Sec. 1-1.1. Nature of tax

Tax Law, § 209(1) and (4)

Article 9-A of the Tax Law imposes a franchise tax on every domestic or foreign corporation for the privilege of exercising its corporate franchise, or of doing business, or of employing capital or of owning or leasing property in New York State in a corporate or organized capacity or of maintaining an office in New York State. The tax is imposed on all domestic corporations for the privilege of existing as a corporation in New York State and on every foreign corporation for the privilege of doing business, employing capital, owning or leasing property in a corporate or organized capacity or of maintaining an office in New York State for all or any part of each of its fiscal or calendar years. All corporations are subject to the franchise tax under article 9-A of the Tax Law, except corporations which are subject to franchise tax under some other article of the Tax Law or which are exempt from tax. Certain corporations, which are subject to the tax on the furnishing of utility services imposed by section 186-a of the Tax Law, are also subject to tax under article 9-A of the Tax Law. (See Subpart 1-3 of this Part—Corporations Subject to Tax.)