Section 183. Franchise tax on transportation and transmission corporations and associations

--1. (a) The term "corporation" as used in this section  shall include an association, within the meaning of paragraph  three  of
  subsection  (a)  of  section  seventy-seven  hundred one of the internal
  revenue code (including a limited liability company), a publicly  traded
  partnership  treated  as  a  corporation  for  purposes  of the internal
  revenue code pursuant to section seventy-seven hundred four thereof  and
  any  business  conducted  by  a  trustee or trustees wherein interest or
  ownership is evidenced by certificates or other written instruments.
    (b) For the privilege of exercising its  corporate  franchise,  or  of
  doing  business,  or  of  employing  capital,  or  of  owning or leasing
  property in this state in a  corporate  or  organized  capacity,  or  of
  maintaining  an  office  in  this  state,  every  domestic  corporation,
  joint-stock company or association formed for or principally engaged  in
  the conduct of canal, steamboat, ferry (except a ferry company operating
  between  any  of  the  boroughs  of  the  city of New York under a lease
  granted by the city), express, navigation, pipe line, transfer,  baggage
  express,  omnibus,  taxicab, telegraph, or telephone business, or formed
  for or principally engaged in  the  conduct  of  two  or  more  of  such
  businesses,  and  every  domestic  corporation,  joint-stock  company or
  association formed for or  principally  engaged  in  the  conduct  of  a
  railroad, palace car, sleeping car or trucking business or formed for or
  principally engaged in the conduct of two or more of such businesses and
  which  has made an election pursuant to subdivision ten of this section,
  and every other domestic corporation, joint-stock company or association
  principally engaged in the conduct of a transportation  or  transmission
  business,  except  a  corporation,  joint-stock  company  or association
  formed for or principally engaged in the conduct of a  railroad,  palace
  car,  sleeping  car  or  trucking  business or formed for or principally
  engaged in the conduct of two or more of such businesses and  which  has
  not  made  the election provided for in subdivision ten of this section,
  and except a corporation, joint-stock company or association principally
  engaged in the conduct of aviation  (including  air  freight  forwarders
  acting  as  principal  and  like  indirect  air  carriers)  and except a
  corporation principally engaged in providing telecommunication  services
  between  aircraft  and  dispatcher,  aircraft and air traffic control or
  ground station and ground station (or any combination of the foregoing),
  at least ninety percent of the voting  stock  of  which  corporation  is
  owned,  directly  or indirectly, by air carriers and which corporation's
  principal function is to fulfill the requirements  of  (i)  the  federal
  aviation   administration   (or  the  successor  thereto)  or  (ii)  the
  international civil aviation organization (or  the  successor  thereto),
  relating to the existence of a communication system between aircraft and
  dispatcher,  aircraft  and  air  traffic  control  or ground station and
  ground station (or any combination of the foregoing) for the purposes of
  air safety and navigation and except a corporation, joint-stock  company
  or  association  subject  to  taxation  under article thirty-two of this
  chapter, shall pay, in advance, an annual tax to be  computed  upon  the
  basis  of  the  amount of its capital stock within this state during the
  preceding year, and upon each dollar of such amount. Provided,  however,
  a   corporation,  joint-stock  company  or  association  formed  for  or
  principally engaged in the transportation, transmission or  distribution
  of  gas,  electricity  or  steam  shall not be subject to tax under this
  section or section one hundred eighty-four of this article.
    (c)  Notwithstanding  the  provisions  of  paragraph   (b)   of   this
  subdivision,  during  the  period  that  the  state  tax  on motor fuel,
  computed without regard to any reimbursement allowable  under  paragraph
  (d)  of  subdivision  three of section two hundred eighty-nine-c of this

