N.Y. General City Model 772/66 § 61: Tax on transportation corporations and associations

§ 61. Tax on transportation corporations and associations. 1. The

term "corporation" as used in this part shall include any business

conducted by a trustee or trustees wherein interest or ownership is

evidenced by certificates or other written instruments.

2. For the privilege of doing business or of holding property in the

city every corporation, joint stock company or association formed for or

principally engaged in the conduct of aviation, steamboat, ferry (except

a ferry company operating between any of the boroughs of the city under

a lease granted by the city), or navigation business, or formed for or

principally engaged in the conduct of two or more of such businesses,

except a corporation, joint stock company or association subject to

taxation under a local law of the city imposed on utilities and vendors

of utility services, shall pay, in advance, an annual tax to be computed

upon the basis of the amount of its capital stock within the city during

the preceding year, and upon each dollar of such amount.

3. The measure of the amount of capital stock in the city, except as

hereinafter provided, shall be such a portion of the issued capital

stock as the gross assets, exclusive of obligations issued by the United

States and cash on hand and on deposit, employed in any business within

the city, bear to the gross assets, exclusive of obligations issued by

the United States and cash on hand and on deposit, wherever employed in

business. Provided, however, that in the case of a corporation taxable

hereunder only for the privilege of holding property, the measure shall

be such a portion of the issued capital stock as the gross assets,

exclusive of obligations issued by the United States and cash on hand

and on deposit, located within the city, bear to the gross assets,

exclusive of obligations issued by the United States and cash on hand

and on deposit, wherever located. The capital of a corporation invested

in the stock of another corporation shall be deemed to be assets located

where the assets of the issuing corporation, other than patents,

copyrights, trademarks, contracts and good will, are located.

4. Every corporation, joint stock company or association subject to

taxation under this section shall, in any event, pay annually a minimum

tax of not less than ten dollars nor less than one mill on each dollar

of such a portion of the net value of its issued capital stock, which

net value for the purposes of this section shall be deemed to be not

less than five dollars per share, as may be determined upon such of the

bases herein provided for the measurement thereof as is applicable. The

term "net value" as used in this section shall be construed to mean not

less than the difference between a corporation's assets and liabilities,

and not less than the average price at which such stock sold during the

year covered by the report which forms the basis for the tax. But if the

dividends paid on the par value of any kind of capital stock during any

year ending with the thirty-first day of December amount to six or more

than six per centum, the tax upon such kind of capital stock shall be at

the rate of one-quarter of a mill for each one per centum of dividends

paid and shall be computed upon the par value of such capital stock,

unless such a tax be less than the minimum tax hereinbefore provided in

this section and the director of finance shall, for such purpose, make a

fair and equitable apportionment of the assets of the corporation, joint

stock company or association, between or among the different kinds of

stock.

5. If such corporation, joint stock company or association shall have

more than one kind of capital stock, and upon one of such kinds of stock

a dividend or dividends amounting to six or more than six per centum

upon the part value thereof, has been paid, and upon the other no

dividend has been paid, or the dividend or dividends paid thereon amount

to less than six per centum upon the par value thereof, then the tax

shall be fixed upon each kind as hereinbefore provided.

6. The dividend rate for a corporation having stock without nominal or

par value shall be determined by dividing the amount paid as a dividend

or dividends during the year by the amount paid in on such stock and, if

the rate is six per centum or more, the rate of one-quarter of a mill

for each one per centum of dividends shall be applied to the amount paid

in on such stock, unless such tax be less than the minimum tax

hereinbefore in this section provided for. Any consideration given by a

corporation for the purchase of its own stock in excess of the

consideration received by it for the issuance of such stock shall for

the purposes of this section, be considered as a dividend.

7. The owning or holding in the city by any corporation of property,

other than property exclusively in interstate or foreign commerce, shall

constitute carrying on business within the city within the intent of

this section, except that a corporation having no property in the city

other than a bank balance or stocks or bonds, or one of more of such

kinds of property, either held for safe keeping or pledged as collateral

security shall not be taxable under this section, and further provided

that any corporation having only office furniture or fixtures, a bank

balance, and stocks or bonds pledged as collateral security or merely

deposited for safe keeping, shall not be taxable under this section.

8. The measure of the amount of capital stock in the city of an

aviation corporation shall be a portion of the issued capital stock

determined by applying thereto the arithmetical average of the following

three ratios: (a) the ratio which the aircraft arrivals and departures

within the city scheduled by any such corporation during the preceding

calendar year bear to the total aircraft arrivals and departures within

and without the city scheduled by it during the same period, provided

that in the case of non-scheduled operations all arrivals and departures

shall be substituted for scheduled arrivals and departures; (b) the

ratio which the revenue tons handled by such corporation at airports

within the city during the preceding calendar year bear the total

revenue tons handled by it at airports within and without the city

during the same period; and (c) the ratio which such corporation's

originating revenue within the city for the preceding calendar year

bears to its total originating revenue within and without the city for

the same period. As used in this section, the term "aircraft arrivals

and departures" means the number of scheduled landings and takeoffs of

the aircraft of an aviation corporation, and the number of scheduled air

pickups and deliveries by the aircraft of such corporation, and in the

case of non-scheduled operations shall include all landings and

takeoffs, pickups and deliveries; the term "originating revenue" means

revenue to any such corportion from the transportation of revenue

passengers and revenue property first received by such corporation

either as originating or connecting traffic at airports; and the term

"revenue tons handled" by any such corportion at an airport means the

weight in tons of revenue passengers (at two hundred pounds per

passenger) and revenue cargo first received either as originating or

connecting traffic or finally discharged by such corporation at such

airport.

9. The measure of the capital stock in the city of a corporation

engaged in the operation of vessels in foreign commerce shall be such

portion of the issued capital stock as the aggregate number of working

days in territorial waters of the city of all such vessels bears to the

aggregate number of working days of all such vessels. The dividend rate

for such a corporation shall be determined by dividing the amount paid

as a dividend or dividends on all classes of stock during the year by

the amount of paid-in capital and, if the rate is six per centum or

more, the rate of one-quarter of a mill for each one per centum of

dividends shall be applied to the amount of such paid-in capital.