186-c. Metropolitan transportation business tax surcharge on utility services and excise tax on sale of telecommunication services.
1. (a) (1) Every utility doing business in the metropolitan commuter transportation district shall pay a tax surcharge, in addition to the tax imposed by section one hundred eighty-six-a of this article, to be computed at the rate of seventeen percent of the tax imposed under such section after the deduction of credits otherwise allowable under this article except any utility credit provided for by article thirteen-A of this chapter; provided, however, that such rates of tax surcharge shall be applied only to that portion of the tax imposed under section one hundred eighty-six-a of this article after the deduction of credits otherwise allowable under this article, except any utility credit provided for by article thirteen-A of this chapter, which is attributable to the taxpayer's gross income or gross operating income from business activity carried on within the metropolitan commuter transportation district.
(2) Provided however, that in the case of the tax imposed under paragraph (a) of subdivision one of section one hundred eighty-six-a of this article (relating to providers of telecommunications services) such tax surcharge shall be calculated as if the tax imposed under section one hundred eighty-six-a of this article were imposed at a rate of three and one-half percent.
(b) (1) In addition to the surcharge imposed by paragraph (a) of this subdivision, there is hereby imposed a surcharge on the gross receipts from telecommunication services, except for the gross receipts from mobile telecommunication services that are subject to tax under subparagraph two of this paragraph, relating to the metropolitan commuter transportation district at the rate of seventeen percent of the state tax rate under section one hundred eighty-six-e of this article. All the definitions and other provisions of section one hundred eighty-six-e of this article shall apply to the tax imposed by this subparagraph with such modification and limitation as may be necessary (including substituting the words "metropolitan commuter transportation district" for "state" where appropriate) in order to adapt the language of such section one hundred eighty-six-e of this article to the surcharge imposed by this subparagraph within such metropolitan commuter transportation district so as to include (i) any intra-district telecommunication services, (ii) any inter-district telecommunication services which originate or terminate in such district and are charged to a service address therein regardless of where the amounts charged for such services are billed or ultimately paid, and (iii) as apportioned to such district, private telecommunication services. Provided however, such tax surcharge shall be calculated as if the tax imposed under section one hundred eighty-six-e of this article were imposed at a rate of three and one-half percent.
(2) In addition to the surcharge imposed by paragraph (a) of this subdivision, there is hereby imposed a surcharge on the gross receipts from mobile telecommunication services relating to the metropolitan commuter transportation district at the rate of seven-tenths and two-hundredths and one-thousandth percent on and after May first, two thousand fifteen. All the definitions and other provisions of section one hundred eighty-six-e of this article shall apply to the tax imposed by this subparagraph with such modification and limitation as may be necessary (including substituting the words "metropolitan commuter transportation district" for "state" where appropriate) in order to adapt the language of such section one hundred eighty-six-e of this article to the surcharge imposed by this subparagraph within such metropolitan commuter transportation district so as to include any mobile telecommunications service provided by a home service provider where the mobile telecommunications customer's place of primary use is within such metropolitan commuter transportation district.
2. If the tax imposed under section one hundred eighty-six-a of this article is on the taxpayer's gross income, the portion of the tax attributable to gross income from business activity carried on within the metropolitan commuter transportation district shall be determined by multiplying the tax imposed under section one hundred eighty-six-a of this article by the ratio of the taxpayer's gross income from all sources within the metropolitan commuter transportation district to its gross income from all sources within the entire state.
3. If the tax imposed under section one hundred eighty-six-a of this article is on the taxpayer's gross operating income, the portion of the tax attributable to gross operating income from business activity carried on within the metropolitan commuter transportation district shall be determined by multiplying the tax imposed under section one hundred eighty-six-a of this article by the ratio of the taxpayer's gross operating income from all sources within the metropolitan commuter transportation district to its gross operating income from all sources within the entire state.
4. The provisions concerning reports and returns under subdivision four of section one hundred eighty-six-a and subdivision six of section one hundred eighty-six-e of this article, as the case may be, shall be applicable to this section. An extension pursuant to section one hundred ninety-three of this article shall be allowed only if a taxpayer files with the commissioner an application for extension in such form and manner as said commissioner may prescribe by regulation and pays on or before the date of such filing in addition to any other amounts required under this article, either ninety percent of the entire tax surcharge required to be paid under this section for the applicable period, or not less than the tax surcharge shown on the taxpayer's report for the preceding taxable year, if such preceding taxable year was a taxable year of twelve months. The tax surcharge imposed by this section shall be payable to the commissioner in full at the time the report is required to be filed, and such tax surcharge or the balance thereof, imposed on any taxpayer which ceases to exercise its franchise or be subject to the tax surcharge imposed by this section shall be payable to the commissioner at the time the report is required to be filed, provided such tax surcharge of a domestic corporation which continues to possess its franchise shall be subject to adjustment as the circumstances may require; all other tax surcharges of any such taxpayer, which pursuant to the foregoing provisions of this section would otherwise be payable subsequent to the time such report is required to be filed, shall nevertheless be payable at such time. All of the provisions of this article presently applicable to section one hundred eighty-six-a and section one hundred eighty-six-e of this article, as the case may be, are applicable to the tax surcharge imposed by this section.
5. Notwithstanding any other provision of state or local law, the tax surcharge imposed by this section shall not be allowed as a deduction and shall, to the extent deductible in determining federal adjusted gross income, be added to federal adjusted gross income, in the computation of any tax imposed under this chapter or any other chapter of state or local law. Furthermore, the credits otherwise allowable under this article shall not be allowed against the tax surcharge imposed by this section.
6. The term metropolitan commuter transportation district as used in this section shall be defined pursuant to section twelve hundred sixty-two of the public authorities law.
Last modified: February 3, 2019