Relates to excise tax on telecommunication services (Part A); relates to temporary municipal assistance sales and compensating use taxes for cities of one million or more on telecommunication services (Part B).
STATE OF NEW YORK
________________________________________________________________________
9204
2025-2026 Regular Sessions
IN ASSEMBLY
November 3, 2025
___________
Introduced by M. of A. BARCLAY, BLANKENBUSH, DiPIETRO, FRIEND, BRABENEC,
WALSH, MILLER, MANKTELOW, GALLAHAN, LEMONDES, SIMPSON, TAGUE --
Multi-Sponsored by -- M. of A. HAWLEY -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to excise tax on telecommuni-
cations services (Part A); and to amend the tax law, in relation to
temporary municipal assistance sales and compensating use taxes for
cities of one million or more on telecommunications services (Part B)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law components of legislation relating
2 to the "mobile tax freedom act". Each component is wholly contained
3 within a Part identified as Parts A through B. The effective date for
4 each particular provision contained within such Part is set forth in the
5 last section of such Part. Any provision in any section contained within
6 a Part, including the effective date of the Part, which makes a refer-
7 ence to a section "of this act", when used in connection with that
8 particular component, shall be deemed to mean and refer to the corre-
9 sponding section of the Part in which it is found. Section three of this
10 act sets forth the general effective date of this act.
11 PART A
12 Section 1. Subdivision (cc) of section 1115 of the tax law, as added
13 by section 11 of part S of chapter 85 of the laws of 2002, is amended to
14 read as follows:
15 (cc) Notwithstanding any other provision of law to the contrary,
16 receipts from the sale of mobile telecommunications service [by a home
17 service provider] shall be exempt from the taxes imposed by subparagraph
18 (B) of paragraph one and paragraph two of subdivision (b) of section
19 eleven hundred five of this article [if the mobile telecommunications
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02260-01-5
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1 customer's place of primary use is within a taxing jurisdiction outside
2 this state].
3 § 2. Paragraphs (a) and (h) of subdivision 1 and paragraph (a) of
4 subdivision 2 of section 186-e of the tax law, paragraph (a) of subdivi-
5 sion 1 as amended by section 2 and paragraph (h) of subdivision 1 as
6 added by section 3 of part S of chapter 85 of the laws of 2002, and
7 paragraph (a) of subdivision 2 as amended by section 2 of part P of
8 chapter 59 of the laws of 2015, are amended to read as follows:
9 (a) [(1)] "Gross receipt" means the amount received in or by reason of
10 any sale, conditional or otherwise, of telecommunication services or in
11 or by reason of the furnishing of telecommunication services. [Gross
12 receipt from the sale of mobile telecommunications service provided by a
13 home service provider shall include "charges for mobile telecommuni-
14 cations service" as described in paragraph one of subdivision (l) of
15 section eleven hundred eleven of this chapter, regardless of where the
16 mobile telecommunications service originates, terminates or passes
17 through.] Gross receipt is expressed in money, whether paid in cash,
18 credit or property of any kind or nature, and shall be determined with-
19 out any deduction therefrom on account of the cost of the service sold
20 or the cost of materials, labor or services used or other costs, inter-
21 est or discount paid, or any other expenses whatsoever except that there
22 shall, however, be allowed a deduction for bad debts with respect to
23 charges previously subjected to the tax hereunder when the debt has
24 become worthless in accordance with generally accepted accounting prin-
25 ciples consistently applied by the taxpayer. "Amount received" for the
26 purpose of the definition of gross receipt, as the term gross receipt is
27 used throughout this article, means the amount charged for the provision
28 of a telecommunication service.
29 [(2) (A) Any charge for a service or property billed by or for a
30 mobile telecommunications customer's home service provider shall be
31 deemed to be provided by such mobile telecommunications customer's home
32 service provider.
33 (B) Charges for mobile telecommunications service that are provided or
34 deemed to be provided by a mobile telecommunications customer's home
35 service provider shall be sourced to the taxing jurisdiction where the
36 mobile telecommunications customer's place of primary use is located,
37 regardless of where the mobile telecommunications service originates,
38 terminates or passes through.]
