NY State Assembly Bill 2009-A7086

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Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to ways and means
Jun 18, 2009	print number 7086a
Jun 18, 2009	amend (t) and recommit to ways and means
Mar 20, 2009	referred to ways and means

Bill Amendments

Original

A (Active)

2009-A7086 - Details

Current Committee:: Assembly Ways And Means
Laws Affected:: Amd §§209-b, 210 & 1454, Tax L; amd §§11-604 & 11-642, NYC Ad Cd

2009-A7086 - Summary

Establishes rules pertaining to computation of tax for receipts from services provided by asset management corporations.

2009-A7086 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7086

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 20, 2009
                               ___________

Introduced  by  M. of A. BING -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law,  in  relation  to  establishing  rules  for
  receipts from services provided by asset management corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph 2 of paragraph b of subdivision 2  of  section
209-b of the tax law, as amended by section 3 of part K of chapter 63 of
the laws of 2000, is amended to read as follows:
  (2) services performed within the metropolitan commuter transportation
district,  provided, however, that (i) in the case of a taxpayer engaged
in the business of publishing newspapers or periodicals, receipts  aris-
ing  from  sales of advertising contained in such newspapers and period-
icals shall be deemed to arise from services performed within the metro-
politan  commuter  transportation  district  to  the  extent  that  such
newspapers  and periodicals are delivered to points within the metropol-
itan commuter transportation district, (ii) receipts from an  investment
company  from  the  sale  of  management, administration or distribution
services to such investment  company  shall  be  deemed  to  arise  from
services  performed  within  the  metropolitan  commuter  transportation
district to the extent set forth in subparagraph six of paragraph (a) of
subdivision three of section two hundred ten  of  this  chapter  (except
that  references  in such subparagraph six to the state shall be deemed,
for purposes of application to this clause,  to  be  references  to  the
metropolitan  commuter  transportation  district),  (iii) in the case of
taxpayers principally engaged in the activity of air freight  forwarding
acting as principal and like indirect air carriage receipts arising from
such  activity  shall arise from services performed within the metropol-
itan commuter transportation district as follows: one hundred percent of
such receipts if both the  pickup  and  delivery  associated  with  such
receipts  are  made in the metropolitan commuter transportation district

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10388-03-9

A. 7086                             2

and fifty percent of such receipts if  either  the  pickup  or  delivery
associated  with  such  receipts  is  made  in the metropolitan commuter
transportation district, [and] (iv) in the case of a taxpayer which is a
registered  securities  or  commodities  broker  or dealer, the receipts
specified in subparagraph nine of paragraph (a) of subdivision three  of
section  two  hundred  ten of this article shall be deemed to arise from
services  performed  within  the  metropolitan  commuter  transportation
district  to the extent set forth in such subparagraph nine (except that
references in such subparagraph nine to the state shall be  deemed,  for
purposes  of  the  application  of  this clause, to be references to the
metropolitan commuter transportation district), AND  (V)  RECEIPTS  FROM
SERVICES  PROVIDED BY AN ASSET MANAGEMENT CORPORATION SHALL BE DEEMED TO
ARISE FROM SERVICES PERFORMED WITHIN THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT TO THE EXTENT SET FORTH IN SUBPARAGRAPH SIX-A  OF  PARA-
GRAPH  (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THIS CHAP-
TER (EXCEPT THAT REFERENCES IN SUCH  SUBPARAGRAPH  SIX-A  TO  THE  STATE
SHALL  BE  DEEMED,  FOR  PURPOSES  OF  APPLICATION TO THIS CLAUSE, TO BE
REFERENCES TO THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT),
  S 2. Clause B of subparagraph 2 of paragraph a  of  subdivision  3  of
section 210 of the tax law, as separately amended by section 1 of part K
and  section  13 of part Y of chapter 63 of the laws of 2000, is amended
to read as follows:
  (B) services performed within the state, provided, however,  that  (i)
in  the case of a taxpayer engaged in the business of publishing newspa-
pers  or  periodicals,  receipts  arising  from  sales  of   advertising
contained  in  such  newspapers and periodicals shall be deemed to arise
from services performed within the state to the extent that such newspa-
pers and periodicals are delivered to  points  within  the  state,  (ii)
receipts from an investment company arising from the sale of management,
administration or distribution services to such investment company shall
be  deemed  to  arise  from  services  performed within the state to the
extent set forth in subparagraph six of this  paragraph,  (iii)  in  the
case  of  taxpayers  principally  engaged in the activity of air freight
forwarding acting as principal and like indirect air  carriage  receipts
arising  from  such  activity shall arise from services performed within
the state as follows: one hundred percent of such receipts if  both  the
pickup and delivery associated with such receipts are made in this state
and  fifty  percent  of  such  receipts if either the pickup or delivery
associated with such receipts is made in this state [and], (iv)  in  the
case  of  a  taxpayer  which  is  a registered securities or commodities
broker or dealer, the receipts specified in subparagraph  nine  of  this
paragraph  shall  be  deemed to arise from services performed within the
state to the extent set forth in such subparagraph nine, [and (iv)]  (V)
in  the case of receipts arising from the transportation or transmission
of gas through pipes, the portion  of  such  receipts  which  constitute
receipts  from  services performed within the state shall be the product
of (I) the total of such receipts and (II) a fraction, the numerator  of
which  is  the  taxpayer's transportation units within the state and the
denominator of which is the taxpayer's transportation units  within  and
without  the  state[.  A]  PROVIDED  THAT FOR PURPOSES OF THIS SECTION A
transportation unit is the transportation of one cubic foot of gas  over
a  distance  of one mile, AND (VI) RECEIPTS FROM SERVICES PROVIDED BY AN
ASSET MANAGEMENT CORPORATION SHALL BE  DEEMED  TO  ARISE  FROM  SERVICES
PERFORMED  WITHIN  THIS  STATE  TO  THE EXTENT SET FORTH IN SUBPARAGRAPH
SIX-A OF THIS PARAGRAPH,

A. 7086                             3

  S 3. Paragraph a of subdivision 3 of section 210 of  the  tax  law  is
amended by adding a new subparagraph 6-a to read as follows:
  (6-A)  RULES  FOR  RECEIPTS FROM SERVICES PROVIDED BY ASSET MANAGEMENT
CORPORATIONS.   (A) FOR PURPOSES OF SUBCLAUSE  (VI)  OF  CLAUSE  (B)  OF
SUBPARAGRAPH  TWO OF THIS PARAGRAPH, THE PORTION OF RECEIPTS RECEIVED BY
AN ASSET MANAGEMENT CORPORATION ARISING  FROM  THE  PROVISION  OF  ASSET
MANAGEMENT  SERVICES TO AN INDIVIDUAL, A REGULATED INVESTMENT COMPANY AS
DEFINED IN SECTION 851 OF THE INTERNAL REVENUE CODE, OR AN INSTITUTIONAL
INVESTOR HOLDING INVESTMENTS FOR THE BENEFIT OF OTHERS AS DETERMINED  IN
ACCORDANCE WITH CLAUSE (B) OF THIS SUBPARAGRAPH SHALL BE DEEMED TO ARISE
FROM SERVICES PERFORMED WITHIN THE STATE, SUCH PORTION REFERRED TO HERE-
IN AS THE NEW YORK PORTION.
  (B)  THE ENTIRE NET INCOME OF AN ASSET MANAGEMENT CORPORATION SHALL BE
APPORTIONED TO THIS STATE ON THE BASIS OF THE RATIO  OF  GROSS  RECEIPTS
FROM  ASSET  MANAGEMENT  SERVICES FROM SOURCES WITHIN THIS STATE FOR THE
INCOME YEAR EXPRESSED AS A PERCENTAGE OF ALL SUCH  GROSS  RECEIPTS  FROM
ASSET  MANAGEMENT  SERVICES  BOTH  WITHIN  AND WITHOUT THE STATE FOR THE
INCOME YEAR. THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES
SHALL BE DETERMINED AS FOLLOWS:
  (A) IN THE CASE OF ASSET  MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO SUCH
SERVICES SHALL BE SOURCED TO THE STATE OF THE INDIVIDUAL'S DOMICILE.
  (B) IN THE CASE OF ASSET  MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INSTITUTIONAL  INVESTOR  HOLDING INVESTMENTS FOR THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER  SECTION 7701 OF THE INTERNAL REVENUE CODE OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER  FOREIGN  LAW,  GROSS  RECEIPTS
WITH  RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (I) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS  OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT  SERVICES  TO  A  PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND, (OTHER THAN AN INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER  SECTION 7701 OF THE INTERNAL REVENUE CODE OF
1986, OR ANY OTHER SIMILAR ENTITY ORGANIZED UNDER  FOREIGN  LAW  THROUGH
THE  EXERCISE  OF REASONABLE DILIGENCE IN ASCERTAINING SUCH INFORMATION,
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES SHALL  BE  SOURCED  TO  THE
DOMICILE OF SUCH BENEFICIARIES, OWNERS OR MEMBERS;
  (II) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS  IS  NOT AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING
ASSET MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR  POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S80A-1 ET SEQ.)), OR TO AN
INSTITUTIONAL  INVESTOR  ORGANIZED  AS  A  PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OF
1986,  OR  ANY  OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH
THE EXERCISE OF REASONABLE DILIGENCE IN ASCERTAINING  SUCH  INFORMATION,
ANY REASONABLE ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE
TO  THE ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE
OF GROSS RECEIPTS WITH RESPECT TO SUCH  SERVICES.  BASED  ON  FACTS  AND
CIRCUMSTANCES  IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO

A. 7086                             4

DETERMINE THE SOURCE OF GROSS RECEIPTS FROM  ASSET  MANAGEMENT  SERVICES
MAY  TAKE  INTO ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE FROM
THE UNITED STATES CENSUS BUREAU,  THE  DOMICILE  OF  THE  SPONSOR  OF  A
PENSION  PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF INVESTMENTS
(OTHER THAN AN INVESTMENT COMPANY UNDER THE INVESTMENT  COMPANY  ACT  OF
1940  (15  U.S.C. S 80A-1 ET SEQ.)), OR THE DOMICILE OF AN INSTITUTIONAL
INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY
UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE OF 1986,  OR  ANY  OTHER
SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW; OR
  (III)  IF  (I) THE DOMICILE OF BENEFICIARIES, OWNERS OR MEMBERS IS NOT
REASONABLY ASCERTAINABLE UNDER ITEM (I) OF SUBCLAUSE  (B);  OR  (II)  NO
REASONABLE  ALTERNATIVE  SOURCING  METHOD  EXISTS  UNDER  ITEM  (II)  OF
SUBCLAUSE (B), GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  SHALL  BE
SOURCED TO THE DOMICILE OF THE INSTITUTIONAL INVESTOR OR THE DOMICILE OF
THE  SPONSOR  OF  A  PENSION PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR
POOL OF INVESTMENTS, INCLUDING A FUND, OTHER THAN AN INVESTMENT  COMPANY
UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.), TO
WHICH ASSET MANAGEMENT SERVICES ARE PROVIDED.
  (C)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT  OF
1940  (15  U.S.C.  S 80A-1 ET SEQ.), GROSS RECEIPTS WITH RESPECT TO SUCH
SERVICES SHALL BE SOURCED TO THE DOMICILE OF THE  SHAREHOLDERS  OF  SUCH
INVESTMENT  COMPANY  IN  ACCORDANCE  WITH  THE  FOLLOWING PROCEDURE: THE
PORTION OF THE GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  THAT  ARE
SOURCED  TO  THIS  STATE SHALL BE DETERMINED BY MULTIPLYING THE TOTAL OF
SUCH GROSS RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE
OF THE SUM OF THE BEGINNING OF YEAR AND  THE  END  OF  YEAR  BALANCE  OF
SHARES  OWNED  BY  THE INVESTMENT COMPANY SHAREHOLDERS DOMICILED IN THIS
STATE FOR THE INVESTMENT COMPANY'S TAXABLE YEAR FOR FEDERAL  INCOME  TAX
PURPOSES  AND  THE DENOMINATOR OF WHICH IS THE AVERAGE OF THE SUM OF THE
BEGINNING OF YEAR AND THE END OF YEAR BALANCE OF  SHARES  OWNED  BY  ALL
INVESTMENT  COMPANY  SHAREHOLDERS.  A SEPARATE COMPUTATION SHALL BE MADE
WITH RESPECT TO GROSS RECEIPTS FOR ASSET  MANAGEMENT  SERVICES  PROVIDED
DIRECTLY OR INDIRECTLY TO EACH INVESTMENT COMPANY.
  (D)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO A PERSON OTHER THAN THOSE PERSONS DESCRIBED IN  SUBCLAUSES
(A) THROUGH (C) OF THIS CLAUSE, TO THE DOMICILE OF SUCH PERSON.
  (C)  (A) FOR PURPOSES OF THIS SUBPARAGRAPH, "ADMINISTRATION SERVICES,"
IN EACH CASE WITH RESPECT TO INVESTMENTS, MEANS THE DIRECT  OR  INDIRECT
PROVISION OF (I) CLERICAL, (II) ACCOUNTING, (III) BOOKKEEPING, (IV) DATA
PROCESSING,  (V)  INTERNAL  AUDITING, (VI) LEGAL AND TAX SERVICES, (VII)
REGULATORY COMPLIANCE, OPERATIONS  AND  RELATED  SERVICES,  (VIII)  RISK
ANALYTICS,  (IX)  TRADE PROCESSING, CLEARING AND EXECUTION SERVICES, (X)
TRANSFER AGENCY, AND (XI) CUSTODIAL SERVICES.
  (B) "ASSET MANAGEMENT CORPORATION" MEANS A  CORPORATION  THAT  (I)  IS
PRINCIPALLY  ENGAGED  IN  THE  PERFORMANCE OF ASSET MANAGEMENT SERVICES;
(II) MAKES AN ELECTION FOR EACH TAXABLE YEAR TO BE TREATED AS  AN  ASSET
MANAGEMENT   CORPORATION  BY  FILING  THE  APPROPRIATE  FORM  OF  RETURN
PRESCRIBED BY THE COMMISSIONER TO MAKE SUCH ELECTION; AND (III)  IS  NOT
OTHERWISE  A REGISTERED SECURITIES OR COMMODITIES BROKER OR DEALER UNDER
CLAUSE (A) OF SUBPARAGRAPH NINE OF THIS PARAGRAPH.
  (C) FOR PURPOSES OF THIS SUBPARAGRAPH,  "GROSS  RECEIPTS"  SHALL  MEAN
GROSS  RECEIPTS  REPORTED  BY  THE  CORPORATION FOR ITS TAXABLE YEAR FOR
PURPOSES OF THE FEDERAL INCOME TAX.
  (D) FOR PURPOSES OF THIS SUBPARAGRAPH, "ASSET MANAGEMENT SERVICES"  IN
EACH  CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED TO,

