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SECTION 183
Franchise tax on transportation and transmission corporations and associations
Tax (TAX) CHAPTER 60, ARTICLE 9
§ 183. Franchise tax on transportation and transmission corporations
and associations.--1. (a) The term "corporation" as used in this section
shall include an association, within the meaning of paragraph three of
subsection (a) of section seventy-seven hundred one of the internal
revenue code (including a limited liability company), a publicly traded
partnership treated as a corporation for purposes of the internal
revenue code pursuant to section seventy-seven hundred four thereof and
any business conducted by a trustee or trustees wherein interest or
ownership is evidenced by certificates or other written instruments.

(b) 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, every domestic corporation,
joint-stock company or association formed for or principally engaged in
the conduct of canal, steamboat, ferry (except a ferry company operating
between any of the boroughs of the city of New York under a lease
granted by the city), express, navigation, pipe line, transfer, baggage
express, omnibus, taxicab, telegraph, or telephone business, or formed
for or principally engaged in the conduct of two or more of such
businesses, and every domestic corporation, joint-stock company or
association formed for or principally engaged in the conduct of a
railroad, palace car, sleeping car or trucking business or formed for or
principally engaged in the conduct of two or more of such businesses and
which has made an election pursuant to subdivision ten of this section,
and every other domestic corporation, joint-stock company or association
principally engaged in the conduct of a transportation or transmission
business, except a corporation, joint-stock company or association
formed for or principally engaged in the conduct of a railroad, palace
car, sleeping car or trucking business or formed for or principally
engaged in the conduct of two or more of such businesses and which has
not made the election provided for in subdivision ten of this section,
and except a corporation, joint-stock company or association principally
engaged in the conduct of aviation (including air freight forwarders
acting as principal and like indirect air carriers) and except a
corporation principally engaged in providing telecommunication services
between aircraft and dispatcher, aircraft and air traffic control or
ground station and ground station (or any combination of the foregoing),
at least ninety percent of the voting stock of which corporation is
owned, directly or indirectly, by air carriers and which corporation's
principal function is to fulfill the requirements of (i) the federal
aviation administration (or the successor thereto) or (ii) the
international civil aviation organization (or the successor thereto),
relating to the existence of a communication system between aircraft and
dispatcher, aircraft and air traffic control or ground station and
ground station (or any combination of the foregoing) for the purposes of
air safety and navigation shall pay, in advance, an annual tax to be
computed upon the basis of the amount of its capital stock within this
state during the preceding year, and upon each dollar of such amount.
Provided, however, a corporation, joint-stock company or association
formed for or principally engaged in the transportation, transmission or
distribution of gas, electricity or steam shall not be subject to tax
under this section or section one hundred eighty-four of this article.

(c) Notwithstanding the provisions of paragraph (b) of this
subdivision, during the period that the state tax on motor fuel,
computed without regard to any reimbursement allowable under paragraph
(d) of subdivision three of section two hundred eighty-nine-c of this
chapter, exceeds two cents per gallon, the corporations, herein classed
as "taxicab" and "omnibus," other than corporations described in
subdivision nine of this section, shall be taxed under the provisions of
article nine-a of this chapter and not under this section.

2. The measure of the amount of capital stock in this state, except as
hereinafter provided, shall be such a portion of the issued capital
stock as the gross assets, exclusive of obligations issued by the United
States and cash on hand and on deposit, employed in any business within
this state, bear to the gross assets, exclusive of obligations issued by
the United States and cash on hand and on deposit, wherever employed in
business. Provided, however, that in the case of a corporation taxable
hereunder only for the privilege of holding property, the measure shall
be such a portion of the issued capital stock as the gross assets,
exclusive of obligations issued by the United States and cash on hand
and on deposit, located within the state, bear to the gross assets,
exclusive of obligations issued by the United States and cash on hand
and on deposit, wherever located. The capital of a corporation invested
in the stock of another corporation shall be deemed to be assets located
where the assets of the issuing corporation, other than patents,
copyrights, trademarks, contracts and good will, are located.

3. Every corporation, joint-stock company or association, subject to
taxation under this section shall, in any event, pay annually a minimum
tax of not less than seventy-five dollars nor less than one and
five-tenths mills on each dollar of such a portion of the net value of
its issued capital stock, which net value for the purposes of this
section shall be deemed to be not less than five dollars per share, as
may be determined upon such of the bases herein provided for the
measurement thereof as is applicable. The term "net value" as used in
this section shall be construed to mean not less than the difference
between a corporation's assets and liabilities, and not less than the
average price at which such stock sold during the year covered by the
report which forms the basis for the tax. But if the dividends paid on
the par value of any kind of capital stock during any year ending with
the thirty-first day of December amount to six per centum or more, the
tax upon such kind of capital stock shall be at the rate of
three-eighths of a mill for each one per centum of dividends paid and
shall be computed upon the par value of such capital stock, unless such
a tax be less than the minimum tax hereinbefore provided in this
section, and the tax commission shall, for such purpose, make a fair and
equitable apportionment of the assets of the corporation, joint-stock
company or association, between or among the different kinds of stock,
provided, however, that the provisions of this sentence shall not apply
to any corporation, joint stock company or association formed for or
principally engaged in the conduct of a telephone business which is
subject to the provisions of section one hundred eighty-four of this
article and which has a total number of access lines in the state of one
million or less.

