N.Y. Tax Law § 186-c: Metropolitan transportation business tax surcharge on utility services and excise tax on sale of telecommunication services

§ 186-c. Metropolitan transportation business tax surcharge on utility

services and excise tax on sale of telecommunication services.

1. (a) (1) Every utility doing business in the metropolitan commuter

transportation district shall pay a tax surcharge, in addition to the

tax imposed by section one hundred eighty-six-a of this article, to be

computed at the rate of seventeen percent of the tax imposed under such

section after the deduction of credits otherwise allowable under this

article except any utility credit provided for by article thirteen-A of

this chapter; provided, however, that such rates of tax surcharge shall

be applied only to that portion of the tax imposed under section one

hundred eighty-six-a of this article after the deduction of credits

otherwise allowable under this article, except any utility credit

provided for by article thirteen-A of this chapter, which is

attributable to the taxpayer's gross income or gross operating income

from business activity carried on within the metropolitan commuter

transportation district.

(2) Provided however, that in the case of the tax imposed under

paragraph (a) of subdivision one of section one hundred eighty-six-a of

this article (relating to providers of telecommunications services) such

tax surcharge shall be calculated as if the tax imposed under section

one hundred eighty-six-a of this article were imposed at a rate of three

and one-half percent.

(b) (1) In addition to the surcharge imposed by paragraph (a) of this

subdivision, there is hereby imposed a surcharge on the gross receipts

from telecommunication services, except for the gross receipts from

mobile telecommunication services that are subject to tax under

subparagraph two of this paragraph, relating to the metropolitan

commuter transportation district at the rate of seventeen percent of the

state tax rate under section one hundred eighty-six-e of this article.

All the definitions and other provisions of section one hundred

eighty-six-e of this article shall apply to the tax imposed by this

subparagraph with such modification and limitation as may be necessary

(including substituting the words "metropolitan commuter transportation

district" for "state" where appropriate) in order to adapt the language

of such section one hundred eighty-six-e of this article to the

surcharge imposed by this subparagraph within such metropolitan commuter

transportation district so as to include (i) any intra-district

telecommunication services, (ii) any inter-district telecommunication

services which originate or terminate in such district and are charged

to a service address therein regardless of where the amounts charged for

such services are billed or ultimately paid, and (iii) as apportioned to

such district, private telecommunication services. Provided however,

such tax surcharge shall be calculated as if the tax imposed under

section one hundred eighty-six-e of this article were imposed at a rate

of three and one-half percent.

(2) In addition to the surcharge imposed by paragraph (a) of this

subdivision, there is hereby imposed a surcharge on the gross receipts

from mobile telecommunication services relating to the metropolitan

commuter transportation district at the rate of seven-tenths and

two-hundredths and one-thousandth percent on and after May first, two

thousand fifteen. All the definitions and other provisions of section

one hundred eighty-six-e of this article shall apply to the tax imposed

by this subparagraph with such modification and limitation as may be

necessary (including substituting the words "metropolitan commuter

transportation district" for "state" where appropriate) in order to

adapt the language of such section one hundred eighty-six-e of this

article to the surcharge imposed by this subparagraph within such

metropolitan commuter transportation district so as to include any

mobile telecommunications service provided by a home service provider

where the mobile telecommunications customer's place of primary use is

within such metropolitan commuter transportation district.

2. If the tax imposed under section one hundred eighty-six-a of this

article is on the taxpayer's gross income, the portion of the tax

attributable to gross income from business activity carried on within

the metropolitan commuter transportation district shall be determined by

multiplying the tax imposed under section one hundred eighty-six-a of

this article by the ratio of the taxpayer's gross income from all

sources within the metropolitan commuter transportation district to its

gross income from all sources within the entire state.

3. If the tax imposed under section one hundred eighty-six-a of this

article is on the taxpayer's gross operating income, the portion of the

tax attributable to gross operating income from business activity

carried on within the metropolitan commuter transportation district

shall be determined by multiplying the tax imposed under section one

hundred eighty-six-a of this article by the ratio of the taxpayer's

gross operating income from all sources within the metropolitan commuter

transportation district to its gross operating income from all sources

within the entire state.

4. The provisions concerning reports and returns under subdivision

four of section one hundred eighty-six-a and subdivision six of section

one hundred eighty-six-e of this article, as the case may be, shall be

applicable to this section. An extension pursuant to section one hundred

ninety-three of this article 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 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 surcharge

required to be paid under this section for the applicable period, or not

less than the tax surcharge shown on the taxpayer's report 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 report 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 report is required to be filed,

provided such tax surcharge of a domestic corporation which continues to

possess its franchise 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 report is

required to be filed, shall nevertheless be payable at such time. All of

the provisions of this article presently applicable to section one

hundred eighty-six-a and section one hundred eighty-six-e of this

article, as the case may be, are applicable to the tax surcharge imposed

by this section.

5. Notwithstanding any other provision of state or local law, the tax

surcharge imposed by this section shall not be allowed as a deduction

and shall, to the extent deductible in determining federal adjusted

gross income, be added to federal adjusted gross income, in the

computation of any tax imposed under this chapter or any other chapter

of state or local law. Furthermore, the credits otherwise allowable

under this article shall not be allowed against the tax surcharge

imposed by this section.

6. 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.