A. 7086                             5

DIRECTLY  OR  INDIRECTLY  (I)  RENDERING  INVESTMENT  ADVICE,  INCLUDING
INVESTMENT  ANALYSIS,  (II)  MAKING  DETERMINATIONS AS TO WHEN SALES AND
PURCHASES ARE TO BE MADE, (III) SELLING OR  PURCHASING  OF  INVESTMENTS,
(IV)  RENDERING  ADMINISTRATION  SERVICES,  (V)  RENDERING  DISTRIBUTION
SERVICES, OR (VI) MANAGING INVESTMENTS PURSUANT TO CONTRACTS FOR SUB-AD-
VISORY SERVICES.
  (E) FOR PURPOSES OF THIS SUBPARAGRAPH, "DISTRIBUTION SERVICES" IN EACH
CASE WITH RESPECT TO INVESTMENTS,  INCLUDES,  BUT  IS  NOT  LIMITED  TO,
DIRECTLY OR INDIRECTLY (I) ADVERTISING, (II) SERVICING INVESTOR ACCOUNTS
(INCLUDING  REDEMPTIONS),  (III)  MARKETING  SHARES OR SELLING SHARES OF
CORPORATIONS OR BUSINESS TRUSTS REGISTERED AS INVESTMENT COMPANIES UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.), OR  (IV)
MARKETING  ASSET  MANAGEMENT  SERVICES (INCLUDING SELLING INTERESTS IN A
POOL OF INVESTMENTS, SUCH AS A FUND).
  (F) "DOMICILE", IN THE CASE OF AN INDIVIDUAL, SHALL HAVE  THE  MEANING
ASCRIBED  TO  IT  UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER; AN ESTATE OR
TRUST IS DOMICILED IN THE STATE IF IT IS A RESIDENT ESTATE OR  TRUST  AS
DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE
OF  THIS  CHAPTER;  A  BUSINESS  ENTITY IS DOMICILED IN THE STATE IF THE
LOCATION OF THE ACTUAL SEAT OF MANAGEMENT OR CONTROL IS IN THE STATE. IT
SHALL BE PRESUMED THAT THE DOMICILE OF A SHAREHOLDER,  WITH  RESPECT  TO
ANY  MONTH,  IS  HIS,  HER  OR ITS MAILING ADDRESS ON THE RECORDS OF THE
INVESTMENT COMPANY AS OF THE LAST DAY OF SUCH MONTH; OR IN THE CASE OF A
CORPORATION OR A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY  UNDER
SECTION  7701 OF THE INTERNAL REVENUE CODE OF 1986, OR ANY OTHER SIMILAR
ENTITY ORGANIZED UNDER FOREIGN LAW, ITS COMMERCIAL  DOMICILE;  PROVIDED,
HOWEVER,  DOMICILE  SHALL  BE  PRESUMED TO BE THE MAILING ADDRESS OF THE
BENEFICIARY OF A PENSION PLAN, OR THE OWNER OF AN ACCOUNT OR INTEREST IN
A POOL OF INVESTMENTS BASED ON  THE  RECORDS  OF  THE  SPONSOR  OF  SUCH
PENSION  PLAN, ACCOUNT OR POOL OF INVESTMENTS OR THE SHAREHOLDER'S MAIL-
ING ADDRESS ON THE RECORDS OF AN INVESTMENT COMPANY UNDER THE INVESTMENT
COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.) IF REASONABLY ASCERTAIN-
ABLE.
  (G) FOR PURPOSES OF THIS SUBPARAGRAPH, "SPONSOR" MEANS THE PERSON THAT
HAS CONTRACTED DIRECTLY WITH THE BENEFICIARIES  OF  A  PENSION  PLAN  OR
RETIREMENT  ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL OF
INVESTMENTS TO ADMINISTER AND MANAGE  THE  PENSION  PLAN  OR  RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S  4.  Subparagraphs  (H)  and  (I)  of paragraph 2 of subsection a of
section 1454 of the tax law, subparagraph (H) as relettered by section 2
of part AA of chapter 63 of the laws of 2000,  are  relettered  subpara-
graphs  (I)  and  (J),  and  a  new subparagraph (H) is added to read as
follows:
  (H) THE ENTIRE NET INCOME OF AN ASSET MANAGEMENT CORPORATION SHALL  BE
APPORTIONED  TO  THIS  STATE ON THE BASIS OF THE RATIO OF GROSS RECEIPTS
FROM ASSET MANAGEMENT SERVICES FROM SOURCES WITHIN THIS  STATE  FOR  THE
INCOME  YEAR  EXPRESSED  AS A PERCENTAGE OF ALL SUCH GROSS RECEIPTS FROM
ASSET MANAGEMENT SERVICES BOTH WITHIN AND  WITHOUT  THE  STATE  FOR  THE
INCOME YEAR. THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES
SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO  SUCH
SERVICES SHALL BE SOURCED TO THE STATE OF THE INDIVIDUAL'S DOMICILE.
  (II)  IN  THE  CASE  OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INSTITUTIONAL  INVESTOR  HOLDING  INVESTMENTS  FOR  THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF

A. 7086                             6

INVESTMENTS,  INCLUDING  A  FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE, OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER  FOREIGN  LAW,  GROSS  RECEIPTS
WITH  RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (I) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS  OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT  SERVICES  TO  A  PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER  SECTION 7701 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED, AND THE REGULATIONS THEREUNDER, OR ANY  OTHER  SIMILAR
ENTITY  ORGANIZED  UNDER  FOREIGN LAW THROUGH THE EXERCISE OF REASONABLE
DILIGENCE IN ASCERTAINING SUCH INFORMATION, GROSS RECEIPTS WITH  RESPECT
TO SUCH SERVICES SHALL BE SOURCED TO THE DOMICILE OF SUCH BENEFICIARIES,
OWNERS OR MEMBERS;
  (II) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS  IS  NOT AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING
ASSET MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR  POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE, OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH  THE  EXER-
CISE  OF  REASONABLE  DILIGENCE  IN  ASCERTAINING  SUCH INFORMATION, ANY
REASONABLE ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE  TO
THE  ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE OF
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES. BASED ON FACTS AND CIRCUM-
STANCES IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO DETER-
MINE THE SOURCE OF GROSS RECEIPTS FROM  ASSET  MANAGEMENT  SERVICES  MAY
TAKE  INTO  ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE FROM THE
UNITED STATES CENSUS BUREAU, THE DOMICILE OF THE SPONSOR  OF  A  PENSION
PLAN  OR  RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF INVESTMENTS (OTHER
THAN AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940  (15
U.S.C.  S  80A-1 ET SEQ.)), OR THE DOMICILE OF AN INSTITUTIONAL INVESTOR
ORGANIZED AS A PARTNERSHIP, S CORPORATION, OR DISREGARDED  ENTITY  UNDER
SECTION  7701  OF THE INTERNAL REVENUE CODE, OR ANY OTHER SIMILAR ENTITY
ORGANIZED UNDER FOREIGN LAW; OR
  (III) IF (A) THE DOMICILE OF BENEFICIARIES, OWNERS OR MEMBERS  IS  NOT
ASCERTAINED UNDER SUBCLAUSE (I) OF CLAUSE (II) OF THIS SUBPARAGRAPH OR,
  (B)  NO  REASONABLE ALTERNATIVE SOURCING METHOD EXISTS UNDER SUBCLAUSE
(II) OF CLAUSE (II) OF THIS SUBPARAGRAPH, GROSS RECEIPTS WITH RESPECT TO
SUCH SERVICES SHALL BE SOURCED TO  THE  DOMICILE  OF  THE  INSTITUTIONAL
INVESTOR  OR THE DOMICILE OF THE SPONSOR OF A PENSION PLAN OR RETIREMENT
ACCOUNT OR AN ACCOUNT OR POOL OF INVESTMENTS, INCLUDING  A  FUND  (OTHER
THAN  AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15
U.S.C. S 80A-1  ET  SEQ.)),  TO  WHICH  ASSET  MANAGEMENT  SERVICES  ARE
PROVIDED.
  (III)  IN  THE  CASE OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT  OF
1940  (15  U.S.C.  S 80A-1 ET SEQ.), GROSS RECEIPTS WITH RESPECT TO SUCH
SERVICES SHALL BE SOURCED TO THE DOMICILE OF THE  SHAREHOLDERS  OF  SUCH
INVESTMENT  COMPANY  IN  ACCORDANCE  WITH  THE  FOLLOWING PROCEDURE: THE

