Bill Text: NY A05165 | 2019-2020 | General Assembly | Introduced

New York Assembly Bill 5165 (Prior Session Legislation)

Introduced

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) 2020-01-08 - referred to ways and means [A05165 Detail]

Download: New_York-2019-A05165-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                          5165
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 7, 2019
                                       ___________
        Introduced  by  M.  of A. SCHIMMINGER, MAGNARELLI, LUPARDO, ZEBROWSKI --
          Multi-Sponsored by -- M. of A. BARCLAY, GIGLIO, GOODELL, KOLB, LAVINE,
          PALMESANO, PEOPLES-STOKES -- 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 13 and 14 to read as follows:
     3    13.  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    14.  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    § 2. Section 209 of the tax law is amended by adding a new subdivision
    19  13 to read as follows:
    20    13.  (a) For any taxable year beginning on or after January first, two
    21  thousand twenty, 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.
                                                                   LBD03908-01-9

        A. 5165                             2
     1    (b)  For  any  taxable  year  beginning on or after January first, two
     2  thousand twenty-one, a taxpayer who is a manufacturer  shall  be  exempt
     3  from all taxes imposed by this article.
     4    § 3. This act shall take effect immediately and shall apply to taxable
     5  years  commencing  on  or after January 1, 2019; 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.