§ 12. Tax based on net income; imposition; minimum tax; new
incorporations; dissolution; consolidations; mergers; etc. 1. For the
privilege of doing business in the city:

(a) Every bank and savings and loan association organized under the
authority of this state;

(b) Every trust company incorporated, organized or formed under, by or
pursuant to a law of the state, other than a trust company all of the
stock of which is owned by not less than twenty savings banks organized
under a law of the state, and every domestic corporation authorized to
do a trust company's business solely or in connection with any other
business, under a general or special law of the state;

(c) Every other domestic financial corporation;

(d) Every incorporated foreign banker doing a banking business and
every other foreign financial corporation; and

(e) Every federal savings and loan association located within the
city,
shall annually pay a tax at the rate of four and one-half per centum
except that for the years nineteen hundred seventy-one and those
following, as an alternative, at the rate of five and sixty-three one
hundredths per centum, to be computed as provided in this subpart, upon
the basis of its net income for each calendar year, beginning with the
calendar year nineteen hundred sixty-six, next preceding the date when
such tax becomes due and, if the taxpayer is required to file a
declaration of estimated tax and to make payments on account of such
estimated tax as provided by section thirty-five of this part, upon the
basis of its net income for the calendar year with respect to which such
declaration is required to be filed.

2. Every such corporation for the privilege of doing business in the
city and every federal savings and loan association located in the city
shall be subject to a minimum tax of not less than ten dollars and not
less than one mill or, as an alternative for the years nineteen hundred
seventy-one and those following, a minimum tax of not less than twelve
and one-half dollars and not less than one and one quarter mills upon
each dollar of such a part of its issued capital stock on the last day
of the calendar year preceding that in which such tax becomes due, at
its face value, as the gross income of such corporation derived from
business carried on within the city, during such calendar year, bears to
its gross income derived from all business, both within and without the
city, during said year, but if such a corporation has stock without par
value, such stock shall be taken at its actual or market value, and not
less than five dollars per share, as may be determined by the director
of finance; except that a savings bank and savings and loan association
shall be subject to a minimum tax of not less than ten dollars and not
less than an amount equal to two per centum of the amount of interest or
dividends credited by it by depositors or shareholders during the
calendar year preceding that in which such tax becomes due or, as an
alternative, for the years nineteen hundred seventy-one and those
following, a minimum tax of not less than twelve and one-half dollars
and not less than an amount equal to two and one-half per centum of the
amount of interest or dividends credited to by it to depositors or
shareholders during the calendar year preceding that in which such tax
becomes due, provided, that, in determining such amount, each interest
or dividend credit to a depositor or shareholder shall be deemed to be
the interest or dividend actually credited or the interest or dividend
which would have been credited if it had been computed and credited at
the rate of two per centum per annum, whichever is less, and except also
that in the case of a trust company or savings bank incorporated in the
calendar year preceding that in which its first return under this
subpart shall be due and after the thirtieth day of June in such year,
the minimum tax, computed as in this subdivision provided, shall be
reduced one-twelfth for each month, or major portion thereof, subsequent
to said thirtieth day of June during which such trust company or savings
bank did not exercise the privilege of doing business in the city.

3. For the privilege of doing business in the city, every such
domestic corporation, except trust companies and savings banks, shall be
subject to a tax for the calendar year in which its organization
certificate is filed, and, for the privilege of doing business in the
city, every such foreign corporation shall be subject to a tax for the
calendar year in which it first does business in the city, and, every
federal savings and loan association located within the city shall be
subject to a tax for the calendar year in which it first becomes located
within the city, computed in the same manner and at the same rate as the
minimum tax under subdivision two of this section, except that the
income forming the basis for proration shall be the income for such
calendar year, and the issued capital stock shall be taken as of the
last day of such calendar year; provided, however, that the tax so
computed shall be reduced one-twelfth for each month, or major portion
thereof, in such calendar year, during which such corporation was not
doing business in the city, or, if a federal savings and loan
association, was not located in the city, and in no event shall the tax
be less than ten dollars or, as an alternative, for the year nineteen
hundred seventy-one and those following, not less than twelve and
one-half dollars.

4. For the privilege of doing business in the city, every such trust
company and savings bank which shall become incorporated between the
thirty-first day of December and the succeeding first day of July, shall
be subject to a tax for such period, computed in the same manner and at
the same rate as the minimum tax under subdivision two of this section,
except that the income forming the basis for proration shall be the
income for such period; and the issued capital stock, or interest
credited to depositors of a savings bank, shall be taken as of the last
day of such period; provided, however, that the tax so computed shall be
reduced one-half and an additional one-twelfth for each month, or major
portion thereof, in such period, during which such trust company or
savings bank was not doing business in the city, and in no event shall
the tax be less than ten dollars or, as an alternative, for the year
nineteen hundred seventy-one and those following, not less than twelve
and one-half dollars.

