S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5046--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2023
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee  on  Corporations,  Authorities  and  Commissions   --   committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT in relation to directing the commissioner of taxation and finance
   to  conduct a study of assessments, fees and tax rates, and associated
   policies of the state of New York relating to providers of  telecommu-
   nications services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that  as  tele-
 communications technologies continue to evolve, their expansion through-
 out  the  state  has  led  to increasing competition among entities both
 within and without the traditional regulatory approach of the department
 of public service, including but not limited to cable, satellite, wired,
 wireless and broadband service providers.    Specifically,  the  ongoing
 modernization  of  the  industry's service offerings and the delivery of
 those services, as well as the intersecting spheres of business occupied
 by all entities within the telecommunications industry, necessitate that
 the department, in consultation with the department of  public  service,
 conduct a comprehensive study and analysis of New York's state and local
 tax  laws  to  provide  a fair, efficient, and uniform method for taxing
 communications providers and their services sold in  the  state  of  New
 York.  New  York's tax law needs to be restructured with regard to state
 and local taxes, as necessary, to account for the impact of federal  and
 state  legislation,  industry  regulation, the impact of regulatory fees
 and assessments on total taxes paid, and the many and diverse  providers
 offering  functionally  equivalent  communications  services  in today's
 marketplace. The legislature further finds  that,  to  both  retain  and
 attract business and customers, New York should strive to tax telecommu-
 nications industry providers in a uniform, consistent and nondiscrimina-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08999-03-3
              

 A. 5046--A                          2
 
 tory manner which results in a neutral tax policy that will free consum-
 ers to choose a provider based on tax-neutral considerations.  To do so,
 the  legislature calls on the department of taxation and finance to make
 recommendations  to  streamline  and simplify the existing system, which
 includes various assessments, fees and rates imposed at  all  levels  of
 government  with an eye to simplifying the compliance process for commu-
 nications providers and lowering the cost of collecting taxes and  fees,
 increasing service availability and competition, spurring new technology
 expansion  into all of New York, and fostering fair, healthy competition
 as broadly as possible.
   § 2. a. The commissioner of taxation and finance, in consultation with
 the department of public service, is hereby authorized and  directed  to
 conduct a study of assessments, fees and tax rates, and associated poli-
 cies of the state of New York, relating to the telecommunications indus-
 try  including, but not limited to the cable, satellite, wired, wireless
 and broadband industries of the state. In  conducting  this  study,  the
 commissioner  of  taxation  and  finance  shall examine the fairness and
 equitableness of the current tax and  assessment  structures  and  their
 applicability  to  the several and diverse providers in the telecommuni-
 cations industry and further assure that all end  customers,  regardless
 of  the  entity  from which they purchase their service, bear a fair and
 proportional share of the assessment imposed for such service,  as  such
 commissioner may determine.
   b.  Such study shall include, but not be limited to, an examination of
 the taxation of telecommunications industry entities and  all  providers
 of  communications  services, whether or not regulated by the department
 of public service and a set of recommendations to streamline and simpli-
 fy the existing system with an eye to refining  the  compliance  process
 for  communications providers, lowering the cost of collecting taxes and
 fees, increasing service availability, spurring new technology expansion
 into all of New York, and fostering fair, healthy competition as broadly
 as possible.
   c. Upon completion of the study, but no later than the first of  Janu-
 ary,  2024,  the  commissioner  of  taxation  and finance shall submit a
 report based on the findings of the study to the governor, the temporary
 president of the senate, the speaker of the assembly, the minority lead-
 er of the senate, the minority leader of the assembly, the chair of  the
 senate  corporations,  authorities  and  commissions  committee, and the
 chair of the assembly corporations, authorities and commissions  commit-
 tee which shall include the findings of the study as well as recommenda-
 tions  for  statutory  changes  that may be implemented to ensure a more
 fair and proportional distribution of the assessments,  fees  and  taxes
 imposed  on  telecommunications industry providers and their end custom-
 ers.
   § 3. This act shall take effect immediately.