N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 2-3.1
Current through Register Vol. 46, No. 45, November 2, 2024
Section 2-3.1 - Cessation period (Tax Law, section 209(1))
(a) The franchise tax is imposed for all or any part of each taxable year during which a taxpayer exercises its corporate franchise, does business, employs capital, owns or leases property in a corporate or organized capacity, maintains an office, or derives receipts from activity in New York State. Accordingly, every taxpayer is required to pay a tax measured by business income (or other applicable basis) up to the date on which it ceases to possess a franchise if a domestic corporation, or ceases to do business, employ capital, own or lease property in a corporate or organized capacity, maintain an office, or derive receipts from activity in New York State if a foreign corporation, regardless of whether or not such corporation has been granted written authority by the New York State Department of State to do business in New York State.(b) A domestic corporation may cease to possess a franchise as a result of its dissolution, merger or consolidation into another corporation, or the revocation or annulment of its charter.(c) A taxpayer may cease to be subject to tax under article 9-A because of a change in the nature of its activities or a change in classification. In such event, the taxpayer must pay a tax measured by business income (or other applicable basis) up to the date of the change. In some cases, a corporation may then become subject to tax under some other article of the Tax Law.(d) A corporation that is a member of a group taxed on the basis of a combined report, and that ceases to be subject to tax under article 9-A, may, in the discretion of the commissioner, be permitted to be included in the next combined report of the group. Application for permission to report in such manner must be mailed to the commissioner. The corporation that ceases to be subject to tax under article 9-A must, at the time of such application, pay a tax of no less than the fixed dollar minimum described in section 210(1)(d).N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 2-3.1
Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023