NY State Senate Bill 2023-S2581B

Senate Bill S2581B

2023-2024 Legislative Session

Establishes a tax on direct broadcast satellite services and video streaming services and establishes the community media reinvestment fund

download bill text pdf

Current 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 08, 2024	print number 2581b
Apr 08, 2024	amend and recommit to investigations and government operations
Jan 18, 2024	print number 2581a
Jan 18, 2024	amend and recommit to investigations and government operations
Jan 03, 2024	referred to investigations and government operations
Jan 23, 2023	referred to investigations and government operations

Bill Amendments

Original

B (Active)

co-Sponsors

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2023-S2581 - Details

See Assembly Version of this Bill:: A5900
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add Art 15 §§330 & 331, Tax L; add §99-m, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S9254

2023-S2581 - Summary

Establishes a tax on direct broadcast satellite services and video streaming services; establishes the community media reinvestment fund; imposes an excise tax on direct broadcast satellite services or video streaming services; provides monies from the community media reinvestment fund shall be distributed to the state general fund, municipalities and infrastructure or services overseen by the ConnectALL office or organizations identified by ConnectALL.

2023-S2581 - Sponsor Memo

                                 
BILL NUMBER: S2581

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax on direct
broadcast satellite services and video streaming services; and to amend
the state finance law, in relation to establishing the community media
reinvestment fund

 
PURPOSE:

Establishes a tax on direct broadcast satellite services and video
streaming services and establishes the community media reinvestment
fund.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 states that this act shall be known and may be cited as the
"community media reinvestment act".

Section 330 amends the tax law by adding a new article 15. Further sets

the definitions for the article.

Section 331 - imposition and collection of an assessment on direct
broadcast satellite services and video streaming services. Imposes an
excise tax on direct broadcast satellite services or video streaming
service providers.

subsections (2-6) - further delineates the parameters for payment,
reporting, and filing for the taxation of the direct broadcast satellite
services and video streaming service providers.

Section 3 - amends the state finance law by adding a new section 99-m.
Establishes, in joint custody of the comptroller and commission of taxa-
tion and finance, the "Community media reinvestment fund".

Section 4 sets forth the effective date.

 
JUSTIFICATION:

The legislation will ensure that, as video programming viewership
expands and migrates from traditional cable services to satellite and
video streaming services, that migration does not result in reduced
support for and investment in local video programming responsive to the
unique needs and interests of New Yorkers, including public, educa-
tional, or governmental access television programming.

The Community Media Reinvestment Act will impose an excise tax on enti-
ties providing (1) direct broadcast satellite service or (2) video
streaming services other than cable service (as defined by the federal
Cable Act) to customers or subscribers in New York State.  This excise
tax-which mirrors the 5% franchise fee imposed on cable television oper-
ators-consists of a 5% tax on the gross receipts that direct broadcast
satellite service providers or video streaming service providers derive
from providing video programming to New Yorkers.

The Act also creates a Community Media Reinvestment Fund, in the joint
custody of the Commissioner of Taxation and Finance and the Comptroller,
where the revenue collected from this tax will be deposited. The Commis-
sioner may retain up to 10% of the money in the fund, each year, for
operating expenses.

The money collected in the Community Media Reinvestment Fund will
disburse 20% of revenues collected-less operating expenses-to the State
General Fund; 40% of revenues to municipalities in the state; and 40% of
revenues to entities responsible for operating and administering public,
educational, and/or governmental access channels in the state ("communi-
ty media centers").

As gathered from the research directed by NYCAM, taxing digital media
goods and services would generate at least $250-500 million annually in
new tax revenues for New York immediately.

 
LEGISLATIVE HISTORY:

2021/22: S9254 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately

2023-S2581 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2581
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to establishing a tax on direct
   broadcast satellite services and  video  streaming  services;  and  to
   amend the state finance law, in relation to establishing the community
   media reinvestment fund
 
   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 "community media reinvestment act".
   §  2.  The  tax  law  is amended by adding a new article 15 to read as
 follows:
                                 ARTICLE 15
                     COMMUNITY MEDIA REINVESTMENT ACT
 SECTION 330. DEFINITIONS.
         331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROAD-
                CAST SATELLITE SERVICES AND VIDEO STREAMING SERVICES.
   § 330. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "MUNICIPALITY" MEANS ANY VILLAGE, TOWN, CITY, OR COUNTY NOT WHOLLY
 CONTAINED WITHIN A CITY IN THE STATE OF NEW YORK;
   2. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY, TRUST OR ASSOCIATION, WITH OR WITHOUT  TRANSFERABLE  SHARES,  JOINT-
 STOCK  COMPANY,  CORPORATION,  SOCIETY, CLUB, ORGANIZATION, INSTITUTION,
 ESTATE, RECEIVER, TRUSTEE, ASSIGNEE OR  REFEREE  AND  ANY  OTHER  PERSON
 ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A
 COURT OR OTHERWISE, AND ANY COMBINATION OF INDIVIDUALS ACTING AS A UNIT.
 THE  TERM  "PERSON",  UNLESS  EXPRESSLY  PROVIDED  OTHERWISE,  DOES  NOT
 INCLUDE:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06297-01-3
 S. 2581                             2

