2006 New York Code - Imposition Of Tax; Exemptions.

 
    §  209.  Imposition  of  tax;  exemptions.  *  1. For the privilege of
  exercising  its  corporate  franchise,  or  of  doing  business,  or  of
  employing  capital,  or of owning or leasing property in this state in a
  corporate or organized capacity, or of maintaining  an  office  in  this
  state,  for  all  or  any  part of each of its fiscal or calendar years,
  every domestic or foreign corporation, except corporations specified  in
  subdivision  four  of  this section, shall annually pay a franchise tax,
  upon the basis of its entire net income, or upon such other basis as may
  be applicable as hereinafter provided, for such fiscal or calendar  year
  or part thereof, on a report which shall be filed, except as hereinafter
  provided,  on  or  before the fifteenth day of March next succeeding the
  close of each such year, or, in the case of a corporation which  reports
  on  the basis of a fiscal year, within two and one-half months after the
  close of such fiscal year, and shall be paid as hereinafter provided.
    * NB Applies to taxable years prior to December 31, 1986
    * 1. For the privilege of exercising its corporate  franchise,  or  of
  doing  business,  or  of  employing  capital,  or  of  owning or leasing
  property in this state in a  corporate  or  organized  capacity,  or  of
  maintaining  an office in this state, for all or any part of each of its
  fiscal or calendar years, every domestic or foreign corporation,  except
  corporations  specified  in  subdivision  four  of  this  section, shall
  annually pay a franchise tax, upon the basis of its  entire  net  income
  base,  or  upon  such  other  basis  as may be applicable as hereinafter
  provided, for such fiscal or calendar year or part thereof, on a  report
  which  shall  be filed, except as hereinafter provided, on or before the
  fifteenth day of March next succeeding the close of each such year,  or,
  in  the  case  of  a  corporation which reports on the basis of a fiscal
  year, within two and one-half months after  the  close  of  such  fiscal
  year, and shall be paid as hereinafter provided.
    * NB Applies to taxable years beginning after December 31, 1986
    2.  A  foreign  corporation  shall not be deemed to be doing business,
  employing capital, owning or leasing property, or maintaining an  office
  in  this  state,  for the purposes of this article, by reason of (a) the
  maintenance of cash balances with  banks  or  trust  companies  in  this
  state,  or  (b)  the  ownership of shares of stock or securities kept in
  this state, 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 this  state  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 this state, and does
  not employ capital or own or lease property in this state,  or  (e)  the
  keeping of books or records of a corporation in this state 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  this  state,  or  (f)  the  use  of
  fulfillment services of a person other than an affiliated person and the
  ownership  of  property  stored  on  the  premises  of  such  person  in
  conjunction with such services, or (g) any combination of the  foregoing
  activities.  For  purposes  of  this subdivision, persons are affiliated
  persons with respect to each other where one  of  such  persons  has  an
  ownership  interest  of  more  than  five  percent,  whether  direct  or
  indirect, in the other, or where an ownership interest of more than five
  percent, whether direct or indirect, is held in each of such persons  by
  another  person  or  by  a  group  of other persons which are affiliated
  persons with respect to each other. The term "person" in  the  preceding
  sentence and in paragraph (f) of this subdivision shall have the meaning
  ascribed  thereto  by  subdivision  (a) of section eleven hundred one of
  this chapter.
    2-a. An alien corporation shall not be deemed to  be  doing  business,
  employing  capital, owning or leasing property, or maintaining an office
  in this state, for the purposes of this article, if  its  activities  in
  this  state are limited solely to (a) investing or trading in stocks and
  securities for its own account within the  meaning  of  clause  (ii)  of
  subparagraph  (A)  of  paragraph  (2) of subsection (b) of section eight
  hundred sixty-four of the internal revenue  code  or  (b)  investing  or
  trading  in commodities for its own account within the meaning of clause
  (ii) of subparagraph (B) of paragraph (2) of subsection (b)  of  section
  eight  hundred  sixty-four  of  the  internal  revenue  code  or (c) any
  combination of activities described in paragraphs (a) and  (b)  of  this
  subdivision. For purposes of this subdivision, an alien corporation is a
  corporation  organized  under  the  laws  of a country, or any political
  subdivision thereof, other than the United States.
