1505-A - Temporary metropolitan transportation business tax surcharge on insurance corporations.

§ 1505-a. Temporary metropolitan transportation business tax surcharge  on  insurance corporations. (a) (1) Every domestic insurance corporation  and every  foreign  or  alien  insurance  corporation,  and  every  life  insurance  corporation  described  in subdivision (b) of section fifteen  hundred one of  this  article,  for  the  privilege  of  exercising  its  corporate  franchise,  or of doing business, or of employing capital, or  of  owning  or   leasing   property   in   the   metropolitan   commuter  transportation  district  in  a  corporate  or organized capacity, or of  maintaining  an  office  in  the  metropolitan  commuter  transportation  district,  for  all  or  any  part of its taxable years commencing on or  after January first, nineteen  hundred  eighty-two,  but  ending  before  December   thirty-first,  two  thousand  thirteen,  except  corporations  specified in subdivision (c) of section fifteen hundred twelve  of  this  article,  shall annually pay, in addition to the taxes otherwise imposed  by this article, a tax surcharge on the taxes imposed under this article  after the deduction  of  any  credits  otherwise  allowable  under  this  article  as allocated to such district. Such taxes shall be allocated to  such  district  for  purposes  of  computing  such  tax  surcharge  upon  taxpayers  subject  to  tax  under  subdivision  (b)  of section fifteen  hundred ten of this article by applying the methodology, procedures  and  computations  set  forth  in subdivisions (a) and (b) of section fifteen  hundred four of this article, except that references to  terms  denoting  New   York   premiums,  and  total  wages,  salaries,  personal  service  compensation and commissions within New York shall be read  as  denoting  within  the  metropolitan  commuter  transportation  district  and terms  denoting total premiums and  total  wages,  salaries,  personal  service  compensation and commissions shall be read as denoting within the state.  If  it  shall  appear  to  the  commissioner that the application of the  methodology, procedures and computations set forth in such  subdivisions  (a)  and  (b) does not properly reflect the activity, business or income  of a taxpayer within the metropolitan commuter transportation  district,  then  the  commissioner  shall  be  authorized,  in  the  commissioner's  discretion, to adjust such methodology, procedures and computations  for  the purpose of allocating such taxes by:    (A) excluding one or more factors therein;    (B)  including  one  or  more other factors therein, such as expenses,  purchases, receipts other  than  premiums,  real  property  or  tangible  personal property; or    (C)  any  other similar or different method which allocates such taxes  by  attributing  a  fair  and  proper  portion  of  such  taxes  to  the  metropolitan  commuter  transportation  district.  The commissioner from  time to time shall publish all rulings of general public  interest  with  respect  to any application of the provisions of the preceding sentence.  The  commissioner  may  promulgate  rules  and  regulations  to  further  implement the provisions of this section.    (2)  Such  taxes  shall  be allocated to such district for purposes of  computing such tax surcharge upon taxpayers subject to tax under section  fifteen hundred two-a of  this  article  pursuant  to  a  fraction,  the  denominator  of  which shall be the direct premiums subject to tax under  section fifteen hundred ten of this article, and the numerator of  which  shall  be  the  direct  premiums  subject  to  tax under section fifteen  hundred ten of this  article  that  are  written  on  risks  located  or  resident in the metropolitan commuter transportation district, including  premiums  written,  procured  or  received  in the metropolitan commuter  transportation district on business that cannot be specifically assigned  as located or resident  in  an  area  of  New  York  state  outside  the  metropolitan  commuter  transportation  district, or in another state or  states; provided, however, in the case of  special  risk  premiums,  thenumerator  shall  include  only  those  premiums  written,  procured  or  received  in  the  metropolitan  commuter  transportation  district   on  property  or  risks  located  or  resident  in the metropolitan commuter  transportation district. If it shall appear to the commissioner that the  application of the methodology, procedures and computations set forth in  this  paragraph  does  not  properly  reflect  the activity, business or  income of a taxpayer within  the  metropolitan  commuter  transportation  district,   then   the   commissioner   shall   be  authorized,  in  the  commissioner's discretion, to adjust such  methodology,  procedures  and  computations  for the purpose of allocating such taxes by: (A) excluding  the factor therein and including one  or  more  other  factors  such  as  expenses,  purchases,  receipts  other  than  premiums, real property or  tangible personal property; or (B) any other similar or different method  which allocates such taxes by attributing a fair and proper  portion  of  such  taxes  to  the  metropolitan commuter transportation district. The  commissioner from time to time shall  publish  all  rulings  of  general  public interest with respect to any application of the provisions of the  preceding   sentence.   The   commissioner   may  promulgate  rules  and  regulations to further implement the provisions of this section.    (3) Such tax surcharge shall be  computed  at  the  rate  of  eighteen  percent  of  the  taxes  imposed  under sections fifteen hundred one and  fifteen hundred ten of  this  article  as  limited  by  section  fifteen  hundred  five  of  this article, as allocated to such district, for such  taxable years or any part of such taxable years ending  before  December  thirty-first,  nineteen  hundred eighty-three after the deduction of any  credits otherwise allowable under this article, at the rate of seventeen  percent of the taxes imposed under such sections as limited  by  section  fifteen hundred five of this article, as allocated to such district, for  such  taxable years or any part of such taxable years ending on or after  December thirty-first, nineteen hundred eighty-three and before  January  first,  two  thousand three after the deduction of any credits otherwise  allowable under this article, and at the rate of  seventeen  percent  of  the  taxes  imposed  under sections fifteen hundred one, fifteen hundred  two-a, and fifteen hundred ten of this article, as limited or  otherwise  determined  by subdivision (a) or (b) of section fifteen hundred five of  this article, as allocated to such district, for such taxable  years  or  any  part  of such taxable years ending after December thirty-first, two  thousand two after the deduction  of  any  credits  otherwise  allowable  under this article; provided, however, that the tax surcharge imposed by  this  section shall not be imposed upon any taxpayer for more than three  hundred seventy-two months. Provided however,  that  for  taxable  years  commencing  on  or  after  July  first, two thousand, and in the case of  taxpayers subject to tax under section fifteen  hundred  two-a  of  this  article,  for taxable years of such taxpayers beginning on or after July  first, two thousand and before January first, two thousand  three,  such  surcharge  shall  be  calculated  as if (i) the rate of the tax computed  under paragraph one of subdivision (a) of section fifteen hundred two of  this article was nine percent and (ii) the rate of the limitation on tax  set forth in section fifteen hundred five of this article for  domestic,  foreign   and   alien   insurance  corporations  except  life  insurance  corporations was two and six-tenths percent.    (b) The term metropolitan commuter transportation district as used  in  this  section  shall  be  defined  pursuant  to  section  twelve hundred  sixty-two of the public authorities law.    (c) Notwithstanding any contrary provisions of state or local law, the  tax surcharge imposed under this section  shall  not  be  allowed  as  a  deduction  in  the  computation  of any state or local tax imposed under  this chapter or any chapter or local  law.  The  credits  set  forth  insection  fifteen  hundred  eleven  of  this article shall not be allowed  against the tax surcharge imposed by this section.    (d)  (1) If, by the laws of any state other than this state, or by the  action of any public official of such other state, any insurer organized  or domiciled in this state,  or  the  duly  authorized  agents  thereof,  subject  to  the business tax surcharge imposed by this section shall be  required to pay taxes for the privilege of doing business in such  other  state  which  taxes are imposed or assessed because of the taxes imposed  or assessed under this section, in computing the  tax  imposed  by  this  section  a credit shall be allowed for taxes paid to other states, which  credit shall be determined pursuant to the provisions of  this  section;  provided, however, the credit allowed any insurer under this subdivision  shall  in  no  event  be  greater than the tax surcharge payable by such  insurer pursuant to this section for the taxable year  with  respect  to  which such amount has been imposed or assessed by such other states.    (2)  In addition to any other requirements of this article, an insurer  claiming a credit under this subdivision shall  attach  to  the  returns  required pursuant to this section and section fifteen hundred fifteen of  this  article a computation identifying the credit attributable to taxes  paid to other states because  of  the  tax  surcharge  imposed  by  this  section,  which  credit  shall be further broken down to reflect amounts  and taxable years to which the retaliatory  taxes  giving  rise  to  the  credit  relate.  The  credit  attributable to taxes paid to other states  because of the tax surcharge  imposed  by  this  section  shall  be  the  difference between: (i) the credit which would be claimed by the insurer  pursuant  to  subdivision  (c) of section fifteen hundred eleven of this  chapter if the tax surcharge imposed by this section were  permitted  in  the  computation of such credit, and (ii) the credit which is claimed by  such insurer pursuant to such subdivision (c).    (3) To the  extent  not  inconsistent  with  the  provisions  of  this  subdivision,  the  provisions of paragraphs four and five of subdivision  (c) of section fifteen hundred eleven of this chapter shall  apply  with  respect to the credit allowed under this subdivision.    (4)  No  credit  against  taxes  paid  to  other  jurisdictions  under  subdivision (c) of section fifteen hundred eleven of this article  shall  be  allowed  for  any  taxes  paid  under  this  section by any domestic  insurance corporation, including life insurance corporations subject  to  tax under this section.    (e)  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  tax  surcharges  imposed  by  this  section, such  automatic extension shall be allowed only if a taxpayer files  with  the  commissioner  an  application  for  extension in such form and manner as  said commissioner may prescribe by regulation and such taxpayer pays  on  or  before  the  date  of  such  filing in addition to any other amounts  required under this article, either ninety percent  of  the  entire  tax  required to be paid under this section for the applicable period, or not  less  than  the  tax  surcharge  shown  on the taxpayer's return for the  preceding taxable year, if such preceding taxable  year  was  a  taxable  year  of  twelve months. 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,  and such tax surcharge or the balance thereof,  imposed on any taxpayer which ceases to exercise  its  franchise  or  be  subject to the tax surcharge imposed by this section shall be payable to  the  commissioner  at  the  time  the  return  is  required to be filed,  provided such tax surcharge of such domestic, foreign or alien insurance  corporation including  life  insurance  corporations,  as  described  insubdivision (b) of section fifteen hundred one of this article, shall be  subject  to  adjustment  as the circumstances may require; all other tax  surcharges of  any  such  taxpayer,  which  pursuant  to  the  foregoing  provisions  of this section would otherwise be payable subsequent to the  time such return is required to be filed, shall nevertheless be  payable  at such time. All of the provisions of this article presently applicable  are applicable to the tax surcharge imposed by this section.