2006 New York Code - Tax Based On Net Income; Imposition; Minimum Tax; New Incorporations; Dissolution; Consolidations; Mergers, Etc.

 
    §  11-612  Tax  based  on  net  income;  imposition;  minimum tax; new
  incorporations; dissolution; consolidations; mergers, etc.
    1. For the privilege of doing business in the city:
    (a) Every bank and savings and loan association  organized  under  the
  authority of this state;
    (b) Every trust company incorporated, organized or formed under, by or
  pursuant  to  a  law of the state, other than a trust company all of the
  stock of which is owned by not less than twenty savings banks  organized
  under  a  law of the state, and every domestic corporation authorized to
  do a trust company's business solely or in  connection  with  any  other
  business, under a general or special law of the state;
    (c) Every other domestic financial corporation;
    (d)  Every  incorporated  foreign  banker doing a banking business and
  every other foreign financial corporation; and
    (e) Every federal savings and  loan  association  located  within  the
  city,  shall  annually  pay  a  tax at the rate of four and one-half per
  centum except that for the years nineteen hundred seventy-one and  those
  following,  the  rate  shall  be five and sixty-three one hundredths per
  centum, to be computed as provided in this part, upon the basis  of  its
  net  income  for  each  calendar  year, beginning with the calendar year
  nineteen hundred sixty-six,  next  preceding  the  date  when  such  tax
  becomes  due,  if  the  taxpayer  is  required  to file a declaration of
  estimated tax and to make payments on account of such estimated  tax  as
  provided by section 11-636 of this subchapter, upon the basis of its net
  income  for  the calendar year with respect to which such declaration is
  required to be filed.
    2. Every such corporation for the privilege of doing business  in  the
  city  and every federal savings and loan association located in the city
  shall be subject to a minimum tax of not less than ten dollars  and  not
  less   than  one  mill  except  that  for  the  years  nineteen  hundred
  seventy-one and those following such minimum tax shall be not less  than
  twelve  and one-half dollars and not less than one and one-quarter mills
  upon each dollar of such a part of its issued capital stock on the  last
  day  of  the calendar year preceding that in which such tax becomes due,
  at its face value, as the gross income of such corporation derived  from
  business  carried on within the city during such calendar year, bears to
  its gross income derived from all business, both within and without  the
  city,  during said year, but if such a corporation has stock without par
  value, such stock shall be taken at its actual or market value, and  not
  less  than  five  dollars  per  share,  as  may  be  determined  by  the
  commissioner of finance; except that a savings bank and savings and loan
  association shall be subject to a minimum tax of not less than an amount
  equal to two per centum of the amount of interest or dividends  credited
  by  it  to depositors or shareholders during the calendar year preceding
  that in which such tax becomes due except that for  the  years  nineteen
  hundred  seventy-one  and  those following such minimum tax shall be not
  less than twelve and one-half dollars and not less than an amount  equal
  to  two  and  one-half per centum of the amount of interest or dividends
  credited by it to depositors or shareholders during  the  calendar  year
  preceding  that  in  which  such  tax  becomes  due,  provided  that, in
  determining such amount each interest or dividend credit to a  depositor
  or  shareholder  shall be deemed to be the interest or dividend actually
  credited or the interest or dividend which would have been  credited  if
  it  had  been  computed  and  credited at the rate of two per centum per
  annum whichever is less and except also that in  the  case  of  a  trust
  company or savings bank incorporated in the calendar year preceding that
  in  which  its  first  return under this part shall be due and after the
  thirtieth day of June in such year, the minimum tax, computed as in this


  subdivision provided, shall be reduced one-twelfth for  each  month,  or
  major  portion  thereof, subsequent to said thirtieth day of June during
  which such trust company or savings bank did not exercise the  privilege
  of doing business in the city.
