Senate Bill S6892

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6892
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 12, 2023
                                ___________
 
 Introduced  by  Sen.  CHU  --  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 enacting the  "microbusiness
   resiliency and growth act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "microbusiness resiliency and growth act".
   §  2.  Section 1105 of the tax law is amended by adding a new subdivi-
 sion (g) to read as follows:
   (G) FOR THE PURPOSES OF THIS CHAPTER, "MICROBUSINESS" SHALL BE DEFINED
 AS A BUSINESS EMPLOYING FIVE OR  FEWER  PERSONS,  IS  RESIDENT  IN  THIS
 STATE,  IS  INDEPENDENTLY  OWNED  AND  OPERATED,  IS NOT DOMINANT IN ITS
 FIELD, AND DOES NOT CONDUCT ITS BUSINESS TRANSACTIONS PRIMARILY OVER THE
 INTERNET.  WHEN THE GOODS OR SERVICES ARE PURCHASED FROM A MICROBUSINESS
 WITHIN THE FIRST FIVE YEARS OF THE OPENING OF SUCH  MICROBUSINESS  OR  A
 MICROBUSINESS  WITH  A  GROSS PROFIT OF FIVE HUNDRED THOUSAND DOLLARS OR
 LESS IN THE PRIOR TAX YEAR,  TAX PAID ON SUCH SALES FOR THE  FIRST  YEAR
 SHALL  BE  ZERO  PERCENT AND IN THE SECOND YEAR, SUCH SALES TAX SHALL BE
 TWO PERCENT PROVIDED, HOWEVER THAT THE PROFIT GENERATED  ON  SUCH  FIRST
 AND SECOND YEAR SALES TAX REDUCTION IS COLLECTED UP UNTIL THE DIFFERENCE
 BETWEEN  THE  PRIOR AND CURRENT MINIMUM WAGE PURSUANT TO SUBDIVISION ONE
 OF SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW  IN  CONCURRENCE  WITH
 QUARTERLY  SALES  TAX PERIODS AS PRESCRIBED BY THE DEPARTMENT. AFTER THE
 END OF THE SECOND YEAR, SALES TAXES SHALL RETURN TO  FOUR  PERCENT.  TAX
 PAID ON SALES AFTER THE PROFIT DIFFERENCE BETWEEN THE PRIOR MINIMUM WAGE
 AND  CURRENT  MINIMUM  WAGE  PURSUANT  TO SUBDIVISION ONE OF SECTION SIX
 HUNDRED FIFTY-TWO OF THE LABOR LAW IS MET SHALL RETURN TO FOUR  PERCENT.
 MICROBUSINESSES THAT ELECT TO USE A SEGREGATED SALES TAX ACCOUNT FOR THE
 HANDLING  OF  TRANSACTIONS  WITH THE DEPARTMENT, OR ARE REQUIRED TO KEEP
 SUCH AN ACCOUNT PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-SEVEN OF  THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11020-01-3
              

 S. 6892                             2
 
 ARTICLE  MUST DEDUCT THE AFOREMENTIONED PROFIT FROM THE SEGREGATED SALES
 TAX ACCOUNT WITHIN ONE WEEK OF DEPOSIT.
   §  3.  Section 1135 of the tax law is amended by adding a new subdivi-
 sion (f-1) to read as follows:
   (F-1) EVERY MICROBUSINESS OWNER SHALL KEEP RECORDS OF  THE  NUMBER  OF
 EMPLOYEES,  THEIR  WAGE,  AND THE AMOUNT OF THE SALES TAX REDUCTION ON A
 QUARTERLY BASIS AND IN THE MANNER PRESCRIBED BY THE COMMISSIONER  PURSU-
 ANT TO RULES AND REGULATIONS.
   §  4.  This  act  shall  take effect on the first day of the sales tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax law, next commencing at least 90 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.