§ 3 — Imposition of tax; exemptions

§ 3. Imposition of tax; exemptions. 1. For the privilege of doing\nbusiness in the city in a corporate or organized capacity for all or any\npart of each of its fiscal or calendar years, every domestic or foreign\ncorporation, except corporations specified in subdivision four of this\nsection, shall annually pay a tax, upon the basis of its entire net\nincome, or upon such other basis as may be applicable as hereinafter\nprovided, for such fiscal or calendar year or part thereof, on a report\nwhich shall be filed, except as hereinafter provided, on or before the\nfifteenth day of March next succeeding the close of each such year, or,\nin the case of a taxpayer which reports on the basis of a fiscal year,\nwithin two and one-half months after the close of such fiscal year, and\nshall be paid as hereinafter provided.\n 2. The holding of real property in the city shall be deemed to be\ndoing business in the city within the meaning of this part. A\ncorporation shall not be deemed to be doing business in the city, for\nthe purposes of this part, by reason of (a) the maintenance of cash\nbalances with banks or trust companies in the city, or (b) the ownership\nof shares of stock or securities kept in the city, if kept in a safe\ndeposit box, safe, vault or other receptacle rented for the purpose, or\nif pledged as collateral security, or if deposited with one or more\nbanks or trust companies, or brokers who are members of a recognized\nsecurity exchange, in safekeeping or custody accounts, or (c) the taking\nof any action by any such bank or trust company or broker, which is\nincidental to the rendering of safekeeping or custodian service to such\ncorporation, or (d) any combination of the foregoing activities.\n 3. Any receiver, referee, trustee, assignee or other fiduciary, or any\nofficer or agent appointed by any court, who conducts the business of\nany corporation, shall be subject to the tax imposed by this part in the\nsame manner and to the same extent as if the business were conducted by\nthe agents or officers of such corporation. A dissolved corporation\nwhich continues to conduct business shall also be subject to the tax\nimposed by this part.\n 4. Corporations subject to tax under part three, part four or part\nfive, or under a local law of the city imposing a tax on utilities, and\nany trust company organized under a law of this state all of the stock\nof which is owned by not less than twenty savings banks organized under\na law of this state, and housing companies organized and operating\npursuant to the provisions of article two, article four or article five\nof the private housing finance law, shall not be subject to tax under\nthis part; provided, however, that corporations, other than utility\ncorporations subject to the supervision of the state department of\npublic service, which are subject to tax under a local law of the city\nimposing a tax on vendors of utility services shall be subject to tax\nunder this part on that percentage of their entire net income allocable\nto the city under section four which their receipts other than those\ntaxable under such local law taxing vendors of utility services is of\ntheir total receipts.\n 5. The tax imposed by subdivision one of this section, with the\nmodifications provided by subdivision six of this section, is imposed\nfor each calendar or fiscal year beginning with calendar or fiscal years\nending in or with the calendar year nineteen hundred sixty-six.\n 6. (a) The tax for any taxable year ending prior to December\nthirty-first, nineteen hundred sixty-six shall be an amount equal to the\ntax imposed by subdivision one of this section for such taxable year,\nmultiplied by the number of months (or major portions thereof) in such\ntaxable year which occur after December thirty-first, nineteen hundred\nsixty-five and divided by the number of months (or major portions\nthereof) in such taxable year.\n (b) In lieu of the method of computation of tax prescribed in\nparagraph (a) of this subdivision, if the taxpayer maintained adequate\nrecords for the portion of any taxable year ending prior to December\nthirty-first, nineteen hundred sixty-six, which portion falls within the\ncalendar year nineteen hundred sixty-six, it may elect to compute the\ntax for such taxable year by determining entire net income on the basis\nof the entire taxable income which it would have reported for federal\nincome tax purposes had it filed a federal income tax return for a\ntaxable year beginning January first, nineteen hundred sixty-six and\nending with the close of its actual taxable year and such taxable year\nbeginning January first, nineteen hundred sixty-six, shall be deemed to\nbe the period covered by its report, except that in computing such tax\nany portion of a capital loss which results from a capital loss\ncarryover and any net operating loss deduction, as modified pursuant to\nparagraph (f) of subdivision eight of section two shall be reduced by\nthe same part of such portion of such capital loss or of such net\noperating loss deduction (as the case may be) as the number of months (\nor major portions thereof) in the taxable year occurring before January\nfirst, nineteen hundred sixty-six is of the number of months (or major\nportions thereof) in such taxable year.\n