Bill Text: NY A05659 | 2011-2012 | General Assembly | Introduced

New York Assembly Bill 5659 (Prior Session Legislation)

Introduced

Bill Title: Relates to banking corporations which originate credit card receivables and derives its receipts in New York principally from the collection or sale of such credit card receivables.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-04-20 - enacting clause stricken [A05659 Detail]

Download: New_York-2011-A05659-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5659
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 24, 2011
                                      ___________
       Introduced  by  M. of A. TOWNS, BOYLAND -- read once and referred to the
         Committee on Ways and Means
       AN ACT to amend the tax law, in relation  to  banking  corporations  and
         credit card receivables
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subparagraph (v)  of  paragraph  2  of  subsection  (f)  of
    2  section 1462 of the tax law, as added by section 3 of part EE-1 of chap-
    3  ter 57 of the laws of 2008, is amended to read as follows:
    4    (v) A banking corporation [doing business in this state solely because
    5  it] THAT meets one or more of the tests in subparagraphs (i) through (v)
    6  of paragraph one of subsection (c) of section fourteen hundred fifty-one
    7  of  this  article  [(]  AND WHICH ORIGINATES CREDIT CARD RECEIVABLES AND
    8  DERIVES ITS RECEIPTS IN NEW YORK PRINCIPALLY FROM THE COLLECTION OR SALE
    9  OF THOSE CREDIT CARD RECEIVABLES, INCLUDED BUT NOT LIMITED TO  INTEREST,
   10  FEES  AND  PENALTIES IN THE NATURE OF INTEREST, SERVICE CHARGES AND FEES
   11  FROM CREDIT CARD RECEIVABLES AND RECEIPTS FROM MERCHANT  DISCOUNTS  (ANY
   12  SUCH  ENTITY  BEING  HEREAFTER  referred  to in this subparagraph as the
   13  "credit card bank") will not be included in a combined  return  pursuant
   14  to  subparagraph  (i) of this paragraph with another banking corporation
   15  or bank holding company which is exercising its corporate  franchise  or
   16  doing  business in this state unless the credit card bank or the commis-
   17  sioner shows that the inclusion of the credit card bank in the  combined
   18  return  is necessary to properly reflect the tax liability of the credit
   19  card bank, the banking corporation or bank holding  company  under  this
   20  article.  However, any banking corporation that meets one or more of the
   21  tests in subparagraphs (i) through (v) of paragraph  one  of  subsection
   22  (c)  of  section  fourteen  hundred  fifty-one  OF  THIS ARTICLE and was
   23  included in a combined return for its last taxable year beginning before
   24  January first, two thousand eight may  continue  to  be  included  in  a
   25  combined  return for future taxable years, provided that once that bank-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09348-01-1
       A. 5659                             2
    1  ing corporation has been included in a combined return for  any  taxable
    2  year  beginning  on  or after January first, two thousand eight, it must
    3  continue to be included in  a  combined  return  until  it  obtains  the
    4  consent of the commissioner to cease being included in a combined return
    5  because  the combined return no longer properly reflects the tax liabil-
    6  ity under this article of  any  of  the  corporations  included  in  the
    7  combined  return.  Further,  the  credit card bank will be included in a
    8  combined return with (i) any banking  corporation  not  subject  to  tax
    9  under  this  article sixty-five percent or more of whose voting stock is
   10  owned or controlled, directly or indirectly, by the credit card bank, or
   11  (ii) any banking corporation or bank holding company not subject to  tax
   12  under  this  article  which  owns  or  controls, directly or indirectly,
   13  sixty-five percent or more of the voting stock of the credit card  bank,
   14  or  (iii)  any banking corporation not subject to tax under this article
   15  sixty-five percent or more of the voting stock  of  which  is  owned  or
   16  controlled,  directly  or  indirectly, by the same corporation or corpo-
   17  rations that own or control, directly or indirectly, sixty-five  percent
   18  or  more of the voting stock of the credit card bank, if the corporation
   19  or corporations described in clauses (i), (ii) and (iii) of this subpar-
   20  agraph provide services for or support to the credit card  bank's  oper-
   21  ations,  unless  the credit card bank or the commissioner shows that the
   22  inclusion of any of those corporations in the combined return  fails  to
   23  properly reflect the tax liability of the credit card bank. For purposes
   24  of  this subparagraph, services for or support to the credit card bank's
   25  operations include such activities as billing, credit investigation  and
   26  reporting,  marketing, research, advertising, mailing, customer service,
   27  information technology, lending and  financing  services,  and  communi-
   28  cations  services,  but  will not include accounting, legal or personnel
   29  services.
   30    S 2. This act shall take effect immediately.