Legislation

Search OpenLegislation Statutes
This entry was published on 2016-04-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 197-B
Payments of estimated tax
Tax (TAX) CHAPTER 60, ARTICLE 9
§ 197-b. Payments of estimated tax. 1. (a) For taxable years beginning
on or after January first, nineteen hundred seventy-seven, every
taxpayer subject to tax under section one hundred eighty-four, one
hundred eighty-six-a or one hundred eighty-six-e of this article, must
pay in each year an amount equal to (i) twenty-five percent of the tax
imposed under each of such sections for the second preceding taxable
year if the second preceding year's tax exceeded one thousand dollars
but was equal to or less than one hundred thousand dollars, or (ii)
forty percent of the tax imposed under any of these sections for the
second preceding taxable year if the second preceding year's tax
exceeded one hundred thousand dollars. If the second preceding year's
tax under section one hundred eighty-four, one hundred eighty-six-a or
one hundred eighty-six-e of this article exceeded one thousand dollars
and the taxpayer is subject to the tax surcharge imposed by section one
hundred eighty-four-a or one hundred eighty-six-c of this article,
respectively, the taxpayer must also pay in each such year an amount
equal to (i) twenty-five percent of the tax surcharge imposed under such
section for the second preceding taxable year if the second preceding
year's tax exceeded one thousand dollars but was equal to or less than
one hundred thousand dollars, or (ii) forty percent of the tax surcharge
imposed under that section for the second preceding taxable year if the
second preceding year's tax exceeded one hundred thousand dollars. The
amount or amounts must be paid with the return or report required to be
filed with respect to the tax or tax surcharge for the preceding taxable
year or with an application for extension of the time for filing the
return or report, for taxable years beginning before January first, two
thousand sixteen. The amount or amounts that must be paid with respect
to the tax or tax surcharge for the second preceding year must be paid
on or before the fifteenth day of the third month following the close of
the taxable year, for taxable years beginning on or after January first,
two thousand sixteen.

(b) Notwithstanding any other provision of this article to the
contrary, any taxpayer required under this subdivision to pay an amount
equal to twenty-five percent of its tax for the taxable year ending on
December thirty-first, nineteen hundred seventy-six shall compute such
amount as if its tax for such taxable year were determined on the basis
of its gross earnings, dividends paid, gross income or gross operating
income, as the case may be, for either the preceding twelve months
ending on such date or for the period from the date of its incorporation
under the laws of this state or the date it commenced carrying on or
doing business in New York to and including December thirty-first,
nineteen hundred seventy-six, if such date of incorporation or
commencement of the carrying on or doing business was within the twelve
months immediately preceding December thirty-first, nineteen hundred
seventy-six.

2. The estimated tax or estimated tax surcharge for each taxable year
with respect to which a declaration of estimated tax or a declaration of
estimated tax surcharge, respectively, is required to be filed under
this article shall be paid, in the case of a taxpayer which reports on
the basis of a calendar year, as follows:

(a) If the declaration is filed on or before June fifteenth, the
estimated tax or estimated tax surcharge shown thereon, after applying
thereto the amount, if any, paid during the same taxable year pursuant
to subdivision one of this section, shall be paid in three equal
installments. One of such installments shall be paid at the time of the
filing of the declaration, one shall be paid on the following September
fifteenth, and one on the following December fifteenth.

(b) If the declaration is filed after June fifteenth and not after
September fifteenth of such taxable year, and is not required to be
filed on or before June fifteenth of such year, the estimated tax or
estimated tax surcharge shown on such declaration, after applying
thereto the amount, if any, paid during the same taxable year pursuant
to subdivision one of this section, shall be paid in two equal
installments. One of such installments shall be paid at the time of the
filing of the declaration and one shall be paid on the following
December fifteenth.

