1. (a) A tax exempt DISC is one which during a taxable year:

   1. (1) receives more than five percent of its gross receipts from the sale of inventory or other property which it purchased from stockholders;
   2. (2) receives more than five percent of gross rentals from the rental of property which it purchased or rented from its stockholders; or

   3. (3) receives more than five percent of its total receipts other than from sales or rentals from its stockholders.

      A tax exempt DISC must file an information report on or before the 15th day of the ninth month following the close of its taxable year.

2. (b) If a corporation is subject to tax under article 9-A and owns stock in a DISC and such DISC is a tax exempt DISC, the corporation must file a consolidated report with such DISC.

Tax Law, §§ 208(9)(i) and 211(1)(a)