S T A T E   O F   N E W   Y O R K
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                                 7674--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 20, 2009
                               ___________

Introduced  by  M.  of  A.  KAVANAGH,  J. RIVERA, FIELDS, ALFANO, CLARK,
  ESPAILLAT -- Multi-Sponsored by -- M. of A. GABRYSZAK, V. LOPEZ, SCHI-
  MEL -- 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 requiring issuers of  credit
  cards  and  debit cards to pay and collect sales and use taxes and pay
  such taxes to the commissioner of taxation and finance

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 1168 to read
as follows:
  S  1168. COLLECTION AND PAYMENT OF TAXES BY PROCESSORS OF CREDIT CARDS
AND DEBIT CARDS. (A) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO  THE
CONTRARY,  AN  ISSUER  OF  CREDIT  CARDS  OR  DEBIT CARDS, AS DEFINED IN
SECTION FIVE HUNDRED ELEVEN OF THE GENERAL BUSINESS LAW,  SHALL  COLLECT
AND  PAY  TAXES IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS
CHAPTER, AND SHALL BE SUBJECT TO ALL PROVISIONS OF SUCH  ARTICLES  AS  A
PERSON REQUIRED TO COLLECT TAX, AS DEFINED IN SUBDIVISION ONE OF SECTION
ELEVEN  HUNDRED THIRTY-ONE OF THIS CHAPTER ON ALL TRANSACTIONS CONDUCTED
WITH A CREDIT OR DEBIT CARD OF THE ISSUER, PROVIDED,  HOWEVER,  NOTWITH-
STANDING  ANY  LAW, RULE OR REGULATION TO THE CONTRARY, SUCH TAXES SHALL
BE PAID DIRECTLY TO THE COMMISSIONER BY THE ISSUER.
  (B) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO  THE  CONTRARY,  ON
ANY  TRANSACTION  CONDUCTED  WITH  A DEBIT OR CREDIT CARD OF THE ISSUER,
WHEREIN THE ISSUER IS REQUIRED TO COLLECT  AND  PAY  TAXES  PURSUANT  TO
SUBDIVISION (A) OF THIS SECTION, THE VENDOR OF TANGIBLE PERSONAL PROPER-
TY OR SERVICES INVOLVED IN SAID TRANSACTION SHALL NOT BE REQUIRED TO PAY
AND  COLLECT  TAXES PURSUANT TO ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF
THIS CHAPTER, RATHER THIS DUTY SHALL BE IMPOSED UPON PROCESSORS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04695-04-9

              

A. 7674--A                          2

  (C) FOR PURPOSES OF THIS SECTION,  PROCESSOR  SHALL  MEAN  ANY  ENTITY
WHICH  CONTRACTS  WITH VENDORS TO PROCESS THEIR CREDIT CARD RECEIPTS AND
WHO FOR A FEE, OBTAIN FUNDS FOR VENDORS FROM SUCH ISSUERS OF  CREDIT  OR
DEBIT CARDS.
  S  2. This act shall take effect on the first of October next succeed-
ing the date on which it shall have become a law, except that any  rules
and  regulations  necessary for the timely implementation of this act on
its effective date shall be promulgated on or before such date.