N.Y. Tax Law Section 184
Additional franchise tax 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. 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 local telephone business, or formed for or principally engaged in the conduct of two or more of such businesses, and every corporation, joint-stock company or association formed for or principally engaged in the conduct of surface railroad, whether or not operated by steam, subway railroad, elevated railroad, palace car, sleeping car or trucking business or formed for or principally engaged in the conduct of two or more 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 formed for or principally engaged in the conduct of a transportation or transmission business (other than a telephone business), except a corporation, joint-stock company or association formed for or principally engaged in the conduct of a surface railroad, whether or not operated by steam, subway railroad, elevated 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 and for the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing property in this state in a corporate or organized capacity, or maintaining an office in this state, shall pay a franchise tax which shall be equal to three-eighths of one percent for taxable years commencing after two thousand, upon its gross earnings from all sources within this state; except that, for taxable years commencing on or after January first, nineteen hundred ninety, every corporation, joint-stock company or association formed for or principally engaged in the conduct of local telephone business, or telegraph business shall pay a franchise tax which shall be equal to three-eighths of one percent for taxable years commencing after two thousand, upon its gross earnings from all sources within this state, except that a corporation, joint-stock company or association formed for or principally engaged in the conduct of a local telephone business shall exclude the following earnings (but not in any event earnings derived by such taxpayer from the provision of carrier access services) derived by such taxpayer from sales for ultimate consumption of telecommunications service to its customers (i) thirty percent of separately charged intra-LATA toll service (which shall also include interregion regional calling plan service) and (ii) one hundred percent of separately charged inter-LATA, interstate or international telecommunications service; and except that corporations, joint-stock companies or associations 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), navigation or any corporation formed for or principally engaged in the operation of vessels, shall pay a franchise tax which shall be equal to three-quarters of one per centum upon its gross earnings from all sources within this state, excluding earnings derived from business of an interstate or foreign character; except that for taxable years beginning in nineteen hundred ninety-seven or thereafter, in the case of a corporation, joint-stock company or association which, with respect to taxable years beginning after nineteen hundred ninety-seven, 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 which is formed for or principally engaged in the conduct of surface railroad, whether or not operated by steam, subway railroad, elevated railroad, palace car, sleeping car or trucking business or formed for or principally engaged in the conduct of two or more of such businesses, such corporation, joint-stock company or association shall pay a franchise tax which shall be equal to three-eighths of one percent for taxable years commencing after two thousand, upon its gross earnings from all sources within this state, provided that in the case of a corporation, joint-stock company or association formed for or principally engaged in the conduct of surface railroad, whether or not operated by steam, subway railroad, elevated railroad, palace car or sleeping car business, or formed for or principally engaged in the conduct of two or more of such businesses, such gross earnings shall not include earnings derived from business of an interstate or foreign character. Provided, however, with respect to railroad, elevated railroad, palace car or sleeping car business or any other corporation formed for or principally engaged in the conduct of a railroad business and 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), navigation or any corporation formed for or principally engaged in the operation of vessels where the gross earnings from such transportation business both originating and terminating within this state and traversing both this state and another state or states or country shall be subject to the franchise tax imposed by this section (except where such corporation, joint-stock company or association is formed for or principally engaged in the conduct of a railroad (including surface railroad, whether or not operated by steam, subway railroad or elevated railroad), palace car or sleeping car business or formed for or principally engaged in the conduct of two or more of such businesses, and has not made the election provided for under subdivision ten of § 183 (Franchise tax on transportation and transmission corporations and associations)section one hundred eighty-three of this article) and such earnings shall be allocated to this state in the same ratio that the mileage within the state bears to the total mileage of such business. Provided, further, a corporation, joint-stock company or association formed for or principally engaged in the transportation, transmission or distribution of gas, electricity or steam shall not be subject to tax under this section or section one hundred eighty-three of this article. The term “local telephone business” means the provision or furnishing of telecommunication services for hire wherein the service furnished by the provider thereof consists of carrier access service or the service originates and terminates within the same local access and transport area (“LATA”), a local access and transport area being that geographic area as established and approved, and as so set and in existence on July first, nineteen hundred ninety-four, pursuant to the modification of final judgment in United States v. Western Electric Company (civil action no. 82-0192) in the United States district court for the District of Columbia or within the LATA-like Rochester non-associated independent area. The term “telecommunication services” shall have the meaning ascribed to such term in § 186-E (Excise tax on telecommunication services)section one hundred eighty-six-e of this article. 1-a. Where a taxpayer is a partner, member or associate of a publicly traded partnership or an association which is subject to the tax imposed under this section, the amount to be included in such taxpayer’s gross earnings with respect to such partnership or association shall be the amount received with respect to such partnership or association which is required to be reported as dividends to the United States treasury department.

2.

