S3772-2013 Actions

• May 21, 2013: REPORTED AND COMMITTED TO FINANCE
• Feb 14, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3772-2013 Meetings

S3772-2013 Votes

S3772-2013 Memo

BILL NUMBER:S3772

TITLE OF BILL:  An act to amend the tax law, in relation to the
franchise tax on business corporations

PURPOSE:  To eliminate all business taxes on manufacturers to
encourage the expansion of the manufacturing, sector in New York.

SUMMARY OF PROVISIONS:

ELIMINATING TAXES ON MANUFACTURERS: Over a three year period, the
legislation would provide manufacturers throughout New York State with
$495 million in tax relief- phasing out the taxes they pay under the
State's Corporate Franchise Tax and Personal Income Tax. The first
phase will begin for tax years beginning on January 1, 2014.  This
will save manufacturers $114 million in SFY 2013-14 and $495 million
when fully phased in.

JUSTIFICATION:  This bill will help create thousands of new private
sector manufacturing jobs by delivering tax relief to existing New
York manufacturers and encourage new manufacturers to locate in New
York.

LEGISLATIVE HISTORY: S.7663 of 2012

FISCAL IMPLICATIONS:  This bill will save New York businesses $114
million this year.

EFFECTIVE DATE: Effective immediately.

S3772-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         3772
 2013-2014 Regular Sessions
 I N  SENATE
 February 14, 2013
 
 Introduced  by  Sen.  SEWARD -- 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 franchise tax  on  busi
 ness corporations
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Subdivision 1 of section 209 of the tax law, as amended  by
 chapter 817 of the laws of 1987, is amended to read as follows:

 1.  For  the  privilege  of  exercising its corporate franchise, or of
 doing business, or of employing capital, or of owning or leasing proper
 ty 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 corpo
 rations 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.  PROVIDED HOWEVER, A MANUFACTURER AS DEFINED IN
 SECTION TWO HUNDRED TEN OF THIS ARTICLE SHALL  NOT  BE  SUBJECT  TO  TAX
 UNDER  THIS  ARTICLE  FOR  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY
 FIRST, TWO THOUSAND SIXTEEN; IF THE  MANUFACTURER  HAS  ONE  HUNDRED  OR
 FEWER  EMPLOYEES  AND LESS THAN ONE MILLION DOLLARS IN GROSS INCOME SUCH
 MANUFACTURER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE FOR  TAXABLE
 YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN; IF THE
 MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND  LESS  THAN  FIVE  HUNDRED
 THOUSAND  DOLLARS IN GROSS INCOME SUCH MANUFACTURER SHALL NOT BE SUBJECT
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08383-01-3
 
       S. 3772                             2
 TO TAX UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANU
 ARY FIRST, TWO THOUSAND FOURTEEN.
 

S 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 39 to read as follows:

 (39)  IN  THE CASE OF A TAXPAYER WHO IS A PROPRIETOR OF, A PARTNER IN,
 AN S-CORPORATION SHAREHOLDER OF, A LIMITED LIABILITY COMPANY  MEMBER  OF
 OR  A LIMITED LIABILITY COMPANY MEMBER OF, A BUSINESS THAT IS A MANUFAC
 TURER, AS THE TERM IS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH  (A)  OF
 SUBDIVISION  ONE  OF  SECTION  TWO  HUNDRED  TEN OF THIS ARTICLE, TO THE
 EXTENT INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE  YEAR,  BUSINESS
 INCOME  OR SHARE OF BUSINESS INCOME FROM SUCH MANUFACTURING BUSINESS FOR
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
 PROVIDED HOWEVER IF SUCH BUSINESS THAT IS A MANUFACTURER HAS ONE HUNDRED
 OR FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN BUSINESS INCOME,
 THIS PARAGRAPH SHALL BE APPLICABLE FOR TAXABLE  YEARS  BEGINNING  ON  OR
 AFTER  JANUARY  FIRST, TWO THOUSAND FIFTEEN, FURTHER PROVIDED HOWEVER IF
 SUCH BUSINESS THAT IS A MANUFACTURER HAS FIFTY OR  FEWER  EMPLOYEES  AND
 LESS  THAN  FIVE  HUNDRED THOUSAND DOLLARS IN BUSINESS INCOME THIS PARA
 GRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANU
 ARY FIRST, TWO THOUSAND FOURTEEN.
 

S 3.  This act shall take effect immediately.

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