New York S 5431: Relates to franchise tax on banking corporations

Bill Text

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S05431 Summary:

BILL NOS05431 

&nbsp

SAME ASSAME AS A07636

&nbsp

SPONSORSKOUFIS

&nbsp

COSPNSRMAY, SANDERS

&nbsp

MLTSPNSR

&nbsp

Add Art 32 §§1450 - 1468, Tax L

&nbsp

Reinstates a bank tax based on the highest of four bases: a tax on allocated entire net income, a tax on allocated alternative entire net income, a tax on allocated taxable assets, or a fixed dollar minimum tax; prohibits banks from segregating their income and capital into business and investment varieties.

Go to top S05431 Actions:

BILL NOS05431 

&nbsp

02/21/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS05431 Committee&nbspVotes:

Go to topS05431 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05431 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5431

 2025-2026 Regular Sessions

 IN SENATE

 February 21, 2025
 ___________

 Introduced by Sens. SKOUFIS, MAY, SANDERS -- read twice and ordered
 printed, and when printed to be committed to the Committee on Budget
 and Revenue

 AN ACT to amend the tax law, in relation to franchise tax on banking
 corporations

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The tax law is amended by adding a new article 32 to read
 2 as follows:
 3 ARTICLE 32
 4 FRANCHISE TAX ON BANKING CORPORATIONS
 5 Section 1450. General definitions.
 6 1451. Imposition of tax.
 7 1452. Banking corporation defined; exempt corporations.
 8 1453. Computations of entire net income.
 9 1453-A. Computation of alternative entire net income.
 10 1454. Allocation.
 11 1455. Computation of tax.
 12 1455-A. Tax surcharge.
 13 1455-B. Temporary metropolitan transportation business tax
 14 surcharge on banks.
 15 1456. Credits.
 16 1460. Declarations of estimated tax.
 17 1461. Payments of estimated tax.
 18 1462. Returns.
 19 1463. Payment of tax.
 20 1466. Deposit and disposition of revenue.
 21 1467. Secrecy required of officials; penalty for violation.
 22 1468. Procedural provisions.
 23 § 1450. General definitions. As used in this article:

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08765-01-5

 S. 5431 2

 1 (a) The word "taxpayer" means a corporation or association subject to
 2 a tax imposed by this article.
 3 (b) The phrase "taxable year" means the taxpayer's taxable year for
 4 federal income tax purposes, or the part thereof during which the
 5 taxpayer is subject to the tax imposed by this article.
 6 (c) The term "international banking facility" shall mean an interna-
 7 tional banking facility located in New York state and shall have the
 8 same meaning as is set forth in the New York state banking law or regu-
 9 lations of the New York state department of financial services or as is
 10 set forth in the laws of the United States or regulations of the board
 11 of governors of the federal reserve system.
 12 (d) The term "subsidiary" means a corporation or association of which
 13 over fifty percent of the number of shares of stock entitling the hold-
 14 ers thereof to vote for the election of directors or trustees is owned
 15 by the taxpayer.
 16 (e) The term "subsidiary capital" means investments in the stock of
 17 subsidiaries and any indebtedness from subsidiaries, exclusive of
 18 accounts receivable acquired in the ordinary course of trade or business
 19 for services rendered or for sales of property held primarily for sale
 20 to customers, whether or not evidenced by written instrument, on which
 21 interest is not claimed and deducted by the subsidiary for purposes of
 22 taxation under this article, article nine-A or thirty-three of this
 23 chapter, provided, however, there shall be deducted from subsidiary
 24 capital any liabilities payable by their terms on demand or within one
 25 year from the date incurred, other than loans or advances outstanding
 26 for more than a year as of any date during the year covered by the
 27 return, which are attributable to subsidiary capital.
 28 (f) The terms "New York S corporation", "New York S year", "New York S
 29 election", "New York C corporation", "New York C year", "termination
 30 year", "S short year", "C short year", an