Senate Bill S343

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

                                   343

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- 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  imposing  a  penalty  on
  persons failing to collect or remit sales tax

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subdivision (a) of section 1132 of  the  tax
law,  as  amended by chapter 255 of the laws of 1998, is amended to read
as follows:
  (1) Every person required to collect the tax  shall  collect  the  tax
from the customer when collecting the price, amusement charge or rent to
which  it  applies.  If  the  customer is given any sales slip, invoice,
receipt or other statement or memorandum of the price, amusement  charge
or  rent  paid  or  payable,  the tax shall be stated, charged and shown
separately on the first of such documents given to him. The tax shall be
paid to the person required to collect it as trustee for and on  account
of  the  state. THE FAILURE OF ANY PERSON REQUIRED TO COLLECT THE TAX TO
CLEARLY STATE, CHARGE AND SHOW THE  TAX  ON  ANY  SALES  SLIP,  INVOICE,
RECEIPT  OR OTHER STATEMENT OR MEMORANDUM OF THE PRICE SHALL BE PUNISHA-
BLE BY A FINE OF FIVE THOUSAND DOLLARS FOR THE FIRST OFFENSE  AND  BY  A
FINE  OF TEN THOUSAND DOLLARS FOR THE SECOND AND EACH SUBSEQUENT OFFENSE
OCCURRING WITHIN A SINGLE CALENDAR YEAR. THERE SHALL EXIST A  REBUTTABLE
PRESUMPTION THAT SUCH FAILURE WAS INTENTIONAL.
  S  2.  Subparagraph  (i)  of paragraph 1 of subdivision (a) of section
1145 of the tax law, as amended by chapter 411 of the laws of  1986,  is
amended to read as follows:
   (i) Any person failing to file a return or to pay or pay over any tax
to  the  [tax  commission]  COMMISSIONER  within the time required by or
pursuant to this article (determined with regard  to  any  extension  of

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

                                                           LBD03480-01-9

S. 343                              2

time  for  filing or paying) shall be subject to a penalty of FIVE THOU-
SAND DOLLARS FOR THE FIRST OFFENSE AND  TEN  THOUSAND  DOLLARS  FOR  THE
SECOND  AND  EACH  SUBSEQUENT OFFENSE OCCURRING WITHIN A SINGLE CALENDAR
YEAR  OR ten percent of the amount of tax due if such failure is for not
more than one month, with an additional one percent for each  additional
month  or  fraction  thereof  during  which  such failure continues, not
exceeding  thirty  percent  in  the  aggregate,  WHICHEVER  IS  GREATER.
Provided,  however,  in the case of a failure to file such return within
sixty days of the date prescribed for filing of such return by or pursu-
ant to this article (determined with regard to any extension of time for
filing), the penalty imposed by this subparagraph shall not be less than
the lesser of one hundred dollars or one hundred percent of  the  amount
required  to  be  shown  as  tax  on such return. For the purpose of the
preceding sentence, the amount of tax required to be shown on the return
shall be reduced by the amount of any part of the tax which is  paid  on
or  before  the date prescribed for payment of the tax and by the amount
of any credit against the tax which may be claimed upon the  return.  In
the  case of a failure to file a return by a person required to register
with the [tax commission] COMMISSIONER as  provided  in  section  eleven
hundred  thirty-four  OF  THIS  PART,  in no event shall the penalty for
failure to file a return be less than fifty dollars.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.