NY Tax L § 183 (2021)
2021 New York Laws TAX - Tax Article 9 - Corporation Tax 183 - Franchise Tax on Transportation and Transmission Corporations and Associations.

§  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.