STATE OF NEW YORK
________________________________________________________________________
2754
2023-2024 Regular Sessions
IN ASSEMBLY
January 27, 2023
___________
Introduced by M. of A. GANDOLFO, DURSO -- Multi-Sponsored by -- M. of A.
BARCLAY, BRABENEC, DiPIETRO, FRIEND, HAWLEY, McDONOUGH, PALMESANO,
STECK, THIELE -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to exemptions from sales and
use taxes for gift certificates, electronic gift cards and magnetic
gift cards
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 1115 of the tax law is amended
2 by adding a new paragraph 47 to read as follows:
3 (47)(A) Gift certificates, electronic gift cards and magnetic gift
4 cards.
5 (B) For the purpose of this paragraph: (i) the term "gift certificate"
6 means a writing identified as a gift certificate by an issuer for use by
7 a customer, whether or not redeemable for cash, and usable for its face
8 amount in lieu of cash for the exchange of goods or services supplied by
9 the seller. Gift certificates shall include electronic or magnetic cards
10 with a banked dollar value, a merchandise credit, a certificate where
11 the issuer has received payment for the full face value for the future
12 purchase or delivery of goods or services, and any other medium that
13 evidences the giving of consideration in exchange for the right to
14 redeem it for goods or services of at least an equal value. Pre-paid
15 calling arrangements, such as pre-paid phone cards, are not considered
16 gift certificates; (ii) the term "electronic gift card" or "magnetic
17 gift card" means a card with a banked dollar value that may be redeemed
18 for goods or services whereby the dollar amount of the card is reduced
19 accordingly.
20 § 2. This act shall take effect on the first day of a quarterly sales
21 tax period, as set forth in subdivision (b) of section 1136 of the tax
22 law, next succeeding the thirtieth day after it shall have become a law.
23 Provided, however that the commissioner of taxation and finance shall
24 take any action necessary for the timely implementation of this act on
25 or before the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00653-01-3