 
   (A) A GOVERNMENTAL ENTITY OR A UNIT OR INSTRUMENTALITY  OF  A  GOVERN-
 MENTAL ENTITY; OR
   (B)  ANY  ENTITY EXEMPT FROM SALES AND COMPENSATING USE TAXES PURSUANT
 TO PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION ELEVEN  HUNDRED  SIXTEEN
 OF THIS CHAPTER;
   3.  "COMMUNITY MEDIA ORGANIZATION" MEANS AN ENTITY THAT IS RESPONSIBLE
 FOR:
   (A) OPERATING AND ADMINISTERING A PUBLIC ACCESS CHANNEL, AS DEFINED IN
 16 NYCRR 895.4; AND/OR
   (B) OPERATING AND ADMINISTERING EDUCATIONAL AND/OR GOVERNMENTAL ACCESS
 CHANNELS, AS DEFINED IN 16 NYCRR 895.4;
   4. "SUBSCRIBER" OR "CUSTOMER" MEANS ANY PERSON OR MEMBER OF THE GENER-
 AL PUBLIC WHO RECEIVES  DIRECT  BROADCAST  SATELLITE  SERVICE  OR  VIDEO
 STREAMING  SERVICE FROM A DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR
 VIDEO STREAMING SERVICE PROVIDER AND DOES NOT  FURTHER  DISTRIBUTE  SUCH
 SERVICE IN THE ORDINARY COURSE OF BUSINESS;
   5.  "DIRECT  BROADCAST  SATELLITE  SERVICE"  MEANS THE DISTRIBUTION OR
 BROADCASTING BY SATELLITE OF VIDEO PROGRAMMING OR SERVICES  DIRECTLY  TO
 RECEIVING  EQUIPMENT  LOCATED AT AN END USER SUBSCRIBER'S OR AN END USER
 CUSTOMER'S PREMISES, INCLUDING, BUT NOT LIMITED  TO,  THE  PROVISION  OF
 PREMIUM  CHANNELS,  THE  PROVISION  OF  MUSIC OR OTHER AUDIO SERVICES OR
 CHANNELS,  AND  ANY  OTHER  SERVICE  RECEIVED  IN  CONNECTION  WITH  THE
 PROVISION OF DIRECT BROADCAST SATELLITE SERVICE;
   6.  "DIRECT  BROADCAST  SATELLITE SERVICE PROVIDER" MEANS A PERSON WHO
 TRANSMITS, BROADCASTS OR OTHERWISE PROVIDES DIRECT  BROADCAST  SATELLITE
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE;
   7. "VIDEO STREAMING SERVICE" MEANS THE DISTRIBUTION OR BROADCASTING OF
 VIDEO  PROGRAMMING  DISPLAYED  BY THE VIEWER FOR A FEE ON A SUBSCRIPTION
 BASIS. THE TERM  VIDEO  STREAMING  SERVICE,  UNLESS  EXPRESSLY  PROVIDED
 OTHERWISE,  DOES  NOT  INCLUDE  CABLE  SERVICE AS DEFINED BY 47 U.S.C. §
 522(6);
   8. "VIDEO STREAMING SERVICE PROVIDER" MEANS A  PERSON  WHO  TRANSMITS,
 BROADCASTS  OR OTHERWISE PROVIDES VIDEO STREAMING SERVICE TO SUBSCRIBERS
 OR CUSTOMERS IN THE STATE;
   9. "VIDEO PROGRAMMING" MEANS PROGRAMMING PROVIDED BY, OR COMPARABLE TO
 PROGRAMMING PROVIDED BY, A TELEVISION BROADCAST STATION  INCLUDING,  BUT
 NOT  LIMITED  TO, VIDEO PROGRAMMING PROVIDED BY LOCAL NETWORKS, NATIONAL
 BROADCAST NETWORKS, CABLE TELEVISION NETWORKS AND ALL FORMS OF  PAY-PER-
 VIEW OR ON-DEMAND VIDEO ENTERTAINMENT; AND
   10.  "GROSS  RECEIPTS"  MEANS  ALL CONSIDERATION OF ANY KIND OR NATURE
 RECEIVED BY A DIRECT  BROADCAST  SATELLITE  SERVICE  PROVIDER  OR  VIDEO
 STREAMING   SERVICE  PROVIDER,  OR  AN  AFFILIATE  OF  SUCH  PERSON,  IN
 CONNECTION WITH THE PROVISION, DELIVERY, OR FURNISHING OF DIRECT  BROAD-
 CAST  SATELLITE  SERVICE  OR  VIDEO  STREAMING SERVICE TO SUBSCRIBERS OR
 CUSTOMERS WITHIN  THE  STATE,  DETERMINED  ACCORDING  TO  THE  HIERARCHY
 DESCRIBED  IN  SECTION THREE HUNDRED THIRTY-ONE OF THIS ARTICLE.  "GROSS
 RECEIPTS" SHALL NOT INCLUDE:
   (A) REVENUE NOT ACTUALLY RECEIVED, REGARDLESS OF WHETHER IT IS BILLED,
 INCLUDING, BUT NOT LIMITED TO, BAD DEBTS;
   (B) REVENUE RECEIVED BY AN AFFILIATE OR OTHER PERSON IN  EXCHANGE  FOR
 SUPPLYING GOODS AND SERVICES TO AN AFFILIATED DIRECT BROADCAST SATELLITE
 SERVICE PROVIDER OR AFFILIATED VIDEO STREAMING SERVICE PROVIDER;
   (C) REFUNDS, REBATES OR DISCOUNTS MADE TO SUBSCRIBERS OR CUSTOMERS, TO
 ADVERTISERS OR TO OTHER PERSONS;
   (D)  REVENUE FROM TELECOMMUNICATIONS SERVICE AS DEFINED IN 47 U.S.C. §
 153(53);
 S. 2581                             3
 
   (E) REVENUE FROM ANY SERVICE THAT IS  SUBJECT  TO  TAX  UNDER  ARTICLE
 TWENTY-EIGHT OF THIS CHAPTER;
   (F)  REVENUE  FROM THE SALE OF CAPITAL ASSETS OR SURPLUS EQUIPMENT NOT
 USED BY THE PURCHASER TO RECEIVE DIRECT BROADCAST SATELLITE  SERVICE  OR
 VIDEO  STREAMING  SERVICE  FROM  THE  DIRECT BROADCAST SATELLITE SERVICE
 PROVIDER OR VIDEO STREAMING SERVICE PROVIDER;
   (G) REIMBURSEMENTS MADE BY PROGRAMMERS TO THE DIRECT BROADCAST  SATEL-
 LITE  SERVICE PROVIDER OR VIDEO STREAMING SERVICE PROVIDER FOR MARKETING
 COSTS INCURRED BY SUCH SERVICE PROVIDER  FOR  THE  INTRODUCTION  OF  NEW
 PROGRAMMING;
   (H) LATE PAYMENT FEES COLLECTED FROM SUBSCRIBERS OR CUSTOMERS; OR
   (I)  CHARGES,  OTHER  THAN  CHARGES  FOR  DIRECT  BROADCAST  SATELLITE
 SERVICES OR VIDEO STREAMING SERVICES, THAT  ARE  AGGREGATED  OR  BUNDLED
 WITH  DIRECT BROADCAST SATELLITE SERVICES OR VIDEO STREAMING SERVICES ON
 A SUBSCRIBER'S OR CUSTOMER'S BILL, IF  THE  DIRECT  BROADCAST  SATELLITE
 SERVICE  PROVIDER OR VIDEO STREAMING SERVICE PROVIDER CAN REASONABLY AND
 SEPARATELY IDENTIFY THE CHARGES IN ITS BOOKS AND  RECORDS  KEPT  IN  THE
 REGULAR COURSE OF BUSINESS.
   §  331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROADCAST
 SATELLITE SERVICES AND VIDEO STREAMING  SERVICES.  1.  THERE  IS  HEREBY
 IMPOSED  AN  EXCISE  TAX  ON  THE  PROVISION, DELIVERY, OR FURNISHING OF
 DIRECT BROADCAST SATELLITE  SERVICES  OR  VIDEO  STREAMING  SERVICES  BY
 DIRECT  BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAMING SERVICE
 PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   2.(A) DIRECT BROADCAST SATELLITE SERVICE PROVIDERS AND VIDEO STREAMING
 SERVICE PROVIDERS SHALL PAY AN ASSESSMENT EQUAL TO FIVE PERCENT OF  SUCH
 PROVIDER'S GROSS RECEIPTS DERIVED IN OR FROM THE PROVISION, DELIVERY, OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   (B) GROSS RECEIPTS DERIVED IN OR  FROM  THE  PROVISION,  DELIVERY,  OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE BY DIRECT BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAM-
 ING SERVICE PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE SHALL  BE
 DETERMINED  BY  THE HIERARCHY OF SOURCING METHODS SET FORTH IN PARAGRAPH
 (C) OF THIS SUBDIVISION. THE DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 OR VIDEO STREAMING SERVICE PROVIDER SHALL EXERCISE DUE  DILIGENCE  UNDER
 EACH  METHOD  DESCRIBED  IN  PARAGRAPH  (C)  OF  THIS SUBDIVISION BEFORE
 REJECTING IT AND PROCEEDING TO THE NEXT METHOD  IN  THE  HIERARCHY,  AND
 SHALL  BASE  ITS DETERMINATION ON INFORMATION KNOWN TO IT OR INFORMATION
 THAT WOULD BE KNOWN TO IT UPON REASONABLE INQUIRY.
   (C) HIERARCHY OF SOURCING METHODS:
   (I) THE CUSTOMER'S PRIMARY USE LOCATION OF THE DIRECT BROADCAST SATEL-
 LITE SERVICE OR VIDEO STREAMING SERVICE; AND
   (II) THE CUSTOMER'S BILLING ADDRESS.
   3. THE TAX AUTHORIZED IN THIS SECTION SHALL BE FOR EACH YEAR, OR  PART
 OF  EACH  YEAR, THAT SUCH DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR
 VIDEO STREAMING SERVICE PROVIDER IS ENGAGED IN THE SALE OF DIRECT BROAD-
 CAST SATELLITE OR VIDEO STREAMING SERVICES TO SUBSCRIBERS  OR  CUSTOMERS
 IN THE STATE.
   4.  (A) EVERY DIRECT BROADCAST SATELLITE SERVICE PROVIDER AND/OR VIDEO
 STREAMING SERVICE PROVIDER SUBJECT TO TAX UNDER THIS SECTION  SHALL  (I)
 FILE,  ON  OR  BEFORE  APRIL  FIFTEENTH  OF EACH YEAR, FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, A  RETURN
 FOR  THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, AND (II) PAY
 THE TAX DUE, WHICH RETURN SHALL STATE THE GROSS RECEIPTS FOR THE  PERIOD
 COVERED BY EACH SUCH RETURN.
 S. 2581                             4
 
   (B)  RETURNS  SHALL  BE  FILED  WITH  THE COMMISSIONER ON A FORM TO BE
 FURNISHED BY THE COMMISSIONER FOR SUCH PURPOSE AND  SHALL  CONTAIN  SUCH
 OTHER  DATA, INFORMATION OR MATTER AS THE COMMISSIONER MAY REQUIRE TO BE
 INCLUDED THEREIN.
   (C)  NOTWITHSTANDING  PARAGRAPHS  (A) AND (B) OF THIS SUBDIVISION, THE
 COMMISSIONER MAY REQUIRE ANY DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 AND/OR VIDEO STREAMING SERVICE PROVIDER TO FILE AN ANNUAL RETURN,  WHICH
 SHALL  CONTAIN  ANY  DATA  SPECIFIED  BY THE COMMISSIONER, REGARDLESS OF
 WHETHER SUCH PROVIDER IS SUBJECT TO TAX UNDER THIS SECTION.
   5. (A) A DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR VIDEO  STREAM-
 ING SERVICE PROVIDER WHO FAILS TO FILE A RETURN OR TO PAY ANY TAX WITHIN
 THIRTY  DAYS  OF  THE TIME REQUIRED PURSUANT TO THIS ARTICLE (DETERMINED
 WITH REGARD TO ANY EXTENSION OF TIME FOR  FILING  OR  PAYING)  SHALL  BE
 SUBJECT  TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF THE TAX DETERMINED
 TO BE DUE, PLUS FIVE PERCENT OF SUCH AMOUNT FOR EACH SUBSEQUENT MONTH OR
 FRACTION THEREOF DURING WHICH SUCH  FAILURE  CONTINUES,  NOT  TO  EXCEED
 THIRTY PERCENT IN THE AGGREGATE.
   (B)  IN THE EVENT OF AN UNDERPAYMENT OF THE TAX OWED, THE COMMISSIONER
 SHALL SET THE UNDERPAYMENT RATE OF INTEREST TO BE PAID, BUT  THE  UNDER-
 PAYMENT  RATE  SHALL  NOT  BE  LESS  THAN SEVEN AND ONE-HALF PERCENT PER
 ANNUM, COMPOUNDED DAILY. IF NO SUCH RATE OF INTEREST IS SET, SUCH UNDER-
 PAYMENT RATE SHALL BE DEEMED TO BE SET AT SEVEN AND ONE-HALF PERCENT PER
 ANNUM, COMPOUNDED DAILY. ANY SUCH RATE SET  BY  THE  COMMISSIONER  SHALL
 APPLY  TO  TAXES,  OR ANY PORTION THEREOF, WHICH REMAIN OR BECOME DUE OR
 UNDERPAID ON OR AFTER THE DATE ON WHICH SUCH RATES BECOME EFFECTIVE  AND
 SHALL  APPLY  ONLY  WITH  RESPECT TO INTEREST COMPUTED OR COMPUTABLE FOR
 PERIODS OR PORTIONS OF PERIODS OCCURRING IN THE PERIOD DURING WHICH SUCH
 RATES ARE IN EFFECT.
   6. EVERY DIRECT BROADCAST  SATELLITE  SERVICE  PROVIDER  AND/OR  VIDEO
 STREAMING  SERVICE PROVIDER SUBJECT TO TAX UNDER THIS SECTION SHALL KEEP
 SUCH RECORDS OF ITS BUSINESS AND IN SUCH FORM AS  THE  COMMISSIONER  MAY
 REQUIRE,  AND  SUCH  RECORDS  SHALL  BE  PRESERVED FOR A PERIOD OF THREE
 YEARS, EXCEPT THAT THE COMMISSIONER MAY  CONSENT  TO  THEIR  DESTRUCTION
 WITHIN THAT PERIOD OR MAY REQUIRE THAT THEY BE KEPT LONGER.
   §  3. The state finance law is amended by adding a new section 99-m to
 read as follows:
   § 99-M. COMMUNITY MEDIA REINVESTMENT FUND. 1. THERE IS  HEREBY  ESTAB-
 LISHED  IN  THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF
 TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "COMMUNITY  MEDIA
 REINVESTMENT FUND".
   2.(A)  ALL  MONIES  RECEIVED BY THE COMPTROLLER OR THE COMMISSIONER OF
 TAXATION AND FINANCE FOR THE PURPOSE OF THIS  FUND  SHALL  BE  DEPOSITED
 THEREIN.  NO  MONIES  MAY  BE TRANSFERRED FROM THIS ACCOUNT TO ANY OTHER
 ACCOUNT EXCEPT BY AUTHORITY OF THE COMMISSIONER OF TAXATION AND FINANCE.
   (B) SUCH FUND SHALL CONSIST OF THE REVENUE COLLECTED PURSUANT TO ARTI-
 CLE FIFTEEN OF THE TAX LAW AND ANY OTHER REVENUES COLLECTED BY OR APPRO-
 PRIATED TO THE FUND PURSUANT TO ANY OTHER LAW.
   3.(A) THE COMMISSIONER  OF  TAXATION  AND  FINANCE  IS  AUTHORIZED  TO
 UTILIZE  THE  MONIES  IN  THE  COMMUNITY  MEDIA  REINVESTMENT  FUND, FOR
 DISTRIBUTION TO THE STATE, MUNICIPALITIES, AND COMMUNITY MEDIA ORGANIZA-
 TIONS IN PROPORTIONS AS PROVIDED IN PARAGRAPH (B) OF  THIS  SUBDIVISION,
 PROVIDED  HOWEVER, THAT THE COMMISSIONER MAY RETAIN UP TO TEN PERCENT OF
 THE MONIES IN THE FUND ANNUALLY FOR OPERATIONAL EXPENDITURES.
   (B) THE COMMISSIONER OF TAXATION AND FINANCE SHALL  ANNUALLY  DISTRIB-
 UTE, WITH NO REMAINDER LEFT, ALL MONIES THEN HELD IN THE COMMUNITY MEDIA
 REINVESTMENT FUND ACCORDING TO THE FOLLOWING FORMULA:
 S. 2581                             5
 
