Section 11-662
§ 11-662 Tax on transportation corporations and associations. 1. The
term "corporation" as used in this subchapter shall include any business
conducted by a trustee or trustees wherein interest or ownership is
evidenced by certificates or other written instruments.
2. For the privilege of doing business or holding property in the city
every corporation, joint-stock company or association formed for or
principally engaged in the conduct of aviation, steamboat, ferry (except
a ferry company operating between any of the boroughs of the city under
a lease granted by the city), or navigation business, or formed for or
principally engaged in the conduct of two or more of such businesses,
except a corporation, joint-stock company or association subject to
taxation under subchapter two of chapter eleven of this title, shall
pay, in advance, an annual tax to be computed upon the basis of the
amount of its capital stock within the city during the preceding year,
and upon each dollar of such amount.
3. The measure of the amount of capital stock in the city, except as
hereinafter provided, shall be such a portion of the issued capital
stock as the gross assets, exclusive of obligations issued by the United
States and cash on hand and on deposit, employed in any business within
the city, bear to the gross assets, exclusive of obligations issued by
the United States and cash on hand and on deposit, wherever employed in
business. Provided, however, that in the case of a corporation taxable
hereunder only for the privilege of holding property, the measure shall
be such a portion of the issued capital stock as the gross assets,
exclusive of obligations issued by the United States and cash on hand
and on deposit, located within the city, bear to the gross assets,
exclusive of obligations issued by the United States and cash on hand
and on deposit, wherever located. The capital of a corporation invested
in the stock of another corporation shall be deemed to be assets located
where the assets of the issuing corporation, other than patents,
copyrights, trademarks, contracts and good will, are located.
4. Every corporation, joint-stock company or association subject to
taxation under this section shall, in any event, pay annually, for
taxable years ending on or before December thirty-first, nineteen
hundred seventy-four, a minimum tax of not less than ten dollars nor
less than one mill, and for taxable years beginning on or after January
first, nineteen hundred seventy-five, a minimum tax of not less than
fifteen dollars nor less than one and one-half mills, on each dollar of
such a portion of the net value of its issued capital stock, which net
value for the purposes of this section shall be deemed to be not less
than five dollars per share, as may be determined upon such of the bases
herein provided for the measurement thereof as is applicable. The term
"net value" as used in this section shall be construed to mean not less
than the difference between a corporation's assets and liabilities, and
not less than the average price at which such stock sold during the year
covered by the report which forms the basis for the tax. But if the
dividends paid on the par value of any kind of capital stock during any
year ending with the thirty-first day of December amounts to six or more
than six per centum, the tax upon such kind of capital stock shall be at
the rate of one-quarter of a mill for taxable years ending on or before
December thirty-first, nineteen hundred seventy-four, and at the rate of
four-tenths of a mill for taxable years beginning on or after January
first, nineteen hundred seventy-five for each one per centum of
dividends paid and shall be computed upon the par value of such capital
stock, unless such a tax be less than the minimum tax hereinbefore
provided in this section and the commissioner of finance shall, for such
purpose, make a fair and equitable apportionment of the assets of the
the corporation, joint-stock company or association, between or among
the different kinds of stock.
5. If such corporation, joint-stock company or association shall have
more than one kind of capital stock, and upon one of such kinds of stock
a dividend or dividends amounting to six or more than six per centum
upon the par value thereof, has been paid, and upon the other no
dividend has been paid, or the dividend or dividends paid thereon amount
to less than six per centum upon the par value thereof, then the tax
shall be fixed upon each kind as hereinbefore provided.
6. The dividend rate for a corporation having stock without nominal or
par value shall be determined by dividing the amount paid as a dividend
or dividends during the year by the amount paid in on such stock and, if
the rate is six per centum or more, then for taxable years ending on or
before December thirty-first, nineteen hundred seventy-four, the rate of
one-quarter of a mill for each one per centum of dividends shall be
applied to the amount paid in on such stock, and for taxable years
beginning on or after January first, nineteen hundred seventy-five, the
rate of four-tenths of a mill for each one per centum of dividends shall
be applied to the amount paid in on such stock, unless such tax be less
than the minimum tax hereinbefore in this section provided for. Any
consideration given by a corporation for the purchase of its own stock
in excess of the consideration received by it for the issuance of such
stock shall for the purposes of this section, be considered as a
dividend.
7. The owning or holding in the city by any corporation of property,
other than property exclusively in interstate or foreign commerce, shall
constitute carrying on business within the city within the intent of
this section, except that a corporation having no property in the city
other than a bank balance or stocks or bonds, or one or more of such
kinds of property, either held for safe keeping or pledged as collateral
security shall not be taxable under this section, and further provided
that any corporation having only office furniture or fixtures, a bank
balance, and stocks or bonds pledged as collateral security or merely
deposited for safe keeping, shall not be taxable under this section.
8. The measure of the amount of capital stock in the city of an
aviation corporation shall be a portion of the issued capital stock
determined by applying thereto the arithmetical average of the following
three ratios: (a) the ratio which the aircraft arrivals and departures
within the city scheduled by any such corporation during the preceding
calendar year bear to the total aircraft arrivals and departures within
and without the city scheduled by it during the same period, provided
that in the case of non-scheduled operations all arrivals and departures
shall be substituted for scheduled arrivals and departures; (b) the
ratio which the revenue tons handled by such corporation at airports
within the city during the preceding calendar year bear to the total
revenue tons handled by it at airports within and without the city
during the same period; and (c) the ratio which such corporation's
originating revenue within the city for the preceding calendar years
bears to its total originating revenue within and without the city for
the same period. As used in this section, the term "aircraft arrivals
and departures" means the number of scheduled landings and takeoffs of
the aircraft of an aviation corporation, and the number of scheduled air
pickups and deliveries by the aircraft of such corporation, and in the
case of non-scheduled operations shall include all landings and
takeoffs, pickups and deliveries; the term "originating revenue" means
revenue to any such corporation from the transportation of revenue
passengers and revenue property first received by such corporation
either as originating or connecting traffic at airports; and the term
"revenue tons handled" by any such corporation at an airport means the
weight in tons of revenue passengers (at two hundred pounds per
passenger) and revenue cargo first received either as originating or
connecting traffic or finally discharged by such corporation at such
airport.
9. The measure of the capital stock in the city of a corporation
engaged in the operation of vessels in foreign commerce shall be such
portion of the issued capital stock as the aggregate number of working
days in territorial waters of the city of all such vessels bears to the
aggregate number of working days of all such vessels. The dividend rate
for such a corporation shall be determined by dividing the amount paid
as a dividend or dividends on all classes of stock during the year by
the amount of paid-in capital and, if the rate is six per centum or
more, then for taxable years ending on or before December thirty-first,
nineteen hundred seventy-four, the rate of one-quarter of a mill for
each one per centum of dividends shall be applied to the amount of such
paid-in capital, and for taxable years beginning on or after January
first, nineteen hundred seventy-five, the rate of four-tenths of a mill
for each one per centum of dividends shall be applied to the amount of
such paid-in capital.
Section 11-663
§ 11-663 Additional tax on transportation corporations and
associations. Every corporation, joint-stock company or association
formed for or principally engaged in the conduct of aviation, steamboat,
ferry (except a ferry company operating between any of the boroughs of
the city under a lease granted by the city), or navigation business or
formed for or principally engaged in the conduct of two or more of such
businesses, except a corporation, joint-stock company or association
subject to taxation under subchapter two of chapter eleven of this
title, shall pay for the privilege of carrying on its business in the
city, a tax which shall be equal to five-tenths of one per centum for
taxable years ending on or before December thirty-first, nineteen
hundred seventy-four, and seventy-five hundredths of one per centum for
taxable years beginning on or after January first, nineteen hundred
seventy-five upon its gross earnings from all sources within the city,
excluding earnings derived from business of a character other than
wholly intra-city. Provided, however, gross earnings from transportation
business both originating and terminating within the city and traversing
both the city and any other city, any state or states or any country
shall be subject to the tax imposed by this section and such earnings
shall be allocated to the city in the same ratio that the mileage within
the city bears to the total mileage of such business.
