S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10902
 
                           I N  A S S E M B L Y
 
                              August 17, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Stern) --
   read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to thresholds for  establishing
   presence,  residency  or  doing business in the state for out-of-state
   companies including affiliates of in-state companies that  temporarily
   provide resources and personnel in the state during the COVID-19 state
   of emergency
 
   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 article 42  to  read
 as follows:
                                ARTICLE 42
                       WELCOME HEROES TAX RELIEF ACT
 SECTION 3100. SHORT TITLE.
         3101. DEFINITIONS.
         3102. BUSINESS AND EMPLOYEE STATUS DURING COVID-19 PERIOD.
         3103. TRANSACTION TAXES AND FEES.
         3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER COVID-19 PERIOD.
         3105. NOTIFICATION  OF  OUT-OF-STATE  BUSINESS  DURING  COVID-19
                 PERIOD.
         3106. NOTIFICATION OF INTENT TO REMAIN IN STATE.
         3107. SEVERABILITY.
   § 3100. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "WELCOME HEROES TAX RELIEF ACT OF 2020".
   § 3101. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "REGISTERED BUSINESS IN THE STATE" (OR "REGISTERED BUSINESS") MEANS
 A  BUSINESS  ENTITY  THAT IS CURRENTLY REGISTERED TO DO BUSINESS IN THIS
 STATE PRIOR TO THE DECLARED COVID-19 STATE EMERGENCY.
   2. "OUT-OF-STATE BUSINESS" MEANS A BUSINESS ENTITY THAT HAS  NO  PRES-
 ENCE  IN  THIS  STATE  AND  CONDUCTS  NO  BUSINESS  IN THIS STATE, WHOSE
 SERVICES ARE ONLY SOUGHT, OBTAINED OR REQUESTED BY A REGISTERED BUSINESS
 OR BY THIS STATE OR  A  LOCAL  GOVERNMENT  FOR  PURPOSES  OF  PERFORMING
 COVID-19 EMERGENCY RELATED WORK OR SERVICES IN THIS STATE.  OUT-OF-STATE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16872-01-0

