Bill Text: NY A06651 | 2019-2020 | General Assembly | Introduced
Bill Title: Eliminates the corporate franchise tax and personal income tax on business corporations that are manufacturers; defines terms "manufacturer" and "principally engaged".
Spectrum: Strong Partisan Bill (Republican 13-1)
Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A06651 Detail]
Download: New_York-2019-A06651-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6651 2019-2020 Regular Sessions IN ASSEMBLY March 14, 2019 ___________ Introduced by M. of A. KOLB, MONTESANO, DiPIETRO, BRABENEC, ASHBY -- Multi-Sponsored by -- M. of A. BARCLAY, CROUCH, FINCH, FITZPATRICK, GIGLIO, HAWLEY, McDONOUGH, RAIA, THIELE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to eliminating the corporate franchise and personal income tax on manufacturers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph 1 of paragraph (b) of subdivision 1 of section 2 210 of the tax law, as amended by section 18 of part T of chapter 59 of 3 the laws of 2015, is amended to read as follows: 4 (1) [(i)] The amount prescribed by this paragraph shall be computed 5 at .15 percent for each dollar of the taxpayer's total business capital, 6 or the portion thereof apportioned within the state as hereinafter 7 provided for taxable years beginning before January first, two thousand 8 sixteen. However, in the case of a cooperative housing corporation as 9 defined in the internal revenue code, the applicable rate shall be .04 10 percent until taxable years beginning on or after January first, two 11 thousand twenty. The rate of tax for subsequent tax years shall be as 12 follows: .125 percent for taxable years beginning on or after January 13 first, two thousand sixteen and before January first, two thousand 14 seventeen; .100 percent for taxable years beginning on or after January 15 first, two thousand seventeen and before January first, two thousand 16 eighteen; .075 percent for taxable years beginning on or after January 17 first, two thousand eighteen and before January first, two thousand 18 nineteen; .050 percent for taxable years beginning on or after January 19 first, two thousand nineteen and before January first, two thousand 20 twenty; .025 percent for taxable years beginning on or after January 21 first, two thousand twenty and before January first, two thousand twen- 22 ty-one; and zero percent for years beginning on or after January first, 23 two thousand twenty-one. The rate of tax for a qualified New York EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06104-02-9A. 6651 2 1 manufacturer shall be .132 percent for taxable years beginning on or 2 after January first, two thousand fifteen and before January first, two 3 thousand sixteen, .106 percent for taxable years beginning on or after 4 January first, two thousand sixteen and before January first, two thou- 5 sand seventeen, .085 percent for taxable years beginning on or after 6 January first, two thousand seventeen and before January first, two 7 thousand eighteen; .056 percent for taxable years beginning on or after 8 January first, two thousand eighteen and before January first, two thou- 9 sand nineteen; [.038] and zero percent for taxable years beginning on or 10 after January first, two thousand nineteen and [before January first,11thousand twenty; .019 percent for taxable years beginning on or after12January first, two thousand twenty and before January first, two thou-13sand twenty-one; and zero percent for years beginning on or after Janu-14ary first, two thousand twenty-one. (ii) In no event shall the amount15prescribed by this paragraph exceed three hundred fifty thousand dollars16for qualified New York manufacturers and for all other taxpayers five17million dollars] thereafter. 18 § 2. Paragraph (d) of subdivision 1 of section 210 of the tax law, as 19 amended by section 12 of part A of chapter 59 of the laws of 2014, 20 subparagraphs 1 and 2 as amended by section 19 of part T of chapter 59 21 of the laws of 2015, clause (D) as amended by section 2 and clause (D-1) 22 of subparagraph 1 as added by section 3 of part VV of chapter 59 of the 23 laws of 2017, is amended to read as follows: 24 (d) Fixed dollar minimum. (1) (A) The amount prescribed by this para- 25 graph for New York S corporations, other than New York S corporations 26 that are qualified New York manufacturers or qualified emerging technol- 27 ogy companies, will be determined