§ 12. Tax based on net income; imposition; minimum tax; new\nincorporations; dissolution; consolidations; mergers; etc. 1. For the\nprivilege of doing business in the city:\n (a) Every bank and savings and loan association organized under the\nauthority of this state;\n (b) Every trust company incorporated, organized or formed under, by or\npursuant to a law of the state, other than a trust company all of the\nstock of which is owned by not less than twenty savings banks organized\nunder a law of the state, and every domestic corporation authorized to\ndo a trust company's business solely or in connection with any other\nbusiness, under a general or special law of the state;\n (c) Every other domestic financial corporation;\n (d) Every incorporated foreign banker doing a banking business and\nevery other foreign financial corporation; and\n (e) Every federal savings and loan association located within the\ncity,\nshall annually pay a tax at the rate of four and one-half per centum\nexcept that for the years nineteen hundred seventy-one and those\nfollowing, as an alternative, at the rate of five and sixty-three one\nhundredths per centum, to be computed as provided in this subpart, upon\nthe basis of its net income for each calendar year, beginning with the\ncalendar year nineteen hundred sixty-six, next preceding the date when\nsuch tax becomes due and, if the taxpayer is required to file a\ndeclaration of estimated tax and to make payments on account of such\nestimated tax as provided by section thirty-five of this part, upon the\nbasis of its net income for the calendar year with respect to which such\ndeclaration is required to be filed.\n 2. Every such corporation for the privilege of doing business in the\ncity and every federal savings and loan association located in the city\nshall be subject to a minimum tax of not less than ten dollars and not\nless than one mill or, as an alternative for the years nineteen hundred\nseventy-one and those following, a minimum tax of not less than twelve\nand one-half dollars and not less than one and one quarter mills upon\neach dollar of such a part of its issued capital stock on the last day\nof the calendar year preceding that in which such tax becomes due, at\nits face value, as the gross income of such corporation derived from\nbusiness carried on within the city, during such calendar year, bears to\nits gross income derived from all business, both within and without the\ncity, during said year, but if such a corporation has stock without par\nvalue, such stock shall be taken at its actual or market value, and not\nless than five dollars per share, as may be determined by the director\nof finance; except that a savings bank and savings and loan association\nshall be subject to a minimum tax of not less than ten dollars and not\nless than an amount equal to two per centum of the amount of interest or\ndividends credited by it by depositors or shareholders during the\ncalendar year preceding that in which such tax becomes due or, as an\nalternative, for the years nineteen hundred seventy-one and those\nfollowing, a minimum tax of not less than twelve and one-half dollars\nand not less than an amount equal to two and one-half per centum of the\namount of interest or dividends credited to by it to depositors or\nshareholders during the calendar year preceding that in which such tax\nbecomes due, provided, that, in determining such amount, each interest\nor dividend credit to a depositor or shareholder shall be deemed to be\nthe interest or dividend actually credited or the interest or dividend\nwhich would have been credited if it had been computed and credited at\nthe rate of two per centum per annum, whichever is less, and except also\nthat in the case of a trust company or savings bank incorporated in the\ncalendar year preceding that in which its first return under this\nsubpart shall be due and after the thirtieth day of June in such year,\nthe minimum tax, computed as in this subdivision provided, shall be\nreduced one-twelfth for each month, or major portion thereof, subsequent\nto said thirtieth day of June during which such trust company or savings\nbank did not exercise the privilege of doing business in the city.\n 3. For the privilege of doing business in the city, every such\ndomestic corporation, except trust companies and savings banks, shall be\nsubject to a tax for the calendar year in which its organization\ncertificate is filed, and, for the privilege of doing business in the\ncity, every such foreign corporation shall be subject to a tax for the\ncalendar year in which it first does business in the city, and, every\nfederal savings and loan association located within the city shall be\nsubject to a tax for the calendar year in which it first becomes located\nwithin the city, computed in the same manner and at the same rate as the\nminimum tax under subdivision two of this section, except that the\nincome forming the basis for proration shall be the income for such\ncalendar year, and the issued capital stock shall be taken as of the\nlast day of such calendar year; provided, however, that the tax so\ncomputed shall be reduced one-twelfth for each month, or major portion\nthereof, in such calendar year, during which such corporation was not\ndoing business in the city, or, if a federal savings and loan\nassociation, was not located in the city, and in no event shall the tax\nbe less than ten dollars or, as an alternative, for the year nineteen\nhundred seventy-one and those following, not less than twelve and\none-half dollars.\n 4. For the privilege of doing business in the city, every such trust\ncompany and savings bank which shall become incorporated between the\nthirty-first day of December and the succeeding first day of July, shall\nbe subject to a tax for such period, computed in the same manner and at\nthe same rate as the minimum tax under subdivision two of this section,\nexcept that the income forming the basis for proration shall be the\nincome for such period; and the issued capital stock, or interest\ncredited to depositors of a savings bank, shall be taken as of the last\nday of such period; provided, however, that the tax so computed shall be\nreduced one-half and an additional one-twelfth for each month, or major\nportion thereof, in such period, during which such trust company or\nsavings bank was not doing business in the city, and in no event shall\nthe tax be less than ten dollars or, as an alternative, for the year\nnineteen hundred seventy-one and those following, not less than twelve\nand one-half dollars.