S T A T E O F N E W Y O R K
________________________________________________________________________
9035
I N A S S E M B L Y
January 17, 2012
___________
Introduced by M. of A. REILLY -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to imposing sales tax at the
time of the sale of a gift certificate and exempting purchases made
with a gift certificate
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 6 of subdivision (b) of section 1101 of the tax
law, as amended by chapter 399 of the laws of 2009, is amended and a new
paragraph 39 is added to read as follows:
(6) Tangible personal property. Corporeal personal property of any
nature. However, except for purposes of the tax imposed by subdivision
(b) of section eleven hundred five of this article, such term shall not
include gas, electricity, refrigeration and steam. Such term shall also
include pre-written computer software, whether sold as part of a pack-
age, as a separate component, or otherwise, and regardless of the medium
by means of which such software is conveyed to a purchaser. Such term
shall also include newspapers and periodicals where the vendor ships or
delivers the entire edition or issue of the newspaper or periodical,
with or without the advertising included in the paper edition or issue,
but not including anything, other than advertising, not in such paper
edition or issue, to the purchaser by means of telephony or telegraphy
or other electronic media, but only where the amount of the sale price
to such purchaser of such newspaper or magazine or the subscription
price, in the case of a subscription to a newspaper or periodical,
including any charge by such vendor for shipping or delivery to the
purchaser, is separately stated to such purchaser. SUCH TERM SHALL ALSO
INCLUDE GIFT CERTIFICATE, ELECTRONIC GIFT CARD OR MAGNETIC GIFT CARD.
However, such term shall not include a modular home that is permanently
affixed to real property, provided that, if a modular home is to be
removed from the realty, whether as a whole or disassembled, it and its
component parts shall be tangible personal property whether it is to be
sold as a whole or as pieces.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09155-02-2
A. 9035 2
(39) GIFT CERTIFICATE. (I) A "GIFT CERTIFICATE" SHALL MEAN A WRITING
IDENTIFIED AS A GIFT CERTIFICATE BY A CONSUMER FOR USE BY A CUSTOMER,
WHETHER OR NOT REDEEMABLE FOR CASH, AND USABLE FOR ITS FACE AMOUNT IN
LIEU OF CASH FOR THE EXCHANGE OF GOODS OR SERVICES SUPPLIED BY THE SELL-
ER. GIFT CERTIFICATES SHALL INCLUDE ELECTRONIC OR MAGNETIC CARDS WITH A
BANKED DOLLAR VALUE, A MERCHANDISE CREDIT, A CERTIFICATE WHERE THE
ISSUER HAS RECEIVED PAYMENT FOR THE FULL FACE VALUE FOR THE FUTURE
PURCHASE OR DELIVERY OF GOODS OR SERVICES, AND ANY OTHER MEDIUM THAT
EVIDENCES THE GIVING OF CONSIDERATION IN EXCHANGE FOR THE RIGHT TO
REDEEM IT FOR GOODS OR SERVICES OF AT LEAST AN EQUAL VALUE. PRE-PAID
CALLING ARRANGEMENTS, SUCH AS PRE-PAID PHONE CARDS, ARE NOT CONSIDERED
GIFT CERTIFICATES.
(II) "ELECTRONIC GIFT CARD" OR "MAGNETIC GIFT CARD" SHALL MEAN A CARD
WITH A BANKED DOLLAR VALUE THAT MAY BE REDEEMED FOR GOODS OR SERVICES
WHEREBY THE DOLLAR AMOUNT OF THE CARD IS REDUCED ACCORDINGLY.
S 2. Section 1115 of the tax law is amended by adding a new subdivi-
sion (hh) to read as follows:
(HH) (1) PURCHASES MADE WITH A GIFT CERTIFICATE, ELECTRONIC GIFT CARD
OR MAGNETIC GIFT CARD.
(2)(A) A "GIFT CERTIFICATE" SHALL MEAN A WRITING IDENTIFIED AS A GIFT
CERTIFICATE BY A CONSUMER FOR USE BY A CUSTOMER, WHETHER OR NOT REDEEMA-
BLE FOR CASH, AND USABLE FOR ITS FACE AMOUNT IN LIEU OF CASH FOR THE
EXCHANGE OF GOODS OR SERVICE SUPPLIED BY THE SELLER. GIFT CERTIFICATES
SHALL INCLUDE ELECTRONIC OR MAGNETIC CARDS WITH A BANKED DOLLAR VALUE, A
MERCHANDISE CREDIT, A CERTIFICATE WHERE THE ISSUER HAS RECEIVED PAYMENT
FOR THE FULL FACE VALUE FOR THE FUTURE PURCHASE OR DELIVERY OF GOODS OR
SERVICES, AND ANY OTHER MEDIUM THAT EVIDENCES THE GIVING OF CONSIDER-
ATION IN EXCHANGE FOR THE RIGHT TO REDEEM IT FOR GOODS OR SERVICES OF AT
LEAST AN EQUAL VALUE. FOR PURPOSES OF THIS SUBDIVISION, PRE-PAID CALLING
ARRANGEMENTS, SUCH AS PRE-PAID PHONE CARDS, ARE NOT CONSIDERED GIFT
CERTIFICATES.
(B) "ELECTRONIC GIFT CARD" OR "MAGNETIC GIFT CARD" SHALL MEAN A CARD
WITH A BANKED DOLLAR VALUE THAT MAY BE REDEEMED FOR GOODS OR SERVICES
WHEREBY THE DOLLAR AMOUNT OF THE CARD IS REDUCED ACCORDINGLY.
S 3. This act shall take effect on the first day of a quarterly sales
tax period, as set forth in subdivision (b) of section 1136 of the tax
law, next succeeding the thirtieth day after it shall have become a law.
Provided, however that the commissioner of taxation and finance shall
take any action necessary for the timely implementation of this act on
or before the date on which it shall have become a law.