Removes college textbooks from the imposed tax on certain internet providers that use websites for the sale of tangible personal property.
BILL NUMBER: S5852
TITLE OF BILL :
An act to amend the tax law, in relation to removing college textbooks from the tax on certain internet providers that use websites for the sale of tangible personal property
To remove college textbooks from the requirement that certain online stores collect sales tax on tangible property purchased by state residents.
SUMMARY OF PROVISIONS :
Section 1 amends subparagraph (vi) of paragraph 8 of subdivision (b) of section 1101 of the tax law to remove textbooks from qualifying as tangible property for the purposes of the subparagraph that orders certain online stores to collect sales tax on tangible property sold via the internet.
Section 2 amends the opening paragraph of paragraph 34 of subdivision (a) of section 1115 of the tax law to establish that a college student has to show a valid student identification card to be eligible for tax free online purchase of course textbooks.
Section 3 provides for an immediate effective date.
The rising cost of tuition and related expenses for many two-year and four-year degrees is putting college out of reach for many students or burdening them and their families with years of debt payments. One of the areas where prices have risen rapidly is college textbooks. A typical undergraduate can expect to pay $400-$800 per semester on required textbooks, or about $4,000 over the course of a four-year degree program for a combination of new and used books. By removing college textbooks from the tax on tangible property sold by certain online stores, that was added to the laws of this state in 2008, this legislation will take an important first step in helping keep down the cost of college textbooks on-line, where such textbooks can often be found for a cheaper price. Additionally, this legislation will create a tax equity since college textbooks purchased on campus are tax exempt.
STATE OF NEW YORK ________________________________________________________________________ 5852 2009-2010 Regular Sessions IN SENATE June 11, 2009 ___________Introduced by Sen. STAVISKY -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to removing college textbooks from the tax on certain internet providers that use websites for the sale of tangible personal property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (vi) of paragraph 8 of subdivision (b) of section 1101 of the tax law, as added by section 1 of part OO-1 of chap- ter 57 of the laws of 2008, is amended to read as follows: (vi) For purposes of subclause (I) of clause (C) of subparagraph (i) of this paragraph, a person making sales of tangible personal property or services taxable under this article ("seller") shall be presumed to be soliciting business through an independent contractor or other repre- sentative if the seller enters into an agreement with a resident of this state under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the seller, if the cumulative gross receipts from sales by the seller to customers in the state who are referred to the seller by all residents with this type of an agreement with the seller is in excess of ten thousand dollars during the preced- ing four quarterly periods ending on the last day of February, May, August, and November. This presumption may be rebutted by proof that the resident with whom the seller has an agreement did not engage in any solicitation in the state on behalf of the seller that would satisfy the nexus requirement of the United States constitution during the four quarterly periods in question. Nothing in this subparagraph shall be construed to narrow the scope of the terms independent contractor or other representative for purposes of subclause (I) of clause (C) of subparagraph (i) of this paragraph. FOR THE PURPOSES OF THIS SUBPARA-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11234-01-9 S. 5852 2
GRAPH, THE TERM "TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE TEXTBOOKS PURCHASED BY FULL AND PART TIME COLLEGE STUDENTS FOR THEIR COURSES. FOR THE PURPOSES OF THIS SUBPARAGRAPH, THE TERM "TEXTBOOKS" INCLUDES ONLY THOSE BOOKS SPECIFICALLY WRITTEN, DESIGNED OR PRODUCED FOR EDUCATIONAL, INSTRUCTIONAL OR PEDAGOGICAL PURPOSES. S 2. The opening paragraph of paragraph 34 of subdivision (a) of section 1115 of the tax law, as added by section 96 of part A of chapter 56 of the laws of 1998, is amended to read as follows: Textbooks purchased by full and part time college students for their courses; provided, however, that upon purchase such a student shall present a valid student identification card, and such a textbook shall be required for a course being taken by such student at an institution of higher education. A FULL OR PART TIME COLLEGE STUDENT SHALL HAVE TO PROVIDE SUFFICIENT PROOF OF A VALID STUDENT IDENTIFICATION CARD TO ANY INTERNET WEBSITE THAT SELLS TEXTBOOKS TO RECEIVE THE EXEMPTION AUTHOR- IZED PURSUANT TO THIS PARAGRAPH. For purposes of this subdivision, the term: S 3. This act shall take effect immediately.