reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter C - Franchise Taxes On Insurance Corporations › Part 32 - COMBINED RETURNS › Section 32.3 - Substantial intercorporate transactions generally

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In determining whether substantial
				  intercorporate transactions among the related corporations exist, the facts and
				  circumstances of all activities and transactions will be considered regardless
				  of the transfer price for such intercorporate transactions. It is not necessary
				  that there be substantial intercorporate transactions between any one
				  corporation and every other related corporation. However, it is necessary that
				  there be substantial intercorporate transactions between the taxpayer and a
				  related corporation or collectively a group of such related
				  corporations.
(b)
(1) In determining whether there are
				  substantial intercorporate transactions, the commissioner will consider and
				  evaluate all activities and transaction of a taxpayer and its related
				  corporations, including but not limited to:
(i) manufacturing, acquiring goods or
				  property, or performing services for related corporations;
(ii) selling goods acquired from related
				  corporations;
(iii) financing sales
				  of related corporations;
(iv)
				  performing related customer services using common facilities and employees for
				  related corporations;
(v) selling
				  policies or contracts of insurance for related corporations;
(vi) reinsuring risks for related
				  corporations;
(vii) collecting
				  premiums or other consideration for any policy or contract of insurance for
				  related corporations;
(viii)
				  incurring expenses that benefit, directly or indirectly, one or more related
				  corporations; and
(ix) transferring
				  assets, including assets such as accounts receivable, patents, or trademarks
				  from one or more related corporations.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter C - Franchise Taxes On Insurance Corporations › Part 32 - COMBINED RETURNS › Section 32.4 - Substantial intercorporate transactions receipts and expenditures tests

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Subject to
				  subdivision (b) of this section, the substantial intercorporate transactions
				  requirement based on a corporation?s receipts or expenditures is met where:
(1) during the taxable years, 50 percent or
				  more of a corporation's receipts includable in the computation of entire net
				  income (excluding nonrecurring receipts) are from a related corporation or a
				  group of related corporations;
(2)
				  during the taxable year, 50 percent or more of a corporation's expenditures
				  includable in the computation of entire net income (ENI), including
				  expenditures for inventory, but excluding nonrecurring expenditures, are to a
				  related corporation or a group of related corporations; or
(3) during the taxable year:
(i) 50 percent or more of a corporation's
				  expenditures includable in the computation of ENI (excluding nonrecurring
				  expenditures) directly or indirectly benefit a related corporation or a group
				  of related corporations; or
(ii) a
				  corporation's expenditures includable in the computation of ENI (excluding
				  nonrecurring expenditures) directly or indirectly benefitting a related
				  corporation or a group of related corporations are equal to 50 percent or more
				  of the sum of such expenditures and the expenditures (excluding nonrecurring
				  expenditures) of the beneficiary corporation or corporations.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter C - Franchise Taxes On Insurance Corporations › Part 32 - COMBINED RETURNS › Section 32.7 - Filing Combined Returns

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1) As provided in this Part, a group of
				  related corporations may be required or permitted to file on a combined basis.
				  To file on a combined basis the group must file a completed combined return.
				  The first year the group files on a combined basis, and each year thereafter in
				  which the composition of the group changes, the group must include the
				  following information, with the return:
(i)
				  the exact name, address, employer identification number and the state of
				  incorporation of each corporation included in the combined return;
(ii) information showing that each of the
				  corporations meets the capital stock requirement for the taxable year;
				  and
(iii) the exact name, address,
				  employer identification number and the state of incorporation of all
				  corporations (except alien corporations) that meet the capital stock
				  requirement for the taxable year, but are not included in the combined
				  return.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter C - Franchise Taxes On Insurance Corporations › Part 32 - COMBINED RETURNS › Section 32.8 - Corporations not required or permitted to file a combined return

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A corporation
				  that is taxable under another franchise tax imposed by the Tax Law (or would be
				  taxable under another franchise tax if subject to tax).
(b) insurance corporations subject to the tax
				  imposed by section 1502-a.
(c)
				  captive insurance corporations subject to the tax imposed by section
				  1502-b.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter D - Corporate Tax Procedure And Administration › Part 36 - Erroneous Refund › Section 36.1 - Erroneous refund