4. If such corporation, joint stock company or association shall have
more than one kind of capital stock, and upon one of such kinds of stock
a dividend or dividends amounting to six or more than six per centum
upon the par value thereof, has been paid, and upon the other no
dividend has been paid, or the dividend or dividends paid thereon amount
to less than six per centum upon the par value thereof, then the tax
shall be fixed upon each kind as hereinbefore provided.

5. The dividend rate for a corporation having stock without nominal or
par value shall be determined by dividing the amount paid as a dividend
or dividends during the year by the amount paid in on such stock and, if
the rate is six per centum or more, the rate of three-eighths of a mill
for each one per centum of dividends shall be applied to the amount paid
in on such stock, unless such tax be less than the minimum tax
hereinbefore in this section provided for. The amount of earned surplus
at the time of change of classification of a corporation formerly taxed
under article nine-a of this chapter shall be excluded in determining
the amount of dividends paid. Any consideration given by a corporation
for the purchase of its own stock in excess of the consideration
received by it for the issuance of such stock, shall, for the purposes
of this section, be considered as a dividend.

6. Every like corporation, joint-stock company or association
organized, incorporated or formed under the laws of any other state,
country or sovereignty shall pay a like tax 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, to be computed upon the basis of the measurement herein provided
for the taxation of domestic corporations.

7. The owning or holding in this state by a foreign corporation, or by
a trustee or trustees included under this section within the meaning of
the term corporation as herein before defined, of property shall
constitute doing business within this state within the intent of this
section; provided, however, that the owning or holding in this state by
a railroad, palace car or sleeping car corporation, business,
navigation, canal, ferry, (except a ferry company operating between any
of the boroughs of the city of New York under a lease granted by the
city), or steamboat or any other corporation formed for or principally
engaged in the operation of vessels included under this section within
the meaning of the term corporation as herein before defined, of
property used exclusively in interstate or foreign commerce shall not
constitute doing business in this state within the intent of this
section. However, a foreign corporation or such a trustee or trustees
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 article, 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 corporation, or (d) the maintenance of an office in this state
by one or more officers or directors of the corporation who are not
employees of the corporation if the corporation 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 a
corporation in this state if such books or records are not kept by
employees of such corporation and such corporation 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.

8. The measure of the capital stock in this state of a corporation
engaged in the operation of vessels in foreign commerce shall be such
portion of the issued capital stock as the aggregate number of working
days in New York territorial waters of all such vessels bears to the
aggregate number of working days of all such vessels. The dividend rate
for such a corporation shall be determined by dividing the amount paid
as a dividend or dividends on all classes of stock during the year by
the amount of paid-in capital and, if the rate is six per centum or
more, the rate of three-eighths of a mill for each one per centum of
dividends shall be applied to the amount of such paid-in capital.

9. (a) A corporation, classed as a "taxicab" or "omnibus",

(1) which is organized, incorporated or formed under the laws of any
other state, country or sovereignty, and

(2) which neither owns nor leases property in this state in a
corporate or organized capacity, nor

(3) maintains an office in this state in a corporate or organized
capacity, but

(4) which is doing business or employing capital in this state by
conducting at least one but fewer than twelve trips into this state
during the calendar year,
shall be exempt from the tax imposed under this section. If the only
property a corporation owns or leases in this state is a vehicle or
vehicles used to conduct trips, it shall not be considered, for purposes
of subparagraph two of this paragraph, to be owning or leasing property
in this state.

(b) For purposes of this subdivision, a corporation classed as a
"taxicab" or "omnibus" shall be considered to be conducting a trip into
New York state when one of its vehicles enters New York state and
transports passengers to, from, or to and from a location in New York
state. A corporation shall not be considered to be conducting a trip
into New York state if its vehicle only makes incidental stops at
locations in the state while in transit from a location outside New York
state to another location outside New York state. The number of trips a
corporation conducts into New York state shall be calculated by
determining the number of trips each vehicle owned, leased or operated
by the corporation conducts into New York state and adding those numbers
together.

10. Election. Every corporation, joint-stock company or association
formed for or principally engaged in the conduct of a railroad
(including surface railroad, whether or not operated by steam, subway
railroad or elevated railroad), palace car, sleeping car or trucking
business or formed for or principally engaged in the conduct of two or
more of such businesses, which would be subject to article nine-A of
this chapter if the election provided for under this subdivision were
not made, may elect to be subject to the provisions of this section and,
as applicable, section one hundred eighty-four of this article, rather
than the provisions of such article nine-A. Such corporation,
joint-stock company or association must make such election by the first
day on which such corporation, joint-stock company or association would
be required to file a return or report (without regard to extensions)
under this section or section one hundred eighty-four of this article,
or section one hundred eighty-three-a or one hundred eighty-four-a of
this article, or article nine-A of this chapter. An election made
pursuant to this subdivision shall continue to be in effect until
revoked by the taxpayer. A revocation of the election to be subject to
this section and, as applicable, section one hundred eighty-four of this
article, shall be irrevocable. Such election, and a revocation thereof,
shall be made in the manner prescribed by the commissioner, whether by
regulation or otherwise. Such revocation shall apply as of the first day
of January next following the end of a taxable year with respect to
which the taxpayer had been subject to this section and, as applicable,
section one hundred eighty-four of this article, by reason of an
election made pursuant to this subdivision.