BILL NUMBER: S3969

SPONSOR: SERINO
 
TITLE OF BILL:

An act to repeal section 581-d of the labor law, relating to the inter-
est assessment surcharge

 
PURPOSE:

To abolish the interest assessment surcharge on employers intending to
pay off state debt.

 
SUMMARY OF PROVISIONS:

Section 1: Repeals Section 581-d of the Labor Law, which provides for
the interest assessment surcharge

Section 2: Provides the effective date.

 
              

JUSTIFICATION:

In an effort to reduce the spread of the COVID-19 pandemic, New York
State mandated countless businesses to close or significantly reduce
their operations. Since the start of the New York State on PAUSE shut-
down, many businesses still remain closed-some for good-or at reduced
operations. As a result, the unemployment rate and unemployment claims
have skyrocketed during the pandemic, and businesses are struggling to
stay afloat to keep what remaining employees they still have employed.

While the State has loosened restrictions on some businesses, such as
restaurants, to provide relief during these difficult times, the already
high cost of doing business and burdensome mandates that contributed to
New York's inhospitable businesses climate, even prior to the pandemic,
are now exacerbated in an economy that is struggling to recover.

As New Yorkers look to return to their old jobs, or find new opportu-
nities, it is essential that New York moves to ensure businesses have
the opportunity to thrive in this challenging business climate. This
will require lowering the cost of doing business in the State, which can
start with eliminating unnecessary taxes, fees and assessments on New
York's businesses such as the interest assessment surcharge.

The interest assessment surcharge was established to cover the costs of
interest due on advances from the federal unemployment account during
periods where interest accrues. However, this costly fee burdens New
York's employers and holds them responsible for the State's debt. In
light of the spike in unemployment claims during the NYS on PAUSE order,
it is simply unreasonable to think that, after all New Yorkers have
already sacrificed to reduce the spread of COVID-19, our businesses can
cover the interest on any loans the State takes to make these payments.

However, repealing the interest assessment surcharge would provide a
boost for local businesses that need all the help they can get right now
to open up, keep their doors open and to help our local economies bounce
back. This legislation would repeal this surcharge and be a positive
step in the State's economic recovery from the devastating toll of the
coronavirus.

 
LEGISLATIVE HISTORY:

2020: S.9066 Referred to Rules

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately.