The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-19
SENATE PASSES N. Y.
INCOME TAX BILL


-----------------
Continued from Ftrst Pope.
-
be construed according 10 tho method oil
accounting Upon the basis OF which the
net income 10 computed under this
article
The term received" for the purpose
Of the computation Of net income under
this article, means received or accrued,
and the term received or accrued" shall
he construed according 10 the method oil
accounting upon the basis OF which thu
net income In computed under this ar
ticle.
The word "residsnt" applies only Il
natural persons, ana includes. for thu
purpose Of determining liability to tht
tax imposed by this article, or with
reference TO the income Of any taxable
year. commencing with the year 1918
any person VINO shall. at any time within
the first sin months OF the neSt succeed
ing calendar year. be or become resi-
dent OF the state.
The word dividend" means any dis
tribution made by corporation out o,
It's earnings or profits 10 its sharshold'
ers or members. whether In cash or II
other property or In stock OF the cor
poration.
The words foreign country" or FOR
eIsn government" mean any 5urisdictior
other than one embraced within ths
United States. The words United states
include the States. the Territories o,
Alaska and Hawaii and the District o.
Columbia.
niiI's Principal Provisions.
a
3sI. Imposition Of income tax--A TAI
is hereby imposed upon every resident o.
the State, which tar shall be levied, col
lsotsd and paid annually Upon and Will
respeutssto his entire net income a
herein defined at rates as follows;
One Ter centun OF the amount OF me-
income not exceeding $4,000;
Two per centum Of the amount OF IN
come in excess of $4,000, but not II
excess of $4,000;
Three per cent Of the amount OF No
income in excess Of $4,000.
A like tax Is hereby imposed and sinai
be levied, collected and paid annual,
at the rates specified in this seotiof
upon and with respect to the entire ne
income as herein Defined. except a
hereinafter provided. from all propert,
owned and from every business, TRADE
profession Ut VsCuphttSi eothh'e Va =
this State by natural persons not resi-
dents of the State. Such tax shall mrs
be levied, collected and paid In th'
year 1920 upon and with respect TO tn
taxable income for the calendar yea
1919. or Tor any taxable year endint
during the year 1919.
Personal Property Exon ptiens.
$50. Exemption Of certain persona
property from taxation--The taxes I'm
posed by this article are In addition
TO all other taxes imposed by law, es
cept that money on hand, on deposit Of
at interest. bonds. notes, and chossi
In action and shares Of stock in cor
pora tons other than banks and bankint
associations. owned by any individuA
or constituting part OF trust o.
estate subject TO the income tax i'm
posed by this article. shall not aftsi
July 81, 1919. be included In the valua
ton of the personal property included
In the assessment-rolls OF the severA
tax districts. villages. school district
and special tax districts OF the State.
asa. Ascsrtainment OF gain and loss
For the purpose OF sscertaining the gall
derived or loss sustained from the sal,
or other disposition Of property. real
personal or mixed, the basis shall b.
nESt. IN CHSt Oh properly dStafou pNhoi
January 1. 1919. the fair market price o.
value of such property, as Of Januar!
4, 1919, and second. in case Of propert!
acquired on or after that date, the cos
thereof; or the inventory value. II tn
inventory is made In accordance will
this article.
354. Exchange OF property - whsi
property IL exchanged for other property
the property received in exchange BhAl
for the purpose OF determining gain o
loss he treated as the equivalent OF oas'
to the amount of its fair market value
| IL any; but when in connection with IN
reorganization, merger or consolidation
az corporation a taxpayer receives. u
place Of stock or securities owned b.
him, new stock or securities OF no create
aggregate par or face value, no gain o
loss shall be deemed TO occur from tn
| exchange, and tho new stock or securi
! ties received shall be treated A. takin
! tho place Of the stock, securities or prop
| erty excha 1ged.
355 G,.ir through exchange--When Il
the case o. any such reorganization
merger or consolidation the aggregAt
| par or face value Of the new stock or &c
| curities received is In excess OF the az
! gregate par or face value OF the stoc
or securities exchanged. n like amour
| in par or face value of the new stock o
securities received shall he treated q
! taking the place OF the stock or securitie
exchanged and the amount Of the 81
cess in par or face value shall be treat
| ed as a gain to the extent that the fac
market value OF the new stock or securl
| ties Is greater than the cost Of the stOc
or securities exchanged, II acquired on o
after January l, 1919. and its fair mar
| ket price or value as OF January !, 1S1!
! II acquired before that day.
| ~
Method OF Taking Inventory.
856. Inventory---Whenever In the opir
ion of the Comptroller the use OF inver
| tories Is necessary in order clearly TO "a
termine the income of any taxpayer. In
ventories shall be taken by such taxpayt
upon such basis as the commission ma
prescribe, conforming as nearly as ma
be to the best accounting practice in tn
trade or business and most clearly RI
'ecting the income. and conforming $
far as may be TO the forms and method
prescribed by the United States Com
missioner Of Internal Revenue under tbs
act OF Congress known AZ the Revenu
Act of 1913,
357. Not income dehnsd--'rho teri
met income" means the gross income Z
a taxpayer less the deductions Above
by this article.
How Net Income IL Com puted.
35s. Computation Of net income:
| |. The net income shall be compute
upon tho basis OF the taxpayers arnui
accounting period (fscal year or caller
81. ~. 49, a..