2006 New York Code - Temporary Metropolitan Transportation Business Tax Surcharge.

 
    § 209-B. Temporary metropolitan transportation business tax surcharge.
  1.  For the privilege of exercising its corporate franchise, or of doing
  business, or of employing capital, or of owning or leasing property in a
  corporate or organized capacity, or of  maintaining  an  office  in  the
  metropolitan  commuter  transportation  district, for all or any part of
  its taxable year, there is hereby imposed on  every  corporation,  other
  than  a New York S corporation, subject to tax under section two hundred
  nine of this article, or any receiver,  referee,  trustee,  assignee  or
  other  fiduciary,  or  any  officer or agent appointed by any court, who
  conducts the business of any such corporation,  for  the  taxable  years
  commencing  on  or  after January first, nineteen hundred eighty-two but
  ending before December thirty-first, two thousand nine, a tax surcharge,
  in addition to the tax imposed under section two hundred  nine  of  this
  article,  to  be  computed at the rate of eighteen per centum of the tax
  imposed under such section two hundred nine for such  taxable  years  or
  any  part  of  such  taxable  years ending before December thirty-first,
  nineteen  hundred  eighty-three  after  the  deduction  of  any  credits
  otherwise allowable under this article, and at the rate of seventeen per
  centum  of  the tax imposed under such section for such taxable years or
  any part of such taxable years ending on or after December thirty-first,
  nineteen  hundred  eighty-three  after  the  deduction  of  any  credits
  otherwise  allowable  under  this  article; provided, however, that such
  rates of tax surcharge shall be applied only to that portion of the  tax
  imposed  under  section  two  hundred  nine  of  this  article after the
  deduction of any credits otherwise allowable under this article which is
  attributable to the taxpayer's business activity carried on  within  the
  metropolitan  commuter  transportation  district; and provided, further,
  that the tax surcharge imposed by this section shall not be imposed upon
  any taxpayer for more than three hundred  twenty-four  months.  Provided
  however,  that  for  taxable  years  commencing  on or after July first,
  nineteen hundred ninety-eight, such surcharge shall be calculated as  if
  the  tax  imposed  under  section  two  hundred ten of this article were
  imposed under the law in effect for taxable years commencing on or after
  July  first,  nineteen  hundred  ninety-seven  and  before  July  first,
  nineteen hundred ninety-eight.
    2.  The  portion of the taxpayer's business activity carried on within
  the metropolitan commuter transportation district shall be determined by
  multiplying the tax imposed under  section  two  hundred  nine  of  this
  article by a percentage to be determined as follows:
    *  (a)  ascertaining  the  percentage  which  the average value of the
  taxpayer's real and tangible personal property within  the  metropolitan
  commuter transportation district during the period covered by its report
  bears  to  the  average  value  of  all the taxpayer's real and tangible
  personal property within the state during such period;
    * NB Applies to taxable years prior to December 31, 1986
    * (a) ascertaining the percentage  which  the  average  value  of  the
  taxpayer's  real and tangible personal property, whether owned or rented
  to it, within the metropolitan commuter transportation  district  during
  the  period  covered by its report bears to the average value of all the
  taxpayer's real and tangible personal property, whether owned or  rented
  to  it,  within  the  state  during  such period; provided that the term
  "value of the taxpayer's real and tangible personal property" shall have
  the same meaning as is ascribed to that  term  by  subparagraph  one  of
  paragraph (a) of subdivision three of section two hundred ten;
    * NB Applies to taxable years beginning after December 31, 1986
    (b)  ascertaining  the  percentage which the receipts of the taxpayer,
  computed on the cash  or  accrual  basis  according  to  the  method  of
  accounting  used  in  the  computation of its entire net income, arising
  during such period from:
    (1)  sales  of its tangible personal property where shipments are made
  to points within the metropolitan commuter transportation district,
    (2) services performed within the metropolitan commuter transportation
  district, provided, however, that (i) in the case of a taxpayer  engaged
  in  the  business  of  publishing  newspapers  or  periodicals, receipts
  arising from sales of  advertising  contained  in  such  newspapers  and
  periodicals  shall be deemed to arise from services performed within the
  metropolitan commuter transportation district to the  extent  that  such
  newspapers   and   periodicals   are  delivered  to  points  within  the
  metropolitan commuter transportation district,  (ii)  receipts  from  an
  investment  company  from  the  sale  of  management,  administration or
  distribution services to such investment  company  shall  be  deemed  to
  arise   from   services   performed  within  the  metropolitan  commuter
  transportation district to the extent set forth in subparagraph  six  of
  paragraph  (a)  of  subdivision three of section two hundred ten of this
  chapter (except that references in such subparagraph six  to  the  state
  shall  be  deemed,  for  purposes  of  application to this clause, to be
  references to the metropolitan commuter transportation district),  (iii)