    3. Any receiver, referee, trustee, assignee or other fiduciary, or any
  officer or agent appointed by any court, who conducts  the  business  of
  any  corporation, shall be subject to the tax imposed by this article in
  the same manner and to the same extent as if the business were conducted
  by the agents or officers of such corporation. A  dissolved  corporation
  which  continues  to  conduct  business shall also be subject to the tax
  imposed by this article.
    4. Corporations liable to tax under sections one hundred  eighty-three
  to  one  hundred  eighty-five,  inclusive,  corporations  taxable  under
  articles thirty-two and thirty-three of this chapter, any trust  company
  organized  under  a law of this state all of the stock of which is owned
  by not less than twenty savings banks organized  under  a  law  of  this
  state,  bank  holding  companies  filing a combined return in accordance
  with subdivision (f) of  section  fourteen  hundred  sixty-two  of  this
  chapter  and  housing  companies organized and operating pursuant to the
  provisions of article two or article five of the private housing finance
  law and housing development fund companies  organized  pursuant  to  the
  provisions  of  article  eleven of the private housing finance law shall
  not be subject to tax under this article.
    * 5. For any taxable year of a real estate investment trust as defined
  in section eight hundred fifty-six  of  the  internal  revenue  code  of
  nineteen  hundred  fifty-four  in which such trust is subject to federal
  income taxation under section eight hundred fifty-seven  of  such  code,
  such trust shall be subject to a tax computed under either clause one of
  paragraph  (a)  of  subdivision  one  of section two hundred ten of this
  chapter with respect to its entire net income or clause four,  whichever
  is greater, and shall not be subject to any tax under article thirty-two
  of  this  chapter.  In  the  case  of  such a trust the term "entire net
  income" means "real estate investment trust taxable income"  as  defined
  in paragraph two of subdivision (b) of section eight hundred fifty-seven
  (as  modified  by  section  eight  hundred  fifty-eight) of the internal
  revenue code of nineteen hundred  fifty-four  plus  the  amount  taxable
  under  paragraph  three  of  subdivision  (b)  of  section eight hundred
  fifty-seven of such  code,  subject  to  the  modification  required  by
  subdivision  nine  of  section  two hundred eight of this article (other
  than the modification required by clause two of paragraph  (a)  thereof)
  including  the  modifications  required  by  paragraphs  (d)  and (e) of
  subdivision three of section two hundred ten of this article.
    * NB Applies to taxable years prior to December 31, 1986
    * 5. For any taxable year of a real estate investment trust as defined
  in section eight hundred fifty-six of the internal revenue code in which
  such trust is subject to federal income  taxation  under  section  eight
  hundred  fifty-seven  of such code, such trust shall be subject to a tax
  computed  under  either  paragraph (a), (c) or (d) of subdivision one of
  section two hundred ten of this  chapter,  whichever  is  greatest,  and
  shall  not  be  subject  to  any  tax  under  article thirty-two of this
  chapter. In the case of such a trust the term "entire net income"  means
  "real  estate  investment  trust taxable income" as defined in paragraph
  two of subdivision (b) of section eight hundred fifty-seven (as modified
  by section eight hundred fifty-eight) of the internal revenue code  plus
  the  amount  taxable under paragraph three of subdivision (b) of section
  eight hundred fifty-seven of such  code,  subject  to  the  modification
  required  by  subdivision  nine  of  section  two  hundred eight of this
  article (other than the modification required  by  subparagraph  two  of
  paragraph   (a)   thereof)   including  the  modifications  required  by
  paragraphs (d) and (e) of subdivision three of section two  hundred  ten
  of this article.
