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 A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-2 - SPECIFIC APPORTIONMENT RULES › Section 4-2.13 - Brokerage commissions

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(b)(1))
(a) In the case of a registered securities
					 broker or dealer, receipts constituting brokerage commissions derived from the
					 execution of purchase or sale orders for securities or commodities for
					 customers shall be deemed to be generated within New York State if the
					 corporation's records indicate the mailing address of the customer who is
					 responsible for paying such commissions is in New York State.
(b) Example.
Broker X earns $10,000 in brokerage commission income
						from investment advisor Y to execute trades for investment fund Z. Investment
						advisor Y is responsible for paying the commission to Broker X but passes on
						the brokerage commission expense to its investors in the form of fees. Broker
						X's records indicate that the mailing address of investment advisor Y is within
						New York State and investment fund Z's mailing address is in state A. Because
						Investment advisor Y is the customer responsible for paying the brokerage
						commission to Broker X and its mailing address in Broker X's records is in New
						York State, $10,000 is included in both New York receipts and everywhere
						receipts.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-2 - SPECIFIC APPORTIONMENT RULES › Section 4-2.14 - Receipts from credit cards and similar activities

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(5)(c)(1)-(3))
(a) Receipts received by issuer banks from
					 credit card receivables constituting interest, and fees and penalties in the
					 nature of interest and service charges and fees from credit cards are included
					 in New York State receipts if the mailing address of the card holder in the
					 records of the issuer bank is in New York State. All such receipts are included
					 in everywhere receipts.
(b) In the
					 event that credit card receivables are purchased from an issuer bank, the
					 purchaser shall include such receipts in New York receipts if the mailing
					 address of the card holder in the records of the purchaser is in New York
					 State. All such receipts are included in everywhere receipts.
(c) Receipts from merchant discounts are
					 included in New York receipts if the merchant is located within New York State.
					 100% of receipts from merchant discounts are included in everywhere receipts.
					 In the case of a merchant with locations both within and without New York
					 State, only receipts from merchant discounts attributable to sales made from
					 locations within New York State are included in New York receipts. It shall be
					 presumed that the location of the merchant is the address of the merchant shown
					 on the invoice submitted by the merchant to the corporation.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-2 - SPECIFIC APPORTIONMENT RULES › Section 4-2.16 - Receipts from railroad, trucking and omnibus businesses

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(6))
(a) The amount of receipts received by a
					 corporation from its conduct of a railroad business (including surface
					 railroad, whether or not operated by steam, subway railroad, elevated railroad,
					 palace car, or sleeping car), trucking business or omnibus business included in
					 New York receipts is determined by multiplying the amount of receipts from such
					 business by a fraction, the numerator of which is the number of revenue miles
					 operated within New York State and the denominator of which is the total number
					 of revenue miles operated. All such receipts are included in everywhere
					 receipts.
(b) Revenue miles
					 operated while an omnibus is engaged in school bus operations must be
					 disregarded in computing the fraction.
(c) For purposes of this section, revenue
					 mile is the transportation for consideration of passengers or freight for the
					 distance of one mile. It does not include nonrevenue miles, such as deadheading
					 (driving an unladen truck).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-2 - SPECIFIC APPORTIONMENT RULES › Section 4-2.17 - Receipts from the sale of advertising

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(8))
(a) Receipts from the sale of advertising
					 encompass the following activities:
(1)
					 Receipts from providing advertising space or time in or on a medium for
					 dissemination to the public or part of the public, whether such medium is for
					 sale or for free consumption. Examples include:
(i) the sale of printed page space in a
					 magazine, newspaper, or other similar periodical;
(ii) the sale of space on or in directories,
					 bulletins, phone books, restaurant placemats, cash register receipts, maps, or
					 any other similar medium;
(iii) the
					 posting of material on billboards, buildings, or vehicles;
(iv) the sale of time in radio or television
					 broadcasts; or
(v) the sale of
					 space on a Web page, regardless of the method of compensation paid by the
					 advertiser to the Web site host.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Subpart, the following terms shall
						have the meanings indicated below.
(a)
					 Consumer means an individual or entity whose location is where the business
					 customer derives value from the digital product or digital service provided by
					 the corporation.
(b) Customer means
					 the party who enters into a transaction with the corporation for the purchase
					 of, rental of, license to use, or remote access to a digital product from the
					 corporation. A customer can be either an individual customer or a business
					 customer. In any instance in which the corporation, acting in good faith,
					 cannot reasonably determine whether the customer is an individual customer, the
					 corporation must treat the customer as a business customer.
(1) Individual customer means a customer who
					 enters into a transaction with the corporation for the purchase of, rental of,
					 license to use, or remote access to a digital product or digital service for
					 personal use, and not for a business purpose.
(2) Business customer means a customer that
					 is not an individual customer, including, but not limited to, a sole
					 proprietor, S corporation, limited liability company, limited partnership,
					 limited liability partnership, general partnership, corporation, non-profit
					 organization, trust, the U.S. Government, any foreign, state, or local
					 government, or any agency or instrumentality of such government.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.2 - General Principles

