2019 New York Laws
TAX - Tax
Article 33 - Franchise Taxes on Insurance Corporations
1520 - Tax Surcharge.

§  1520.  Tax  surcharge.  (a)  In  addition  to the tax imposed under
sections fifteen hundred one and fifteen hundred ten  of  this  article,
there  is  hereby  imposed,  (1)  for  taxable  years  ending after June
thirtieth, nineteen hundred eighty-nine and before July first,  nineteen
hundred  ninety  a tax surcharge at the rate of two and one-half percent
of the tax imposed pursuant to such sections  fifteen  hundred  one  and
fifteen  hundred  ten  of  this  article,  as limited by section fifteen
hundred five of this article, before deduction of  any  credits  against
tax  otherwise  allowable under this article for all or any part of such
taxable years, (2)  for  taxable  years  ending  after  June  thirtieth,
nineteen   hundred  ninety  and  before  July  first,  nineteen  hundred
ninety-four, and until such rate is superseded, a tax surcharge  at  the
rate  of  fifteen  percent  of the tax imposed pursuant to such sections
fifteen hundred one and fifteen hundred ten of this article, as  limited
by  section fifteen hundred five of this article, after deduction of any
credits against tax otherwise allowable  under  this  article,  (3)  for
taxable  years ending after June thirtieth, nineteen hundred ninety-four
and before July first, nineteen hundred ninety-five, and until such rate
is superseded, a tax surcharge at the rate of ten  percent  of  the  tax
imposed  pursuant  to  such  sections  fifteen  hundred  one and fifteen
hundred ten of this article, as limited by section fifteen hundred  five
of  this  article,  after deduction of any credits against tax otherwise
allowable under this article, (4) for taxable years  ending  after  June
thirtieth,  nineteen hundred ninety-five and before July first, nineteen
hundred ninety-six, and until such rate is superseded, a  tax  surcharge
at the rate of five percent of the tax imposed pursuant to such sections
fifteen  hundred one and fifteen hundred ten of this article, as limited
by section fifteen hundred five of this article, after deduction of  any
credits  against tax otherwise allowable under this article, and (5) for
taxable years ending after June thirtieth, nineteen  hundred  ninety-six
and before July first, nineteen hundred ninety-seven, a tax surcharge at
the  rate  of  zero percent of the tax imposed pursuant to such sections
fifteen hundred one and fifteen hundred ten of this article, as  limited
by  section fifteen hundred five of this article, after deduction of any
credits against tax otherwise allowable under this article. However, the
tax surcharge imposed by this section at the rate of  two  and  one-half
percent  shall  not  be  imposed  upon any taxpayer for more than twelve
months, the tax surcharge imposed under this  section  at  the  rate  of
fifteen  percent  shall  not  be  imposed  on any taxpayer for more than
forty-eight months, and the tax surcharges imposed by  this  section  at
the  rates  of  ten  percent,  five  percent and zero percent shall not,
respectively, be imposed upon any taxpayer for more than twelve  months,
and  the  commissioner  shall  prescribe by regulation or instructions a
method of proration designed to effectuate such result.  The  limitation
on  tax  provided  for  in  section fifteen hundred five of this article
shall not be applicable to the tax surcharge imposed  by  this  section.
The  credits  against  tax  otherwise  allowable  under  section fifteen
hundred eleven of this article shall not be allowed as a credit  against
the tax surcharge imposed by this section. A taxpayer which has made the
election  provided  for in section fifteen hundred two-a of this article
shall nevertheless compute its tax under this section as if it  computed
its taxes pursuant to the provisions of sections fifteen hundred two and
fifteen hundred ten of this article.
  (b)  (1)  The  provisions  concerning  returns  under  section fifteen
hundred fifteen of this article shall be  applicable  to  this  section,
except  that  for  purposes of an automatic extension for six months for
filing a return  covering  the  taxes  imposed  by  this  article,  such
automatic extension shall be allowed, for taxable years to which the tax

