N.Y. Tax Law § 1505-A — Metropolitan transportation business tax surcharge on insurance corporations

§ 1505-a. Metropolitan transportation business tax surcharge on\ninsurance corporations.\n (a) (1) Every domestic insurance corporation and every foreign or\nalien insurance corporation, and every life insurance corporation\ndescribed in subdivision (b) of section fifteen hundred one of this\narticle, for the privilege of exercising its corporate franchise, or of\ndoing business, or of employing capital, or of owning or leasing\nproperty in the metropolitan commuter transportation district in a\ncorporate or organized capacity, or of maintaining an office in the\nmetropolitan commuter transportation district, except corporations\nspecified in subdivision (c) of section fifteen hundred twelve of this\narticle, shall annually pay, in addition to the taxes otherwise imposed\nby this article, a tax surcharge on the taxes imposed under this article\nafter the deduction of any credits otherwise allowable under this\narticle as allocated to such district. Such taxes shall be allocated to\nsuch district for purposes of computing such tax surcharge upon\ntaxpayers subject to tax under subdivision (b) of section fifteen\nhundred ten of this article by applying the methodology, procedures and\ncomputations set forth in subdivisions (a) and (b) of section fifteen\nhundred four of this article, except that references to terms denoting\nNew York premiums, and total wages, salaries, personal service\ncompensation and commissions within New York shall be read as denoting\nwithin the metropolitan commuter transportation district and terms\ndenoting total premiums and total wages, salaries, personal service\ncompensation and commissions shall be read as denoting within the state.\nIf it shall appear to the commissioner that the application of the\nmethodology, procedures and computations set forth in such subdivisions\n(a) and (b) does not properly reflect the activity, business or income\nof a taxpayer within the metropolitan commuter transportation district,\nthen the commissioner shall be authorized, in the commissioner's\ndiscretion, to adjust such methodology, procedures and computations for\nthe purpose of allocating such taxes by:\n (A) excluding one or more factors therein;\n (B) including one or more other factors therein, such as expenses,\npurchases, receipts other than premiums, real property or tangible\npersonal property; or\n (C) any other similar or different method which allocates such taxes\nby attributing a fair and proper portion of such taxes to the\nmetropolitan commuter transportation district. The commissioner from\ntime to time shall publish all rulings of general public interest with\nrespect to any application of the provisions of the preceding sentence.\nThe commissioner may promulgate rules and regulations to further\nimplement the provisions of this section.\n (2) Such taxes shall be allocated to such district for purposes of\ncomputing such tax surcharge upon taxpayers subject to tax under section\nfifteen hundred two-a of this article pursuant to a fraction, the\ndenominator of which shall be the direct premiums subject to tax under\nsection fifteen hundred ten of this article, and the numerator of which\nshall be the direct premiums subject to tax under section fifteen\nhundred ten of this article that are written on risks located or\nresident in the metropolitan commuter transportation district, including\npremiums written, procured or received in the metropolitan commuter\ntransportation district on business that cannot be specifically assigned\nas located or resident in an area of New York state outside the\nmetropolitan commuter transportation district, or in another state or\nstates; provided, however, in the case of special risk premiums, the\nnumerator shall include only those premiums written, procured or\nreceived in the metropolitan commuter transportation district on\nproperty or risks located or resident in the metropolitan commuter\ntransportation district. If it shall appear to the commissioner that the\napplication of the methodology, procedures and computations set forth in\nthis paragraph does not properly reflect the activity, business or\nincome of a taxpayer within the metropolitan commuter transportation\ndistrict, then the commissioner shall be authorized, in the\ncommissioner's discretion, to adjust such methodology, procedures and\ncomputations for the purpose of allocating such taxes by: (A) excluding\nthe factor therein and including one or more other factors such as\nexpenses, purchases, receipts other than premiums, real property or\ntangible personal property; or (B) any other similar or different method\nwhich allocates such taxes by attributing a fair and proper portion of\nsuch taxes to the metropolitan commuter transportation district. The\ncommissioner from time to time shall publish all rulings of general\npublic interest with respect to any application of the provisions of the\npreceding sentence. The commissioner may promulgate rules and\nregulations to further implement the provisions of this section.\n (3) Such tax surcharge shall be computed at the rate of seventeen\npercent of the taxes imposed under sections fifteen hundred one, fifteen\nhundred two-a, and fifteen hundred ten of this article, as limited or\notherwise determined by subdivision (a) or (b) of section fifteen\nhundred five of this article, as allocated to such district, after the\ndeduction of any credits otherwise allowable under this article.\nProvided however, that for taxable years commencing on or after July\nfirst, two thousand, and in the case of taxpayers subject to tax under\nsection fifteen hundred two-a of this article, for taxable years of such\ntaxpayers beginning on or after July first, two thousand and before\nJanuary first, two thousand three, such surcharge shall be calculated as\nif (i) the rate of the tax computed under paragraph one of subdivision\n(a) of section fifteen hundred two of this article was nine percent and\n(ii) the rate of the limitation on tax set forth in section fifteen\nhundred five of this article for domestic, foreign and alien insurance\ncorporations except life insurance corporations was two and six-tenths\npercent.\n (b) The term metropolitan commuter transportation district as used in\nthis section shall be defined pursuant to section twelve hundred\nsixty-two of the public authorities law.\n (c) Notwithstanding any contrary provisions of state or local law, the\ntax surcharge imposed under this section shall not be allowed as a\ndeduction in the computation of any state or local tax imposed under\nthis chapter or any chapter or local law. The credits set forth in\nsection fifteen hundred eleven of this article shall not be allowed\nagainst the tax surcharge imposed by this section.\n (d) (1) If, by the laws of any state other than this state, or by the\naction of any public official of such other state, any insurer organized\nor domiciled in this state, or the duly authorized agents thereof,\nsubject to the business tax surcharge imposed by this section shall be\nrequired to pay taxes for the privilege of doing business in such other\nstate which taxes are imposed or assessed because of the taxes imposed\nor assessed under this section, in computing the tax imposed by this\nsection a credit shall be allowed for taxes paid to other states, which\ncredit shall be determined pursuant to the provisions of this section;\nprovided, however, the credit allowed any insurer under this subdivision\nshall in no event be greater than the tax surcharge payable by such\ninsurer pursuant to this section for the taxable year with respect to\nwhich such amount has been imposed or assessed by such other states.\n (2) In addition to any other requirements of this article, an insurer\nclaiming a credit under this subdivision shall attach to the returns\nrequired pursuant to this section and section fifteen hundred fifteen of\nthis article a computation identifying the credit attributable to taxes\npaid to other states because of the tax surcharge imposed by this\nsection, which credit shall be further broken down to reflect amounts\nand taxable years to which the retaliatory taxes giving rise to the\ncredit relate. The credit attributable to taxes paid to other states\nbecause of the tax surcharge imposed by this section shall be the\ndifference between: (i) the credit which would be claimed by the insurer\npursuant to subdivision (c) of section fifteen hundred eleven of this\nchapter if the tax surcharge imposed by this section were permitted in\nthe computation of such credit, and (ii) the credit which is claimed by\nsuch insurer pursuant to such subdivision (c).\n (3) To the extent not inconsistent with the provisions of this\nsubdivision, the provisions of paragraphs four and five of subdivision\n(c) of section fifteen hundred eleven of this chapter shall apply with\nrespect to the credit allowed under this subdivision.\n (4) No credit against taxes paid to other jurisdictions under\nsubdivision (c) of section fifteen hundred eleven of this article shall\nbe allowed for any taxes paid under this section by any domestic\ninsurance corporation, including life insurance corporations subject to\ntax under this section.\n (e) The provisions concerning returns under section fifteen hundred\nfifteen of this article shall be applicable to this section, except that\nfor purposes of an automatic extension for six months for filing a\nreturn covering the tax surcharges imposed by this section, such\nautomatic extension shall be allowed only if a taxpayer files with the\ncommissioner an application for extension in such form and manner as\nsaid commissioner may prescribe by regulation and such taxpayer pays on\nor before the date of such filing in addition to any other amounts\nrequired under this article, either ninety percent of the entire tax\nrequired to be paid under this section for the applicable period, or not\nless than the tax surcharge shown on the taxpayer's return for the\npreceding taxable year, if such preceding taxable year was a taxable\nyear of twelve months. The tax surcharge imposed by this section shall\nbe payable to the commissioner in full at the time the return is\nrequired to be filed, and such tax surcharge or the balance thereof,\nimposed on any taxpayer which ceases to exercise its franchise or be\nsubject to the tax surcharge imposed by this section shall be payable to\nthe commissioner at the time the return is required to be filed,\nprovided such tax surcharge of such domestic, foreign or alien insurance\ncorporation including life insurance corporations, as described in\nsubdivision (b) of section fifteen hundred one of this article, shall be\nsubject to adjustment as the circumstances may require; all other tax\nsurcharges of any such taxpayer, which pursuant to the foregoing\nprovisions of this section would otherwise be payable subsequent to the\ntime such return is required to be filed, shall nevertheless be payable\nat such time. All of the provisions of this article presently applicable\nare applicable to the tax surcharge imposed by this section.\n