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Receipts from the sale of, rental of, license to use, or granting of remote
					 access to digital products and digital services are included in New York
					 receipts if the location where the customer derives value from the digital
					 product or digital service, according to the hierarchy of methods set forth in
					 section 210-A and paragraphs (1) through (4) of subdivision (b) of this
					 section, is in New York State. The corporation must exercise due diligence
					 under each method described in subdivision (b) of this section before rejecting
					 it and proceeding to the next method in the hierarchy, and it must base its
					 determination on information known to the corporation or information that would
					 be known to the corporation upon reasonable inquiry. 100% of such receipts are
					 included in everywhere receipts.
(b) The hierarchy of methods referenced in
					 paragraphs (1) through (4) of this subdivision used to apportion the receipt
					 from the digital product or digital service must be applied sequentially. A
					 corporation may abandon a method only if, after exercising due diligence, it
					 lacks sufficient information to apply that method.
(1) A corporation must apportion the receipt
					 to the customer's primary use location ("primary use location method"; see
					 sections 4-3.3 through
					 4-3.6  of this Subpart).
(2) A corporation must apportion the receipt
					 to the location where the digital product or service is received by the
					 customer ("where received method"; see section
					 4-3.7  of this Subpart).
(3) The corporation must apportion the
					 receipt from that digital product or service to New York State in the same way
					 as receipts from that type of digital product or service were sourced in the
					 preceding taxable year ("preceding taxable year method"; see section
					 4-3.9  of this Subpart).
(4) The corporation must apportion the
					 receipt from that digital product or service to New York State in the same way
					 as its receipts from other digital products or services in the current taxable
					 year are apportioned using the primary use location method and the where
					 received method referenced in paragraphs (1) and (2) of this subdivision
					 ("current taxable year method"; see section
					 4-3.10  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.3 - Special rules for determining primary use location

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In applying the primary use location
					 method of the hierarchy, a corporation must determine first if the type of
					 receipt must be sourced using the special rules in this section. The specific
					 criteria to apply the special rules may be met whether the digital product or
					 digital service is provided directly by the corporation or on behalf of the
					 corporation. The special rules apply to the receipts described in subdivisions
					 (b) through (e) of this section. If a corporation meets the specific criteria
					 to apply a special rule, but does not have sufficient information to apply the
					 rule, the corporation should use the rules for reasonable approximation in
					 section 4-3.5 or
					 4-3.6  of this Subpart to apply the
					 special rule. However, if the corporation does not have sufficient information
					 to apply the rules for reasonable approximation to the special rule, then the
					 special rule no longer applies.
(b)
					 Facilitation of in-person services. Services that are rendered to the body of
					 an individual or in the physical presence of an individual and, based on the
					 nature of the services, require the physical presence of an individual, are
					 considered in-person services. Receipts from digital facilitation of the
					 provision of in-person services are apportioned under the special rule in this
					 subdivision.
(1) Digital facilitation of the
					 provision of in-person services includes, but is not limited to, ride-sharing;
					 facilitating ticket sales for live entertainment and athletic performances; and
					 scheduling of in-person training or lessons.
(2) The primary use location of the
					 facilitation of in-person services is presumed to be the location where the
					 in-person service is performed.
(3)
					 In-person services do not include:
(i)
					 services that do not require significant in-person contact in order to perform,
					 but nevertheless may include in-person contact, including, but not limited to,
					 legal, accounting, financial and consulting services; and
(ii) the obligation to perform services or
					 fund the performance of services that may or may not actually occur at an
					 undetermined future date (e.g., facilitation of the purchase of insurance) is
					 not an in-person service, although significant in-person contact may ultimately
					 occur when the service is actually performed.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.4 - General rule for determining primary use location

