Assembly Bill A9859

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

                                  9859

                          I N  A S S E M B L Y

                              May 27, 2014
                               ___________

Introduced by M. of A. GJONAJ -- read once and referred to the Committee
  on Ways and Means

AN  ACT to amend the tax law, in relation to establishing business fran-
  chise tax and personal income tax credit for  the  amount  of  certain
  taxes  and  surcharges  paid by certain taxpayers that are small busi-
  nesses

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

  Section  1.  Section  210-B  of the tax law is amended by adding a new
subdivision 28 to read as follows:
  28. WIRELESS COMMUNICATIONS SALES TAX AND SURCHARGE CREDIT. (A) ALLOW-
ANCE OF CREDIT. A TAXPAYER THAT IS A SMALL  BUSINESS  WITH  A  PERMANENT
BUSINESS  ADDRESS  WITHIN  THE  STATE, FOR WHICH ITS MOBILE TELECOMMUNI-
CATIONS SERVICE, AS DEFINED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION  (B)
OF  SECTION  ELEVEN HUNDRED ONE OF THIS CHAPTER, IS THE PRIMARY MEANS OF
CONTACTING SUCH SMALL BUSINESS, AND SUCH SMALL BUSINESS  DOES  NOT  HAVE
LANDLINE  TELEPHONE SERVICE SUBJECT TO THE PROVISIONS OF ARTICLE FIVE OF
THE PUBLIC SERVICE LAW, SHALL  BE  ALLOWED  A  CREDIT  AGAINST  THE  TAX
IMPOSED  BY  THIS  ARTICLE  EQUAL  TO THE SUM OF (I) THE EXCISE TAXES ON
TELECOMMUNICATIONS SERVICES PAID BY THE TAXPAYER FOR MOBILE TELECOMMUNI-
CATIONS SERVICE DURING THE TAXABLE YEAR, PURSUANT TO SECTION ONE HUNDRED
EIGHTY-SIX-E OF THIS CHAPTER,  (II)  THE  PUBLIC  SAFETY  COMMUNICATIONS
SURCHARGES  PAID  BY  THE TAXPAYER AS A WIRELESS COMMUNICATIONS CUSTOMER
DURING THE TAXABLE YEAR, PURSUANT TO SECTION ONE HUNDRED EIGHTY-SIX-F OF
THIS CHAPTER, AND (III) THE SALES AND COMPENSATING USE TAXES PAID BY THE
TAXPAYER AS A WIRELESS COMMUNICATIONS CUSTOMER DURING THE TAXABLE  YEAR,
PURSUANT  TO  SECTIONS  ELEVEN  HUNDRED FIVE, ELEVEN HUNDRED NINE AND/OR
ELEVEN HUNDRED TEN OF  THIS  CHAPTER,  TO  THE  EXTENT  SUCH  TAXES  AND
SURCHARGES ARE RELATED TO THE TAXPAYER'S SMALL BUSINESS.
  (B)  DEFINITION.  THE TERM "SMALL BUSINESS" SHALL, FOR THE PURPOSES OF
THIS SUBDIVISION, MEAN A BUSINESS WHICH IS RESIDENT IN THIS STATE, INDE-
PENDENTLY OWNED AND OPERATED, NOT DOMINANT  IN  ITS  FIELD  AND  EMPLOYS
TWENTY-FIVE OR LESS PERSONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15327-02-4
              

A. 9859                             2

  (C)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED
DOLLAR  MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
follows:
(XLI) WIRELESS COMMUNICATIONS        AMOUNT OF CREDIT
SALES TAX AND SURCHARGE CREDIT       UNDER SUBDIVISION
UNDER SUBSECTION (CCC)               TWENTY-EIGHT OF
                                     SECTION TWO  HUNDRED TEN-B
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  WIRELESS  COMMUNICATIONS  SALES  TAX  AND SURCHARGE CREDIT. (1)
ALLOWANCE OF CREDIT. A TAXPAYER THAT OWNS A SMALL BUSINESS WITH A PERMA-
NENT BUSINESS ADDRESS WITHIN THE STATE, FOR WHICH ITS MOBILE  TELECOMMU-
NICATIONS SERVICE AS DEFINED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (B)
OF  SECTION  ELEVEN HUNDRED ONE OF THIS CHAPTER, IS THE PRIMARY MEANS OF
CONTACTING SUCH SMALL BUSINESS, AND SUCH SMALL BUSINESS  DOES  NOT  HAVE
LANDLINE  TELEPHONE SERVICE SUBJECT TO THE PROVISIONS OF ARTICLE FIVE OF
THE PUBLIC SERVICE LAW, SHALL  BE  ALLOWED  A  CREDIT  AGAINST  THE  TAX
IMPOSED  BY  THIS  ARTICLE  EQUAL  TO THE SUM OF (A) THE EXCISE TAXES ON
TELECOMMUNICATIONS SERVICES PAID BY THE TAXPAYER FOR MOBILE TELECOMMUNI-
CATIONS SERVICE DURING THE TAXABLE YEAR, PURSUANT TO SECTION ONE HUNDRED
EIGHTY-SIX-E OF THIS  CHAPTER,  (B)  THE  PUBLIC  SAFETY  COMMUNICATIONS
SURCHARGES  PAID  BY  THE TAXPAYER AS A WIRELESS COMMUNICATIONS CUSTOMER
DURING THE TAXABLE YEAR, PURSUANT TO SECTION ONE HUNDRED EIGHTY-SIX-F OF
THIS CHAPTER, AND (C) THE SALES AND COMPENSATING USE TAXES PAID  BY  THE
TAXPAYER  AS A WIRELESS COMMUNICATIONS CUSTOMER DURING THE TAXABLE YEAR,
PURSUANT TO SECTIONS ELEVEN HUNDRED FIVE,  ELEVEN  HUNDRED  NINE  AND/OR
ELEVEN  HUNDRED  TEN  OF  THIS  CHAPTER,  TO  THE  EXTENT SUCH TAXES AND
SURCHARGES ARE RELATED TO THE TAXPAYER'S SMALL BUSINESS.
  (2) DEFINITION. THE TERM "SMALL BUSINESS" MEANS A  BUSINESS  WHICH  IS
RESIDENT IN THE STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN
ITS FIELD AND EMPLOYS TWENTY-FIVE OR LESS PERSONS.
  (3)  APPLICATION  OF  CREDIT.  IF  THE AMOUNT OF THE CREDIT UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX  HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
PAID THEREON.
  S  4.  This  act  shall  take  effect on the same date and in the same
manner as part A of chapter 59 of the laws of 2014, takes effect.