A06078 Summary:

BILL NOA06078B
 
SAME ASSAME AS S07991
 
SPONSORCarroll
 
COSPNSRArroyo, Miller MG, Fall, Seawright
 
MLTSPNSRCook, Englebright, Simon
 
Add Art 29-D §§1299-M - 1299-V, Tax L
 
Adds a three dollar surcharge on online delivery transactions terminating within the city of New York to be used to fund the operating costs of buses and subways in the city of New York.
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A06078 Actions:

BILL NOA06078B
 
02/27/2019referred to ways and means
03/26/2019amend and recommit to ways and means
03/26/2019print number 6078a
01/08/2020referred to ways and means
02/04/2020amend (t) and recommit to ways and means
02/04/2020print number 6078b
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A06078 Committee Votes:

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A06078 Floor Votes:

There are no votes for this bill in this legislative session.
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A06078 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6078--B
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 27, 2019
                                       ___________
 
        Introduced  by  M.  of  A. CARROLL, ARROYO, M. G. MILLER, FALL -- Multi-
          Sponsored by -- M.  of A. COOK, SIMON -- read once and referred to the
          Committee on Ways and Means --  committee  discharged,  bill  amended,
          ordered  reprinted  as  amended  and  recommitted to said committee --
          recommitted to the Committee on Ways  and  Means  in  accordance  with
          Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the tax law, in relation to adding a surcharge on online
          delivery transactions within the city of New York
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The tax law is amended by adding a new article 29-D to read
     2  as follows:
 
     3                                ARTICLE 29-D
     4                             DELIVERY SURCHARGE
     5  Section 1299-M. Definitions.
     6          1299-N. Imposition of tax.
     7          1299-O. Liability for surcharge.
     8          1299-P. Registration.
     9          1299-Q. Returns and payment of surcharge.
    10          1299-R. Records to be kept.
    11          1299-S. Secrecy of returns and reports.
    12          1299-T. Practice and procedure.
    13          1299-U. Deposit and disposition of revenue.
    14          1299-V. Cooperation by regulatory agencies.
    15    § 1299-M. Definitions. (a) "Person" means an individual,  partnership,
    16  limited  liability  company,  society, association, joint stock company,
    17  corporation, estate, receiver, trustee, assignee, referee or  any  other
    18  person  acting  in  a  fiduciary  or  representative  capacity,  whether
    19  appointed by a court or otherwise, any combination  of  individuals  and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09236-04-0

        A. 6078--B                          2
 
     1  any other form of unincorporated enterprise owned or conducted by two or
     2  more persons.
     3    (b)  "Delivery  transaction"  means  a transaction that results in the
     4  delivery of any item purchased online to the purchaser.
     5    (c) "Purchaser" means the person receiving the item  in  the  delivery
     6  transaction.
     7    §  1299-N.  Imposition of tax. In addition to any other tax or assess-
     8  ment imposed by this chapter or other  law,  there  is  hereby  imposed,
     9  beginning  on January first, two thousand twenty-two, a surcharge on all
    10  delivery transactions of three dollars  for  each  delivery  transaction
    11  where  the  delivery  is  made  within  the city of New York, except for
    12  deliveries of essential medical supplies or deliveries of food.
    13    § 1299-O. Liability for surcharge. (a) Notwithstanding  any  provision
    14  of  law  to the contrary, any person that sells by any means any item to
    15  be delivered within the city of New  York  is  subject  to  a  surcharge
    16  imposed  by  this  article  shall be liable for the surcharge imposed by
    17  this article.
    18    (b) Notwithstanding any law to the contrary, the surcharge imposed  by
    19  this article shall be passed along to the purchaser and separately stat-
    20  ed  on any receipt that is provided to such passenger. The passing along
    21  of such surcharge shall not be construed by any court or  administrative
    22  body  as  the  imposition  of the surcharge on the person or entity that
    23  pays for the delivery transaction.
    24    (c) Notwithstanding any law to the contrary, the surcharge imposed  by
    25  this  article  shall  not  apply to any purchaser using the supplemental
    26  nutrition assistance program, special supplemental nutrition program for
    27  women, infants and children,  or  any  successor  programs  as  full  or
    28  partial payment for the items purchased where all items purchased in the
    29  delivery transaction are purchasable using such programs.
    30    §  1299-P.  Registration.  (a)  Every  person liable for the surcharge
    31  imposed by this article shall file  with  the  commissioner  a  properly
    32  completed  application  for  a  certificate  of  registration, in a form
    33  prescribed by the commissioner. Such application shall be accompanied by
    34  a fee of one dollar and fifty cents, and shall set forth  the  name  and
    35  address  of  the  registrant, and any other information that the commis-
    36  sioner may require. Notwithstanding the foregoing, any person liable for
    37  a surcharge imposed by this article that will incur  such  liability  no
    38  more  than one time in any single calendar month shall not be subject to
    39  the provisions of this paragraph.
    40    (b) Except as otherwise provided in  this  section,  the  commissioner
    41  shall  issue  a  certificate of registration to each person that applies
    42  for one for a specified term of not less than three years.  Any  certif-
    43  icate  of registration referred to in this paragraph shall be subject to
    44  renewal in accordance with rules promulgated by  the  commissioner,  and
    45  upon the payment of a fee of one dollar fifty cents. Whether or not such
    46  certificate  of registration is issued for a specified term, it shall be
    47  subject to suspension or revocation as provided  for  in  this  section.
    48  Each certificate shall state the registrant and the registrant's taxpay-
    49  er  ID  number it is applicable to.  Certificates of registration issued
    50  pursuant to this article shall be non-assignable  and  non-transferable,
    51  and shall be surrendered to the commissioner immediately upon the regis-
    52  trant's  ceasing  to do business at the address provided in its applica-
    53  tion, unless the registrant amends its certificate  of  registration  in
    54  accordance  with rules promulgated by the commissioner.  All registrants
    55  must notify the commissioner of changes to any of the information stated
    56  on their certificate of registration, including vehicle changes, if any,

