S T A T E   O F   N E W   Y O R K
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    S. 785                                                    A. 157

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN  SENATE -- Introduced by Sen. DIAZ -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and Government Operations

IN  ASSEMBLY -- Introduced by M. of A. KAVANAGH, COLTON -- read once and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to requiring issuers of  credit
  cards  and  debit cards to pay and collect sales and use taxes and pay
  such taxes to the commissioner of taxation and finance

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 1168 to read
as follows:
  S  1168. COLLECTION AND PAYMENT OF TAXES BY PROCESSORS OF CREDIT CARDS
AND DEBIT CARDS. (A) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO  THE
CONTRARY,  AN  ISSUER  OF  CREDIT  CARDS  OR  DEBIT CARDS, AS DEFINED IN
SECTION FIVE HUNDRED ELEVEN OF THE GENERAL BUSINESS LAW,  SHALL  COLLECT
AND  PAY  TAXES IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS
CHAPTER, AND SHALL BE SUBJECT TO ALL PROVISIONS OF SUCH  ARTICLES  AS  A
PERSON REQUIRED TO COLLECT TAX, AS DEFINED IN SUBDIVISION ONE OF SECTION
ELEVEN  HUNDRED THIRTY-ONE OF THIS CHAPTER ON ALL TRANSACTIONS CONDUCTED
WITH A CREDIT OR DEBIT CARD OF THE ISSUER, PROVIDED,  HOWEVER,  NOTWITH-
STANDING  ANY  LAW, RULE OR REGULATION TO THE CONTRARY, SUCH TAXES SHALL
BE PAID DIRECTLY TO THE COMMISSIONER BY THE ISSUER.
  (B) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO  THE  CONTRARY,  ON
ANY  TRANSACTION  CONDUCTED  WITH  A DEBIT OR CREDIT CARD OF THE ISSUER,
WHEREIN THE ISSUER IS REQUIRED TO COLLECT  AND  PAY  TAXES  PURSUANT  TO
SUBDIVISION (A) OF THIS SECTION, THE VENDOR OF TANGIBLE PERSONAL PROPER-
TY OR SERVICES INVOLVED IN SAID TRANSACTION SHALL NOT BE REQUIRED TO PAY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00496-01-3
              

S. 785                              2                             A. 157

AND  COLLECT  TAXES PURSUANT TO ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF
THIS CHAPTER, RATHER THIS DUTY SHALL BE IMPOSED UPON PROCESSORS.
  (C)  FOR  PURPOSES  OF  THIS  SECTION, PROCESSOR SHALL MEAN ANY ENTITY
WHICH CONTRACTS WITH VENDORS TO PROCESS THEIR CREDIT CARD  RECEIPTS  AND
WHO  FOR  A FEE, OBTAIN FUNDS FOR VENDORS FROM SUCH ISSUERS OF CREDIT OR
DEBIT CARDS.
  S 2. This act shall take effect on the first of October next  succeed-
ing the date on which it shall have become a law. Effective immediately,
any  rules  and  regulations  necessary for the timely implementation of
this act on its effective date may be  promulgated  on  or  before  such
date.