Section 11-603. Imposition of tax; exemptions

1. For the privilege of doing
  business, or of employing capital, or of owning or leasing  property  in
  the  city  in  a  corporate  or organized capacity, or of maintaining an
  office in the city, for all or  any  part  of  each  of  its  fiscal  or
  calendar   years,   every   domestic   or  foreign  corporation,  except
  corporations specified  in  subdivision  four  of  this  section,  shall
  annually  pay  a  tax,  upon the basis of its entire net income, or upon
  such other basis as may be applicable as hereinafter provided, for  such
  fiscal  or  calendar  year  or  part thereof, on a report which shall be
  filed, except as hereinafter provided, on or before the fifteenth day of
  March next succeeding the close of each such year, or, in the case of  a
  taxpayer  which  reports  on  the basis of a fiscal year, within two and
  one-half months after the close of such fiscal year, and shall  be  paid
  as hereinafter provided.
    2.  A  corporation shall not be deemed to be doing business, employing
  capital, owning or leasing property, or maintaining  an  office  in  the
  city,  for  the  purposes  of  this  subchapter,  by  reason  of (a) the
  maintenance of cash balances with banks or trust companies in the  city,
  or  (b) the ownership of shares of stock or securities kept in the city,
  if kept in a safe deposit box, safe, vault or  other  receptacle  rented
  for  the  purpose, or if pledged as collateral security, or if deposited
  with one or more banks or trust companies, or brokers who are members of
  a recognized security exchange, in safekeeping or custody  accounts,  or
  (c)  the  taking  of  any  action  by  any such bank or trust company or
  broker, which is incidental to the rendering of safekeeping or custodian
  service to such corporation, or (d) the maintenance of an office in  the
  city by one or more officers or directors of the corporation who are not
  employees  of  the corporation if the corporation otherwise is not doing
  business in the city, and does  not  employ  capital  or  own  or  lease
  property  in  the  city,  or  (e)  the  keeping of books or records of a
  corporation in the city if  such  books  or  records  are  not  kept  by
  employees of such corporation and such corporation does not otherwise do
  business, employ capital, own or lease property or maintain an office in
  the city, or (f) any combination of the foregoing activities.
    2-a.  An  alien  corporation shall not be deemed to be doing business,
  employing capital, owning or leasing property, or maintaining an  office
  in  the  city, for the purposes of this subchapter, if its activities in
  the city are limited solely to (a) investing or trading  in  stocks  and
  securities  for  its  own  account  within the meaning of clause (ii) of
  subparagraph (A) of paragraph (2) of subsection  (b)  of  section  eight
  hundred  sixty-four  of  the  internal  revenue code or (b) investing or
  trading in commodities for its own account within the meaning of  clause
  (ii)  of  subparagraph (B) of paragraph (2) of subsection (b) of section
  eight hundred sixty-four  of  the  internal  revenue  code  or  (c)  any
  combination  of  activities  described in paragraphs (a) and (b) of this
  subdivision. For purposes of this subdivision, an alien corporation is a
  corporation organized under the laws of  a  country,  or  any  political
  subdivision thereof, other than the United States.
    3. Any receiver, referee, trustee, assignee or other fiduciary, or any
  officer  or  agent  appointed by any court, who conducts the business of
  any corporation, shall be subject to the tax 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.  A  dissolved
  corporation which continues to conduct business shall also be subject to
  the tax imposed by this subchapter.