(c) If the declaration is filed after September fifteenth of such
taxable year, and is not required to be filed on or before September
fifteenth of such year, the estimated tax or estimated tax surcharge
shown on such declaration, after applying thereto the amount, if any,
paid in respect of such year pursuant to subdivision one of this section
shall be paid in full at the time of the filing of the declaration.

(d) If the declaration is filed after the time prescribed therefor, or
after the expiration of any extension of time therefor, paragraphs (b)
and (c) of this subdivision shall not apply and there shall be paid at
the time of such filing all installments of estimated tax or estimated
tax surcharge payable at or before such time, and the remaining
installments shall be paid at the times at which, and in the amounts in
which, they would have been payable if the declaration had been filed
when due.

3. If any amendment of a declaration is filed, the remaining
installments, if any, shall be ratably increased or decreased (as the
case may be) to reflect any increase or decrease in the estimated tax or
estimated tax surcharge by reason of such amendment, and if any
amendment is made after September fifteenth of the taxable year, any
increase in the estimated tax or estimated tax surcharge by reason
thereof shall be paid at the time of making such amendment.

4. Any amount paid pursuant to subdivision one shall be applied as a
first installment against the estimated tax or estimated tax surcharge,
respectively, of the taxpayer for the taxable year shown on the
declaration required to be filed pursuant to section one hundred
ninety-seven-a of this chapter, or if no declaration is filed pursuant
to such section, any such amount shall be considered a payment on
account of the tax or tax surcharge shown on the return or report
required to be filed by the taxpayer for such taxable year.

5. Notwithstanding the provisions of section one thousand eighty-eight
of this chapter or section sixteen of the state finance law, if an
amount paid pursuant to subdivision one of this section exceeds the tax
or tax surcharge, respectively, shown on the return or report required
to be filed by the taxpayer for the taxable year during which such
amount was paid, interest shall be allowed and paid on the amount by
which the amount so paid pursuant to subdivision one exceeds such tax or
tax surcharge, at the overpayment rate set by the commissioner of
taxation and finance pursuant to subdivision (e) of section one thousand
ninety-six or, if no rate is set, at the rate of six percent per annum,
from the date of payment of the amount so paid pursuant to such
subdivision one to the fifteenth day of the third month following the
close of the taxable year, provided, however, that no interest shall be
allowed or paid under this subdivision if the amount thereof is less
than one dollar.

6. As used in this section, "the second preceding year's tax" means
the tax imposed upon the taxpayer by section one hundred eighty-four,
one hundred eighty-six-a or one hundred eighty-six-e of this article for
the second preceding taxable year.

7. This section shall apply to a taxable period of less than twelve
months in accordance with regulations of the tax commission.

8. The commissioner of taxation and finance may grant a reasonable
extension of time, not to exceed six months, for the payment of any
installment of estimated tax or estimated tax surcharge required
pursuant to this section, on such terms and conditions as he may
require, including the furnishing of a bond or other security by the
taxpayer in an amount not exceeding twice the amount for which any
extension of time for payment is granted, provided, however, that
interest at the underpayment rate set by the commissioner pursuant to
subdivision (e) of section one thousand ninety-six or, if no rate is
set, at the rate of six percent per annum for the period of the
extension, shall be charged and collected on the amount for which any
extension of time for payment is granted under this subdivision.

9. A taxpayer may elect to pay any installment of estimated tax or
estimated tax surcharge prior to the date prescribed in this section for
payment thereof.

10. The provisions of this section shall apply to taxable periods of
twelve months other than a calendar year by the substitution of the
months of such fiscal year for the corresponding months specified in
such provisions.

11. Any amount paid pursuant to paragraph four of subsection (c) of
section six hundred fifty-eight of this chapter on behalf of a taxpayer
subject to tax under this article shall be applied against the estimated
tax of the taxpayer for the taxable year shown on the declaration
required to be filed pursuant to section one hundred ninety-seven-a of
this article, or if no declaration is filed pursuant to such section,
any such amount shall be considered a payment on account of the tax
shown on the report required to be filed by the taxpayer for such
taxable year.