  in  the  case  of  taxpayers  principally engaged in the activity of air
  freight forwarding acting as principal and like  indirect  air  carriage
  receipts  arising from such activity shall arise from services performed
  within the metropolitan commuter transportation district as follows: one
  hundred percent of  such  receipts  if  both  the  pickup  and  delivery
  associated  with  such  receipts  are  made in the metropolitan commuter
  transportation district and fifty percent of such receipts if either the
  pickup or  delivery  associated  with  such  receipts  is  made  in  the
  metropolitan commuter transportation district, and (iv) in the case of a
  taxpayer  which  is  a  registered  securities  or commodities broker or
  dealer, the receipts specified in subparagraph nine of paragraph (a)  of
  subdivision  three  of  section two hundred ten of this article shall be
  deemed to arise from services performed within the metropolitan commuter
  transportation district to the extent set  forth  in  such  subparagraph
  nine  (except  that  references  in  such subparagraph nine to the state
  shall be deemed, for purposes of the application of this clause,  to  be
  references to the metropolitan commuter transportation district),
    (3)  rentals  from  property  situated  and  royalties from the use of
  patents or copyrights within the  metropolitan  commuter  transportation
  district,  and  receipts from the sales of rights for closed-circuit and
  cable television transmissions of an event (other than events  occurring
  on  a  regularly  scheduled  basis) taking place within the metropolitan
  commuter transportation  district  as  a  result  of  the  rendition  of
  services  by  employees of the corporation, as athletes, entertainers or
  performing artists, but only  to  the  extent  that  such  receipts  are
  attributable  to  such  transmissions  received  or exhibited within the
  metropolitan communter transportation district, and
    (4)  all  other  business  receipts  earned  within  the  metropolitan
  commuter  transportation  district,  bear  to  the  total  amount of the
  taxpayer's receipts, similarly computed, arising during such period from
  all  sales  of  its  tangible  personal  property,  services,   rentals,
  royalties,  receipts  from  the  sales  of rights for closed-circuit and
  cable television transmissions  and  all  other  business  transactions,
  within the state;
    (c) ascertaining the percentage of the total wages, salaries and other
  personal  service  compensation, similarly computed, during such period,
  of employees within the metropolitan commuter  transportation  district,
  except  general  executive  officers,  to  the total wages, salaries and
  other personal service compensation,  similarly  computed,  during  such
  period, of all the taxpayer's employees within the state, except general
  executive officers; and
    (d)  adding  together  the  percentages so determined and dividing the
  result by the number of percentages.
    2-a. (a) A taxpayer principally engaged in  the  conduct  of  aviation
  (other than air freight forwarders acting as principal and like indirect
  air  carriers  and  other  than  as  provided  in  paragraph (c) of this
  subdivision) shall, notwithstanding the provisions of subdivision two of
  this section, determine the portion of its business activity carried  on
  within  the metropolitan commuter transportation district by multiplying
  the tax imposed under section two hundred nine of this  article  by  the
  arithmetic average of the following three percentages:
    (i)  the  percentage  determined  by  dividing  aircraft  arrivals and
  departures within the metropolitan commuter transportation  district  by
  the  taxpayer  during  the  period  covered  by  its report by the total
  aircraft arrivals and departures within the  entire  state  during  such
  period;   provided,   however,   arrivals   and  departures  solely  for
  maintenance or repair, refueling (where no debarkation or embarkation of
  traffic occurs), arrivals and departures of ferry and personnel training
  flights or arrivals and departures in the event of emergency  situations
  shall   not   be  included  in  computing  such  arrival  and  departure
  percentage; provided, further, the commissioner  may  also  exempt  from
  such  percentage  aircraft  arrivals  and  departures of all non-revenue
  flights including flights involving the transportation  of  officers  or
  employees  receiving air transportation to perform maintenance or repair
  services  or  where  such  officers  or  employees  are  transported  in
  conjunction  with  an emergency situation or the investigation of an air
  disaster (other than on a scheduled  flight);  provided,  however,  that
  arrivals  and  departures of flights transporting officers and employees
  receiving air transportation for purposes  other  than  specified  above
  (without  regard  to  remuneration)  shall be included in computing such
  arrival and departure percentage;
    (ii) the percentage determined by dividing the revenue tons handled by
  the taxpayer at airports within the metropolitan commuter transportation
  district during such period by the total revenue tons handled by  it  at
  airports within the entire state during such period; and
    (iii) the percentage determined by dividing the taxpayer's originating
  revenue  within  the  metropolitan  commuter transportation district for
  such period by its total originating revenue within the entire state for
  such period.
