NY State Senate Bill 2023-S119

Senate Bill S119

2023-2024 Legislative Session

Prohibits the New York state department of taxation and finance from charging a fee for applications for a certificate of registration pursuant to a re-registration program

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Jan 04, 2023	referred to budget and revenue

2023-S119 (ACTIVE) - Details

See Assembly Version of this Bill:: A4215
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd Part LL-1 §1, Chap 57 of 2008; amd §1134, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5277
2021-2022: S3309, A6739

2023-S119 (ACTIVE) - Summary

Prohibits the New York state department of taxation and finance from charging a fee for applications for a certificate of registration pursuant to a re-registration program.

2023-S119 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S119

SPONSOR: GALLIVAN
 
TITLE OF BILL:

An act to amend section 1 of part LL-1 of chapter 57 of the laws of
2008, relating to directing the commissioner of taxation and finance to
institute a re-registration program, in relation to prohibiting the New
York state department of taxation and finance from charging a vendor
re-registration fee; to authorize the refund of all re-registration fees
collected by the New York state department of taxation and finance; and
to amend the tax law, in relation to prohibiting the New York state
department of taxation and finance from charging vendors any fees to
collect NYS sales tax

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will require the fifty dollar fee associated with the re-re-
gistration of a certificate of registration, which is mandated to be
filed with Department of Taxation and Finance by a business who collects
sales taxes, to be refunded to such business.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Repeals part LL-1 of the Chapter 57 of the laws of 2008,
relating to directing the Commissioner of Taxation and Finance to insti-
tute a re-registration program for vendors who collect New York State
sales tax and amends current law to prohibit the New York State Depart-
ment of Taxation and Finance from charging vendors any fees to collect
New York State sales tax.

Section 2. Provides reimbursement to businesses for any payment of fees
associated with the re-registration program.

Section 3. Makes technical amendments to section 1134 of the tax law
governing registration of persons who collect sales taxes to prohibit
the assessment of a fee to file anew certificate of registration.

Section 4. Establishes the effective date.

 
JUSTIFICATION:

New York State must become more business friendly by providing busi-
nesses with opportunities to succeed. The 2008 "Vendor Registration Fee"
is another disincentive to own and operate a business in New York State.

The original certificate of registration to collect sales tax for the
New York State Department of Taxation and Finance was issued to busi-
nesses with no fees and no expiration date. Business in the state should
not have to pay for the privilege of collecting state sales tax. The
current law does not indicate that this is a one-time fee and many busi-
ness owners are leery that this will become another revenue stream for
the state on an ongoing basis and fees could increase as time goes on.

This bill would prevent the New York State Department of Taxation and
Finance from charging a registration fee for vendors to collect sales
tax and would reimburse any fees already collected to date.

 
PRIOR LEGISLATIVE HISTORY:
2021-22: S.3309 Referred to Budget and Revenue

2019-20: S5277/A1762 referred to Budget and Revenue/Referred to Ways and
Means

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the provisions of
section two of this act shall apply to all certificates of Registration
required to be filed under section 1134 of the tax law pursuant to the
re-registration program instituted by the commissioner of taxation and
finance as authorized by section 1 of part LL-1 of chapter 57 of the
laws of 2008 and filed on or after November 1, 2008.

2023-S119 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    119
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend section 1 of part LL-1 of chapter  57  of  the  laws  of
   2008,  relating  to directing the commissioner of taxation and finance
   to institute a re-registration program, in relation to prohibiting the
   New York state department of taxation  and  finance  from  charging  a
   vendor  re-registration  fee; to authorize the refund of all re-regis-
   tration fees collected by the New York state  department  of  taxation
   and  finance; and to amend the tax law, in relation to prohibiting the
   New York state  department  of  taxation  and  finance  from  charging
   vendors any fees to collect NYS sales tax
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1 of part LL-1 of chapter 57 of the laws  of  2008,
 relating to directing the commissioner of taxation and finance to insti-
 tute a re-registration program, is amended to read as follows:
   Section  1.    The commissioner of taxation and finance is directed to
 institute a re-registration program pursuant to section 1134 of the  tax
 law,  which  program  should  be completed by March 31, 2012.  [Notwith-
 standing any law to the  contrary,  every  certificate  of  registration
 filed  pursuant  to this re-registration program by a person required to
 file sales and compensating use tax returns for the monthly or quarterly
 periods described in section 1136 of the tax law must be accompanied  by
 a  50  dollar application fee to constitute a complete application. This
 fee must be paid and disposed of in the same manner as the taxes imposed
 by section 1105  of  the  tax  law  and  may  be  determined,  assessed,
 collected  and enforced in the same manner as the tax imposed by article
 28 of the tax law. Notwithstanding section 1148 of the tax law,  or  any
 other law to the contrary, such commissioner must retain from the appli-
 cation  fees  collected  or  received  an  amount that such commissioner

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

                                                            LBD00521-01-3
 S. 119                              2

 determines is necessary to cover reasonable costs of  such  commissioner
 in  implementing,  administering and enforcing registrations pursuant to
 this section, but no more than the amount of those fees. The  provisions
 of subdivisions (a) and (c) of section 1139 of the tax law apply, except
 that  no  interest  is  allowed  or paid on any refund.] A person may be
 subject to the re-registration program directed by this section even  if
 such person holds a certificate of authority that has not been in effect
 for a period of at least three years.
   §  2. Notwithstanding any law, rule or regulation to the contrary, all
 50 dollar application fees collected by the department of  taxation  and
 finance  pursuant  to  the  re-registration  program  instituted  by the
 commissioner of taxation and finance as authorized by section 1 of  part
 LL-1  of chapter 57 of the laws of 2008 shall be refunded to the persons
 who paid such fees.
   § 3. Paragraph 5 of subdivision (a) of section 1134 of the tax law, as
 amended by chapter 2 of the laws of 1995, is amended to read as follows:
   (5) If the commissioner considers it necessary for the proper adminis-
 tration of the sales and use taxes and prepaid  taxes  imposed  by  this
 article  and  pursuant  to  the authority of article twenty-nine of this
 chapter, it may require every  person  under  this  section  or  section
 twelve  hundred  fifty-three  of this chapter who holds a certificate of
 authority to file a new certificate of registration, WITHOUT CHARGE, AND
 in such form and at such time as the commissioner may prescribe  and  to
 surrender  such  certificate  of authority. The commissioner may require
 such filing and such surrender not more  often  than  once  every  three
 years.  Upon  the  filing  of  such  certificate of registration and the
 surrender of such  certificate  of  authority,  the  commissioner  shall
 issue, within such time as the commissioner may prescribe, a new certif-
 icate  of  authority, without charge, to each registrant and a duplicate
 thereof for each additional place of business of such registrant.
   § 4. This  act  shall  take  effect  immediately;  provided  that  the
 provisions of section two of this act shall apply to all certificates of
 registration  required  to  be  filed  under section 1134 of the tax law
 pursuant to the re-registration program instituted by  the  commissioner
 of taxation and finance as authorized by section 1 of part LL-1 of chap-
 ter 57 of the laws of 2008 and filed on or after November 1, 2008.

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