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For
				  purposes of paragraph (5) of subsection (c) of section 1083 and subsection (m)
				  of section 1084  of the Tax Law, the term erroneous
				  refund means a refund which is issued as a result of an error made by an
				  employee of the Department of Taxation and Finance, including an error made in
				  an audit of the return. However, a refund in the amount requested by the
				  taxpayer on the return, including a refund of such amount issued after
				  verification of such return for mathematical error by an employee of the
				  department, is not an erroneous refund as defined in this subdivision, up to or
				  in any part of the amount claimed, since such refund is issued relying entirely
				  on the claims made therein by the taxpayer.
(b) Examples of the application of the
				  erroneous refund concept under subdivision (a) of this section include, but are
				  not limited to, the following:
Example 1:Taxpayer A claims a New York investment tax
					 credit of $4,500 on A's 1986 New York State corporation tax return. Upon
					 processing, the investment tax credit claimed is entered on the department's
					 computer as $5,400 and the department increases the refund requested by A. At a
					 later date, within the statute of limitations pursuant to section 1083  of the Tax Law, the department
					 discovers its error and issues a deficiency for the portion of the refund
					 issued in error. Since such portion of the refund previously issued occurred as
					 a result of an error made by an employee of the department, such portion is an
					 erroneous refund and interest will not be imposed on the deficiency pursuant to
					 subsection (m) of section 1084  of the Tax Law.
Example 2:Taxpayer C files a timely 1986 New York
					 corporation tax return requesting a refund. C receives a refund in the amount
					 requested. Upon audit, within the statute of limitations pursuant to section 1083  of the Tax Law, an item claimed on
					 such return is disallowed and a deficiency for the tax due is issued. Since the
					 department relied entirely on the claims made by C on the return in issuing the
					 refund in the amount requested by C, such refund is not an erroneous refund and
					 interest will be computed on the tax due pursuant to subsection (a) of section 1084  of the Tax Law.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter D - Corporate Tax Procedure And Administration › Part 37 - Miscellaneous › Section 37.1 - Consent of the Commissioner of Taxation and Finance

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1) The
				  consent of the Commissioner of Taxation and Finance must be secured by every
				  domestic corporation which seeks to:
(i)
				  dispose of all or substantially all of its assets to a new corporation (section
				  909[d] of the Business
				  Corporation Law);
(ii) merge or
				  consolidate with a foreign corporation where the surviving or consolidated
				  corporation is a foreign corporation (section
				  907[f] of the Business
				  Corporation Law);
(iii) dissolve
				  (section 1004  of the Business Corporation Law);
				  or
(iv) reinstate its corporate
				  status after being dissolved by the Secretary of State by proclamation (section
				  203-a[7] of the Tax
				  Law).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter D - Corporate Tax Procedure And Administration › Part 38 - Economic Development Zones-special Rules › Section 38.1 - Assessment

Current through Register Vol. 46, No. 28, July 10, 2024
Where a taxpayer's certification pursuant to article 18-B
					 of the General Municipal Law has been revoked, any tax due by reason of such
					 decertification may be assessed within three years after the Commissioner of
					 Taxation and Finance has received notice of such decertification from the
					 Commissioner of Economic Development as required by section 959 (a)  of the General
					 Municipal Law.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter D - Corporate Tax Procedure And Administration › Part 38 - Economic Development Zones-special Rules › Section 38.2 - Unwarranted reduction in utility costs in an empire zone (formerly, economic development zone)