(a) During the period that the state tax on motor fuel, computed without regard to any reimbursement allowable under paragraph (d) of subdivision three of § 289-C (Refunds)section two hundred eighty-nine-c of this chapter, exceeds two cents per gallon the corporations herein classed as “taxicab” and “omnibus”, other than corporations described in paragraph (b) of this subdivision, shall be taxed under the provisions of article nine-a of the tax law and as other business corporations are taxed and not upon their gross receipts.

(b)

(1) A corporation classed as a “taxicab” or “omnibus”, (i) which is organized, incorporated or formed under the laws of any other state, country or sovereignty, and

(ii)

which neither owns nor leases property in this state in a corporate or organized capacity, nor (iii) maintains an office in this state in a corporate or organized capacity, but (iv) which is doing business or employing capital in this state by conducting at least one but fewer than twelve trips into this state during the calendar year, shall not be taxed under the provisions of this article. If the only property a corporation owns or leases in this state is a vehicle or vehicles used to conduct trips, it shall not be considered, for purposes of clause (ii) of this subparagraph, to be owning or leasing property in this state. (2) For purposes of this subdivision, a corporation classed as a “taxicab” or “omnibus” shall be considered to be conducting a trip into New York state when one of its vehicles enters New York state and transports passengers to, from, or to and from a location in New York state. A corporation shall not be considered to be conducting a trip into New York state if its vehicle only makes incidental stops at locations in the state while in transit from a location outside New York state to another location outside New York state. The number of trips a corporation conducts into New York state shall be calculated by determining the number of trips each vehicle owned, leased or operated by the corporation conducts into New York state and adding those numbers together.

3.

Any corporation, joint-stock company or association formed for or principally engaged in the conduct of subway railroad, elevated railroad, or surface railroad not operated by steam, business, whose property is leased to another railroad corporation, shall only be required under this section to pay an annual tax at the rate of four and one-half per centum upon the dividends paid during the year ending on the thirty-first day of December in excess of four per centum upon the amount of its capital stock, provided, however, that for the year ending on the thirty-first day of December nineteen hundred seventy-six, as described in subdivision two of § 192 (Reports of corporations)section one hundred ninety-two of this chapter, the tax shall be paid upon dividends paid during the months of July through December of such year in excess of two per centum upon the amount of its capital stock, except that where the property leased is operated by a receiver and the gross earnings are not included with the gross earnings of the lessee for the purposes of taxation under this section, then such receiver shall be required to pay the tax upon gross earnings as hereinbefore provided.

4.

Allocation of gross earnings from transportation and transmission services.--(a) General. A transportation or transmission corporation shall determine its gross earnings from transportation and transmission services within this state (except as otherwise provided for in this subdivision) by multiplying its gross earnings from transportation and transmission within and without the state by a fraction, the numerator of which is the taxpayer’s mileage within this state and the denominator of which is the taxpayer’s mileage within and without this state during the period covered by the report or reports required by this chapter.

(b)

Corporations engaged in the operation of vessels. A corporation principally engaged in the operation of vessels shall determine its gross earnings from transportation services within this state during the period covered by the report or reports required by this chapter by multiplying its gross earnings from transportation services within and without this state by a percentage which represents the ratio of the aggregate number of working days of the vessels it owns or leases in all navigable lakes, rivers, streams and waters within this state and in New York territorial waters to the aggregate number of working days of all the vessels it owns or leases during such period.

(c)

Telephone and telegraph corporations. A telephone or telegraph corporation shall determine its gross earnings from transmission services within this state during the period covered by the report or reports required by this chapter by totaling its gross operating revenue from transmission services performed wholly within this state plus the portion of revenue from interstate and foreign transmission service attributable to this state during such report period.

(d)

All other gross earnings, if any, shall be allocated to this state in the manner prescribed by rules and regulations promulgated by the tax commission.

(e)

With respect to other types of transportation and transmission corporations or where the tax commission decides that with respect to a certain corporation the method prescribed above does not fairly and equitably reflect gross earnings from all sources within this state, the tax commission shall prescribe methods of allocation or apportionment which fairly and equitably reflect gross earnings from all sources within this state. Also, the tax commission may, in order to properly reflect gross earnings, determine the report period in which any item of gross earnings shall be included without regard to the method of accounting employed by a corporation taxable hereunder. 7-a. 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 this state is (i) the maintenance of an office in this state and for the employing of capital in this state and (ii) the use of property exclusively in interstate or foreign commerce, shall not be subject to the tax imposed by this section.

Source: Section 184 — Additional franchise tax on transportation and transmission corporations and associations, https://www.nysenate.gov/legislation/laws/TAX/184 (updated Apr. 23, 2021; accessed Nov. 29, 2025).

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N.Y. Tax Law Section 184 Additional franchise tax on transportation and transmission corporations and associations

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N.Y. Tax Law Section 184
Additional franchise tax on transportation and transmission corporations and associations