in accordance with the following 28 table: 29 If New York receipts are: The fixed dollar minimum tax is: 30 not more than $100,000 $ 25 31 more than $100,000 but not over $250,000 $ 50 32 more than $250,000 but not over $500,000 $ 175 33 more than $500,000 but not over $1,000,000 $ 300 34 more than $1,000,000 but not over $5,000,000 $1,000 35 more than $5,000,000 but not over $25,000,000 $3,000 36 Over $25,000,000 $4,500 37 (B) Provided further, the amount prescribed by this paragraph for New 38 York S corporations that are qualified New York manufacturers, as 39 defined in subparagraph (vi) of paragraph (a) of this subdivision, and 40 for New York S corporations that are qualified emerging technology 41 companies under paragraph (c) of subdivision one of section thirty-one 42 hundred two-e of the public authorities law regardless of the ten 43 million dollar limitation expressed in subparagraph one of such para- 44 graph (c), will be determined in accordance with the following tables. 45 For taxable years beginning on or after January 1, 2015 and before Janu- 46 ary 1, 2016: 47 If New York receipts are: The fixed dollar minimum tax is: 48 not more than $100,000 $ 22 49 more than $100,000 but not over $250,000 $ 44 50 more than $250,000 but not over $500,000 $ 153 51 more than $500,000 but not over $1,000,000 $ 263A. 6651 3 1 more than $1,000,000 but not over $5,000,000 $ 877 2 more than $5,000,000 but not over $25,000,000 $2,631 3 Over $25,000,000 $3,947 4 For taxable years beginning on or after January 1, 2016 and before Janu- 5 ary 1, 2018: 6 If New York receipts are: The fixed dollar minimum tax is: 7 not more than $100,000 $ 21 8 more than $100,000 but not over $250,000 $ 42 9 more than $250,000 but not over $500,000 $ 148 10 more than $500,000 but not over $1,000,000 $ 254 11 more than $1,000,000 but not over $5,000,000 $ 846 12 more than $5,000,000 but not over $25,000,000 $2,538 13 Over $25,000,000 $3,807 14 For taxable years beginning on or after January 1, 2018 and before Janu- 15 ary 1, 2019: 16 If New York receipts are: The fixed dollar minimum tax is: 17 not more than $100,000 $ 19 18 more than $100,000 but not over $250,000 $ 38 19 more than $250,000 but not over $500,000 $ 131 20 more than $500,000 but not over $1,000,000 $ 225 21 more than $1,000,000 but not over $5,000,000 $ 750 22 more than $5,000,000 but not over $25,000,000 $2,250 23 Over $25,000,000 $3,375 24 For taxable years beginning on or after January 1, 2019, the fixed 25 dollar minimum tax is $0. 26 (C) Provided further, the amount prescribed by this paragraph for a 27 qualified New York manufacturer, as defined in subparagraph (vi) of 28 paragraph (a) of this subdivision, and a qualified emerging technology 29 company under paragraph (c) of subdivision one of section thirty-one 30 hundred two-e of the public authorities law regardless of the ten 31 million dollar limitation expressed in subparagraph one of such para- 32 graph (c), that is not a New York S corporation, will be determined in 33 accordance with the following tables. However, with respect to qualified 34 New York manufacturers, the amounts in these tables will apply in the 35 case of a combined report only if the combined group satisfies the 36 requirements to be a qualified New York manufacturer as set forth in 37 such subparagraph (vi). 38 For tax years beginning on or after January 1, 2015 and before January 39 1, 2016: 40 If New York receipts are: The fixed dollar minimum tax is: 41 not more than $100,000 $ 22 42 more than $100,000 but not over $250,000 $ 66 43 more than $250,000 but not over $500,000 $ 153 44 more than $500,000 but not over $1,000,000 $ 439 45 more than $1,000,000 but not over $5,000,000 $1,316 46 more than $5,000,000 but not over $25,000,000 $3,070 47 Over $25,000,000 $4,385A. 6651 4 1 For tax years beginning on or after January 1, 2016 and before January 2 1, 2018: 3 If New York receipts are: The fixed dollar minimum tax is: 4 not more than $100,000 $ 21 5 more than $100,000 but not over $250,000 $ 63 6 more than $250,000 but not over $500,000 $ 148 7 more than $500,000 but not over $1,000,000 $ 423 8 more than $1,000,000 but not over $5,000,000 $1,269 9 more than $5,000,000 but not over $25,000,000 $2,961 10 Over $25,000,000 $4,230 11 For tax years beginning on or after January 1, 2018 and before January 12 1, 2019: 13 If New York receipts are: The fixed dollar minimum tax is: 14 not more than $100,000 $ 19 15 more than $100,000 but not over $250,000 $ 56 16 more than $250,000 but not over $500,000 $ 131 17 more than $500,000 but not over $1,000,000 $ 375 18 more than $1,000,000 but not over $5,000,000 $1,125 19 more than $5,000,000 but not over $25,000,000 $2,625 20 Over $25,000,000 $3,750 21 For tax years beginning on or after January 1, 2019, the fixed dollar 22 minimum tax is $0. 