Current through Register Vol. 46, No. 28, July 10, 2024
If during a taxable year a taxpayer has received a
					 reduction in the rate charged for gas, electricity, steam, or water sold, or
					 gas, electric, steam, or water service rendered, pursuant to section 186-a (8)  of the Tax Law,
					 based upon a certification as to the claiming of a credit under section 210 (19), section 1456 (e), or section 1511 (g)  of the Tax Law,
					 and it is finally determined that such taxpayer is not entitled to such credit
					 in any part, such taxpayer shall pay a penalty in an amount equal to such
					 reduction in cost, with interest from the last day of such year at the
					 underpayment rate prescribed in section 1096 (e)  of the Tax Law
					 (see Part 2393 of this Title). The Commissioner of Taxation and Finance has the
					 power, in his or her discretion, to waive, reduce, or compromise such penalty.
					 For purposes of this section, the term finally determined means a determination
					 made final when all administrative remedies have been exhausted and the
					 determination is no longer subject to judicial review.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 40 - Temporary Metropolitan Transportation Business Tax Surcharge On Transportation And Transmission Corporations Pursuant To Section 183-a Of The Tax Law › Section 40.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
Section 183-a  of the Tax Law imposes a tax
					 surcharge on every transportation and transmission corporation and association
					 subject to section 183  of the Tax Law 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 such district. For purposes of this Part, the term Metropolitan
					 Commuter Transportation District (hereinafter MCTD) embraces the City of New
					 York (Counties of Bronx, Kings, New York, Queens and Richmond) and the Counties
					 of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. The tax
					 surcharge imposed by section 183-a  of the Tax Law is computed on that
					 portion of the taxpayer's section 183 tax attributable to its business
					 activities carried on within the MCTD as determined by the rules described in
					 this Part.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 40 - Temporary Metropolitan Transportation Business Tax Surcharge On Transportation And Transmission Corporations Pursuant To Section 183-a Of The Tax Law › Section 40.2 - Rules for allocation

Current through Register Vol. 46, No. 28, July 10, 2024
Except as otherwise provided in this Part, the amount of
					 the taxpayer's section 183 tax that is subject to the surcharge imposed by
					 section 183-a  of the Tax Law is determined by
					 multiplying its section 183 tax by a fraction, expressed as a percentage. Where
					 the taxpayer's business activity is wholly conducted in the MCTD, the
					 percentage is 100 percent. The numerator of the fraction is the average gross
					 assets of the taxpayer employed in any business within the MCTD and the
					 denominator of the fraction is the average gross assets of the taxpayer
					 employed in any business within New York State. Gross assets consisting of
					 trucks and other rolling equipment of corporations principally engaged in
					 trucking are located within the MCTD in accordance with the ratio that the
					 mileage of such trucks and other rolling equipment traveled within the MCTD
					 bears to the mileage of such trucks and other rolling equipment traveled within
					 New York State. Obligations issued by the United States and cash on hand and on
					 deposit are excluded from both the numerator and denominator of the fraction.
					 The average gross assets used in determining such fraction shall be the assets
					 employed during the year preceding the privilege period for the section 183 tax
					 upon which the tax surcharge is based.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 40 - Temporary Metropolitan Transportation Business Tax Surcharge On Transportation And Transmission Corporations Pursuant To Section 183-a Of The Tax Law › Section 40.4 - Allocation for corporations principally engaged in the operation of vessels

Current through Register Vol. 46, No. 28, July 10, 2024
The amount of the section 183 tax of a corporation
					 principally engaged in the operation of vessels that is subject to the
					 surcharge imposed by section 183-a  of the Tax Law is determined by
					 multiplying its section 183 tax by a fraction, expressed as a percentage. The
					 numerator of the fraction shall consist of the aggregate number of working days
					 of the vessels the taxpayer owns or leases in all navigable lakes, rivers,
					 streams and waters within the MCTD and in MCTD territorial waters and the
					 denominator shall consist of the aggregate number of working days of all
					 vessels the taxpayer owns or leases in all navigable lakes, rivers, streams and
					 waters within New York State and in New York State territorial waters. The
					 number of working days used in determining such fraction shall be the number of
					 working days during the year preceding the privilege period for the section 183
					 tax upon which the tax surcharge is based.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 40 - Temporary Metropolitan Transportation Business Tax Surcharge On Transportation And Transmission Corporations Pursuant To Section 183-a Of The Tax Law › Section 40.5 - Discretionary adjustment of the allocation