    3.  For  the  privilege  of  doing  business  in  the city, every such
  domestic corporation, except trust companies and savings banks, shall be
  subject to a tax  for  the  calendar  year  in  which  its  organization
  certificate  is  filed,  and, for the privilege of doing business in the
  city, every such foreign corporation shall be subject to a tax  for  the
  calendar  year  in  which it first does business in the city, and, every
  federal savings and loan association located within the  city  shall  be
  subject to a tax for the calendar year in which it first becomes located
  within the city, computed in the same manner and at the same rate as the
  minimum  tax  under  subdivision  two  of  this section, except that the
  income forming the basis for proration shall  be  the  income  for  such
  calendar  year,  and  the  issued capital stock shall be taken as of the
  last day of such calendar year;  provided,  however,  that  the  tax  so
  computed  shall  be reduced one-twelfth for each month, or major portion
  thereof, in such calendar year, during which such  corporation  was  not
  doing  business  in  the  city,  or,  if  a  federal  savings  and  loan
  association, was not located in the city, and in no event shall the  tax
  be  less  than  ten  dollars  except  that for the year nineteen hundred
  seventy-one and those following, in no event shall the tax be less  than
  twelve and one-half dollars.
    4.  For  the privilege of doing business in the city, every such trust
  company and savings bank which shall  become  incorporated  between  the
  thirty-first day of December and the succeeding first day of July, shall
  be  subject to a tax for such period, computed in the same manner and at
  the same rate as the minimum tax under subdivision two of this  section,
  except  that  the  income  forming  the basis for proration shall be the
  income for such period;  and  the  issued  capital  stock,  or  interest
  credited  to depositors of a savings bank, shall be taken as of the last
  day of such period; provided, however, that the tax so computed shall be
  reduced one-half and an additional one-twelfth for each month, or  major
  portion  thereof,  in  such  period,  during which such trust company or
  savings bank was not doing business in the city, and in no  event  shall
  the  tax  be  less  than  ten  dollars except that for the year nineteen
  hundred seventy-one and those following, in no event shall  the  tax  be
  less than twelve and one-half dollars.
    5.  For  the  privilege  of  doing  business  in  the city, every such
  corporation, except trust companies and savings banks,  which  shall  be
  dissolved  between  the  thirty-first day of December and the succeeding
  second day of September, and shall not  become  merged  or  consolidated
  with another corporation taxable under this part and, every such foreign
  corporation which shall cease to do business in the city during the same
  period,  and  every federal savings and loan association which ceases to
  be located in the city during the same  period,  and  shall  not  become
  merged or consolidated with another corporation taxable under this part,
  shall  pay a tax for the period from the thirty-first day of December up
  to the time of dissolution, ceasing to  do  business  in  the  city,  or
  ceasing  to  be  located  in the city, as the case may be, equal to that
  which would have been payable had it not been dissolved,  ceased  to  do
  business  in  the city, or ceased to be located in the city, except that
  such tax shall be reduced one-third and an  additional  one-twelfth  for
  each  month,  or  major portion thereof, prior to such succeeding second
  day of September, during which such corporation was not  doing  business
  in  the  city, or was not located in the city, and in no event shall the
  tax be less than ten dollars except that for the year  nineteen  hundred


  seventy-one  and those following, in no event shall the tax be less than
  twelve and one-half dollars. If such  dissolution  or  cessation  occurs
  beteween the fifteenth day of March and the second day of September, and
  if  such  corporation  shall  have  filed  its  return  on or before the
  fifteenth day of March as required by section 11-633 of this subchapter,
  it may file a claim for refund as provided in  section  11-678  of  this
  chapter,  showing  any  reduction  in tax to which it may be entitled as
  provided in the preceding sentence; and if it shall be  made  to  appear
  that  the  amount  of tax due is less than the amount as computed on the
  basis of the original return, the commissioner of finance  shall  adjust
  the  computation of tax accordingly. If the amount of tax as so adjusted
  shall be less than the amount theretofore  paid,  the  excess  shall  be
  refunded  by  the commissioner of finance as provided in subdivision one
  of section 11-677 of this chapter.
