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A08888 Summary:

BILL NOA08888
 
SAME ASSAME AS S08120
 
SPONSORCunningham
 
COSPNSR
 
MLTSPNSR
 
Amd §1299-b, Tax L
 
Requires medallion agents to manage payments of the congestion surcharge.
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A08888 Actions:

BILL NOA08888
 
01/26/2024referred to ways and means
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A08888 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8888
 
SPONSOR: Cunningham
  TITLE OF BILL: An act to amend the tax law, in relation to requiring medallion agents to manage payments of the congestion surcharge   PURPOSE OF BILL: To ensure that agents licensed by the Taxi and Limousine Commission are solely liable for making payments of the MTA improvement zone surcharge on behalf of medallion owners.   SUMMARY OF PROVISIONS: Section one amends the tax law to clarify that agents licensed by the Taxi and Limousine Commission are authorized on behalf of medallion owners to manage the medallions and/or make payments of the MTA improve-merit zone surcharge, including in batch format. These agents would be held solely liable for making these payments absent a good faith dispute of the amount owed. Section two relates to the effective date.   JUSTIFICATION: Under congestion pricing, liability for paying the MTA improvement zone. surcharge has fallen solely on medallion owners without authorizing agents licensed by the Taxi and Limousine Commission to be liable. Plac- ing the burden solely on the owners could create some unintended conse- quences. Since the agents are more involved in the management of these medallions, whereas some owners may take a more hands-off approach, it would be more appropriate to assign sole liability to the agents when they are there. Leaving liability to the owners would be quite onerous to the agents who would still be charged with filing the surcharge payments, forcing them to reach out to owners who are often out of reach. Assigning sole liability to the agents would lower the utility costs of managing these taxes while also ensuring payment compliance.   PRIOR LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To Be Determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A08888 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8888
 
                   IN ASSEMBLY
 
                                    January 26, 2024
                                       ___________
 
        Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to requiring  medallion  agents
          to manage payments of the congestion surcharge
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision (a) of  section  1299-b  of  the  tax  law,  as
     2  amended  by  section  3  of part R of chapter 59 of the laws of 2021, is
     3  amended to read as follows:
     4    (a) Notwithstanding any provision of law to the contrary,  any  person
     5  that  dispatches  a motor vehicle by any means that provides transporta-
     6  tion that is subject to a surcharge imposed by this  article,  including
     7  transportation  network  companies as defined in article forty-four-B of
     8  the vehicle and traffic law, shall be liable for the  surcharge  imposed
     9  by  this article, except where agents licensed by the taxi and limousine
    10  commission are authorized on behalf of medallion owners  to  manage  the
    11  medallions  and/or make payments of the surcharge as laid out in article
    12  twenty-nine-A of this chapter, such agents are solely liable for  making
    13  these  payments  absent  a  good faith dispute of the amount owed. Where
    14  agents licensed by the taxi and limousine commission are  authorized  on
    15  behalf of medallion owners to manage the medallions and/or make payments
    16  of  the metropolitan transportation authority improvement zone surcharge
    17  such agents are entitled  to  make  batch  payments  of  all  medallions
    18  managed  with  an  accounting  of each medallion trip represented in the
    19  batch payment, except that in the case of taxicab trips and HAIL vehicle
    20  trips that are also subject to tax pursuant to article twenty-nine-A  of
    21  this chapter:
    22    (1) [a] A TSP that collected the trip record and trip fare shall with-
    23  hold  from daily collections the surcharges due on such trips, and shall
    24  withhold from such collections the surcharges due on cash trips. If  the
    25  TSP's  daily  collections, after retaining any fees to which it is enti-
    26  tled pursuant to a contract with such  taxicab  owner  or  HAIL  vehicle
    27  owner,  are insufficient to cover the surcharges due on such cash trips,
    28  the TSP shall withhold an amount from subsequent daily  collections,  to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14004-01-4

        A. 8888                             2
 
     1  the  extent  funds are available, until all surcharges due for a monthly
     2  period have been withheld. If a  TSP  is  unable  to  withhold  all  the
     3  surcharges  due  in  a monthly period, it shall withhold such unwithheld
     4  surcharges  from  daily  collections  in  the next monthly period. A TSP
     5  shall be jointly liable for the surcharge imposed by  this  article  for
     6  all  trips  for  which  the  TSP collected the trip record, but shall be
     7  relieved of liability for any surcharges attributable to cash trips  for
     8  which it was unable to withhold the surcharges because there were insuf-
     9  ficient daily collections during twelve successive monthly periods.
    10    (2)  The TSP shall be responsible for filing monthly returns reporting
    11  the surcharges due on all trips for which  it  collected  trip  records,
    12  shall  remit  the surcharges withheld on all such trips and shall report
    13  any unwithheld surcharges due because of insufficient daily  collections
    14  to  cover  the tax due on cash trips.  For purposes of this section, the
    15  terms "taxicab trips," "HAIL  vehicle  trips,"  "taxicab  owner,"  "HAIL
    16  base,""TSP"  and  "cash  trip" shall have the same meaning as they do in
    17  section twelve hundred eighty of this chapter.
    18    § 2. This act shall take effect immediately.
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