Bill S4128-2013

Prohibits the New York state department of taxation and finance from charging a fee for applications for a certificate of registration pursuant to a re-registration program

Prohibits the New York state department of tax and finance from charging a fee for applications for a certificate of registration pursuant to a re-registration program.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Mar 11, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S4128

TITLE OF BILL: An act to amend section 1 of part LL-1 of chapter 57 of the laws of 2008, relating to directing the commissioner of taxation and finance to institute a re-registration program, in relation to prohibiting the New York state department of taxation and finance from charging a vendor re-registration fee; to authorize the refund of all re-registration fees collected by the New York state department of taxation and finance; and to amend the tax law, in relation to prohibiting the New York state department of taxation and finance from charging vendors any fees to collect NYS sales tax

PURPOSE OR GENERAL IDEA OF BILL: An act to repeal to amend section 1 of part LL-1 of the Chapter 57 of the laws of 2008, relating to directing the Commissioner of Taxation and Finance to institute a re-registration program, in relation to prohibiting the New York State Department of Taxation and Finance from charging a vendor re-registration fee and to authorize the refund of all re-registration fees collected by New York State Department of Taxation and Finance; and to amend the law, in relation to prohibiting the New York State Department of Taxation and Finance from charging vendors any fees to collect New York State sales tax.

SUMMARY OF SPECIFIC PROVISIONS: Repeals part LL-1 of the Chapter 57 of the laws of 2008, relating to directing the Commissioner of Taxation and Finance to institute a re-registration program for vendors who collect New York State sales tax and amends current law to prohibit the New York State Department of Taxation and Finance from charging vendors any fees to collect New York State sales tax.

JUSTIFICATION: New York State must become more business friendly by providing businesses with opportunities to succeed. The 2008 "Vendor Registration Fee" is another disincentive to own and operate a business in New York State. The original certificate of registration to collect sales tax for the New York State Department of Taxation and Finance was issued to businesses with no fees and no expiration date. Business in the state should not have to pay for the privilege of collecting state sales tax. The current law does not indicate that this is a one-time fee and many business owners are leery that this will become another revenue stream for the state on an ongoing basis and fees could increase as time goes on. This bill would prevent the New York State Department of Taxation and Finance from charging a registration fee for vendors to collect sales tax and would return the fees that have been collected to the date upon enactment of this law.

PRIOR LEGISLATIVE HISTORY: A9392 - 07/01/10 - held for consideration in ways and means A1198 - 06/19/12 - held for consideration in ways and means

FISCAL IMPLICATIONS: $40 million to the state. Refund to New York State Business who maid to register their business as a tax collection agency of the State of New York.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4128 2013-2014 Regular Sessions IN SENATE March 11, 2013 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend section 1 of part LL-1 of chapter 57 of the laws of 2008, relating to directing the commissioner of taxation and finance to institute a re-registration program, in relation to prohibiting the New York state department of taxation and finance from charging a vendor re-registration fee; to authorize the refund of all re-regis- tration fees collected by the New York state department of taxation and finance; and to amend the tax law, in relation to prohibiting the New York state department of taxation and finance from charging vendors any fees to collect NYS sales tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1 of part LL-1 of chapter 57 of the laws of 2008, relating to directing the commissioner of taxation and finance to insti- tute a re-registration program, is amended to read as follows: Section 1. The commissioner of taxation and finance is directed to institute a re-registration program pursuant to section 1134 of the tax law, which program should be completed by March 31, 2012. [Notwith- standing any law to the contrary, every certificate of registration filed pursuant to this re-registration program by a person required to file sales and compensating use tax returns for the monthly or quarterly periods described in section 1136 of the tax law must be accompanied by a 50 dollar application fee to constitute a complete application. This fee must be paid and disposed of in the same manner as the taxes imposed by section 1105 of the tax law and may be determined, assessed, collected and enforced in the same manner as the tax imposed by article 28 of the tax law. Notwithstanding section 1148 of the tax law, or any other law to the contrary, such commissioner must retain from the appli- cation fees collected or received an amount that such commissioner
determines is necessary to cover reasonable costs of such commissioner in implementing, administering and enforcing registrations pursuant to this section, but no more than the amount of those fees. The provisions of subdivisions (a) and (c) of section 1139 of the tax law apply, except that no interest is allowed or paid on any refund.]
A person may be subject to the re-registration program directed by this section even if such person holds a certificate of authority that has not been in effect for a period of at least three years. S 2. Notwithstanding any law, rule or regulation to the contrary, all 50 dollar application fees collected by the department of taxation and finance pursuant to the re-registration program instituted by the commissioner of taxation and finance as authorized by section 1 of part LL-1 of chapter 57 of the laws of 2008 shall be refunded to the persons who paid such fees. S 3. Paragraph 5 of subdivision (a) of section 1134 of the tax law, as amended by chapter 2 of the laws of 1995, is amended to read as follows: (5) If the commissioner considers it necessary for the proper adminis- tration of the sales and use taxes and prepaid taxes imposed by this article and pursuant to the authority of article twenty-nine of this chapter, it may require every person under this section or section twelve hundred fifty-three of this chapter who holds a certificate of authority to file a new certificate of registration, WITHOUT CHARGE, AND in such form and at such time as the commissioner may prescribe and to surrender such certificate of authority. The commissioner may require such filing and such surrender not more often than once every three years. Upon the filing of such certificate of registration and the surrender of such certificate of authority, the commissioner shall issue, within such time as the commissioner may prescribe, a new certif- icate of authority, without charge, to each registrant and a duplicate thereof for each additional place of business of such registrant. S 4. This act shall take effect immediately; provided that the provisions of section two of this act shall apply to all certificates of registration required to be filed under section 1134 of the tax law pursuant to the re-registration program instituted by the commissioner of taxation and finance as authorized by section 1 of part LL-1 of chap- ter 57 of the laws of 2008 and filed on or after November 1, 2008.

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