•  Summary 
  •  
  •  Actions 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 

A09035 Summary:

BILL NOA09035
 
SAME ASNo same as
 
SPONSORReilly
 
COSPNSR
 
MLTSPNSR
 
Amd SS1101 & 1115, Tax L
 
Imposes sales tax at the time of the sale of a gift certificate and exempts purchases made with a gift certificate.
Go to top

A09035 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9035
 
                   IN ASSEMBLY
 
                                    January 17, 2012
                                       ___________
 
        Introduced by M. of A. REILLY -- read once and referred to the Committee
          on Ways and Means
 
        AN  ACT  to  amend the tax law, in relation to imposing sales tax at the
          time of the sale of a gift certificate and  exempting  purchases  made
          with a gift certificate
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. Paragraph 6 of subdivision (b) of section 1101 of  the  tax
     2  law, as amended by chapter 399 of the laws of 2009, is amended and a new
     3  paragraph 39 is added to read as follows:
     4    (6)  Tangible  personal  property.  Corporeal personal property of any
     5  nature. However, except for purposes of the tax imposed  by  subdivision
     6  (b)  of section eleven hundred five of this article, such term shall not
     7  include gas, electricity, refrigeration and steam. Such term shall  also
     8  include  pre-written  computer software, whether sold as part of a pack-
     9  age, as a separate component, or otherwise, and regardless of the medium
    10  by means of which such software is conveyed to a  purchaser.  Such  term
    11  shall  also include newspapers and periodicals where the vendor ships or
    12  delivers the entire edition or issue of  the  newspaper  or  periodical,

    13  with  or without the advertising included in the paper edition or issue,
    14  but not including anything, other than advertising, not  in  such  paper
    15  edition  or  issue, to the purchaser by means of telephony or telegraphy
    16  or other electronic media, but only where the amount of the  sale  price
    17  to  such  purchaser  of  such  newspaper or magazine or the subscription
    18  price, in the case of a  subscription  to  a  newspaper  or  periodical,
    19  including  any  charge  by  such  vendor for shipping or delivery to the
    20  purchaser, is separately stated to such purchaser.  Such term shall also
    21  include gift certificate, electronic gift card or  magnetic  gift  card.
    22  However,  such term shall not include a modular home that is permanently
    23  affixed to real property, provided that, if a  modular  home  is  to  be
    24  removed  from the realty, whether as a whole or disassembled, it and its

    25  component parts shall be tangible personal property whether it is to  be
    26  sold as a whole or as pieces.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09155-02-2

        A. 9035                             2
 
     1    (39)  Gift  certificate. (i) A "gift certificate" shall mean a writing
     2  identified as a gift certificate by a consumer for use  by  a  customer,
     3  whether  or  not  redeemable for cash, and usable for its face amount in
     4  lieu of cash for the exchange of goods or services supplied by the sell-
     5  er.  Gift certificates shall include electronic or magnetic cards with a

     6  banked dollar value, a  merchandise  credit,  a  certificate  where  the
     7  issuer  has  received  payment  for  the  full face value for the future
     8  purchase or delivery of goods or services, and  any  other  medium  that
     9  evidences  the  giving  of  consideration  in  exchange for the right to
    10  redeem it for goods or services of at least  an  equal  value.  Pre-paid
    11  calling  arrangements,  such as pre-paid phone cards, are not considered
    12  gift certificates.
    13    (ii) "Electronic gift card" or "magnetic gift card" shall mean a  card
    14  with  a  banked  dollar value that may be redeemed for goods or services
    15  whereby the dollar amount of the card is reduced accordingly.
    16    § 2. Section 1115 of the tax law is amended by adding a  new  subdivi-

    17  sion (hh) to read as follows:
    18    (hh)  (1) Purchases made with a gift certificate, electronic gift card
    19  or magnetic gift card.
    20    (2)(A) A "gift certificate" shall mean a writing identified as a  gift
    21  certificate by a consumer for use by a customer, whether or not redeema-
    22  ble  for  cash,  and  usable for its face amount in lieu of cash for the
    23  exchange of goods or service supplied by the seller.  Gift  certificates
    24  shall include electronic or magnetic cards with a banked dollar value, a
    25  merchandise credit,  a certificate where the issuer has received payment
    26  for  the full face value for the future purchase or delivery of goods or
    27  services, and any other medium that evidences the  giving  of  consider-

    28  ation in exchange for the right to redeem it for goods or services of at
    29  least an equal value. For purposes of this subdivision, pre-paid calling
    30  arrangements,  such  as  pre-paid  phone  cards, are not considered gift
    31  certificates.
    32    (B) "Electronic gift card" or "magnetic gift card" shall mean  a  card
    33  with  a  banked  dollar value that may be redeemed for goods or services
    34  whereby the dollar amount of the card is reduced accordingly.
    35    § 3. This act shall take effect on the first day of a quarterly  sales
    36  tax  period,  as set forth in subdivision (b) of section 1136 of the tax
    37  law, next succeeding the thirtieth day after it shall have become a law.
    38  Provided, however that the commissioner of taxation  and  finance  shall

    39  take  any  action necessary for the timely implementation of this act on
    40  or before the date on which it shall have become a law.
Go to top