2023 New York Laws › TAX - Tax › Article 9 - Corporation Tax › 182 - Additional Franchise Tax on Certain Oil Companies.

§   182.  Additional  franchise  tax  on  certain  oil  companies.  1.
Notwithstanding any other provision of this chapter,  or  of  any  other
law,  for  taxable  years  ending  on or after June eighteenth, nineteen
hundred  eighty  but  before  December  thirty-first,  nineteen  hundred
eighty-three,  an  annual  tax  is hereby imposed upon every oil company
equal to two per centum of its gross receipts from all sources,  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
vertically integrated petroleum corporation or affiliate thereof  formed
for  or  engaged  in the business of importing or causing to be imported
into this state for sale in this state, extracting, producing, refining,
manufacturing, compounding or selling petroleum. 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; a vertically  integrated
petroleum corporation or affiliate thereof means any domestic or foreign
corporation,  which,  either for its own account or with affiliates: (i)
extract or produces in excess of one hundred thousand average barrels of
crude oil per day, (ii) has a refining capacity in excess of one hundred
seventy-five thousand average barrels of crude oil per  day,  and  (iii)
market  or  distributors for marketing gasoline, motor fuels, fuel oils,
and similar products derived from the refining or manufacture  of  crude
oil,  whether  such  activities are carried on directly or indirectly in
conjunction with  or  by  means  of  an  affiliate  or  affiliates;  and
affiliate means a corporation in which more than fifty per centum of the
number  of shares of stock entitling the holders thereof to vote for the
election of directors or trustees is owned, directly or  indirectly,  by
the vertically integrated petroleum corporation or affiliate thereof.
(b)  The term "gross receipts" means all receipts, 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  but  excluding  such  receipts   which   constitute
consideration  received  by  the oil company for the issuance or sale of
shares of its capital stock or money  lent  to  such  company.  Receipts
received by reason of any sale of fuel oil (excluding diesel motor fuel)
used  for  residential purposes shall not be included in gross receipts.
Provided, however, 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.
(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.
3. (a) The portion of the gross receipts  of  an  oil  company  to  be
allocated  within the state shall be determined as follows: multiply its
gross  receipts  by  an  allocation  percentage  to  be  determined   by
ascertaining  the  percentage  which  the  receipts of such oil company,
computed  on  the  cash  or  accrual  basis  according  to the method of
accounting used in the computation of its gross receipts, arising during
the period covered by its report from (1) sales of its tangible personal
property where shipments are made  to  points  within  this  state,  (2)
services performed within the state, (3) rentals from property situated,
and  royalties  from the use of patents or copyrights, within the state,
and (4) all other business receipts earned within the state, bear to the
total amount of the oil company's receipts, similarly computed,  arising
during  such  period  from  all sales of its tangible personal property,
services,  rentals,  royalties  and  all  other  business  transactions,
whether  within or without the state. Receipts received by reason of any
sale of fuel oil used for residential purposes  and  receipts  from  any
sale  for  resale  to a purchaser which is an oil company subject to tax
under this section shall be included as a receipt in the computation  of
the allocation percentage.
(b)  Where  the  tax commission decides that with respect to a certain
oil company the method prescribed above does not  fairly  and  equitably
reflect  its  gross  receipts from all sources within the state, the tax
commission shall  prescribe  methods  of  allocation  which  fairly  and
equitably reflect gross receipts from all sources within the state.
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  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 chapter 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 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  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.  Where a false or fraudulent resale certificate has been furnished
to an oil company, the corporation 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. 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.
11. If any amount of tax imposed by this section is not paid prior  to
September  first, nineteen hundred eighty-three, interest on such amount
at double the underpayment rate set by the commissioner of taxation  and
finance  pursuant to section one thousand ninety-six of this chapter, or
if no rate is set, at the rate of twelve percent per annum shall be paid
for the period from such date to the  date  paid,  whether  or  not  any
extension  of  time for payment was granted; provided, however, that the
rate charged shall not exceed  the  maximum  rate  allowed  pursuant  to
section  190.42  of  the  penal  law.  This subdivision shall apply with
respect to taxes, or any portion thereof, which are overdue on or  after
September first, nineteen hundred eighty-three and shall apply only with
respect  to  interest  computed or computable for periods or portions of
periods occurring on or after such date.
12. All taxes, interest and penalties collected or received by the tax
commission 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 of
taxation  and  finance  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  deposit  all  remaining  revenue  pursuant  to  the
provisions of subdivision one of section one  hundred  seventy-one-a  of
this chapter.