Sec. 3-6.1. Computing the tax measured by the subsidiary capital base

Tax Law, § 210(1)(e)

(a) Since income, gains, and losses from subsidiary capital are excluded from entire net income, a separate tax measured by the subsidiary capital base is imposed. A tax measured by the subsidiary capital base is imposed and must be paid in addition to the tax which is measured by the entire net income base, the capital base, the minimum taxable income base or the fixed dollar minimum. The rate of tax is 0.9 of a mill for each dollar of the subsidiary capital base.

(b) The term subsidiary capital base means that portion of the taxpayer's subsidiary capital allocated within New York State.

(c) Where a group of corporations files a combined report, a tax measured by the combined subsidiary capital base is imposed and must be paid in addition to the tax which is measured by the combined entire net income base, the combined minimum taxable income base, the combined capital base or the fixed dollar minimum that is attributable to the corporation paying the combined tax. The combined subsidiary capital base is the total of the amounts of subsidiary capital of each corporation included in the combined report with intercorporate eliminations (see section 3-6.6 of this Part), or the portion of such total allocated within New York State.