Current through Register Vol. 46, No. 28, July 10, 2024
If it appears to the Tax Commission that the allocation
					 provided in this Part does not properly reflect the activity or business of the
					 taxpayer within the MCTD, the Tax Commission, in its discretion, may adjust the
					 allocation to more properly reflect activity or business within the
					 MCTD.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 41 - Allocation Of Gross Earnings By Telephone And Telegraph Corporations From Transmission Services › Section 41.2 - Allocation by accounting

Current through Register Vol. 46, No. 28, July 10, 2024
Where the taxpayer employs a Uniform System of Accounts, as
					 prescribed for Federal or State regulatory purposes, and, pursuant thereto,
					 separation may be determined of the portion of its gross operating revenues
					 attributable to New York State with respect to interstate and/or foreign
					 transmission services, such taxpayer must report all gross operating revenues
					 from such services attributable to New York State as reflected in all such
					 required accounts.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 41 - Allocation Of Gross Earnings By Telephone And Telegraph Corporations From Transmission Services › Section 41.3 - Allocation by formula

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  telephone or telegraph corporation which is required to allocate items of gross
				  operating revenues from interstate and foreign transmission services shall
				  allocate such revenues by totaling, worldwide, all items of gross operating
				  revenues from interstate and foreign transmission services to which the
				  allocation by accounting method cannot be feasibly applied, and multiplying
				  such worldwide total by an allocation percentage computed on the basis of a
				  formula consisting of two factors. The two factors, expressed as percentage,
				  are:
(1) the revenue-producing circuit miles
				  factor (see section
				  41.4 
				  of this Part - Computation of the revenue-producing circuit miles factor);
				  and
(2) the property factor (see
				  section
				  41.5 
				  of this Part - Computation of the property factor).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 41 - Allocation Of Gross Earnings By Telephone And Telegraph Corporations From Transmission Services › Section 41.4 - Computation of the revenue-producing circuit miles factor

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The revenue-producing circuit miles
				  factor is determined by:
(1) multiplying the
				  average length in miles of revenue-producing communications pathways within New
				  York State used in connection with interstate and/or foreign transmission
				  services by the number of revenue-producing channels within such
				  pathways;
(2) multiplying the
				  average length in miles of revenue-producing communications pathways within and
				  without New York State used in connection with interstate and/or foreign
				  transmission services by the number of revenue-producing channels within such
				  pathways; and
(3) dividing the
				  product computed in paragraph (1) of this subdivision by the product computed
				  in paragraph (2).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 41 - Allocation Of Gross Earnings By Telephone And Telegraph Corporations From Transmission Services › Section 41.5 - Computation of the property factor

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The percentage age of the taxpayer's real
				  property, tangible personal property and intangible assets within New York
				  State used in connection with interstate and/or foreign transmission services
				  is determined by dividing the average value of such property within New York
				  State by the average value of all such property within and without New York
				  State. Such property should be included only for the period covered by the
				  return. In determining this percentage, real property and tangible personal
				  property shall include real property and tangible personal property owned by
				  the taxpayer, and real property and tangible personal property rented to the
				  taxpayer.
(b) For purposes of the
				  property factor, value means the cost of such property or assets without
				  allowance for depreciation or amortization. After determining the cost of the
				  real property, tangible personal property and intangible assets, the average
				  value of such property and assets is computed on a quarterly basis. At the
				  option of the taxpayer, a more frequent basis such as monthly, weekly or daily
				  may be used. The average value of real property and tangible personal property
				  rented to the taxpayer must be determined in accordance with the provisions of
				  section
				  41.6 
				  of this Part. The same method of valuation must be used consistently with
				  respect to property within and without New York State.
(c) A proportionate part of extraterrestrial
				  property, such as communications satellites, used in connection with interstate
				  and/or foreign transmission services is deemed to be located within New York
				  State. The proportionate part of the taxpayer's extraterrestrial property
				  within New York State used in connection with interstate and/or foreign
				  transmission services is determined by:
(1)
				  ascertaining the average value of satellite repeater facilities, earth
				  stations, or other satellite communications facilities within New York State
				  used in connection with interstate and/or foreign transmission
				  services;
(2) ascertaining the
				  average value of satellite repeater facilities, earth stations, or other
				  satellite communications facilities within and without New York State used in
				  connection with interstate and/or foreign transmission services;
(3) dividing the sum computed in paragraph
				  (1) of this subdivision by the sum computed in paragraph (2); and
(4) multiplying the quotient computed in
				  paragraph (3) of this subdivision by the average value of all extraterrestrial
				  property within and without New York State.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 44 - Definition Of Utility › Section 44.1 - General meaning of utility

Current through Register Vol. 46, No. 28, July 10, 2024
Utility, as used in the law, is given a broader meaning
					 than the word usually implies. Those subject to the tax are divided into two
					 classes.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 44 - Definition Of Utility › Section 44.3 - Activities not subject to tax

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Where an owner of real property pays charges for water supplied to a building,
				  on a meter, frontage, or other basis, and in turn charges the tenant or tenants
				  in the building for the quantity of water consumed by them at the same rates as
				  he is required to pay, such owner is not considered a utility. It is not
				  material whether the arrangement with the tenants provides for payment on the
				  basis of the quantity of water submetered to them or on the basis of a
				  proportion of the total water charge to the owner, but in order not to be
				  considered a utility the owner must charge the tenants at the same rates he
				  pays and only for the portion or quantity consumed by them.
(b) Public and private limited dividend
				  housing corporations organized under the State Housing Law are not subject to
				  the tax.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.1 - Taxability of utilities of the first class

Current through Register Vol. 46, No. 28, July 10, 2024
As hereinbefore noted, utilities of the first class are
					 taxable on gross income as defined in the statute.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.2 - Methods of accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  statute imposes a tax upon the gross income for the period specified, as
				  distinguished from a tax on receipts from sales made during the specified
				  period, and may be construed to require a cash system of accounting and
				  reporting. The accounting systems of utilities under the supervision of the
				  State Department of Public Service are, it is understood, on the accrual basis.
				  The State Tax Commission, therefore, will accept reports on either the cash or
				  the accrual basis, according to the usual accounting system employed, providing
				  such accounting system correctly reflects the true gross income of the
				  reporting utility.
(b) A utility
				  keeping its accounts on the cash basis shall include in gross income cash
				  received by reason of any sale made or service rendered, all amounts allowed as
				  credits against charges for sales made or services rendered, and credits
				  allowed for property of any kind or nature.
(c) A utility keeping its accounts on the
				  accrual basis shall include in gross income all receipts accrued on its books
				  for the reporting period, but will be permitted to deduct such sums as
				  represent, for example, uncollectible accounts, returned merchandise, etc.,
				  regardless of when the sales were made or services rendered, thus achieving
				  substantially, if not exactly, the same results as would be attained by the
				  cash system of accounting and reporting. If a utility, as an established
				  practice, has made periodic charges to provide for uncollectible accounts, that
				  practice may be continued, provided the charges are reasonable. In such event,
				  a utility may not deduct an additional amount for uncollectible
				  items.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.3 - Inclusions in gross income

Current through Register Vol. 46, No. 28, July 10, 2024
The term gross income includes the following:
(a) Receipts from sales made and services
				  rendered.
(b) Profits from the sale
				  of securities.
(c) Profits from the
				  sale of real property.
(d) Profits
				  from the sale of personal property (other than merchandise).
(e) Receipts from interest, dividends and
				  royalties.
(f) Profits from any
				  transaction (except sales for resale and rentals) within this State
				  whatsoever.
(g) Receipts from
				  transportation originating in, terminating in or traversing this State, by
				  omnibuses having a seating capacity of more than seven persons, allocated
				  within this State on a passenger mileage basis.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.5 - Deductions for costs

Current through Register Vol. 46, No. 28, July 10, 2024
The law provides that receipts from sales or services shall include "cash, credits and 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".
Question 24:
An omnibus corporation expends $10,000 per month for motor fuel. May it deduct this amount from its gross receipts from transportation?
Answer:
No.
Question 25:
A gas company purchases one million cubic feet of gas at a cost of $600 and sells it to consumers for $1,100. In determining gross income, may any deduction be taken on account of the cost of the gas?
Answer:
No.
Question 26:
A utility sells an appliance which cost it $25, for $42.50. In determining gross income, may any deduction be taken on account of the cost of appliance?
Answer:
No.
Question 27:
An electric company carries motors as part of its stock in trade. It sells and installs a motor. May any deduction be taken on account of the cost of the motor or the expense of installation?
Answer:
No.
Question 28:
An electric company renders a bill of two dollars for electricity furnished a domestic consumer. May the company deduct the Federal tax imposed by section 3411(a) of the Internal Revenue Code?
Answer:
No. The Federal tax is imposed on the vendor and is a business expense, for which no deduction is allowable.
Question 29:
May a utility, which is subject to tax on its gross income under a local law of the city of Buffalo, deduct the amount of tax payable to said city in arriving at its gross income for the purpose of the State tax on utilities?
Answer:
No.
Question 30:
A telephone company receives $1.25 for a toll message, which includes 25 cents to cover the Federal tax imposed by section 3465(a) of the Internal Revenue Code. How much is required to be included in gross income?
Answer:
$1.00. The Federal tax is not part of the receipts of the company, which is merely a collecting agency of the United States.
Question 31:
May a utility deduct from its gross income the retail sales tax imposed by New York City?
Answer:
Yes. The New York City sales tax is imposed upon the purchaser, and the utility merely acts as a collecting agency of the city.
Question 32:
A telephone company installs pay stations in various premises, paying a commission on gross receipts for the privilege. May this commission be deducted in determining gross income?
Answer:
No.
Question 33:
May a telephone company deduct the cost of publishing its directory in determining gross income?
Answer:
No.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.6 - Installment and conditional sales

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Utilities frequently sell or lease
				  merchandise on installment, conditional sale and rental contracts which contain
				  a variety of different provisions. Some provide that when a certain number of
				  payments have been made, the article sold or leased becomes the property of the
				  purchaser or lessee and others provide that at any time during the life of the
				  contract the lessee has the option to purchase. Some rental contracts stipulate
				  that when the option is exercised, all rental payments shall be applied to the
				  purchase price, and others condition that some percentage of the rental paid
				  shall be so applied. It is understood that the utility on the accrual basis
				  accrues and includes in gross income the total consideration of a pure
				  installment sale and that practices differ with regard to the accounting
				  treatment given to the various forms of the conditional sale and rental
				  contracts. For purposes of accounting and reporting under this law, it is
				  immaterial whether the contract be a pure installment sale, some form of
				  conditional sale, or rental contract.
(b) A utility reporting on the accrual basis
				  shall include in gross income the amounts accrued and included in gross income,
				  according to the system of accounting employed. Where such practice is followed
				  a utility will be permitted to deduct sums not actually received on contracts
				  which are cancelled where the merchandise is repossessed but not to exceed the
				  remainder of the accrual. Such deductions will be permitted regardless of when
				  the contract was made. A utility reporting on the cash basis shall include in
				  gross income all receipts from installment, conditional sales and rental
				  contracts regardless of when the contract was made.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.7 - Nontaxable receipts from sales and services

Current through Register Vol. 46, No. 28, July 10, 2024
All receipts from sales or services are required to be
					 included in the return of gross income. Deductions may, however, be taken on
					 account of receipts which are not taxable, either for constitutional reasons or
					 statutory provisions.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.8 - Interstate and foreign commerce

