BILL NUMBER:S3532

TITLE OF BILL:

An  act  to  repeal  section 1 of part R3 of chapter 62 of the laws of
2003 relating to directing the commissioner of taxation and finance to
take certain actions to provide for the payment and collection of  the
compensating use tax imposed by article 28 of the tax law

PURPOSE:

To  relieve  New  York  State  Taxpayers of the onerous requirement of
reporting out-of-state purchases of goods and services.

SUMMARY OF PROVISIONS:

Repeals Article 28 of the tax law.

JUSTIFICATION:

The legislation seeks to relieve New York  state  taxpayers  from  the
undue burden of reporting out-of-state purchases of goods and services
for  the  purpose of paying New York state sales and use, taxes. It is
obvious that current reporting rules under Chapter 62 of the  laws  of
2003 will prove to be both an unbearable nuisance to taxpayers as well
as  an  almost  wholly  unenforceable requirement.   Compounding these
              

issues is the fact that the new requirements will turn taxpayers  into
unwitting  tax  evaders  and  tax  preparers  into  their accomplices.
Further, it places upon tax preparers  and  the  tax  authorities  the
untenable role of policing this activity. New York State taxpayers are
unaccustomed  to the cumbersome task of enumerating their out-of-state
purchases on their state income tax  return.  To  arbitrarily  require
them  to  do  so  is  a  highly  impragmatic  policy  that  is next to
impossible to implement efficiently. If the State is so desperately in
need of additional revenue, it should be  derived  from  a  much  more
stable, reliable, and verifiable base.

LEGISLATIVE HISTORY:

04/07/09 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/06/10 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years which begin on or after such date.