§ 1504. Allocation. (a) Allocation of entire net income. The portion\nof entire net income of a taxpayer to be allocated within the state\nshall be the amount determined by multiplying such income by the income\nallocation percentage determined by:\n (1) ascertaining the percentage which the taxpayer's New York premiums\nfor the taxable year bear to the taxpayer's total premiums for the\ntaxable year, and multiplying such percentage by nine,\n (2) ascertaining the percentage which total wages, salaries, personal\nservice compensation and commissions for the taxable year of employees,\nagents and representatives of the taxpayer within New York bear to the\ntotal wages, salaries, personal service compensation and commissions for\nthe taxable year of all the taxpayer's employees, agents and\nrepresentatives, and\n (3) adding the amounts determined under paragraphs one and two and\ndividing the sum by ten.\n (b) Definition of premiums. (1) For purposes of paragraph one of\nsubdivision (a), the term "premium" includes all amounts received as\nconsideration for insurance contracts, reinsurance contracts and annuity\ncontracts and shall include premium deposits, assessments, policy fees,\nmembership fees and every other compensation for such contract. The term\n"total premiums" means total gross premiums or deposit premiums or\nassessments, less returns thereon, on all policies, annuity contracts,\ncertificates, renewals, policies subsequently cancelled, insurance and\nreinsurance executed, issued or delivered on property or risks,\nincluding premiums for reinsurance assumed, less dividends on such total\npremiums, including unused or unabsorbed portions of premium deposits\npaid or credited to policyholders but not including deferred dividends\npaid in cash to policyholders on maturing policies, nor cash surrender\nvalues, and less premiums on reinsurance ceded.\n (2) For purposes of paragraph one of subdivision (a), "New York\npremiums" shall be determined as follows:\n (A) For all premiums other than premiums described in subparagraph (B)\nor (C) of this paragraph, "New York premiums" means that portion of\ntotal premiums written, procured or received on property or risks\nlocated or resident in New York and shall also include premiums written,\nprocured or received in this state on business which cannot be\nspecifically assigned as located or resident in any other state or\nstates, other than premiums described in subdivision (b) of section\nfifteen hundred twelve. Provided however, in the case of special risk\npremiums, "New York premiums" shall include only those premiums written,\nprocured or received in this state on property or risks located or\nresident in this state.\n (B) For premiums on reinsurance, "New York premiums" shall be\ndetermined as provided in subparagraph (A) of this paragraph except that\nwhere the location or residence of the property or risk covered by the\nreinsurance cannot be ascertained, "New York premiums" shall mean the\nportion of premiums for reinsurance determined by multiplying the amount\nof premiums from reinsurance ceded by each company to the taxpayer by\nthe percentage determined under paragraph one of subdivision (a) of this\nsection for each such ceding company for the preceding taxable year.\n (C) For premiums from marine insurance, "New York premiums" means (i)\nthat portion of premiums from such marine insurance as are written,\nprocured or received on property or risks located or resident in this\nstate and, (ii) to the extent not otherwise includible in "New York\npremiums" under clause (i) hereof, the premiums for such marine\ninsurance written within this state on property or risks which cannot be\nspecifically assigned as located or resident in any other state or\ncountry, provided however, in the case of special risk premiums, "New\nYork premiums" shall include only those premiums written, procured or\nreceived in this state on property or risks located or resident in this
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