   (I)  ONE-FIFTH  OF THE MONIES IN THE FUND, LESS THE MONIES RETAINED BY
 THE COMMISSIONER FOR OPERATIONAL EXPENDITURES, SHALL BE  DISTRIBUTED  TO
 THE STATE GENERAL FUND;
   (II) TWO-FIFTHS OF THE MONIES IN THE FUND SHALL BE DISTRIBUTED DIRECT-
 LY  TO MUNICIPALITIES IN THE STATE, AND FURTHER ALLOCATED PROPORTIONALLY
 BASED UPON THE POPULATION OF SUCH MUNICIPALITIES;
   (III) TWO-FIFTHS OF THE  MONIES  IN  THE  FUND  SHALL  BE  DISTRIBUTED
 DIRECTLY  TO  IDENTIFIED COMMUNITY MEDIA ORGANIZATIONS IN THE STATE, OR,
 IF NO COMMUNITY MEDIA ORGANIZATION HAS BEEN IDENTIFIED IN A GIVEN  MUNI-
 CIPALITY, TO THE ORGANIZATION OR ORGANIZATIONS SERVING THAT MUNICIPALITY
 IDENTIFIED BY THE NEW YORK STATE COUNCIL ON THE ARTS TO RECEIVE DISTRIB-
 UTIONS  FROM THE FUND, AND FURTHER ALLOCATED PROPORTIONALLY BASED ON THE
 POPULATION OF THE MUNICIPALITY OR MUNICIPALITIES  SERVED  BY  EACH  SUCH
 IDENTIFIED ORGANIZATION.
   4.  THE  COMMISSIONER  OF  TAXATION AND FINANCE SHALL PROMULGATE REGU-
 LATIONS BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-THREE TO ESTABLISH
 PROCEDURES FOR IDENTIFYING, ON AN  ANNUAL  BASIS,  (A)  COMMUNITY  MEDIA
 ORGANIZATIONS ELIGIBLE TO RECEIVE MONIES DISTRIBUTED PURSUANT TO SUBPAR-
 AGRAPH  (III) OF PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION; AND
 (B) IN THE EVENT THAT NO COMMUNITY MEDIA ORGANIZATION HAS  BEEN  IDENTI-
 FIED  IN  A  GIVEN  MUNICIPALITY, THE ORGANIZATIONS SERVING THAT MUNICI-
 PALITY IDENTIFIED BY THE NEW YORK STATE COUNCIL ON THE ARTS, ELIGIBLE TO
 RECEIVE MONIES DISTRIBUTED PURSUANT TO SUBPARAGRAPH (III)  OF  PARAGRAPH
 (B)  OF  SUBDIVISION  THREE  OF  THIS SECTION. NOTWITHSTANDING ANY OTHER
 PROVISIONS TO THE CONTRARY IN THE NEW YORK STATE  ADMINISTRATIVE  PROCE-
 DURE  ACT  (SAPA), SUCH RULES AND REGULATIONS MAY BE ADOPTED ON AN EMER-
 GENCY BASIS IF NECESSARY TO MEET SUCH DECEMBER THIRTY-FIRST,  TWO  THOU-
 SAND TWENTY-THREE DEADLINE.
   5. ALL PAYMENTS OF MONIES FROM THE FUND SHALL BE MADE ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER.
   § 4. This act shall take effect immediately and apply to taxable years
 beginning on and after January 1, 2024.

co-Sponsors

View additional co-sponsors

2023-S2581A - Details

See Assembly Version of this Bill:: A5900
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add Art 15 §§330 & 331, Tax L; add §99-m, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S9254

2023-S2581A - Summary

2023-S2581A - Sponsor Memo

                                 
BILL NUMBER: S2581A

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax on direct
broadcast satellite services and video streaming services; and to amend
the state finance law, in relation to establishing the community media
reinvestment fund

 
PURPOSE::

Establishes a tax on direct broadcast satellite services and video
streaming services and establishes the community media reinvestment
fund.

 
SUMMARY OF SPECIFIC PROVISIONS::

Section 1 states that this act shall be known and may be cited as the
"community media reinvestment act".

Section 2 amends the tax law by adding a new article 15 setting forth

the definitions for the article and imposes an excise tax on direct
broadcast satellite services or video streaming service providers.

Section 3 amends the state finance law by adding a new section 99-m.
Establishes, in joint custody of the comptroller and commission of taxa-
tion and finance, the "Community media reinvestment fund".

Section 4 sets forth the effective date.

 
JUSTIFICATION::

The legislation will ensure that, as video programming viewership
expands and migrates from traditional cable services to satellite and
video streaming services, that migration does not result in reduced
support for and investment in local video programming responsive to the
unique needs and interests of New Yorkers, including public, educa-
tional, or governmental access television programming.

The Community Media Reinvestment Act will impose an excise tax on enti-
ties providing (1) direct broadcast satellite service or (2) video
streaming services other than cable service (as defined by the federal
Cable Act) to customers or subscribers in New York State.  This excise
tax-which mirrors the 5% franchise fee imposed on cable television oper-
ators-consists of a 5% tax on the gross receipts that direct broadcast
satellite service providers or video streaming service providers derive
from providing video programming to New Yorkers.

The Act also creates a Community Media Reinvestment Fund, in the joint
custody of the Commissioner of Taxation and Finance and the Comptroller,
where the revenue collected from this tax will be deposited. The Commis-
sioner may retain up to 10% of the money in the fund, each year, for
operating expenses.