Current through Register Vol. 46, No. 28, July 10, 2024
Unless the corporation meets the specific criteria and
						has sufficient information necessary to apply the special rules in section
						4-3.3  of this Subpart, determining
						the primary use location depends on whether the customer is an individual
						customer or a business customer.
(a)
					 Individual customer. In the case where the corporation's customer is an
					 individual, the primary use location is presumed to be at the customer's
					 billing address. If the corporation does not have the customer's billing
					 address, it must use reasonable approximation.
(b) Business customer.
(1) Except in instances where the business
					 address presumption applies, the primary use location of the corporation's
					 business customer is presumed to be in New York State to the extent the
					 information in the corporation's books and records kept in the ordinary course
					 of business, other than the billing address of the corporation's customer,
					 indicate that the customer's use of the digital product or digital service is
					 in New York State. Where the primary use location is in New York State and at
					 least one other location, the corporation should source the receipts based on
					 the percentage of use by the customer in each primary use location.
(2) The digital product or digital service is
					 primarily used at the location of a third party (i.e., the consumer) only in
					 the case of an intermediary transaction.
(3) If the corporation does not have adequate
					 information to determine where the digital product or digital service is
					 primarily used by the customer, the corporation must use reasonable
					 approximation.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.5 - Reasonable approximation based on customer information

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Where a corporation's books and records
					 kept in the ordinary course of business and reasonable inquiries to the
					 customer when required do not provide adequate information to determine the
					 customer's primary use location of a digital product or digital service, then
					 reasonable approximation based on customer information must be used to
					 determine primary use location.
(b)
					 Definition. Reasonable approximation based on customer information is an
					 alternative method used to determine the location or locations at which a
					 customer primarily uses a digital product or digital service in instances in
					 which:
(1)
(i) the location or locations where the
					 digital product or digital service is primarily used and/or the percentage of
					 use attributable to each location as a share of the total use cannot be
					 determined, or
(ii) obtaining the
					 primary use location or locations and/or the percentage of use attributable to
					 each location as a share of the total use would require the corporation to
					 expend undue effort and expense beyond the due diligence required by this
					 Subpart; and
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.6 - Reasonable approximation based on general information

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Where, after meeting the requirements of
					 due diligence, a corporation lacks sufficient information to use the rules for
					 reasonable approximation based on customer information to determine the
					 customer's primary use location of a digital product or digital service, the
					 corporation must use reasonable approximation based on general
					 information.
(b) Definition.
					 Reasonable approximation based on general information is an alternative method
					 used to determine the location at which a customer primarily uses the digital
					 product or digital service in instances inwhich a general information
					 measurement, such as the general population, a subset of the general
					 population, or some other general metric, reasonably reflects the geographic
					 distribution of the customer's primary use location.
(c) Application of reasonable approximation
					 based on general information.
(1) A
					 corporation must use statistical information, based on an appropriate metric,
					 that reasonably approximates where the customers primarily use the digital
					 product or digital service.
(2) In
					 any case in which the commissioner determines that the corporation's method of
					 approximation is not reasonable, the commissioner may substitute another
					 general information measurement that the commissioner determines is
					 appropriate. In this instance, the corporation bears the burden of
					 demonstrating that the method the commissioner prescribes is not
					 reasonable.
(3) In any case in
					 which the commissioner determines that the corporation's method of
					 approximation is reasonable, but that it has not been applied in a consistent
					 manner with respect to similar transactions, the commissioner shall require
					 that the corporation apply its method of approximation in a consistent
					 manner.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.7 - Where received method

