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Department of Taxation and Finance

Article 9—Taxes on transportation and transmission companies, telecommunications companies, and utility services providers

Information on this page relates to a tax year that began on or after January 1, 2024, and before January 1, 2025.

Domestic (incorporated under the Laws of New York State) telephone, telegraph, or transmission companies, and certain domestic transportation companies are subject to a franchise tax on capital stock under Tax Law § 183. Such companies may also be subject to an additional franchise tax on intrastate gross earnings under Tax Law § 184.

Foreign (incorporated outside New York State) telephone, telegraph, or transmission companies, and certain foreign transportation companies are subject to such taxes when doing any of the following in New York State:

  • exercising its corporate franchise;
  • doing business;
  • employing capital;
  • maintaining an office; or
  • owning or leasing property in a corporate or organized capacity.

Aviation corporations (including air freight forwarders acting as principal and like indirect air carriers) are subject to franchise tax under Article 9-A. For more information, see TSB-M-89(10)C, Taxability of Aviation Corporations under Article 9-A.

Transportation companies

Most railroad and trucking corporations are subject to franchise tax under Article 9-A.  However, they may instead elect to be taxed under Article 9, §§ 183 and 184. See Form CT-187, Election or Revocation of Election by Railroad and Trucking Corporations to be Taxable under Article 9.

Transportation companies doing business in the Metropolitan Commuter Transportation District (MCTD), may be subject to the MTA surcharge.

For more information on tax under §§ 183 and 184, see the instructions for Form CT-183, Transportation and Transmission Corporation Franchise Tax Return on Capital Stock; and CT-184, Transportation and Transmission Franchise Tax Return on Gross Earnings.

Telecommunications (telephone and telegraph) and transmission companies

If you are a telecommunications services corporation principally engaged in telecommunications transmission activity, you are subject to a franchise tax on capital stock under Tax Law § 183.

If you are principally engaged in a local telephone business, you are subject to an additional tax on intrastate gross earnings under Tax Law § 184.

If you are a provider of telecommunications services, you are also subject to an annual excise tax on your gross receipts from sales of telecommunication services under Tax Law § 186-e.

If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge.

For more information on these taxes, see the instructions for:

  • Form CT-183, Transportation and Transmission Corporation Franchise Tax Return on Capital Stock;
  • Form CT-184, Transportation and Transmission Franchise Tax Return on Gross Earnings; and
  • Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return.

Utility services providers

If you are a utility doing business in New York State, you are subject to tax under Article 9, § 186-a if you:

  • are subject to the supervision of the New York State Department of Public Service; and
  • transport, transmit, or distribute gas or electricity, by means of mains, pipes, or wires for ultimate consumption or use by the purchaser in this state.

If you are a utility that does not provide telecommunication services, you are taxed on your receipts from the transportation, transmission, or distribution of gas or electricity and must file Form CT-186-P, Utility Services Tax Return - Gross Income.

If you are a utility that provides telecommunication services, you are taxed on your gross income and must file Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return.

If you do business in the Metropolitan Commuter Transportation District (MCTD), you may be subject to the MTA surcharge.

For more information on the filing requirements and exemptions from tax on gross income for utilities, see the instructions for:

  • Form CT-186-P, Utilities Services Tax Return - Gross Income; and
  • Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return.

Repeal of Article 9 § 185 — For tax years beginning on or after January 1, 2018, Chapter 59 of the Laws of 2014 repealed Tax Law § 185. Since the tax under § 185 is paid in advance, the 2016 Form CT-185 was the last return required to be filed.

For more information on Article 9 taxes see:

 

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