§ 11-23 Alternative Measures for Computation of Tax.

(§ 11-604(1)(a), Administrative Code.)

   (a)   Every corporation subject to tax under Subchapter 2 of Chapter 6 of Title 11 is required to pay:

      (1)   a tax computed by one of the four alternative methods set forth below (whichever results in the highest tax), except that a real estate investment trust, as defined in subdivision 7 of § 11-603 of the Administrative Code, is required to pay only the tax determined under alternative (i) or alternative (iv), whichever is greater:

         (i)   five and one-half percent for taxable years beginning before January 1, 1971 and six and seven-tenths percent for taxable years beginning on or after such date, of its entire net income 19 RCNY § 11-27, infra, or the portion thereof allocated to New York City;

         (ii)   five and one-half percent for taxable years beginning before January 1, 1971 and six and seven-tenths percent for taxable years beginning on or after such date, of an amount equal to 30 percent of the balance remaining after adding to entire net income compensation paid to officers and certain stockholders and deducting therefrom $15,000 (or a proportionate part thereof in the case of a report for less than a year) and any net loss for the reported year, or the portion of such amount allocated to New York City;

         (iii)   one mill (or one-fourth of a mill in the case of a cooperative housing corporation or a housing company organized and operated pursuant to the provisions of Article 2 or 4 of the Private Housing Finance Law) of the total of its business capital and investment capital, or the portion thereof allocated to New York City;

         (iv)   $25; plus

      (2)   a tax computed at the rate of one-half mill on the amount of its subsidiary capital, if any, or the portion thereof allocated to New York City. See 19 RCNY §§ 11-45 through 11-49, infra as to the tax measured by subsidiary capital.

   (b)   For purposes of this section, a cooperative housing corporation means a corporation:

      (1)   having one and only one class of stock outstanding,

      (2)   each of the stockholders of which is entitled, solely by reason of his ownership of stock in the corporation, to occupy for dwelling purposes a house, or an apartment in a building, owned or leased by such corporation,

      (3)   no stockholder of which is entitled (either conditionally or unconditionally) to receive any distribution not out of earnings and profits of the corporation except on a complete or partial liquidation of the corporation, and

      (4)   eighty percent or more of the gross income of which for the taxable year is derived from tenant-stockholders.