NY TSB-H-81(33)C Article 9 Transportation/Trucking Corporation Tax 1981-05-20

A partnership (not a corporation) provides both interstate and intrastate trucking and transportation services. Is it subject to New York's Article 9 franchise tax on trucking/transportation businesses under sections 183 and 184 of the Tax Law?

Short answer: No -- sections 183 and 184 apply only to corporations, not partnerships, regardless of the nature of the business. Tax Law § 183 imposes a franchise tax on corporations formed for or principally engaged in specified transportation businesses (including trucking), and § 184 imposes an additional franchise tax on corporations already subject to § 183. Because the petitioning entity was a partnership -- not a corporation -- it fell outside both statutes' scope entirely, regardless of whether its trucking and transportation activities were interstate, intrastate, or both. The Department held the partnership was not required to file the corporate form CT-183/184 and should continue filing partnership returns (Form IT-204), as it had been doing.

Apply this to your situation

This page answers the general question as of 1981. Ezel answers yours, under current New York tax law, with citations.

Disclaimer: This is an official New York State Department of Taxation and Finance Advisory Opinion, issued by the Technical Services Bureau (identified with the earlier 'TSB-H' numbering prefix used alongside 'TSB-A' in 1981) at a taxpayer's request. It is limited to the facts set forth in it and binds the Department only with respect to the petitioner to whom it was issued, and only if that petitioner fully and accurately described all relevant facts; another taxpayer cannot rely on it. It reflects the law, regulations, and Department policy in effect when issued and may since have changed. Taxpayer-identifying details are redacted. New York State and local sales taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice. Consult a licensed New York tax professional about your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

A partnership providing both interstate and intrastate trucking and transportation services asked whether it was subject to New York's Article 9 franchise tax on trucking/transportation businesses under Tax Law §§ 183 and 184. The answer turned entirely on entity type, not on the nature of the business: both statutes, by their own terms, apply only to CORPORATIONS -- § 183 taxes corporations "formed for or principally engaged in" specified transportation businesses including trucking, and § 184 imposes an additional tax on corporations already subject to § 183. Since the petitioner was organized as a partnership rather than a corporation, it fell outside both statutes regardless of how similar its trucking activities were to a corporate competitor's. The Department confirmed the partnership should continue filing partnership returns (Form IT-204) rather than the corporate CT-183/184 form.

What this means for you

Entity form, not business activity, determines whether sections 183/184 apply

If your trucking or transportation business operates as a partnership (or another non-corporate entity) rather than a corporation, sections 183 and 184 simply don't reach you -- these statutes are corporation-specific by their own text, and it doesn't matter that a corporate competitor doing the identical business would be taxed under them.

Don't assume industry-specific franchise taxes apply to every entity in that industry

New York's various industry-specific franchise taxes (trucking, utilities, insurance, banking, etc.) are frequently drafted to reach only corporations -- always check the entity-type threshold before assuming your business is covered just because your activities match the statute's description.

Common questions

Q: If my trucking business is organized as a partnership, do I need to worry about sections 183 and 184?
A: No -- those sections apply only to corporations; a partnership engaged in identical trucking activities stays outside their scope and continues filing as a partnership.

Q: What if my partnership later incorporates?
A: This ruling doesn't address that scenario, but a corporation formed for or principally engaged in trucking would generally become subject to sections 183 and 184 upon incorporation.

Citations and references

Statutes and guidance:

Tax Law § 183
Tax Law § 184

Source

Original ruling text

New York State Department of Taxation and Finance

TSB-H-81(33)C
Corporation Tax
May 20, 1981

Taxpayer Services Division
Technical Services Bureau

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. Z810507A

On May 7, 1981 a Petition for Advisory Opinion was filed by Walter A.
Woodka, Jr., 115 North Greenbush Road, Troy, New York 12180.
The issue raised by Petitioner is whether a partnership engaged in the
business of providing both interstate and intrastate trucking and transportation
services is subject to tax under Sections 183 and 184 of the Tax Law.
Section 183 of the Tax Law imposes a franchise tax on corporations which
are formed for or principally engaged in the conduct of specified transportation
businesses, including trucking. Section 184 of the Tax Law imposes an additional
franchise tax on corporations subject to tax under Section 183.
Since the partnership in question is not a corporation, within the meaning
and intent of Sections 183 and 184 of the Tax Law, it is not subject to the taxes
imposed thereunder and is not required to file form CT-183/184. Therefore, it
should continue to file partnership returns (Form IT-204), as it has been doing.

DATED:

May 19, 1981

JAMES H. TULLY., COMMISSIONER
TP-8 (4/80)

s/GABRIEL B. DI CERBO
Deputy Director
Technical Services Bureau

LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR

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