Sec. 17-3.1. Cessation periods

Tax Law, § 1451(a)

(a) The franchise tax is imposed for each taxable year during which a taxpayer exercises its corporate franchise, or does business in a corporate or organized capacity in New York State. Accordingly, for purposes of article 32 of the Tax Law, every taxpayer which has a corporate franchise granted by New York State is subject to tax up to the date on which it ceases to possess such franchise; and every other taxpayer is subject to tax up to the date on which it ceases to do business in a corporate or organized capacity in New York State.

(b) A taxpayer which has a corporate franchise granted by New York State may cease to possess a franchise as a result of its dissolution, merger, or consolidation into another corporation, or the revocation or annulment of its charter.

(c) A taxpayer may cease to be subject to tax under article 32 of the Tax Law because of a change in classification. (See section 16-3.5 of this Title - Change in classification.) In some cases, a corporation may then become subject to tax under some other article of the Tax Law.

(d) For rules concerning the time for filing cessation returns, see section 21-4.3 of this Title.