S T A T E O F N E W Y O R K
________________________________________________________________________
7542
I N S E N A T E
June 1, 2012
___________
Introduced by Sen. O'MARA -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the imposition of the
personal income tax upon foreign partnerships
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (f) of section 601 of the tax law, as amended by
chapter 248 of the laws of 1997, is amended to read as follows:
(f) Partners and partnerships. (1) A partnership as such shall not be
subject to tax under this article. Persons carrying on business as part-
ners shall be liable for tax under this article only in their separate
or individual capacities. As used in this article, the term "partner-
ship" shall include, unless a different meaning is clearly required, a
subchapter K limited liability company. The term "subchapter K limited
liability company" shall mean a limited liability company classified as
a partnership for federal income tax purposes. The term "limited liabil-
ity company" means a domestic limited liability company or a foreign
limited liability company, as defined in section one hundred two of the
limited liability company law, a limited liability investment company
formed pursuant to section five hundred seven of the banking law, or a
limited liability trust company formed pursuant to section one hundred
two-a of the banking law.
(2) A FOREIGN PARTNERSHIP SHALL NOT BE DEEMED TO HAVE NEXUS IN THIS
STATE, AND THE NON-RESIDENT PARTNERS OF SUCH FOREIGN PARTNERSHIP SHALL
NOT BE DEEMED TO HAVE NEW YORK-SOURCE INCOME, BY REASON OF SUCH FOREIGN
PARTNERSHIP USING FULFILLMENT SERVICES OF A PERSON OR ENTITY AND OWNING
PROPERTY STORED ON THE PREMISES OF SUCH PERSON OR ENTITY IN CONJUNCTION
WITH SUCH SERVICES. THE TERM "FULFILLMENT SERVICES" SHALL MEAN ANY OF
THE FOLLOWING SERVICES PERFORMED BY AN ENTITY ON ITS PREMISES ON BEHALF
OF A PURCHASER: (I) THE ACCEPTANCE OF ORDERS ELECTRONICALLY OR BY MAIL,
TELEPHONE, TELEFAX OR INTERNET; (II) RESPONSES TO CONSUMER CORRESPOND-
ENCE OR INQUIRIES ELECTRONICALLY OR BY MAIL, TELEPHONE, TELEFAX OR
INTERNET; (III) BILLING AND COLLECTION ACTIVITIES; OR (IV) THE SHIPMENT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15966-03-2
S. 7542 2
OF ORDERS FROM AN INVENTORY OF PRODUCTS OFFERED FOR SALE BY THE PURCHAS-
ER.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.