Senate Bill S5852

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

                                  5852

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              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.