A. 7086                             7

PORTION OF THE GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  THAT  ARE
SOURCED  TO  THIS  STATE SHALL BE DETERMINED BY MULTIPLYING THE TOTAL OF
SUCH GROSS RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE
OF  THE  SUM  OF  THE  BEGINNING  OF YEAR AND THE END OF YEAR BALANCE OF
SHARES OWNED BY THE INVESTMENT COMPANY SHAREHOLDERS  DOMICILED  IN  THIS
STATE  FOR  THE INVESTMENT COMPANY'S TAXABLE YEAR FOR FEDERAL INCOME TAX
PURPOSES AND THE DENOMINATOR OF WHICH IS THE AVERAGE OF THE SUM  OF  THE
BEGINNING  OF  YEAR  AND  THE END OF YEAR BALANCE OF SHARES OWNED BY ALL
INVESTMENT COMPANY SHAREHOLDERS. A SEPARATE COMPUTATION  SHALL  BE  MADE
WITH  RESPECT  TO  GROSS RECEIPTS FOR ASSET MANAGEMENT SERVICES PROVIDED
DIRECTLY OR INDIRECTLY TO EACH INVESTMENT COMPANY.
  (IV) IN THE CASE OF ASSET MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY TO A PERSON OTHER THAN THOSE PERSONS DESCRIBED IN CLAUSES (I)
THROUGH (III) OF THIS SUBPARAGRAPH, TO THE DOMICILE OF SUCH PERSON.
  (V)(I)  FOR  PURPOSES OF THIS SUBPARAGRAPH, "ADMINISTRATION SERVICES",
IN EACH CASE WITH RESPECT TO INVESTMENTS, MEANS THE DIRECT  OR  INDIRECT
PROVISION  OF  (A)  CLERICAL,  (B) ACCOUNTING, (C) BOOKKEEPING, (D) DATA
PROCESSING, (E) INTERNAL AUDITING, (F) LEGAL AND TAX SERVICES, (G) REGU-
LATORY COMPLIANCE, OPERATIONS AND RELATED SERVICES, (H) RISK  ANALYTICS,
(I)  TRADE  PROCESSING,  CLEARING  AND  EXECUTION SERVICES, (J) TRANSFER
AGENCY, AND (K) CUSTODIAL SERVICES.
  (II) "ASSET MANAGEMENT CORPORATION" MEANS A CORPORATION  THAT  (A)  IS
PRINCIPALLY ENGAGED IN THE PERFORMANCE OF ASSET MANAGEMENT SERVICES; (B)
MAKES  AN  ELECTION  FOR  EACH  TAXABLE  YEAR  TO BE TREATED AS AN ASSET
MANAGEMENT  CORPORATION  BY  FILING  THE  APPROPRIATE  FORM  OF   RETURN
PRESCRIBED  BY  THE  COMMISSIONER  TO MAKE SUCH ELECTION; AND (C) IS NOT
OTHERWISE A REGISTERED SECURITIES OR COMMODITIES BROKER OR DEALER PURSU-
ANT TO SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (III) FOR PURPOSES OF THIS SUBPARAGRAPH, "GROSS RECEIPTS"  SHALL  MEAN
GROSS  RECEIPTS  REPORTED  BY  THE  CORPORATION FOR ITS TAXABLE YEAR FOR
PURPOSES OF THE FEDERAL INCOME TAX.
  (IV) FOR PURPOSES OF THIS SUBPARAGRAPH, "ASSET  MANAGEMENT  SERVICES",
IN  EACH  CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED
TO, DIRECTLY OR INDIRECTLY (A) RENDERING  INVESTMENT  ADVICE,  INCLUDING
INVESTMENT  ANALYSIS,  (B)  MAKING  DETERMINATIONS  AS TO WHEN SALES AND
PURCHASES ARE TO BE MADE, (C) SELLING OR PURCHASING OF INVESTMENTS,  (D)
RENDERING  ADMINISTRATION SERVICES, (E) RENDERING DISTRIBUTION SERVICES,
OR (F) MANAGING  INVESTMENTS  PURSUANT  TO  CONTRACTS  FOR  SUB-ADVISORY
SERVICES.
  (V)  FOR  PURPOSES  OF  THIS SUBPARAGRAPH, "DISTRIBUTION SERVICES", IN
EACH CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED  TO,
DIRECTLY OR INDIRECTLY, (A) ADVERTISING, (B) SERVICING INVESTOR ACCOUNTS
(INCLUDING  REDEMPTIONS),  (C)  MARKETING  SHARES  OR  SELLING SHARES OF
CORPORATIONS OR BUSINESS TRUSTS REGISTERED AS INVESTMENT COMPANIES UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.),  OR  (D)
MARKETING  ASSET  MANAGEMENT  SERVICES (INCLUDING SELLING INTERESTS IN A
POOL OF INVESTMENTS, SUCH AS A FUND).
  (VI) "DOMICILE", IN THE CASE OF AN INDIVIDUAL, SHALL HAVE THE  MEANING
ASCRIBED  TO  IT  UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER; AN ESTATE OR
TRUST IS DOMICILED IN THE STATE IF IT IS A RESIDENT ESTATE OR  TRUST  AS
DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE
OF  THIS  CHAPTER;  A  BUSINESS  ENTITY IS DOMICILED IN THE STATE IF THE
LOCATION OF THE ACTUAL SEAT OF MANAGEMENT OR CONTROL IS IN THE STATE. IT
SHALL BE PRESUMED THAT THE DOMICILE OF A SHAREHOLDER,  WITH  RESPECT  TO
ANY  MONTH,  IS  HIS,  HER  OR ITS MAILING ADDRESS ON THE RECORDS OF THE
INVESTMENT COMPANY AS OF THE LAST DAY OF SUCH MONTH; OR IN THE CASE OF A

A. 7086                             8

CORPORATION OR A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY  UNDER
SECTION  7701  OF THE INTERNAL REVENUE CODE, OR ANY OTHER SIMILAR ENTITY
ORGANIZED UNDER FOREIGN LAW, ITS COMMERCIAL DOMICILE; PROVIDED, HOWEVER,
DOMICILE  SHALL BE PRESUMED TO BE THE MAILING ADDRESS OF THE BENEFICIARY
OF A PENSION PLAN, OR THE OWNER OF AN ACCOUNT OR INTEREST IN A  POOL  OF
INVESTMENTS  BASED  ON  THE RECORDS OF THE SPONSOR OF SUCH PENSION PLAN,
ACCOUNT OR POOL OF INVESTMENTS OR THE SHAREHOLDER'S MAILING  ADDRESS  ON
THE RECORDS OF AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF
1940 (15 U.S.C. S 80A-1 ET SEQ.).
  (VII)  FOR  PURPOSES  OF THIS SUBPARAGRAPH, "SPONSOR" MEANS THE PERSON
THAT HAS CONTRACTED DIRECTLY WITH THE BENEFICIARIES OF A PENSION PLAN OR
RETIREMENT ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL  OF
INVESTMENTS  TO  ADMINISTER  AND  MANAGE  THE PENSION PLAN OR RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S 5. Paragraph 1-a of subsection b of section 1454 of the tax law,  as
amended  by  section  1  of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
  [1-a.] (1-A) Notwithstanding the provisions of paragraph one  of  this
subsection,  each  banking  corporation  described  in paragraph nine of
subsection (a) of section fourteen hundred fifty-two  of  this  article,
EXCEPT  FOR  A  BANKING  CORPORATION  THAT  SUBSTANTIALLY PROVIDES ASSET
MANAGEMENT SERVICES AS SUCH TERMS ARE DEFINED  IN  SUBPARAGRAPH  (H)  OF
PARAGRAPH  TWO  OF  SUBSECTION  (A)  OF THIS SECTION, subject to the tax
imposed by this article that substantially provides management, adminis-
trative or distribution services to an investment company, as such terms
are defined in subparagraph (G) of paragraph two of  subsection  (a)  of
this  section,  shall  determine  the  portion  of its entire net income
derived from business carried on within the state  by  multiplying  such
income by an income allocation percentage obtained as follows:
  S  6.  Paragraph  3 of subsection c of section 1454 of the tax law, as
added by chapter 161 of the laws of 2005, is amended to read as follows:
  (3) For taxable years beginning on or after January first,  two  thou-
sand  six,  each  banking  corporation  described  in  paragraph nine of
subsection (a) of section fourteen hundred fifty-two  of  this  article,
EXCEPT FOR A BANKING CORPORATION THAT IS AN ASSET MANAGEMENT CORPORATION
AS  DEFINED  IN  SUBPARAGRAPH  (H) OF PARAGRAPH TWO OF SUBSECTION (A) OF
THIS SECTION, subject to the tax imposed by this article  that  substan-
tially  provides  management, administrative or distribution services to
an investment company, as such terms are defined in subparagraph (G)  of
paragraph  two of subsection (a) of this section, AND, FOR TAXABLE YEARS
BEGINNING ON JANUARY FIRST, TWO THOUSAND NINE AND THEREAFTER, EACH ASSET
MANAGEMENT CORPORATION AS DEFINED IN SUBPARAGRAPH (H) OF  PARAGRAPH  TWO
OF  SUBSECTION  (A)  OF THIS SECTION, shall determine the portion of its
alternative entire net income derived from business  carried  on  within
the  state  by multiplying such income by the percentage ascertained for
the taxable year  under  paragraph  one-a  of  subsection  (b)  of  this
section,  except that in computing such percentage (A) for taxable years
beginning before January first, two  thousand  eight,  no  consideration
shall  be  given  to  the phrase "eighty percent of" in paragraph one of
subsection (a) of this section, (B) for taxable years  beginning  before
January first, two thousand eight, when an election has been made pursu-
ant  to  paragraph two of subsection (b) of this section (relating to an
international banking facility) the taxpayer shall  make  the  modifica-
tions  described  in such paragraph, and (C) for taxable years beginning
on or after January first, two thousand eight, when an election has been
made pursuant to paragraph two of subsection (b) of this section (relat-

A. 7086                             9

ing to an international banking facility) the taxpayer  shall  make  the
modifications described in clause (ii) of subparagraph (A) of such para-
graph.
  S 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.

2009-A7086A (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Laws Affected:: Amd §§209-b, 210 & 1454, Tax L; amd §§11-604 & 11-642, NYC Ad Cd

2009-A7086A (ACTIVE) - Summary

Establishes rules pertaining to computation of tax for receipts from services provided by asset management corporations.

2009-A7086A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A7086A

TITLE  OF BILL:  An act to amend the tax law and the administrative code
of the city of New York, in relation to establishing rules for  receipts
from services provided by asset management corporations

PURPOSE  OR  GENERAL  IDEA OF BILL: To update the tax law to provide for
the appropriate taxation of asset management corporations.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1 amends paragraph b of  subdi-
vision  2  of  section  209-B of the Tax Law to provide for metropolitan
transportation business tax surcharge of asset management corporations.

Section 2 of the bill amends clause B of subparagraph 2 of  paragraph  a
of  subdivision  3 of section 210 of the Tax Law to add asset management
services to the computation of tax.

Section 3 amends Section 210 of the Tax Law is amended by adding  a  new
subparagraph  6-a  to  subdivision  3 to provide rules for receipts from
services provided by asset management corporations.

Section 4 of the bill amends paragraph 2 of subsection a of Section 1454
of the Tax Law to add a new subparagraph H and re-letter current subpar-
agraphs H and I to provide for the franchise tax on banking corporations
to apply appropriately to asset management corporations.

Sections 5 and 6 amend Paragraphs 1-a and 3 of subsection b  of  section
1454  of  the Tax Law to apply the franchise tax on banking corporations
to asset management corporations for future taxable years.

Sections 7 amends clause B of paragraph 2 of subparagraph (a) of  subdi-
vision  three of section 11-604 of the New York City Administrative Code
to add asset management services to the computation  of  general  corpo-
ration tax.

Section  8  amends  subparagraph a of subdivision 3 of section 11-604 of
the New York City Administrative Code by adding a new paragraph  5-a  to
provide  rules  for  receipts from services provided by asset management
corporations.

Section 9 amends section 11-642 of the New York City Administrative Code
to add a new subparagraph H and re-letter current subparagraphs H and  I
to provide for the franchise tax on banking corporations to apply appro-
priately to asset management corporations.

Section  10  amends  section  11-642 of the New York City Administrative
Code by adding a new subdivision e to apply the franchise tax on banking
corporations to asset management corporations for future taxable years.

JUSTIFICATION:  This legislation amends the state and city  tax  law  to
update it to reflect the current state of the money management industry.
In 1988 the tax laws were amended to reflect the presence of mutual fund

managers and to afford them tax treatment that more accurately reflected
the  proper  allocation of their business in New York. When the 1988 law
was passed, its intention.was to make New York a more competitive  place
for these companies to grow and expand, especially since these companies
were  very  mobile.  Those reasons are just as true today. In the twenty
years since the enactment of these provisions, these mutual fund  manag-
ers  have  grown  to  manage more than just mutual funds. These managers
have become asset managers though, fundamentally, they perform the  same
services  in a similar fashion as before. Now, there are very few mutual
fund only managers. This bill seeks to reflect what has transpired  over
two  decades  in  a  business  that  the  legislature saw fit to provide
particular allocation rules for already. Other states, such as  Delaware
and  California, have already updated their tax treatment of these enti-
ties.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:

EFFECTIVE DATE: The act shall tax effect immediately and shall apply  to
taxable years beginning on or after January 1, 2009.

2009-A7086A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7086--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 20, 2009
                               ___________

Introduced  by  M. of A. BING -- read once and referred to the Committee
  on Ways and Means  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to establishing rules for receipts from services
  provided by asset management corporations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph 2 of paragraph (b) of subdivision 2 of section
209-b of the tax law, as amended by section 3 of part K of chapter 63 of
the laws of 2000, is amended to read as follows:
  (2) services performed within the metropolitan commuter transportation
district,  provided, however, that (i) in the case of a taxpayer engaged
in the business of publishing newspapers or periodicals, receipts  aris-
ing  from  sales of advertising contained in such newspapers and period-
icals shall be deemed to arise from services performed within the metro-
politan  commuter  transportation  district  to  the  extent  that  such
newspapers  and periodicals are delivered to points within the metropol-
itan commuter transportation district, (ii) receipts from an  investment
company  from  the  sale  of  management, administration or distribution
services to such investment  company  shall  be  deemed  to  arise  from
services  performed  within  the  metropolitan  commuter  transportation
district to the extent set forth in subparagraph six of paragraph (a) of
subdivision three of section two hundred ten  of  this  chapter  (except
that  references  in such subparagraph six to the state shall be deemed,
for purposes of application to this clause,  to  be  references  to  the
metropolitan  commuter  transportation  district),  (iii) in the case of
taxpayers principally engaged in the activity of air freight  forwarding
acting as principal and like indirect air carriage receipts arising from
such  activity  shall arise from services performed within the metropol-
itan commuter transportation district as follows: one hundred percent of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10388-05-9

