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SECTION 182
Additional franchise tax on certain oil companies
Tax (TAX) CHAPTER 60, ARTICLE 9
§ 182. Additional franchise tax on certain oil companies. 1.
Notwithstanding any other provision of this chapter, or of any other
law, for taxable years ending on or after June eighteenth, nineteen
hundred eighty but before December thirty-first, nineteen hundred
eighty-three, an annual tax is hereby imposed upon every oil company
equal to two per centum of its gross receipts from all sources, or the
portion thereof allocated within the state as hereinafter provided, for
the privilege of exercising its corporate franchise, or of doing
business, or of employing capital, or of owning or leasing property in
this state in a corporate or organized capacity, or of maintaining an
office in this state, for all or any part of each of its taxable years.
In no event shall the tax imposed by this section be less than two
hundred fifty dollars.

2. As used in this section: (a) The term "oil company" means every
vertically integrated petroleum corporation or affiliate thereof formed
for or engaged in the business of importing or causing to be imported
into this state for sale in this state, extracting, producing, refining,
manufacturing, compounding or selling petroleum. For purposes of this
section, petroleum shall include, but shall not be limited to, gasoline,
aviation fuel, kerosene, diesel motor fuel, benzol, distillate fuels,
residual oil, crude oil or any similar product; a vertically integrated
petroleum corporation or affiliate thereof means any domestic or foreign
corporation, which, either for its own account or with affiliates: (i)
extract or produces in excess of one hundred thousand average barrels of
crude oil per day, (ii) has a refining capacity in excess of one hundred
seventy-five thousand average barrels of crude oil per day, and (iii)
market or distributors for marketing gasoline, motor fuels, fuel oils,
and similar products derived from the refining or manufacture of crude
oil, whether such activities are carried on directly or indirectly in
conjunction with or by means of an affiliate or affiliates; and
affiliate means a corporation in which more than fifty per centum of the
number of shares of stock entitling the holders thereof to vote for the
election of directors or trustees is owned, directly or indirectly, by
the vertically integrated petroleum corporation or affiliate thereof.

(b) The term "gross receipts" means all receipts, whether from within
or without the United States, whether in cash, credits or property of
any kind or nature, without any deduction therefrom on account of the
cost of the property sold, the cost of materials used, labor or
services, or other costs, interest or discount paid, or any other
expense whatsoever but excluding such receipts which constitute
consideration received by the oil company for the issuance or sale of
shares of its capital stock or money lent to such company. Receipts
received by reason of any sale of fuel oil (excluding diesel motor fuel)
used for residential purposes shall not be included in gross receipts.
Provided, however, gross receipts shall not include the receipts from
any sale for resale to a purchaser which is an oil company subject to
tax under this section. It shall be presumed that no receipts are
receipts from a sale for resale to such purchaser unless such purchaser
furnishes the oil company with a resale certificate in such form and
under such terms and conditions as the tax commission may prescribe and
such certificate is accepted in good faith by such oil company.

(c) The term "corporation" includes a corporation, joint stock company
or association and any business conducted by a trustee or trustees
wherein interest or ownership is evidenced by certificate or other
written instrument.

(d) The term "taxable year" means the oil company's taxable year for
federal income tax purposes, or the part thereof during which such oil
company is subject to tax under this section.

3. (a) The portion of the gross receipts of an oil company to be
allocated within the state shall be determined as follows: multiply its
gross receipts by an allocation percentage to be determined by
ascertaining the percentage which the receipts of such oil company,
computed on the cash or accrual basis according to the method of
accounting used in the computation of its gross receipts, arising during
the period covered by its report from (1) sales of its tangible personal
property where shipments are made to points within this state, (2)
services performed within the state, (3) rentals from property situated,
and royalties from the use of patents or copyrights, within the state,
and (4) all other business receipts earned within the state, bear to the
total amount of the oil company's receipts, similarly computed, arising
during such period from all sales of its tangible personal property,
services, rentals, royalties and all other business transactions,
whether within or without the state. Receipts received by reason of any
sale of fuel oil used for residential purposes and receipts from any
sale for resale to a purchaser which is an oil company subject to tax
under this section shall be included as a receipt in the computation of
the allocation percentage.

