The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    530
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to  exempting  from  sales  and
   compensating  use  taxes any equipment or product purchased by restau-
   rant or food service establishment for use in  outdoor  dining  during
   the novel coronavirus (COVID-19)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 46 to read as follows:
   (46)  ANY  EQUIPMENT  OR  PRODUCT  PURCHASED BY ANY RESTAURANT OR FOOD
 SERVICE ESTABLISHMENT FOR THE USE IN OUTDOOR  DINING  DURING  THE  NOVEL
 CORONAVIRUS (COVID-19) PANDEMIC.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 55 to read as follows:
   55. SALES TAX PAID ON OUTDOOR DINING EQUIPMENT  CREDIT.  (1)  FOR  THE
 PERIOD  BEGINNING  JUNE  FOURTH,  TWO  THOUSAND TWENTY AND ENDING ON THE
 EFFECTIVE DATE OF THIS SUBDIVISION, A TAXPAYER WHO OWNS A RESTAURANT  OR
 FOOD  SERVICE ESTABLISHMENT SHALL BE ALLOWED A CREDIT FOR SALES TAX PAID
 FOR ANY EQUIPMENT OR PRODUCT PURCHASED  BY  SUCH  TAXPAYER  FOR  USE  IN
 OUTDOOR DINING DURING THE NOVEL CORONAVIRUS (COVID-19) PANDEMIC.
   (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK) SALES TAX PAID ON OUTDOOR DINING EQUIPMENT CREDIT. (1)  FOR  THE
 PERIOD  BEGINNING  JUNE  FOURTH,  TWO  THOUSAND TWENTY AND ENDING ON THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03424-01-1

 S. 530                              2
 
 EFFECTIVE DATE OF THIS SUBSECTION, A TAXPAYER WHO OWNS A  RESTAURANT  OR
 FOOD  SERVICE ESTABLISHMENT SHALL BE ALLOWED A CREDIT FOR SALES TAX PAID
 FOR ANY EQUIPMENT OR PRODUCT PURCHASED  BY  SUCH  TAXPAYER  FOR  USE  IN
 OUTDOOR DINING DURING THE NOVEL CORONAVIRUS (COVID-19) PANDEMIC.
   (2)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlvi) to read as
 follows:
   (XLVI) SALES TAX PAID ON OUTDOOR                    SALES TAX PAID ON
   DINING EQUIPMENT CREDIT                             OUTDOOR DINING
   UNDER SUBSECTION (KKK)                              EQUIPMENT CREDIT
                                                       UNDER SUBDIVISION
                                                       FIFTY-FIVE OF
                                                       SECTION TWO
                                                       HUNDRED TEN-B
   § 5. This act shall take effect on the first day of a sales tax  quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law,  next  commencing  at  least  thirty days after this act shall have
 become a law and shall apply in accordance with the  applicable  transi-
 tional  provisions  of  sections  1106 and 1217 of the tax law; provided
 that the commissioner of taxation and finance shall be authorized on and
 after the date this act shall have become a law to take steps  necessary
 to implement the provisions of this act on its effective date.