A. 7086--A                          2

such receipts if both the  pickup  and  delivery  associated  with  such
receipts  are  made in the metropolitan commuter transportation district
and fifty percent of such receipts if  either  the  pickup  or  delivery
associated  with  such  receipts  is  made  in the metropolitan commuter
transportation district, [and] (iv) in the case of a taxpayer which is a
registered securities or commodities  broker  or  dealer,  the  receipts
specified  in subparagraph nine of paragraph (a) of subdivision three of
section two hundred ten of this article shall be deemed  to  arise  from
services  performed  within  the  metropolitan  commuter  transportation
district to the extent set forth in such subparagraph nine (except  that
references  in  such subparagraph nine to the state shall be deemed, for
purposes of the application of this clause,  to  be  references  to  the
metropolitan  commuter  transportation  district), AND (V) RECEIPTS FROM
SERVICES PROVIDED BY AN ASSET MANAGEMENT CORPORATION SHALL BE DEEMED  TO
ARISE FROM SERVICES PERFORMED WITHIN THE METROPOLITAN COMMUTER TRANSPOR-
TATION  DISTRICT  TO THE EXTENT SET FORTH IN SUBPARAGRAPH SIX-A OF PARA-
GRAPH (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THIS  CHAP-
TER  (EXCEPT  THAT  REFERENCES  IN  SUCH SUBPARAGRAPH SIX-A TO THE STATE
SHALL BE DEEMED, FOR PURPOSES OF  APPLICATION  TO  THIS  CLAUSE,  TO  BE
REFERENCES TO THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT),
  S 2. Clause (B) of subparagraph 2 of paragraph (a) of subdivision 3 of
section 210 of the tax law, as separately amended by section 1 of part K
and  section  13 of part Y of chapter 63 of the laws of 2000, is amended
to read as follows:
  (B) services performed within the state, provided, however,  that  (i)
in  the case of a taxpayer engaged in the business of publishing newspa-
pers  or  periodicals,  receipts  arising  from  sales  of   advertising
contained  in  such  newspapers and periodicals shall be deemed to arise
from services performed within the state to the extent that such newspa-
pers and periodicals are delivered to  points  within  the  state,  (ii)
receipts from an investment company arising from the sale of management,
administration or distribution services to such investment company shall
be  deemed  to  arise  from  services  performed within the state to the
extent set forth in subparagraph six of this  paragraph,  (iii)  in  the
case  of  taxpayers  principally  engaged in the activity of air freight
forwarding acting as principal and like indirect air  carriage  receipts
arising  from  such  activity shall arise from services performed within
the state as follows: one hundred percent of such receipts if  both  the
pickup and delivery associated with such receipts are made in this state
and  fifty  percent  of  such  receipts if either the pickup or delivery
associated with such receipts is made in this state [and], (iv)  in  the
case  of  a  taxpayer  which  is  a registered securities or commodities
broker or dealer, the receipts specified in subparagraph  nine  of  this
paragraph  shall  be  deemed to arise from services performed within the
state to the extent set forth in such subparagraph nine, [and (iv)]  (V)
in  the case of receipts arising from the transportation or transmission
of gas through pipes, the portion  of  such  receipts  which  constitute
receipts  from  services performed within the state shall be the product
of (I) the total of such receipts and (II) a fraction, the numerator  of
which  is  the  taxpayer's transportation units within the state and the
denominator of which is the taxpayer's transportation units  within  and
without  the  state[.  A]  PROVIDED  THAT FOR PURPOSES OF THIS SECTION A
transportation unit is the transportation of one cubic foot of gas  over
a  distance  of one mile, AND (VI) RECEIPTS FROM SERVICES PROVIDED BY AN
ASSET MANAGEMENT CORPORATION SHALL BE  DEEMED  TO  ARISE  FROM  SERVICES

A. 7086--A                          3

PERFORMED  WITHIN  THIS  STATE  TO  THE EXTENT SET FORTH IN SUBPARAGRAPH
SIX-A OF THIS PARAGRAPH,
  S  3.  Paragraph (a) of subdivision 3 of section 210 of the tax law is
amended by adding a new subparagraph 6-a to read as follows:
  (6-A) RULES FOR RECEIPTS FROM SERVICES PROVIDED  BY  ASSET  MANAGEMENT
CORPORATIONS.    (A)  FOR  PURPOSES  OF  SUBCLAUSE (VI) OF CLAUSE (B) OF
SUBPARAGRAPH TWO OF THIS PARAGRAPH, THE PORTION OF RECEIPTS RECEIVED  BY
AN  ASSET  MANAGEMENT  CORPORATION  ARISING  FROM THE PROVISION OF ASSET
MANAGEMENT SERVICES TO AN INDIVIDUAL, A REGULATED INVESTMENT COMPANY  AS
DEFINED IN SECTION 851 OF THE INTERNAL REVENUE CODE, OR AN INSTITUTIONAL
INVESTOR  HOLDING INVESTMENTS FOR THE BENEFIT OF OTHERS AS DETERMINED IN
ACCORDANCE WITH CLAUSE (B) OF THIS SUBPARAGRAPH SHALL BE DEEMED TO ARISE
FROM SERVICES PERFORMED WITHIN THE STATE, SUCH PORTION REFERRED TO HERE-
IN AS THE NEW YORK PORTION.
  (B) THE ENTIRE NET INCOME OF AN ASSET MANAGEMENT CORPORATION SHALL  BE
APPORTIONED  TO  THIS  STATE ON THE BASIS OF THE RATIO OF GROSS RECEIPTS
FROM ASSET MANAGEMENT SERVICES FROM SOURCES WITHIN THIS  STATE  FOR  THE
INCOME  YEAR  EXPRESSED  AS A PERCENTAGE OF ALL SUCH GROSS RECEIPTS FROM
ASSET MANAGEMENT SERVICES BOTH WITHIN AND  WITHOUT  THE  STATE  FOR  THE
INCOME YEAR. THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES
SHALL BE DETERMINED AS FOLLOWS:
  (A)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO  SUCH
SERVICES SHALL BE SOURCED TO THE STATE OF THE INDIVIDUAL'S DOMICILE.
  (B)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INSTITUTIONAL  INVESTOR  HOLDING  INVESTMENTS  FOR  THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS,  INCLUDING  A  FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OR
ANY  OTHER  SIMILAR  ENTITY  ORGANIZED UNDER FOREIGN LAW, GROSS RECEIPTS
WITH RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE  FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (I)  IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT  ACCOUNT  OR  POOL  OF
INVESTMENTS,  INCLUDING  A FUND, (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OF
1986,  OR  ANY  OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH
THE EXERCISE OF REASONABLE DILIGENCE IN ASCERTAINING  SUCH  INFORMATION,
GROSS  RECEIPTS  WITH  RESPECT  TO SUCH SERVICES SHALL BE SOURCED TO THE
DOMICILE OF SUCH BENEFICIARIES, OWNERS OR MEMBERS;
  (II) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS IS NOT AVAILABLE TO THE ASSET MANAGEMENT  CORPORATION  PROVIDING
ASSET  MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OF
1986,  OR  ANY  OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH
THE EXERCISE OF REASONABLE DILIGENCE IN ASCERTAINING  SUCH  INFORMATION,
ANY REASONABLE ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE
TO  THE ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE

A. 7086--A                          4

OF GROSS RECEIPTS WITH RESPECT TO SUCH  SERVICES.  BASED  ON  FACTS  AND
CIRCUMSTANCES  IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO
DETERMINE THE SOURCE OF GROSS RECEIPTS FROM  ASSET  MANAGEMENT  SERVICES
MAY  TAKE  INTO ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE FROM
THE UNITED STATES CENSUS BUREAU,  THE  DOMICILE  OF  THE  SPONSOR  OF  A
PENSION  PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF INVESTMENTS
(OTHER THAN AN INVESTMENT COMPANY UNDER THE INVESTMENT  COMPANY  ACT  OF
1940  (15  U.S.C. S 80A-1 ET SEQ.)), OR THE DOMICILE OF AN INSTITUTIONAL
INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY
UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE OF 1986,  OR  ANY  OTHER
SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW; OR
  (III)  IF  (I) THE DOMICILE OF BENEFICIARIES, OWNERS OR MEMBERS IS NOT
REASONABLY ASCERTAINABLE UNDER ITEM (I) OF SUBCLAUSE  (B);  OR  (II)  NO
REASONABLE  ALTERNATIVE  SOURCING  METHOD  EXISTS  UNDER  ITEM  (II)  OF
SUBCLAUSE (B), GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  SHALL  BE
SOURCED TO THE DOMICILE OF THE INSTITUTIONAL INVESTOR OR THE DOMICILE OF
THE  SPONSOR  OF  A  PENSION PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR
POOL OF INVESTMENTS, INCLUDING A FUND, OTHER THAN AN INVESTMENT  COMPANY
UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.), TO
WHICH ASSET MANAGEMENT SERVICES ARE PROVIDED.
  (C)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT  OF
1940  (15  U.S.C.  S 80A-1 ET SEQ.), GROSS RECEIPTS WITH RESPECT TO SUCH
SERVICES SHALL BE SOURCED TO THE DOMICILE OF THE  SHAREHOLDERS  OF  SUCH
INVESTMENT  COMPANY  IN  ACCORDANCE  WITH  THE  FOLLOWING PROCEDURE: THE
PORTION OF THE GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  THAT  ARE
SOURCED  TO  THIS  STATE SHALL BE DETERMINED BY MULTIPLYING THE TOTAL OF
SUCH GROSS RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE
OF THE SUM OF THE BEGINNING OF YEAR AND  THE  END  OF  YEAR  BALANCE  OF
SHARES  OWNED  BY  THE INVESTMENT COMPANY SHAREHOLDERS DOMICILED IN THIS
STATE FOR THE INVESTMENT COMPANY'S TAXABLE YEAR FOR FEDERAL  INCOME  TAX
PURPOSES  AND  THE DENOMINATOR OF WHICH IS THE AVERAGE OF THE SUM OF THE
BEGINNING OF YEAR AND THE END OF YEAR BALANCE OF  SHARES  OWNED  BY  ALL
INVESTMENT  COMPANY  SHAREHOLDERS.  A SEPARATE COMPUTATION SHALL BE MADE
WITH RESPECT TO GROSS RECEIPTS FOR ASSET  MANAGEMENT  SERVICES  PROVIDED
DIRECTLY OR INDIRECTLY TO EACH INVESTMENT COMPANY.
  (D)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO A PERSON OTHER THAN THOSE PERSONS DESCRIBED IN  SUBCLAUSES
(A) THROUGH (C) OF THIS CLAUSE, TO THE DOMICILE OF SUCH PERSON.
  (C)  (A) FOR PURPOSES OF THIS SUBPARAGRAPH, "ADMINISTRATION SERVICES,"
IN EACH CASE WITH RESPECT TO INVESTMENTS, MEANS THE DIRECT  OR  INDIRECT
PROVISION OF (I) CLERICAL, (II) ACCOUNTING, (III) BOOKKEEPING, (IV) DATA
PROCESSING,  (V)  INTERNAL  AUDITING, (VI) LEGAL AND TAX SERVICES, (VII)
REGULATORY COMPLIANCE, OPERATIONS  AND  RELATED  SERVICES,  (VIII)  RISK
ANALYTICS,  (IX)  TRADE PROCESSING, CLEARING AND EXECUTION SERVICES, (X)
TRANSFER AGENCY, AND (XI) CUSTODIAL SERVICES.
  (B) "ASSET MANAGEMENT CORPORATION" MEANS A CORPORATION (DETERMINED  ON
A  SEPARATE OR COMBINED FILING BASIS) (I) THAT IS PRINCIPALLY ENGAGED IN
THE PERFORMANCE  OF  ASSET  MANAGEMENT  SERVICES;  (II)  THAT  MAKES  AN
ELECTION  FOR  EACH  TAXABLE  YEAR  TO BE TREATED AS AN ASSET MANAGEMENT
CORPORATION BY FILING THE APPROPRIATE FORM OF RETURN PRESCRIBED  BY  THE
COMMISSIONER  TO MAKE SUCH ELECTION; (III) IS NOT OTHERWISE A REGISTERED
SECURITIES OR COMMODITIES BROKER OR DEALER UNDER CLAUSE (A) OF  SUBPARA-
GRAPH  NINE  OF  THIS  PARAGRAPH; (IV) THAT PROVIDES INVESTMENT ADVISORY
SERVICES TO CUSTOMERS; (V) THAT PROVIDES  RISK  MANAGEMENT  SERVICES  TO
CUSTOMERS  BASED  ON  PROPRIETARILY-DEVELOPED  SYSTEMS;  AND  (VI)  THAT

