S T A T E   O F   N E W   Y O R K
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                                   7541
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced by M. of A. STIRPE -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT to amend the tax law, in relation to enacting the "microbusiness
   resiliency and growth act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Short  title. This act shall be known and may be cited as
 the "microbusiness resiliency and growth act".
   § 2. Section 1105 of the tax law is amended by adding a  new  subdivi-
 sion (g) to read as follows:
   (G) FOR THE PURPOSES OF THIS CHAPTER, "MICROBUSINESS" SHALL BE DEFINED
 AS  A  BUSINESS  EMPLOYING  FIVE  OR  FEWER PERSONS, IS RESIDENT IN THIS
 STATE, IS INDEPENDENTLY OWNED AND  OPERATED,  IS  NOT  DOMINANT  IN  ITS
 FIELD, AND DOES NOT CONDUCT ITS BUSINESS TRANSACTIONS PRIMARILY OVER THE
 INTERNET.  WHEN THE GOODS OR SERVICES ARE PURCHASED FROM A MICROBUSINESS
 WITHIN  THE  FIRST  FIVE YEARS OF THE OPENING OF SUCH MICROBUSINESS OR A
 MICROBUSINESS WITH A GROSS PROFIT OF FIVE HUNDRED  THOUSAND  DOLLARS  OR
 LESS  IN  THE PRIOR TAX YEAR,  TAX PAID ON SUCH SALES FOR THE FIRST YEAR
 SHALL BE ZERO PERCENT AND IN THE SECOND YEAR, SUCH SALES  TAX  SHALL  BE
 TWO  PERCENT  PROVIDED,  HOWEVER THAT THE PROFIT GENERATED ON SUCH FIRST
 AND SECOND YEAR SALES TAX REDUCTION IS COLLECTED UP UNTIL THE DIFFERENCE
 BETWEEN THE PRIOR AND CURRENT MINIMUM WAGE PURSUANT TO  SUBDIVISION  ONE
 OF  SECTION  SIX  HUNDRED FIFTY-TWO OF THE LABOR LAW IN CONCURRENCE WITH
 QUARTERLY SALES TAX PERIODS AS PRESCRIBED BY THE DEPARTMENT.  AFTER  THE
 END  OF  THE  SECOND YEAR, SALES TAXES SHALL RETURN TO FOUR PERCENT. TAX
 PAID ON SALES AFTER THE PROFIT DIFFERENCE BETWEEN THE PRIOR MINIMUM WAGE
 AND CURRENT MINIMUM WAGE PURSUANT TO  SUBDIVISION  ONE  OF  SECTION  SIX
 HUNDRED  FIFTY-TWO OF THE LABOR LAW IS MET SHALL RETURN TO FOUR PERCENT.
 MICROBUSINESSES THAT ELECT TO USE A SEGREGATED SALES TAX ACCOUNT FOR THE
 HANDLING OF TRANSACTIONS WITH THE DEPARTMENT, OR ARE  REQUIRED  TO  KEEP
 SUCH  AN ACCOUNT PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11020-01-3
              

 A. 7541                             2
 
 ARTICLE MUST DEDUCT THE AFOREMENTIONED PROFIT FROM THE SEGREGATED  SALES
 TAX ACCOUNT WITHIN ONE WEEK OF DEPOSIT.
   §  3.  Section 1135 of the tax law is amended by adding a new subdivi-
 sion (f-1) to read as follows:
   (F-1) EVERY MICROBUSINESS OWNER SHALL KEEP RECORDS OF  THE  NUMBER  OF
 EMPLOYEES,  THEIR  WAGE,  AND THE AMOUNT OF THE SALES TAX REDUCTION ON A
 QUARTERLY BASIS AND IN THE MANNER PRESCRIBED BY THE COMMISSIONER  PURSU-
 ANT TO RULES AND REGULATIONS.
   §  4.  This  act  shall  take effect on the first day of the sales tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax law, next commencing at least 90 days  after  this  act  shall  have
 become  a law and shall apply in accordance with the  applicable transi-
 tional provisions of sections 1106 and 1217 of the tax law.