    As used herein the term "aircraft arrivals and departures"  means  the
  number  of landings and takeoffs of the aircraft of the taxpayer and the
  number of air pickups and deliveries by the aircraft of  such  taxpayer;
  the  term  "originating  revenue" means revenue to the taxpayer from the
  transportation of revenue passengers and revenue property first received
  by the taxpayer either as originating or connecting traffic at airports;
  and the term "revenue tons handled" by the taxpayer  at  airports  means
  the  weight  in  tons  of  revenue passengers (at two hundred pounds per
  passenger) and revenue cargo first received  either  as  originating  or
  connecting traffic or finally discharged by the taxpayer at airports;
    (b)  Taxpayers principally engaged as air freight forwarders acting as
  principal and like indirect air carriers shall allocate business  income
  in accordance with paragraphs (a) through (d) of subdivision two of this
  section,  including  the special provision relating to the allocation of
  receipts from the activity of air freight forwarding acting as principal
  contained in subparagraph two of paragraph (b) of such subdivision two.
    * (b) Taxpayers principally engaged as air freight  forwarders  acting
  as  principal and like indirect air carriers shall determine the portion
  of the taxpayer's business activity carried on within  the  metropolitan
  commuter  transportation  district  in  accordance  with  paragraphs (a)
  through  (d)  of  subdivision two of this section, including the special
  provision relating to the allocation of receipts from  the  activity  of
  air freight forwarding acting as principal contained in subparagraph two
  of  paragraph  (b)  of  such  subdivision two. Provided, however, that a
  qualified air freight forwarder included on a combined  report  pursuant
  to  the provisions of subparagraph three of paragraph (b) of subdivision
  four of section two hundred eleven of this article shall  determine  the
  portion  of  its  business  activity  carried on within the metropolitan
  commuter transportation district in accordance  with  paragraph  (a)  of
  this subdivision.
    * NB Applies to taxable years beginning on or after January 1, 2001
    (c)(i)   For   taxable   years   beginning   after   nineteen  hundred
  eighty-eight, a foreign air carrier which  is  described  in  the  first
  sentence  of  paragraph (c-1) of subdivision nine of section two hundred
  eight of this article, and which is subject to  tax  under  section  two
  hundred nine of this article based on the amount prescribed in paragraph
  (a),  (c)  or  (d) of subdivision one of section two hundred ten of this
  article, shall determine the portion of its business activity carried on
  within the metropolitan commuter transportation district pursuant to the
  provisions of paragraphs (a) through (d)  of  subdivision  two  of  this
  section,  except  that  the numerators and denominators involved in such
  computation shall exclude property to the extent employed in  generating
  income  excluded  from  entire  net income pursuant to the provisions of
  paragraph (c-1) of subdivision nine of section two hundred eight of this
  article, exclude such receipts as are excluded from  entire  net  income
  for  the  taxable  year pursuant to the provisions of paragraph (c-1) of
  subdivision nine of section two  hundred  eight  of  this  article,  and
  exclude wages, salaries or other personal service compensation which are
  directly  attributable  to the generation of income excluded from entire
  net income for the taxable year pursuant to the provisions of  paragraph
  (c-1) of subdivision nine of section two hundred eight of this article.
    (ii)  For taxable years beginning after nineteen hundred ninety-three,
  a foreign air carrier which  is  described  in  the  first  sentence  of
  subparagraph  one  of paragraph (c-1) of subdivision nine of section two
  hundred eight of this article, which is subject to tax under section two
  hundred nine of this article based on the amount prescribed in paragraph
  (b) of subdivision one of section two hundred ten of  this  article  and
  which is subject to the provisions of paragraph (b) of subdivision seven
  of  section  two  hundred  eight  of  this  article, shall determine the
  portion of its  business  activity  carried  on  with  the  metropolitan
  commuter  transportation  district  pursuant to subparagraph (i) of this
  paragraph.
    * 2-b. A taxpayer principally engaged in the  conduct  of  a  railroad
  business  (including surface railroad, whether or not operated by steam,
  subway  railroad,  elevated  railroad,  palace  car  or   sleeping   car
  business), or a trucking business, shall, notwithstanding the provisions
  of  subdivision  two  of  this  section,  determine  the  portion of its
  business  activity  carried  on   within   the   metropolitan   commuter
  transportation district by multiplying the tax imposed under section two
  hundred  nine  of  this article by a fraction, the numerator of which is
  the taxpayer's mileage within the metropolitan  commuter  transportation
  district  during the period covered by its report and the denominator of
  which is the taxpayer's mileage within this state during such period.