 A. 10902                            2
 
 BUSINESS  SHALL ALSO INCLUDE A BUSINESS ENTITY THAT IS AFFILIATED WITH A
 REGISTERED BUSINESS IN THIS STATE SOLELY THROUGH COMMON  OWNERSHIP.  THE
 OUT-OF-STATE  BUSINESS  HAS  NO REGISTRATIONS OR TAX FILINGS OR NEXUS IN
 THIS STATE PRIOR TO THE DECLARED COVID-19 EMERGENCY.
   3. "OUT-OF-STATE EMPLOYEE" MEANS AN EMPLOYEE WHO DOES NOT WORK IN THIS
 STATE, EXCEPT FOR COVID-19 EMERGENCY RELATED WORK OR SERVICES DURING THE
 COVID-19  PERIOD  AND  IS ONLY PRESENT IN THIS STATE DURING THE COVID-19
 PERIOD TO PROVIDE THE COVID-19 EMERGENCY RELATED WORK OR SERVICES.
   4. "COMMISSIONER" MEANS COMMISSIONER OF THE DEPARTMENT OF TAXATION AND
 FINANCE.
   5. "DECLARED COVID-19 STATE EMERGENCY" MEANS THE  STATE  OF  EMERGENCY
 DECLARED  BY GOVERNOR ANDREW CUOMO ON MARCH SEVENTH, TWO THOUSAND TWENTY
 IN RESPONSE TO THE OUTBREAK OF THE NOVEL CORONAVIRUS,  COVID-19  IN  NEW
 YORK STATE.
   6.  "COVID-19  PERIOD"  MEANS  THE PERIOD BEGINNING MARCH SEVENTH, TWO
 THOUSAND TWENTY AND ENDING ON JUNE THIRTIETH, TWO THOUSAND TWENTY OR FOR
 ANY LONGER PERIOD AUTHORIZED BY THE COMMISSIONER.
   7. "COVID-19 EMERGENCY RELATED WORK OR SERVICES" MEANS  PROVIDING  THE
 MANAGEMENT,  TREATMENT,  TRANSFER,  CARE,  AND/OR  CURE  OF  INDIVIDUALS
 SUFFERING FROM  NOVEL  CORONAVIRUS,  COVID-19,  AND  INCLUDES  WORK  AND
 SERVICES  SUPPORTING  THE MANAGEMENT, TREATMENT, TRANSFER AND/OR CARE OF
 SUCH INDIVIDUALS SUFFERING FROM NOVEL CORONAVIRUS, COVID-19.
   § 3102. BUSINESS AND EMPLOYEE STATUS DURING COVID-19 PERIOD.    1.  AN
 OUT-OF-STATE  BUSINESS  THAT  CONDUCTS  OPERATIONS WITHIN THIS STATE FOR
 PURPOSES OF PERFORMING  COVID-19  EMERGENCY  RELATED  WORK  OR  SERVICES
 DURING THE COVID-19 PERIOD SHALL NOT BE CONSIDERED TO HAVE ESTABLISHED A
 LEVEL  OF  PRESENCE  THAT  WOULD REQUIRE THAT BUSINESS TO REGISTER, FILE
 AND/OR REMIT STATE OR LOCAL TAXES OR THAT WOULD REQUIRE THAT BUSINESS OR
 ITS OUT-OF-STATE EMPLOYEES TO BE  SUBJECT  TO  ANY  STATE  LICENSING  OR
 REGISTRATION  REQUIREMENTS.  THIS  INCLUDES  ANY  AND ALL STATE OR LOCAL
 BUSINESS LICENSING OR REGISTRATION REQUIREMENTS OR STATE AND LOCAL TAXES
 OR FEES INCLUDING, BUT NOT LIMITED TO, UNEMPLOYMENT INSURANCE, SALES AND
 USE TAX OR AD VALOREM TAX ON  EQUIPMENT  USED  OR  CONSUMED  DURING  THE
 COVID-19  PERIOD.  FOR PURPOSES OF ANY STATE OR LOCAL TAX ON OR MEASURED
 BY, IN WHOLE OR IN PART, NET OR GROSS INCOME OR RECEIPTS,  ALL  ACTIVITY
 OF THE OUT-OF-STATE BUSINESS THAT IS CONDUCTED IN THIS STATE PURSUANT TO
 THIS  ARTICLE  SHALL  BE DISREGARDED WITH RESPECT TO ANY FILING REQUIRE-
 MENTS FOR SUCH TAX INCLUDING  THE  FILING  REQUIRED  FOR  A  UNITARY  OR
 COMBINED GROUP OF WHICH THE OUT-OF-STATE BUSINESS MAY BE A PART.
   2.  ANY  OUT-OF-STATE  EMPLOYEE  AS  DEFINED  IN  SUBDIVISION THREE OF
 SECTION THIRTY-ONE HUNDRED ONE OF THIS ARTICLE SHALL NOT  BE  CONSIDERED
 TO  HAVE  ESTABLISHED  RESIDENCY  OR A PRESENCE IN THIS STATE THAT WOULD
 REQUIRE THAT PERSON OR THAT PERSON'S EMPLOYER TO  FILE  AND  PAY  INCOME
 TAXES  OR  TO  BE  SUBJECTED  TO TAX WITHHOLDINGS OR TO FILE AND PAY ANY
 OTHER STATE OR LOCAL  TAX  OR  FEE  DURING  THE  DISASTER  PERIOD.  THIS
 INCLUDES  ANY RELATED STATE OR LOCAL EMPLOYER WITHHOLDING AND REMITTANCE
 OBLIGATIONS.
   § 3103. TRANSACTION TAXES AND FEES. OUT-OF-STATE BUSINESSES  AND  OUT-
 OF-STATE  EMPLOYEES  SHALL BE REQUIRED TO PAY TRANSACTION TAXES AND FEES
 INCLUDING, BUT NOT LIMITED TO, FUEL TAXES OR SALES AND COMPENSATING  USE
 TAXES  ON  MATERIALS  OR  SERVICES SUBJECT TO SALES AND COMPENSATING USE
 TAXES, HOTEL TAXES, CAR RENTAL  TAXES  OR  FEES  THAT  THE  OUT-OF-STATE
 AFFILIATED  BUSINESS  OR  OUT-OF-STATE  EMPLOYEE  PURCHASES  FOR  USE OR
 CONSUMPTION IN THIS STATE DURING THE COVID-19 PERIOD, UNLESS SUCH  TAXES
 ARE OTHERWISE EXEMPTED DURING THE COVID-19 PERIOD.

