Eliminates a number of filing fees imposed on businesses by the department of state pursuant to the business corporation law, the executive law and the not-for-profit corporation law; eliminates fees related to start up, merger, consolidation or dissolution of a corporation.
TITLE OF BILL: An act to repeal certain provisions of the business corporation law, the executive law and the not-for-profit corporation law, in relation to certain fees collected by the department of state
PURPOSE OR GENERAL IDEA OF BILL: To relieve businesses from the "hidden" taxes associated with fees required for various administrative filings with the state.
SUMMARY OF SPECIFIC PROVISIONS: This legislation will repeal certain filing fees paid to the Secretary of State, related to the start up, merger, consolidation or dissolution of a corporation under the Business Corporation Law, the Executive Law and the Not-For-Profit Corporation Law.
JUSTIFICATION: Currently, businesses in New York State are hampered by the high cost of doing business in New York. One problem area recognized by business is the number of "small" filing fees imposed by the state for which no service is received in return, the so-called "nickel and dime" fees. These fees were initially enacted to cover the costs involved in processing and storing the forms. However, the business receives no benefit from paying these fees. The only benefit is revenue to the state. Therefore, these fees are nothing but an additional tax on the business community. To that end, fees will be eliminated in instances where the business receives no benefit from the fee paid.
PRIOR LEGISLATIVE HISTORY: 2009-2010: S.6689/A.1757 CORPS/Corporations 2011: S.4429/A.1760 -- FINANCE/Corporations
FISCAL IMPLICATIONS: The elimination of these fees will result in a loss of revenue to the state of approximately $8 to $10 million.
EFFECTIVE DATE: January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 4429--A 2011-2012 Regular Sessions IN SENATE April 5, 2011 ___________Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Author- ities and Commissions -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to repeal certain provisions of the business corporation law, the executive law and the not-for-profit corporation law, in relation to certain fees collected by the department of state THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r) and (s) of section 104-A of the business corporation law are REPEALED. S 2. Subdivisions 9 and 12 of section 96 of the executive law are REPEALED. S 3. Paragraphs (a), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r) and (s) of section 104-A of the not-for-profit corpo- ration law are REPEALED. S 4. This act shall take effect January 1, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05706-02-2