    * NB Applies to taxable years beginning after December 31, 1986
    *  6.  For  any  taxable  year  of  a  DISC, not exempt from tax under
  paragraph (i) of subdivision nine of section two hundred eight  of  this
  article,  the  taxes imposed by subdivision one of this section shall be
  computed only under either clause two or clause four of paragraph (a) of
  subdivision one of section two hundred ten of this chapter, whichever is
  greater, and paragraph (b) of such subdivision.
    * NB Applies to taxable years prior to December 31, 1986
    * 6. For any taxable year  of  a  DISC,  not  exempt  from  tax  under
  paragraph  (i)  of subdivision nine of section two hundred eight of this
  article, the taxes imposed by subdivision one of this section  shall  be
  computed  only  under  either paragraph (b) or (d) of subdivision one of
  section two hundred ten of  this  chapter,  whichever  is  greater,  and
  paragraph (e) of such subdivision.
    * NB Applies to taxable years beginning after December 31, 1986
    *  7.  For  any  taxable  year,  beginning  on or after January first,
  nineteen hundred eighty of a regulated investment company, as defined in
  section eight hundred fifty-one of the internal revenue code of nineteen
  hundred fifty-four, in which such company is subject to  federal  income
  taxation  under  section  eight  hundred  fifty-two  of  such code, such
  company shall be subject to a tax computed under either  clause  one  or
  four  of  paragraph (a) of subdivision one of section two hundred ten of
  this chapter, whichever is greater, and shall not be subject to any  tax
  under  article thirty-two of this chapter. In the case of such a company
  the term "entire net income" means "investment company  taxable  income"
  as  defined in paragraph two of subdivision (b) of section eight hundred
  fifty-two, as modified by  section  eight  hundred  fifty-five,  of  the
  internal  revenue  code  of  nineteen hundred fifty-four plus the amount
  taxable under paragraph  three  of  subdivision  (b)  of  section  eight
  hundred  fifty-two  of such code subject to the modification required by
  subdivision nine of section two hundred eight  of  this  chapter,  other
  than  the  modification  required  by clause two of paragraph (a) and by
  paragraph (f) thereof, including the modification required by paragraphs
  (d) and (e) of subdivision three of section  two  hundred  ten  of  this
  chapter.
    * NB Applies to taxable years prior to December 31, 1986
    *  7.  For  any  taxable  year,  beginning  on or after January first,
  nineteen hundred eighty of a regulated investment company, as defined in
  section eight hundred fifty-one of the internal revenue code,  in  which
  such  company  is subject to federal income taxation under section eight
  hundred fifty-two of such code, such company shall be subject to  a  tax
  computed  under  either  paragraph (a), (c) or (d) of subdivision one of
  section two hundred ten of this  chapter,  whichever  is  greatest,  and
  shall  not  be  subject  to  any  tax  under  article thirty-two of this
  chapter. In the case of such a company  the  term  "entire  net  income"
  means "investment company taxable income" as defined in paragraph two of
  subdivision  (b)  of  section  eight  hundred  fifty-two, as modified by
  section eight hundred fifty-five, of the internal revenue code plus  the
  amount taxable under paragraph three of subdivision (b) of section eight
  hundred  fifty-two  of such code subject to the modification required by
  subdivision nine of section two hundred eight  of  this  chapter,  other
  than  the modification required by subparagraph two of paragraph (a) and
  by  paragraph  (f)  thereof,  including  the  modification  required  by
  paragraphs  (d)  and (e) of subdivision three of section two hundred ten
  of this chapter.
    * NB Applies to taxable years beginning after December 31, 1986
    9. For any taxable year beginning on or after January first,  nineteen
  hundred  eighty-seven,  an  organization  described  in paragraph two or
  twenty-five of subdivision (c)  of  section  five  hundred  one  of  the
  internal  revenue  code  of  nineteen hundred eighty-six shall be exempt
  from all taxes imposed by this article.
    10.  QSSS.  For  exemption  from  tax  of  a  qualified  subchapter  S
  subsidiary, see paragraph (k) of subdivision nine of section two hundred
  eight of this article.