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If,
					 after exercising due diligence, a corporation cannot determine or reasonably
					 approximate the business customer's primary use location for a digital product
					 or digital service, it should use the where received method and include the
					 receipt in New York receipts when the digital product or digital service is
					 received by the customer within New York State.
(b) The location where the digital product or
					 digital service is received is presumed to be the location at which the
					 contract of sale is managed by the customer. If the corporation cannot
					 determine the location where the contract of sale is managed by the customer,
					 then the location where the digital product is received is presumed to be the
					 billing address of the customer. If, after exercising due diligence, the
					 corporation does not have adequate information to determine where the digital
					 product or digital service is received, the corporation must apply the
					 preceding taxable year method (see section
					 4-3.9  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.8 - Rules for intermediary transactions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In the case of intermediary transactions,
					 in applying the primary use location method or the where received method of the
					 hierarchy, the location where the receipt is apportioned is based on the
					 location of the consumers, rather than the business customer. If the
					 corporation uses reasonable approximation based on the sourced receipts method
					 to source its receipts from an intermediary transaction, it may apply that
					 method taking only transactions with that particular business customer into
					 consideration.
(b) In determining
					 the primary use location or where the digital product or service is received
					 for an intermediary transaction, the corporation is required to make inquiries
					 to the business customer, but not to the consumers, regardless of the number of
					 business customers the corporation has or the percentage of receipts the
					 corporation receives from any one business customer, in order to determine the
					 amount of receipts to apportion to New York State based on the location of the
					 consumers. Such inquiries may be fulfilled by the business customer providing
					 information from its books and records to the corporation that demonstrates the
					 relevant information.
(c) If, after
					 exercising due diligence, the corporation has inadequate information to
					 determine the location of the consumers, the corporation should determine the
					 primary use location or the location where the digital product or service is
					 received based on the business customer. If, after exercising due diligence,
					 the corporation has inadequate information to determine either the location of
					 either the consumers or the business customer, the corporation then must use
					 the preceding taxable year method (see section
					 4-3.9  of this Subpart).
(d) This section does not apply in instances
					 where the business address presumption applies. In instances where the business
					 address presumption applies, the receipts shall be sourced to the billing
					 address of the business customer.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.9 - Preceding taxable year method

Current through Register Vol. 46, No. 28, July 10, 2024
If, after exercising due diligence, the corporation does
						not have adequate information to use the where received method, the corporation
						must use the preceding taxable year method and apportion the receipt based on
						how receipts from the sales of that type of digital product or digital service
						were apportioned in the preceding taxable year. The amount included in New York
						receipts for the current taxable year is determined by multiplying such
						receipts by a fraction, the numerator of which is the amount included in New
						York receipts from the sales of that type of digital product or digital service
						in the preceding taxable year and the denominator of which is the amount
						included in everywhere receipts from all such sales of that type of digital
						product or digital service in the preceding taxable year. This method of the
						hierarchy cannot apply in a corporation's first taxable year. A corporation
						that cannot use this method must use the current taxable year method (see
						section 4-3.10  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-3 - RECEIPTS FROM THE SALE OF, RENTAL OF, LICENSE TO USE, AND GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS AND DIGITAL SERVICES › Section 4-3.10 - Current taxable year method

Current through Register Vol. 46, No. 28, July 10, 2024
If, after exercising due diligence, the corporation does
						not have adequate information to use the preceding taxable year method to
						apportion the receipt, the corporation must use the current taxable year method
						to apportion the receipt based on the apportionment in the current taxable year
						of receipts from digital products and digital services that can be apportioned
						using the primary use location method and the apportionment in the current
						taxable year of receipts from digital products and digital services using the
						where received method. The amount included in New York receipts for the current
						taxable year is determined by multiplying such receipts by a fraction, the
						numerator of which is the amount included in New York receipts from all digital
						products and digital services that are apportioned using the primary use
						location method and the where received method for the current taxable year and
						the denominator of which is the amount included in everywhere receipts from
						digital products and digital services that are apportioned using the primary
						use location method and the where received method for the current taxable
						year.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(10))
For purposes of this Subpart, the following terms shall
						have the meanings indicated below.
(a)
					 Consumer means an individual or entity whose location is where the business
					 customer derives value from the service or other business activity provided by
					 the corporation.
(b) Customer means
					 the party who enters into a transaction with the corporation for the purchase
					 of a service or other business activity from the corporation. A customer can be
					 an individual customer, a business customer or a passive investment customer.
					 In any instance in which the corporation, acting in good faith, cannot
					 reasonably determine whether the customer is an individual customer, the
					 corporation must treat the customer as a business customer.
(1) Individual customer means a customer who
					 enters into a transaction with the corporation for the purchase of a service or
					 other business activity from the corporation for personal use, and not for a
					 business purpose.
(2) Business
					 customer means a customer that is not an individual customer or passive
					 investment customer, including, but not limited to, a sole proprietor, S
					 corporation, limited liability company, limited partnership, limited liability
					 partnership, general partnership, corporation, non-profit organization, trust,
					 the U.S. Government, any foreign, state, or local government, or any agency or
					 instrumentality of such government.
(3) Passive investment customer means a
					 customer that is an entity, such as a company or corporation (other than a
					 publicly traded corporation), limited partnership, general partnership, limited
					 liability company, limited liability partnership, or trust, that pools capital
					 from passive investors for the purpose of trading or making investments in
					 stocks, bonds, securities, commodities, loans, or other financial assets, but
					 that does not otherwise conduct a trade or business. Passive investment
					 customer does not include an investment company as defined in section
					 210-A(5)(d).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.2 - General Principles

