Sec. 18-1.1. General

Tax Law, § 1455(a), (b)

(a) Every corporation subject to tax under article 32 of the Tax Law must compute its basic tax (see Subpart 18-2 of this Part - Basic Tax, Measured by Entire Net Income) and its alternative minimum tax (see Subparts 18-4, 18-5 and 18-6 of this Part). Every taxpayer must pay the basic tax unless the alternative minimum tax is greater, in which case the taxpayer must pay the alternative minimum tax.

(b) The basic tax is measured by the taxpayer's entire net income, or portion thereof allocated to New York State, and is imposed at the rate of nine percent.

(c) The alternative minimum tax is the largest of three bases.

(1) The bases are:

(i) 0.1 of a mill (except as described in paragraph [2] of this subdivision) upon each dollar of taxable assets, or portion thereof allocated to New York State (see Subpart 18-5 of this Part - Alternative Minimum Tax Measured by Taxable Assets);

(ii) three percent of alternative entire net income, or portion thereof allocated to New York State (see Subpart 18-4 of this Part - Alternative Minimum Tax Measured by Alternative Entire Net Income); and

(iii) $250 (see Subpart 18-6 of this Part - Alternative Minimum Tax Measured by the Fixed Minimum Amount).

(2) In certain cases the alternative minimum tax measured by taxable assets is imposed at the rate of 0.04 of a mill or 0.02 of a mill upon each dollar of taxable assets, or portion thereof allocated to New York State. A taxpayer which has an outstanding net worth certificate issued to the Federal Deposit Insurance Corporation or to the Federal Savings and Loan Insurance Corporation is not subject to the alternative minimum tax measured by taxable assets for that portion of the taxable year in which such certificate is outstanding. (See section 18-5.1 of this Part - Computation of the alternative minimum tax measured by taxable assets.)