39 [(h) For the purpose of applying the provisions of this section to
40 mobile telecommunications service, the following terms when used in
41 relation to mobile telecommunications service shall be defined as such
42 terms are defined in section eleven hundred one of this chapter: "mobile
43 telecommunications service," "mobile telecommunications customer," "home
44 service provider," "licensed service area," "reseller," "serving carri-
45 er," "place of primary use" and "taxing jurisdiction".]
46 (a) [(1)] There is hereby imposed an excise tax on the sale of tele-
47 communication services[, except for the sale of mobile telecommunication
48 services that are subject to tax under subparagraph two of this para-
49 graph, by any person which is a provider of telecommunication services,]
50 to be paid by such person, at the rate of three and one-half percent
51 prior to October first, nineteen hundred ninety-eight, three and one-
52 quarter percent from October first, nineteen hundred ninety-eight
53 through December thirty-first, nineteen hundred ninety-nine, and two and
54 one-half percent on and after January first, two thousand of gross
55 receipt from: (i) any intrastate telecommunication services; (ii) any
56 interstate and international telecommunication services (other than
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1 interstate and international private telecommunication services) which
2 originate or terminate in this state and which telecommunication
3 services are charged to a service address in this state, regardless of
4 where the amounts charged for such services are billed or ultimately
5 paid; and (iii) interstate and international private telecommunication
6 services, the gross receipt to which the tax shall apply shall be deter-
7 mined as prescribed in subdivision three of this section.
8 [(2) There is hereby imposed an excise tax on the sale of mobile tele-
9 communication services, by any person which is a provider of telecommu-
10 nication services, to be paid by such person, at the rate of two and
11 nine-tenths percent on and after May first, two thousand fifteen of
12 gross receipts from any mobile telecommunications service provided by a
13 home service provider where the mobile telecommunications customer's
14 place of primary use is within this state.]
15 § 3. Paragraph (b) of subdivision 2 of section 186-e of the tax law is
16 amended by adding a new subparagraph 5 to read as follows:
17 (5) Mobile telecommunications exclusion. The sale of mobile telecommu-
18 nication service shall in no event constitute a telecommunications
19 service, and the receipts from the sale of such service are without the
20 scope of the tax imposed by this section.
21 § 4. Paragraph (b) of subdivision 1 of section 186-c of the tax law,
22 as amended by section 1 of part P of chapter 59 of the laws of 2015, is
23 amended to read as follows:
24 (b) [(1)] In addition to the surcharge imposed by paragraph (a) of
25 this subdivision, there is hereby imposed a surcharge on the gross
26 receipts from telecommunication services[, except for the gross receipts
27 from mobile telecommunication services that are subject to tax under
28 subparagraph two of this paragraph,] relating to the metropolitan commu-
29 ter transportation district at the rate of seventeen percent of the
30 state tax rate under section one hundred eighty-six-e of this article.
31 All the definitions and other provisions of section one hundred eighty-
32 six-e of this article shall apply to the tax imposed by this subpara-
33 graph with such modification and limitation as may be necessary (includ-
34 ing substituting the words "metropolitan commuter transportation
35 district" for "state" where appropriate) in order to adapt the language
36 of such section one hundred eighty-six-e of this article to the
37 surcharge imposed by this subparagraph within such metropolitan commuter
38 transportation district so as to include (i) any intra-district telecom-
39 munication services, (ii) any inter-district telecommunication services
40 which originate or terminate in such district and are charged to a
41 service address therein regardless of where the amounts charged for such
42 services are billed or ultimately paid, and (iii) as apportioned to such
43 district, private telecommunication services. Provided however, such tax
44 surcharge shall be calculated as if the tax imposed under section one
45 hundred eighty-six-e of this article were imposed at a rate of three and
46 one-half percent.