        A. 6078--B                          3
 
     1  on a calendar quarterly basis, and shall  amend  their  certificates  of
     2  registration accordingly.
     3    (c)  (1)  The commissioner may refuse to issue a certificate of regis-
     4  tration to a person, or may suspend or revoke a certificate of registra-
     5  tion that was issued to a person, pursuant to this section upon  finding
     6  that:  (i)  such person failed to pay any monies that are finally deter-
     7  mined to be due for any tax or imposition that is  administered  by  the
     8  commissioner;  (ii) such person failed to file any report or return that
     9  is due from it under this chapter; (iii) such person willfully  filed  a
    10  false report, return or other document due under this chapter; (iv) such
    11  person willfully violated any provisions of this article, or any rule or
    12  regulation  of the commissioner promulgated under this article; or (v) a
    13  certificate of registration issued pursuant  to  this  section  to  such
    14  person,  or  to  any business or entity under control of such person, or
    15  that is subject  to  substantially  the  same  ownership,  direction  or
    16  control  of  such  person, that has been revoked or suspended within one
    17  year from the date on which a certificate of registration is filed.
    18    (2) A notice of proposed revocation, suspension or  refusal  to  issue
    19  shall be given to the person that applies for a certificate of registra-
    20  tion  pursuant  to this section in the manner prescribed for a notice of
    21  deficiency in subsection (a) of section one thousand eighty-one of  this
    22  chapter,  and except as otherwise provided herein, all the provisions of
    23  article twenty-seven of this chapter applicable to a notice of deficien-
    24  cy shall apply to a notice issued pursuant to this paragraph, insofar as
    25  such provisions can be made applicable to such  notice,  and  with  such
    26  modifications as may be necessary in order to adapt the language of such
    27  provisions  to  the  notice authorized by this paragraph. All notices of
    28  proposed revocation, suspension or refusal  to  issue  shall  contain  a
    29  statement  advising the person to whom it is issued that the suspension,
    30  revocation or refusal to issue may be challenged through a hearing proc-
    31  ess and that the petition for such challenge  must  be  filed  with  the
    32  division  of  tax  appeals  within  ninety days after the giving of such
    33  notice.
    34    (3) In the case of a proposed revocation or    suspension,  notice  of
    35  such  must  be given to a person within three years from the date of the
    36  act or omission described in paragraph one of this  subdivision,  except
    37  that  in the case of acts involving falsity or fraud, such notice may be
    38  issued at any time.
    39    (4) In any of the  foregoing  instances  where  the  commissioner  may
    40  suspend  or revoke or refuse to issue a certificate of registration, the
    41  commissioner may condition the retention or issuance of a certificate of
    42  registration upon the filing of a bond or the  deposit  of  tax  in  the
    43  manner  provided in paragraph two or three of subdivision (e) of section
    44  eleven hundred thirty-seven of this chapter.
    45    (d) If the commissioner considers it necessary for the proper adminis-
    46  tration of the surcharge imposed by this article, he or she may  require
    47  every  person who holds a certificate of registration issued pursuant to
    48  this section to apply for a new certificate of registration in such form
    49  and at such time as the commissioner may  prescribe,  and  to  surrender
    50  each previously issued certificate of registration. The commissioner may
    51  require  such  filing  and such surrender not more often than once every
    52  three years. Upon the filing of an application for a new certificate  of
    53  registration  and  the  surrender of all previous such certificates, the
    54  commissioner shall issue, within  such  time  as  the  commissioner  may
    55  prescribe,  a  new  certificate of registration, without charge, to each
    56  registrant.

