Exempts from sales and compensating use taxes and establishes a tax credit for any equipment or product, including materials used in the construction of physical barriers, purchased by a small business doing business in this state that is directly used by such small business to comply with a COVID-19 health and safety plan.
STATE OF NEW YORK
________________________________________________________________________
9078
IN SENATE
November 2, 2020
___________
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to exempting from sales and
compensating use taxes and establishing a tax credit for any equipment
or product purchased by a small business that is used to comply with a
COVID-19 health and safety plan
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 46 to read as follows:
3 (46) Any equipment or product, including materials used in the
4 construction of physical barriers, including but not limited to plastic
5 shielding walls, strip curtains, cubicle walls, plexiglass or similar
6 materials, or other impermeable dividers or partitions, purchased by a
7 small business doing business in this state that is directly used by
8 such small business to be in compliance with a COVID-19 health and safe-
9 ty plan. For purposes of this paragraph, the term "small business" shall
10 mean a business with one hundred or fewer employees.
11 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
12 sion 55 to read as follows:
13 55. Sales tax paid on materials for COVID-19 health and safety plan
14 compliance. (1) For the period beginning May fifteenth, two thousand
15 twenty and ending on the effective date of this subdivision, a taxpayer
16 who owns a small business shall be allowed a credit for sales tax paid
17 for any equipment or product, including materials used in the
18 construction of physical barriers, including but not limited to plastic
19 shielding walls, strip curtains, cubicle walls, plexiglass or similar
20 materials, or other impermeable dividers or partitions, purchased by
21 such small business in order to be in compliance with a COVID-19 health
22 and safety plan.
23 (2) If the amount of the credit allowed under this subdivision for any
24 taxable year shall exceed the small business's tax for such year, the
25 excess shall be treated as an overpayment of tax to be credited or
26 refunded in accordance with the provisions of section six hundred eight-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD17524-03-0
S. 9078 2
1 y-six of this chapter, provided, however, that no interest shall be paid
2 thereon.
3 (3) For purposes of this subdivision, the term "small business" shall
4 mean a business with one hundred or fewer employees.
5 § 3. Section 606 of the tax law is amended by adding a new subsection
6 (kkk) to read as follows:
7 (kkk) Sales tax paid on materials for COVID-19 health and safety plan
8 compliance. (1) For the period beginning May fifteenth, two thousand
9 twenty and ending on the effective date of this subsection, a taxpayer
10 who owns a small business shall be allowed a credit for sales tax paid
11 for any equipment or product, including materials used in the
12 construction of physical barriers, including but not limited to plastic
13 shielding walls, strip curtains, cubicle walls, plexiglass or similar
14 materials, or other impermeable dividers or partitions, purchased by
15 such small business in order to be in compliance with a COVID-19 health
16 and safety plan.
17 (2) If the amount of the credit allowed under this subsection for any
18 taxable year shall exceed the taxpayer's tax for such year, the excess
19 shall be treated as an overpayment of tax to be credited or refunded in
20 accordance with the provisions of section six hundred eighty-six of this
21 article, provided, however, that no interest shall be paid thereon.
22 (3) For purposes of this subsection, the term "small business" shall
23 mean a business with one hundred or fewer employees.
24 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
25 of the tax law is amended by adding a new clause (xlvi) to read as
26 follows:
27 (xlvi) Sales tax paid on materialsSales tax paid on
28 for COVID-19 health and safetymaterials for
29 plan compliance underCOVID-19 health
30 subsection (kkk)and safety plan
31 compliance under
32 subdivision fifty-five
33 of section two
34 hundred ten-B
35 § 5. This act shall take effect on the first day of the sales tax
36 quarterly period commencing after this act shall have become a law, and
37 shall apply to sales made and uses occurring on and after such date in
38 accordance with applicable transitional provisions of sections 1106 and
39 1217 of the tax law; provided that the commissioner of taxation and
40 finance shall be authorized on and after the date this act shall have
41 become a law to take steps necessary to implement the provisions of this
42 act on its effective date.