NY Tax L § 182-A (2021)
2021 New York Laws TAX - Tax Article 9 - Corporation Tax 182-A - Franchise Tax on Certain Oil Companies.

§  182-a.  Franchise  tax on certain oil companies. 1. Notwithstanding any other provision of this chapter, or of any other law, for the period beginning with taxable years commencing on or after  the  first  day  of July,  nineteen  hundred  eighty-one,  but including that portion of any taxable year commencing prior thereto to the extent of that  portion  of such  year  which includes the period which commences with the first day of July, nineteen hundred eighty-one, and ending with but not  including taxable  years  commencing  on  or after the first day of July, nineteen hundred eighty-three, but including that portion  of  any  taxable  year commencing  prior  thereto  to  the  extent of that portion of such year which includes the period which terminates with  the  thirtieth  day  of June,  nineteen  hundred  eighty-three,  an annual tax is hereby imposed upon every oil company equal to three-quarters of one per centum of  its gross receipts from sales of petroleum, or the portion thereof allocated within   the  state  as  hereinafter  provided,  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,  for  all  or  any part of each of its taxable years. In no event shall the tax imposed by this section be less  than  two  hundred  fifty dollars.   2.  As  used  in  this section: (a) The term "oil company" means every corporation formed for or  engaged  in  the  business  of  importing  or causing  to be imported (by a person other than a corporation subject to tax under this  section)  into  this  state  for  sale  in  this  state, extracting,   producing,   refining,   manufacturing,   or   compounding petroleum. Provided, however, a corporation which is principally engaged in selling fuel oil (excluding diesel motor fuel) used  for  residential purposes  shall  not  be considered an oil company. For purposes of this section, petroleum shall include, but shall not be limited to, gasoline, aviation fuel, kerosene, diesel motor fuel,  benzol,  distillate  fuels, residual oil, crude oil or any similar product.  (b)  The  term  "gross  receipts  from  sales  of petroleum" means all receipts from sales of petroleum, whether from  within  or  without  the United  States,  whether  in  cash,  credits  or property of any kind or nature, without any deduction therefrom on account of the  cost  of  the property  sold,  the cost of materials used, labor or services, or other costs, interest or discount  paid,  or  any  other  expense  whatsoever. Receipts  received  by  reason of any sale of fuel oil (excluding diesel motor fuel) or liquified or  liquifiable  gases  (except  when  sold  in containers  of  less  than  one  hundred  pounds)  used  for residential purposes shall not be included in gross receipts.   However, to prevent the multiple application of  the  tax  imposed  by this  section,  gross  receipts  shall not include the receipts from any sale for resale to a purchaser which is an oil company  subject  to  tax under  this  section. It shall be presumed that no receipts are receipts from a sale for resale to such purchaser unless such purchaser furnishes the oil company with a resale certificate in such form  and  under  such terms  and  conditions  as  the  tax  commission  may prescribe and such certificate is accepted in good faith by such oil company. In  addition, it shall be presumed that no receipts are receipts received by reason of any  sale  of  fuel  oil  (excluding  diesel motor fuel) or liquified or liquifiable gases (except when sold  in  containers  of  less  than  one hundred  pounds)  used  for  residential  purposes  unless the purchaser furnishes the oil company with a residential use  certificate,  in  such form,  at  such  times  and  under  such terms and conditions as the tax commission may prescribe, and such certificate is accepted in good faith by such oil company.  Provided, however, where a purchaser is a consumer  of such fuel oil or liquified or liquifiable gases, such purchaser shall not be required to furnish such certificate and the oil  company  making such  sale shall be required to maintain records of such transactions in such  form  and  manner as the tax commission may prescribe. In order to assist the purchaser from an oil company in completing  its  residential use certificate, the tax commission may require such other purchasers of petroleum  as  it  deems  necessary  to  furnish  their  suppliers  with residential use certificates.  (c) The term "corporation" includes a corporation, joint-stock company or association and any business  conducted  by  a  trustee  or  trustees wherein  interest  or  ownership  is  evidenced  by certificate or other written instrument.  (d) The term "taxable year" means the oil company's taxable  year  for federal  income  tax purposes, or the part thereof during which such oil company is subject to tax under this section.  (e) The term "petroleum"  shall  mean  crude  oil,  plant  condensate, gasoline,   aviation   fuel,   kerosene,   diesel  motor  fuel,  benzol, petrochemical feedstocks, distillate fuels, residual oil, and  liquified or liquifiable gases such as butane, ethylene, or propane.   3. The portion of the gross receipts from sales of petroleum of an oil company  to  be  allocated  within  the  state  shall  be  determined by multiplying such gross receipts by the ratio which  the  gross  receipts from  sales  of  petroleum where shipments are made to points within the state bear to the gross receipts from  sales  of  petroleum  within  and without  the  state. Receipts received by reason of any sale of fuel oil or liquified or liquifiable gases  used  for  residential  purposes  and receipts  received  from a sale for resale as described in paragraph (b) of subdivision two of this section shall be included as a receipt in the computation of the allocation percentage.   4. Every oil company subject to tax under this section shall keep such records of its business in such form as the tax commission may  require, and  such records shall be preserved for a period of three years, except that the tax commission may consent to  their  destruction  within  that period or may require that they be kept longer.   5.  Every  oil company subject to tax hereunder shall annually file on or before the fifteenth day of the third month following  the  close  of its  taxable  year  a  return  which shall state the gross receipts from sales of petroleum for the period covered by such return. Returns  shall be  filed  with  the  tax  commission in a form prescribed by it setting forth such information as the tax commission may  prescribe.  