47 [(2) In addition to the surcharge imposed by paragraph (a) of this
48 subdivision, there is hereby imposed a surcharge on the gross receipts
49 from mobile telecommunication services relating to the metropolitan
50 commuter transportation district at the rate of seven-tenths and two-
51 hundredths and one-thousandth percent on and after May first, two thou-
52 sand fifteen. All the definitions and other provisions of section one
53 hundred eighty-six-e of this article shall apply to the tax imposed by
54 this subparagraph with such modification and limitation as may be neces-
55 sary (including substituting the words "metropolitan commuter transpor-
56 tation district" for "state" where appropriate) in order to adapt the
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1 language of such section one hundred eighty-six-e of this article to the
2 surcharge imposed by this subparagraph within such metropolitan commuter
3 transportation district so as to include any mobile telecommunications
4 service provided by a home service provider where the mobile telecommu-
5 nications customer's place of primary use is within such metropolitan
6 commuter transportation district.]
7 § 5. This act shall take effect on the first day of the sales tax
8 quarterly period, as described in subdivision (b) of section 1136 of the
9 tax law, beginning at least ninety days after the date this act shall
10 have become a law and shall apply in accordance with the applicable
11 transitional provisions of sections 1106 and 1217 of the tax law.
12 PART B
13 Section 1. Subdivision (b) of section 1107 of the tax law is amended
14 by adding a new clause 12 to read as follows:
15 (12) Except as otherwise provided by law, the exemption provided in
16 subdivision (cc) of section eleven hundred fifteen of this article
17 relating to mobile telecommunication services shall be applicable pursu-
18 ant to a local law, ordinance or resolution adopted by a city subject to
19 the provisions of this section. Such city is empowered to adopt or
20 repeal such a local law, ordinance or resolution. Such adoption or
21 repeal shall also be deemed to amend any local law, ordinance or resol-
22 ution enacted by such a city imposing taxes pursuant to the authority of
23 subdivision (a) of section twelve hundred ten of this chapter.
24 § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
25 amended by section 5 of part J of chapter 59 of the laws of 2021, is
26 amended to read as follows:
27 (1) Either, all of the taxes described in article twenty-eight of this
28 chapter, at the same uniform rate, as to which taxes all provisions of
29 the local laws, ordinances or resolutions imposing such taxes shall be
30 identical, except as to rate and except as otherwise provided, with the
31 corresponding provisions in such article twenty-eight, including the
32 definition and exemption provisions of such article, so far as the
33 provisions of such article twenty-eight can be made applicable to the
34 taxes imposed by such city or county and with such limitations and
35 special provisions as are set forth in this article. The taxes author-
36 ized under this subdivision may not be imposed by a city or county
37 unless the local law, ordinance or resolution imposes such taxes so as
38 to include all portions and all types of receipts, charges or rents,
39 subject to state tax under sections eleven hundred five and eleven
40 hundred ten of this chapter, except as otherwise provided. Notwith-
41 standing the foregoing, a tax imposed by a city or county authorized
42 under this subdivision shall not include the tax imposed on charges for
43 admission to race tracks and simulcast facilities under subdivision (f)
44 of section eleven hundred five of this chapter. (i) Any local law, ordi-
45 nance or resolution enacted by any city of less than one million or by
46 any county or school district, imposing the taxes authorized by this
47 subdivision, shall, notwithstanding any provision of law to the contra-
48 ry, exclude from the operation of such local taxes all sales of tangible
49 personal property for use or consumption directly and predominantly in
50 the production of tangible personal property, gas, electricity, refrig-
51 eration or steam, for sale, by manufacturing, processing, generating,
52 assembly, refining, mining or extracting; and all sales of tangible
53 personal property for use or consumption predominantly either in the
54 production of tangible personal property, for sale, by farming or in a
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1 commercial horse boarding operation, or in both; and all sales of fuel
2 sold for use in commercial aircraft and general aviation aircraft; and,
3 unless such city, county or school district elects otherwise, shall omit
4 the provision for credit or refund contained in clause six of subdivi-
5 sion (a) or subdivision (d) of section eleven hundred nineteen of this
6 chapter. (ii) Any local law, ordinance or resolution enacted by any
