2023 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.