A. 7086--A                          5

MANAGES ASSETS ON BEHALF OF INSTITUTIONS AND RETAIL CLIENTS IN THE AREAS
OF FIXED INCOME, CASH  MANAGEMENT,  EQUITIES,  ALTERNATIVE  INVESTMENTS,
SEPARATE ACCOUNTS, AND MUTUAL FUNDS.
  (C)  FOR  PURPOSES  OF  THIS SUBPARAGRAPH, "GROSS RECEIPTS" SHALL MEAN
GROSS RECEIPTS REPORTED BY THE CORPORATION  FOR  ITS  TAXABLE  YEAR  FOR
PURPOSES OF THE FEDERAL INCOME TAX.
  (D)  FOR PURPOSES OF THIS SUBPARAGRAPH, "ASSET MANAGEMENT SERVICES" IN
EACH CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED  TO,
DIRECTLY  OR  INDIRECTLY  (I)  RENDERING  INVESTMENT  ADVICE,  INCLUDING
INVESTMENT ANALYSIS, (II) MAKING DETERMINATIONS AS  TO  WHEN  SALES  AND
PURCHASES  ARE  TO  BE MADE, (III) SELLING OR PURCHASING OF INVESTMENTS,
(IV)  RENDERING  ADMINISTRATION  SERVICES,  (V)  RENDERING  DISTRIBUTION
SERVICES, OR (VI) MANAGING INVESTMENTS PURSUANT TO CONTRACTS FOR SUB-AD-
VISORY SERVICES.
  (E) FOR PURPOSES OF THIS SUBPARAGRAPH, "DISTRIBUTION SERVICES" IN EACH
CASE  WITH  RESPECT  TO  INVESTMENTS,  INCLUDES,  BUT IS NOT LIMITED TO,
DIRECTLY OR INDIRECTLY (I) ADVERTISING, (II) SERVICING INVESTOR ACCOUNTS
(INCLUDING REDEMPTIONS), (III) MARKETING SHARES  OR  SELLING  SHARES  OF
CORPORATIONS OR BUSINESS TRUSTS REGISTERED AS INVESTMENT COMPANIES UNDER
THE  INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.), OR (IV)
MARKETING ASSET MANAGEMENT SERVICES (INCLUDING SELLING  INTERESTS  IN  A
POOL OF INVESTMENTS, SUCH AS A FUND).
  (F)  "DOMICILE",  IN THE CASE OF AN INDIVIDUAL, SHALL HAVE THE MEANING
ASCRIBED TO IT UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER;  AN  ESTATE  OR
TRUST  IS  DOMICILED IN THE STATE IF IT IS A RESIDENT ESTATE OR TRUST AS
DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE
OF THIS CHAPTER; A BUSINESS ENTITY IS DOMICILED  IN  THE  STATE  IF  THE
LOCATION OF THE ACTUAL SEAT OF MANAGEMENT OR CONTROL IS IN THE STATE. IT
SHALL  BE  PRESUMED  THAT THE DOMICILE OF A SHAREHOLDER, WITH RESPECT TO
ANY MONTH, IS HIS, HER OR ITS MAILING ADDRESS  ON  THE  RECORDS  OF  THE
INVESTMENT COMPANY AS OF THE LAST DAY OF SUCH MONTH; OR IN THE CASE OF A
CORPORATION  OR A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY UNDER
SECTION 7701 OF THE INTERNAL REVENUE CODE OF 1986, OR ANY OTHER  SIMILAR
ENTITY  ORGANIZED  UNDER FOREIGN LAW, ITS COMMERCIAL DOMICILE; PROVIDED,
HOWEVER, DOMICILE SHALL BE PRESUMED TO BE THE  MAILING  ADDRESS  OF  THE
BENEFICIARY OF A PENSION PLAN, OR THE OWNER OF AN ACCOUNT OR INTEREST IN
A  POOL  OF  INVESTMENTS  BASED  ON  THE  RECORDS OF THE SPONSOR OF SUCH
PENSION PLAN, ACCOUNT OR POOL OF INVESTMENTS OR THE SHAREHOLDER'S  MAIL-
ING ADDRESS ON THE RECORDS OF AN INVESTMENT COMPANY UNDER THE INVESTMENT
COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.) IF REASONABLY ASCERTAIN-
ABLE.
  (G) FOR PURPOSES OF THIS SUBPARAGRAPH, "SPONSOR" MEANS THE PERSON THAT
HAS  CONTRACTED  DIRECTLY  WITH  THE  BENEFICIARIES OF A PENSION PLAN OR
RETIREMENT ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL  OF
INVESTMENTS  TO  ADMINISTER  AND  MANAGE  THE PENSION PLAN OR RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S 4. Subparagraphs (H) and (I) of paragraph 2  of  subsection  (a)  of
section 1454 of the tax law, subparagraph (H) as relettered by section 2
of  part  AA  of chapter 63 of the laws of 2000, are relettered subpara-
graphs (I) and (J) and a new  subparagraph  (H)  is  added  to  read  as
follows:
  (H)  THE ENTIRE NET INCOME OF AN ASSET MANAGEMENT CORPORATION SHALL BE
APPORTIONED TO THIS STATE ON THE BASIS OF THE RATIO  OF  GROSS  RECEIPTS
FROM  ASSET  MANAGEMENT  SERVICES FROM SOURCES WITHIN THIS STATE FOR THE
INCOME YEAR EXPRESSED AS A PERCENTAGE OF ALL SUCH  GROSS  RECEIPTS  FROM
ASSET  MANAGEMENT  SERVICES  BOTH  WITHIN  AND WITHOUT THE STATE FOR THE

A. 7086--A                          6

INCOME YEAR. THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES
SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO  SUCH
SERVICES SHALL BE SOURCED TO THE STATE OF THE INDIVIDUAL'S DOMICILE.
  (II)  IN  THE  CASE  OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INSTITUTIONAL  INVESTOR  HOLDING  INVESTMENTS  FOR  THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS,  INCLUDING  A  FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL REVENUE  CODE,  OR
ANY  OTHER  SIMILAR  ENTITY  ORGANIZED UNDER FOREIGN LAW, GROSS RECEIPTS
WITH RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE  FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (I)  IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT  ACCOUNT  OR  POOL  OF
INVESTMENTS,  INCLUDING  A  FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OF
1986,  AS  AMENDED, AND THE REGULATIONS THEREUNDER, OR ANY OTHER SIMILAR
ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH THE  EXERCISE  OF  REASONABLE
DILIGENCE  IN ASCERTAINING SUCH INFORMATION, GROSS RECEIPTS WITH RESPECT
TO SUCH SERVICES SHALL BE SOURCED TO THE DOMICILE OF SUCH BENEFICIARIES,
OWNERS OR MEMBERS;
  (II) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS IS NOT AVAILABLE TO THE ASSET MANAGEMENT  CORPORATION  PROVIDING
ASSET  MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL REVENUE  CODE,  OR
ANY  OTHER  SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH THE EXER-
CISE OF REASONABLE  DILIGENCE  IN  ASCERTAINING  SUCH  INFORMATION,  ANY
REASONABLE  ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE TO
THE ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE  OF
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES. BASED ON FACTS AND CIRCUM-
STANCES IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO DETER-
MINE  THE  SOURCE  OF  GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES MAY
TAKE INTO ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE  FROM  THE
UNITED  STATES  CENSUS  BUREAU, THE DOMICILE OF THE SPONSOR OF A PENSION
PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF  INVESTMENTS  (OTHER
THAN  AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15
U.S.C. S 80A-1 ET SEQ.)), OR THE DOMICILE OF AN  INSTITUTIONAL  INVESTOR
ORGANIZED  AS  A PARTNERSHIP, S CORPORATION, OR DISREGARDED ENTITY UNDER
SECTION 7701 OF THE INTERNAL REVENUE CODE, OR ANY OTHER  SIMILAR  ENTITY
ORGANIZED UNDER FOREIGN LAW; OR
  (III)  IF  (A) THE DOMICILE OF BENEFICIARIES, OWNERS OR MEMBERS IS NOT
ASCERTAINED UNDER SUBCLAUSE (I) OF THIS CLAUSE OR,
  (B) NO REASONABLE ALTERNATIVE SOURCING METHOD EXISTS  UNDER  SUBCLAUSE
(II) OF CLAUSE (II) OF THIS SUBPARAGRAPH, GROSS RECEIPTS WITH RESPECT TO
SUCH  SERVICES  SHALL  BE  SOURCED  TO THE DOMICILE OF THE INSTITUTIONAL
INVESTOR OR THE DOMICILE OF THE SPONSOR OF A PENSION PLAN OR  RETIREMENT
ACCOUNT  OR  AN  ACCOUNT OR POOL OF INVESTMENTS, INCLUDING A FUND (OTHER

A. 7086--A                          7

THAN AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940  (15
U.S.C.  S  80A-1  ET  SEQ.)),  TO  WHICH  ASSET  MANAGEMENT SERVICES ARE
PROVIDED.
  (III)  IN  THE  CASE OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT  OF
1940  (15  U.S.C.  S 80A-1 ET SEQ.), GROSS RECEIPTS WITH RESPECT TO SUCH
SERVICES SHALL BE SOURCED TO THE DOMICILE OF THE  SHAREHOLDERS  OF  SUCH
INVESTMENT  COMPANY  IN  ACCORDANCE  WITH  THE  FOLLOWING PROCEDURE: THE
PORTION OF THE GROSS RECEIPTS WITH RESPECT TO  SUCH  SERVICES  THAT  ARE
SOURCED  TO  THIS  STATE SHALL BE DETERMINED BY MULTIPLYING THE TOTAL OF
SUCH GROSS RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE
OF THE SUM OF THE BEGINNING OF YEAR AND  THE  END  OF  YEAR  BALANCE  OF
SHARES  OWNED  BY  THE INVESTMENT COMPANY SHAREHOLDERS DOMICILED IN THIS
STATE FOR THE INVESTMENT COMPANY'S TAXABLE YEAR FOR FEDERAL  INCOME  TAX
PURPOSES  AND  THE DENOMINATOR OF WHICH IS THE AVERAGE OF THE SUM OF THE
BEGINNING OF YEAR AND THE END OF YEAR BALANCE OF  SHARES  OWNED  BY  ALL
INVESTMENT  COMPANY  SHAREHOLDERS.  A SEPARATE COMPUTATION SHALL BE MADE
WITH RESPECT TO GROSS RECEIPTS FOR ASSET  MANAGEMENT  SERVICES  PROVIDED
DIRECTLY OR INDIRECTLY TO EACH INVESTMENT COMPANY.
  (IV)  IN  THE  CASE  OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO A PERSON OTHER THAN THOSE PERSONS DESCRIBED IN CLAUSES (I)
THROUGH (III) OF THIS SUBPARAGRAPH, TO THE DOMICILE OF SUCH PERSON.
  (V)(I) FOR PURPOSES OF THIS SUBPARAGRAPH,  "ADMINISTRATION  SERVICES",
IN  EACH  CASE WITH RESPECT TO INVESTMENTS, MEANS THE DIRECT OR INDIRECT
PROVISION OF (A) CLERICAL, (B) ACCOUNTING,  (C)  BOOKKEEPING,  (D)  DATA
PROCESSING, (E) INTERNAL AUDITING, (F) LEGAL AND TAX SERVICES, (G) REGU-
LATORY  COMPLIANCE, OPERATIONS AND RELATED SERVICES, (H) RISK ANALYTICS,
(I) TRADE PROCESSING, CLEARING  AND  EXECUTION  SERVICES,  (J)  TRANSFER
AGENCY, AND (K) CUSTODIAL SERVICES.
  (II) "ASSET MANAGEMENT CORPORATION" MEANS A CORPORATION (DETERMINED ON
A  SEPARATE OR COMBINED FILING BASIS) (A) THAT IS PRINCIPALLY ENGAGED IN
THE PERFORMANCE OF ASSET MANAGEMENT SERVICES; (B) THAT MAKES AN ELECTION
FOR EACH TAXABLE YEAR TO BE TREATED AS AN ASSET  MANAGEMENT  CORPORATION
BY  FILING THE APPROPRIATE FORM OF RETURN PRESCRIBED BY THE COMMISSIONER
TO MAKE SUCH ELECTION; (C) IS NOT OTHERWISE A REGISTERED  SECURITIES  OR
COMMODITIES BROKER OR DEALER PURSUANT TO SECTION TWO HUNDRED TEN OF THIS
CHAPTER;  (D)  THAT  PROVIDES INVESTMENT ADVISORY SERVICES TO CUSTOMERS;
(E) THAT  PROVIDES  RISK  MANAGEMENT  SERVICES  TO  CUSTOMERS  BASED  ON
PROPRIETARILY-DEVELOPED  SYSTEMS;  AND (F) THAT MANAGES ASSETS ON BEHALF
OF INSTITUTIONS AND RETAIL CLIENTS IN THE AREAS OF  FIXED  INCOME,  CASH
MANAGEMENT,  EQUITIES,  ALTERNATIVE  INVESTMENTS, SEPARATE ACCOUNTS, AND
MUTUAL FUNDS.
  (III) FOR PURPOSES OF THIS SUBPARAGRAPH, "GROSS RECEIPTS"  SHALL  MEAN
GROSS  RECEIPTS  REPORTED  BY  THE  CORPORATION FOR ITS TAXABLE YEAR FOR
PURPOSES OF THE FEDERAL INCOME TAX.
  (IV) FOR PURPOSES OF THIS SUBPARAGRAPH, "ASSET  MANAGEMENT  SERVICES",
IN  EACH  CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED
TO, DIRECTLY OR INDIRECTLY (A) RENDERING  INVESTMENT  ADVICE,  INCLUDING
INVESTMENT  ANALYSIS,  (B)  MAKING  DETERMINATIONS  AS TO WHEN SALES AND
PURCHASES ARE TO BE MADE, (C) SELLING OR PURCHASING OF INVESTMENTS,  (D)
RENDERING  ADMINISTRATION SERVICES, (E) RENDERING DISTRIBUTION SERVICES,
OR (F) MANAGING  INVESTMENTS  PURSUANT  TO  CONTRACTS  FOR  SUB-ADVISORY
SERVICES.
  (V)  FOR  PURPOSES  OF  THIS SUBPARAGRAPH, "DISTRIBUTION SERVICES", IN
EACH CASE WITH RESPECT TO INVESTMENTS, INCLUDES, BUT IS NOT LIMITED  TO,
DIRECTLY OR INDIRECTLY, (A) ADVERTISING, (B) SERVICING INVESTOR ACCOUNTS