        A. 6078--B                          4
 
     1    § 1299-Q. Returns and payment of surcharge. (a)  Every  person  liable
     2  for  the  surcharge imposed by this article shall file a return with the
     3  commissioner on a monthly basis. Each return shall show  the  number  of
     4  delivery transactions completed subject to the surcharge imposed by this
     5  article  in  the  month  for  which the return is filed, along with such
     6  other information as the commissioner may require. The returns  required
     7  by  this  section shall be filed within twenty days after the end of the
     8  month covered thereby. If the commissioner deems it necessary to  ensure
     9  the  payment  of  the  surcharge  imposed by this article, he or she may
    10  require returns to be made for shorter periods than  prescribed  by  the
    11  foregoing  provisions  of  this  section,  and upon such dates as may be
    12  specified. The form of returns shall be prescribed by  the  commissioner
    13  and  shall  contain such information as the commissioner may deem neces-
    14  sary for the proper administration of this article. The commissioner may
    15  require that returns be filed electronically.
    16    (b) Every person liable for the  surcharge  imposed  by  this  article
    17  shall,  at  the  time of filing such return, pay to the commissioner the
    18  total amount of all surcharges due under this article. Such amount shall
    19  be due and payable on the date specified for the filing  of  the  return
    20  for such period, without regard to whether a return is filed, or whether
    21  the  return that is filed correctly shows the correct number of delivery
    22  transactions are subject to the  surcharge,  or  the  correct  surcharge
    23  amount  due  thereon. The commissioner may require that the surcharge be
    24  paid electronically.
    25    (c) In addition to any other penalty or interest  provided  for  under
    26  this  article  or other law, and unless it is shown that such failure is
    27  due to reasonable cause and not  due  to  willful  neglect,  any  person
    28  liable  for the surcharge imposed by this article that fails to pay such
    29  surcharge when due shall be liable for a penalty in an amount  equal  to
    30  two hundred percent of the total surcharge amount that is due.
    31    §  1299-R.  Records  to be kept. Every person liable for the surcharge
    32  imposed by this article shall keep, and shall make available for  review
    33  upon demand by the commissioner:
    34    (a)  records of delivery transaction completed by such person, includ-
    35  ing all amounts paid, charged or  due  thereon,  in  such  form  as  the
    36  commissioner may require;
    37    (b) true and complete copies of any records required to be kept by any
    38  applicable regulatory department or agency; and
    39    (c) such other records and information as the commissioner may require
    40  to perform his or her duties under this article.
    41    §  1299-S.  Secrecy  of  returns and reports. (a) Except in accordance
    42  with proper judicial order or as otherwise provided by law, it shall  be
    43  unlawful  for  the  commissioner, any officer or employee of the depart-
    44  ment, any person engaged or retained by th department on an  independent
    45  contract basis, or any person who in any manner may acquire knowledge of
    46  the  contents of a return or report filed with the commissioner pursuant
    47  to this article, to divulge or make known in any manner any  particulars
    48  set  forth  or  disclosed  in  any  such  return or report. The officers
    49  charged with the custody of  such  returns  and  reports  shall  not  be
    50  required  to  produce  any  of them or evidence of anything contained in
    51  them in any action or proceeding in any court, except on behalf  of  the
    52  commissioner  in  an  action  or proceeding under the provisions of this
    53  chapter, or in any other action or proceeding involving  the  collection
    54  of  a tax due under this chapter to which the state, the commissioner or
    55  an agency that is authorized to permit or regulate the provision of  any
    56  relevant  transportation  is  a party or a claimant, or on behalf of any