23 (D) Otherwise, for all other taxpayers not covered by clauses (A), 24 (B), (C) and (D-1) of this subparagraph, the amount prescribed by this 25 paragraph will be determined in accordance with the following table: 26 If New York receipts are: The fixed dollar minimum tax is: 27 not more than $100,000 $ 25 28 more than $100,000 but not over $250,000 $ 75 29 more than $250,000 but not over $500,000 $ 175 30 more than $500,000 but not over $1,000,000 $ 500 31 more than $1,000,000 but not over $5,000,000 $1,500 32 more than $5,000,000 but not over $25,000,000 $3,500 33 more than $25,000,000 but not over $50,000,000 $5,000 34 more than $50,000,000 but not over $100,000,000 $10,000 35 more than $100,000,000 but not over $250,000,000 $20,000 36 more than $250,000,000 but not over $500,000,000 $50,000 37 more than $500,000,000 but not over $1,000,000,000 $100,000 38 Over $1,000,000,000 $200,000 39 (D-1) In the case of a REIT or a RIC that is not a captive REIT or 40 captive RIC, the amount prescribed by this paragraph will be determined 41 in accordance with the following table: 42 If New York receipts are: The fixed dollar minimum tax is: 43 not more than $100,000 $ 25 44 more than $100,000 but not over $250,000 $ 75 45 more than $250,000 but not over $500,000 $ 175 46 more than $500,000 $ 500A. 6651 5 1 (E) For purposes of this paragraph, New York receipts are the receipts 2 included in the numerator of the apportionment factor determined under 3 section two hundred ten-A for the taxable year. 4 (2) If the taxable year is less than twelve months, the amount of New 5 York receipts is determined by dividing the amount of the receipts for 6 the taxable year by the number of months in the taxable year and multi- 7 plying the result by twelve, and the amount prescribed by this paragraph 8 shall be reduced by twenty-five percent of the period for which the 9 taxpayer is subject to tax is more than six months but not more than 10 nine months and by fifty percent if the period for which the taxpayer is 11 subject to tax is not more than six months. In the case of a termination 12 year of a New York S corporation, the sum of the tax computed under this 13 paragraph for the S short year and for the C short year shall not be 14 less than the amount computed under this paragraph as if the corporation 15 were a New York C corporation for the entire taxable year. 16 § 3. Subsection (i) of section 601 of the tax law is relettered 17 subsection (j) and a new subsection (i) is added to read as follows: 18 (i) Manufacturers. Notwithstanding this or any other section of this 19 article, a person's liability for tax under this section, if such 20 person's primary activity is in his or her role as a manufacturer, shall 21 be zero for taxable years beginning on or after January first, two thou- 22 sand nineteen. For purposes of this section a person shall be classified 23 as a manufacturer if, he or she is principally engaged in the production 24 of goods by manufacturing, processing, assembling, refining, mining, 25 extracting, farming, agriculture, horticulture, floriculture, viticul- 26 ture or commercial fishing. In addition, for purposes of computing the 27 capital base in a combined report, the group shall be considered a 28 manufacturer for purposes of this article, only if the combined group 29 during the taxable year is principally engaged in the activities set 30 forth in this subsection, or any combination thereof. For purposes of 31 this subsection, a taxpayer is "principally engaged" in the described 32 activity if, during the taxable year, more than fifty percent of the 33 gross receipts of the taxpayer are derived from receipts from activities 34 covered by this subsection. 35 § 4. This act shall take effect immediately; provided, however, that 36 the commissioner of taxation and finance is authorized to promulgate any 37 and all rules and regulations and take any other measures necessary for 38 the timely implementation of this act on its effective date on or before 39 such date.
