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Definitions for Article 33 corporations

Alternative tax: The alternative tax base is computed using the entire net income plus the total salaries and compensation paid to the officers and stockholders. For additional information on how to compute the alternative tax, see the instructions for Form CT-33.

Business and investment capital: The business and investment capital base is the average fair market value of all the corporation's assets minus its average current liabilities minus subsidiary capital. The tax rate for business and investment capital is 0.16% (.0016).

Captive insurance company: A captive insurance company is any insurance company licensed by the Superintendent of Insurance under the provisions of Article 70 of the Insurance Law.

Entire net income: The entire net income base equals federal taxable income with certain modifications for items of income and deduction that New York State treats differently. The tax rate for entire net income for life insurance corporations is 7.1% (.071).

Estimated tax: Estimated tax is the amount of estimated franchise tax for the current tax year minus the amount of estimated allowable tax credits for the current tax year. A corporation doing business in the Metropolitan Commuter Transportation District that owes estimated franchise tax must also pay an estimated MTA surcharge.

Fixed dollar minimum: The fixed dollar minimum tax for life insurance corporations is $250.

Life insurance company premiums: Life insurance company premiums are taxed at a rate of 0.7% (.007).

Metropolitan transportation business tax (MTA surcharge): The metropolitan transportation business tax (MTA surcharge) applies if your corporation does an insurance business, employs capital, owns or leases property, or maintains an office in the Metropolitan Commuter Transportation District (MCTD). The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

Premiums: Premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, including premiums deposits, assessments, policy fees, membership fees, any separate costs assessed upon policy holders, and every other compensation for such contract.

Subsidiary: A subsidiary is a corporation of which over 50% of the voting stock is directly owned by the taxpayer.

Subsidiary capital: Subsidiary capital is all investments in the capital stock of subsidiary corporations plus all indebtedness from subsidiary corporations (other than accounts receivable acquired in the ordinary course of a trade or business for services rendered, or for sales of property held primarily for sale to customers).