Establishes business franchise and personal income tax credits for certain taxes and surcharges on wireless communications paid by certain small businesses which do not have a landline telephone.
STATE OF NEW YORK
________________________________________________________________________
4904
2015-2016 Regular Sessions
IN ASSEMBLY
February 9, 2015
___________
Introduced by M. of A. GJONAJ, MOSLEY, BENEDETTO, SIMANOWITZ, SCARBOR-
OUGH, COLTON -- Multi-Sponsored by -- M. of A. ABBATE, COOK, LUPINAC-
CI, MAGEE, McLAUGHLIN, RAIA, RIVERA, SKARTADOS -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing business fran-
chise tax and personal income tax credit for the amount of certain
taxes and surcharges paid by certain taxpayers that are small busi-
nesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 28 to read as follows:
3 28. Wireless communications sales tax and surcharge credit. (a) Allow-
4 ance of credit. A taxpayer that is a small business with a permanent
5 business address within the state, for which its mobile telecommuni-
6 cations service, as defined in paragraph twenty-four of subdivision (b)
7 of section eleven hundred one of this chapter, is the primary means of
8 contacting such small business, and such small business does not have
9 landline telephone service subject to the provisions of article five of
10 the public service law, shall be allowed a credit against the tax
11 imposed by this article equal to the sum of (i) the excise taxes on
12 telecommunications services paid by the taxpayer for mobile telecommuni-
13 cations service during the taxable year, pursuant to section one hundred
14 eighty-six-e of this chapter, (ii) the public safety communications
15 surcharges paid by the taxpayer as a wireless communications customer
16 during the taxable year, pursuant to section one hundred eighty-six-f of
17 this chapter, and (iii) the sales and compensating use taxes paid by the
18 taxpayer as a wireless communications customer during the taxable year,
19 pursuant to sections eleven hundred five, eleven hundred nine and/or
20 eleven hundred ten of this chapter, to the extent such taxes and
21 surcharges are related to the taxpayer's small business.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08621-01-5
A. 4904 2
1 (b) Definition. The term "small business" shall, for the purposes of
2 this subdivision, mean a business which is resident in this state, inde-
3 pendently owned and operated, not dominant in its field and employs
4 twenty-five or less persons.
5 (c) Application of credit. The credit allowed under this subdivision
6 for any taxable year shall not reduce the tax due for such year to less
7 than the amount prescribed in paragraph (d) of subdivision one of
8 section two hundred ten of this article. However, if the amount of cred-
9 it allowed under this subdivision for any taxable year reduces the tax
10 to such amount or if the taxpayer otherwise pays tax based on the fixed
11 dollar minimum amount, any amount of credit thus not deductible in such
12 taxable year will be treated as an overpayment of tax to be credited or
13 refunded in accordance with the provisions of section one thousand
14 eighty-six of this chapter. Provided, however, the provisions of
15 subsection (c) of section one thousand eighty-eight of this chapter
16 notwithstanding, no interest will be paid thereon.
17 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
18 of the tax law is amended by adding a new clause (xli) to read as
19 follows:
20 (xli) Wireless communicationsAmount of credit
21 sales tax and surcharge creditunder subdivision
22 under subsection (ccc)twenty-eight of
23 section two hundred ten-B
24 § 3. Section 606 of the tax law is amended by adding a new subsection
25 (ccc) to read as follows:
26 (ccc) Wireless communications sales tax and surcharge credit. (1)
27 Allowance of credit. A taxpayer that owns a small business with a perma-
28 nent business address within the state, for which its mobile telecommu-
29 nications service as defined in paragraph twenty-four of subdivision (b)
30 of section eleven hundred one of this chapter, is the primary means of
31 contacting such small business, and such small business does not have
32 landline telephone service subject to the provisions of article five of
33 the public service law, shall be allowed a credit against the tax
34 imposed by this article equal to the sum of (A) the excise taxes on
35 telecommunications services paid by the taxpayer for mobile telecommuni-
36 cations service during the taxable year, pursuant to section one hundred
37 eighty-six-e of this chapter, (B) the public safety communications
38 surcharges paid by the taxpayer as a wireless communications customer
39 during the taxable year, pursuant to section one hundred eighty-six-f of
40 this chapter, and (C) the sales and compensating use taxes paid by the
41 taxpayer as a wireless communications customer during the taxable year,
42 pursuant to sections eleven hundred five, eleven hundred nine and/or
43 eleven hundred ten of this chapter, to the extent such taxes and
44 surcharges are related to the taxpayer's small business.
45 (2) Definition. The term "small business" means a business which is
46 resident in the state, independently owned and operated, not dominant in
47 its field and employs twenty-five or less persons.
48 (3) Application of credit. If the amount of the credit under this
49 subsection for any taxable year shall exceed the taxpayer's tax for such
50 year, the excess shall be treated as an overpayment of tax to be credit-
51 ed or refunded in accordance with the provisions of section six hundred
52 eighty-six of this article, provided, however, that no interest shall be
53 paid thereon.
54 § 4. This act shall take effect immediately.
