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This entry was published on 2016-04-22
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SECTION 183-A
Metropolitan transportation business tax surcharge on transportation and transmission corporations and associations
Tax (TAX) CHAPTER 60, ARTICLE 9
§ 183-a. Metropolitan transportation business tax surcharge on
transportation and transmission corporations and associations.

1. 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. Every
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 such businesses, and every 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 section one
hundred eighty-three of this article, and every other 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 section one hundred eighty-three of this article, 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 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 such corporate or organized capacity, or of
maintaining an office in such district, a tax surcharge, which tax
surcharge, in addition to the tax imposed by section one hundred
eighty-three of this article, shall be computed at the rate of seventeen
percent of the tax imposed under such section for such years or any part
of such years after the deduction of any credits otherwise allowable
under this article; provided, however, that such rates of tax surcharge
shall be applied only to that portion of the tax imposed under section
one hundred eighty-three of this article after the deduction of any
credits otherwise allowable under this article which is attributable to
the taxpayer's business activity carried on within the metropolitan
commuter transportation district as so determined in the manner
prescribed by the rules and regulations promulgated by the commissioner.

2. The owning or holding in the metropolitan commuter transportation
district by a corporation, or by a trustee or trustees included under
this section within the meaning of the term corporation as hereinbefore
defined, of property shall constitute doing business in the metropolitan
commuter transportation district within the meaning of this section;
provided, however, that the owning or holding in such district 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 hereinbefore defined, of property used
exclusively in interstate or foreign commerce shall not constitute doing
business in such district within the intent of this section. However, a
corporation or such trustee or trustees shall not be deemed to be doing
business, employing capital, owning or leasing property, or maintaining
an office in the metropolitan commuter transportation district, for the
purposes of this section, by reason of (a) the maintenance of cash
balances with banks or trust companies in the metropolitan commuter
transportation district, or (b) the ownership of shares of stock or
securities kept in the metropolitan commuter transportation district, 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 such
district 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 such district, and does not employ capital or own or
lease property in such district, or (e) the keeping of books or records
of a corporation in such district 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 such district, or (f) any combination of the foregoing activities.
Provided, further, that a railroad, palace car or sleeping car
corporation, 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), steamboat, or any other corporation formed for or
principally engaged in the operation of vessels whose only activity in
the metropolitan commuter transportation district is (i) the maintenance
of an office in such district and for the employing of capital in such
district and (ii) the use of property exclusively in interstate or
foreign commerce, shall not be subject to the tax surcharge imposed by
this section.

3. 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.

4. 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. Furthermore, the credits
otherwise allowable under this article shall not be allowed against the
tax surcharge imposed by this section.

5. The report covering the tax surcharge which must be calculated
pursuant to this section based upon the tax reportable on the report due
by March fifteenth of any year under section one hundred eighty-three of
this article, for taxable years beginning before January first, two
thousand seventeen, and on the report due by April fifteenth of any year
under section one hundred eighty-three of this article, for taxable
years beginning on or after January first, two thousand seventeen, shall
be filed on or before March fifteenth of the year next succeeding such
year, for taxable years beginning before January first, two thousand
seventeen, and on or before April fifteenth of the year next succeeding
such year, for taxable years beginning on or after January first, two
thousand seventeen. An extension pursuant to section one hundred
ninety-three of this article shall be allowed only if a taxpayer files
with the commissioner an application for extension in such form as said
commissioner may prescribe by regulation and 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 surcharge required to
be paid under this section for the applicable period, or not less than
the tax surcharge shown on the taxpayer's report for the preceding year,
if such preceding year consisted of twelve months. The tax surcharge
imposed by this section shall be payable to the commissioner in full at
the time the report 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 report is required
to be filed, provided such tax surcharge of a domestic corporation which
continues to possess its franchise 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 report is
required to be filed, shall nevertheless be payable at such time. All of
the provisions of this article presently applicable to section one
hundred eighty-three of this article are applicable to the tax surcharge
imposed by this section except for section one hundred ninety-two of
this article.