(b) Where the tax commission decides that with respect to a certain
oil company the method prescribed above does not fairly and equitably
reflect its gross receipts from all sources within the state, the tax
commission shall prescribe methods of allocation which fairly and
equitably reflect gross receipts from all sources within the state.

4. Every oil company subject to tax under this section shall keep such
records of its business in such form as the tax commission may require,
and such records shall be preserved for a period of three years, except
that the tax commission may consent to their destruction within that
period or may require that they be kept longer.

5. Every oil company subject to tax hereunder shall annually file on
or before the fifteenth day of the third month following the close of
its taxable year a return which shall state the gross receipts for the
period covered by such return. Returns shall be filed with the tax
commission in a form prescribed by it setting forth such information as
the tax commission may prescribe. Every oil company subject to tax
hereunder which ceases to exercise its franchise or to be subject to the
tax imposed by this section shall transmit to the tax commission a
return on the date of such cessation or at such other time as the tax
commission may require covering each year or period for which no return
was theretofore filed. Notwithstanding the foregoing provisions of this
subdivision, the tax commission may require any oil company to file an
annual return, which shall contain any data specified by it, regardless
of whether the oil company is subject to tax under this section.

6. If any provision of this section conflicts with any other provision
contained in this article, the provisions of this section shall control,
but the provisions of this article which do not conflict with the
provisions of this section shall apply with respect to the taxes under
this section, insofar as they are, or may be made, applicable.

7. Any corporation which is subject to tax under section one hundred
eighty-three, one hundred eighty-four, one hundred eighty-five or one
hundred eighty-six of this chapter shall not be subject to tax under
this section.

8. An oil company which is not incorporated or organized under the
laws of this state shall not be deemed to be doing business, employing
capital, owning or leasing property, or maintaining an office in this
state, for the purposes of this section, by reason of (a) the
maintenance of cash balances with banks or trust companies in this
state, or (b) the ownership of shares of stock or securities kept in
this state, 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 oil company, or (d) the
maintenance of an office in this state by one or more officers or
directors of the oil company who are not employees of the oil company if
the company otherwise is not doing business in this state, and does not
employ capital or own or lease property in this state, or (e) the
keeping of books or records of an oil company in this state if such
books or records are not kept by employees of such oil company and such
oil company does not otherwise do business, employ capital, own or lease
property or maintain an office in this state, or (f) any combination of
the foregoing activities.

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

10. Where a false or fraudulent resale certificate has been furnished
to an oil company, the corporation furnishing such certificate shall be
subject to a penalty equal to three per centum of the gross receipts
which would have otherwise been taxable to such oil company if such
certificate had not been furnished to such company. Such penalty shall
be assessed, collected and paid in the same manner as the addition to
tax with respect to a deficiency due to fraud provided for in subsection
(e) of section one thousand eighty-five of this chapter is assessed,
collected and paid.

11. If any amount of tax imposed by this section is not paid prior to
September first, nineteen hundred eighty-three, interest on such amount
at double the underpayment rate set by the commissioner of taxation and
finance pursuant to section one thousand ninety-six of this chapter, or
if no rate is set, at the rate of twelve percent per annum shall be paid
for the period from such date to the date paid, whether or not any
extension of time for payment was granted; provided, however, that the
rate charged shall not exceed the maximum rate allowed pursuant to
section 190.42 of the penal law. This subdivision shall apply with
respect to taxes, or any portion thereof, which are overdue on or after
September first, nineteen hundred eighty-three and shall apply only with
respect to interest computed or computable for periods or portions of
periods occurring on or after such date.

12. All taxes, interest and penalties collected or received by the tax
commission under the taxes and penalties imposed by this section shall
be deposited daily in one account with such responsible banks, banking
houses or trust companies as may be designated by the comptroller, to
the credit of the comptroller. Such an account may be established in one
or more of such depositories. Such deposits shall be kept separate and
apart from all other money in the possession of the comptroller. The
comptroller shall require adequate security from all such depositories.
Of the total revenue collected or received under this section, the
comptroller shall retain in his hands such amount as the commissioner of
taxation and finance may determine to be necessary for refunds under
this section, out of which amount the comptroller shall pay any refunds
to which oil companies shall be entitled under the provisions of this
section. After reserving the amount required to pay such refunds, the
comptroller shall deposit all remaining revenue pursuant to the
provisions of subdivision one of section one hundred seventy-one-a of
this chapter.