Amd Part LL-1 §1, Chap 57 of 2008; amd §1134, Tax L
Prohibits the New York state department of taxation and finance from charging a fee for applications for a certificate of registration pursuant to a re-registration program.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2372
SPONSOR: Hawley TITLE OF BILL:
An act to amend section 1 of part LL-1 of chapter 57 of the laws of
2008, relating to directing the commissioner of taxation and finance to
institute a re-registration program, in relation to prohibiting the New
York state department of taxation and finance from charging a vendor
re-registration fee; to authorize the refund of all re-registration fees
collected by the New York state department of taxation and finance; and
to amend the tax law, in relation to prohibiting the New York state
department of taxation and finance from charging vendors any fees to
collect NYS sales tax
PURPOSE OR GENERAL IDEA OF BILL:
An act to repeal to amend section 1 of part LL-1 of the Chapter 57 of
the laws of 2008, relating to directing the Commissioner of Taxation and
Finance to institute a re-registration program, in relation to prohibit-
ing the New York State Department of Taxation and Finance from charging
a vendor re-registration fee and to authorize the refund of all re-re-
gistration fees collected by New York State Department of Taxation and
Finance; and to amend the law, in relation to prohibiting the New York
State Department of Taxation and Finance from charging vendors any fees
to collect New York State sales tax.
SUMMARY OF PROVISIONS:
Repeals part LL-1 of the Chapter 57 of the laws of 2008, relating to
directing the Commissioner of Taxation and Finance to institute a re-re-
gistration program for vendors who collect New York State sales tax and
amends current law to prohibit the New York State Department of Taxation
and Finance from charging vendors any fees to collect New York State
sales tax.
JUSTIFICATION:
New York State must become more business friendly by providing busi-
nesses with opportunities to succeed. The 2008 "Vendor Registration Fee"
is another disincentive to own and operate a business in New York State.
' The original certificate of registration to collect sales tax for the
New York State Department of Taxation and Finance was issued to busi-
nesses with no fees and no expiration date. Business in the state should
not have to pay for the privilege of collecting state sales tax. The
current law does not indicate that this is a one-time fee and many busi-
ness owners are leery that this will become another revenue stream for
the state on an ongoing basis and fees could increase as time goes on.
This bill would prevent the New York State Department of Taxation and
Finance from charging a registration fee for vendors to collect sales
tax and would return the fees that have been collected to the date upon
enactment of this law.
PRIOR LEGISLATIVE HISTORY:
A6739 - 06/01/22 held for consideration in ways and means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
$40 million to the state. Refund to New York State Business who paid to
register their business as a tax collection agency of the State of New
York.
EFFECTIVE DATE:
This act shall take effect immediately; provided that the provisions of
section two of this act shall apply to all certificates of Registration
required to be filed under section 1134 of the tax law pursuant to the
re-registration program instituted by the commissioner of taxation and
finance as authorized by section 1 of part LL-1 of chapter 57 of the
laws of 2008 and filed on or after November 1, 2008.
STATE OF NEW YORK
________________________________________________________________________
2372
2025-2026 Regular Sessions
IN ASSEMBLY
January 16, 2025
___________
Introduced by M. of A. HAWLEY -- read once and referred to the Committee
on Ways and Means
AN ACT to amend section 1 of part LL-1 of chapter 57 of the laws of
2008, relating to directing the commissioner of taxation and finance
to institute a re-registration program, in relation to prohibiting the
New York state department of taxation and finance from charging a
vendor re-registration fee; to authorize the refund of all re-regis-
tration fees collected by the New York state department of taxation
and finance; and to amend the tax law, in relation to prohibiting the
New York state department of taxation and finance from charging
vendors any fees to collect NYS sales tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1 of part LL-1 of chapter 57 of the laws of 2008,
2 relating to directing the commissioner of taxation and finance to insti-
3 tute a re-registration program, is amended to read as follows:
4 Section 1. The commissioner of taxation and finance is directed to
5 institute a re-registration program pursuant to section 1134 of the tax
6 law, which program should be completed by March 31, 2012. [Notwith-
7 standing any law to the contrary, every certificate of registration
8 filed pursuant to this re-registration program by a person required to
9 file sales and compensating use tax returns for the monthly or quarterly
10 periods described in section 1136 of the tax law must be accompanied by
11 a 50 dollar application fee to constitute a complete application. This
12 fee must be paid and disposed of in the same manner as the taxes imposed
13 by section 1105 of the tax law and may be determined, assessed,
14 collected and enforced in the same manner as the tax imposed by article
15 28 of the tax law. Notwithstanding section 1148 of the tax law, or any
16 other law to the contrary, such commissioner must retain from the appli-
17 cation fees collected or received an amount that such commissioner
18 determines is necessary to cover reasonable costs of such commissioner
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01147-01-5
A. 2372 2
1 in implementing, administering and enforcing registrations pursuant to
2 this section, but no more than the amount of those fees. The provisions
3 of subdivisions (a) and (c) of section 1139 of the tax law apply, except
4 that no interest is allowed or paid on any refund.] A person may be
5 subject to the re-registration program directed by this section even if
6 such person holds a certificate of authority that has not been in effect
7 for a period of at least three years.
8 § 2. Notwithstanding any law, rule or regulation to the contrary, all
9 50 dollar application fees collected by the department of taxation and
10 finance pursuant to the re-registration program instituted by the
11 commissioner of taxation and finance as authorized by section 1 of part
12 LL-1 of chapter 57 of the laws of 2008 shall be refunded to the persons
13 who paid such fees.
14 § 3. Paragraph 5 of subdivision (a) of section 1134 of the tax law, as
15 amended by chapter 2 of the laws of 1995, is amended to read as follows:
16 (5) If the commissioner considers it necessary for the proper adminis-
17 tration of the sales and use taxes and prepaid taxes imposed by this
18 article and pursuant to the authority of article twenty-nine of this
19 chapter, it may require every person under this section or section
20 twelve hundred fifty-three of this chapter who holds a certificate of
21 authority to file a new certificate of registration, without charge, and
22 in such form and at such time as the commissioner may prescribe and to
23 surrender such certificate of authority. The commissioner may require
24 such filing and such surrender not more often than once every three
25 years. Upon the filing of such certificate of registration and the
26 surrender of such certificate of authority, the commissioner shall
27 issue, within such time as the commissioner may prescribe, a new certif-
28 icate of authority, without charge, to each registrant and a duplicate
29 thereof for each additional place of business of such registrant.
30 § 4. This act shall take effect immediately; provided that the
31 provisions of section two of this act shall apply to all certificates of
32 registration required to be filed under section 1134 of the tax law
33 pursuant to the re-registration program instituted by the commissioner
34 of taxation and finance as authorized by section 1 of part LL-1 of chap-
35 ter 57 of the laws of 2008 and filed on or after November 1, 2008.
