NY State Senate Bill 2015-S472

Senate Bill S472

2015-2016 Legislative Session

Provides that issuers of debit and credit cards shall pay sales and use taxes directly to the commissioner of taxation and finance

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

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2015-S472 (ACTIVE) - Details

See Assembly Version of this Bill:: A5908
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §1168, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2550, A7674, A3692
2011-2012: S347, A156
2013-2014: S785, A157
2017-2018: S4860

2015-S472 (ACTIVE) - Summary

Provides that issuers of debit and credit cards shall pay sales and use taxes directly to the state tax commission.

2015-S472 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S472

 TITLE OF BILL :  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

 PURPOSE :

Provides that issuers of debit and credit cards shall pay sales and
use taxes directly to the Commissioner of Taxation and Finance

 SUMMARY OF PROVISIONS :

Section 1. Amends the Tax Law by adding a new section 1168. Requires
processors of credit and or debit card to collect and pay taxes
directly to the Commissioner of Taxation and Finance.

Section 2. Effective Date.

 EXISTING LAW :

None.

 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. New York
State cannot possibly audit every vendor and the vendors know this.
But the processors which are paid by vendors to deal with the issuers
of credit and or debit cards, and who actually get the monies from the
credit card issuers, are far less numerous. They know the true sales
and actually get money from the credit card companies which include
the sales taxes. It is more efficient to have these processors remit
the sales taxes directly to New York State instead of sending the
taxes back to the vendors and then relying upon the vendors to submit
the sales taxes in a timely and accurately manner.

 LEGISLATIVE HISTORY :

2014: S.785 - Referred to Investigations and Government
Operations/A.157 - Referred to Ways and Means
2013: S.785 - Referred to Investigations and Government
Operations/A.157 - Referred to Ways and Means
2012: S.347 - Referred to Investigations and Government
Operations/A.156- Referred to Ways and Means
2011: S.347 - Defeated in Investigations and Government
Operations/A.156- Referred to Ways and Means
2010: S.2550A - Notice of Committee Consideration Requested/A.7674-A -
Referred to Ways and Means
2009: S.2550A - Tabled/A.7674-A - Amend and recommit to Ways and Means
2008: S.774/Referred to Investigations and Government
Operations/A.9991 - Referred to Ways and Means
2007: S.774 Referred to Investigations and Government Operations
2005-06: S.827 Referred to Investigations and Government Operations
2003-04: S.4362 Referred to Investigations and Government Operations

 EFFECTIVE DATE :
This law shall take effect on the first of October next succeeding the
date on which it shall have become a law, with provisions.

2015-S472 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   472

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

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 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
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

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

                                                           LBD01122-01-5

S. 472                              2

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.

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Senate Bill S472

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Sponsored By

Ruben Diaz