Tax News

CCH (cch.taxgroup.com) reports:

Recently enacted New York legislation modifies bank franchise tax transitional provisions related to the enactment and implementation of the federal Gramm-Leach-Bliley Act. The 2007 budget bill previously extended the transitional provisions through taxable years beginning before 2010. (TAXDAY, 2007/04/04, S.29)
The new legislation specifies that a corporation or banking corporation in existence before 2008 and subject to the Article 32 bank franchise tax for its last taxable year beginning before 2008 will continue to be subject to that tax for all taxable years beginning after 2007 and before 2010, unless a transaction or series of transactions occurring on or after January 1, 2008, results in the corporation no longer meeting the requirements to be a banking corporation or satisfying the requirements for a corporation to elect to be taxable under Article 32.
A similar provision applies for purposes of the New York City banking corporation tax.
However, a banking corporation in existence prior to 2010 and subject to the Article 32 bank franchise tax for its last taxable year beginning before 2010 may be taxable under Article 32 for taxable years beginning on or after January 1, 2010, only if the corporation, in that taxable year, meets the requirements to be a banking corporation or satisfies applicable requirements for a corporation to elect to be taxable under Article 32.
Ch. 96 (S.B. 6354), Laws 2007, effective June 29, 2007.