The money collected in the Community Media Reinvestment Fund will
disburse 20% of revenues collected-less operating expenses-to the State
General Fund; 40% of revenues to municipalities in the state; and 40% of
revenues to entities responsible for operating and administering public,
educational, and/or governmental access channels in the state ("communi-
ty media centers").

As gathered from the research directed by NYCAM, taxing digital media
goods and services would generate at least $250-500 million annually in
new tax revenues for New York immediately.

 
LEGISLATIVE HISTORY::

2021/22: S9254 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

 
FISCAL IMPLICATIONS::

 
EFFECTIVE DATE::

This act shall take effect immediately and apply to taxable years begin-
ning on and after January 1, 2024.

2023-S2581A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2581--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced  by  Sens. PARKER, BORRELLO, CLEARE, COMRIE, FERNANDEZ, JACK-
   SON, LIU, MAYER, SANDERS, SEPULVEDA -- read twice and ordered printed,
   and when printed to be committed to the  Committee  on  Investigations
   and  Government Operations -- recommitted to the Committee on Investi-
   gations and Government Operations in accordance with  Senate  Rule  6,
   sec.  8  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to establishing a tax on direct
   broadcast satellite services and  video  streaming  services;  and  to
   amend the state finance law, in relation to establishing the community
   media reinvestment fund
 
   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 "community media reinvestment act".
   §  2.  The  tax  law  is amended by adding a new article 15 to read as
 follows:
                                 ARTICLE 15
                     COMMUNITY MEDIA REINVESTMENT ACT
 SECTION 330. DEFINITIONS.
         331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROAD-
                CAST SATELLITE SERVICES AND VIDEO STREAMING SERVICES.
   § 330. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "MUNICIPALITY" MEANS ANY VILLAGE, TOWN, CITY, OR COUNTY NOT WHOLLY
 CONTAINED WITHIN A CITY IN THE STATE OF NEW YORK;
   2. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY, TRUST OR ASSOCIATION, WITH OR WITHOUT  TRANSFERABLE  SHARES,  JOINT-
 STOCK  COMPANY,  CORPORATION,  SOCIETY, CLUB, ORGANIZATION, INSTITUTION,
 ESTATE, RECEIVER, TRUSTEE, ASSIGNEE OR  REFEREE  AND  ANY  OTHER  PERSON
 ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06297-03-3

 S. 2581--A                          2
 
 COURT OR OTHERWISE, AND ANY COMBINATION OF INDIVIDUALS ACTING AS A UNIT.
 THE  TERM  "PERSON",  UNLESS  EXPRESSLY  PROVIDED  OTHERWISE,  DOES  NOT
 INCLUDE:
   (A)  A  GOVERNMENTAL  ENTITY OR A UNIT OR INSTRUMENTALITY OF A GOVERN-
 MENTAL ENTITY; OR
   (B) ANY ENTITY EXEMPT FROM SALES AND COMPENSATING USE  TAXES  PURSUANT
 TO  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED SIXTEEN
 OF THIS CHAPTER;
   3. "COMMUNITY MEDIA ORGANIZATION" MEANS AN ENTITY THAT IS  RESPONSIBLE
 FOR:
   (A) OPERATING AND ADMINISTERING A PUBLIC ACCESS CHANNEL, AS DEFINED IN
 16 NYCRR 895.4; AND/OR
   (B) OPERATING AND ADMINISTERING EDUCATIONAL AND/OR GOVERNMENTAL ACCESS
 CHANNELS, AS DEFINED IN 16 NYCRR 895.4;
   4. "SUBSCRIBER" OR "CUSTOMER" MEANS ANY PERSON OR MEMBER OF THE GENER-
 AL  PUBLIC  WHO  RECEIVES  DIRECT  BROADCAST  SATELLITE SERVICE OR VIDEO
 STREAMING SERVICE FROM A DIRECT BROADCAST SATELLITE SERVICE PROVIDER  OR
 VIDEO  STREAMING  SERVICE  PROVIDER AND DOES NOT FURTHER DISTRIBUTE SUCH
 SERVICE IN THE ORDINARY COURSE OF BUSINESS;
   5. "DIRECT BROADCAST SATELLITE  SERVICE"  MEANS  THE  DISTRIBUTION  OR
 BROADCASTING  BY  SATELLITE OF VIDEO PROGRAMMING OR SERVICES DIRECTLY TO
 RECEIVING EQUIPMENT LOCATED AT AN END USER SUBSCRIBER'S OR AN  END  USER
 CUSTOMER'S  PREMISES,  INCLUDING,  BUT  NOT LIMITED TO, THE PROVISION OF
 PREMIUM CHANNELS, THE PROVISION OF MUSIC  OR  OTHER  AUDIO  SERVICES  OR
 CHANNELS,  AND  ANY  OTHER  SERVICE  RECEIVED  IN  CONNECTION  WITH  THE
 PROVISION OF DIRECT BROADCAST SATELLITE SERVICE;
   6. "DIRECT BROADCAST SATELLITE SERVICE PROVIDER" MEANS  A  PERSON  WHO
 TRANSMITS,  BROADCASTS  OR OTHERWISE PROVIDES DIRECT BROADCAST SATELLITE
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE;
   7. "VIDEO STREAMING SERVICE" MEANS THE DISTRIBUTION OR BROADCASTING OF
 VIDEO PROGRAMMING DISPLAYED BY THE VIEWER FOR A FEE  ON  A  SUBSCRIPTION
 BASIS.  THE  TERM  VIDEO  STREAMING  SERVICE,  UNLESS EXPRESSLY PROVIDED
 OTHERWISE, DOES NOT INCLUDE CABLE SERVICE AS  DEFINED  BY  47  U.S.C.  §
 522(6);
   8.  "VIDEO  STREAMING  SERVICE PROVIDER" MEANS A PERSON WHO TRANSMITS,
 BROADCASTS OR OTHERWISE PROVIDES VIDEO STREAMING SERVICE TO  SUBSCRIBERS
 OR CUSTOMERS IN THE STATE;
   9. "VIDEO PROGRAMMING" MEANS PROGRAMMING PROVIDED BY, OR COMPARABLE TO
 PROGRAMMING  PROVIDED  BY, A TELEVISION BROADCAST STATION INCLUDING, BUT
 NOT LIMITED TO, VIDEO PROGRAMMING PROVIDED BY LOCAL  NETWORKS,  NATIONAL
 BROADCAST  NETWORKS, CABLE TELEVISION NETWORKS AND ALL FORMS OF PAY-PER-
 VIEW OR ON-DEMAND VIDEO ENTERTAINMENT; AND
   10. "GROSS RECEIPTS" MEANS ALL CONSIDERATION OF  ANY  KIND  OR  NATURE
 RECEIVED  BY  A  DIRECT  BROADCAST  SATELLITE  SERVICE PROVIDER OR VIDEO
 STREAMING  SERVICE  PROVIDER,  OR  AN  AFFILIATE  OF  SUCH  PERSON,   IN
 CONNECTION  WITH THE PROVISION, DELIVERY, OR FURNISHING OF DIRECT BROAD-
 CAST SATELLITE SERVICE OR VIDEO  STREAMING  SERVICE  TO  SUBSCRIBERS  OR
 CUSTOMERS  WITHIN  THE  STATE,  DETERMINED  ACCORDING  TO  THE HIERARCHY
 DESCRIBED IN SECTION THREE HUNDRED THIRTY-ONE OF THIS ARTICLE.    "GROSS
 RECEIPTS" SHALL NOT INCLUDE:
   (A) REVENUE NOT ACTUALLY RECEIVED, REGARDLESS OF WHETHER IT IS BILLED,
 INCLUDING, BUT NOT LIMITED TO, BAD DEBTS;
   (B)  REVENUE  RECEIVED BY AN AFFILIATE OR OTHER PERSON IN EXCHANGE FOR
 SUPPLYING GOODS AND SERVICES TO AN AFFILIATED DIRECT BROADCAST SATELLITE
 SERVICE PROVIDER OR AFFILIATED VIDEO STREAMING SERVICE PROVIDER;
 S. 2581--A                          3
 
   (C) REFUNDS, REBATES OR DISCOUNTS MADE TO SUBSCRIBERS OR CUSTOMERS, TO
 ADVERTISERS OR TO OTHER PERSONS;
   (D)  REVENUE FROM TELECOMMUNICATIONS SERVICE AS DEFINED IN 47 U.S.C. §
 153(53). UNDER NO CIRCUMSTANCES SHALL DIRECT BROADCAST SATELLITE PROVID-
 ERS OR VIDEO STREAMING SERVICE PROVIDERS  SUBJECT  TO  THE  TAX  IMPOSED
 PURSUANT  TO  THIS  ARTICLE INCLUDE THE AMOUNT OF SUCH TAX ON BILLS AS A
 PASS-THROUGH TO CUSTOMERS. IT SHALL BE THE RESPONSIBILITY OF EACH DIRECT
 BROADCAST SATELLITE SERVICE PROVIDER AND EACH  VIDEO  STREAMING  SERVICE
 PROVIDER  SUBJECT TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE TO PAY ITS
 REQUIRED TAXES TO THE STATE AND PROVIDERS SHALL NOT MISLEAD THE CUSTOMER
 TO THINK OTHERWISE;
   (E) REVENUE FROM ANY SERVICE THAT IS  SUBJECT  TO  TAX  UNDER  ARTICLE
 TWENTY-EIGHT OF THIS CHAPTER;
   (F)  REVENUE  FROM THE SALE OF CAPITAL ASSETS OR SURPLUS EQUIPMENT NOT
 USED BY THE PURCHASER TO RECEIVE DIRECT BROADCAST SATELLITE  SERVICE  OR
 VIDEO  STREAMING  SERVICE  FROM  THE  DIRECT BROADCAST SATELLITE SERVICE
 PROVIDER OR VIDEO STREAMING SERVICE PROVIDER;
   (G) REIMBURSEMENTS MADE BY PROGRAMMERS TO THE DIRECT BROADCAST  SATEL-
 LITE  SERVICE PROVIDER OR VIDEO STREAMING SERVICE PROVIDER FOR MARKETING
 COSTS INCURRED BY SUCH SERVICE PROVIDER  FOR  THE  INTRODUCTION  OF  NEW
 PROGRAMMING;
   (H) LATE PAYMENT FEES COLLECTED FROM SUBSCRIBERS OR CUSTOMERS; OR
   (I)  CHARGES,  OTHER  THAN  CHARGES  FOR  DIRECT  BROADCAST  SATELLITE
 SERVICES OR VIDEO STREAMING SERVICES, THAT  ARE  AGGREGATED  OR  BUNDLED
 WITH  DIRECT BROADCAST SATELLITE SERVICES OR VIDEO STREAMING SERVICES ON
 A SUBSCRIBER'S OR CUSTOMER'S BILL, IF  THE  DIRECT  BROADCAST  SATELLITE
 SERVICE  PROVIDER OR VIDEO STREAMING SERVICE PROVIDER CAN REASONABLY AND
 SEPARATELY IDENTIFY THE CHARGES IN ITS BOOKS AND  RECORDS  KEPT  IN  THE
 REGULAR COURSE OF BUSINESS.
   §  331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROADCAST
 SATELLITE SERVICES AND VIDEO STREAMING  SERVICES.  1.  THERE  IS  HEREBY
 IMPOSED  AN  EXCISE  TAX  ON  THE  PROVISION, DELIVERY, OR FURNISHING OF
 DIRECT BROADCAST SATELLITE  SERVICES  OR  VIDEO  STREAMING  SERVICES  BY
 DIRECT  BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAMING SERVICE
 PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   2.(A) DIRECT BROADCAST SATELLITE SERVICE PROVIDERS AND VIDEO STREAMING
 SERVICE PROVIDERS SHALL PAY AN ASSESSMENT EQUAL TO FIVE PERCENT OF  SUCH
 PROVIDER'S GROSS RECEIPTS DERIVED IN OR FROM THE PROVISION, DELIVERY, OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   (B) GROSS RECEIPTS DERIVED IN OR  FROM  THE  PROVISION,  DELIVERY,  OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE BY DIRECT BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAM-
 ING SERVICE PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE SHALL  BE
 DETERMINED  BY  THE HIERARCHY OF SOURCING METHODS SET FORTH IN PARAGRAPH
 (C) OF THIS SUBDIVISION. THE DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 OR VIDEO STREAMING SERVICE PROVIDER SHALL EXERCISE DUE  DILIGENCE  UNDER
 EACH  METHOD  DESCRIBED  IN  PARAGRAPH  (C)  OF  THIS SUBDIVISION BEFORE
 REJECTING IT AND PROCEEDING TO THE NEXT METHOD  IN  THE  HIERARCHY,  AND
 SHALL  BASE  ITS DETERMINATION ON INFORMATION KNOWN TO IT OR INFORMATION
 THAT WOULD BE KNOWN TO IT UPON REASONABLE INQUIRY.
   (C) HIERARCHY OF SOURCING METHODS:
   (I) THE CUSTOMER'S PRIMARY USE LOCATION OF THE DIRECT BROADCAST SATEL-
 LITE SERVICE OR VIDEO STREAMING SERVICE; AND
   (II) THE CUSTOMER'S BILLING ADDRESS.
 S. 2581--A                          4
 
