Bill Text: NY A03416 | 2011-2012 | General Assembly | Introduced

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Bill Title: Phases out the franchise tax on business corporations that are manufacturers over a two-year period; defines terms "manufacturer" and "principally engaged".

Spectrum: Slight Partisan Bill (Democrat 11-7)

Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A03416 Detail]

Download: New_York-2011-A03416-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3416
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 25, 2011
                                      ___________
       Introduced  by  M.  of A. SCHIMMINGER, HOYT, MAGNARELLI, MAGEE -- Multi-
         Sponsored by -- M.  of  A.    HOOPER,  KOLB,  LAVINE,  PEOPLES-STOKES,
         SCHROEDER,  WEISENBERG  --  read once and referred to the Committee on
         Ways and Means
       AN ACT to amend the tax law, in relation to phasing  out  the  franchise
         tax on business corporations that are manufacturers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 208 of the tax law is amended  by  adding  two  new
    2  subdivisions 20 and 21 to read as follows:
    3    20.    THE  TERM "MANUFACTURER" SHALL MEAN A TAXPAYER WHICH DURING THE
    4  TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY  MANU-
    5  FACTURING,  PROCESSING,  ASSEMBLING, REFINING, MINING, EXTRACTING, FARM-
    6  ING, AGRICULTURE, HORTICULTURE, FLORICULTURE, VITICULTURE OR  COMMERCIAL
    7  FISHING.  MOREOVER,  FOR  PURPOSES  OF  COMPUTING  THE CAPITAL BASE IN A
    8  COMBINED REPORT, THE GROUP SHALL  BE  CONSIDERED  A  "MANUFACTURER"  FOR
    9  PURPOSES  OF  THIS ARTICLE ONLY IF THE COMBINED GROUP DURING THE TAXABLE
   10  YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH  IN THIS  SUBDI-
   11  VISION, OR ANY COMBINATION THEREOF.
   12    21.    THE  TERM  "PRINCIPALLY  ENGAGED" SHALL INCLUDE A TAXPAYER OR A
   13  COMBINED GROUP IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY  PERCENT  OF
   14  THE  GROSS RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPECTIVELY, ARE
   15  DERIVED FROM RECEIPTS FROM THE SALE OF GOODS PRODUCED BY  MANUFACTURING.
   16  IN  COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTERCORPORATE RECEIPTS
   17  SHALL BE ELIMINATED.
   18    S 2. Section 209 of the tax law is amended by adding a new subdivision
   19  11 to read as follows:
   20    11. (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO
   21  THOUSAND  TWELVE,  A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
   22  FIFTY PERCENT OF ALL TAXES IMPOSED BY THIS ARTICLE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06163-01-1
       A. 3416                             2
    1    (B) FOR ANY TAXABLE YEAR BEGINNING ON  OR  AFTER  JANUARY  FIRST,  TWO
    2  THOUSAND THIRTEEN, A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
    3  ALL TAXES IMPOSED BY THIS ARTICLE.
    4    S 3. This act shall take effect immediately and shall apply to taxable
    5  years  commencing  on  or after January 1, 2011; provided, however, that
    6  the commissioner of taxation and finance is authorized to promulgate any
    7  and all rules and regulations and take any other measures necessary  for
    8  the timely implementation of this act on its effective date on or before
    9  such date.