Senate Bill S8365

2017-2018 Legislative Session

Relates to tax benefits for businesses located in tax-free NY areas

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 03, 2018	referred to investigations and government operations

2017-S8365 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§39 & 1116, Tax L

2017-S8365 (ACTIVE) - Summary

Provides a sales tax exemption for businesses in tax-free NY areas for a period of up to one hundred twenty consecutive months.

2017-S8365 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8365

SPONSOR: GOLDEN
 
TITLE OF BILL:

An act to amend the tax law, in relation to tax benefits for businesses
located in tax-free NY areas

 
PURPOSE:

This bill would amend the START-UP NY program to change the sales tax
refund or credit that eligible firms are granted to a sales tax
exemption. This change would save these nascent job creators substantial
time and regulatory savings, and provide a degree of cash flow relief.

 
SUMMARY OF PROVISIONS:

Section one of the bill would amend subdivision (f) of section 39 of the
Tax Law to change the current sales tax credit or refund available to
eligible START-UP NY firms to a sales tax exemption under the same
conditions that the current credit or refund is allowed.

Section 2 provides for the exemption in Article 28 of the Tax Law by
adding a new paragraph 10 to subdivision (a) of section 1116. This para-
graph would authorize an exemption for one hundred and twenty consec-
utive months to align with the current credit or refund period.

Section 3 provides an effective date on the first day of the second
sales tax quarter following the date on which it shall have become law.

 
JUSTIFICATION:

Currently, START-UP NY certified companies are eligible for a credit or
refund on sales and used taxes imposed on the retail sale of business
activity related retail sale of tangible personal property or services
for a period of one hundred and twenty consecutive months. Although, the
credit or refund of these taxes provide an undoubted benefit for these
firms, many START-UP NY companies are completely new and small busi-
nesses that find the refund process very time consuming and a substan-
tial regulatory hassle.

This bill will change the credit or refund to an exemption covering the
same products and services saving these crucial job creators, time,
effort, while also providing a small measure of cash flow relief.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the first day of the second sales tax
quarter following the date on which it shall become law.

2017-S8365 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8365
 
                             I N  S E N A T E
 
                                May 3, 2018
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to tax benefits for  businesses
   located in tax-free NY areas
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision (f) of section 39 of the tax law, as  added  by
 section  2  of  part  A of chapter 68 of the laws of 2013, is amended to
 read as follows:
   (f) Sales and use tax. Such business shall be [eligible for  a  credit
 or refund for sales and use taxes imposed] EXEMPT FROM SALES AND COMPEN-
 SATING  USE TAXES IMPOSED UNDER ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF
 THIS CHAPTER on  the  retail  sale  of  tangible  personal  property  or
 services  under subdivisions (a), (b), and (c) of section eleven hundred
 five and section eleven hundred ten of this chapter  and  similar  taxes
 imposed  pursuant  to the authority of article twenty-nine of this chap-
 ter. The [credit or refund] EXEMPTION shall be allowed for  one  hundred
 twenty  consecutive  months  beginning  with the month during which such
 business locates in the tax-free NY area.
   § 2. Subdivision (a) of section 1116 of the  tax  law  is  amended  by
 adding a new paragraph 10 to read as follows:
   (10) A BUSINESS APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOM-
 IC  DEVELOPMENT LAW FOR A PERIOD OF UP TO ONE HUNDRED TWENTY CONSECUTIVE
 MONTHS.
   § 3. This act shall take effect on the first day of the  second  sales
 tax quarter following the date on which it shall have become a law.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14973-01-8

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Senate Bill S8365

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2017-S8365 (ACTIVE) - Details

2017-S8365 (ACTIVE) - Summary

2017-S8365 (ACTIVE) - Sponsor Memo

2017-S8365 (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2017-S8365

Senate Bill S8365

Share this bill

Sponsored By

Martin J. Golden

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2017-S8365 (ACTIVE) - Details

2017-S8365 (ACTIVE) - Summary

2017-S8365 (ACTIVE) - Sponsor Memo

2017-S8365 (ACTIVE) - Bill Text download pdf

Comments