 A. 10902                            3

   §  3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER COVID-19 PERIOD. ANY OUT-
 OF-STATE BUSINESS OR OUT-OF-STATE EMPLOYEE THAT REMAINS  IN  THIS  STATE
 AFTER  THE  COVID-19  PERIOD  WILL BECOME SUBJECT TO THIS STATE'S NORMAL
 STANDARDS FOR ESTABLISHING PRESENCE, RESIDENCY OR DOING BUSINESS IN  THE
 STATE AND WILL THEREFORE BECOME RESPONSIBLE FOR ANY BUSINESS OR EMPLOYEE
 TAX REQUIREMENTS THAT ENSUE.
   §  3105. NOTIFICATION OF OUT-OF-STATE BUSINESS DURING COVID-19 PERIOD.
 1. THE OUT-OF-STATE BUSINESS THAT ENTERS THIS STATE SHALL, UPON REQUEST,
 PROVIDE THE DEPARTMENT WITH A STATEMENT THAT IT IS  IN  THIS  STATE  FOR
 PURPOSES  OF  RESPONDING  TO DECLARED COVID-19 STATE OF EMERGENCY, WHICH
 STATEMENT SHALL INCLUDE THE BUSINESS' NAME, STATE OF DOMICILE, PRINCIPAL
 BUSINESS ADDRESS, FEDERAL TAX IDENTIFICATION NUMBER, DATE OF ENTRY,  AND
 CONTACT INFORMATION.
   2.  A  REGISTERED  BUSINESS IN THIS STATE SHALL, UPON REQUEST, PROVIDE
 THE INFORMATION REQUIRED IN SUBDIVISION ONE  OF  THIS  SECTION  FOR  ANY
 AFFILIATE  THAT  ENTERS THIS STATE THAT IS AN OUT-OF-STATE BUSINESS. THE
 NOTIFICATION SHALL ALSO INCLUDE CONTACT INFORMATION FOR  THE  REGISTERED
 BUSINESS IN THIS STATE.
   §  3106.  NOTIFICATION  OF  INTENT TO REMAIN IN STATE. AN OUT-OF-STATE
 BUSINESS OR AN OUT-OF-STATE EMPLOYEE THAT REMAINS IN  THIS  STATE  AFTER
 THE COVID-19 PERIOD SHALL COMPLETE STATE AND LOCAL REGISTRATION, LICENS-
 ING  AND  FILING REQUIREMENTS THAT ENSUE AS A RESULT OF ESTABLISHING THE
 REQUISITE BUSINESS PRESENCE OR RESIDENCY IN THIS STATE APPLICABLE  UNDER
 THE EXISTING RULES.
   §  3107.  SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
 PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT  JURIS-
 DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVALI-
 DATE  THE  REMAINDER  THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
 THE CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF  DIRECTLY
 INVOLVED  IN  THE  CONTROVERSY  IN  WHICH  THE  JUDGMENT SHALL HAVE BEEN
 RENDERED.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after March 7, 2020; provided,
 however,  the  commissioner  of  taxation  and  finance is authorized to
 promulgate any rules or regulations, and  develop  and  issue  forms  or
 online processes necessary for the timely implementation of this act.