NY State Senate Bill 2019-S2988

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to investigations and government operations
Jan 31, 2019	referred to investigations and government operations

co-Sponsors

2019-S2988 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add Art 42 §§3100 - 3108, Tax L
Versions Introduced in 2017-2018 Legislative Session:: S5242

2019-S2988 (ACTIVE) - Summary

Enacts the facilitating business rapid response to state declared disasters act of 2019; relates to exempting certain out-of-state businesses doing work in the state from certain taxes, fees and requirements when temporarily providing services during declared emergencies; and exempts overtime wages of NY state residents from state income tax.

2019-S2988 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2988

SPONSOR: FUNKE
 
TITLE OF BILL:

An act to amend the tax law, in relation to thresholds for establishing
presence, residency or doing business in the state for out-of-state
companies including affiliates of in-state companies that temporarily
provide resources and personnel in the state during a state of emergency
declared by the governor or the President of the United States

 
PURPOSE:

To remove barriers to efficient deployment of in-state and out-of-state
infrastructure restoration workers in order to facilitate restoration of
critical infrastructure, utility repairs and other utility restorations.

 
SUMMARY OF PROVISIONS:

Section 1 establishes a new article 42 in the tax law entitled the
Facilitating Business Rapid Response to State Declared Disaster.  This

new article sets forth definitions of relevant terms such as "Registered
Business", "Out of State Business", "Out of State Employee", "Declared
State Disaster or Emergency", "Disaster Period", and "Disaster or Emer-
gency Related Work."

Provisions relate to out-of-state businesses and employees working in
NYS during an emergency as well as in-state employees working overtime
during a declared emergency. Notification requirements for out-of-state
businesses and employees are also established.

Section 2 is the effective date.

 
JUSTIFICATION:

When disasters occur, utilities and wireless network providers work hard
to recover their networks. To ensure their customers stay connected when
they need it most, infrastructure companies often bring resources and
personnel from other states to affected areas on a temporary basis.
These companies are fortunate to have service-oriented employees who
volunteer to work in disaster-ravaged areas in New York to help restore
service. Bringing in these resources expedites the often enormous and
overwhelming task of cleaning-up, restoring and repairing damaged utili-
ty infrastructure like phone lines, cell towers, electrical networks and
pipelines.  This legislation would remove barriers to efficient deploy-
ment of in-state and out-of-state infrastructure restoration workers and
eliminate delays in the restoration of critical infrastructure and util-
ity restorations and repairs. The bill would codify policy put in place
by the New York State Department of Taxation and Finance in response to
Hurricane Sandy.

The bill would recognize the temporary nature of the work and the need
for rapid response to help a state recover from a disaster or emergency
by establishing thresholds with respect to presence, residency or doing
business in the state for out of state employees and businesses that
temporarily provide resources and personnel in the state during a state
of emergency. This bill would provide flexibility and efficiency for
out-of-state businesses and employees that provide disaster relief in
NYS by not requiring such entities or individuals to file and/or remit
certain taxes for a set period of time after the disaster strikes.
Further, it would relieve in-state workers who are working significant
overtime during a disaster from paying any state income tax on these
additional earnings. Employees and employers will continue to be subject
to taxes and other requirements in their home state during this period.
This relief legislation would reduce the disincentives and headaches for
out of state employees who leave their homes and families to help New
Yorkers during times of need and provide an additional tax benefit to
in-state employees who work long hours and take on extra shift during an
emergency in order to help their community recover faster.

Removing the barriers to efficient deployment of resources to the hard-
est hit areas would improve response times for companies deploying staff
to the affected community so companies can provide the needed capacity
and serve customers faster.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act will take effect immediately.

2019-S2988 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2988
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2019
                                ___________
 
 Introduced  by  Sens.  FUNKE,  AKSHAR, HELMING -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government Operations
 
 AN ACT to amend the tax law, in relation to thresholds for  establishing
   presence,  residency  or  doing business in the state for out-of-state
   companies including affiliates of in-state companies that  temporarily
   provide  resources  and personnel in the state during a state of emer-
   gency declared by the governor or the President of the United States
 
   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 article 42 to read
 as follows:
                                ARTICLE 42
      FACILITATING BUSINESS RAPID RESPONSE TO STATE DECLARED DISASTER
 SECTION 3100. SHORT TITLE.
         3101. DEFINITIONS.
         3102. BUSINESS AND EMPLOYEE STATUS DURING DISASTER PERIOD.
         3103. TRANSACTION TAXES AND FEES.
         3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD.
         3105. NOTIFICATION  OF  OUT-OF-STATE  BUSINESS  DURING  DISASTER
                 PERIOD.
         3106. NOTIFICATION OF INTENT TO REMAIN IN STATE.
         3107. TAX EXEMPT OVERTIME EARNINGS.
         3108. SEVERABILITY.
   §  3100.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "FACILITATING BUSINESS RAPID RESPONSE TO  STATE  DECLARED  DISASTERS
 ACT OF 2019".
   § 3101. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07173-01-9

