Assembly Bill A10091

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10091
 
                           I N  A S S E M B L Y
 
                              March 10, 2020
                                ___________
 
 Introduced by M. of A. PAULIN, BUCHWALD -- read once and referred to the
   Committee on Ways and Means
 
 AN  ACT to amend the tax law, in relation to codifying existing guidance
   on the application of sales and use tax
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Paragraph 3 of subdivision (b) of section 1101 of the tax
 law, as amended by section 21 of part Y of chapter 63  of  the  laws  of
 2000, is amended to read as follows:
   (3)  Receipt. (I) The amount of the sale price of any property and the
 charge for any service taxable under this article, including gas and gas
 service and electricity and electric service of whatever nature,  valued
 in  money,  whether received in money or otherwise, including any amount
 for which credit is allowed by the vendor to the purchaser, without  any
 deduction for expenses or early payment discounts and also including any
 charges  by  the  vendor to the purchaser for shipping or delivery, and,
 with respect to  gas  and  gas  service  and  electricity  and  electric
 service,  any  charges by the vendor for transportation, transmission or
 distribution, regardless of whether such charges are  separately  stated
 in  the  written  contract,  if  any,  or  on  the bill rendered to such
 purchaser and regardless of whether such shipping or delivery or  trans-
 portation, transmission, or distribution is provided by such vendor or a
 third  party,  but  excluding  any credit for tangible personal property
 accepted in part payment and intended  for  resale.  For  special  rules
 governing  computation of receipts, see section eleven hundred eleven OF
 THIS ARTICLE.
   (II) RECEIPT SHALL INCLUDE CONSIDERATION RECEIVED BY THE  VENDOR  FROM
 THIRD PARTIES IF:
   (A)  THE  VENDOR  RECEIVES  CONSIDERATION  FROM A PARTY OTHER THAN THE
 PURCHASER AND THE CONSIDERATION IS DIRECTLY RELATED TO A PRICE REDUCTION
 OR DISCOUNT ON THE SALE;
   (B) THE VENDOR HAS AN OBLIGATION TO PASS THROUGH TO THE PURCHASER  THE
 PRICE REDUCTION OR DISCOUNT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15757-01-0

 A. 10091                            2
 
   (C)  THE AMOUNT OF THE CONSIDERATION ATTRIBUTABLE TO THE SALE IS FIXED
 AND DETERMINABLE BY THE VENDOR AT THE TIME OF THE SALE OF  THE  ITEM  TO
 THE PURCHASER; AND
   (D) ONE OF THE FOLLOWING CRITERIA IS MET:
   (I)  THE  PURCHASER PRESENTS A COUPON, CERTIFICATE OR OTHER DOCUMENTA-
 TION TO THE VENDOR TO CLAIM A PRICE  REDUCTION  OR  DISCOUNT  WHERE  THE
 COUPON,  CERTIFICATE  OR  DOCUMENTATION  IS  AUTHORIZED,  DISTRIBUTED OR
 GRANTED BY A THIRD PARTY WITH THE UNDERSTANDING  THAT  THE  THIRD  PARTY
 SHALL REIMBURSE ANY VENDOR TO WHOM THE COUPON, CERTIFICATE OR DOCUMENTA-
 TION IS PRESENTED;
   (II)  THE  PURCHASER PRESENTS IDENTIFICATION AS A MEMBER OF A GROUP OR
 ORGANIZATION ENTITLED TO A PRICE REDUCTION OR DISCOUNT; OR
   (III) THE PRICE REDUCTION OR DISCOUNT IS IDENTIFIED AS A  THIRD  PARTY
 PRICE  REDUCTION OR DISCOUNT ON THE INVOICE RECEIVED BY THE PURCHASER OR
 ON A  COUPON,  CERTIFICATE  OR  OTHER  DOCUMENTATION  PRESENTED  BY  THE
 PURCHASER.
   (III)  SUBCLAUSE (II) OF CLAUSE (D) OF SUBPARAGRAPH (II) OF THIS PARA-
 GRAPH SHALL NOT APPLY TO EMPLOYEE DISCOUNTS THAT  ARE  REIMBURSED  BY  A
 THIRD PARTY ON SALES OF MOTOR VEHICLES.
   (IV)  FOR THE PURPOSES OF SUBCLAUSE (II) OF CLAUSE (D) OF SUBPARAGRAPH
 (II) OF THIS PARAGRAPH, "IDENTIFICATION AS A MEMBER OF A GROUP OR ORGAN-
 IZATION ENTITLED TO A PRICE REDUCTION OR DISCOUNT" SHALL NOT INCLUDE THE
 PRESENTATION OF A CUSTOMER LOYALTY OR RELATED REWARDS PROGRAM CARD.
   § 2. This act shall take effect immediately and shall apply to all tax
 periods for which (a) the statute of limitations for seeking a refund or
 assessing additional tax are still open under the tax  law  or  (b)  for
 which any claim could be made under the New York false claims act.