Bill Text: NY A05954 | 2009-2010 | General Assembly | Amended
Bill Title: Exempts farm operations from limited liability filing fees and certain business franchise taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-18 - print number 5954a [A05954 Detail]
Download: New_York-2009-A05954-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5954--A 2009-2010 Regular Sessions I N A S S E M B L Y February 23, 2009 ___________ Introduced by M. of A. MAGEE -- 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 limited liability company fees and business corporation franchise taxes for farms and commercial horse boarding operations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph 3 of subsection (c) of section 658 of the tax 2 law, as amended by section 1 of part H-1 of chapter 57 of the laws of 3 2009, is amended to read as follows: 4 (3) Filing fees. (A) Every subchapter K limited liability company, 5 every limited liability company that is a disregarded entity for federal 6 income tax purposes, and every partnership which has any income derived 7 from New York sources, determined in accordance with the applicable 8 rules of section six hundred thirty-one of this article as in the case 9 of a nonresident individual, shall, within thirty days after the last 10 day of the taxable year, make a payment of a filing fee. SUCH DEADLINE 11 SHALL NOT APPLY TO FARMS OR COMMERCIAL HORSE BOARDING OPERATIONS, WHICH 12 SHALL, WITHIN ONE HUNDRED TWENTY DAYS AFTER THE LAST DAY OF THE TAXABLE 13 YEAR, MAKE PAYMENT OF A FILING FEE. The amount of the filing fee is the 14 amount set forth in subparagraph (B) of this paragraph. The minimum 15 filing fee is twenty-five dollars for taxable years beginning in two 16 thousand eight and thereafter. Limited liability companies that are 17 disregarded entities for federal income tax purposes must pay a filing 18 fee of twenty-five dollars for taxable years beginning on or after Janu- 19 ary first, two thousand eight. 20 (B) The filing fee will be based on the New York source gross income 21 of the limited liability company or partnership for the taxable year EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07730-03-0 A. 5954--A 2 1 immediately preceding the taxable year for which the fee is due. If the 2 limited liability company or partnership does not have any New York 3 source gross income for the taxable year immediately preceding the taxa- 4 ble year for which the fee is due, the limited liability company or 5 partnership shall pay the minimum filing fee. Partnerships, other than 6 limited liability partnerships under article eight-B of the partnership 7 law and foreign limited liability partnerships, with less than one 8 million dollars in New York source gross income are exempt from the 9 filing fee. New York source gross income is the sum of the partners' or 10 members' shares of federal gross income from the partnership or limited 11 liability company derived from or connected with New York sources, 12 determined in accordance with the provisions of section six hundred 13 thirty-one of this article as if those provisions and any related 14 provisions expressly referred to a computation of federal gross income 15 from New York sources. For this purpose, federal gross income is 16 computed without any allowance or deduction for cost of goods sold, 17 EXCEPT THAT FOR COMPANIES ENGAGED PRIMARILY IN FARMING OR COMMERCIAL 18 HORSE BOARDING, FEDERAL GROSS INCOME SHALL BE BASED UPON NET INCOME AS 19 REPORTED FOR FEDERAL TAX PURPOSES. 20 The amount of the filing fee for taxable years beginning on or after 21 January first, two thousand eight will be determined in accordance with 22 the following table: 23 If the New York source gross income is: The fee is: 24 not more than $100,000 $25 25 more than $100,000 but not over $250,000 $50 26 more than $250,000 but not over $500,000 $175 27 more than $500,000 but not over $1,000,000 $500 28 more than $1,000,000 but not over $5,000,000 $1,500 29 more than $5,000,000 but not over $25,000,000 $3,000 30 Over $25,000,000 $4,500 31 (C) No credits provided by this article may be taken against the fee 32 imposed by this paragraph. 33 (D) Where the filing fee is not timely paid, it shall be paid upon 34 notice and demand and shall be assessed, collected and paid in the same 35 manner as taxes, and for those purposes any reference in this article to 36 tax imposed by this article shall be deemed also to refer to this filing 37 fee. 38 S 2. Subparagraph 4 of paragraph (d) of subdivision 1 of section 210 39 of the tax law, as added by section 2 of part AA-1 of chapter 57 of the 40 laws of 2008, is amended to read as follows: 41 (4) Notwithstanding subparagraphs one and two of this paragraph, for 42 taxable years beginning on or after January first, two thousand eight, 43 the amount prescribed by this paragraph for New York S corporations will 44 be determined in accordance with the following table: 45 If New York receipts are: The fixed dollar 46 minimum tax is: 47 not more than $100,000 $25 48 more than $100,000 but not over $250,000 $50 49 more than $250,000 but not over $500,000 $175 50 more than $500,000 but not over $1,000,000 $300 51 more than $1,000,000 but not over $5,000,000 $1,000 52 more than $5,000,000 but not over $25,000,000 $3,000 53 Over $25,000,000 $4,500 A. 5954--A 3 1 Otherwise the amount prescribed by this paragraph will be determined in 2 accordance with the following table: 3 If New York receipts are: The fixed dollar 4 minimum tax is: 5 not more than $100,000 $25 6 more than $100,000 but not over $250,000 $75 7 more than $250,000 but not over $500,000 $175 8 more than $500,000 but not over $1,000,000 $500 9 more than $1,000,000 but not over $5,000,000 $1,500 10 more than $5,000,000 but not over $25,000,000 $3,500 11 Over $25,000,000 $5,000 12 For purposes of this paragraph, New York receipts are the receipts 13 computed in accordance with subparagraph two of paragraph (a) of subdi- 14 vision three of this section for the taxable year, EXCEPT THAT FOR 15 CORPORATIONS ENGAGED PRIMARILY IN FARMING OR COMMERCIAL HORSE BOARDING, 16 THE TERM NEW YORK RECEIPTS SHALL REFER TO NET FARM INCOME AS REPORTED 17 FOR FEDERAL TAX PURPOSES. 18 S 3. This act shall take effect immediately and shall apply to taxable 19 years beginning on or after January 1, 2010.