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Receipts and net gains (not less than zero) from services and other business
					 activities not otherwise enumerated in section 210-A, such as net gains (not
					 less than zero) from the sale of intangible property, as well as receipts from
					 the compensation for certain services, such as commissions, finder's fees, loan
					 servicing fees, and fees for professional services are included in New York
					 receipts if the location where the customers derives value from the service or
					 other business activity, according to the hierarchy of methods set forth in
					 section 210-A and paragraphs (1) through (4) of subdivision (b) of this
					 section, is in New York State. The corporation must exercise due diligence
					 under each method described in subdivision (b) of this section before rejecting
					 it and proceeding to the next method in the hierarchy, and must base its
					 determination on information known to the corporation or information that would
					 be known to the corporation upon reasonable inquiry. 100% of such receipts are
					 included in everywhere receipts.
(b) The hierarchy of methods referenced in
					 paragraphs (1) through (4) of this subdivision used to apportion the receipt
					 from the service or other business activity must be applied sequentially. A
					 corporation may abandon a method only if, after exercising due diligence, it
					 lacks sufficient information to apply that method.
(1) A corporation must apportion the receipt
					 to the location where the benefit of the service or other business activity is
					 received ("where benefit received method"; see sections
					 4-4.3 through
					 4-4.6  of this Subpart).
(2) A corporation must apportion the receipt
					 to the delivery destination ("delivery destination method"; see section
					 4-4.7  of this Subpart).
(3) A corporation must apportion the receipt
					 in the same way as those receipts from that type of other business activity or
					 service were apportioned in the preceding taxable year ("preceding taxable year
					 method"; see section
					 4-4.9  of this Subpart).
(4) A corporation must apportion the receipts
					 from that service or other business activity to New York in the same way as its
					 receipts from other services or business activities in the current taxable year
					 are apportioned using the where benefit received method and delivery
					 destination method referenced in paragraphs (1) and (2) of this subdivision
					 ("current taxable year method"; see section
					 4-4.10  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.3 - Special rules for determining primary use location

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In determining where the benefit is
					 received, a corporation must determine first if the type of receipt must be
					 apportioned using the special rules in this section. The specific criteria may
					 be met whether the service or other business activity is provided directly by
					 the corporation or on behalf of the corporation. The special rules apply to the
					 receipts described in subdivisions (b) through (e) of this section. If a
					 corporation meets the specific criteria to apply a special rule, but does not
					 have sufficient information to apply the rule, the corporation should use the
					 rules for reasonable approximation in section
					 4-4.5 or
					 4-4.6  of this Subpart to apply the
					 special rule. However, if the corporation does not have sufficient information
					 to apply the rules for reasonable approximation to the special rule, then the
					 special rule no longer applies.
(b)
					 In-Person Services. Services rendered to the body of an individual or in the
					 physical presence of an individual and, based on the nature of the service,
					 requires the physical presence of an individual, are considered in-person
					 services. Receipts from in-person services are apportioned under the rule in
					 this subdivision. In addition, receipts from the facilitation of in-person
					 services are apportioned under the special rule in this subdivision.
(1) In-person services include, but are not
					 limited to, medical and dental services, including medical testing and x-rays;
					 childcare; hair cutting and salon services; live entertainment and athletic
					 performances; modeling; and in-person training or lessons.
(2) In-person services do not include:
(i) services that do not require significant
					 in-person contact in order to perform, but nevertheless may include in-person
					 contact, including, but not limited to, legal, accounting, or financial and
					 consulting services; and
(ii) the
					 obligation to perform services or fund the performance of services that may or
					 may not actually occur at an undetermined future date (e.g. facilitation of the
					 purchase of insurance), although significant in person contact may ultimately
					 occur when the service is actually performed.
(3) The benefit of in-person services is
					 presumed to be received at the location where the in-person service is
					 performed.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.4 - General rule for determining where the benefit is received