        A. 6078--B                          5
 
     1  party to any action, proceeding or hearing under the provisions of  this
     2  article,  when the returns or the reports or the facts shown thereby are
     3  directly involved in such action, proceeding or hearing, in any of which
     4  events  the  court,  or  in  the  case of a hearing, the division of tax
     5  appeals, may require the production of, and may  admit  in  evidence  so
     6  much  of  said  returns  or reports or of the facts shown thereby as are
     7  pertinent to the action or proceeding and no more.  Nothing herein shall
     8  be construed, however, to prohibit  the  commissioner,  in  his  or  her
     9  discretion, from allowing the inspection or delivery of a certified copy
    10  of  any return or report filed under this article, or from providing any
    11  information contained in any such return or report,  by  or  to  a  duly
    12  authorized  officer  or employee of the comptroller; nor to prohibit the
    13  inspection or delivery of a certified copy of any return or report filed
    14  under this article, or the provision of any information contained there-
    15  in, by or to the attorney general or other legal representatives of  the
    16  state  when  an action shall have been recommended or commenced pursuant
    17  to this chapter in which such returns or  reports  or  the  facts  shown
    18  thereby  are  directly  involved;  nor to prohibit the commissioner from
    19  providing or certifying to the division of budget or the comptroller the
    20  total number of returns or reports  filed  under  this  article  in  any
    21  reporting  period  and  the total collections received therefrom; nor to
    22  prohibit the delivery to a person liable for the  surcharge  imposed  by
    23  this  article,  or a duly authorized representative of such, a certified
    24  copy of any return or report filed by such person pursuant to this arti-
    25  cle, nor to prohibit the publication of statistics so classified  as  to
    26  prevent  the  identification  of  particular  returns or reports and the
    27  items thereof; nor to prohibit the disclosure, in  such  manner  as  the
    28  commissioner deems appropriate, of the names and other appropriate iden-
    29  tifying  information  of  those  persons  required  to pay the surcharge
    30  imposed by this article.
    31    (b) Notwithstanding the provisions of subdivision (a) of this section,
    32  the commissioner may permit the secretary of the treasury of the  United
    33  States or such secretary's delegate, or the authorized representative of
    34  either  such officer, to inspect any return filed under this article, or
    35  may furnish to such officer of such officer's authorized  representative
    36  an  abstract  of  any such return or supply such person with information
    37  concerning an item contained in any such return,  or  disclosed  by  any
    38  investigation of liability under this article, but such permission shall
    39  be  granted or such information furnished only if the laws of the United
    40  States grant substantially similar privileges  to  the  commissioner  or
    41  officer  of  this state charged with the administration of the surcharge
    42  imposed by this article, and only if such information is to be used  for
    43  purposes  of  tax  administration only; and provided further the commis-
    44  sioner may furnish to the  commissioner  of  internal  revenue  or  such
    45  commissioner's  authorized  representative such returns filed under this
    46  article and other tax information, as  such  commissioner  may  consider
    47  proper,  for  use  in  court  actions  or proceedings under the internal
    48  revenue code, whether civil or criminal, where a written request  there-
    49  for  has  been made to the commissioner by the secretary of the treasury
    50  of the United States or such secretary's delegate, provided the laws  of
    51  the United States grant substantially similar powers to the secretary of
    52  the  treasury  of  the  United  States or his or her delegate. Where the
    53  commissioner has so authorized use of returns and other  information  in
    54  such  actions  or  proceedings, officers and employees of the department
    55  may testify in such actions or proceedings in respect to such returns or
    56  other information.

        A. 6078--B                          6
 
     1    (c)(1) Any officer or employer of the state who willfully violates the
     2  provisions of subdivision (a) of this section shall  be  dismissed  from
     3  office  and  be  incapable  of holding any public office for a period of
     4  five years thereafter.
     5    (2)  Cross-reference: For criminal penalties, see article thirty-seven
     6  of this chapter.
     7    § 1299-T. Practice and procedure. The provisions  of  article  twenty-
     8  seven  of this chapter shall apply with respect to the administration of
     9  and procedure with respect to the surcharge imposed by this  article  in
    10  the same manner and with the same force and effect as if the language of
    11  such  article twenty-seven had been incorporated in full into this arti-
    12  cle and had expressly referred to the surcharge imposed by this article,
    13  except to the extent that any such provision is either inconsistent with
    14  a provision of this article or is not relevant to this article.
    15    § 1299-U. Deposit and disposition of revenue. Any surcharge, interest,
    16  and penalties collected or received by the commissioner under this arti-
    17  cle shall be daily remitted to the general transportation account of the
    18  New York city transportation  assistance  fund  established  by  section
    19  twelve  hundred seventy-i of the public authorities law for the purposes
    20  of funding the operating costs of buses and subways within the  city  of
    21  New York.
    22    §  1299-V. Cooperation by regulatory agencies. All regulatory agencies
    23  shall cooperate with and  assist  the  commissioner  to  effectuate  the
    24  purposes  of  this article and the commissioner's responsibilities here-
    25  under. Such cooperation shall also include furnishing to the commission-
    26  er all written, computerized, automated or  electronic  records  in  the
    27  regulatory  agency's  possession,  or  in  the  possession of any of its
    28  agents, instrumentalities, contractors, or any other  person  authorized
    29  or  required  to  obtain  or  possess  such records or information, that
    30  account for any person or entity liable under this article. Such  infor-
    31  mation  shall  be  provided  to  the commissioner without cost, and in a
    32  format prescribed by the commissioner.
    33    § 2. This act shall take effect on the first of January next  succeed-
    34  ing the date upon which it shall have become a law. Effective immediate-
    35  ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
    36  necessary for the implementation of this act on its effective  date  are
    37  authorized to be made on or before such date.
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