NY Tax L § 1505-A (2021)
2021 New York Laws TAX - Tax Article 33 - Franchise Taxes on Insurance Corporations 1505-A - Metropolitan Transportation Business Tax Surcharge on Insurance Corpo Rations.

§  1505-a.  Metropolitan  transportation  business  tax  surcharge  on insurance corporations.  (a) (1) Every domestic insurance  corporation  and  every  foreign  or alien  insurance  corporation,  and  every  life  insurance  corporation described in subdivision (b) of section  fifteen  hundred  one  of  this article,  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 a corporate or organized capacity, or of  maintaining  an  office  in  the metropolitan   commuter  transportation  district,  except  corporations specified in subdivision (c) of section fifteen hundred twelve  of  this article,  shall annually pay, in addition to the taxes otherwise imposed by this article, a tax surcharge on the taxes imposed under this article after the deduction  of  any  credits  otherwise  allowable  under  this article  as allocated to such district. Such taxes shall be allocated to such  district  for  purposes  of  computing  such  tax  surcharge  upon taxpayers  subject  to  tax  under  subdivision  (b)  of section fifteen hundred ten of this article by applying the methodology, procedures  and computations  set  forth  in subdivisions (a) and (b) of section fifteen hundred four of this article, except that references to  terms  denoting New   York   premiums,  and  total  wages,  salaries,  personal  service compensation and commissions within New York shall be read  as  denoting within  the  metropolitan  commuter  transportation  district  and terms denoting total premiums and  total  wages,  salaries,  personal  service compensation and commissions shall be read as denoting within the state. If  it  shall  appear  to  the  commissioner that the application of the methodology, procedures and computations set forth in such  subdivisions (a)  and  (b) does not properly reflect the activity, business or income of a taxpayer within the metropolitan commuter transportation  district, then  the  commissioner  shall  be  authorized,  in  the  commissioner's discretion, to adjust such methodology, procedures and computations  for the purpose of allocating such taxes by:  (A) excluding one or more factors therein;  (B)  including  one  or  more other factors therein, such as expenses, purchases, receipts other  than  premiums,  real  property  or  tangible personal property; or  (C)  any  other similar or different method which allocates such taxes by  attributing  a  fair  and  proper  portion  of  such  taxes  to  the metropolitan  commuter  transportation  district.  The commissioner from time to time shall publish all rulings of general public  interest  with respect  to any application of the provisions of the preceding sentence. The  commissioner  may  promulgate  rules  and  regulations  to  further implement the provisions of this section.  (2)  Such  taxes  shall  be allocated to such district for purposes of computing such tax surcharge upon taxpayers subject to tax under section fifteen hundred two-a of  this  article  pursuant  to  a  fraction,  the denominator  of  which shall be the direct premiums subject to tax under section fifteen hundred ten of this article, and the numerator of  which shall  be  the  direct  premiums  subject  to  tax under section fifteen hundred ten of this  article  that  are  written  on  risks  located  or resident in the metropolitan commuter transportation district, including premiums  written,  procured  or  received  in the metropolitan commuter transportation district on business that cannot be specifically assigned as located or resident  in  an  area  of  New  York  state  outside  the metropolitan  commuter  transportation  district, or in another state or states; provided, however, in the case of  special  risk  premiums,  the numerator  shall  include  only  those  premiums  written,  procured  or received  in  the  metropolitan  commuter  transportation  district   on  property  or  risks  located  or  resident  in the metropolitan commuter transportation district. If it shall appear to the commissioner that the application of the methodology, procedures and computations set forth in this  paragraph  does  not  properly  reflect  the activity, business or income of a taxpayer within  the  metropolitan  commuter  transportation district,   then   the   commissioner   shall   be  authorized,  in  the commissioner's discretion, to adjust such  methodology,  procedures  and computations  for the purpose of allocating such taxes by: (A) excluding the factor therein and including one  or  more  other  factors  such  as expenses,  purchases,  receipts  other  than  premiums, real property or tangible personal property; or (B) any other similar or different method which allocates such taxes by attributing a fair and proper  portion  of such  taxes  to  the  metropolitan commuter transportation district. The commissioner from time to time shall  publish  all  rulings  of  general public interest with respect to any application of the provisions of the preceding   sentence.   The   commissioner   may  promulgate  rules  and regulations to further implement the provisions of this section.  (3) Such tax surcharge shall be computed  at  the  rate  of  seventeen percent of the taxes imposed under sections fifteen hundred one, fifteen hundred  two-a,  and  fifteen hundred ten of this article, as limited or otherwise determined by  subdivision  (a)  or  (b)  of  section  fifteen hundred  five  of this article, as allocated to such district, after the deduction  of  any  credits  otherwise  allowable  under  this  article. Provided  however,  that  for  taxable years commencing on or after July first, two thousand, and in the case of taxpayers subject to  tax  under section fifteen hundred two-a of this article, for taxable years of such taxpayers  beginning  on  or  after  July first, two thousand and before January first, two thousand three, such surcharge shall be calculated as if (i) the rate of the tax computed under paragraph one  of  subdivision (a)  of section fifteen hundred two of this article was nine percent and (ii) the rate of the limitation on tax  set  forth  in  section  fifteen hundred  five  of this article for domestic, foreign and alien insurance corporations except life insurance corporations was two  and  six-tenths percent.  (b)  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.  (c) 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. The credits set forth in section fifteen hundred eleven of this  article  shall  not  be  allowed against the tax surcharge imposed by this section.  (d)  (1) If, by the laws of any state other than this state, or by the action of any public official of such other state, any insurer organized or domiciled in this state,  or  the  duly  authorized  agents  thereof, subject  to  the business tax surcharge imposed by this section shall be required to pay taxes for the privilege of doing business in such  other state  which  taxes are imposed or assessed because of the taxes imposed or assessed under this section, in computing the  tax  imposed  by  this section  a credit shall be allowed for taxes paid to other states, which credit shall be determined pursuant to the provisions of  this  section; provided, however, the credit allowed any insurer under this subdivision shall  in  no  event  be  greater than the tax surcharge payable by such insurer pursuant to this section for the taxable year  with  respect  to which such amount has been imposed or assessed by such other states.  (2)  In addition to any other requirements of this article, an insurer claiming a credit under this subdivision shall  attach  to  the  returns  required pursuant to this section and section fifteen hundred fifteen of this  article a computation identifying the credit attributable to taxes paid to other states because  of  the  tax  surcharge  imposed  by  this section,  which  credit  shall be further broken down to reflect amounts and taxable years to which the retaliatory  taxes  giving  rise  to  the credit  relate.  The  credit  attributable to taxes paid to other states because of the tax surcharge  imposed  by  this  section  shall  be  the difference between: (i) the credit which would be claimed by the insurer pursuant  to  subdivision  (c) of section fifteen hundred eleven of this chapter if the tax surcharge imposed by this section were  permitted  in the  computation of such credit, and (ii) the credit which is claimed by such insurer pursuant to such subdivision (c).  (3) To the  extent  not  inconsistent  with  the  provisions  of  this subdivision,  the  provisions of paragraphs four and five of subdivision (c) of section fifteen hundred eleven of this chapter shall  apply  with respect to the credit allowed under this subdivision.  (4)  No  credit  against  taxes  paid  to  other  jurisdictions  under subdivision (c) of section fifteen hundred eleven of this article  shall be  allowed  for  any  taxes  paid  under  this  section by any domestic insurance corporation, including life insurance corporations subject  to tax under this section.  (e)  The  provisions  concerning returns under section fifteen hundred fifteen of this article shall be applicable to this section, except that for purposes of an automatic extension  for  six  months  for  filing  a return  covering  the  tax  surcharges  imposed  by  this  section, such automatic extension shall be allowed only if a taxpayer files  with  the commissioner  an  application  for  extension in such form and manner as said commissioner may prescribe by regulation and such taxpayer 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 required to be paid under this section for the applicable period, or not less  than  the  tax  surcharge  shown  on the taxpayer's return for the preceding taxable year, if such preceding taxable  year  was  a  taxable year  of  twelve months. The tax surcharge imposed by this section shall be payable to the commissioner  in  full  at  the  time  the  return  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  return  is  required to be filed, provided such tax surcharge of such domestic, foreign or alien insurance corporation including  life  insurance  corporations,  as  described  in subdivision (b) of section fifteen hundred one of this article, 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 return is required to be filed, shall nevertheless be  payable at such time. All of the provisions of this article presently applicable are applicable to the tax surcharge imposed by this section.