    4.  (a)  Corporations  subject  to  tax under subchapter three of this
  chapter or under  chapter  eleven  of  this  title,  any  trust  company
  organized  under  a law of this state all of the stock of which is owned

  by not less than twenty savings banks organized  under  a  law  of  this
  state,  bank  holding  companies  filing a combined return in accordance
  with subdivision (f) of section 11-646 of this chapter, a  captive  REIT
  or  a  captive  RIC  filing  a  combined return under subdivision (f) of
  section  11-646  of  this  chapter,  housing  companies  organized   and
  operating  pursuant  to  the  provisions  of  article two of the private
  housing  finance  law,  housing  development  fund  companies  organized
  pursuant  to  the  provisions  of  article eleven of the private housing
  finance law, corporations described in section three of the tax  law,  a
  corporation principally engaged in the operation of marine vessels whose
  activities in the city are limited exclusively to the use of property in
  interstate  or  foreign  commerce, provided, however, such a corporation
  will not be subject to tax  under  this  subchapter  solely  because  it
  maintains  an  office  in  the  city, or employs capital in the city, in
  connection with such use of property, a corporation principally  engaged
  in  the  conduct  of  a  ferry business and operating between any of the
  boroughs of the city under a lease granted by the city and a corporation
  principally engaged in the conduct of an aviation, steamboat,  ferry  or
  navigation  business,  or  two  or  more  of such businesses, all of the
  capital stock of which is owned  by  a  municipal  corporation  of  this
  state,  shall  not  be  subject  to tax under this subchapter; provided,
  however, that any corporation, other  than  (1)  a  utility  corporation
  subject  to  the  supervision of the state department of public service,
  and (2) for taxable years  beginning  on  or  after  August  first,  two
  thousand two, a utility as defined in subdivision six of section 11-1101
  of  this  title,  which  is  subject to tax under chapter eleven of this
  title as a vendor of utility services shall be subject to tax under this
  subchapter, but in computing the tax imposed by this section pursuant to
  the provisions of clause one of  subparagraph  (a)  of  paragraph  A  of
  subdivision one of section 11-604, business income allocated to the city
  pursuant  to paragraph (a) of subdivision three of such section shall be
  reduced by the  percentage  which  such  corporation's  gross  operating
  income subject to tax under chapter eleven of this title is of its gross
  operating income.
    (b)  The  term "gross operating income", when used in paragraph (a) of
  this subdivision, means  receipts  received  in  or  by  reason  of  any
  transaction had and consummated in the city, including cash, credits and
  property  of any kind or nature (whether or not such transaction is made
  for profit), without any deduction therefrom on account of the  cost  of
  the  property sold, the cost of materials used, labor or other services,
  delivery costs or any other costs whatsoever, interest or discount  paid
  or any other expenses whatsoever.
    (c)  If  it  shall  appear  to  the  commissioner  of finance that the
  application of the proviso of paragraph (a) of  this  subdivision,  does
  not  fairly and equitably reflect the portion of the taxpayer's business
  income  allocable  to  the  city  which  is  attributable  to  its  city
  activities  which are not taxable under subchapter two of chapter eleven
  of this title, the commissioner may prescribe other means or methods  of
  determining  such portion, including the use of the books and records of
  the taxpayer, if the commissioner finds that such means or methods  used
  in keeping them fairly and equitably reflect such portion.
    5.  The  tax  imposed  by  subdivision  one  of this section, with the
  modifications provided by subdivision six of this  section,  is  imposed
  for each calendar or fiscal year beginning with calendar or fiscal years
  ending in or with the calendar year nineteen hundred sixty-six.
    6.  (a)  The  tax  for  any  taxable  year  ending  prior  to December
  thirty-first, nineteen hundred sixty-six shall be an amount equal to the
  tax imposed by subdivision one of this section for  such  taxable  year,

  multiplied  by  the number of months (or major portions thereof) in such
  taxable year which occur after December thirty-first,  nineteen  hundred
  sixty-five  and  divided  by  the  number  of  months (or major portions
  thereof) in such taxable year.