    * NB Applicable to taxable years commencing on  or  after  January  1,
  1998
    3.  A  corporation shall not be deemed to be doing business, employing
  capital, owning or leasing property, or maintaining  an  office  in  the
  metropolitan  commuter transportation district, for the purposes of this
  section, by reason of (a) the maintenance of cash balances with banks or
  trust companies in the metropolitan commuter transportation district, or
  (b) the  ownership  of  shares  of  stock  or  securities  kept  in  the
  metropolitan commuter transportation district, if kept in a safe deposit
  box,  safe,  vault  or  other  receptacle  rented for the purpose, or if
  pledged as collateral security, or if deposited with one or  more  banks
  or  trust companies, or brokers who are members of a recognized security
  exchange, in safekeeping or custody accounts, or (c) the taking  of  any
  action  by any such bank or trust company or broker, which is incidental
  to  the  rendering  of  safekeeping  or  custodian   service   to   such
  corporation,  or  (d)  the  maintenance of an office in the metropolitan
  commuter transportation district by one or more officers or directors of
  the corporation  who  are  not  employees  of  the  corporation  if  the
  corporation otherwise is not doing business in the metropolitan commuter
  transportation  district,  and  does  not employ capital or own or lease
  property in the metropolitan commuter transportation  district,  or  (e)
  the  keeping  of  books  or records of a corporation in the metropolitan
  commuter transportation district if such books or records are  not  kept
  by employees of such corporation and such corporation does not otherwise
  do business, employ capital, own or lease property or maintain an office
  in  the  metropolitan  commuter  transportation  district,  or  (f)  any
  combination of the foregoing activities.
    4. Notwithstanding any contrary provisions of state or local law,  the
  tax  surcharge  imposed  under  this  section  shall not be allowed as a
  deduction in the computation of any  tax  imposed  under  this  chapter.
  Furthermore,  the  credits  otherwise allowable under this article shall
  not be allowed against the tax surcharge imposed by this section.
    5. The provisions concerning reports under section two hundred  eleven
  shall  be  applicable  to  this  section, except that for purposes of an
  automatic extension for six months for filing a report covering the  tax
  surcharge  imposed  by  this  section, such automatic extension shall be
  allowed only if a taxpayer files with the  commissioner  an  application
  for  extension  in  such  form  as  said  commissioner  may prescribe by
  regulation and pays on or before the date of such filing in addition  to
  any  other amounts required under this article, either ninety percent of
  the entire tax surcharge required to be paid under this section for  the
  applicable  period,  or  not  less  than  the tax surcharge shown on the
  taxpayer's return for the preceding  taxable  year,  if  such  preceding
  taxable  year  was  a  taxable year of twelve months; provided, however,
  that in no event shall such amount be  less  than  the  product  of  the
  following  three  amounts:  (1) the tax surcharge rate in effect for the
  taxable year pursuant to subdivision one of this section, (2) the  fixed
  dollar minimum applicable to such taxpayer as determined under paragraph
  (d)  of  subdivision  one of section two hundred ten of this chapter for
  the taxable year, and (3) the percentage  determined  under  subdivision
  two  of this section for the preceding taxable year, unless the taxpayer
  was not subject to the tax surcharge imposed pursuant  to  this  section
  with respect to such year, in which case such percentage shall be deemed
  to  be  one  hundred  percent. The tax surcharge imposed by this section
  shall be payable to the commissioner in full at the time the  report  is
  required  to  be  filed,  and such tax surcharge or the balance thereof,
  imposed on any taxpayer which ceases to exercise  its  franchise  or  be
  subject to the tax surcharge imposed by this section shall be payable to
  the  commissioner  at  the  time  the  report  is  required to be filed,
  provided such tax surcharge of a domestic corporation which continues to
  possess  its  franchise  shall  be  subject   to   adjustment   as   the
  circumstances  may  require;  all  other  tax  surcharges  of  any  such
  taxpayer, which pursuant to the foregoing  provisions  of  this  section
  would  otherwise  be  payable  subsequent  to  the  time  such report is
  required to be filed, shall nevertheless be payable at such time. All of
  the provisions of this article presently applicable  are  applicable  to
  the tax surcharge imposed by this section.
    6.  The  term metropolitan commuter transportation district as used in
  this section  shall  be  defined  pursuant  to  section  twelve  hundred
  sixty-two of the public authorities law.