S150-2013 Actions

• Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S150-2013 Memo

BILL NUMBER:S150

TITLE OF BILL:
An act
requiring the commissioner of taxation and finance to conduct a study
on requiring issuers of credit cards and debit cards to pay and collect
sales and use taxes and to pay such taxes directly to such commissioner

PURPOSE:
To require the Commissioner of Taxation and Finance to conduct a study
regarding the steps necessary for issuers of credit and debit cards
to submit sales and use taxes directly to the commissioner.

SUMMARY OF PROVISIONS:
Section 1. Authorizes and directs the commissioner of taxation to
conduct a study on requiring issuers of credit and debit cards to pay
and collect sales and use taxes and to pay such taxes directly to the
commissioner. Describes the contents of such study. Requires such
study to be submitted to the legislature on or before April 15, 2015.

Section 2. Effective Date

JUSTIFICATION:
A major source of failure to comply with New York State sales taxes
being remitted to the State from vendors who collect such taxes from
their customers, is the current system which relies solely upon the
thousands of vendors to voluntarily remit such sales taxes. However,
the companies that issue credit and debit cards have continuously
opposed any attempts to change the current system.

This bill would require the Commissioner of Taxation and Finance to
conduct a study of the current system, methods to improve the
collection of sales taxes, the technology that would be required to
implement a system of direct payment and the cost of implementing
such a system.

LEGISLATIVE HISTORY:
2012:  S.5310A - Amend and recommit to Investigations and
       Government Operations/A.7611A - Held for consideration
       in Ways and Means
2011 - S.5310 - Referred to Investigations and Government
       Operations/A.7611 Referred to Ways and Means

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.

S150-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          150
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT requiring the commissioner of taxation and finance to  conduct  a
 study  on requiring issuers of credit cards and debit cards to pay and
 collect sales and use taxes and to pay such  taxes  directly  to  such
 commissioner
 

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

 

Section 1. Study on credit card companies collecting certain taxes. 1.
 The commissioner of taxation and finance is authorized and  directed  to
 conduct  a study on requiring issuers of credit cards and debit cards to
 pay and collect sales and use taxes and pay such taxes directly to  such
 commissioner.
 2.  Such study shall include but not be limited to an investigation of
 the current system which relies solely upon the thousands of vendors  to
 voluntarily remit such sales taxes, methods to improve the collection of
 sales taxes from credit card and debit card issuers, the technology that
 would be required to implement a system of direct payment to the commis
 sioner  of  taxation  and  finance,  and the cost of implementing such a
 system.
 3. Such study shall be submitted to the legislature on or before April
 15, 2015.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD00968-01-3

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