Transportation Corporation Tax

NYC Admin. Code tit. 11, ch. 6, subch. 4

in effect

NYC Admin. Code § 11-662 Tax on transportation corporations and associations.

§ 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.

NYC Admin. Code § 11-663 Additional tax on transportation corporations and associations.

§ 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.

NYC Admin. Code § 11-664 Receivers, etc., conducting corporate business.

§ 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.

NYC Admin. Code § 11-665 Service of process; limitation of time.

§ 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.

NYC Admin. Code § 11-666 Exemption of corporations owned by a municipality.

§ 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.

NYC Admin. Code § 11-667 Reports of corporations.

§ 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.

NYC Admin. Code § 11-668 Payment of tax and penalties.

§ 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.

NYC Admin. Code § 11-669 Taxable years to which taxes apply.

§ 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.

NYC Admin. Code § 11-670 First reports for payments for nineteen hundred sixty-six.

§ 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.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-11797Fetched: 10/24/2026