Section 11-664
§ 11-664 Receivers, etc., conducting corporate business. Any receiver,
liquidator, referee, trustee, assignee, or other fiduciary or officer or
agent appointed by any court, who conducts the business of any
corporation, joint-stock company or association shall be subject to the
tax or taxes imposed by this subchapter in the same manner and to the
same extent as if the business were conducted by the agents or officers
of such corporation, joint-stock company or association. A dissolved
corporation, joint-stock company or association which continues to
conduct business shall also be subjected to the tax imposed by this
subchapter.
Section 11-665
§ 11-665 Service of process; limitation of time. 1. Every foreign
corporation (other than a moneyed corporation) subject to the provisions
of this subchapter, except a corporation having authority to do business
by virtue of section thirteen hundred five of the business corporation
law, shall file in the department of state a certificate of designation
in its corporate name, signed and acknowledged by its president or
vice-president or its secretary or treasurer, under its corporate seal,
designating the secretary of state as its agent upon whom process in any
action provided for by this subchapter or subchapter five of this
chapter may be served within this state, and setting forth an address to
which the secretary of state shall mail a copy of any such process
against the corporation which may be served upon the secretary of state.
In case any such corporation shall have failed to file such certificate
of designation, it shall be deemed to have designated the secretary of
state as its agent upon whom such process against it may be served; and
until a certificate of designation shall have been filed the corporation
shall be deemed to have directed the secretary of state to mail copies
of process served upon the secretary of state to the corporation at its
last known office address within or without the state. When a
certificate of designation has been filed by such corporation the
secretary of state shall mail copies of process thereafter served upon
the secretary of state to the address set forth in such certificate. Any
such corporation, from time to time, may change the address to which the
secretary of state is directed to mail copies of process, by filing a
certificate to that effect executed, signed and acknowledged in like
manner as a certificate of designation as herein provided. Service of
process upon any such corporation or upon any corporation having
authority to do business by virtue of section thirteen hundred five of
the business corporation law, in any action commenced at any time
pursuant to the provisions of this subchapter five or subchapter six of
this chapter may be made by either: (1) personally delivering to and
leaving with the secretary of state, a deputy secretary of state or with
any person authorized by the secretary of state to receive such service
duplicate copies thereof at the office of the department of state in the
city of Albany, in which event the secretary of state shall forthwith
send by registered mail, return receipt requested, one of such copies to
the corporation at the address designated by it or at its last known
office address within or without the state, or (2) personally delivering
to and leaving with the secretary of state, a deputy secretary of state
or with any person authorized by the secretary of state to receive such
service, a copy thereof at the office of the department of state in the
city of Albany and by delivering a copy hereof to, and leaving such copy
with, the president, vice-president, secretary, assistant secretary,
treasurer, assistant treasurer, or cashier of such corporation, or the
officer performing corresponding functions under another name, or a
director or managing agent of such corporation, personally without the
state. Proof of such personal service without the state shall be filed
with the clerk of the court in which the action is pending within thirty
days after such service, and such service shall be complete ten days
after proof thereof is filed.
2. The provisions of the civil practice law and rules relative to the
limitation of time of enforcing a civil remedy shall not apply to any
proceeding or action taken to levy, appraise, assess, determine or
enforce the collection of any tax or penalty prescribed by this
subchapter or subchapter five of this chapter, provided, however, that
as to real estate in the hands of persons who are owners thereof who
would be purchasers in good faith but for such tax or penalty and as to
the lien on real estate of mortgages held by persons who would be
holders thereof in good faith but for such tax or penalty, all such
taxes and penalties shall cease to be a lien on such real estate as
against such purchasers or holders after the expiration of ten years
from the date such taxes become due and payable. The limitations herein
provided for shall not apply to any transfer from a corporation to a
person or corporation with intent to avoid payment of any taxes, or
where with like intent the transfer is made to a grantee corporation, or
any subsequent grantee corporation controlled by such grantor or which
has any community of interest with it, either through stock ownership or
otherwise.
Section 11-666
§ 11-666 Exemption of corporations owned by a municipality. The
provisions of this subchapter shall not apply to any corporation all of
the capital stock of which is owned by a municipal corporation of this
state.
Section 11-667
§ 11-667 Reports of corporations. Corporations liable to pay a tax
under this subchapter shall report as follows:
1. Every corporation, association or joint-stock company liable to pay
a tax under section 11-662 of this subchapter shall, on or before March
first in each year, make a written report to the commissioner of finance
of its condition at the close of its business on the preceding December
thirty-first, stating the amount of its authorized capital stock, the
amount of stock paid-in, the date and rate per centum of each dividend
paid by it during the year ending with such day, the entire amount of
the capital of such corporation, and the capital employed by it in the
city during such year.
2. Every corporation, joint-stock company or association liable to pay
an additional tax under section 11-663 of this subchapter shall also, on
or before February fifteenth, May fifteenth, August fifteenth and
November fifteenth in each year, make a written report to the
commissioner of finance of the amount of its gross earnings subject to
the tax imposed by said section for the quarter year ended on the last
day of the second month preceding that in which the report is required
to be filed. Any such corporation, joint-stock company or association
which ceases to be subject to the tax imposed by section 11-663 of this
subchapter by reason of a liquidation, dissolution, merger or
consolidation with any other corporation, or any other cause, shall, on
the date of such cessation or at such other time as the commissioner of
finance may require, make a written report to the commissioner of
finance of the amount of its gross earnings subject to the tax imposed
by section 11-663 of this subchapter for any period for which no report
was therefor filed.
3. The commissioner of finance may for good cause shown extend the
time within which any corporation is required to report by this
subchapter.
4. Every report required by this subchapter shall have annexed thereto
a certification by the president, vice-president, treasurer, assistant
treasurer, or chief accounting officer or any other officer of the
corporation, association or joint-stock company duly authorized so to
act, or of the person or one of the persons, or the members of the
partnership making the same, to the effect that the statements contained
therein are true. The fact that an individual's name is signed on a
certification attached to a corporate report shall be prima facie
evidence that such individual is authorized to certify the report on
behalf of the corporation. Such reports shall contain any other data
information or matter which the commissioner of finance may require to
be included therein, and it may prescribe the form in which such reports
shall be made. When so prescribed such forms shall be used in making the
report. The commissioner of finance may require at any time a further or
supplemental report under this subchapter which shall contain
information and data upon such matters as the commissioner of finance
may specify. Reports shall be preserved for five years, and thereafter
until the commissioner of finance orders them to be destroyed.
Section 11-668
§ 11-668 Payment of tax and penalties. 1. The taxes imposed by
sections 11-662 and 11-663 of this subchapter shall be due and payable
at the time of the filing of the report required by section 11-667 of
this subchapter or, in case such a report is not filed when due, on the
last day specified for the filing thereof, except that the tax upon
dividends imposed by section 11-663 of this subchapter shall be due and
payable at the time of filing the report for the period ending June
thirtieth, or, in case such report is not filed when due, on the last
day specified for the filing thereof.
2. Where an application for consent to dissolution, as provided by
section one thousand four of the business corporation law, is filed with
the commissioner of finance prior to the commencement of any tax year or
period by a corporation subject to tax under this subchapter, such
corporation shall not be liable for any tax imposed by this subchapter
for such following year or period (except as may be otherwise provided
in section 11-664 of this subchapter), provided that the certificate of
dissolution for such corporation is duly filed in the office of the
secretary of state within twenty days after the filing of such
application.
3. Notwithstanding any other provision of this subchapter, the
commissioner of finance may grant a reasonable extension of time for
payment of any tax imposed by this subchapter under such conditions as
the commissioner deems just and proper.
Section 11-669
§ 11-669 Taxable years to which taxes apply. The taxes imposed by this
subchapter are imposed for each taxable year or period beginning with
taxable years or periods ending in or with the calendar year nineteen
hundred sixty-six. Notwithstanding the foregoing, no tax shall be
imposed pursuant to this subchapter for any taxable year or period
ending after December thirty-first, nineteen hundred eighty-eight.
Section 11-670
§ 11-670 First reports for payments for nineteen hundred sixty-six. If
any report under this subchapter is due prior to September eleventh,
nineteen hundred sixty-six, such report and the payments therewith shall
be filed and paid by such date.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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