filing in addition to any other amounts
required under this article, either ninety percent of the entire tax
required to be paid under this section for the applicable period, or not
less than the tax surcharge shown on the taxpayer's return for the
preceding taxable year, if such preceding taxable year was a taxable
year of twelve months. The tax surcharge imposed by this section shall
be payable to the commissioner in full at the time the return is
required to be filed, and such tax surcharge or the balance thereof,
imposed on any taxpayer which ceases to exercise its franchise or be
subject to the tax surcharge imposed by this section shall be payable to
the commissioner at the time the return is required to be filed,
provided such tax surcharge of such domestic, foreign or alien insurance
corporation including life insurance corporations, as described in
subdivision (b) of section fifteen hundred one of this article, shall be
subject to adjustment as the circumstances may require; all other tax
surcharges of any such taxpayer, which pursuant to the foregoing
provisions of this section would otherwise be payable subsequent to the
time such return is required to be filed, shall nevertheless be payable
at such time. All of the provisions of this article presently applicable
are applicable to the tax surcharge imposed by this section.