S T A T E   O F   N E W   Y O R K
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                                  7340

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 13, 2013
                               ___________

Introduced by M. of A. FARRELL, MORELLE -- read once and referred to the
  Committee on Ways and Means

AN  ACT to amend the tax law, in relation to thresholds for establishing
  presence, residency or doing business in the  state  for  out-of-state
  companies  including affiliates of in-state companies that temporarily
  provide resources and personnel in the state during a state  of  emer-
  gency declared by the governor or the President of the United States

  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 article 42  to  read
as follows:
                               ARTICLE 42
     FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER
SECTION 3100. SHORT TITLE.
        3101. DEFINITIONS.
        3102. BUSINESS AND EMPLOYEE STATUS DURING DISASTER PERIOD.
        3103. TRANSACTION TAXES AND FEES.
        3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD.
        3105. NOTIFICATION  OF  OUT-OF-STATE  BUSINESS  DURING  DISASTER
                PERIOD.
        3106. NOTIFICATION OF INTENT TO REMAIN IN STATE.
        3107. SEVERABILITY.
  S 3100. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE  "FACILITATING  BUSINESS  RAPID RESPONSE TO STATE DECLARED DISASTERS
ACT OF 2013".
  S 3101. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "REGISTERED BUSINESS IN THE STATE" (OR "REGISTERED BUSINESS") MEANS
A BUSINESS ENTITY THAT IS CURRENTLY REGISTERED TO  DO  BUSINESS  IN  THE
STATE PRIOR TO THE DECLARED STATE DISASTER OR EMERGENCY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10929-01-3

              