    (b)  In  lieu  of  the  method  of  computation  of  tax prescribed in
  paragraph (a) of this subdivision, if the taxpayer  maintained  adequate
  records  for  the  portion  of any taxable year ending prior to December
  thirty-first, nineteen hundred sixty-six, which portion falls within the
  calendar year nineteen hundred sixty-six, it may elect  to  compute  the
  tax  for such taxable year by determining entire net income on the basis
  of the entire taxable income which it would have  reported  for  federal
  income  tax  purposes  had  it  filed  a federal income tax return for a
  taxable year beginning January first,  nineteen  hundred  sixty-six  and
  ending  with  the close of its actual taxable year and such taxable year
  beginning January first, nineteen hundred sixty-six, shall be deemed  to
  be  the  period covered by its report, except that in computing such tax
  any portion of  a  capital  loss  which  results  from  a  capital  loss
  carryover  and any net operating loss deduction, as modified pursuant to
  paragraph (f) of subdivision eight of section 11-602 of this subchapter,
  shall be reduced by the same part of such portion of such  capital  loss
  or  of  such  net  operating  loss deduction (as the case may be) as the
  number of months  (or  major  portions  thereof)  in  the  taxable  year
  occurring  before  January  first,  nineteen hundred sixty-six is of the
  number of months (or major portions thereof) in such taxable year.
    7. For any taxable year of a real estate investment trust  as  defined
  in section eight hundred fifty-six of the internal revenue code in which
  such  trust  is  subject  to federal income taxation under section eight
  hundred fifty-seven of such code, such trust shall be subject to  a  tax
  computed  under  either clause one of subparagraph (a) of paragraph A of
  subdivision one of section 11-604 of this subchapter with respect to its
  entire net income, or clause four, whichever is greater, and  shall  not
  be subject to any tax under subchapter three of this chapter, except for
  a  captive REIT required to file a combined return under subdivision (f)
  of section 11-646 of this chapter. In the case of  such  a  real  estate
  investment  trust, including a captive REIT as defined in section 11-601
  of this chapter,  the  term  "entire  net  income"  means  "real  estate
  investment  trust  taxable  income"  as  defined  in  paragraph  two  of
  subdivision (b) of section eight hundred  fifty-seven  (as  modified  by
  section eight hundred fifty-eight) of the internal revenue code plus the
  amount taxable under paragraph three of subdivision (b) of section eight
  hundred  fifty-seven  of such code, subject to the modification required
  by subdivision eight of section 11-602 of this  subchapter  (other  than
  the  modification  required  by  clause  two  of  paragraph  (a)  and by
  paragraph  (f)  thereof)  including  the   modifications   required   by
  paragraphs  (d)  and  (e) of subdivision three of section 11-604 of this
  subchapter.
    8. For any taxable year beginning on or after January first,  nineteen
  hundred  eighty-one  of  a  regulated  investment company, as defined in
  section eight hundred fifty-one of the internal revenue code,  in  which
  such  company  is subject to federal income taxation under section eight
  hundred fifty-two of such code, such company shall be subject to  a  tax
  computed  under clause one or four of subparagraph (a) of paragraph E of
  subdivision one of section  11-604  of  this  subchapter,  whichever  is
  greater,  and  such  company  shall  not  be  subject  to  any tax under
  subchapter three of this chapter, except for a captive RIC  required  to
  file  a  combined return under subdivision (f) of section 11-646 of this
  chapter. In the case of such a regulated investment company, including a
  captive RIC as defined in section  11-601  of  this  chapter,  the  term

  "entire  net  income"  used  in  subdivision  one  of this section means
  "investment company taxable income"  as  defined  in  paragraph  two  of
  subdivision  (b)  of  section  eight  hundred  fifty-two, as modified by
  section  eight hundred fifty-five, of the internal revenue code plus the
  amount taxable under paragraph three of subdivision (b) of section eight
  hundred fifty-two of such code subject to the modifications required  by
  subdivision  eight  of section 11-602 of this subchapter, other than the
  modification required by clause two of paragraph (a)  and  by  paragraph
  (f)  thereof,  including the modification required by paragraphs (d) and
  (e) of subdivision three of section 11-604 of this subchapter.
    9. For any taxable year beginning on or after January first,  nineteen
  hundred  eighty-seven,  an  organization  described  in paragraph two or
  twenty-five of subdivision (c)  of  section  five  hundred  one  of  the
  Internal  Revenue  Code  of  nineteen hundred eighty-six shall be exempt
  from all taxes imposed by this chapter.