N.Y. Tax Law 1505-A – Metropolitan transportation business tax surcharge on insurance corporations
§ 1505-a. Metropolitan transportation business tax surcharge on insurance corporations.
Terms Used In N.Y. Tax Law 1505-A
- alien insurance corporation: means an insurance corporation incorporated or organized under the laws of any other foreign nation, or of any province or territory not included under the definition of "foreign insurance corporation. See N.Y. Tax Law 1500
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- domestic insurance corporation: means an insurance corporation incorporated or organized under the laws of this state. See N.Y. Tax Law 1500
- insurance corporation: includes a corporation, association, joint stock company or association, person, society, aggregation or partnership, by whatever name known, doing an insurance business, and, notwithstanding the provisions of section fifteen hundred twelve of this article, shall include (1) a risk retention group as defined in subsection (n) of § 5902 of the insurance law, (2) the state insurance fund and (3) a corporation, association, joint stock company or association, person, society, aggregation or partnership doing an insurance business as a member of the New York insurance exchange described in § 6201 of the insurance law. See N.Y. Tax Law 1500
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- taxable year: means the taxpayer's taxable year for federal income tax purposes, or the part thereof during which the taxpayer is subject to the tax under this article. See N.Y. Tax Law 1500
- taxpayer: means any insurance corporation subject to the tax imposed under section fifteen hundred one, fifteen hundred two-a, or fifteen hundred ten or any captive insurance company subject to the tax imposed under section fifteen hundred two-b of this article. See N.Y. Tax Law 1500
(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, 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, the numerator 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 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, after the deduction of any credits otherwise allowable under this article. 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 § 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 in section 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 in subdivision (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.