N.Y. General City Model 772/66 § 12: Tax based on net income; imposition; minimum tax; new incorporations; dissolution; consolidations; mergers; etc

§ 12. Tax based on net income; imposition; minimum tax; new

incorporations; dissolution; consolidations; mergers; etc. 1. For the

privilege of doing business in the city:

(a) Every bank and savings and loan association organized under the

authority of this state;

(b) Every trust company incorporated, organized or formed under, by or

pursuant to a law of the state, other than a trust company all of the

stock of which is owned by not less than twenty savings banks organized

under a law of the state, and every domestic corporation authorized to

do a trust company's business solely or in connection with any other

business, under a general or special law of the state;

(c) Every other domestic financial corporation;

(d) Every incorporated foreign banker doing a banking business and

every other foreign financial corporation; and

(e) Every federal savings and loan association located within the

city,

shall annually pay a tax at the rate of four and one-half per centum

except that for the years nineteen hundred seventy-one and those

following, as an alternative, at the rate of five and sixty-three one

hundredths per centum, to be computed as provided in this subpart, upon

the basis of its net income for each calendar year, beginning with the

calendar year nineteen hundred sixty-six, next preceding the date when

such tax becomes due and, if the taxpayer is required to file a

declaration of estimated tax and to make payments on account of such

estimated tax as provided by section thirty-five of this part, upon the

basis of its net income for the calendar year with respect to which such

declaration is required to be filed.

2. Every such corporation for the privilege of doing business in the

city and every federal savings and loan association located in the city

shall be subject to a minimum tax of not less than ten dollars and not

less than one mill or, as an alternative for the years nineteen hundred

seventy-one and those following, a minimum tax of not less than twelve

and one-half dollars and not less than one and one quarter mills upon

each dollar of such a part of its issued capital stock on the last day

of the calendar year preceding that in which such tax becomes due, at

its face value, as the gross income of such corporation derived from

business carried on within the city, during such calendar year, bears to

its gross income derived from all business, both within and without the

city, during said year, but if such a corporation has stock without par

value, such stock shall be taken at its actual or market value, and not

less than five dollars per share, as may be determined by the director

of finance; except that a savings bank and savings and loan association

shall be subject to a minimum tax of not less than ten dollars and not

less than an amount equal to two per centum of the amount of interest or

dividends credited by it by depositors or shareholders during the

calendar year preceding that in which such tax becomes due or, as an

alternative, for the years nineteen hundred seventy-one and those

following, a minimum tax of not less than twelve and one-half dollars

and not less than an amount equal to two and one-half per centum of the

amount of interest or dividends credited to by it to depositors or

shareholders during the calendar year preceding that in which such tax

becomes due, provided, that, in determining such amount, each interest

or dividend credit to a depositor or shareholder shall be deemed to be

the interest or dividend actually credited or the interest or dividend

which would have been credited if it had been computed and credited at

the rate of two per centum per annum, whichever is less, and except also

that in the case of a trust company or savings bank incorporated in the

calendar year preceding that in which its first return under this

subpart shall be due and after the thirtieth day of June in such year,

the minimum tax, computed as in this subdivision provided, shall be

reduced one-twelfth for each month, or major portion thereof, subsequent

to said thirtieth day of June during which such trust company or savings

bank did not exercise the privilege of doing business in the city.

3. For the privilege of doing business in the city, every such

domestic corporation, except trust companies and savings banks, shall be

subject to a tax for the calendar year in which its organization

certificate is filed, and, for the privilege of doing business in the

city, every such foreign corporation shall be subject to a tax for the

calendar year in which it first does business in the city, and, every

federal savings and loan association located within the city shall be

subject to a tax for the calendar year in which it first becomes located

within the city, computed in the same manner and at the same rate as the

minimum tax under subdivision two of this section, except that the

income forming the basis for proration shall be the income for such

calendar year, and the issued capital stock shall be taken as of the

last day of such calendar year; provided, however, that the tax so

computed shall be reduced one-twelfth for each month, or major portion

thereof, in such calendar year, during which such corporation was not

doing business in the city, or, if a federal savings and loan

association, was not located in the city, and in no event shall the tax

be less than ten dollars or, as an alternative, for the year nineteen

hundred seventy-one and those following, not less than twelve and

one-half dollars.

4. For the privilege of doing business in the city, every such trust

company and savings bank which shall become incorporated between the

thirty-first day of December and the succeeding first day of July, shall

be subject to a tax for such period, computed in the same manner and at

the same rate as the minimum tax under subdivision two of this section,

except that the income forming the basis for proration shall be the

income for such period; and the issued capital stock, or interest

credited to depositors of a savings bank, shall be taken as of the last

day of such period; provided, however, that the tax so computed shall be

reduced one-half and an additional one-twelfth for each month, or major

portion thereof, in such period, during which such trust company or

savings bank was not doing business in the city, and in no event shall

the tax be less than ten dollars or, as an alternative, for the year

nineteen hundred seventy-one and those following, not less than twelve

and one-half dollars.