   3. THE TAX AUTHORIZED IN THIS SECTION SHALL BE FOR EACH YEAR, OR  PART
 OF  EACH  YEAR, THAT SUCH DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR
 VIDEO STREAMING SERVICE PROVIDER IS ENGAGED IN THE SALE OF DIRECT BROAD-
 CAST SATELLITE OR VIDEO STREAMING SERVICES TO SUBSCRIBERS  OR  CUSTOMERS
 IN THE STATE.
   4.  (A) EVERY DIRECT BROADCAST SATELLITE SERVICE PROVIDER AND/OR VIDEO
 STREAMING SERVICE PROVIDER SUBJECT TO TAX UNDER THIS SECTION  SHALL  (I)
 FILE,  ON  OR  BEFORE  APRIL  FIFTEENTH  OF EACH YEAR, FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, A  RETURN
 FOR  THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, AND (II) PAY
 THE TAX DUE, WHICH RETURN SHALL STATE THE GROSS RECEIPTS FOR THE  PERIOD
 COVERED BY EACH SUCH RETURN.
   (B)  RETURNS  SHALL  BE  FILED  WITH  THE COMMISSIONER ON A FORM TO BE
 FURNISHED BY THE COMMISSIONER FOR SUCH PURPOSE AND  SHALL  CONTAIN  SUCH
 OTHER  DATA, INFORMATION OR MATTER AS THE COMMISSIONER MAY REQUIRE TO BE
 INCLUDED THEREIN.
   (C) NOTWITHSTANDING PARAGRAPHS (A) AND (B) OF  THIS  SUBDIVISION,  THE
 COMMISSIONER MAY REQUIRE ANY DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 AND/OR  VIDEO STREAMING SERVICE PROVIDER TO FILE AN ANNUAL RETURN, WHICH
 SHALL CONTAIN ANY DATA SPECIFIED  BY  THE  COMMISSIONER,  REGARDLESS  OF
 WHETHER SUCH PROVIDER IS SUBJECT TO TAX UNDER THIS SECTION.
   5.  (A) A DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR VIDEO STREAM-
 ING SERVICE PROVIDER WHO FAILS TO FILE A RETURN OR TO PAY ANY TAX WITHIN
 THIRTY DAYS OF THE TIME REQUIRED PURSUANT TO  THIS  ARTICLE  (DETERMINED
 WITH  REGARD  TO  ANY  EXTENSION  OF TIME FOR FILING OR PAYING) SHALL BE
 SUBJECT TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF THE TAX  DETERMINED
 TO BE DUE, PLUS FIVE PERCENT OF SUCH AMOUNT FOR EACH SUBSEQUENT MONTH OR
 FRACTION  THEREOF  DURING  WHICH  SUCH  FAILURE CONTINUES, NOT TO EXCEED
 THIRTY PERCENT IN THE AGGREGATE.
   (B) IN THE EVENT OF AN UNDERPAYMENT OF THE TAX OWED, THE  COMMISSIONER
 SHALL  SET  THE UNDERPAYMENT RATE OF INTEREST TO BE PAID, BUT THE UNDER-
 PAYMENT RATE SHALL NOT BE LESS  THAN  SEVEN  AND  ONE-HALF  PERCENT  PER
 ANNUM, COMPOUNDED DAILY. IF NO SUCH RATE OF INTEREST IS SET, SUCH UNDER-
 PAYMENT RATE SHALL BE DEEMED TO BE SET AT SEVEN AND ONE-HALF PERCENT PER
 ANNUM,  COMPOUNDED  DAILY.  ANY  SUCH RATE SET BY THE COMMISSIONER SHALL
 APPLY TO TAXES, OR ANY PORTION THEREOF, WHICH REMAIN OR  BECOME  DUE  OR
 UNDERPAID  ON OR AFTER THE DATE ON WHICH SUCH RATES BECOME EFFECTIVE AND
 SHALL APPLY ONLY WITH RESPECT TO INTEREST  COMPUTED  OR  COMPUTABLE  FOR
 PERIODS OR PORTIONS OF PERIODS OCCURRING IN THE PERIOD DURING WHICH SUCH
 RATES ARE IN EFFECT.
   6.  EVERY  DIRECT  BROADCAST  SATELLITE  SERVICE PROVIDER AND/OR VIDEO
 STREAMING SERVICE PROVIDER SUBJECT TO TAX UNDER THIS SECTION SHALL  KEEP
 SUCH  RECORDS  OF  ITS BUSINESS AND IN SUCH FORM AS THE COMMISSIONER MAY
 REQUIRE, AND SUCH RECORDS SHALL BE  PRESERVED  FOR  A  PERIOD  OF  THREE
 YEARS,  EXCEPT  THAT  THE  COMMISSIONER MAY CONSENT TO THEIR DESTRUCTION
 WITHIN THAT PERIOD OR MAY REQUIRE THAT THEY BE KEPT LONGER.
   § 3. The state finance law is amended by adding a new section 99-m  to
 read as follows:
   §  99-M.  COMMUNITY MEDIA REINVESTMENT FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE  COMMISSIONER  OF
 TAXATION  AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "COMMUNITY MEDIA
 REINVESTMENT FUND".
   2.(A) ALL MONIES RECEIVED BY THE COMPTROLLER OR  THE  COMMISSIONER  OF
 TAXATION  AND  FINANCE  FOR  THE PURPOSE OF THIS FUND SHALL BE DEPOSITED
 THEREIN. NO MONIES MAY BE TRANSFERRED FROM THIS  ACCOUNT  TO  ANY  OTHER
 ACCOUNT EXCEPT BY AUTHORITY OF THE COMMISSIONER OF TAXATION AND FINANCE.
 S. 2581--A                          5
 
