S T A T E   O F   N E W   Y O R K
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                                  5908

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 6, 2015
                               ___________

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

AN  ACT to amend the tax law, in relation to requiring issuers of credit
  cards and debit cards to pay and collect sales and use taxes  and  pay
  such taxes to the commissioner of taxation and finance

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

  Section 1. The tax law is amended by adding a new section 1168 to read
as follows:
  S 1168. COLLECTION AND PAYMENT OF TAXES BY PROCESSORS OF CREDIT  CARDS
AND  DEBIT CARDS. (A) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE
CONTRARY, AN ISSUER OF CREDIT  CARDS  OR  DEBIT  CARDS,  AS  DEFINED  IN
SECTION  FIVE  HUNDRED ELEVEN OF THE GENERAL BUSINESS LAW, SHALL COLLECT
AND PAY TAXES IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE  OF  THIS
CHAPTER,  AND  SHALL  BE SUBJECT TO ALL PROVISIONS OF SUCH ARTICLES AS A
PERSON REQUIRED TO COLLECT TAX, AS DEFINED IN SUBDIVISION ONE OF SECTION
ELEVEN HUNDRED THIRTY-ONE OF THIS CHAPTER ON ALL TRANSACTIONS  CONDUCTED
WITH  A  CREDIT OR DEBIT CARD OF THE ISSUER, PROVIDED, HOWEVER, NOTWITH-
STANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, SUCH  TAXES  SHALL
BE PAID DIRECTLY TO THE COMMISSIONER BY THE ISSUER.
  (B)  NOTWITHSTANDING  ANY  LAW, RULE OR REGULATION TO THE CONTRARY, ON
ANY TRANSACTION CONDUCTED WITH A DEBIT OR CREDIT  CARD  OF  THE  ISSUER,
WHEREIN  THE  ISSUER  IS  REQUIRED  TO COLLECT AND PAY TAXES PURSUANT TO
SUBDIVISION (A) OF THIS SECTION, THE VENDOR OF TANGIBLE PERSONAL PROPER-
TY OR SERVICES INVOLVED IN SAID TRANSACTION SHALL NOT BE REQUIRED TO PAY
AND COLLECT TAXES PURSUANT TO ARTICLES TWENTY-EIGHT AND  TWENTY-NINE  OF
THIS CHAPTER, RATHER THIS DUTY SHALL BE IMPOSED UPON PROCESSORS.
  (C)  FOR  PURPOSES  OF  THIS  SECTION, PROCESSOR SHALL MEAN ANY ENTITY
WHICH CONTRACTS WITH VENDORS TO PROCESS THEIR CREDIT CARD  RECEIPTS  AND
WHO  FOR  A FEE, OBTAIN FUNDS FOR VENDORS FROM SUCH ISSUERS OF CREDIT OR
DEBIT CARDS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01122-01-5
              

A. 5908                             2

  S 2. This act shall take effect on the first of October next  succeed-
ing the date on which it shall have become a law. Effective immediately,
any  rules  and  regulations  necessary for the timely implementation of
this act on its effective date may be  promulgated  on  or  before  such
date.