 S. 2988                             2
 
   1. "REGISTERED BUSINESS IN THE STATE" (OR "REGISTERED BUSINESS") MEANS
 A  BUSINESS  ENTITY  THAT  IS CURRENTLY REGISTERED TO DO BUSINESS IN THE
 STATE PRIOR TO THE DECLARED STATE DISASTER OR EMERGENCY.
   2.  "OUT-OF-STATE  BUSINESS" MEANS A BUSINESS ENTITY THAT HAS NO PRES-
 ENCE IN THE STATE AND CONDUCTS NO BUSINESS IN THE STATE  WHOSE  SERVICES
 ARE REQUESTED BY A REGISTERED BUSINESS OR BY A STATE OR LOCAL GOVERNMENT
 FOR  PURPOSES  OF  PERFORMING  DISASTER OR EMERGENCY RELATED WORK IN THE
 STATE. OUT-OF-STATE BUSINESS SHALL ALSO INCLUDE A BUSINESS  ENTITY  THAT
 IS  AFFILIATED  WITH THE REGISTERED BUSINESS IN THE STATE SOLELY THROUGH
 COMMON OWNERSHIP. THE OUT-OF-STATE BUSINESS HAS NO REGISTRATIONS OR  TAX
 FILINGS  OR  NEXUS  IN THE STATE PRIOR TO THE DECLARED STATE DISASTER OR
 EMERGENCY.
   3. "OUT-OF-STATE EMPLOYEE" MEANS AN EMPLOYEE WHO DOES NOT WORK IN  THE
 STATE,  EXCEPT FOR DISASTER OR EMERGENCY RELATED WORK, DURING THE DISAS-
 TER PERIOD.
   4. "CRITICAL INFRASTRUCTURE" MEANS PROPERTY  AND  EQUIPMENT  OWNED  OR
 USED  BY  COMMUNICATIONS NETWORKS, ELECTRIC GENERATION, TRANSMISSION AND
 DISTRIBUTION SYSTEMS, GAS DISTRIBUTION  SYSTEMS,  WATER  PIPELINES,  AND
 RELATED  SUPPORT  FACILITIES THAT SERVICE MULTIPLE CUSTOMERS OR CITIZENS
 INCLUDING, BUT NOT LIMITED TO, REAL AND PERSONAL PROPERTY SUCH AS BUILD-
 INGS, OFFICES, LINES, POLES, PIPES, STRUCTURES AND EQUIPMENT.
   5. "DECLARED STATE DISASTER OR EMERGENCY" MEANS A DISASTER OR EMERGEN-
 CY EVENT (A) FOR WHICH THE GOVERNOR HAS DECLARED A STATE  OF  EMERGENCY,
 (B)  FOR WHICH A PRESIDENTIAL DECLARATION OF A FEDERAL MAJOR DISASTER OR
 EMERGENCY HAS BEEN ISSUED, OR (C)  OTHER  DISASTER  OR  EMERGENCY  EVENT
 WITHIN THE STATE FOR WHICH A GOOD FAITH RESPONSE EFFORT IS REQUIRED, AND
 FOR  WHICH  THE  DIRECTOR OF THE STATE OFFICE OF EMERGENCY MANAGEMENT IS
 GIVEN NOTIFICATION FROM THE REGISTERED BUSINESS AND SUCH DIRECTOR DESIG-
 NATES SUCH EVENT  AS  A  DISASTER  OR  EMERGENCY  THEREBY  INVOKING  THE
 PROVISIONS OF THIS ARTICLE.
   6. "DISASTER PERIOD" MEANS A PERIOD THAT BEGINS WITHIN TEN DAYS OF THE
 FIRST  DAY  OF THE GOVERNOR'S DECLARATION OR THE PRESIDENT'S DECLARATION
 (WHICHEVER OCCURS FIRST) AND THAT EXTENDS FOR A PERIOD OF SIXTY CALENDAR
 DAYS AFTER THE END OF THE DECLARED DISASTER OR EMERGENCY PERIOD, OR  FOR
 ANY LONGER PERIOD AUTHORIZED BY THE COMMISSIONER.
   7.  "DISASTER  OR EMERGENCY RELATED WORK" MEANS REPAIRING, RENOVATING,
 INSTALLING, BUILDING, RENDERING SERVICES OR  OTHER  BUSINESS  ACTIVITIES
 THAT  RELATE  TO CRITICAL INFRASTRUCTURE THAT HAS BEEN DAMAGED, IMPAIRED
 OR DESTROYED BY THE DECLARED STATE DISASTER OR EMERGENCY.
   § 3102. BUSINESS AND EMPLOYEE STATUS DURING  DISASTER  PERIOD.  1.  AN
 OUT-OF-STATE  BUSINESS  THAT  CONDUCTS  OPERATIONS  WITHIN THE STATE FOR
 PURPOSES OF PERFORMING WORK OR SERVICES  RELATED  TO  A  DECLARED  STATE
 DISASTER OR EMERGENCY DURING THE DISASTER PERIOD SHALL NOT BE CONSIDERED
 TO HAVE ESTABLISHED A LEVEL OF PRESENCE THAT WOULD REQUIRE THAT BUSINESS
 TO  REGISTER,  FILE  AND/OR  REMIT  STATE  OR  LOCAL TAXES OR THAT WOULD
 REQUIRE THAT BUSINESS OR ITS OUT-OF-STATE EMPLOYEES TO BE SUBJECT TO ANY
 STATE LICENSING OR REGISTRATION REQUIREMENTS.  THIS INCLUDES ANY AND ALL
 STATE OR LOCAL BUSINESS LICENSING OR REGISTRATION REQUIREMENTS OR  STATE
 AND  LOCAL  TAXES  OR  FEES  INCLUDING, BUT NOT LIMITED TO, UNEMPLOYMENT
 INSURANCE, SALES AND USE TAX OR AD VALOREM TAX ON EQUIPMENT BROUGHT INTO
 THE STATE TEMPORARILY FOR USE DURING THE DISASTER PERIOD AND THEN SUBSE-
 QUENTLY REMOVED FROM THE STATE.  FOR PURPOSES OF ANY STATE OR LOCAL  TAX
 ON  OR  MEASURED BY, IN WHOLE OR IN PART, NET OR GROSS INCOME, INCLUDING
 BASE AND OVERTIME PAY, OR RECEIPTS, ALL  ACTIVITY  OF  THE  OUT-OF-STATE
 BUSINESS  THAT IS CONDUCTED IN THIS STATE PURSUANT TO THIS ARTICLE SHALL
 NOT BE TREATED AS OCCURRING IN THIS STATE WITH  RESPECT  TO  ANY  FILING