7 city, county or school district, imposing the taxes authorized by this
8 subdivision, shall omit the residential solar energy systems equipment
9 and electricity exemption provided for in subdivision (ee), the commer-
10 cial solar energy systems equipment and electricity exemption provided
11 for in subdivision (ii), the commercial fuel cell electricity generating
12 systems equipment and electricity generated by such equipment exemption
13 provided for in subdivision (kk) and the clothing and footwear exemption
14 provided for in paragraph thirty of subdivision (a) of section eleven
15 hundred fifteen of this chapter, unless such city, county or school
16 district elects otherwise as to such residential solar energy systems
17 equipment and electricity exemption, such commercial solar energy
18 systems equipment and electricity exemption, commercial fuel cell elec-
19 tricity generating systems equipment and electricity generated by such
20 equipment exemption or such clothing and footwear exemption. Any local
21 law, ordinance or resolution enacted by any city, county or school
22 district, imposing the taxes authorized by this subdivision, shall omit
23 the mobile telecommunication services exemption provided for in subdivi-
24 sion (cc) of section eleven hundred fifteen of this chapter, unless such
25 city, county or school district elects otherwise; provided that if such
26 a city having a population of one million or more enacts the resolution
27 described in subdivision (p) of this section or repeals such resolution,
28 such resolution or repeal shall also be deemed to amend any local law,
29 ordinance or resolution enacted by such a city imposing such taxes
30 pursuant to the authority of this subdivision, whether or not such taxes
31 are suspended at the time such city enacts its resolution pursuant to
32 subdivision (p) of this section or at the time of such repeal; provided,
33 further, that any such local law, ordinance or resolution and section
34 eleven hundred seven of this chapter, as deemed to be amended in the
35 event a city of one million or more enacts a resolution pursuant to the
36 authority of subdivision (p) of this section, shall be further amended,
37 as provided in section twelve hundred eighteen of this subpart, so that
38 the wireless telecommunications services exemption in any such local
39 law, ordinance or resolution or in such section eleven hundred seven of
40 this chapter is the same as the mobile telecommunication services
41 exemption in subdivision (cc) of section eleven hundred fifteen of this
42 chapter. (iii) Any local law, ordinance or resolution enacted by any
43 city, county or school district, imposing the taxes authorized by this
44 subdivision, shall omit the residential solar energy systems equipment
45 and electricity exemption provided for in subdivision (ee), the commer-
46 cial solar energy systems equipment and electricity exemption provided
47 for in subdivision (ii) and the clothing and footwear exemption provided
48 for in paragraph thirty of subdivision (a) of section eleven hundred
49 fifteen of this chapter, unless such city, county or school district
50 elects otherwise as to either such residential solar energy systems
51 equipment and electricity exemption, such commercial solar energy
52 systems equipment and electricity exemption or such clothing and foot-
53 wear exemption.
54 § 3. Subdivision (d) of section 1210 of the tax law, as amended by
55 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
56 read as follows:
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1 (d) A local law, ordinance or resolution imposing any tax pursuant to
2 this section, increasing or decreasing the rate of such tax, repealing
3 or suspending such tax, exempting from such tax the energy sources and
4 services described in paragraph three of subdivision (a) or of subdivi-
5 sion (b) of this section or changing the rate of tax imposed on such
6 energy sources and services or providing for the credit or refund
7 described in clause six of subdivision (a) of section eleven hundred
8 nineteen of this chapter, or electing or repealing the exemption for
9 residential solar equipment and electricity in subdivision (ee) of
10 section eleven hundred fifteen of this [article] chapter, or the
11 exemption for commercial solar equipment and electricity in subdivision
12 (ii) of section eleven hundred fifteen of this [article] chapter, or
13 electing or repealing the exemption for commercial fuel cell electricity
14 generating systems equipment and electricity generated by such equipment
15 in subdivision (kk) of section eleven hundred fifteen of this [article]
16 chapter must go into effect only on one of the following dates: March
17 first, June first, September first or December first; provided, that a
18 local law, ordinance or resolution providing for the exemption described
19 in paragraph thirty of subdivision (a) of section eleven hundred fifteen
