NY State Senate Bill 2017-S4860

Senate Bill S4860

2017-2018 Legislative Session

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

download bill text pdf

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
Mar 03, 2017	referred to investigations and government operations

2017-S4860 (ACTIVE) - Details

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
2011-2012: S347
2013-2014: S785
2015-2016: S472

2017-S4860 (ACTIVE) - Summary

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

2017-S4860 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4860

 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 :

2016: S.472- REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/A.5908referred to ways and means
2015: S.472- REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS/
A.5908-referred to ways and means
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.

2017-S4860 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4860
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 Introduced  by  Sens.  DIAZ, SQUADRON -- read twice and ordered printed,
   and when printed to be committed to the  Committee  on  Investigations
   and Government 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:
   § 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.
                                                            LBD07302-01-7

 S. 4860                             2
 
 WHO  FOR  A FEE, OBTAIN FUNDS FOR VENDORS FROM SUCH ISSUERS OF CREDIT OR
 DEBIT CARDS.
   §  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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