A. 7340                             2

  2.  "OUT-OF-STATE  BUSINESS" MEANS A BUSINESS ENTITY THAT HAS NO PRES-
ENCE IN THE STATE AND CONDUCTS NO BUSINESS IN THE STATE  WHOSE  SERVICES
ARE REQUESTED BY A REGISTERED BUSINESS OR BY A STATE OR LOCAL GOVERNMENT
FOR  PURPOSES  OF  PERFORMING  DISASTER OR EMERGENCY RELATED WORK IN THE
STATE.  OUT-OF-STATE  BUSINESS SHALL ALSO INCLUDE A BUSINESS ENTITY THAT
IS AFFILIATED WITH THE REGISTERED BUSINESS IN THE STATE  SOLELY  THROUGH
COMMON  OWNERSHIP. THE OUT-OF-STATE BUSINESS HAS NO REGISTRATIONS OR TAX
FILINGS OR NEXUS IN THE STATE PRIOR TO THE DECLARED  STATE  DISASTER  OR
EMERGENCY.
  3.  "OUT-OF-STATE EMPLOYEE" MEANS AN EMPLOYEE WHO DOES NOT WORK IN THE
STATE, EXCEPT FOR DISASTER OR EMERGENCY RELATED WORK, DURING THE  DISAS-
TER PERIOD.
  4.  "INFRASTRUCTURE"  MEANS  PROPERTY  AND  EQUIPMENT OWNED OR USED BY
COMMUNICATIONS NETWORKS, ELECTRIC GENERATION, TRANSMISSION AND  DISTRIB-
UTION  SYSTEMS,  GAS  DISTRIBUTION  SYSTEMS, WATER PIPELINES, AND PUBLIC
ROADS AND BRIDGES AND RELATED SUPPORT FACILITIES THAT  SERVICE  MULTIPLE
CUSTOMERS  OR  CITIZENS INCLUDING, BUT NOT LIMITED TO, REAL AND PERSONAL
PROPERTY SUCH AS BUILDINGS, OFFICES, LINES, POLES, PIPES, STRUCTURES AND
EQUIPMENT.
  5. "DECLARED STATE DISASTER OR EMERGENCY" MEANS A DISASTER OR EMERGEN-
CY EVENT (A) FOR WHICH THE GOVERNOR HAS DECLARED A STATE  OF  EMERGENCY,
(B)  FOR WHICH A PRESIDENTIAL DECLARATION OF A FEDERAL MAJOR DISASTER OR
EMERGENCY HAS BEEN ISSUED, OR (C)  OTHER  DISASTER  OR  EMERGENCY  EVENT
WITHIN THE STATE FOR WHICH A GOOD FAITH RESPONSE EFFORT IS REQUIRED, AND
FOR  WHICH  THE  DIRECTOR OF THE STATE OFFICE OF EMERGENCY MANAGEMENT IS
GIVEN NOTIFICATION FROM THE REGISTERED BUSINESS AND SUCH DIRECTOR DESIG-
NATES SUCH EVENT  AS  A  DISASTER  OR  EMERGENCY  THEREBY  INVOKING  THE
PROVISIONS OF THIS ARTICLE.
  6. "DISASTER PERIOD" MEANS A PERIOD THAT BEGINS WITHIN TEN DAYS OF THE
FIRST  DAY  OF THE GOVERNOR'S DECLARATION OR THE PRESIDENT'S DECLARATION
(WHICHEVER OCCURS FIRST) AND THAT EXTENDS FOR A PERIOD OF SIXTY CALENDAR
DAYS AFTER THE END OF THE DECLARED DISASTER OR EMERGENCY PERIOD, OR  FOR
ANY LONGER PERIOD AUTHORIZED BY THE COMMISSIONER.
  7.  "DISASTER  OR EMERGENCY RELATED WORK" MEANS REPAIRING, RENOVATING,
INSTALLING, BUILDING, RENDERING SERVICES OR  OTHER  BUSINESS  ACTIVITIES
THAT  RELATE  TO  INFRASTRUCTURE  THAT  HAS  BEEN  DAMAGED,  IMPAIRED OR
DESTROYED BY THE DECLARED STATE DISASTER OR EMERGENCY.
  8. "DECLARED STATE DISASTER OR EMERGENCY" MEANS A DISASTER OR EMERGEN-
CY EVENT FOR WHICH THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY OR FOR
WHICH A PRESIDENTIAL DECLARATION OF A FEDERAL MAJOR DISASTER OR EMERGEN-
CY HAS BEEN ISSUED.
  S 3102. BUSINESS AND EMPLOYEE STATUS DURING  DISASTER  PERIOD.  1.  AN
OUT-OF-STATE  BUSINESS  THAT  CONDUCTS  OPERATIONS  WITHIN THE STATE FOR
PURPOSES OF PERFORMING WORK OR SERVICES  RELATED  TO  A  DECLARED  STATE
DISASTER OR EMERGENCY DURING THE DISASTER PERIOD SHALL NOT BE CONSIDERED
TO HAVE ESTABLISHED A LEVEL OF PRESENCE THAT WOULD REQUIRE THAT BUSINESS
TO  REGISTER,  FILE  AND/OR  REMIT  STATE  OR  LOCAL TAXES OR THAT WOULD
REQUIRE THAT BUSINESS OR ITS OUT-OF-STATE EMPLOYEES TO BE SUBJECT TO ANY
STATE LICENSING OR REGISTRATION REQUIREMENTS.  THIS INCLUDES ANY AND ALL
STATE OR LOCAL BUSINESS LICENSING OR REGISTRATION REQUIREMENTS OR  STATE
AND  LOCAL  TAXES  OR  FEES  INCLUDING, BUT NOT LIMITED TO, UNEMPLOYMENT
INSURANCE, SALES AND USE TAX OR AD VALOREM  TAX  ON  EQUIPMENT  USED  OR
CONSUMED DURING THE DISASTER PERIOD.  FOR PURPOSES OF ANY STATE OR LOCAL
TAX  ON  OR  MEASURED  BY,  IN  WHOLE OR IN PART, NET OR GROSS INCOME OR
RECEIPTS, ALL ACTIVITY OF THE OUT-OF-STATE BUSINESS THAT IS CONDUCTED IN
THIS STATE PURSUANT TO THIS ARTICLE SHALL BE DISREGARDED WITH RESPECT TO

