N.Y. General City Model Law § 12

Current through 2024 NY Law Chapters 1-59 and 61-121

Section 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.

N.Y. General City Model Law § 12