  chapter, exceeds two cents per gallon, the corporations, herein  classed
  as  "taxicab"  and  "omnibus,"  other  than  corporations  described  in
  subdivision nine of this section, shall be taxed under the provisions of
  article nine-a of this chapter and not under this section.
    2. The measure of the amount of capital stock in this state, 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
  this state, 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 state,  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.
    3. Every corporation, joint-stock company or association,  subject  to
  taxation  under this section shall, in any event, pay annually a minimum
  tax of not  less  than  seventy-five  dollars  nor  less  than  one  and
  five-tenths  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 amount to six per centum or more, the
  tax  upon  such  kind  of  capital  stock  shall  be  at  the  rate   of
  three-eighths  of  a  mill 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 tax commission shall, for such purpose, make a fair and
  equitable apportionment of the assets of  the  corporation,  joint-stock
  company  or  association, between or among the different kinds of stock,
  provided, however, that the provisions of this sentence shall not  apply
  to  any  corporation,  joint  stock company or association formed for or
  principally engaged in the conduct of  a  telephone  business  which  is
  subject  to  the  provisions  of section one hundred eighty-four of this
  article and which has a total number of access lines in the state of one
  million or less.
    4. 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.
    5. 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, the rate of three-eighths 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. The amount of earned surplus
  at  the time of change of classification of a corporation formerly taxed
  under article nine-a of this chapter shall be  excluded  in  determining
  the  amount  of dividends paid. 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.
    6.  Every  like  corporation,  joint-stock  company   or   association
  organized,  incorporated  or  formed  under the laws of any other state,
  country or sovereignty shall  pay  a  like  tax  for  the  privilege  of
  exercising  its  corporate  franchise,  or  of  doing  business,  or  of
  employing capital, or of owning or leasing property in this state  in  a
  corporate  or  organized  capacity,  or of maintaining an office in this
  state, to be computed upon the basis of the measurement herein  provided
  for the taxation of domestic corporations.
    7. The owning or holding in this state by a foreign corporation, or by
  a  trustee or trustees included under this section within the meaning of
  the term  corporation  as  herein  before  defined,  of  property  shall
  constitute  doing  business  within this state within the intent of this
  section; provided, however, that the owning or holding in this state  by
  a   railroad,   palace   car  or  sleeping  car  corporation,  business,
  navigation, canal, ferry, (except a ferry company operating between  any
  of  the  boroughs  of  the city of New York under a lease granted by the
  city), or steamboat or any other corporation formed for  or  principally
  engaged  in  the operation of vessels included under this section within
  the meaning of  the  term  corporation  as  herein  before  defined,  of
  property  used  exclusively  in interstate or foreign commerce shall not
  constitute doing business in  this  state  within  the  intent  of  this
  section.  However,  a  foreign corporation or such a trustee or trustees
  shall not be deemed to be doing business, employing capital,  owning  or
  leasing  property,  or  maintaining  an  office  in  this state, for the
  purposes of this article, by reason  of  (a)  the  maintenance  of  cash
  balances  with  banks  or  trust  companies  in  this  state, or (b) the
  ownership of shares of stock or securities kept in this state,  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 this state
  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 this state, and does not employ  capital  or  own  or  lease
  property  in  this  state,  or  (e) the keeping of books or records of a
  corporation in this state 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
  this state, or (f) any combination of the foregoing activities.
    8.  The  measure  of  the capital stock in this state 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 New York territorial waters 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,  the  rate  of  three-eighths of a mill for each one per centum of
  dividends shall be applied to the amount of such paid-in capital.
    9. (a) A corporation, classed as a "taxicab" or "omnibus",
    (1)  which  is organized, incorporated or formed under the laws of any
  other state, country or sovereignty, and
    (2) which neither  owns  nor  leases  property  in  this  state  in  a
  corporate or organized capacity, nor
    (3)  maintains  an  office  in  this state in a corporate or organized
  capacity, but
    (4) which is doing business or employing  capital  in  this  state  by
  conducting  at  least  one  but  fewer than twelve trips into this state
  during the calendar year,
  shall be exempt from the tax imposed under this  section.  If  the  only
  property  a  corporation  owns  or  leases in this state is a vehicle or
  vehicles used to conduct trips, it shall not be considered, for purposes
  of subparagraph two of this paragraph, to be owning or leasing  property
  in this state.
    (b)  For  purposes  of  this  subdivision,  a corporation classed as a
  "taxicab" or "omnibus" shall be considered to be conducting a trip  into
  New  York  state  when  one  of  its  vehicles enters New York state and
  transports passengers to, from, or to and from a location  in  New  York
  state.  A  corporation  shall  not be considered to be conducting a trip
  into New York state if  its  vehicle  only  makes  incidental  stops  at
  locations in the state while in transit from a location outside New York
  state  to another location outside New York state. The number of trips a
  corporation  conducts  into  New  York  state  shall  be  calculated  by
  determining  the  number of trips each vehicle owned, leased or operated
  by the corporation conducts into New York state and adding those numbers
  together.
    10. Election. With respect to taxable years beginning  after  nineteen
  hundred   ninety-seven,   every   corporation,  joint-stock  company  or
  association formed for or  principally  engaged  in  the  conduct  of  a
  railroad  (including surface railroad, whether or not operated by steam,
  subway railroad or elevated  railroad),  palace  car,  sleeping  car  or
  trucking business or formed for or principally engaged in the conduct of
  two or more of such businesses, which would be subject to article nine-A
  or  thirty-two  of  this chapter if the election provided for under this
  subdivision were not made, may elect to be subject to the provisions  of
  this section and, as applicable, section one hundred eighty-four of this
  article,   rather   than  the  provisions  of  such  article  nine-A  or
  thirty-two. In the case of such a corporation,  joint-stock  company  or
  association  subject  to  the  tax  imposed  under  this section and, as
  applicable, section one hundred eighty-four of  this  article,  for  the
  taxable    year   ending   December   thirty-first,   nineteen   hundred
  ninety-seven, such corporation, joint-stock company or association  must
  make  such  election  on  or  before  March  fifteenth, nineteen hundred
  ninety-eight, and such election shall apply to the taxable  year  ending
  on   December   thirty-first,   nineteen  hundred  ninety-eight  and  to
  succeeding  taxable  years,  until  revoked.  In  the  case  of  such  a
  corporation,  joint-stock company or association which is not subject to
  the tax imposed under this  section  and,  as  applicable,  section  one
  hundred eighty-four of this article for the taxable year ending December
  thirty-first,  nineteen  hundred  ninety-seven,  but thereafter would be
  subject to article nine-A or thirty-two of this chapter if the  election
  provided  for  under  this  subdivision were not made, such corporation,
  joint-stock company or association must make such election by the  first
  day  on which such corporation, joint-stock company or association would

  be required to file a return or report (without  regard  to  extensions)
  under  this  section or section one hundred eighty-four of this article,
  or section one hundred eighty-three-a or  one  hundred-eighty-four-a  of
  this  article,  or  article  nine-A  or  thirty-two  of this chapter. An
  election made pursuant to this  subdivision  shall  continue  to  be  in
  effect until revoked by the taxpayer. A revocation of the election to be
  subject  to  this  section  and,  as  applicable,  section  one  hundred
  eighty-four of this article, shall be irrevocable. Such election, and  a
  revocation  thereof,  shall  be  made  in  the  manner prescribed by the
  commissioner, whether by regulation or otherwise. Such revocation  shall
  apply as of the first day of January next following the end of a taxable
  year with respect to which the taxpayer had been subject to this section
  and,  as applicable, section one hundred eighty-four of this article, by
  reason of an election made pursuant to this subdivision.