Current through Register Vol. 46, No. 28, July 10, 2024
Unless the corporation meets the specific criteria and
						has sufficient information necessary to apply the special rules in section
						4-4.3  of this Subpart, determining
						where the benefit is received depends on whether the customer is an individual
						customer, a business customer or a passive investment customer.
(a) Individual customer. In the case where
					 the corporation's customer is an individual, the benefit of the service or
					 other business activity is presumed to be received at the customer's billing
					 address. If the corporation does not have the customer's billing address, it
					 must use reasonable approximation.
(b) Business customer.
(1) Except in instances where the business
					 address presumption applies, the benefit of the service or other business
					 activity is presumed to be received in New York, without regard to the billing
					 address of the corporation's customer, if the customer receives the benefit of
					 the service or other business activity in New York.
(2) The benefit can be received at the
					 location of a third party (e.g., the consumer) only in the case of an
					 intermediary transaction. A third party does not include the customer's
					 employees, agents, officers, partners (in the case of a partnership), managing
					 members (in the case of a limited liability company), or shareholders (in the
					 case of a New York S corporation).
(3) Benefit received both within and without
					 New York State. Where the customer receives the benefit in New York and at
					 least one other location, the corporation should apportion the receipts based
					 on the percentage of value derived by the customer in each location where
					 benefit is received.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.5 - Reasonable approximation based on customer information

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Where a corporation's books and records
					 kept in the ordinary course of business and reasonable inquiries to the
					 customer when required do not provide adequate information for apportionment of
					 a receipt from a service or other business activity, then reasonable
					 approximation must be used to determine where the benefit is
					 received.
(b) Definition.
					 Reasonable approximation based on customer information is an alternative method
					 used to determine the location or locations at which a customer receives the
					 benefit of a service or other business activity in instances in which:
(1)
(i) the
					 location or locations where the benefit is received and/or the percentage of
					 benefit actually received in each location as a share of the total benefit
					 received cannot be determined, or
(ii) obtaining the location or locations
					 where the benefit is received and/or the percentage of benefit received in each
					 location as a share of the total benefit received would require the corporation
					 to expend undue effort and expense beyond the due diligence required by this
					 Subpart; and
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.6 - Reasonable approximation based on general information

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Where, after meeting the requirements of
					 due diligence, a corporation lacks sufficient information to use the rules for
					 reasonable approximation based on customer information to determine where the
					 customer receives the benefit of the service or other business activity, the
					 corporation must use reasonable approximation based on general
					 information.
(b) Definition.
					 Reasonable approximation based on general information is an alternative method
					 used to determine the location at which a customer receives the benefit of a
					 service or other business activity in instances in which a general information
					 measurement, such as the general population, a subset of the general
					 population, or some other general metric reasonably reflects the geographic
					 distribution of where the customer receives the benefit.
(c) Application of reasonable approximation
					 based on general information.
(1) A
					 corporation must use statistical information based on an appropriate
					 measurement that reasonably approximates the location where customers receive
					 the benefit of the service or other business activity.
(2) In any case in which the commissioner
					 determines that the corporation's method of approximation is not reasonable,
					 the commissioner may substitute the use of a method that the commissioner
					 determines is appropriate. In this instance, the corporation bears the burden
					 of demonstrating that the method the commissioner prescribes is not
					 reasonable.
(3) In any case in
					 which the commissioner determines that the corporation's method of
					 approximation is reasonable, but that it has not been applied in a consistent
					 manner with respect to similar transactions, the commissioner must require that
					 the corporation apply its method of approximation in a consistent
					 manner.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.7 - Delivery destination method

