S T A T E O F N E W Y O R K
________________________________________________________________________
734
2021-2022 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 6, 2021
___________
Introduced by M. of A. D. ROSENTHAL -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law and the state finance law, in relation to
sales tax on digital advertising; to amend the education law, in
relation to zero interest undergraduate loan refinancing; and provid-
ing for the repeal of such provisions upon the expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (c) of section 1105 of the tax law is amended
by adding a new paragraph 1-a to read as follows:
(1-A) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE RECEIPTS FROM EVERY SALE, EXCEPT FOR RESALE, OF DIGITAL ADVER-
TISING SERVICES. FOR PURPOSES OF THIS PARAGRAPH:
(I) "DIGITAL ADVERTISING SERVICES" MEANS ADVERTISEMENT SERVICES ON A
DIGITAL INTERFACE, INCLUDING ADVERTISEMENTS IN THE FORM OF BANNER ADVER-
TISING, SEARCH ENGINE ADVERTISING, INTERSTITIAL ADVERTISING, AND OTHER
COMPARABLE ADVERTISING SERVICES WHICH MARKETS OR PROMOTES A PARTICULAR
GOOD, SERVICE, OR POLITICAL CANDIDATE OR MESSAGE.
(II) "DIGITAL INTERFACE" MEANS ANY TYPE OF SOFTWARE, INCLUDING A
WEBSITE, PART OF A WEBSITE, OR APPLICATION, THAT A USER IS ABLE TO
ACCESS.
(III) "USER" MEANS AN INDIVIDUAL OR ANY OTHER PERSON WHO ACCESSES A
DIGITAL INTERFACE WITH A DEVICE.
ALL REVENUE RECEIVED FROM THE IMPOSITION OF THIS TAX SHALL BE DEPOSIT-
ED INTO THE DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTABLISHED
PURSUANT TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
§ 2. The state finance law is amended by adding a new section 78-c to
read as follows:
§ 78-C. DIGITAL ADVERTISING SERVICES TAX REVENUE FUND. 1. THERE IS
HEREBY CREATED AND ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMP-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03764-01-1
A. 734 2
TROLLER A SPECIAL FUND TO BE KNOWN AS THE DIGITAL ADVERTISING SERVICES
TAX REVENUE FUND WHICH SHALL BE FOR THE EXCLUSIVE BENEFIT OF PROVIDING
ZERO INTEREST REFINANCING OF ELIGIBLE EDUCATION LOANS BY THE HIGHER
EDUCATION SERVICES CORPORATION UNDER SECTION SIX HUNDRED EIGHTY-THREE-C
OF THE EDUCATION LAW.
2. AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF THE
STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE OR THE HIGHER EDUCATION
SERVICES CORPORATION. THE OBLIGATIONS OF THE FUND SHALL NOT BE, OR BE
DEEMED, THE DEBTS OR OBLIGATIONS OF THE STATE AND THE STATE SHALL NOT
BE, OR BE DEEMED, IN ANY WAY OBLIGATED TO ANY HOLDER OF ANY SUCH EDUCA-
TION LOAN.
3. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE DEPARTMENT OF
TAXATION AND FINANCE PURSUANT TO PARAGRAPH ONE-A OF SUBDIVISION (C) OF
SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW. MONEYS IN THE FUND SHALL BE
SEGREGATED FROM ALL OTHER FUNDS KEPT BY THE STATE COMPTROLLER AND SHALL
NOT BE USED FOR ANY OTHER PURPOSE BEYOND THOSE SET FORTH IN SECTION SIX
HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW OR IN THIS SECTION.
4. THE STATE COMPTROLLER SHALL MAKE PAYMENTS FROM THE FUND IN AMOUNTS
AND AT TIMES REQUIRED BY THE HIGHER EDUCATION SERVICES CORPORATION
PURSUANT SECTION SIX HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW.
§ 3. The education law is amended by adding a new section 683-c to
read as follows:
§ 683-C. REFINANCE OF UNDERGRADUATE STUDENT LOANS. 1. AN ELIGIBLE
BORROWER, AS DEFINED IN THIS SECTION, MAY APPLY TO HAVE THEIR FEDERAL
AND PRIVATE UNDERGRADUATE EDUCATION LOANS REFINANCED BY THE CORPORATION.
THE MAXIMUM AMOUNT ALLOWED TO BE REFINANCED UNDER THIS SECTION SHALL BE
ONE HUNDRED THOUSAND DOLLARS. THE MINIMUM AMOUNT TO BE REFINANCED SHALL
BE THREE THOUSAND DOLLARS.
2. AN ELIGIBLE BORROWER SHALL INCLUDE AN INDIVIDUAL WHO: (A) HAS BEEN
A NEW YORK STATE RESIDENT FOR AT LEAST TWENTY-FOUR CONSECUTIVE MONTHS
PRIOR TO APPLICATION FOR REFINANCING; (B) OWES LESS THAN ONE HUNDRED
THOUSAND DOLLARS IN FEDERAL AND PRIVATE UNDERGRADUATE EDUCATION LOANS;
AND (C) IS CURRENT ON THEIR LOAN PAYMENTS.
3. BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-THREE, THE CORPORATION
SHALL OFFER ZERO PERCENT INTEREST RATE REFINANCING BASED ON AVAILABILITY
OF FUNDS IN THE DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTAB-
LISHED IN SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
4. (A) A BORROWER MAY BE GRANTED DEFERMENT OR FORBEARANCE UP TO TWO
TIMES DURING THE REPAYMENT PERIOD UPON A SHOWING OF ECONOMIC HARDSHIP.
(B) THE CORPORATION SHALL ESTABLISH TERMS FOR REPAYMENT OF LOANS ON
THE BASIS OF THE INCOME OF THE BORROWER. THERE SHALL BE NO PENALTY FOR
PREPAYMENT.
(C) LOANS REFINANCED UNDER THIS SECTION SHALL BE ELIGIBLE FOR LOAN
FORGIVENESS PROGRAMS AVAILABLE TO PUBLIC SERVICE EMPLOYEES.
5. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THE PROVISIONS
OF THIS SECTION.
§ 4. This act shall take effect on the thirtieth day after it shall
have become a law and shall apply to sales made and uses occurring on
and after such date although made, occurring or rendered under a prior
contract; provided that this act shall expire and be deemed repealed 5
years after such effective date.