NYS Senator Rev. Ruben Diaz is calling upon Governor Paterson to support Senate Bill 774: an act to amend the tax law, in relation to requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and pay such taxes directly to the commissioner of the NYS Department of Taxation and Finance.
“While the Governor is now pressuring small business owners to properly remit their business taxes in an effort to balance the state’s fiscal needs, Governor Paterson has had an opportunity to do this all session by supporting my legislation, Senate Bill 774, which will ensure that New York State will receive over 500 million dollars in uncollected sales taxes”, said State Senator Diaz.
“Consider the case of the Cipriani Restaurants. They cheated the State out of millions of dollars in sales taxes on meals and drinks. If my bill was in place they could not have done this since the patrons who pay with credit cards (80%) would have their sales tax remitted by credit card companies directly to the State rather than have it returned to the vendor. The Cipriani’s own have a dozen restaurants, and there are hundred’s of thousands of pizza joints in New York City. Doesn’t it make sense to focus on the retailer’s who run their businesses with credit cards, rather than auditing the pizza shops? My legislation would correct the problem of sales tax scofflaws and allow the 125 auditors in the new Special Investigation Unit of the New York State Department of Taxation and Finance, to focus more efficiently on businesses which do not operate primarily on credit cards for their business.
The only one’s who are opposed to this legislation are the credit card companies who are very powerful. They are not going to like this, because it will tell the State how much money they are making in New York. There is no additional cost to the retailer’s or consumers, just an end to sales tax scofflaws.
For more information, please contact Senator Diaz at (718) 991-3161.
DIAZ, ADAMS, BRESLIN, CONNOR, DILAN, GONZALEZ, HASSELL-THOMPSON, HUNTLEY, C. JOHNSON, KRUEGER, ONORATO, PARKER, SABINI, SAMPSON, SCHNEIDERMAN, SMITH, STACHOWSKI, STAVISKY, STEWART-COUSINS, THOMPSON
Add S1168, Tax L
Provides that issuers of debit and credit cards shall pay sales and use taxes directly to the state tax commission.
STATE OF NEW YORK
2007-2008 Regular Sessions
January 9, 2007
Introduced by Sens. DIAZ, CONNOR, HASSELL-THOMPSON, SABINI, SAMPSON --
read twice and ordered printed, and when printed to be committed to
the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to requiring issuers of credit
cards and debit cards to pay and collect sales and use taxes and pay
such taxes to the commissioner of taxation and finance
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 1168 to read
2 as follows:
3 § 1168. Collection and payment of taxes by issuers of credit cards and
4 debit cards. (a) Notwithstanding any law, rule or regulation to the
5 contrary, an issuer of credit cards or debit cards, as defined in
6 section five hundred eleven of the general business law, shall collect
7 and pay taxes imposed by articles twenty-eight and twenty-nine of this
8 chapter, and shall be subject to all provisions of such articles as a
9 person required to collect tax, as defined in subdivision one of section
10 eleven hundred thirty-one of this chapter on all transactions conducted
11 with a credit or debit card of the issuer, provided, however, notwith-
12 standing any law, rule or regulation to the contrary, such taxes shall
13 be paid directly to the commissioner by the issuer.
14 (b) Notwithstanding any law, rule or regulation to the contrary, on
15 any transaction conducted with a debit or credit card of the issuer,
16 wherein the issuer is required to collect and pay taxes pursuant to
17 subdivision (a) of this section, the vendor of tangible personal proper-
18 ty or services involved in said transaction shall not be required to pay
19 and collect taxes pursuant to articles twenty-eight and twenty-nine of
20 this chapter.
21 § 2. This act shall take effect on the first of October next succeed-
22 ing the date on which it shall have become a law, except that any rules
23 and regulations necessary for the timely implementation of this act on
24 its effective date shall be promulgated on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets