STATE OF NEW YORK ________________________________________________________________________ 445 2017-2018 Regular Sessions IN SENATE (Prefiled) January 4, 2017 ___________ Introduced by Sens. YOUNG, BONACIC, GALLIVAN, ORTT, RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to limited liability company fees and business corporation franchise taxes for farms and commercial horse boarding operations The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 3 of subsection (c) of section 658 of the tax 2 law, as amended by section 1 of part H-1 of chapter 57 of the laws of 3 2009, subparagraph (A) as amended by section 13 of part Q of chapter 60 4 of the laws of 2016, subparagraph (E) as added by section 13 of part S 5 of chapter 59 of the laws of 2015, is amended to read as follows: 6 (3) Filing fees. (A) Every subchapter K limited liability company, 7 every limited liability company that is a disregarded entity for federal 8 income tax purposes, and every partnership which has any income derived 9 from New York sources, determined in accordance with the applicable 10 rules of section six hundred thirty-one of this article as in the case 11 of a nonresident individual, shall on or before the fifteenth day of the 12 third month following the close of each taxable year make a payment of a 13 filing fee. Such deadline shall not apply to farms or commercial horse 14 boarding operations, which shall, within one hundred twenty days after 15 the last day of the taxable year, make payment of a filing fee. The 16 amount of the filing fee is the amount set forth in subparagraph (B) of 17 this paragraph. The minimum filing fee is twenty-five dollars for taxa- 18 ble years beginning in two thousand eight and thereafter. Limited 19 liability companies that are disregarded entities for federal income tax 20 purposes must pay a filing fee of twenty-five dollars for taxable years 21 beginning on or after January first, two thousand eight. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05890-01-7

S. 445 2 1 (B) The filing fee will be based on the New York source gross income 2 of the limited liability company or partnership for the taxable year 3 immediately preceding the taxable year for which the fee is due. If the 4 limited liability company or partnership does not have any New York 5 source gross income for the taxable year immediately preceding the taxa- 6 ble year for which the fee is due, the limited liability company or 7 partnership shall pay the minimum filing fee. Partnerships, other than 8 limited liability partnerships under article eight-B of the partnership 9 law and foreign limited liability partnerships, with less than one 10 million dollars in New York source gross income are exempt from the 11 filing fee. New York source gross income is the sum of the partners' or 12 members' shares of federal gross income from the partnership or limited 13 liability company derived from or connected with New York sources, 14 determined in accordance with the provisions of section six hundred 15 thirty-one of this article as if those provisions and any related 16 provisions expressly referred to a computation of federal gross income 17 from New York sources. For this purpose, federal gross income is 18 computed without any allowance or deduction for cost of goods sold, 19 except that for companies engaged primarily in farming or commercial 20 horse boarding, federal gross income shall be based upon net income as 21 reported for federal tax purposes. 22 The amount of the filing fee for taxable years beginning on or after 23 January first, two thousand eight will be determined in accordance with 24 the following table: 25 If the New York source gross income is: The fee is: 26 not more than $100,000 $25 27 more than $100,000 but not over $250,000 $50 28 more than $250,000 but not over $500,000 $175 29 more than $500,000 but not over $1,000,000 $500 30 more than $1,000,000 but not over $5,000,000 $1,500 31 more than $5,000,000 but not over $25,000,000 $3,000 32 Over $25,000,000 $4,500 33 (C) No credits provided by this article may be taken against the fee 34 imposed by this paragraph. 35 (D) Where the filing fee is not timely paid, it shall be paid upon 36 notice and demand and shall be assessed, collected and paid in the same 37 manner as taxes, and for those purposes any reference in this article to 38 tax imposed by this article shall be deemed also to refer to this filing 39 fee. 40 (E) Notwithstanding the provisions of subsection (e) of section six 41 hundred ninety-seven of this article, the commissioner shall provide the 42 statements and other required information included on the filing fee 43 payment form under section three hundred one of the limited liability 44 company law, subdivision (g) of section 121-1500 of the partnership law, 45 and subdivision (f) of section 121-1502 of the partnership law, to the 46 secretary of state for filing. Such provision may also include a copy or 47 image of that portion of the report solely pertinent to such information 48 to the extent feasible. The commissioner may also provide information on 49 noncompliance. 50 § 2. Clause (E) of subparagraph 1 of paragraph (d) of subdivision 1 of 51 section 210 of the tax law, as amended by section 19 of part T of chap- 52 ter 59 of the laws of 2015, is amended to read as follows: 53 (E) For purposes of this paragraph, New York receipts are the receipts 54 included in the numerator of the apportionment factor determined under

S. 445 3 1 section two hundred ten-A of this article for the taxable year, except 2 that for corporations engaged primarily in farming or commercial horse 3 boarding, the term New York receipts shall refer to net farm income as 4 reported for federal tax purposes. 5 § 3. This act shall take effect immediately and shall apply to taxable 6 years beginning on or after January 1, 2017.