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  As originally enacted there was no express provision in the law taxing or
				  exempting receipts from sales made or services rendered in interstate or
				  foreign commerce. However, by the 1951 legislative revision of highway taxes,
				  the statute was amended to define gross income and gross operating income to
				  include "receipts * * * from all transportation whether originating,
				  terminating or traversing this state, by omnibuses having a seating capacity of
				  more than seven persons, allocated on the basis of mileage within and without
				  this state, * * *" Consequently, such allocated receipts from interstate or
				  foreign transportation by omnibus are subject to tax.
(b) Irrespective of whether the receipts from
				  sales made or services rendered in interstate or foreign commerce are taxable,
				  the total receipts should be included in gross income on the return and a
				  deduction taken with a proper explanation for all or any portion thereof not
				  subject to tax.
Question 34:A utility in Binghamton, N. Y., furnishes
					 service to a consumer in Pennsylvania. Are the receipts from such a sale
					 taxable? Answer: No. The receipts should be included in gross income on the
					 return, but a deduction therefor should be taken.
Question 35:An omnibus operator charges $8.68 for
					 transporting a passenger from Albany, New York to Washington, D. C., or from
					 Washington, D. C. to Albany, New York. The distance traveled on either trip is
					 400 miles of which 150 miles is traveled in New York State. Is any portion of
					 the $8.68 taxable? Answer: Yes. The portion taxable is $3.26 computed as
					 follows:
(150/400) x $8.68 = $3.26
Question 36:An omnibus operator charges six dollars for
					 transporting a passenger between points A and B, both of which are located in
					 New York State, or six dollars for transporting a passenger between points C
					 and D, both of which are located outside New York State. The total mileage
					 traveled on either trip is 300 miles of which 250 miles is traveled in New York
					 State. Is any portion of the six dollars taxable? Answer: Yes. The portion
					 taxable is five dollars computed as follows:
(250/300) x $6 = $5
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.9 - Sales for resale

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Receipts
				  from sales or services for ultimate consumption or use by the purchaser in this
				  State are taxable, but receipts from sales for resale, as distinguished from
				  sales for consumption, are not taxable.
Question 37:
The A gas company in New York sells and delivers to the B
					 gas company in New York two million cubic feet of gas, which the B company
					 resells to consumers. Are the receipts from the sale of A to B taxable?
Answer:
No.
(b) The determination of whether a sale or
				  service is for consumption or use, or for resale, is often difficult. The
				  problem arises most frequently in the case of sales to owners or lessees of
				  loft buildings, office buildings, apartment houses, hotels, etc., where the
				  seller does not know if the product is all to be resold, or whether some of it
				  is to be resold and some used by the purchaser, and if so, how much. The
				  following method of handling such situations is suggested:
(1) The original seller shall include in its
				  gross income all receipts from such sales but may take a deduction for the
				  amount resold by the purchaser at its (the vendor's) sales price. If the
				  original seller has not, at the time the report for a given period is being
				  rendered, received information from his purchaser of the number of units
				  resold, the deduction may be claimed in a succeeding period when the
				  information is received.
(2) In
				  case the product is sold by the original seller at graduated rates, based upon
				  the quantity sold, the average sale price shall be used as the basis for
				  claiming credit on account of resales by the vendee.
(3) If a utility does not wish to use the
				  foregoing method, it may submit to the State Tax Commission, for approval, the
				  plan it desires to use.
Question 38:
A utility sells 15,000 kilowatt hours of electricity to an
					 office building during the month of July, 1950, which is billed as
					 follows:
Demand charge .......
$100
10,000 K.W.H. at four cents .......
400
5,000 K.W.H at two cents .......
100
$600
The average price per K.W.H. is, therefore, four cents. The
					 office building uses 7,000 K.W.H. and resells 8,000 K.W.H. to its tenants. How
					 should the utility determine its tax?
Answer:
The utility will
					 include $600 in its gross income for the month of July, 1950, and will, claim a
					 deduction of $320 from its gross income on account of the 8,000 K.W.H. resold
					 by the office building.
The same method will apply in the case of sales of gas,
					 steam, water or refrigeration.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.10 - Profits from the sale of securities

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The law provides that there shall be
				  included in gross income "profits from the sale of securities". Securities
				  include generally stocks, bonds, rights to stock, etc.
(b) The essential nature of the transaction
				  determines whether there is one or more sales involved. For example, a utility
				  during the reporting period sells stock in two different corporations realizing
				  a gain in one case and a loss in the other. The transaction is considered as
				  two sales and the profit is required to be included in gross income without any
				  deduction on account of the loss sustained. If, however, a utility carries a
				  block of 10,000 shares of the same securities of a corporation in its portfolio
				  and orders its broker to sell the entire block, the fact that the broker
				  executes the order by disposing of the block in several lots does not change
				  the essential nature of the transaction and make it more than one sale. In
				  determining the profit from this transaction, the net amount is required to be
				  included in gross income so that if, during the reporting period, some portion
				  of the above mentioned securities are sold at a gain and some at a loss, only
				  the net profit is taxable. This transaction is considered as one sale for
				  purposes of this tax.
Question 43:A utility sells 1,000 shares of the stock of A
					 corporation during the month of November, 1950, and realizes a profit of
					 $5,000. During the same month, it sells 500 shares of the stock of B
					 corporation and sustains a loss of $1,500. What amount is includible in gross
					 income? Answer: $5,000.
Question 44:A utility sells 100 United States Government
					 bonds and 10 bonds of the State of New York realizing a profit on each sale.
					 Must the profits on such sales be included in gross income? Answer: Yes,
					 profits on the sale of tax exempt securities are taxable.
Question 45:Is profit realized by a utility on the sale of
					 reacquired stock, or of securities of an affiliated company required to be
					 included in its gross income? Answer: Yes.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.11 - Profits from the sale of real property