surcharge  imposed  by this section apply, only if a taxpayer files with
the commissioner an application  for  extension  in  such  form  as  the
commissioner may prescribe and pays on or before the date of such filing
in  addition  to  any other amounts required under this article, two and
one-half percent, fifteen percent, ten percent,  five  percent  or  zero
percent,  whichever  is the rate applicable to the taxable year pursuant
to subdivision (a) of this section, of the amount properly estimated  as
provided  in  subdivision (b) of section fifteen hundred sixteen of this
article as its taxes payable under  sections  fifteen  hundred  one  and
fifteen  hundred  ten  of  this article, before deduction of any credits
against tax otherwise allowable under section fifteen hundred eleven  of
this article in the case of the tax surcharge imposed at the rate of two
and  one-half  percent,  and  after deduction of any credits against tax
otherwise allowable under section fifteen hundred eleven of this article
in the case of the tax surcharge imposed at the rate  of  fifteen,  ten,
five or zero percent. The tax surcharge imposed by this section shall be
payable  to  the commissioner in full at the time the return is required
to be filed.
  (2)  Except  as  otherwise  provided  in  this  section,  all  of  the
provisions  of  this  article, except for sections fifteen hundred five,
fifteen hundred five-A and fifteen hundred eleven, presently  applicable
are  applicable  to  the tax surcharge imposed by this section with such
modifications as may be necessary to adapt  such  language  to  the  tax
surcharge  imposed by this section. Such provisions shall apply with the
same force and effect as if those provisions had been set forth in  full
in  this  section  except  to  the  extent  that any provision is either
inconsistent with a provision of this section or not relevant to the tax
surcharge imposed by this section and to that end a  reference  in  this
article  to  the tax imposed by sections fifteen hundred one and fifteen
hundred ten of this article shall be read as  a  reference  to  the  tax
surcharge  imposed  by this section, and to the sum of such tax and such
tax surcharge in the case  of  sections  fifteen  hundred  thirteen  and
fifteen  hundred  fourteen  of  this  article  and such other provisions
requiring such reading in order  to  effectuate  the  purposes  of  this
provision, unless a different meaning is clearly required.
  (c)  Coordination with section fifteen hundred five-A of this article.
The amount of tax surcharge imposed pursuant to this section  shall  not
be  included  in  any calculation of a tax surcharge imposed pursuant to
section fifteen hundred five-A of this article.
  (d) Insofar as subdivision (a) of this section establishes a  rate  of
fifteen  percent  in  the  case  of  taxable  years  ending  after  June
thirtieth, nineteen hundred  ninety  and  before  July  first,  nineteen
hundred  ninety-four  and  until  such rate is superseded, a rate of ten
percent in the case  of  taxable  years  ending  after  June  thirtieth,
nineteen  hundred  ninety-four  and  before July first, nineteen hundred
ninety-five and until such rate is superseded, a rate of five percent in
the case of taxable years ending after June thirtieth, nineteen  hundred
ninety-five and before July first, nineteen hundred ninety-six and until
such  rate  is  superseded,  and  a  rate of zero percent in the case of
taxable years ending after June thirtieth, nineteen  hundred  ninety-six
and  before  July  first,  nineteen hundred ninety-seven, the transition
from such rate of fifteen percent to such rate of ten percent, from such
rate of ten percent to such rate of five percent, and from such rate  of
five  percent  to  such  rate of zero percent, shall be deemed to occur,
respectively, on the first day of the seventh  month  of  each  of  such
taxable  years,  with  the result that for purposes of implementation of
such changes in rates, and notwithstanding such subdivision  (a),  there
is  hereby  imposed  with respect to all taxable years ending after June

thirtieth, nineteen hundred ninety-four and before July first,  nineteen
hundred  ninety-five,  including  taxable  years  of  fewer  than twelve
months, a tax surcharge at the rate  of  twelve  and  one-half  percent;
there  is  hereby imposed with respect to all taxable years ending after
June thirtieth, nineteen hundred  ninety-five  and  before  July  first,
nineteen  hundred  ninety-six,  including  taxable  years  of fewer than
twelve months, a tax  surcharge  at  the  rate  of  seven  and  one-half
percent;  and  there is hereby imposed with respect to all taxable years
ending after June thirtieth, nineteen hundred ninety-six and before July
first, nineteen hundred ninety-seven, including taxable years  of  fewer
than  twelve  months,  a  tax  surcharge at the rate of two and one-half
percent.  In  addition,  for  purposes  of  implementation  of  all  the
provisions  of  this  section references to ten percent shall be read as
references to twelve and one-half percent, references  to  five  percent
shall be read as references to seven and one-half percent and references
to zero percent shall be read as references to two and one-half percent.