TAXATION AND REVENUE SYSTEMS—NEW YORK. 
165 
licenses, and fees” because of their close analogy to 
the fees charged for incorporation in other states. 
The franchise taxes should not be confused with the 
taxation of “special franchises” or the privilege to go 
on, over, or under the public streets, which are taxed 
as real estate under the general property taxes. 
Franchise taxes on corporations in general.—This tax 
is briefly described as follows: For the privilege of 
doing business or exercising its corporate franchises, 
every corporation, joint-stock company, or associa 
tion, doing business in the state, except insurance 
companies and certain other corporations mentioned 
below, is required to pay on the amount of its capital 
stock employed within the state (determined by taking 
such portion of the total capital stock as the gross 
assets employed in any business within the state bears 
to the gross assets wherever employed) the following 
tax: 
1. If the dividends upon the capital stock amount to 6 per cent 
or more than 6 per cent, the tax is at the rate of one-fourth of 1 mill 
for each 1 per cent of the dividends paid or declared upon such 
stock. 
2. If such dividend or dividends amount to less than 6 per cent 
of the par value of the capital stock, and the assets do not exceed 
the liabilities, exclusive of capital stock, or the average price at 
which such stock sold during said year did not equal or exceed its 
par value, or if no dividend was declared, the rate is three-fourths 
of 1 mill on each dollar. 
3. If such dividend or dividends amount to less than 6 per cent 
of the par value of the capital stock, and the assets exceed the 
liabilities exclusive of the capital stock by an amount equal to or 
greater than the par value of the capital stock, or if the average 
price at which such stock sold during said year is equal to or greater 
than the par value, the rate is 1J mills on each dollar of the valua 
tion of the capital stock; such valuation must not be less than the 
par value of such stock, the difference between the assets and lia 
bilities exclusive of the capital stock, or the average price at which 
such stock sold during said year. 
4. If such corporation or company has more than one kind of 
capital stock, an<i upon one of such kinds of stock a dividend 
amounting to 6 per cent or more has been declared, and upon the 
other no dividend has been declared, or the dividend amounts to 
less than 6 per cent, the rate is fixed at one-fourth of 1 mill for each 
1 per cent of the dividends declared on the capital stock upon 
which the dividends amounted to 6 per cent or more. In addition, 
a tax is charged upon the capital stock upon which was declared a 
dividend of less than 6 per cent as described in paragraph 3 
preceding. 
5. All corporations not covered by the provisions of paragraphs 
1 to 4 are required to pay a tax not less than would be produced by 
an assessment of 1J mills on each dollar of the actual value of its 
capital stock or 1J mills upon each dollar of such capital stock at 
the average price at which said stock sold during the year. 
Banks, savings banks, institutions for savings; title guaranty, 
insurance, or surety companies; trust companies organized under 
the laws of New York; laundering corporations, manufacturing cor 
porations to the extent only of the capital actually employed in the 
state in manufacturing and in the sale of the product of such manu 
facturing, mining corporations wholly engaged in mining ores within 
the state, agricultural and horticultural societies; companies oper 
ating elevated or surface railroads not operated by steam or formed 
for supplying water or gas for electric or steam heating, lighting, or 
power purposes are exempt from this tax, but to gain such exemp 
tion each laundering, manufacturing, and mining company must 
have at least 40 per cent of its capital invested in the state, and used 
by it in its laundering, manufacturing, or mining business in the 
state. 
An “additional franchise tax ” is levied upon corporations formed 
for steam surface railroad, canal, steamboat, ferry, express, navi 
gation, pipe-line, transfer, baggage express, telegraph, telephone, 
palace car, or sleeping car purposes, and all other transportation 
companies not liable to the taxes described in the two following 
paragraphs. The rate per annum is five-tenths of 1 per cent of the 
gross earnings in the state, which includes gross earnings from 
its business originating and terminating within the state, but not 
earnings derived from business of an interstate character. 
Elevated railroads or surface roads not operated by steam pay 1 
per cent of gross earnings and 3 per cent on dividends in excess of 4 
per cent upon actual amount of paid-up capital employed by such 
corporations or company. Any such railroad corporation whose 
property is leased to another railroad corporation is only required 
to pay a tax of 3 per cent upon the dividends paid in excess of 4 per 
cent upon the amount of its capital stock. 
Waterworks, gas, electric, or steam heating, lighting, and power 
companies pay five-tenths of 1 per cent of gross earnings and 3 per 
cent of dividends in excess of 4 per cent. 
Franchise tax on insurance corporations.—An annual 
state tax for the privilege of exercising corporate fran 
chises or for carrying on business within the state equal 
to 1 per cent on the gross premiums received during 
the preceding calendar year for business done at any 
time in the state, which gross amount includes all 
premiums received during such year, whether such 
premiums were in the form of money, notes, credits, 
or any other substitute for money, is paid annually 
into the treasury of the state on or before June 1 bv 
the following corporations: 
(1) Every domestic insurance corporation incorporated by or 
pursuant to a general or special law. 
(2) Every insurance corporation organized by or pursuant to the 
laws of any other state of the United States and doing business in 
the state, except fire and marine insurance business. 
(3) Every insurance corporation organized under the laws of any 
state without the United States, or of any foreign country, except 
life, health, or casualty insurance business, and doing business in 
this state; but the tax on gross premiums of a corporation so incor 
porated, organized, or formed and doing a fire or marine insurance 
business within the state shall be equal to five-tenths of 1 per cent. 
This section does not apply to a fraternal beneficiary society, 
order, or association, a corporation for the insurance of domestic 
animals, a town or county cooperative insurance corporation, nor to 
any corporation subject to the supervision of or required by or in 
pursuance of law to report to the superintendent of banks. 
Other franchise taxes.—Trust companies, domestic, pay an annual 
franchise tax equal to 1 per cent of the capital stock, surplus, and 
undivided profits. 
Savings banks, domestic, pay an annual tax for the privilege of 
exercising their corporate franchise equal to 1 per cent of the par 
value of their surplus and undivided earnings. 
Savings banks, trust companies, and insurance companies obtain 
a credit on their state franchise tax for an amount equal to 1 per 
cent on the par value of state bonds bearing interest at a rate not 
exceeding 3 per cent held by them. 
Foreign bankers pay 5 per cent on interest earned on money 
loaned in the state. 
E. BUSINESS TAXES, LICENSES, AND FEES. 
Liquor taxes .■—Trafficking in liquors to be drunk on the premises— 
in cities, towns, etc., of 1,500,000 inhabitants or more, $1,200; 
500,000 to 1,500,000, $975; 50,000 to 500,000, $750; 10,000 to 50,000, 
$525; 5,000 to 10,000, $450; 1,200 to 5,000, $300; in any other place,