A. 7340                             3

ANY FILING REQUIREMENTS FOR SUCH TAX INCLUDING THE FILING REQUIRED FOR A
UNITARY OR COMBINED GROUP OF WHICH THE OUT-OF-STATE BUSINESS  MAY  BE  A
PART.
  2.  ANY  OUT-OF-STATE  EMPLOYEE  AS  DEFINED  IN  SUBDIVISION THREE OF
SECTION THREE THOUSAND ONE OF THIS ARTICLE SHALL NOT  BE  CONSIDERED  TO
HAVE ESTABLISHED RESIDENCY OR A PRESENCE IN THE STATE THAT WOULD REQUIRE
THAT PERSON OR THAT PERSON'S EMPLOYER TO FILE AND PAY INCOME TAXES OR TO
BE  SUBJECTED  TO TAX WITHHOLDINGS OR TO FILE AND PAY ANY OTHER STATE OR
LOCAL TAX OR FEE DURING THE DISASTER PERIOD. THIS INCLUDES  ANY  RELATED
STATE OR LOCAL EMPLOYER WITHHOLDING AND REMITTANCE OBLIGATIONS.
  S  3103.  TRANSACTION  TAXES  AND  FEES.  OUT-OF-STATE  BUSINESSES AND
OUT-OF-STATE EMPLOYEES SHALL BE REQUIRED TO PAY  TRANSACTION  TAXES  AND
FEES INCLUDING BUT NOT LIMITED TO FUEL TAXES OR SALES/USE TAXES ON MATE-
RIALS  OR  SERVICES  SUBJECT  TO  SALES/USE TAX, HOTEL TAXES, CAR RENTAL
TAXES OR FEES THAT THE OUT-OF-STATE AFFILIATED BUSINESS OR  OUT-OF-STATE
EMPLOYEE PURCHASES FOR USE OR CONSUMPTION IN THE STATE DURING THE DISAS-
TER  PERIOD,  UNLESS SUCH TAXES ARE OTHERWISE EXEMPTED DURING A DISASTER
PERIOD.
  S 3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD. ANY  OUT-
OF-STATE  BUSINESS  OR  OUT-OF-STATE  EMPLOYEE THAT REMAINS IN THE STATE
AFTER THE DISASTER PERIOD WILL BECOME  SUBJECT  TO  THE  STATE'S  NORMAL
STANDARDS  FOR ESTABLISHING PRESENCE, RESIDENCY OR DOING BUSINESS IN THE
STATE AND WILL THEREFORE BECOME RESPONSIBLE FOR ANY BUSINESS OR EMPLOYEE
TAX REQUIREMENTS THAT ENSUE.
  S 3105. NOTIFICATION OF OUT-OF-STATE BUSINESS DURING DISASTER  PERIOD.
1.  THE OUT-OF-STATE BUSINESS THAT ENTERS THE STATE SHALL, UPON REQUEST,
PROVIDE THE DEPARTMENT A STATEMENT THAT IT IS IN THE STATE FOR  PURPOSES
OF  RESPONDING  TO  THE  DISASTER  OR  EMERGENCY,  WHICH STATEMENT SHALL
INCLUDE THE  BUSINESS'  NAME,  STATE  OF  DOMICILE,  PRINCIPAL  BUSINESS
ADDRESS,  FEDERAL  TAX IDENTIFICATION NUMBER, DATE OF ENTRY, AND CONTACT
INFORMATION.
  2. A REGISTERED BUSINESS IN THE STATE SHALL, UPON REQUEST, PROVIDE THE
INFORMATION REQUIRED IN SUBDIVISION ONE OF THIS SECTION FOR  ANY  AFFIL-
IATE THAT ENTERS THE STATE THAT IS AN OUT-OF-STATE BUSINESS. THE NOTIFI-
CATION  SHALL  ALSO INCLUDE CONTACT INFORMATION FOR THE REGISTERED BUSI-
NESS IN THE STATE.
  S 3106. NOTIFICATION OF INTENT TO REMAIN  IN  STATE.  AN  OUT-OF-STATE
BUSINESS OR AN OUT-OF-STATE EMPLOYEE THAT REMAINS IN THE STATE AFTER THE
DISASTER  PERIOD  SHALL COMPLETE STATE AND LOCAL REGISTRATION, LICENSING
AND FILING REQUIREMENTS THAT ENSUE  AS  A  RESULT  OF  ESTABLISHING  THE
REQUISITE  BUSINESS  PRESENCE OR RESIDENCY IN THE STATE APPLICABLE UNDER
THE EXISTING RULES.
  S 3107. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY  IN  WHICH  THE  JUDGMENT  SHALL  HAVE  BEEN
RENDERED.
  S  2.  This  act shall take effect immediately. Provided, however, the
commissioner of the department of taxation and finance is authorized  to
promulgate  any  rules  or  regulations,  and develop and issue forms or
online processes necessary for the timely implementation of this act.