Bill Text: NY A03342 | 2013-2014 | 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: Bipartisan Bill

Status: (Introduced - Dead) 2014-06-17 - held for consideration in ways and means [A03342 Detail]

Download: New_York-2013-A03342-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3342--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 24, 2013
                                      ___________
       Introduced  by M. of A. SCHIMMINGER, MAGNARELLI, MAGEE, BRINDISI, LUPAR-
         DO, TENNEY, ZEBROWSKI -- Multi-Sponsored  by  --  M.  of  A.  BARCLAY,
         CORWIN,  GIGLIO,  GOODELL,  HOOPER,  KOLB,  LAVINE,  OAKS,  PALMESANO,
         PEOPLES-STOKES, 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  commit-
         tee
       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  12 to read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06767-03-4
       A. 3342--A                          2
    1    12.  (A) FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
    2  THOUSAND FIFTEEN, 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 SIXTEEN, 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, 2015; 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.