Bill Text: NY A02813 | 2009-2010 | General Assembly | Amended

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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: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2010-06-24 - print number 2813a [A02813 Detail]

Download: New_York-2009-A02813-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        2813--A
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 21, 2009
                                      ___________
       Introduced  by  M.  of A. SCHIMMINGER, DelMONTE, KOON, HOYT, MAGNARELLI,
         MAGEE -- Multi-Sponsored by -- M. of  A.  CHRISTENSEN,  HOOPER,  KOLB,
         LAVINE,   PEOPLES-STOKES,  SCHROEDER,  WEISENBERG  --  read  once  and
         referred to the Committee on Ways and  Means  --  recommitted  to  the
         Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
         --  committee  discharged,  bill amended, ordered reprinted as amended
         and recommitted to said committee
       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:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03808-03-0
       A. 2813--A                          2
    1    11. (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO
    2  THOUSAND  ELEVEN,  A TAXPAYER WHO IS A MANUFACTURER SHALL BE EXEMPT FROM
    3  FIFTY PERCENT OF ALL TAXES IMPOSED BY THIS ARTICLE.
    4    (B)  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
    5  THOUSAND TWELVE, A TAXPAYER WHO IS A MANUFACTURER SHALL BE  EXEMPT  FROM
    6  ALL TAXES IMPOSED BY THIS ARTICLE.
    7    S 3. This act shall take effect immediately and shall apply to taxable
    8  years  commencing  on  or after January 1, 2010; provided, however, that
    9  the commissioner of taxation and finance is authorized to promulgate any
   10  and all rules and regulations and take any other measures necessary  for
   11  the timely implementation of this act on its effective date on or before
   12  such date.