| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 04, 2012 |
referred to investigations and government operations |
| Jun 24, 2011 |
recommitted to rules |
| Jun 15, 2011 |
ordered to third reading cal.1273 committee discharged and committed to rules |
| Jan 21, 2011 |
referred to investigations and government operations |
Senate Bill S2438
2011-2012 Legislative Session
Sponsored By
(R, IP) Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
Actions
2011-S2438 (ACTIVE) - Details
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Amd ยง1131, Tax L
- Versions Introduced in 2009-2010 Legislative Session:
-
S7922
2011-S2438 (ACTIVE) - Sponsor Memo
BILL NUMBER:S2438
TITLE OF BILL:
An act
to amend the tax law, in relation to the failure of a responsible person
to collect and pay over withholding tax
PURPOSE:
To eliminate a disparity in the collection of trust fund
taxes for which there is no known policy or legislative basis.
SUMMARY OF PROVISIONS:
Section 1131 of the tax law is amended to add a
new subdivision (1) dealing with those people who are not responsible
for payment of sales tax and therefore exempting them from such
unpaid sales tax liability.
EXISTING LAW:
None.
JUSTIFICATION:
As currently written, Section 1131(1) appears on its
face to impose absolute liability for unpaid sales taxes on all
members of an LLC and on all limited partners of a limited
partnership, without regard to whether the member or limited partner
had an active role or significant involvement in the financial
2011-S2438 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
2438
2011-2012 Regular Sessions
I N S E N A T E
January 21, 2011
___________
Introduced by Sen. ALESI -- 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 the failure of a responsible
person to collect and pay over withholding tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
chapter 576 of the laws of 1994, is amended to read as follows:
(1) "Persons required to collect tax" or "person required to collect
any tax imposed by this article" shall include: every vendor of tangible
personal property or services; every recipient of amusement charges; and
every operator of a hotel. Said terms shall also include any officer,
director or employee of a corporation or of a dissolved corporation, any
employee of a partnership, any employee or manager of a limited liabil-
ity company, or any employee of an individual proprietorship who as such
officer, director, employee or manager is under a duty to act for such
corporation, partnership, limited liability company or individual
proprietorship in complying with any requirement of this article; and
any member of a partnership or limited liability company EXCEPT, THOSE
PASSIVE INVESTORS, AS DEFINED, ARE EXEMPT. FOR THE PURPOSES OF THIS
SUBDIVISION, THE TERM "PASSIVE INVESTOR" SHALL MEAN AN INVESTOR WHO DOES
NOT PLAY AN ACTIVE ROLE IN THE BUSINESS. Provided, however, that any
person who is a vendor solely by reason of clause (D) or (E) of subpara-
graph (i) of paragraph (8) of subdivision (b) of section eleven hundred
one shall not be a "person required to collect any tax imposed by this
article" until twenty days after the date by which such person is
required to file a certificate of registration pursuant to section elev-
en hundred thirty-four OF THIS PART.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08250-01-1
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