senate Bill S2710

2013-2014 Legislative Session

When external indices are utilized to determine sales and use tax due, requires such indices to reflect local economic conditions

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (15)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
May 12, 2014 advanced to third reading
May 07, 2014 2nd report cal.
May 06, 2014 1st report cal.533
Jan 14, 2014 reported and committed to finance
Jan 08, 2014 referred to investigations and government operations
returned to senate
died in assembly
Jun 12, 2013 referred to ways and means
delivered to assembly
passed senate
Jun 11, 2013 ordered to third reading cal.1243
reported and committed to rules
Apr 30, 2013 reported and committed to finance
Jan 23, 2013 referred to investigations and government operations

Votes

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May 6, 2014 - Finance committee Vote

S2710
29
5
committee
29
Aye
5
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Finance committee vote details

Jan 14, 2014 - Investigations and Government Operations committee Vote

S2710
7
1
committee
7
Aye
1
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Jan 14, 2014

nay (1)
aye wr (1)

Jun 11, 2013 - Finance committee Vote

S2710
30
3
committee
30
Aye
3
Nay
3
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Finance committee vote details

Jun 11, 2013 - Rules committee Vote

S2710
17
4
committee
17
Aye
4
Nay
4
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Apr 30, 2013 - Investigations and Government Operations committee Vote

S2710
7
0
committee
7
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Apr 30, 2013

aye wr (2)

Co-Sponsors

S2710 - Bill Details

See Assembly Version of this Bill:
A5936
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd ยง1138, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S4943, A8129

S2710 - Bill Texts

view summary

Requires the commissioner of taxation and finance, when using external indices to determine sales and compensating use tax due because of failure to file a return or filing of an incorrect return, to use external indices which reflect local economic conditions.

view sponsor memo
BILL NUMBER:S2710

TITLE OF BILL: An act to amend the tax law, in relation to the determi-
nation of sales and compensating use taxes due

PURPOSE: This bill would require that any external economic indices
used by the Department of Taxation and Finance in estimating sales tax
payments due must utilize regional economic indices to reflect the wide
variation of the costs of goods and services sold throughout the state.

SUMMARY OF PROVISIONS: This bill would amend subdivision (a) of section
1138 of the tax law by adding a new paragraph (5) to require that when-
ever the Commissioner of Taxation and Finance is determining the amount
of sales tax owed, in instances in where a required sales tax filing has
not been made or there has been an incorrect or insufficient sales tax
payment, the Commissioner must utilize a regional economic index to
estimating the correct tax payment to be made.

JUSTIFICATION: New York State has hired hundreds of new auditors over
the past few years and unleashed them on unsuspecting taxpayers. Thou-
sands of retail merchants across the state have been subject to new
audit tactics apparently designed to generate as much revenue as possi-
ble. The most insidious of these tactics is the practice of determining
a merchant's sales tax assessment based on external indices rather than
the merchant's records. Oftentimes the external indices are not based on
local standards thereby leading to drastically distorted assessments far
exceeding any reasonable estimate. One of the most common indices used
by the Department is based on an analysis of less than 100 businesses.
The Department continues to use this index in spite of a specific note
by the study's authors that it is not statically reliable for such
purposes. This bill would prohibit the Department of Tax and Finance
from using any external index that does not reflect local economic
conditions. It ensures that anytime a sales tax assessment is imposed on
a retail merchant not based on the merchant's records it will be more
fair since the merchant's local area will be the basis of comparison.
These business owners are the backbone of the state's economy and
deserve to have their taxes determined in a fair manner. This bill will
restore fairness to the tax assessment process and help retail merchants
in New York live up to their legitimate tax assessments.

LEGISLATIVE HISTORY: 2011,2012: S.4943/A.8129 Passed the Senate

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  2710

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by Sens. YOUNG, RANZENHOFER -- read twice and ordered print-
  ed, and when printed to be committed  to  the  Committee  on  Investi-
  gations and Government Operations

AN  ACT  to amend the tax law, in relation to the determination of sales
  and compensating use taxes due

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

  Section  1.  Subdivision (a) of section 1138 of the tax law is amended
by adding a new paragraph 5 to read as follows:
  (5) WHENEVER A RETURN REQUIRED BY THIS ARTICLE IS NOT FILED, OR  IF  A
RETURN  WHEN  FILED  IS INCORRECT OR INSUFFICIENT, AND THE AMOUNT OF TAX
DUE IS DETERMINED BY THE COMMISSIONER FROM SUCH INFORMATION  AS  MAY  BE
AVAILABLE  PURSUANT  TO PARAGRAPH ONE OF THIS SUBDIVISION, ANY  EXTERNAL
INDICES USED TO ESTIMATE THE TAX DUE SHALL REFLECT  THE  LOCAL  ECONOMIC
CONDITIONS.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06950-01-3

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