\n 5. For the privilege of doing business in the city, every such\ncorporation, except trust companies and savings banks, which shall be\ndissolved between the thirty-first day of December and the succeeding\nsecond day of September, and shall not become merged or consolidated\nwith another corporation taxable under this subpart and, every such\nforeign corporation which shall cease to do business in the city during\nthe same period, and every federal savings and loan association which\nceases to be located in the city during the same period, and shall not\nbecome merged or consolidated with another corporation taxable under\nthis subpart, shall pay a tax for the period from the thirty-first day\nof December up to the time of dissolution, ceasing to do business in the\ncity, or ceasing to be located in the city, as the case may be, equal to\nthat which would have been payable had it not been dissolved, ceased to\ndo business in the city, or ceased to be located in the city, except\nthat such tax shall be reduced one-third and an additional one-twelfth\nfor each month, or major portion thereof, prior to such succeeding\nsecond day of September, during which such corporation was not doing\nbusiness in the city, or was not located in the city, and in no event\nshall the tax be less than ten dollars or, as an alternative, for the\nyear nineteen hundred seventy-one and those following, not less than\ntwelve and one-half dollars. If such dissolution or cessation occurs\nbetween the fifteenth day of March and the second day of September, and\nif such corporation shall have filed its return on or before the\nfifteenth day of March as required by section thirty-two of this part,\nit may file a claim for refund as provided in section seventy-eight of\nthis title, showing any reduction in tax to which it may be entitled as\nprovided in the preceding sentence; and if it shall be made to appear\nthat the amount of tax due is less than the amount as computed on the\nbasis of the original return, the director of finance shall adjust the\ncomputation of tax accordingly. If the amount of tax as so adjusted\nshall be less than theretofore amount heretofore paid, the excess shall\nbe refunded by the comptroller as provided in subdivision one of section\nseventy-seven of this title.\n 6. Every such trust company and savings bank, which shall be\ndissolved, and shall not become merged or consolidated with another\ncorporation taxable under this subpart, shall, if dissolution takes\nplace between the thirtieth day of June and the succeeding first day of\nJanuary, be subject to a tax, for that part of such period in which it\nhad been doing business, computed in the same manner and at the same\nrate as the minimum tax under subdivision two of this section, except\nthat the income forming the basis for proration shall be the income for\nthe calendar year in which such dissolution occurs; and the issued\ncapital stock, or interest credited to depositors of a savings bank,\nshall be taken as of the date of dissolution; provided, however, that\nthe tax so computed shall be reduced one-half and an additional\none-twelfth for each month, or major portion thereof, between the date\nof dissolution and the succeeding first day of January. If dissolution\noccurs between the thirty-first day of December and the succeeding\nsixteenth day of March, such trust company and savings bank shall be\nsubject to the same tax that would have been due from it on or before\nthe fifteenth day of March had it not been dissolved, except that such\ntax shall be reduced one-twelfth for each month, or major portion\nthereof, from the date of dissolution to the succeeding first day of\nJuly, and shall be for the period beginning on the preceding first day\nof July and ending on the date of dissolution. In no event shall the tax\nunder this subdivision be less than ten dollars or, as an alternative,\nfor the year nineteen hundred seventy-one and those following, not less\nthan twelve and one-half dollars.\n 7. In the case of a consolidation or merger of taxpayers, or in case a\nnational bank taxable under subpart two of this part shall be\nconsolidated or merged with a taxpayer under this subpart, or in case of\na series of such transactions, there shall be added to the net income of\nthe taxpayer resulting from such consolidations or mergers the net\nincome of the taxpayers which are consolidated or merged for the period\nfor which the taxpayer resulting from such consolidation or merger is\nrequired to render any return under this subpart, except that net income\nshall not be included if it has already been used as the basis for a tax\nunder this subpart, and the tax payable on the filing of such return\nshall be based upon the entire net income reported therein. The\nacquisition by a taxpayer, directly or indirectly, of the assets or\nfranchises of another taxpayer or national bank shall be deemed a merger\nfor the purposes of this section.\n 8. The tax imposed by this subpart shall be for the calendar year next\npreceding the year in which it becomes due; except that with respect to\ncorporations subject to a tax imposed under subdivisions three, four,\nfive or six of this section, the tax shall be for the period therein\nspecified, and except that with respect to corporations required to file\na declaration of estimated tax and to make payments on account of such\nestimated tax as provided by section thirty-five of this part, all\npayments of tax within a calendar year, whether computed on the basis of\nnet income for the current calendar year or on the basis of net income\nfor the preceding calendar year, shall be for the calendar year in which\nthe payments are required to be made.\n 9. In the event that it shall be finally determined by a court of\ncompetent jurisdiction that the taxes imposed on national banking\nassociations by subpart two of this part are unconstitutional or invalid\nfor the reason that they are not in conformity with the provisions of\nsection fifty-two hundred nineteen of the United States revised\nstatutes, then, in lieu of the taxes imposed by the provisions of this\nsubpart, every corporation that otherwise would have been subject to tax\nunder this subpart shall be subject to the tax imposed under part two as\nof the effective date of part two, and all of the provisions of part\ntwo, unless clearly inappropriate, shall be applicable except\nsubdivision four of section three; and, in such event, any payments\nmade, reports or returns filed or any act of the director of finance or\nof a taxpayer purportedly under this part shall be treated as though\nmade, filed or done pursuant to part two.\n 10. Notwithstanding the provisions of subdivisions one and two, for\nthe years nineteen hundred seventy-three and those following, such city\nmay impose, by local law, a surtax of fifteen per centum of the\npercentage of tax in effect for the year nineteen hundred seventy-two.\n