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If, after exercising due diligence, the
					 corporation cannot determine or reasonably approximate where the business
					 customer has received the benefit of a service or other business activity, it
					 should use the delivery destination method and include the receipt in New York
					 receipts when the service or other business activity is delivered to the
					 customer within New York.
(b) The
					 location where the service or other business activity is delivered is presumed
					 to be the location at which the contract of sale is managed by the customer. If
					 the corporation cannot determine the location where the contract of sale is
					 managed by the customer, then the delivery destination is presumed to be the
					 billing address of the customer. If, after exercising due diligence, the
					 corporation does not have adequate information to determine the delivery
					 destination, the corporation must use the preceding taxable year method (see
					 section 4-4.9  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.8 - Rules for intermediary transactions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In the case of intermediary transactions,
					 in applying the where benefit received method or the delivery destination
					 method of the hierarchy, the location where the receipt is apportioned is based
					 on the location of the consumers, rather than the business customer. If the
					 corporation uses reasonable approximation based on the sourced receipts method
					 to apportion its receipts from an intermediary transaction, it must apply that
					 method only taking transactions with that particular business customer into
					 consideration.
(b) In determining
					 where the benefit is received or the delivery destination, the corporation is
					 required to make inquiries to the business customer, but not to the consumers,
					 regardless of the number of business customers the corporation has or the
					 percentage of receipts from any one business customer, in order to determine
					 the amount of receipts to apportion to New York State based on the location of
					 the consumers. Such inquiries may be fulfilled by the business customer
					 providing information from its books and records to the corporation that
					 demonstrates the relevant information.
(c) If, after exercising due diligence, the
					 corporation has inadequate information to determine the location of the
					 consumers, the corporation should determine where the benefit is received or
					 delivery destination based on the business customer. If, after exercising due
					 diligence, the corporation has inadequate information to determine the location
					 of either the consumers or the business customer, the corporation must then use
					 the preceding taxable year method (see section
					 4-4.9  of this Subpart).
(d) This section does not apply in instances
					 where the business address presumption applies. In instances where the business
					 address presumption applies, the receipts shall be apportioned to the billing
					 address of the business customer.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.9 - Preceding taxable year method

Current through Register Vol. 46, No. 28, July 10, 2024
If, after exercising due diligence, the corporation does
						not have adequate information to use the delivery destination method, it should
						apportion its receipts from that service or other business activity to New York
						using the preceding taxable year method based on the apportionment of receipts
						from the sales of that type of service or other business activity for the
						preceding taxable year. The amount included in New York receipts for the
						current taxable year is determined by multiplying such receipts by a fraction,
						the numerator of which is the amount included in New York receipts from the
						sales of that type of service or other business activity in the preceding
						taxable year and the denominator of which is the amount included in everywhere
						receipts from all such sales of that type of service or other business activity
						in the preceding taxable year. This method of the hierarchy cannot apply in a
						corporation's first taxable year. A corporation that cannot use this method
						must apportion the receipt using the current taxable year method (see section
						4-4.10  of this Subpart).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-4 - RECEIPTS FROM OTHER SERVICES AND OTHER BUSINESS ACTIVITIES › Section 4-4.10 - Current taxable year method

Current through Register Vol. 46, No. 28, July 10, 2024
If, after exercising due diligence, the corporation does
						not have adequate information to use the preceding taxable year method to
						apportion the receipt, the corporation must use the current taxable year method
						to apportion the receipt based on the apportionment in the current taxable year
						of receipts from other services and other business activities that can be
						apportioned using the where benefit received method and the apportionment in
						the current taxable year of receipts from other services and other business
						activities using the delivery destination method. The amount included in New
						York receipts for the current taxable year is determined by multiplying such
						receipts by a fraction, the numerator of which is the amount included in New
						York receipts from all services and other business activities that can be
						apportioned using the where benefit received method and delivery destination
						method for the current taxable year and the denominator of which is the amount
						included in everywhere receipts from services and other business activities
						apportioned using the where benefit received method and delivery destination
						method.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 4 - APPORTIONMENT › Subpart 4-5 - [Repealed] › Section 4-5.1

Current through Register Vol. 46, No. 28, July 10, 2024