New York Laws
Article 9 - Corporation Tax
184 - Additional Franchise Tax on Transportation and Transmission Corporations and Associations.

(b) (1) A corporation classed as a "taxicab" or "omnibus",
(i) which is organized, incorporated or formed under the laws of any
other state, country or sovereignty, and
(ii) which neither owns nor leases property in this state in a
corporate or organized capacity, nor
(iii) maintains an office in this state in a corporate or organized
capacity, but
(iv) 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 not be taxed under the provisions of
this article. 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 clause (ii) of this subparagraph, to be
owning or leasing property in this state.
(2) 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.
3. Any corporation, joint-stock company or association formed for or
principally engaged in the conduct of subway railroad, elevated

railroad, or surface railroad not operated by steam, business, whose
property is leased to another railroad corporation, shall only be
required under this section to pay an annual tax at the rate of four and
one-half per centum upon the dividends paid during the year ending on
the thirty-first day of December in excess of four per centum upon the
amount of its capital stock, provided, however, that for the year ending
on the thirty-first day of December nineteen hundred seventy-six, as
described in subdivision two of section one hundred ninety-two of this
chapter, the tax shall be paid upon dividends paid during the months of
July through December of such year in excess of two per centum upon the
amount of its capital stock, except that where the property leased is
operated by a receiver and the gross earnings are not included with the
gross earnings of the lessee for the purposes of taxation under this
section, then such receiver shall be required to pay the tax upon gross
earnings as hereinbefore provided.
4. Allocation of gross earnings from transportation and transmission
services.--(a) General. A transportation or transmission corporation
shall determine its gross earnings from transportation and transmission
services within this state (except as otherwise provided for in this
subdivision) by multiplying its gross earnings from transportation and
transmission within and without the state by a fraction, the numerator
of which is the taxpayer's mileage within this state and the denominator
of which is the taxpayer's mileage within and without this state during
the period covered by the report or reports required by this chapter.
(b) Corporations engaged in the operation of vessels. A corporation
principally engaged in the operation of vessels shall determine its
gross earnings from transportation services within this state during the
period covered by the report or reports required by this chapter by
multiplying its gross earnings from transportation services within and
without this state by a percentage which represents the ratio of the
aggregate number of working days of the vessels it owns or leases in all
navigable lakes, rivers, streams and waters within this state and in New
York territorial waters to the aggregate number of working days of all
the vessels it owns or leases during such period.
(c) Telephone and telegraph corporations. A telephone or telegraph
corporation shall determine its gross earnings from transmission
services within this state during the period covered by the report or
reports required by this chapter by totaling its gross operating revenue
from transmission services performed wholly within this state plus the
portion of revenue from interstate and foreign transmission service
attributable to this state during such report period.
(d) All other gross earnings, if any, shall be allocated to this state
in the manner prescribed by rules and regulations promulgated by the tax
commission.
(e) With respect to other types of transportation and transmission
corporations or where the tax commission decides that with respect to a
certain corporation the method prescribed above does not fairly and
equitably reflect gross earnings from all sources within this state, the
tax commission shall prescribe methods of allocation or apportionment
which fairly and equitably reflect gross earnings from all sources
within this state. Also, the tax commission may, in order to properly
reflect gross earnings, determine the report period in which any item of
gross earnings shall be included without regard to the method of
accounting employed by a corporation taxable hereunder.
7-a. A railroad, palace car or sleeping car corporation, 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),
steamboat, or any other corporation formed for or principally engaged in

the operation of vessels whose only activity in this state is (i) the
maintenance of an office in this state and for the employing of capital
in this state and (ii) the use of property exclusively in interstate or
foreign commerce, shall not be subject to the tax imposed by this
section.

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