5. For the privilege of doing business in the city, every such

corporation, except trust companies and savings banks, which shall be

dissolved between the thirty-first day of December and the succeeding

second day of September, and shall not become merged or consolidated

with another corporation taxable under this subpart and, every such

foreign corporation which shall cease to do business in the city during

the same period, and every federal savings and loan association which

ceases to be located in the city during the same period, and shall not

become merged or consolidated with another corporation taxable under

this subpart, shall pay a tax for the period from the thirty-first day

of December up to the time of dissolution, ceasing to do business in the

city, or ceasing to be located in the city, as the case may be, equal to

that which would have been payable had it not been dissolved, ceased to

do business in the city, or ceased to be located in the city, except

that such tax shall be reduced one-third and an additional one-twelfth

for each month, or major portion thereof, prior to such succeeding

second day of September, during which such corporation was not doing

business in the city, or was not located in the city, and in no event

shall the tax be less than ten dollars or, as an alternative, for the

year nineteen hundred seventy-one and those following, not less than

twelve and one-half dollars. If such dissolution or cessation occurs

between the fifteenth day of March and the second day of September, and

if such corporation shall have filed its return on or before the

fifteenth day of March as required by section thirty-two of this part,

it may file a claim for refund as provided in section seventy-eight of

this title, showing any reduction in tax to which it may be entitled as

provided in the preceding sentence; and if it shall be made to appear

that the amount of tax due is less than the amount as computed on the

basis of the original return, the director of finance shall adjust the

computation of tax accordingly. If the amount of tax as so adjusted

shall be less than theretofore amount heretofore paid, the excess shall

be refunded by the comptroller as provided in subdivision one of section

seventy-seven of this title.

6. Every such trust company and savings bank, which shall be

dissolved, and shall not become merged or consolidated with another

corporation taxable under this subpart, shall, if dissolution takes

place between the thirtieth day of June and the succeeding first day of

January, be subject to a tax, for that part of such period in which it

had been doing business, computed in the same manner and at the same

rate as the minimum tax under subdivision two of this section, except

that the income forming the basis for proration shall be the income for

the calendar year in which such dissolution occurs; and the issued

capital stock, or interest credited to depositors of a savings bank,

shall be taken as of the date of dissolution; provided, however, that

the tax so computed shall be reduced one-half and an additional

one-twelfth for each month, or major portion thereof, between the date

of dissolution and the succeeding first day of January. If dissolution

occurs between the thirty-first day of December and the succeeding

sixteenth day of March, such trust company and savings bank shall be

subject to the same tax that would have been due from it on or before

the fifteenth day of March had it not been dissolved, except that such

tax shall be reduced one-twelfth for each month, or major portion

thereof, from the date of dissolution to the succeeding first day of

July, and shall be for the period beginning on the preceding first day

of July and ending on the date of dissolution. In no event shall the tax

under this subdivision be less than ten dollars or, as an alternative,

for the year nineteen hundred seventy-one and those following, not less

than twelve and one-half dollars.

7. In the case of a consolidation or merger of taxpayers, or in case a

national bank taxable under subpart two of this part shall be

consolidated or merged with a taxpayer under this subpart, or in case of

a series of such transactions, there shall be added to the net income of

the taxpayer resulting from such consolidations or mergers the net

income of the taxpayers which are consolidated or merged for the period

for which the taxpayer resulting from such consolidation or merger is

required to render any return under this subpart, except that net income

shall not be included if it has already been used as the basis for a tax

under this subpart, and the tax payable on the filing of such return

shall be based upon the entire net income reported therein. The

acquisition by a taxpayer, directly or indirectly, of the assets or

franchises of another taxpayer or national bank shall be deemed a merger

for the purposes of this section.

8. The tax imposed by this subpart shall be for the calendar year next

preceding the year in which it becomes due; except that with respect to

corporations subject to a tax imposed under subdivisions three, four,

five or six of this section, the tax shall be for the period therein

specified, and except that with respect to corporations required to file

a declaration of estimated tax and to make payments on account of such

estimated tax as provided by section thirty-five of this part, all

payments of tax within a calendar year, whether computed on the basis of

net income for the current calendar year or on the basis of net income

for the preceding calendar year, shall be for the calendar year in which

the payments are required to be made.

9. In the event that it shall be finally determined by a court of

competent jurisdiction that the taxes imposed on national banking

associations by subpart two of this part are unconstitutional or invalid

for the reason that they are not in conformity with the provisions of

section fifty-two hundred nineteen of the United States revised

statutes, then, in lieu of the taxes imposed by the provisions of this

subpart, every corporation that otherwise would have been subject to tax

under this subpart shall be subject to the tax imposed under part two as

of the effective date of part two, and all of the provisions of part

two, unless clearly inappropriate, shall be applicable except

subdivision four of section three; and, in such event, any payments

made, reports or returns filed or any act of the director of finance or

of a taxpayer purportedly under this part shall be treated as though

made, filed or done pursuant to part two.

10. Notwithstanding the provisions of subdivisions one and two, for

the years nineteen hundred seventy-three and those following, such city

may impose, by local law, a surtax of fifteen per centum of the

percentage of tax in effect for the year nineteen hundred seventy-two.