2012 New York Consolidated Laws
TAX - Tax
Article 9-A - (208 - 219-A) FRANCHISE TAX ON BUSINESS CORPORATIONS
209 - 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 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.
    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, a captive REIT or a captive RIC filing a combined return  under
  either   subdivision  (f)  of  section  fourteen  hundred  sixty-two  or
  subdivision (f) of section fifteen hundred fifteen 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 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  or  article
  thirty-three  of this chapter except for a captive REIT required to file
  a combined return under subdivision  (f)  of  section  fourteen  hundred
  sixty-two  or subdivision (f) of section fifteen hundred fifteen of this
  chapter. In the case of such a real estate investment trust, including a
  captive REIT as defined in section two of this chapter, 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.
    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.
    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 or article
  thirty-three of this chapter except for a captive RIC required to file a
  combined return  under  subdivision  (f)  of  section  fourteen  hundred
  sixty-two  or subdivision (f) of section fifteen hundred fifteen of this
  chapter. In the case of such a regulated investment company, including a
  captive RIC as defined in section two of this chapter, 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.
    8. For any taxable year beginning  on  or  after  January  first,  two
  thousand  six, a corporation that is no longer doing business, employing
  capital, or owning or leasing property in this state in a  corporate  or
  organized capacity that has filed a final tax return with the department
  for  the  last tax year it was doing business and has no outstanding tax
  liability for such final tax return or any  tax  return  for  prior  tax
  years  shall  be  exempt  from  all  taxes  imposed  by paragraph (d) of
  subdivision one of section two hundred ten of this article for tax years
  following the last year such corporation was doing business.
    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.