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S3473-2013 Actions

• May 6, 2013: ADVANCED TO THIRD READING
• May 1, 2013: 2ND REPORT CAL.
• Apr 30, 2013: 1ST REPORT CAL.525
• Apr 16, 2013: REPORTED AND COMMITTED TO FINANCE
• Feb 4, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3473-2013 Meetings

Finance: Apr 30, 2013, Investigations and Government Operations: Apr 16, 2013

S3473-2013 Calendars

Floor Calendar: May 1, 2013 , Floor Calendar: May 6, 2013 , Floor Calendar: May 7, 2013 , Floor Calendar: May 8, 2013 , Floor Calendar: May 20, 2013 , Floor Calendar: May 21, 2013

S3473-2013 Votes

S3473-2013 Memo

BILL NUMBER:S3473              REVISED 2/4/13

TITLE  OF BILL:  An act to amend the tax law, in relation to the imposi-
tion of the personal income tax upon foreign partnerships

PURPOSE OF THE BILL: Under current law, foreign partnerships and out-of-
state limited liability companies taxed as a partnership are discouraged
from doing business with New York fulfillment service providers  because
of  the  potentially adverse tax consequences they may face. The concern
is that an LLC or partnership that would not otherwise be subject to New
York State taxes will become subject to taxation in New York because  of
its  purchase  of services from a New York fulfillment service provider.
The purpose of this bill is to grant the same exemptions to partnerships
and LLCs that are taxed as partnerships that are granted to corporations
under Article 9-A of the Tax law.

SUMMARY OF PROVISIONS: Section 1: Amends subsection (f) of  section  601
of  the tax law by designating subdivision (1) and adding a new subdivi-
sion (2) to provide that foreign partnerships and non-resident  partners
of  foreign partnerships will not have nexus with the state because they
use fulfillment services of an entity or person of the state.

Section 2: Provides that this act  shall  take  effect  immediately  and
shall apply to taxable years beginning on or after January 1, 2014.

JUSTIFICATION:  The  purpose  of this bill is to provide a level playing
field for partnerships and  LLCs  with  the  same  advantages  currently
granted  to 9-A corporations This legislation assures out-of-state busi-
nesses that their use of New York fulfillment services will  not  result
in  adverse  tax  consequences,  regardless  of  whether the business is
formed as a corporation, partnership, or LLC.  This  encourages  out-of-
state  businesses  in  New York and demonstrates the commitment that New
York is truly "Open for Business."

PRIOR LEGISLATIVE HISTORY: 2012 - S.7542.

BUDGET IMPLICATIONS AND LOCAL IMPACT: Minimal

EFFECTIVE DATE: The bill would take effect immediately.

S3473-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         3473
 2013-2014 Regular Sessions
 I N  SENATE
 February 4, 2013
 
 Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern
 ment Operations
 

AN ACT to amend the tax law,  in  relation  to  the  imposition  of  the
 personal income tax upon foreign partnerships
 

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

 

Section 1. Subsection (f) of section 601 of the tax law, as amended by
 chapter 248 of the laws of 1997, is amended to read as follows:

 (f) Partners and partnerships. (1) A partnership as such shall not  be
 subject to tax under this article. Persons carrying on business as part
 ners  shall  be liable for tax under this article only in their separate
 or individual capacities. As used in this article,  the  term  "partner
 ship"  shall  include, unless a different meaning is clearly required, a
 subchapter K limited liability company. The term "subchapter  K  limited
 liability  company" shall mean a limited liability company classified as
 a partnership for federal income tax purposes. The term "limited liabil
 ity company" means a domestic limited liability  company  or  a  foreign
 limited  liability company, as defined in section one hundred two of the
 limited liability company law, a limited  liability  investment  company
 formed  pursuant  to section five hundred seven of the banking law, or a
 limited liability trust company formed pursuant to section  one  hundred
 two-a of the banking law.
 (2)  A  FOREIGN  PARTNERSHIP SHALL NOT BE DEEMED TO HAVE NEXUS IN THIS
 STATE, AND THE NON-RESIDENT PARTNERS OF SUCH FOREIGN  PARTNERSHIP  SHALL
 NOT  BE DEEMED TO HAVE NEW YORK-SOURCE INCOME, BY REASON OF SUCH FOREIGN
 PARTNERSHIP USING FULFILLMENT SERVICES OF A PERSON OR ENTITY AND  OWNING
 PROPERTY  STORED ON THE PREMISES OF SUCH PERSON OR ENTITY IN CONJUNCTION
 WITH SUCH SERVICES. THE TERM "FULFILLMENT SERVICES" SHALL  MEAN  ANY  OF
 THE  FOLLOWING SERVICES PERFORMED BY AN ENTITY ON ITS PREMISES ON BEHALF
 OF A PURCHASER: (I) THE ACCEPTANCE OF ORDERS ELECTRONICALLY OR BY  MAIL,
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08544-01-3
 
       S. 3473                             2
 TELEPHONE,  TELEFAX  OR INTERNET; (II) RESPONSES TO CONSUMER CORRESPOND
 ENCE OR INQUIRIES ELECTRONICALLY  OR  BY  MAIL,  TELEPHONE,  TELEFAX  OR
 INTERNET;  (III) BILLING AND COLLECTION ACTIVITIES; OR (IV) THE SHIPMENT
 OF ORDERS FROM AN INVENTORY OF PRODUCTS OFFERED FOR SALE BY THE PURCHAS
 ER.
 

S 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2014.

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