A. 7086--A                          8

(INCLUDING  REDEMPTIONS),  (C)  MARKETING  SHARES  OR  SELLING SHARES OF
CORPORATIONS OR BUSINESS TRUSTS REGISTERED AS INVESTMENT COMPANIES UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.),  OR  (D)
MARKETING  ASSET  MANAGEMENT  SERVICES (INCLUDING SELLING INTERESTS IN A
POOL OF INVESTMENTS, SUCH AS A FUND).
  (VI) "DOMICILE", IN THE CASE OF AN INDIVIDUAL, SHALL HAVE THE  MEANING
ASCRIBED  TO  IT  UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER; AN ESTATE OR
TRUST IS DOMICILED IN THE STATE IF IT IS A RESIDENT ESTATE OR  TRUST  AS
DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE
OF  THIS  CHAPTER;  A  BUSINESS  ENTITY IS DOMICILED IN THE STATE IF THE
LOCATION OF THE ACTUAL SEAT OF MANAGEMENT OR CONTROL IS IN THE STATE. IT
SHALL BE PRESUMED THAT THE DOMICILE OF A SHAREHOLDER,  WITH  RESPECT  TO
ANY  MONTH,  IS  HIS,  HER  OR ITS MAILING ADDRESS ON THE RECORDS OF THE
INVESTMENT COMPANY AS OF THE LAST DAY OF SUCH MONTH; OR IN THE CASE OF A
CORPORATION OR A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY  UNDER
SECTION  7701  OF THE INTERNAL REVENUE CODE, OR ANY OTHER SIMILAR ENTITY
ORGANIZED UNDER FOREIGN LAW, ITS COMMERCIAL DOMICILE; PROVIDED, HOWEVER,
DOMICILE SHALL BE PRESUMED TO BE THE MAILING ADDRESS OF THE  BENEFICIARY
OF  A  PENSION PLAN, OR THE OWNER OF AN ACCOUNT OR INTEREST IN A POOL OF
INVESTMENTS BASED ON THE RECORDS OF THE SPONSOR OF  SUCH  PENSION  PLAN,
ACCOUNT  OR  POOL OF INVESTMENTS OR THE SHAREHOLDER'S MAILING ADDRESS ON
THE RECORDS OF AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF
1940 (15 U.S.C. S 80A-1 ET SEQ.).
  (VII) FOR PURPOSES OF THIS SUBPARAGRAPH, "SPONSOR"  MEANS  THE  PERSON
THAT HAS CONTRACTED DIRECTLY WITH THE BENEFICIARIES OF A PENSION PLAN OR
RETIREMENT  ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL OF
INVESTMENTS TO ADMINISTER AND MANAGE  THE  PENSION  PLAN  OR  RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S  5.  Paragraph 1-a of subsection (b) of section 1454 of the tax law,
as amended by section 1 of part A of chapter 63 of the laws of 2005,  is
amended to read as follows:
  [1-a.]  (1-A)  Notwithstanding the provisions of paragraph one of this
subsection, each banking corporation  described  in  paragraph  nine  of
subsection  (a)  of  section fourteen hundred fifty-two of this article,
EXCEPT FOR A  BANKING  CORPORATION  THAT  SUBSTANTIALLY  PROVIDES  ASSET
MANAGEMENT  SERVICES  AS  SUCH  TERMS ARE DEFINED IN SUBPARAGRAPH (H) OF
PARAGRAPH TWO OF SUBSECTION (A) OF THIS  SECTION,  subject  to  the  tax
imposed by this article that substantially provides management, adminis-
trative or distribution services to an investment company, as such terms
are  defined  in  subparagraph (G) of paragraph two of subsection (a) of
this section, shall determine the  portion  of  its  entire  net  income
derived  from  business  carried on within the state by multiplying such
income by an income allocation percentage obtained as follows:
  S 6. Paragraph 3 of subsection (c) of section 1454 of the tax law,  as
added by chapter 161 of the laws of 2005, is amended to read as follows:
  (3)  For  taxable years beginning on or after January first, two thou-
sand six, each  banking  corporation  described  in  paragraph  nine  of
subsection  (a)  of  section fourteen hundred fifty-two of this article,
EXCEPT FOR A BANKING CORPORATION, PROVIDED IN SUBSECTION (A) OF  SECTION
FOURTEEN  HUNDRED FIFTY-TWO OF THIS ARTICLE, THAT IS AN ASSET MANAGEMENT
CORPORATION  AS  DEFINED  IN  SUBPARAGRAPH  (H)  OF  PARAGRAPH  TWO   OF
SUBSECTION (A) OF THIS SECTION, subject to the tax imposed by this arti-
cle  that  substantially provides management, administrative or distrib-
ution services to an investment company, as such terms  are  defined  in
subparagraph  (G)  of  paragraph  two of subsection (a) of this section,
AND, FOR TAXABLE YEARS BEGINNING ON JANUARY FIRST, TWO THOUSAND NINE AND

A. 7086--A                          9

THEREAFTER, EACH ASSET MANAGEMENT CORPORATION AS DEFINED IN SUBPARAGRAPH
(H) OF PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION, shall  determine
the  portion  of its alternative entire net income derived from business
carried on within the state by multiplying such income by the percentage
ascertained for the taxable year under paragraph one-a of subsection (b)
of  this section, except that in computing such percentage (A) for taxa-
ble years beginning before January first, two thousand eight, no consid-
eration shall be given to the phrase "eighty percent  of"  in  paragraph
one  of  subsection (a) of this section, (B) for taxable years beginning
before January first, two thousand eight, when an election has been made
pursuant to paragraph two of subsection (b) of this section (relating to
an international banking facility) the taxpayer shall make the modifica-
tions described in such paragraph, and (C) for taxable  years  beginning
on or after January first, two thousand eight, when an election has been
made pursuant to paragraph two of subsection (b) of this section (relat-
ing  to  an  international banking facility) the taxpayer shall make the
modifications described in clause (ii) of subparagraph (A) of such para-
graph.
  S 7. Clause (B) of subparagraph 2 of paragraph (a) of subdivision 3 of
section 11-604 of the administrative code of the city of  New  York,  as
amended by chapter 513 of the laws of 2002, is amended and a new subpar-
agraph 5-a is added to read as follows:
  (B) services performed within the city, provided, however, that (i) in
the  case of a taxpayer engaged in the business of publishing newspapers
or periodicals, receipts arising from sales of advertising contained  in
such  newspapers  and periodicals shall be deemed to arise from services
performed within the city to the extent that such newspapers and period-
icals are delivered to points within the city,  (ii)  receipts  received
from an investment company arising from the sale of management, adminis-
tration  or  distribution  services  to such investment company shall be
deemed to arise from services performed within the city  to  the  extent
set  forth  in  subparagraph five of this paragraph, (iii) RECEIPTS FROM
SERVICES PROVIDED BY AN ASSET MANAGEMENT CORPORATION SHALL BE DEEMED  TO
ARISE  FROM  SERVICES PERFORMED WITHIN THIS CITY TO THE EXTENT SET FORTH
IN SUBPARAGRAPH FIVE-A OF THIS PARAGRAPH, (IV) in the case of  taxpayers
principally  engaged in the activity of air freight forwarding acting as
principal and like indirect air carriage,  receipts  arising  from  such
activity  shall  be  deemed  to arise from services performed within the
city as follows: one hundred percent of such receipts if both the pickup
and delivery associated with such receipts are  made  in  the  city  and
fifty  percent of such receipts if either the pickup or delivery associ-
ated with such receipts is made in the city, and [(iv)] (V) for  taxable
years beginning on or after January first, two thousand two, in the case
of  a taxpayer engaged in the business of publishing newspapers or peri-
odicals, or broadcasting radio or television programs,  whether  through
the  public  airwaves  or  by cable, direct or indirect satellite trans-
mission, or any other means of transmission, receipts arising from sales
of subscriptions, advertising or broadcasting shall be deemed  to  arise
from  services  performed  within  the  city  to  the extent provided in
subparagraph nine of this paragraph,
  (5-A) RULES FOR RECEIPTS FROM SERVICES PROVIDED  BY  ASSET  MANAGEMENT
CORPORATIONS.  (A)  FOR  PURPOSES  OF  SUBCLAUSE  (III) OF CLAUSE (B) OF
SUBPARAGRAPH TWO OF THIS PARAGRAPH, THE PORTION OF RECEIPTS RECEIVED  BY
AN  ASSET  MANAGEMENT  CORPORATION  ARISING  FROM THE PROVISION OF ASSET
MANAGEMENT SERVICES TO AN INDIVIDUAL, A REGULATED INVESTMENT COMPANY, AS
DEFINED IN SECTION 851 OF THE INTERNAL REVENUE CODE, OR AN INSTITUTIONAL

A. 7086--A                         10

INVESTOR HOLDING INVESTMENTS FOR THE BENEFIT OF OTHERS AS DETERMINED  IN
ACCORDANCE WITH CLAUSE (B) OF THIS SUBPARAGRAPH SHALL BE DEEMED TO ARISE
FROM SERVICES PERFORMED WITHIN THE CITY (SUCH PORTION REFERRED TO HEREIN
AS THE NEW YORK CITY PORTION).
  (B) THE NEW YORK CITY PORTION SHALL BE APPORTIONED ON THE BASIS OF THE
RATIO  OF  GROSS  RECEIPTS  FROM  ASSET MANAGEMENT SERVICES FROM SOURCES
WITHIN THE CITY FOR THE INCOME YEAR EXPRESSED AS  A  PERCENTAGE  OF  ALL
SUCH GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES BOTH WITHIN AND WITH-
OUT THE CITY FOR THE INCOME YEAR.
  (C)  THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES SHALL
BE DETERMINED AS FOLLOWS:
  (I) IN THE CASE OF ASSET  MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO SUCH
SERVICES SHALL BE SOURCED TO THE LOCATION OF THE INDIVIDUAL'S DOMICILE.
  (II) IN THE CASE OF ASSET MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INSTITUTIONAL  INVESTOR  HOLDING INVESTMENTS FOR THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE, OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER  FOREIGN  LAW,  GROSS  RECEIPTS
WITH  RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (I) IF INFORMATION REGARDING THE DOMICILE OF BENEFICIARIES, OWNERS  OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT  SERVICES  TO  A  PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER  SECTION 7701 OF THE INTERNAL REVENUE CODE OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH  THE  EXER-
CISE  OF  REASONABLE  DILIGENCE  IN ASCERTAINING SUCH INFORMATION, GROSS
RECEIPTS WITH RESPECT TO SUCH SERVICES SHALL BE SOURCED TO THE  DOMICILE
OF SUCH BENEFICIARIES, OWNERS OR MEMBERS;
  (II)  IF  INFORMATION  REGARDING  DOMICILE OF BENEFICIARIES, OWNERS OR
MEMBERS IS NOT AVAILABLE TO THE ASSET MANAGEMENT  CORPORATION  PROVIDING
ASSET  MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL  REVENUE  CODE  OR
ANY  OTHER  SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH THE EXER-
CISE OF REASONABLE  DILIGENCE  IN  ASCERTAINING  SUCH  INFORMATION,  ANY
REASONABLE  ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE TO
THE ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE  OF
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES. BASED ON FACTS AND CIRCUM-
STANCES IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO DETER-
MINE  THE  SOURCE  OF  GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES MAY
TAKE INTO ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE  FROM  THE
UNITED  STATES  CENSUS  BUREAU, THE DOMICILE OF THE SPONSOR OF A PENSION
PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF  INVESTMENTS  (OTHER
THAN  AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15
U.S.C. S 80A-1 ET SEQ.)) OR THE DOMICILE OF  AN  INSTITUTIONAL  INVESTOR
ORGANIZED  AS  A  PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY UNDER

