209-A - Tax surcharge.
§ 209-A. Tax surcharge. 1. In addition to the tax imposed under section two hundred nine of this article, there is hereby imposed, for taxable years ending after June thirtieth, nineteen hundred ninety and before July first, nineteen hundred ninety-seven, a tax surcharge at the rate of fifteen percent in the case of such taxable years ending before July first, nineteen hundred ninety-four, and until such rate is superseded; at the rate of ten percent in the case of such taxable years ending after June thirtieth, nineteen hundred ninety-four and before July first, nineteen hundred ninety-five, and until such rate is superseded; at the rate of five percent in the case of such taxable years ending after June thirtieth, nineteen hundred ninety-five and before July first, nineteen hundred ninety-six, and until such rate is superseded; and at the rate of zero percent in the case of such taxable years ending after June thirtieth, nineteen hundred ninety-six and before July first, nineteen hundred ninety-seven, of the tax imposed under section two hundred nine of this article, after deduction of any credits against tax otherwise allowable under this article. Provided, however, that in the case of a New York S corporation, such tax surcharge shall be imposed as provided in subdivision six of this section. The tax surcharge imposed by this section at the rate of fifteen percent shall not be imposed upon any taxpayer for more than forty-eight months, and the tax surcharges imposed by this section at the rates of ten percent, five percent and zero percent shall not, respectively, be imposed upon any taxpayer for more than twelve months, and the commissioner shall prescribe by regulation or instructions a method of proration designed to effectuate such result. The credits against tax otherwise allowable under section two hundred ten of this article shall not be allowed against the tax surcharge imposed by this section. 2. The provisions concerning reports under section two hundred eleven of this article shall be applicable to this section, except that for purposes of an automatic extension for six months for filing a report covering the taxes imposed by this article, such automatic extension shall be allowed, for taxable years to which the tax surcharge imposed by this section applies, only if a taxpayer files with the commissioner an application for extension in such form as the commissioner may prescribe, and pays on or before the date of such filing, in addition to any other amounts required under this article, fifteen percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety and before July first, nineteen hundred ninety-four, ten percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-four and before July first, nineteen hundred ninety-five, five percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-five and before July first, nineteen hundred ninety-six, and zero percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-six and before July first, nineteen hundred ninety-seven, of the amount properly estimated as provided in section two hundred thirteen of this article as its tax payable under section two hundred nine of this article, after deduction of any credits against tax otherwise allowable under section two hundred ten of this article. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed. 3. Except as otherwise provided in this section, all of the provisions of this article, except for section two hundred nine-B of this article, shall apply to the tax surcharge imposed by this section with such modifications as may be necessary to adapt such language to the tax surcharge imposed by this section. Such provisions shall apply with thesame force and effect as if those provisions had been set forth in full in this section except to the extent that any provision is either inconsistent with a provision of this section or not relevant to the tax surcharge imposed by this section, and to that end a reference in this article to the tax imposed by section two hundred nine of this article shall be read as a reference to the tax surcharge imposed by this section, and to the sum of such tax and such tax surcharge in the case of sections two hundred thirteen-a and two hundred thirteen-b of this article and such other provisions requiring such reading in order to effectuate the purposes of this provision, unless a different meaning is clearly required. 4. The amount of tax surcharge imposed pursuant to this section shall not be included in any calculation of a tax surcharge imposed pursuant to section two hundred nine-B of this article. 5. Insofar as subdivision one of this section establishes a rate of fifteen percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety and before July first, nineteen hundred ninety-four and until such rate is superseded, a rate of ten percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-four and before July first, nineteen hundred ninety-five and until such rate is superseded, a rate of five percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-five and before July first, nineteen hundred ninety-six and until such rate is superseded, and a rate of zero percent in the case of taxable years ending after June thirtieth, nineteen hundred ninety-six and before July first, nineteen hundred ninety-seven, the transition from such rate of fifteen percent to such rate of ten percent, from such rate of ten percent to such rate of five percent, and from such rate of five percent to such rate of zero percent, shall be deemed to occur, respectively, on the first day of the seventh month of each of such taxable years, with the result that for purposes of implementation of such changes in rates, and notwithstanding such subdivision one, there is hereby imposed with respect to all taxable years ending after June thirtieth, nineteen hundred ninety-four and before July first, nineteen hundred ninety-five, including taxable years of fewer than twelve months, a tax surcharge at the rate of twelve and one-half percent; there is hereby imposed with respect to all taxable years ending after June thirtieth, nineteen hundred ninety-five and before July first, nineteen hundred ninety-six, including taxable years of fewer than twelve months, a tax surcharge at the rate of seven and one-half percent; and there is hereby imposed with respect to all taxable years ending after June thirtieth, nineteen hundred ninety-six and before July first, nineteen hundred ninety-seven, including taxable years of fewer than twelve months, a tax surcharge at the rate of two and one-half percent. In addition, for purposes of implementation of all the provisions of this section references to ten percent shall be read as references to twelve and one-half percent, references to five percent shall be read as references to seven and one-half percent and references to zero percent shall be read as references to two and one-half percent. 6. In the case of a New York S corporation, (a) the tax surcharge under this section shall not be imposed on any such corporation which is a small business taxpayer as defined in paragraph (f) of subdivision one of section two hundred ten of this article the entire net income of which is not more than two hundred thousand dollars and (b) the tax surcharge under this section on any New York S corporation other than one excluded under paragraph (a) hereof shall be imposed as provided in this section on the S corporation surcharge base. (c) The S corporation surcharge base is:(i) for taxable years ending before July first, nineteen hundred ninety-four, the amount described in clause (i) of subparagraph one of paragraph (g) of subdivision one of section two hundred ten of this article, (ii) for taxable years ending after June thirtieth, nineteen hundred ninety-four and before July first, nineteen hundred ninety-six, fifty percent of the sum of the amounts described in (I) clause (i) of subparagraph one of paragraph (g) of subdivision one of section two hundred ten of this article and (II) subparagraph one of such paragraph (g), and (iii) for taxable years ending after June thirtieth, nineteen hundred ninety-six, the amount described in subparagraph one of paragraph (g) of subdivision one of section two hundred ten of this article. (d) Tax surcharge base for small business taxpayers. Notwithstanding paragraph (c) hereof, in the case of a New York S corporation which is a small business taxpayer the entire net income of which is more than two hundred thousand dollars, the tax surcharge base for any taxable year shall be the product of the amount determined under such paragraph (c) for the taxable year and a fraction, the numerator of which is the difference between such corporation's entire net income and two hundred thousand dollars and the denominator of which is ninety thousand dollars.