N.Y.
Tax Law Section 183-A
Metropolitan transportation business tax surcharge on transportation and transmission corporations and associations
1.
The term “corporation” as used in this section shall include an association, within the meaning of paragraph three of subsection (a) of section seventy-seven hundred one of the internal revenue code (including a limited liability company), a publicly traded partnership treated as a corporation for purposes of the internal revenue code pursuant to section seventy-seven hundred four thereof and any business conducted by a trustee or trustees wherein interest or ownership is evidenced by certificates or other written instruments. Every corporation, joint-stock company or association formed for or principally engaged in the conduct of canal, steamboat, ferry (except a ferry company operating between any of the boroughs of the city of New York under a lease granted by the city), express, navigation, pipe line, transfer, baggage express, omnibus, taxicab, telegraph, or telephone business, or formed for or principally engaged in the conduct of two or more such businesses, and every corporation, joint-stock company or association formed for or principally engaged in the conduct of a railroad, palace car, sleeping car or trucking business or formed for or principally engaged in the conduct of two or more of such businesses and which has made an election pursuant to subdivision ten of § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article, and every other corporation, joint-stock company or association principally engaged in the conduct of a transportation or transmission business, except a corporation, joint-stock company or association formed for or principally engaged in the conduct of a railroad, palace car, sleeping car or trucking business or formed for or principally engaged in the conduct of two or more of such businesses and which has not made the election provided for in subdivision ten of § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article, and except a corporation, joint-stock company or association principally engaged in the conduct of aviation (including air freight forwarders acting as principal and like indirect air carriers) and except a corporation principally engaged in providing telecommunication services between aircraft and dispatcher, aircraft and air traffic control or ground station and ground station (or any combination of the foregoing), at least ninety percent of the voting stock of which corporation is owned, directly or indirectly, by air carriers and which corporation’s principal function is to fulfill the requirements of (i) the federal aviation administration (or the successor thereto) or (ii) the international civil aviation organization (or the successor thereto), relating to the existence of a communication system between aircraft and dispatcher, aircraft and air traffic control or ground station and ground station (or any combination of the foregoing) for the purposes of air safety and navigation, shall pay 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 such corporate or organized capacity, or of maintaining an office in such district, a tax surcharge, which tax surcharge, in addition to the tax imposed by § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article, shall be computed at the rate of seventeen percent of the tax imposed under such section for such years or any part of such years after the deduction of any credits otherwise allowable under this article; provided, however, that such rates of tax surcharge shall be applied only to that portion of the tax imposed under § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article after the deduction of any credits otherwise allowable under this article which is attributable to the taxpayer’s business activity carried on within the metropolitan commuter transportation district as so determined in the manner prescribed by the rules and regulations promulgated by the commissioner.2.
The owning or holding in the metropolitan commuter transportation district by a corporation, or by a trustee or trustees included under this section within the meaning of the term corporation as hereinbefore defined, of property shall constitute doing business in the metropolitan commuter transportation district within the meaning of this section; provided, however, that the owning or holding in such district by a railroad, palace car or sleeping car corporation, business, navigation, canal, ferry, (except a ferry company operating between any of the boroughs of the city of New York under a lease granted by the city), or steamboat or any other corporation formed for or principally engaged in the operation of vessels included under this section within the meaning of the term corporation as hereinbefore defined, of property used exclusively in interstate or foreign commerce shall not constitute doing business in such district within the intent of this section. However, a corporation or such trustee or trustees shall not be deemed to be doing business, employing capital, owning or leasing property, or maintaining an office in the metropolitan commuter transportation district, for the purposes of this section, by reason of (a) the maintenance of cash balances with banks or trust companies in the metropolitan commuter transportation district, or(b)
the ownership of shares of stock or securities kept in the metropolitan commuter transportation district, if kept in a safe deposit box, safe, vault or other receptacle rented for the purpose, or if pledged as collateral security, or if deposited with one or more banks or trust companies, or brokers who are members of a recognized security exchange, in safekeeping or custody accounts, or(c)
the taking of any action by any such bank or trust company or broker, which is incidental to the rendering of safekeeping or custodian service to such corporation, or(d)
the maintenance of an office in such district by one or more officers or directors of the corporation who are not employees of the corporation if the corporation otherwise is not doing business in such district, and does not employ capital or own or lease property in such district, or(e)
the keeping of books or records of a corporation in such district if such books or records are not kept by employees of such corporation and such corporation does not otherwise do business, employ capital, own or lease property or maintain an office in such district, or(f)
any combination of the foregoing activities. Provided, further, that a railroad, palace car or sleeping car corporation, navigation, canal, ferry (except a ferry company operating between any of the boroughs of the city of New York under a lease granted by the city), steamboat, or any other corporation formed for or principally engaged in the operation of vessels whose only activity in the metropolitan commuter transportation district is (i) the maintenance of an office in such district and for the employing of capital in such district and (ii) the use of property exclusively in interstate or foreign commerce, shall not be subject to the tax surcharge imposed by this section.3.
The term metropolitan commuter transportation district as used in this section shall be defined pursuant to section twelve hundred sixty-two of the public authorities law.4.
Notwithstanding any contrary provisions of state or local law, the tax surcharge imposed under this section shall not be allowed as a deduction in the computation of any state or local tax imposed under this chapter or any chapter or local law. Furthermore, the credits otherwise allowable under this article shall not be allowed against the tax surcharge imposed by this section.5.
The report covering the tax surcharge which must be calculated pursuant to this section based upon the tax reportable on the report due by March fifteenth of any year under section one hundred eighty-three of this article, for taxable years beginning before January first, two thousand seventeen, and on the report due by April fifteenth of any year under § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article, for taxable years beginning on or after January first, two thousand seventeen, shall be filed on or before March fifteenth of the year next succeeding such year, for taxable years beginning before January first, two thousand seventeen, and on or before April fifteenth of the year next succeeding such year, for taxable years beginning on or after January first, two thousand seventeen. An extension pursuant to § 193 (Extension of time for filing report)section one hundred ninety-three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form as said commissioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this article, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer’s report for the preceding year, if such preceding year consisted of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpayer, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article are applicable to the tax surcharge imposed by this section except for section one hundred ninety-two of this article.
Source:
Section 183-A — Metropolitan transportation business tax surcharge on transportation and transmission corporations and associations, https://www.nysenate.gov/legislation/laws/TAX/183-A (updated Apr. 22, 2016; accessed Apr. 27, 2024).
