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Article 9—Taxes on transportation and transmission companies, telecommunications companies, utility services providers, and farmers’ cooperatives and agricultural cooperatives

Generally, if you are a transportation or transmission company, you are subject to

  • a franchise tax on capital stock under Tax Law section 183, and
  • an additional tax on intrastate gross earnings under Tax Law section 184.

Aviation corporations (including air freight forwarders acting as principal and like indirect air carriers) are subject to tax under Article 9-A. For more information, see TSB-M-89(10)C, Taxability of Aviation Corporations under Article 9-A.

Transportation companies

Most railroad and trucking corporations are subject to tax under the general business corporation tax (Article 9-A).

Railroad or trucking companies may instead elect to be taxed under Article 9, sections 183 and 184. See Form CT-187, Election or Revocation of Election by Railroad and Trucking Corporations to be Taxable under Article 9.

Transportation companies that are incorporated outside of New York State (foreign corporations) may also be subject to a license fee or maintenance fee. If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge.

For more information on section 183 and section 184 taxes, see the instructions for Form CT-183, Transportation and Transmission Corporation Franchise Tax Return on Capital Stock; and CT-184, Transportation and Transmission Franchise Tax Return on Gross Earnings.

Telecommunications companies

If you are a telecommunications services corporation principally engaged in telecommunications transmission activity, you are subject to a franchise tax on capital stock under Tax Law section 183.

If you are principally engaged in a local telephone business, you are subject to an additional tax on intrastate gross earnings under Tax Law section 184.

If you are a provider of telecommunications services, you are also subject to an annual excise tax on your gross receipts from sales of telecommunication services under Tax Law section 186-e.

If you are a foreign corporation (incorporated outside New York State), you may also be subject to a license fee or maintenance fee. If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge.

For more information on these taxes, see the instructions for Form CT-183, Transportation and Transmission Corporation Franchise Tax Return on Capital Stock; Form CT-184, Transportation and Transmission Franchise Tax Return on Gross Earnings; and Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return.

Utility services providers

If you are a utility doing business in New York State, you are subject to tax under Article 9, section 186-a if you:

  • are subject to the supervision of the New York State Department of Public Service, and
  • transport, transmit, or distribute gas or electricity, by means of mains, pipes, or wires for ultimate consumption or use by the purchaser in this state.

If you are a utility that does not provide telecommunication services, you are taxed on your receipts from the transportation, transmission, or distribution of gas or electricity and must file Form CT-186-P, Utility Services Tax Return - Gross Income.

If you are a utility that provides telecommunication services, you are taxed on your gross income and must file Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return.

If you are a foreign corporation (incorporated outside New York State), you may also be subject to a license fee or maintenance fee. If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge.

For more information on the filing requirements and exemptions from tax on gross income for utilities, see the instructions for Form CT-186-P or Form CT-186-E.

Farmers' cooperatives and agricultural cooperatives

You are subject to an annual franchise tax if you are:

  • a farmer, fruit-grower, or other agricultural corporation operated on a cooperative basis, or
  • a receiver, liquidator, referee, trustee, assignee, or other fiduciary, appointed by the court, who conducts the business of a cooperative agricultural corporation.

Your annual franchise tax is based on the amount of the corporation's capital stock within New York State during the preceding year.

For more information, see the instructions for Form CT-185, Cooperative Agricultural Corporation Franchise Tax Return.

For more information on Article 9 taxes see:

 

Updated: December 16, 2013