S T A T E O F N E W Y O R K ________________________________________________________________________ 7542 I N S E N A T E June 1, 2012 ___________ Introduced by Sen. O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to the imposition of the personal income tax upon foreign partnerships THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subsection (f) of section 601 of the tax law, as amended by 2 chapter 248 of the laws of 1997, is amended to read as follows: 3 (f) Partners and partnerships. (1) A partnership as such shall not be 4 subject to tax under this article. Persons carrying on business as part- 5 ners shall be liable for tax under this article only in their separate 6 or individual capacities. As used in this article, the term "partner- 7 ship" shall include, unless a different meaning is clearly required, a 8 subchapter K limited liability company. The term "subchapter K limited 9 liability company" shall mean a limited liability company classified as 10 a partnership for federal income tax purposes. The term "limited liabil- 11 ity company" means a domestic limited liability company or a foreign 12 limited liability company, as defined in section one hundred two of the 13 limited liability company law, a limited liability investment company 14 formed pursuant to section five hundred seven of the banking law, or a 15 limited liability trust company formed pursuant to section one hundred 16 two-a of the banking law. 17 (2) A FOREIGN PARTNERSHIP SHALL NOT BE DEEMED TO HAVE NEXUS IN THIS 18 STATE, AND THE NON-RESIDENT PARTNERS OF SUCH FOREIGN PARTNERSHIP SHALL 19 NOT BE DEEMED TO HAVE NEW YORK-SOURCE INCOME, BY REASON OF SUCH FOREIGN 20 PARTNERSHIP USING FULFILLMENT SERVICES OF A PERSON OR ENTITY AND OWNING 21 PROPERTY STORED ON THE PREMISES OF SUCH PERSON OR ENTITY IN CONJUNCTION 22 WITH SUCH SERVICES. THE TERM "FULFILLMENT SERVICES" SHALL MEAN ANY OF 23 THE FOLLOWING SERVICES PERFORMED BY AN ENTITY ON ITS PREMISES ON BEHALF 24 OF A PURCHASER: (I) THE ACCEPTANCE OF ORDERS ELECTRONICALLY OR BY MAIL, 25 TELEPHONE, TELEFAX OR INTERNET; (II) RESPONSES TO CONSUMER CORRESPOND- 26 ENCE OR INQUIRIES ELECTRONICALLY OR BY MAIL, TELEPHONE, TELEFAX OR 27 INTERNET; (III) BILLING AND COLLECTION ACTIVITIES; OR (IV) THE SHIPMENT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15966-03-2 S. 7542 2 1 OF ORDERS FROM AN INVENTORY OF PRODUCTS OFFERED FOR SALE BY THE PURCHAS- 2 ER. 3 S 2. This act shall take effect immediately and shall apply to taxable 4 years beginning on or after January 1, 2013.