 S. 2988                             3
 
 REQUIREMENTS FOR SUCH TAX INCLUDING THE FILING REQUIRED FOR A UNITARY OR
 COMBINED  GROUP  OF WHICH THE OUT-OF-STATE BUSINESS MAY BE A PART. ALSO,
 FOR THE PURPOSES  OF  APPORTIONING  INCOME,  REVENUE,  OR  RECEIPTS  THE
 PERFORMANCE  BY  AN  OUT-OF-STATE  BUSINESS OF ANY DISASTER OR EMERGENCY
 RELATED WORK SHALL NOT BE SOURCED TO OR SHALL NOT  OTHERWISE  IMPACT  OR
 INCREASE  THE AMOUNT OF INCOME, REVENUE, OR RECEIPTS APPORTIONED TO THIS
 STATE.
   2. ANY OUT-OF-STATE  EMPLOYEE  AS  DEFINED  IN  SUBDIVISION  THREE  OF
 SECTION  THIRTY-ONE  HUNDRED ONE OF THIS ARTICLE SHALL NOT BE CONSIDERED
 TO HAVE ESTABLISHED RESIDENCY OR A PRESENCE  IN  THE  STATE  THAT  WOULD
 REQUIRE  THAT  PERSON  OR  THAT PERSON'S EMPLOYER TO FILE AND PAY INCOME
 TAXES OR TO BE SUBJECTED TO TAX WITHHOLDINGS OR  TO  FILE  AND  PAY  ANY
 OTHER  STATE  OR  LOCAL  TAX  OR  FEE  DURING  THE DISASTER PERIOD. THIS
 INCLUDES ANY RELATED STATE OR LOCAL EMPLOYER WITHHOLDING AND  REMITTANCE
 OBLIGATIONS FOR ANY OUT-OF-STATE EMPLOYEE'S BASE AND OVERTIME PAY.
   §  3103.  TRANSACTION TAXES AND FEES. OUT-OF-STATE BUSINESSES AND OUT-
 OF-STATE EMPLOYEES SHALL BE REQUIRED TO PAY TRANSACTION TAXES  AND  FEES
 INCLUDING  BUT NOT LIMITED TO FUEL TAXES OR SALES/USE TAXES ON MATERIALS
 OR SERVICES SUBJECT TO SALES/USE TAX, HOTEL TAXES, CAR RENTAL  TAXES  OR
 FEES  THAT THE OUT-OF-STATE AFFILIATED BUSINESS OR OUT-OF-STATE EMPLOYEE
 PURCHASES FOR USE OR CONSUMPTION IN THE STATE DURING THE DISASTER  PERI-
 OD, UNLESS SUCH TAXES ARE OTHERWISE EXEMPTED DURING A DISASTER PERIOD.
   §  3104. BUSINESS OR EMPLOYEE ACTIVITY AFTER DISASTER PERIOD. ANY OUT-
 OF-STATE BUSINESS OR OUT-OF-STATE EMPLOYEE THAT  REMAINS  IN  THE  STATE
 AFTER  THE  DISASTER  PERIOD  WILL  BECOME SUBJECT TO THE STATE'S NORMAL
 STANDARDS FOR ESTABLISHING PRESENCE, RESIDENCY OR DOING BUSINESS IN  THE
 STATE AND WILL THEREFORE BECOME RESPONSIBLE FOR ANY BUSINESS OR EMPLOYEE
 TAX REQUIREMENTS THAT ENSUE.
   §  3105. NOTIFICATION OF OUT-OF-STATE BUSINESS DURING DISASTER PERIOD.
 1. THE OUT-OF-STATE BUSINESS THAT ENTERS THE STATE SHALL, UPON  REQUEST,
 PROVIDE  THE DEPARTMENT A STATEMENT THAT IT IS IN THE STATE FOR PURPOSES
 OF RESPONDING TO  THE  DISASTER  OR  EMERGENCY,  WHICH  STATEMENT  SHALL
 INCLUDE  THE  BUSINESS'  NAME,  STATE  OF  DOMICILE,  PRINCIPAL BUSINESS
 ADDRESS, FEDERAL TAX IDENTIFICATION NUMBER, DATE OF ENTRY,  AND  CONTACT