Current through Register Vol. 46, No. 28, July 10, 2024
The law provides that there shall be included in gross
					 income "profits from the sale of real property growing out of the ownership or
					 use of or interest in such property".
Question 46:
A utility sold real property and incurred expenses for
					 brokerage, advertising, etc., amounting to $5,000. Are such expenses deductible
					 in determining profit?
Answer:
Yes.
Question 47:
A utility sells a long term lease on real property. Is the
					 profit on such sale to be included in gross income?
Answer:
Yes.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 45 - Gross Income › Section 45.12 - Profits from the sale of personal property

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The law requires that there shall be
				  included in gross income "profit from the sale of personal property (other than
				  property of a kind which would properly be included in the inventory of the
				  taxpayer if on hand at the close of the period for which a return is
				  made)".
(b) Excluded from
				  consideration under this heading are "sales made and services rendered",
				  including sales of merchandise forming a part of the utility's stock in trade
				  and also "sales of securities", both of which have been hereinbefore
				  considered. The quoted clause relates to the sale of other kinds of personal
				  property, as for example, sales of furniture, fixtures, machinery, equipment,
				  and other items of fixed assets not ordinarily held as a part of stock in
				  trade--a kind of personal property which would not properly be included in
				  merchandise inventory if on hand at the close of the reporting period. Profit
				  from the sale of the kind of personal property here under consideration is
				  required to be included in gross income.
Question 48:A telephone company, not engaged in
					 merchandising wire, sells 5,000 pounds of copper wire to an electric light
					 company realizing a profit on the transaction. Is such profit required to be
					 included in the gross income of the telephone company? Answer:
					 Yes.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 46 - Gross Operating Income › Section 46.1 - Taxability of utilities of the second class

Current through Register Vol. 46, No. 28, July 10, 2024
As distinguished from utilities which are subject to the
					 jurisdiction of the State Department of Public Service, utilities in the second
					 class, which are illustrated by questions and answers 1-8, inclusive, are only
					 subject to tax on gross operating income as defined in the statute. Profits
					 made by such utilities from the sale of securities, personal property, real
					 property and any other transaction, as well as receipts from interest,
					 dividends and royalties, are not subject to tax.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 46 - Gross Operating Income › Section 46.2 - Methods of accounting

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  utility in this class keeping its accounts on the cash basis will include in
				  gross operating income cash received by reason of any sale made or service
				  rendered, all amounts allowed as credits against charges for sales made or
				  services rendered, and credits allowed for property of any kind or
				  nature.
(b) A utility keeping its
				  accounts on the accrual basis will include in gross operating income all
				  receipts accrued on its books for the reporting period, but will be permitted
				  to deduct such sums as represent, for example, uncollectible accounts, returned
				  merchandise, etc., regardless of when the sales were made or services rendered,
				  thus achieving substantially, if not exactly, the same results as would be
				  attained by accounting and reporting on the cash basis.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter F - Tax On The Furnishing Of Utility Services › Part 47 - Records › Section 47.1 - Provisions of statute

Current through Register Vol. 46, No. 28, July 10, 2024
The statute provides that every utility "shall keep such
					 records of its business and in such form as the tax commission may require" and
					 that "such records shall be preserved for a period of three years" unless the
					 State Tax Commission consents to their destruction sooner.