A. 7086--A                         11

SECTION 7701 OF THE INTERNAL REVENUE CODE OR ANY  OTHER  SIMILAR  ENTITY
ORGANIZED UNDER FOREIGN LAW OR,
  (III) IF:
  1.  THE DOMICILE OF BENEFICIARIES, OWNERS OR MEMBERS IS NOT REASONABLY
ASCERTAINED ASCERTAINABLE UNDER THIS CLAUSE; OR
  2. NO REASONABLE ALTERNATIVE SOURCING METHOD EXISTS UNDER THIS CLAUSE,
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES SHALL  BE  SOURCED  TO  THE
DOMICILE OF THE INSTITUTIONAL INVESTOR OR THE DOMICILE OF THE SPONSOR OF
A  PENSION  PLAN  OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF INVEST-
MENTS, INCLUDING A FUND (OTHER THAN  AN  INVESTMENT  COMPANY  UNDER  THE
INVESTMENT  COMPANY  ACT  OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), TO WHICH
ASSET MANAGEMENT SERVICES ARE PROVIDED.
  (III) IN THE CASE OF ASSET MANAGEMENT SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF
1940 (15 U.S.C. S 80A-1 ET SEQ.), GROSS RECEIPTS WITH  RESPECT  TO  SUCH
SERVICES  SHALL  BE  SOURCED TO THE DOMICILE OF THE SHAREHOLDERS OF SUCH
INVESTMENT COMPANY IN  ACCORDANCE  WITH  THE  FOLLOWING  PROCEDURE:  THE
PORTION  OF  THE  GROSS  RECEIPTS WITH RESPECT TO SUCH SERVICES THAT ARE
SOURCED TO THIS CITY SHALL BE DETERMINED BY  MULTIPLYING  THE  TOTAL  OF
SUCH GROSS RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE
OF  THE  SUM  OF  THE  BEGINNING  OF YEAR AND THE END OF YEAR BALANCE OF
SHARES OWNED BY THE INVESTMENT COMPANY SHAREHOLDERS  DOMICILED  IN  THIS
CITY  FOR  THE  INVESTMENT COMPANY'S TAXABLE YEAR FOR FEDERAL INCOME TAX
PURPOSES AND THE DENOMINATOR OF WHICH IS THE AVERAGE OF THE SUM  OF  THE
BEGINNING  OF  YEAR  AND  THE END OF YEAR BALANCE OF SHARES OWNED BY ALL
INVESTMENT COMPANY SHAREHOLDERS. A SEPARATE COMPUTATION  SHALL  BE  MADE
WITH  RESPECT  TO  GROSS RECEIPTS FOR ASSET MANAGEMENT SERVICES PROVIDED
DIRECTLY OR INDIRECTLY TO EACH INVESTMENT COMPANY.
  (IV) IN THE CASE OF ASSET MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  A  PERSON  OTHER  THAN  THOSE  PERSONS DESCRIBED IN THIS
CLAUSE, TO THE DOMICILE OF SUCH PERSON.
  (D) (I) FOR PURPOSES OF THIS SUBPARAGRAPH,  "ADMINISTRATION  SERVICES"
MEANS,  IN  EACH CASE WITH RESPECT TO INVESTMENTS THE DIRECT OR INDIRECT
PROVISION OF, (I) CLERICAL, (II)  ACCOUNTING,  (III)  BOOKKEEPING,  (IV)
DATA  PROCESSING,  (V)  INTERNAL  AUDITING, (VI) LEGAL AND TAX SERVICES,
(VII) REGULATORY COMPLIANCE, OPERATIONS  AND  RELATED  SERVICES,  (VIII)
RISK  ANALYTICS, (IX) TRADE PROCESSING, CLEARING AND EXECUTION SERVICES,
(X) TRANSFER AGENCY, AND (XI) CUSTODIAL SERVICES.
  (II) "ASSET MANAGEMENT CORPORATION" MEANS A CORPORATION (DETERMINED ON
A SEPARATE OR COMBINED FILING BASIS) (I) THAT IS PRINCIPALLY ENGAGED  IN
THE  PERFORMANCE  OF  ASSET  MANAGEMENT  SERVICES;  (II)  THAT  MAKES AN
ELECTION FOR EACH TAXABLE YEAR TO BE  TREATED  AS  AN  ASSET  MANAGEMENT
CORPORATION  BY  FILING THE APPROPRIATE FORM OF RETURN PRESCRIBED BY THE
COMMISSIONER TO MAKE SUCH ELECTION; (III) IS NOT OTHERWISE A  REGISTERED
SECURITIES  OR COMMODITIES BROKER OR DEALER UNDER CLAUSE (A) OF SUBPARA-
GRAPH NINE OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION TWO  HUNDRED
TEN  OF  THE TAX LAW; (IV) THAT PROVIDES INVESTMENT ADVISORY SERVICES TO
CUSTOMERS; (V) THAT PROVIDES RISK MANAGEMENT SERVICES TO CUSTOMERS BASED
ON PROPRIETARILY-DEVELOPED SYSTEMS; AND  (VI)  THAT  MANAGES  ASSETS  ON
BEHALF  OF INSTITUTIONS AND RETAIL CLIENTS IN THE AREAS OF FIXED INCOME,
CASH MANAGEMENT, EQUITIES, ALTERNATIVE INVESTMENTS,  SEPARATE  ACCOUNTS,
AND MUTUAL FUNDS.
  (III)  FOR  PURPOSES OF THIS SUBPARAGRAPH, "GROSS RECEIPTS" SHALL MEAN
GROSS RECEIPTS REPORTED BY THE CORPORATION  FOR  ITS  TAXABLE  YEAR  FOR
PURPOSES OF THE FEDERAL INCOME TAX.

A. 7086--A                         12

  (IV)  FOR  PURPOSES  OF THIS SUBPARAGRAPH, "ASSET MANAGEMENT SERVICES"
INCLUDES, BUT IS NOT LIMITED TO, IN EACH CASE WITH  RESPECT  TO  INVEST-
MENTS,  DIRECTLY OR INDIRECTLY, (I) RENDERING INVESTMENT ADVICE, INCLUD-
ING INVESTMENT ANALYSIS, (II) MAKING DETERMINATIONS AS TO WHEN SALES AND
PURCHASES  ARE  TO  BE MADE, (III) SELLING OR PURCHASING OF INVESTMENTS,
(IV)  RENDERING  ADMINISTRATION  SERVICES,  (V)  RENDERING  DISTRIBUTION
SERVICES  OR  (VI)  MANAGING  PURSUANT  TO  CONTRACTS  FOR  SUB-ADVISORY
SERVICES.
  (V)  FOR  PURPOSES  OF  THIS  SUBPARAGRAPH,  "DISTRIBUTION   SERVICES"
INCLUDES,  BUT  IS  NOT LIMITED TO, IN EACH CASE WITH RESPECT TO INVEST-
MENTS, DIRECTLY OR INDIRECTLY, (I) ADVERTISING, (II) SERVICING  INVESTOR
ACCOUNTS  (INCLUDING  REDEMPTIONS),  (III)  MARKETING  SHARES OR SELLING
SHARES OF CORPORATIONS  OR  BUSINESS  TRUSTS  REGISTERED  AS  INVESTMENT
COMPANIES UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET
SEQ.),  AND  (IV) MARKETING ASSET MANAGEMENT SERVICES (INCLUDING SELLING
INTERESTS IN A POOL OF INVESTMENTS, SUCH AS A FUND).
  (VI) FOR PURPOSES OF THIS SUBPARAGRAPH, "DOMICILE", IN THE CASE OF  AN
INDIVIDUAL,  SHALL HAVE THE MEANING ASCRIBED TO IT UNDER ARTICLE TWENTY-
TWO OF THE TAX LAW; AN ESTATE OR TRUST IS DOMICILED IN THE STATE  IF  IT
IS  A  RESIDENT  ESTATE  OR  TRUST  AS  DEFINED  IN  PARAGRAPH  THREE OF
SUBSECTION (B) OF SECTION SIX HUNDRED FIVE OF THE TAX  LAW;  A  BUSINESS
ENTITY  IS  DOMICILED IN THE STATE IF THE LOCATION OF THE ACTUAL SEAT OF
MANAGEMENT OR CONTROL IS IN THE STATE. IT SHALL  BE  PRESUMED  THAT  THE
DOMICILE OF A SHAREHOLDER, WITH RESPECT TO ANY MONTH, IS HIS, HER OR ITS
MAILING  ADDRESS ON THE RECORDS OF THE INVESTMENT COMPANY AS OF THE LAST
DAY OF SUCH MONTH. IN THE CASE OF A  CORPORATION  OR  A  PARTNERSHIP,  S
CORPORATION,  A  DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL
REVENUE CODE OR ANY OTHER SIMILAR ENTITY ORGANIZED  UNDER  FOREIGN  LAW,
ITS  COMMERCIAL  DOMICILE; PROVIDED, HOWEVER, DOMICILE SHALL BE PRESUMED
TO BE THE MAILING ADDRESS OF THE BENEFICIARY OF A PENSION PLAN,  OR  THE
OWNER  OF  AN  ACCOUNT OR INTEREST IN A POOL OF INVESTMENTS BASED ON THE
RECORDS OF THE SPONSOR OF SUCH PENSION PLAN, ACCOUNT OR POOL OF  INVEST-
MENTS  OR THE SHAREHOLDER'S MAILING ADDRESS ON THE RECORDS OF AN INVEST-
MENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1
ET SEQ.) IF REASONABLY ASCERTAINABLE.
  (VII) FOR PURPOSES OF THIS SUBPARAGRAPH, "SPONSOR"  MEANS  THE  PERSON
THAT HAS CONTRACTED DIRECTLY WITH THE BENEFICIARIES OF A PENSION PLAN OR
RETIREMENT  ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL OF
INVESTMENTS TO ADMINISTER AND MANAGE  THE  PENSION  PLAN  OR  RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S  8.  Subparagraphs  (H) and (I) of paragraph 2 of subdivision (a) of
section 11-642 of the administrative code  of  the  city  of  New  York,
subparagraph  (H) as relettered by section 7 of part AA of chapter 63 of
the laws of 2000, are relettered subparagraphs (I) and  (J)  and  a  new
subparagraph (H) is added to read as follows:
  (H)  RULES  FOR  RECEIPTS  FROM  SERVICES PROVIDED BY ASSET MANAGEMENT
CORPORATIONS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND NINE, THE PORTION OF RECEIPTS RECEIVED FROM AN ASSET MANAGEMENT
COMPANY ARISING FROM THE SALE OF MANAGEMENT, ADMINISTRATION OR  DISTRIB-
UTION  SERVICES  DETERMINED  IN  ACCORDANCE WITH SUBDIVISION (E) OF THIS
SECTION SHALL BE DEEMED TO ARISE FROM SERVICES PERFORMED WITHIN THE CITY
(SUCH PORTION REFERRED TO HEREIN AS THE NEW YORK CITY PORTION).
  S 9. Section 11-642 of the administrative code of the city of New York
is amended by adding a new subdivision (e) to read as follows:
  (E) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND  NINE,  AND  CONTINUING THEREAFTER, NO CONSIDERATION SHALL BE GIVEN

A. 7086--A                         13

THE PHRASE "EIGHTY PERCENT OF" IN PARAGRAPH ONE OF  SUBDIVISION  (A)  OF
THIS  SECTION  WHEN  AN ELECTION HAS BEEN MADE UNDER SUBPARAGRAPH (B) OF
PARAGRAPH FOUR OF THIS SUBDIVISION.
  THE  ENTIRE  NET  INCOME  OF  AN ASSET MANAGEMENT CORPORATION SHALL BE
APPORTIONED TO THIS CITY ON THE BASIS OF THE  RATIO  OF  GROSS  RECEIPTS
FROM  ASSET  MANAGEMENT  SERVICES  FROM SOURCES WITHIN THIS CITY FOR THE
INCOME YEAR EXPRESSED AS A PERCENTAGE OF ALL SUCH  GROSS  RECEIPTS  FROM
ASSET  MANAGEMENT  SERVICES  BOTH  WITHIN  AND  WITHOUT THE CITY FOR THE
INCOME YEAR. THE SOURCE OF GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES
SHALL BE DETERMINED AS FOLLOWS:
  (1) IN THE CASE OF ASSET  MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INDIVIDUAL,  GROSS  RECEIPTS  WITH  RESPECT  TO SUCH
SERVICES SHALL BE SOURCED TO THE CITY OF THE INDIVIDUAL'S DOMICILE.
  (2) IN THE CASE OF ASSET  MANAGEMENT  SERVICES  PROVIDED  DIRECTLY  OR
INDIRECTLY  TO  AN  INSTITUTIONAL  INVESTOR  HOLDING INVESTMENTS FOR THE
BENEFIT OF OTHERS, SUCH AS A PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE, OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER  FOREIGN  LAW,  GROSS  RECEIPTS
WITH  RESPECT TO SUCH SERVICES SHALL BE SOURCED ACCORDING TO THE FOLLOW-
ING RULES IN THE FOLLOWING ORDER:
  (A) IF INFORMATION REGARDING  DOMICILE  OF  BENEFICIARIES,  OWNERS  OR
MEMBERS IS AVAILABLE TO THE ASSET MANAGEMENT CORPORATION PROVIDING ASSET
MANAGEMENT  SERVICES  TO  A  PENSION PLAN, RETIREMENT ACCOUNT OR POOL OF
INVESTMENTS, INCLUDING A FUND (OTHER THAN AN  INVESTMENT  COMPANY  UNDER
THE  INVESTMENT  COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)), OR TO
AN INSTITUTIONAL INVESTOR ORGANIZED AS A PARTNERSHIP, S  CORPORATION,  A
DISREGARDED  ENTITY  UNDER SECTION 7701 OF THE INTERNAL REVENUE CODE, OR
ANY OTHER SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH  THE  EXER-
CISE  OF  REASONABLE  DILIGENCE  IN ASCERTAINING SUCH INFORMATION, GROSS
RECEIPTS WITH RESPECT TO SUCH SERVICES SHALL BE SOURCED TO THE  DOMICILE
OF SUCH BENEFICIARIES, OWNERS OR MEMBERS;
  (B)  IF  INFORMATION  REGARDING  DOMICILE  OF BENEFICIARIES, OWNERS OR
MEMBERS IS NOT AVAILABLE TO THE ASSET MANAGEMENT  CORPORATION  PROVIDING
ASSET  MANAGEMENT SERVICES TO A PENSION PLAN, RETIREMENT ACCOUNT OR POOL
OF INVESTMENTS, INCLUDING A FUND (OTHER THAN AN INVESTMENT COMPANY UNDER
THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET SEQ.)),  OR  TO
AN  INSTITUTIONAL  INVESTOR ORGANIZED AS A PARTNERSHIP, S CORPORATION, A
DISREGARDED ENTITY UNDER SECTION 7701 OF THE INTERNAL REVENUE  CODE,  OR
ANY  OTHER  SIMILAR ENTITY ORGANIZED UNDER FOREIGN LAW THROUGH THE EXER-
CISE OF REASONABLE  DILIGENCE  IN  ASCERTAINING  SUCH  INFORMATION,  ANY
REASONABLE  ALTERNATIVE METHOD BASED ON INFORMATION READILY AVAILABLE TO
THE ASSET MANAGEMENT CORPORATION MAY BE USED TO DETERMINE THE SOURCE  OF
GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES. BASED ON FACTS AND CIRCUM-
STANCES IN SPECIFIC CASES, REASONABLE ALTERNATIVE METHODS USED TO DETER-
MINE  THE  SOURCE  OF  GROSS RECEIPTS FROM ASSET MANAGEMENT SERVICES MAY
TAKE INTO ACCOUNT THE LATEST POPULATION CENSUS DATA AVAILABLE  FROM  THE
UNITED  STATES  CENSUS  BUREAU, THE DOMICILE OF THE SPONSOR OF A PENSION
PLAN OR RETIREMENT ACCOUNT OR AN ACCOUNT OR POOL OF  INVESTMENTS  (OTHER
THAN  AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15
U.S.C. S 80A-1 ET SEQ.)) OR THE DOMICILE OF  AN  INSTITUTIONAL  INVESTOR
ORGANIZED  AS  A  PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY UNDER
SECTION 7701 OF THE INTERNAL REVENUE CODE, OR ANY OTHER  SIMILAR  ENTITY
ORGANIZED UNDER FOREIGN LAW OR:

A. 7086--A                         14

  (C) IF
  (I)  THE  DOMICILE  OF  BENEFICIARIES, OWNERS OR MEMBERS IS NOT ASCER-
TAINED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH; OR,
  (II) NO REASONABLE ALTERNATIVE SOURCING METHOD EXISTS  UNDER  SUBPARA-
GRAPH  (B)  OF  THIS  PARAGRAPH,  GROSS  RECEIPTS  WITH  RESPECT TO SUCH
SERVICES SHALL BE SOURCED TO THE DOMICILE OF THE INSTITUTIONAL  INVESTOR
OR  THE  DOMICILE OF THE SPONSOR OF A PENSION PLAN OR RETIREMENT ACCOUNT
OR AN ACCOUNT OR POOL OF INVESTMENTS, INCLUDING A FUND  (OTHER  THAN  AN
INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S
80A-1 ET SEQ.)), TO WHICH ASSET MANAGEMENT SERVICES ARE PROVIDED. IN THE
CASE  OF ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR INDIRECTLY TO AN
INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF 1940  (15  U.S.C.
S  80A-1 ET SEQ.), GROSS RECEIPTS WITH RESPECT TO SUCH SERVICES SHALL BE
SOURCED TO THE DOMICILE OF THE SHAREHOLDERS OF SUCH  INVESTMENT  COMPANY
IN  ACCORDANCE  WITH  THE FOLLOWING PROCEDURE:  THE PORTION OF THE GROSS
RECEIPTS WITH RESPECT TO SUCH SERVICES THAT ARE SOURCED  TO  THIS  STATE
SHALL BE DETERMINED BY MULTIPLYING THE TOTAL OF SUCH GROSS RECEIPTS BY A
FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE OF THE SUM OF THE BEGIN-
NING  OF YEAR AND THE END OF YEAR BALANCE OF SHARES OWNED BY THE INVEST-
MENT COMPANY SHAREHOLDERS DOMICILED IN THIS  STATE  FOR  THE  INVESTMENT
COMPANY'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES AND THE DENOMINA-
TOR  OF WHICH IS THE AVERAGE OF THE SUM OF THE BEGINNING OF YEAR AND THE
END OF YEAR BALANCE OF SHARES OWNED BY ALL INVESTMENT COMPANY SHAREHOLD-
ERS. A SEPARATE COMPUTATION SHALL BE MADE WITH RESPECT TO GROSS RECEIPTS
FOR ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR  INDIRECTLY  TO  EACH
INVESTMENT COMPANY.
  (3)  IN  THE  CASE  OF  ASSET MANAGEMENT SERVICES PROVIDED DIRECTLY OR
INDIRECTLY TO A PERSON OTHER THAN THOSE PERSONS DESCRIBED IN THIS  PARA-
GRAPH, TO THE DOMICILE OF SUCH PERSON.
  (4)  (A)  FOR  PURPOSES OF THIS SUBDIVISION, "ADMINISTRATION SERVICES"
MEANS, IN EACH CASE WITH RESPECT TO INVESTMENTS THE DIRECT  OR  INDIRECT
PROVISION  OF,  (I)  CLERICAL,  (II) ACCOUNTING, (III) BOOKKEEPING, (IV)
DATA PROCESSING, (V) INTERNAL AUDITING, (VI)  LEGAL  AND  TAX  SERVICES,
(VII)  REGULATORY  COMPLIANCE,  OPERATIONS  AND RELATED SERVICES, (VIII)
RISK ANALYTICS, (IX) TRADE PROCESSING, CLEARING AND EXECUTION  SERVICES,
(X) TRANSFER AGENCY, AND (XI) CUSTODIAL.
  (B)  "ASSET MANAGEMENT CORPORATION" MEANS A CORPORATION (DETERMINED ON
A SEPARATE OR COMBINED FILING BASIS) (I) THAT IS PRINCIPALLY ENGAGED  IN
THE  PERFORMANCE  OF  ASSET  MANAGEMENT  SERVICES;  (II)  THAT  MAKES AN
ELECTION FOR EACH TAXABLE YEAR TO BE  TREATED  AS  AN  ASSET  MANAGEMENT
CORPORATION  BY  FILING THE APPROPRIATE FORM OF RETURN PRESCRIBED BY THE
COMMISSIONER TO MAKE SUCH ELECTION; (III) IS NOT OTHERWISE A  REGISTERED
SECURITIES  OR COMMODITIES BROKER OR DEALER UNDER CLAUSE (A) OF SUBPARA-
GRAPH NINE OF PARAGRAPH A OF SUBDIVISION THREE OF  SECTION  TWO  HUNDRED
TEN  OF  THE TAX LAW; (IV) THAT PROVIDES INVESTMENT ADVISORY SERVICES TO
CUSTOMERS; (V) THAT PROVIDES RISK MANAGEMENT SERVICES TO CUSTOMERS BASED
ON PROPRIETARILY-DEVELOPED SYSTEMS; AND  (VI)  THAT  MANAGES  ASSETS  ON
BEHALF  OF INSTITUTIONS AND RETAIL CLIENTS IN THE AREAS OF FIXED INCOME,
CASH MANAGEMENT, EQUITIES, ALTERNATIVE INVESTMENTS,  SEPARATE  ACCOUNTS,
AND MUTUAL FUNDS.
  (C)  FOR  PURPOSES  OF  THIS  SUBDIVISION, "GROSS RECEIPTS" SHALL MEAN
GROSS RECEIPTS REPORTED BY THE CORPORATION  FOR  ITS  TAXABLE  YEAR  FOR
PURPOSES OF THE FEDERAL INCOME TAX.
  (D)  FOR  PURPOSES  OF  THIS  SUBDIVISION, "ASSET MANAGEMENT SERVICES"
INCLUDES, BUT IS NOT LIMITED TO, IN EACH CASE WITH  RESPECT  TO  INVEST-
MENTS,  DIRECTLY OR INDIRECTLY, (I) RENDERING INVESTMENT ADVICE, INCLUD-

A. 7086--A                         15

ING INVESTMENT ANALYSIS, (II) MAKING DETERMINATIONS AS TO WHEN SALES AND
PURCHASES ARE TO BE MADE, (III) SELLING OR  PURCHASING  OF  INVESTMENTS,
(IV)  RENDERING  ADMINISTRATION  SERVICES,  (V)  RENDERING  DISTRIBUTION
SERVICES  OR  (VI)  MANAGING  PURSUANT  TO  CONTRACTS  FOR  SUB-ADVISORY
SERVICES.
  (E)  FOR  PURPOSES  OF  THIS  SUBDIVISION,   "DISTRIBUTION   SERVICES"
INCLUDES,  BUT  IS  NOT LIMITED TO, IN EACH CASE WITH RESPECT TO INVEST-
MENTS, DIRECTLY OR INDIRECTLY, (I) ADVERTISING, (II) SERVICING  INVESTOR
ACCOUNTS  (INCLUDING  REDEMPTIONS),  (III)  MARKETING  SHARES OR SELLING
SHARES OF CORPORATIONS  OR  BUSINESS  TRUSTS  REGISTERED  AS  INVESTMENT
COMPANIES UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. S 80A-1 ET
SEQ.),  AND  (IV) MARKETING ASSET MANAGEMENT SERVICES (INCLUDING SELLING
INTERESTS IN A POOL OF INVESTMENTS, SUCH AS A FUND.
  (F) "DOMICILE", IN THE CASE OF AN INDIVIDUAL, SHALL HAVE  THE  MEANING
ASCRIBED  TO  IT  UNDER  ARTICLE TWENTY-TWO OF THE TAX LAW; AN ESTATE OR
TRUST IS DOMICILED IN THE STATE IF IT IS A RESIDENT ESTATE OR  TRUST  AS
DEFINED IN PARAGRAPH THREE OF SUBSECTION (B) OF SECTION SIX HUNDRED FIVE
OF  THE  TAX  LAW;  A  BUSINESS  ENTITY IS DOMICILED IN THE STATE IF THE
LOCATION OF THE ACTUAL SEAT OF MANAGEMENT OR CONTROL IS IN THE STATE. IT
SHALL BE PRESUMED THAT THE DOMICILE OF A SHAREHOLDER,  WITH  RESPECT  TO
ANY  MONTH,  IS  HIS,  HER  OR ITS MAILING ADDRESS ON THE RECORDS OF THE
INVESTMENT COMPANY AS OF THE LAST DAY OF SUCH MONTH. IN THE  CASE  OF  A
CORPORATION  OR A PARTNERSHIP, S CORPORATION, A DISREGARDED ENTITY UNDER
SECTION 7701 OF THE INTERNAL REVENUE CODE, OR ANY OTHER  SIMILAR  ENTITY
ORGANIZED UNDER FOREIGN LAW, ITS COMMERCIAL DOMICILE; PROVIDED, HOWEVER,
DOMICILE  SHALL BE PRESUMED TO BE THE MAILING ADDRESS OF THE BENEFICIARY
OF A PENSION PLAN, OR THE OWNER OF AN ACCOUNT OR INTEREST IN A  POOL  OF
INVESTMENTS  BASED  ON  THE RECORDS OF THE SPONSOR OF SUCH PENSION PLAN,
ACCOUNT OR POOL OF INVESTMENTS OR THE SHAREHOLDER'S MAILING  ADDRESS  ON
THE RECORDS OF AN INVESTMENT COMPANY UNDER THE INVESTMENT COMPANY ACT OF
1940 (15 U.S.C. S 80A-1 ET SEQ.).
  (G)  FOR PURPOSES OF THIS SUBDIVISION, "SPONSOR" MEANS THE PERSON THAT
HAS CONTRACTED DIRECTLY WITH THE BENEFICIARIES  OF  A  PENSION  PLAN  OR
RETIREMENT  ACCOUNT OR THE OWNER OF ANY ACCOUNT OR INTEREST IN A POOL OF
INVESTMENTS TO ADMINISTER AND MANAGE  THE  PENSION  PLAN  OR  RETIREMENT
ACCOUNT, OTHER ACCOUNT OR POOL OF INVESTMENTS.
  S  10. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2009.

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Assembly Bill A7086

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2009-A7086 - Details

2009-A7086 - Summary

2009-A7086 - Bill Text download pdf

2009-A7086A (ACTIVE) - Details

2009-A7086A (ACTIVE) - Summary

2009-A7086A (ACTIVE) - Sponsor Memo

2009-A7086A (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A7086

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Sponsored By

BING

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2009-A7086 - Details

2009-A7086 - Summary

2009-A7086 - Bill Text download pdf

2009-A7086A (ACTIVE) - Details

2009-A7086A (ACTIVE) - Summary

2009-A7086A (ACTIVE) - Sponsor Memo

2009-A7086A (ACTIVE) - Bill Text download pdf

Comments