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

                                  6922

                            I N  S E N A T E

                             April 11, 2012
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the tax law, in relation to filing fees for partnerships

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

  Section 1. Subparagraphs (A) and (B) of paragraph 3 of subsection  (c)
of section 658 of the tax law, subparagraph (A) as amended by section 18
of  part  U  of  chapter  61 of the laws of 2011 and subparagraph (B) as
amended by section 1 of part H-1 of chapter 57 of the laws of 2009,  are
amended to read as follows:
  (A)  Every  subchapter  K  limited  liability  company,  every limited
liability company that is a disregarded entity for  federal  income  tax
purposes,  and every LIMITED LIABILITY partnership UNDER ARTICLE EIGHT-B
OF THE PARTNERSHIP LAW AND EVERY FOREIGN LIMITED  LIABILITY  PARTNERSHIP
which  has  any  income  derived  from  New  York sources, determined in
accordance with the applicable rules of section six  hundred  thirty-one
of this article as in the case of a nonresident individual, shall, with-
in  sixty days after the last day of the taxable year, make a payment of
a filing fee. The amount of the filing fee is the amount  set  forth  in
subparagraph  (B)  of  this paragraph. The minimum filing fee is twenty-
five dollars for taxable years beginning in two thousand eight and ther-
eafter. Limited liability companies that are  disregarded  entities  for
federal income tax purposes must pay a filing fee of twenty-five dollars
for  taxable  years  beginning  on  or after January first, two thousand
eight.
  (B) The filing fee will be based on the New York source  gross  income
of  the  limited  liability company or LIMITED LIABILITY partnership for
the taxable year immediately preceding the taxable year  for  which  the
fee  is due. If the limited liability company or LIMITED LIABILITY part-
nership does not have any New York source gross income for  the  taxable
year  immediately  preceding  the taxable year for which the fee is due,
the limited liability company or LIMITED LIABILITY partnership shall pay
the minimum filing fee.  [Partnerships,  other  than  limited  liability
partnerships  under  article  eight-B of the partnership law and foreign
limited liability partnerships, with less than one  million  dollars  in
New  York  source gross income are exempt from the filing fee.] New York
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15270-01-2

S. 6922                             2

source gross income is the sum of the partners' or  members'  shares  of
federal  gross  income from the LIMITED LIABILITY partnership or limited
liability company derived from  or  connected  with  New  York  sources,
determined  in  accordance  with  the  provisions of section six hundred
thirty-one of this article  as  if  those  provisions  and  any  related
provisions  expressly  referred to a computation of federal gross income
from New York  sources.  For  this  purpose,  federal  gross  income  is
computed without any allowance or deduction for cost of goods sold.
  The  amount  of the filing fee for taxable years beginning on or after
January first, two thousand eight will be determined in accordance  with
the following table:

If the New York source gross income is:         The fee is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $50
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $500
more than $1,000,000 but not over $5,000,000    $1,500
more than $5,000,000 but not over $25,000,000   $3,000
Over $25,000,000                                $4,500

  S  2.  Subsection  (a) of section 1304-C of the tax law, as amended by
section 2 of part H-1 of chapter 57 of the laws of 2009, is  amended  to
read as follows:
  (a)  In addition to any other taxes or fees authorized by this article
or any other law, any city imposing the taxes authorized by this article
is hereby authorized and empowered to adopt and amend local laws provid-
ing that every subchapter K limited liability company (as such  term  is
defined  in subsection (b) of section thirteen hundred two of this arti-
cle), every limited liability company that is a disregarded  entity  for
federal  income  tax  purposes  and  every LIMITED LIABILITY partnership
UNDER ARTICLE EIGHT-B OF THE PARTNERSHIP LAW AND EVERY  FOREIGN  LIMITED
LIABILITY  PARTNERSHIP  which has any income derived from sources within
such city, determined in accordance with the applicable rules of section
six hundred thirty-one of this chapter as in the case of a state nonres-
ident individual (except that in making that  determination  any  refer-
ences  in  section  six  hundred thirty-one of this chapter to "New York
source" or "New York sources" shall be read as references to  "New  York
city  source"  or  "New  York  city  sources" and any references in that
section to "this state" or "the state" shall be read  as  references  to
"this  city" or "the city"), shall within thirty days after the last day
of the taxable year make a payment of a filing fee. The  amount  of  the
filing  fee  shall  be  the  amount  determined under paragraph three of
subsection (c) of section  six  hundred  fifty-eight  of  this  chapter,
except  that in making that determination any references in that section
to "New York source gross income" must be read as reference to "New York
city source gross income". Any local law imposing the filing fee author-
ized by this section shall provide that where  the  filing  fee  is  not
timely  paid,  it  shall  be  paid  upon  notice and demand and shall be
assessed, collected and paid in the same manner  as  the  taxes  imposed
pursuant  to  the  authority of this article, and for these purposes any
reference in the local law imposing those taxes to the taxes imposed  by
that  local  law shall be deemed also to refer to the filing fee imposed
pursuant to the authority of this section.
  S 3. This act shall take effect immediately.