§ 11-14 Cessation Tax.
RCNY § 11-14
(§ 11-603(1), Administrative Code.) (a) The tax is for all or any part of each calendar or fiscal year during which the taxpayer does business, employs capital, owns or leases property, or maintains an office in New York City. Accordingly, every taxpayer is required to pay a tax measured by its entire net income (or other applicable basis) up to the date on which it ceases to do business, employ capital, own or lease property, or maintain an office in New York City.
(b)A taxpayer may cease to be subject to tax under Subchapter 2 of Chapter 6 of Title 11, because of a change in the nature of its activities and, in such event, is required to pay a tax measured by its entire net income (or other applicable basis) up to the date of such cessation. As to such changes, see 19 RCNY § 11-05, supra.
(c)A corporation which is a member of a group taxed on the basis of a combined report, and which ceases to be subject to tax under Subchapter 2 of Chapter 6 of Title 11 may, in the discretion of the Commissioner of Finance be permitted to be included in the next combined report of the group, instead of paying a separate tax covering the period up to the date of such cessation.
