2023 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.