 INFORMATION.
   2. A REGISTERED BUSINESS IN THE STATE SHALL, UPON REQUEST, PROVIDE THE
 INFORMATION  REQUIRED  IN SUBDIVISION ONE OF THIS SECTION FOR ANY AFFIL-
 IATE THAT ENTERS THE STATE THAT IS AN OUT-OF-STATE BUSINESS. THE NOTIFI-
 CATION SHALL ALSO INCLUDE CONTACT INFORMATION FOR THE  REGISTERED  BUSI-
 NESS IN THE STATE.
   §  3106.  NOTIFICATION  OF  INTENT TO REMAIN IN STATE. AN OUT-OF-STATE
 BUSINESS OR AN OUT-OF-STATE EMPLOYEE THAT REMAINS IN THE STATE AFTER THE
 DISASTER PERIOD SHALL COMPLETE STATE AND LOCAL  REGISTRATION,  LICENSING
 AND  FILING  REQUIREMENTS  THAT  ENSUE  AS  A RESULT OF ESTABLISHING THE
 REQUISITE BUSINESS PRESENCE OR RESIDENCY IN THE STATE  APPLICABLE  UNDER
 THE EXISTING RULES.
   §  3107.  TAX EXEMPT OVERTIME EARNINGS. ANY INCOME OF A NEW YORK RESI-
 DENT INDIVIDUAL  WHICH  IS  ATTRIBUTABLE  TO  OVERTIME  HOURS  DURING  A
 DECLARED  STATE DISASTER OR EMERGENCY AND WHICH IS DISASTER OR EMERGENCY
 RELATED WORK, AS SUCH TERMS ARE DEFINED IN THIS ARTICLE, SHALL BE EXEMPT
 FROM TAXATION UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
   § 3108. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, THE JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVALI-
 DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN  ITS  OPERATION  TO
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION  OR  PART  THEREOF DIRECTLY

 S. 2988                             4

 INVOLVED IN THE CONTROVERSY  IN  WHICH  THE  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   §  2.  This  act shall take effect immediately. Provided, however, the
 commissioner of the department of taxation and finance is authorized  to
 promulgate  any  rules  or  regulations,  and develop and issue forms or
 online processes necessary for the timely implementation of this act.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S2988

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2019-S2988 (ACTIVE) - Details

2019-S2988 (ACTIVE) - Summary

2019-S2988 (ACTIVE) - Sponsor Memo

2019-S2988 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2988

Share this bill

Sponsored By

Rich Funke

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

Fred Akshar

Pamela Helming

2019-S2988 (ACTIVE) - Details

2019-S2988 (ACTIVE) - Summary

2019-S2988 (ACTIVE) - Sponsor Memo

2019-S2988 (ACTIVE) - Bill Text download pdf

Comments