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 4-2.3 - Receipts from rents and royalties

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210-A(3))
(a)
(1)
					 Receipts from rentals of real and tangible personal property located in New
					 York State are included in New York receipts. 100% of receipts from rentals of
					 real and tangible personal property are included in everywhere
					 receipts.
(2) Receipts from rentals
					 include all amounts received by the corporation for the use of or occupation of
					 tangible personal property or real property, whether or not such property is
					 owned by the corporation.
(3) Gross
					 receipts from real and tangible personal property that is subleased from the
					 corporation must be included in the BAF.
(4) The amount of receipts from the rental of
					 motor vehicles and other rolling stock, such as trucks or construction
					 equipment, included in New York receipts is the product of such receipts and a
					 fraction. Such fraction may be based on miles operated in New York State
					 compared to total miles operated, time operated in New York State compared to
					 total time operated, number of pickup and delivery locations in New York State
					 compared to the total of such locations, or any other method that fairly
					 apportions such receipts to New York State. 100% of the receipts from the
					 rental of motor vehicles and other rolling stock, such as trucks or
					 construction equipment, are included in everywhere receipts. Omnibus operations
					 while engaged in school bus operations must be disregarded in computing the
					 amount of New York receipts and everywhere receipts.
(5) Examples.
Example 1: Corporation W receives $20,000 from its
						customer to provide transportation by omnibus from a location in New York State
						to a location outside of New York. Such transportation is not for school bus
						operations. 25% of the miles traveled by Corporation W's omnibus are in New
						York, 5 miles in New York State out of a total 20 miles. Corporation W must
						include $5,000 in New York receipts (25% x $20,000). $20,000 is included in
						everywhere receipts.
Example 2: Corporation X receives $500 from customer A
						and $300 from customer B for short-term automobile rentals. Customer A picks up
						the automobile at Corporation X's New York location and returns it to such
						location. As both the pickup and return locations are in New York State for
						customer A, the $500 from customer A is included in New York receipts and
						everywhere receipts. Customer B picks up the automobile at Corporation X's New
						York location but returns it to Corporation X's location outside of New York
						State. As half of the pickup and return locations are in New York State, half
						of the receipts from customer B, $150, is included in New York receipts and
						$300 is included in everywhere receipts. Corporation X has a total of $650 of
						New York receipts, $500 from customer A and $150 from customer B. It has $800
						in everywhere receipts, $500 from customer A and $300 from customer B.