    6.  Every  such  trust  company  and  savings  bank,  which  shall  be
  dissolved,  and  shall  not  become  merged or consolidated with another
  corporation taxable under this part, shall, if dissolution  takes  place
  between  the  thirtieth  day  of  June  and  the succeeding first day of
  January, be subject to a tax, for that part of such period in  which  it
  had  been  doing  business,  computed in the same manner and at the same
  rate as the minimum tax under subdivision two of  this  section,  except
  that  the income forming the basis for proration shall be the income for
  the calendar year in which  such  dissolution  occurs;  and  the  issued
  capital  stock,  or  interest  credited to depositors of a savings bank,
  shall be taken as of the date of dissolution;  provided,  however,  that
  the  tax  so  computed  shall  be  reduced  one-half  and  an additional
  one-twelfth for each month, or major portion thereof, between  the  date
  of  dissolution  and the succeeding first day of January. If dissolution
  occurs between the thirty-first  day  of  December  and  the  succeeding
  sixteenth  day  of  March,  such trust company and savings bank shall be
  subject to the same tax that would have been due from it  on  or  before
  the  fifteenth  day of March had it not been dissolved, except that such
  tax shall be reduced  one-twelfth  for  each  month,  or  major  portion
  thereof,  from  the  date  of dissolution to the succeeding first day of
  July, and shall be for the period beginning on the preceding  first  day
  of July and ending on the date of dissolution. In no event shall the tax
  under this subdivision be less than ten dollars except that for the year
  nineteen  hundred seventy-one and those following, in no event shall the
  tax under this subdivision be less than twelve and one-half dollars.
    7. In the case of a consolidation or merger of taxpayers, or in case a
  national bank taxable  under  part  two  of  this  subchapter  shall  be
  consolidated  or merged with a taxpayer under this part, or in case of a
  series of such transactions, there shall be added to the net  income  of
  the  taxpayer  resulting  from  such  consolidations  or mergers the net
  income of the taxpayers which are consolidated or merged for the  period
  for  which  the  taxpayer resulting from such consolidation or merger is
  required to render any return under this part,  and  if  such  resulting
  taxpayer  is a savings bank or savings and loan association, there shall
  be added to the interest or dividends credited by it  to  depositors  or
  shareholders  the amount of interest or dividends credited to depositors
  or  shareholders  during  such  period  by  the  taxpayers   which   are
  consolidated  or  merged,  except that net income, interest or dividends
  shall not be included if they have already been used as the basis for  a
  tax  under this part, and the tax payable on filing such return shall be
  based upon the entire net income reported therein  or  upon  the  entire
  amount  of  interest  or  dividends so reported, as the case may be. The
  acquisition by a taxpayer, directly or  indirectly,  of  the  assets  or


  franchises of another taxpayer or national bank shall be deemed a merger
  for the purposes of this section.
    8.  The  tax  imposed by this part shall be for the calendar year next
  preceding the year in which it becomes due; except that with respect  to
  corporations  subject  to  a  tax imposed under subdivision three, four,
  five or six of this section, the tax shall be  for  the  period  therein
  specified, and except that with respect to corporations required to file
  a  declaration  of estimated tax and to make payments on account of such
  estimated tax as provided by section  11-636  of  this  subchapter,  all
  payments of tax within a calendar year, whether computed on the basis of
  net  income  for the current calendar year or on the basis of net income
  for the preceding calendar year, shall be for the calendar year in which
  the payments are required to be made.
    9. In the event that it shall be finally  determined  by  a  court  of
  competent  jurisdiction  that  the  taxes  imposed  on  national banking
  associations by part two of  this  subchapter  are  unconstitutional  or
  invalid  for  the  reason  that  they  are  not  in  conformity with the
  provisions of section fifty-two hundred nineteen of  the  United  States
  revised  statutes,  then, in lieu of the taxes imposed by the provisions
  of this part, every corporation that otherwise would have  been  subject
  to  tax  under  this  part  shall  be  subject  to the tax imposed under
  subchapter two as of July thirteenth, nineteen  hundred  sixty-six,  and
  all  of  the provisions of subchapter two, unless clearly inappropriate,
  shall be applicable except subdivision four of section  11-603  of  this
  chapter; and, in such event, any payments made, reports or returns filed
  or  any  act of the commissioner of finance or of a taxpayer purportedly
  under this subchapter shall be treated as though  made,  filed  or  done
  pursuant to subchapter two.
    10.  Cross  reference. For years for which tax is imposed, see section
  11-613 of this part.