5. For the privilege of doing business in the city, every such
corporation, except trust companies and savings banks, which shall be
dissolved between the thirty-first day of December and the succeeding
second day of September, and shall not become merged or consolidated
with another corporation taxable under this subpart and, every such
foreign corporation which shall cease to do business in the city during
the same period, and every federal savings and loan association which
ceases to be located in the city during the same period, and shall not
become merged or consolidated with another corporation taxable under
this subpart, shall pay a tax for the period from the thirty-first day
of December up to the time of dissolution, ceasing to do business in the
city, or ceasing to be located in the city, as the case may be, equal to
that which would have been payable had it not been dissolved, ceased to
do business in the city, or ceased to be located in the city, except
that such tax shall be reduced one-third and an additional one-twelfth
for each month, or major portion thereof, prior to such succeeding
second day of September, during which such corporation was not doing
business in the city, or was not located in the city, and in no event
shall the tax be less than ten dollars or, as an alternative, for the
year nineteen hundred seventy-one and those following, not less than
twelve and one-half dollars. If such dissolution or cessation occurs
between the fifteenth day of March and the second day of September, and
if such corporation shall have filed its return on or before the
fifteenth day of March as required by section thirty-two of this part,
it may file a claim for refund as provided in section seventy-eight of
this title, showing any reduction in tax to which it may be entitled as
provided in the preceding sentence; and if it shall be made to appear
that the amount of tax due is less than the amount as computed on the
basis of the original return, the director of finance shall adjust the
computation of tax accordingly. If the amount of tax as so adjusted
shall be less than theretofore amount heretofore paid, the excess shall
be refunded by the comptroller as provided in subdivision one of section
seventy-seven of this title.

6. Every such trust company and savings bank, which shall be
dissolved, and shall not become merged or consolidated with another
corporation taxable under this subpart, shall, if dissolution takes
place between the thirtieth day of June and the succeeding first day of
January, be subject to a tax, for that part of such period in which it
had been doing business, computed in the same manner and at the same
rate as the minimum tax under subdivision two of this section, except
that the income forming the basis for proration shall be the income for
the calendar year in which such dissolution occurs; and the issued
capital stock, or interest credited to depositors of a savings bank,
shall be taken as of the date of dissolution; provided, however, that
the tax so computed shall be reduced one-half and an additional
one-twelfth for each month, or major portion thereof, between the date
of dissolution and the succeeding first day of January. If dissolution
occurs between the thirty-first day of December and the succeeding
sixteenth day of March, such trust company and savings bank shall be
subject to the same tax that would have been due from it on or before
the fifteenth day of March had it not been dissolved, except that such
tax shall be reduced one-twelfth for each month, or major portion
thereof, from the date of dissolution to the succeeding first day of
July, and shall be for the period beginning on the preceding first day
of July and ending on the date of dissolution. In no event shall the tax
under this subdivision be less than ten dollars or, as an alternative,
for the year nineteen hundred seventy-one and those following, not less
than twelve and one-half dollars.

7. In the case of a consolidation or merger of taxpayers, or in case a
national bank taxable under subpart two of this part shall be
consolidated or merged with a taxpayer under this subpart, or in case of
a series of such transactions, there shall be added to the net income of
the taxpayer resulting from such consolidations or mergers the net
income of the taxpayers which are consolidated or merged for the period
for which the taxpayer resulting from such consolidation or merger is
required to render any return under this subpart, except that net income
shall not be included if it has already been used as the basis for a tax
under this subpart, and the tax payable on the filing of such return
shall be based upon the entire net income reported therein. The
acquisition by a taxpayer, directly or indirectly, of the assets or
franchises of another taxpayer or national bank shall be deemed a merger
for the purposes of this section.

8. The tax imposed by this subpart shall be for the calendar year next
preceding the year in which it becomes due; except that with respect to
corporations subject to a tax imposed under subdivisions three, four,
five or six of this section, the tax shall be for the period therein
specified, and except that with respect to corporations required to file
a declaration of estimated tax and to make payments on account of such
estimated tax as provided by section thirty-five of this part, all
payments of tax within a calendar year, whether computed on the basis of
net income for the current calendar year or on the basis of net income
for the preceding calendar year, shall be for the calendar year in which
the payments are required to be made.

9. In the event that it shall be finally determined by a court of
competent jurisdiction that the taxes imposed on national banking
associations by subpart two of this part are unconstitutional or invalid
for the reason that they are not in conformity with the provisions of
section fifty-two hundred nineteen of the United States revised
statutes, then, in lieu of the taxes imposed by the provisions of this
subpart, every corporation that otherwise would have been subject to tax
under this subpart shall be subject to the tax imposed under part two as
of the effective date of part two, and all of the provisions of part
two, unless clearly inappropriate, shall be applicable except
subdivision four of section three; and, in such event, any payments
made, reports or returns filed or any act of the director of finance or
of a taxpayer purportedly under this part shall be treated as though
made, filed or done pursuant to part two.

10. Notwithstanding the provisions of subdivisions one and two, for
the years nineteen hundred seventy-three and those following, such city
may impose, by local law, a surtax of fifteen per centum of the
percentage of tax in effect for the year nineteen hundred seventy-two.