Bill Text: NY A02773 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to net income base
Spectrum: Partisan Bill (Republican 31-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A02773 Detail]
Download: New_York-2009-A02773-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2773
2009-2010 Regular Sessions
I N A S S E M B L Y
January 21, 2009
___________
Introduced by M. of A. KOLB, TEDISCO, O'MARA, OAKS, REILICH, BACALLES,
CORWIN -- Multi-Sponsored by -- M. of A. ALFANO, AMEDORE, BALL,
BARCLAY, BARRA, BURLING, BUTLER, CONTE, CROUCH, DUPREY, ERRIGO, FINCH,
HAWLEY, P. LOPEZ, MILLER, MOLINARO, QUINN, RAIA, SALADINO, SAYWARD,
SCOZZAFAVA, TOBACCO -- read once and referred to the Committee on Ways
and Means
AN ACT to amend the tax law, in relation to net income base
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The opening paragraph and subparagraphs (iv) and (vi) of
2 paragraph (a) of subdivision 1 of section 210 of the tax law, as amended
3 by section 2 of part N of chapter 60 of the laws of 2007, are amended to
4 read as follows:
5 Entire net income base. For taxable years beginning before July first,
6 nineteen hundred ninety-nine, the amount prescribed by this paragraph
7 shall be computed at the rate of nine percent of the taxpayer's entire
8 net income base. For taxable years beginning after June thirtieth, nine-
9 teen hundred ninety-nine and before July first, two thousand, the amount
10 prescribed by this paragraph shall be computed at the rate of eight and
11 one-half percent of the taxpayer's entire net income base. For taxable
12 years beginning after June thirtieth, two thousand and before July
13 first, two thousand one, the amount prescribed by this paragraph shall
14 be computed at the rate of eight percent of the taxpayer's entire net
15 income base. For taxable years beginning after June thirtieth, two thou-
16 sand one and before January first, two thousand seven, the amount
17 prescribed by this paragraph shall be computed at the rate of seven and
18 one-half percent of the taxpayer's entire net income base. For taxable
19 years beginning [on or] after January first, two thousand seven AND
20 BEFORE JANUARY FIRST, TWO THOUSAND TEN, the amount prescribed by this
21 paragraph shall be computed at the rate of seven and one-tenth percent
22 of the taxpayer's entire net income base. FOR TAXABLE YEARS BEGINNING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05048-01-9
A. 2773 2
1 ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, THE AMOUNT PRESCRIBED BY
2 THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF SIX AND EIGHTY-FIVE ONE
3 HUNDREDTH PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The taxpay-
4 er's entire net income base shall mean the portion of the taxpayer's
5 entire net income allocated within the state as hereinafter provided,
6 subject to any modification required by paragraphs (d) and (e) of subdi-
7 vision three of this section. However, in the case of a small business
8 taxpayer, as defined in paragraph (f) of this subdivision, the amount
9 prescribed by this paragraph shall be computed pursuant to subparagraph
10 (iv) of this paragraph and in the case of a manufacturer, as defined in
11 subparagraph (vi) of this paragraph, the amount prescribed by this para-
12 graph shall be computed pursuant to subparagraph (vi) of this paragraph.
13 (iv) for taxable years beginning [on or] after January first, two
14 thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND TEN, if the entire
15 net income base is not more than two hundred ninety thousand dollars the
16 amount shall be six and one-half percent of the entire net income base;
17 if the entire net income base is more than two hundred ninety thousand
18 dollars but not over three hundred ninety thousand dollars the amount
19 shall be the sum of (1) eighteen thousand eight hundred fifty dollars,
20 (2) seven and one-tenth percent of the excess of the entire net income
21 base over two hundred ninety thousand dollars but not over three hundred
22 ninety thousand dollars and (3) four and thirty-five hundredths percent
23 of the excess of the entire net income base over three hundred fifty
24 thousand dollars but not over three hundred ninety thousand dollars.
25 FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
26 IF THE ENTIRE NET INCOME IS NOT OVER THREE HUNDRED NINETY THOUSAND
27 DOLLARS THE AMOUNT SHALL BE SIX PERCENT OF THE ENTIRE NET INCOME BASE;
28 (vi) for taxable years beginning [on or] after January thirty-first,
29 two thousand seven AND BEFORE JANUARY FIRST, TWO THOUSAND TEN, the
30 amount prescribed by this paragraph for a taxpayer which is a qualified
31 New York manufacturer, shall be computed at the rate of six and one-half
32 (6.5) percent of the taxpayer's entire net income base. FOR TAXABLE
33 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, THE AMOUNT
34 PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF SIX
35 PERCENT OF THE TAXPAYER'S ENTIRE NET INCOME BASE. The term "manufactur-
36 er" shall mean a taxpayer which during the taxable year is principally
37 engaged in the production of goods by manufacturing, processing, assem-
38 bling, refining, mining, extracting, farming, agriculture, horticulture,
39 floriculture, viticulture or commercial fishing. However, the gener-
40 ation and distribution of electricity, the distribution of natural gas,
41 and the production of steam associated with the generation of electric-
42 ity shall not be qualifying activities for a manufacturer under this
43 subparagraph. Moreover, the combined group shall be considered a
44 "manufacturer" for purposes of this subparagraph only if the combined
45 group during the taxable year is principally engaged in the activities
46 set forth in this paragraph, or any combination thereof. A taxpayer or a
47 combined group shall be "principally engaged" in activities described
48 above if, during the taxable year, more than fifty percent of the gross
49 receipts of the taxpayer or combined group, respectively, are derived
50 from receipts from the sale of goods produced by such activities. In
51 computing a combined group's gross receipts, intercorporate receipts
52 shall be eliminated. A "qualified New York manufacturer" is a manufac-
53 turer which has property in New York which is described in clause (A) of
54 subparagraph (i) of paragraph (b) of subdivision twelve of this section
55 and either (I) the adjusted basis of such property for federal income
56 tax purposes at the close of the taxable year is at least one million
A. 2773 3
1 dollars or (II) all of its real and personal property is located in New
2 York. In addition, a "qualified New York manufacturer" means a taxpayer
3 which is defined as a qualified emerging technology company under para-
4 graph (c) of subdivision one of section thirty-one hundred two-e of the
5 public authorities law regardless of the ten million dollar limitation
6 expressed in subparagraph one of such paragraph (c).
7 S 2. This act shall take effect immediately.
