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A01143 Summary:

COSPNSREichenstein, Brabenec
Amd §1101, Tax L
Codifies existing guidance on the application of sales and use tax; amends the definition of receipt to include consideration received by a vendor from third parties in certain circumstances.
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A01143 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     January 7, 2021
        Introduced  by M. of A. PAULIN, EICHENSTEIN -- read once and referred to
          the Committee on Ways and Means -- committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee
        AN ACT to amend the tax law, in relation to codifying existing  guidance
          on the application of sales and use tax

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph 3 of subdivision (b) of section 1101 of  the  tax
     2  law,  as  amended  by  section 21 of part Y of chapter 63 of the laws of
     3  2000, is amended to read as follows:
     4    (3) Receipt. (i) The amount of the sale price of any property and  the
     5  charge for any service taxable under this article, including gas and gas
     6  service  and electricity and electric service of whatever nature, valued
     7  in money, whether received in money or otherwise, including  any  amount
     8  for  which credit is allowed by the vendor to the purchaser, without any
     9  deduction for expenses or early payment discounts and also including any
    10  charges by the vendor to the purchaser for shipping  or  delivery,  and,
    11  with  respect  to  gas  and  gas  service  and  electricity and electric
    12  service, any charges by the vendor for transportation,  transmission  or
    13  distribution,  regardless  of whether such charges are separately stated
    14  in the written contract, if  any,  or  on  the  bill  rendered  to  such
    15  purchaser  and regardless of whether such shipping or delivery or trans-
    16  portation, transmission, or distribution is provided by such vendor or a
    17  third party, but excluding any credit  for  tangible  personal  property
    18  accepted  in  part  payment  and  intended for resale. For special rules
    19  governing computation of receipts, see section eleven hundred eleven  of
    20  this article.
    21    (ii)  Receipt  shall include consideration received by the vendor from
    22  third parties if:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1143--A                          2
     1    (A) The vendor receives consideration  from  a  third  party  and  the
     2  consideration is directly related to a rebate, discount or similar price
     3  reduction on the sale;
     4    (B) The vendor has an obligation to pass such consideration through to
     5  the  purchaser  in  the  form  of  a  rebate,  discount or similar price
     6  reduction;
     7    (C) The amount of the consideration to be paid by the third  party  is
     8  fixed  and  determinable  by  the  vendor at the time of the sale of the
     9  property or service to the purchaser; and
    10    (D) One of the following criteria is met:
    11    (I) the purchaser presents a coupon, certificate or  other  documenta-
    12  tion  to  the  vendor  to  claim  a  rebate,  discount  or similar price
    13  reduction where the coupon, certificate or documentation is  authorized,
    14  distributed  or granted by a third party with the understanding that the
    15  third party shall reimburse any vendor to whom the  coupon,  certificate
    16  or documentation is presented;
    17    (II)  the  purchaser presents identification as a member of a group or
    18  organization entitled to a rebate, discount or similar price  reduction;
    19  or
    20    (III) the rebate, discount or similar price reduction is identified as
    21  a third party rebate, discount or similar price reduction on the invoice
    22  received  by the purchaser or on a coupon, certificate or other documen-
    23  tation presented by the purchaser.
    24    (iii) Subparagraph (ii) of this paragraph shall not apply to  rebates,
    25  discounts  or  similar  price  reductions that are reimbursed by a third
    26  party on sales of motor vehicles.
    27    (iv) For the purposes of subclause (II) of clause (D) of  subparagraph
    28  (ii) of this paragraph, "identification as a member of a group or organ-
    29  ization entitled to a rebate, discount or similar price reduction" shall
    30  not  include  the  presentation of a customer loyalty or related rewards
    31  program card.
    32    § 2. This act shall take effect on the first day of a sales tax  quar-
    33  terly period described in subdivision (b) of section 1136 of the tax law
    34  next commencing at least 90 days after this act shall have become a law,
    35  and shall apply to sales occurring on and after such date.
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