20 of this chapter or repealing any such exemption or a local law, ordi-
21 nance or resolution providing for a refund or credit described in subdi-
22 vision (d) of section eleven hundred nineteen of this chapter or repeal-
23 ing such provision so provided must go into effect only on March first;
24 provided, further, that a local law, ordinance or resolution providing
25 for the exemption described in subdivision (cc) of section eleven
26 hundred fifteen of this chapter or repealing any such exemption so
27 provided and a resolution enacted pursuant to the authority of subdivi-
28 sion (p) of this section providing such exemption or repealing such
29 exemption so provided may go into effect immediately. No such local
30 law, ordinance or resolution shall be effective unless a certified copy
31 of such law, ordinance or resolution is mailed by registered or certi-
32 fied mail to the commissioner at the commissioner's office in Albany at
33 least ninety days prior to the date it is to become effective. However,
34 the commissioner may waive and reduce such ninety-day minimum notice
35 requirement to a mailing of such certified copy by registered or certi-
36 fied mail within a period of not less than thirty days prior to such
37 effective date if the commissioner deems such action to be consistent
38 with the commissioner's duties under section twelve hundred fifty of
39 this article and the commissioner acts by resolution. Where the
40 restriction provided for in section twelve hundred twenty-three of this
41 article as to the effective date of a tax and the notice requirement
42 provided for therein are applicable and have not been waived, the
43 restriction and notice requirement in section twelve hundred twenty-
44 three of this article shall also apply.
45 § 4. Section 1210 of the tax law is amended by adding a new subdivi-
46 sion (p) to read as follows:
47 (p) Notwithstanding any other provision of state or local law, ordi-
48 nance or resolution to the contrary: (1) Any city having a population of
49 one million or more in which the taxes imposed by section eleven hundred
50 seven of this chapter are in effect, acting through its local legisla-
51 tive body, is hereby authorized and empowered to elect to provide the
52 exemption from such taxes for the same mobile communications services
53 exempt from state sales and compensating use taxes described in subdivi-
54 sion (cc) of section eleven hundred fifteen of this chapter by enacting
55 a resolution in the form set forth in paragraph two of this subdivision;
56 whereupon, upon compliance with the provisions of subdivisions (d) and
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1 (e) of this section, such enactment of such resolution shall be deemed
2 to be an amendment to such section eleven hundred seven and such section
3 eleven hundred seven shall be deemed to incorporate such exemption as if
4 it had been duly enacted by the state legislature and approved by the
5 governor.
6 (2) Form of resolution: Be it enacted by the (insert proper title of
7 local legislative body) as follows:
8 Section one. Receipts from sales of and consideration given or
9 contracted to be given for purchases of mobile telecommunications
10 services exempt from state sales and compensating use taxes pursuant to
11 subdivision (cc) of section eleven hundred fifteen of the tax law shall
12 also be exempt from sales and compensating use taxes imposed in this
13 jurisdiction.
14 Section two. This resolution shall take effect, (insert the date) and
15 shall apply to sales made and uses occurring on and after that date
16 although made or occurring under a prior contract.
17 § 5. The commissioner of taxation and finance is hereby authorized to
18 implement the provisions of this act with respect to the elimination of
19 the imposition of sales tax, additional taxes, and supplemental taxes on
20 wireless telecommunications services and all other taxes so addressed by
21 this act.
22 § 6. This act shall take effect on the first day of the sales tax
23 quarterly period, as described in subdivision (b) of section 1136 of the
24 tax law, beginning at least ninety days after the date this act shall
25 have become a law and shall apply in accordance with the applicable
26 transitional provisions of sections 1106 and 1217 of the tax law.
27 § 2. Severability. If any clause, sentence, paragraph, section or part
28 of this act shall be adjudged by any court of competent jurisdiction to
29 be invalid and after exhaustion of all further judicial review, the
30 judgment shall not affect, impair, or invalidate the remainder thereof,
31 but shall be confined in its operation to the clause, sentence, para-
32 graph, section or part of this act directly involved in the controversy
33 in which the judgment shall have been rendered.
34 § 3. This act shall take effect immediately provided, however, that
35 the applicable effective date of Parts A through B of this act shall be
36 as specifically set forth in the last section of such Parts.