Every  oil company  subject to tax hereunder which ceases to exercise its franchise or to be subject to the tax imposed by this section  shall  transmit  to the  tax  commission  a  return on the date of such cessation or at such other time as the tax commission  may  require  covering  each  year  or period  for  which  no return was theretofore filed. Notwithstanding the foregoing provisions of this subdivision, the tax commission may require any oil company to file an annual return, which shall contain  any  data specified by it, regardless of whether the oil company is subject to tax under this section.   6. If any provision of this section conflicts with any other provision contained in this article, the provisions of this section shall control, but  the  provisions  of  this  article  which  do not conflict with the provisions of this section shall apply with respect to the  taxes  under this section, insofar as they are, or may be made, applicable.   7.  Any  corporation which is subject to tax under section one hundred eighty-three, one hundred eighty-four, one hundred  eighty-five  or  one hundred  eighty-six  of  this  article shall not be subject to tax under this section.    8. An oil company which is not incorporated  or  organized  under  the laws  of  this state 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  section,  by  reason  of  (a)  the maintenance  of  cash  balances  with  banks or trusts 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 of 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 oil company, or (d) the maintenance of an office in this state by one or more officers or  directors  of  the  oil company  who  are  not  employees  of  the  oil  company  if the company 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 an oil company  in  this  state  if  such  books  or records  are  not  kept  by  employees  of such oil company and such oil company 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.   9. Any receiver, referee, trustee, assignee or other fiduciary, or any officer or agent appointed by any court, who conducts  the  business  of any  oil  company shall be subject to the tax imposed by this section in the same manner and to the same extent as if the business were conducted by the agents or officers of such oil company. A dissolved  oil  company which  continues  to  conduct  business shall also be subject to the tax imposed by this section.   10. (a) Where a false or fraudulent resale certificate or  residential use  certificate  has  been  furnished to an oil company or to any other person, the corporation or person furnishing such certificate  shall  be subject  to  a  penalty  equal to three per centum of the gross receipts which would have otherwise been taxable to  such  oil  company  if  such certificate  had  not  been  furnished  to such company or to such other person. Such penalty shall be assessed, collected and paid in  the  same manner  as the addition to tax with respect to a deficiency due to fraud provided for in subsection (e) of section one  thousand  eighty-five  of this chapter is assessed, collected and paid.  (b)  If  a purchaser which is required by paragraph (b) of subdivision two of section one hundred eighty-two-a to provide  an  oil  company  or other  supplier with a residential use certificate fails to provide such certificate or provides a certificate which understates  the  amount  of fuel oil (excluding diesel motor fuel) or liquified or liquifiable gases (except  when  sold  in containers of less than one hundred pounds) used for residential purposes, unless  it  is  shown  that  such  failure  or understatement  is  due  to reasonable cause and not to willful neglect, there shall, upon notice and demand by the tax  commission  and  in  the same  manner  as tax, be paid by such purchaser a penalty of one hundred dollars for each such failure or for each  certificate  containing  such understatement;  provided,  however,  in  no  event  may  more than five thousand dollars in such penalties be imposed against such purchaser  in any calendar year.   11.  All  taxes,  interest  and penalties collected or received by the commissioner under the taxes and penalties imposed by this section shall be deposited daily in one account with such responsible  banks,  banking houses  or  trust  companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one  or more of such depositories. Such deposits shall be kept  separate  and apart  from  all  other  money in the possession of the comptroller. The comptroller shall require adequate security from all such  depositories. Of  the  total  revenue  collected  or  received under this section, the comptroller shall retain in his hands such amount  as  the  commissioner may  determine  to  be  necessary for refunds under this section, out of which amount  the  comptroller  shall  pay  any  refunds  to  which  oil companies  shall be entitled under the provisions of this section. After reserving the amount required to pay such refunds, the comptroller shall prior to April  first,  nineteen  hundred  ninety-four,  deposit  weekly forty-five  percent  of all remaining revenue in the mass transportation operating assistance fund to the credit  of  the  public  transportation systems  operating assistance account therein, and fifty-five percent of such revenue in such  fund  to  the  credit  of  the  metropolitan  mass transportation  operating  assistance  account  therein,  established by section eighty-eight-a of the state finance law, and on and after  April first,  nineteen  hundred ninety-four, after reserving the amount to pay such refunds, the comptroller shall  deposit  weekly  all  the  revenues remaining  in  such mass transportation operating assistance fund to the credit  of  such  public  transportation  systems  operating  assistance account  therein.  After  reserving  the amount to pay such refunds, the comptroller shall on and after April first, nineteen hundred ninety-six, deposit weekly forty-five percent of all remaining revenue in such  mass transportation  operating  assistance  fund to the credit of such public transportation  systems  operating  assistance  account   therein,   and fifty-five  percent  of  such revenue in such fund to the credit of such metropolitan mass transportation operating assistance account therein.