   (B) SUCH FUND SHALL CONSIST OF THE REVENUE COLLECTED PURSUANT TO ARTI-
 CLE FIFTEEN OF THE TAX LAW AND ANY OTHER REVENUES COLLECTED BY OR APPRO-
 PRIATED TO THE FUND PURSUANT TO ANY OTHER LAW.
   3.(A)  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  IS AUTHORIZED TO
 UTILIZE THE  MONIES  IN  THE  COMMUNITY  MEDIA  REINVESTMENT  FUND,  FOR
 DISTRIBUTION TO THE STATE, MUNICIPALITIES, AND COMMUNITY MEDIA ORGANIZA-
 TIONS IN PROPORTIONS AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR
 IN  ACCORDANCE WITH PARAGRAPH (C) OF THIS SUBDIVISION, PROVIDED HOWEVER,
 THAT THE COMMISSIONER MAY RETAIN UP TO TEN PERCENT OF THE MONIES IN  THE
 FUND ANNUALLY FOR OPERATIONAL EXPENDITURES.
   (B)  THE  COMMISSIONER OF TAXATION AND FINANCE SHALL ANNUALLY DISTRIB-
 UTE, WITH NO REMAINDER LEFT, ALL MONIES THEN HELD IN THE COMMUNITY MEDIA
 REINVESTMENT FUND ACCORDING TO THE FOLLOWING FORMULA:
   (I) ONE-FIFTH OF THE MONIES IN THE FUND, LESS THE MONIES  RETAINED  BY
 THE  COMMISSIONER  FOR OPERATIONAL EXPENDITURES, SHALL BE DISTRIBUTED TO
 THE STATE GENERAL FUND;
   (II) TWO-FIFTHS OF THE MONIES IN THE FUND SHALL BE DISTRIBUTED DIRECT-
 LY TO MUNICIPALITIES IN THE STATE, AND FURTHER ALLOCATED  PROPORTIONALLY
 BASED UPON THE POPULATION OF SUCH MUNICIPALITIES;
   (III)  TWO-FIFTHS  OF  THE  MONIES  IN  THE  FUND SHALL BE DISTRIBUTED
 DIRECTLY TO IDENTIFIED COMMUNITY MEDIA ORGANIZATIONS IN THE  STATE,  OR,
 IF  NO COMMUNITY MEDIA ORGANIZATION HAS BEEN IDENTIFIED IN A GIVEN MUNI-
 CIPALITY, TO THE ORGANIZATION OR ORGANIZATIONS SERVING THAT MUNICIPALITY
 IDENTIFIED BY THE NEW YORK STATE COUNCIL ON THE ARTS TO RECEIVE DISTRIB-
 UTIONS FROM THE FUND, AND FURTHER ALLOCATED PROPORTIONALLY BASED ON  THE
 POPULATION  OF  THE  MUNICIPALITY  OR MUNICIPALITIES SERVED BY EACH SUCH
 IDENTIFIED ORGANIZATION.
   (C) NOTWITHSTANDING PARAGRAPH (B) OF THIS SUBDIVISION,  IN  LOW  POPU-
 LATION DENSITY AREAS WHERE CABLE IS NOT MANDATED, SUCH FUNDS MAY BE USED
 TO  BUILD OUT THE INFRASTRUCTURE NEEDED FOR VIDEO OR AUDIO CONNECTIVITY,
 WHICH MAY INCLUDE BROADBAND, CELLULAR, SATELLITE, OR ANY OTHER MEANS  OF
 CONNECTIVITY APPROPRIATE TO FACILITATE THE ESTABLISHMENT OF THE COMMUNI-
 TY MEDIA OPERATIONS DESIRED IN EACH LOW POPULATION DENSITY AREA.
   4.  THE  COMMISSIONER  OF  TAXATION AND FINANCE SHALL PROMULGATE REGU-
 LATIONS BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-THREE TO ESTABLISH
 PROCEDURES FOR IDENTIFYING, ON AN  ANNUAL  BASIS,  (A)  COMMUNITY  MEDIA
 ORGANIZATIONS ELIGIBLE TO RECEIVE MONIES DISTRIBUTED PURSUANT TO SUBPAR-
 AGRAPH  (III) OF PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION; AND
 (B) IN THE EVENT THAT NO COMMUNITY MEDIA ORGANIZATION HAS  BEEN  IDENTI-
 FIED  IN  A  GIVEN  MUNICIPALITY, THE ORGANIZATIONS SERVING THAT MUNICI-
 PALITY IDENTIFIED BY THE NEW YORK STATE COUNCIL ON THE ARTS, ELIGIBLE TO
 RECEIVE MONIES DISTRIBUTED PURSUANT TO SUBPARAGRAPH (III)  OF  PARAGRAPH
 (B)  OF  SUBDIVISION  THREE  OF  THIS SECTION. NOTWITHSTANDING ANY OTHER
 PROVISIONS TO THE CONTRARY IN THE NEW YORK STATE  ADMINISTRATIVE  PROCE-
 DURE  ACT  (SAPA), SUCH RULES AND REGULATIONS MAY BE ADOPTED ON AN EMER-
 GENCY BASIS IF NECESSARY TO MEET SUCH DECEMBER THIRTY-FIRST,  TWO  THOU-
 SAND TWENTY-THREE DEADLINE.
   5. ALL PAYMENTS OF MONIES FROM THE FUND SHALL BE MADE ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER.
   § 4. This act shall take effect immediately and apply to taxable years
 beginning on and after January 1, 2024.

co-Sponsors

View additional co-sponsors

2023-S2581B (ACTIVE) - Details

See Assembly Version of this Bill:: A5900
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add Art 15 §§330 & 331, Tax L; add §99-m, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S9254

2023-S2581B (ACTIVE) - Summary

2023-S2581B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2581B

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax on direct
broadcast satellite services and video streaming services; and to amend
the state finance law, in relation to establishing the community media
reinvestment fund

 
PURPOSE:

Establishes a tax on direct broadcast satellite services and video
streaming services and establishes the community media reinvestment
fund.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 states that this act shall be known and may be cited as the
"community media reinvestment act".

Section 2 amends the tax law by adding a new article 15 setting forth

the definitions for the article and imposes an excise tax on direct
broadcast satellite services or video streaming service providers.

Section 3 amends the state finance law by adding a new section 99-m.
Establishes, in joint custody of the comptroller and commission of taxa-
tion and finance, the "Community media reinvestment fund".

Section 4 sets forth the effective date.

 
JUSTIFICATION:

The legislation will ensure that, as video programming viewership
expands and migrates from traditional cable services to satellite and
video streaming services, that migration does not result in reduced
support for and investment in local video programming responsive to the
unique needs and interests of New Yorkers, including public, educa-
tional, or governmental access television programming.

The Community Media Reinvestment Act will impose an excise tax on enti-
ties providing (1) direct broadcast satellite service or (2) video
streaming services other than cable service (as defined by the federal
Cable Act) to customers or subscribers in New York State.  This excise
tax-which mirrors the 5% franchise fee imposed on cable television oper-
ators-consists of a 5% tax on the gross receipts that direct broadcast
satellite service providers or video streaming service providers derive
from providing video programming to New Yorkers.

The Act also creates a Community Media Reinvestment Fund, in the joint
custody of the Commissioner of Taxation and Finance and the Comptroller,
where the revenue collected from this tax will be deposited. The Commis-
sioner may retain up to 10% of the money in the fund, each year, for
operating expenses.

The money collected in the Community Media Reinvestment Fund will
disburse 20% of revenues collected-less operating expenses-to the State
General Fund; 40% of revenues to municipalities in the state; and 40% of
revenues to entities responsible for operating and administering public,
educational, and/or governmental access channels in the state ("communi-
ty media centers").

As gathered from the research directed by NYCAM, taxing digital media
goods and services would generate at least $250-500 million annually in
new tax revenues for New York immediately.

 
LEGISLATIVE HISTORY:

2021/22: S9254 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately and apply to taxable years begin-
ning on and after January 1, 2024.

2023-S2581B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2581--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced by Sens. PARKER, BAILEY, BORRELLO, CLEARE, COMRIE, FERNANDEZ,
   GOUNARDES,  JACKSON,  LIU,  MAYER,  MYRIE,  RIVERA,  SALAZAR, SANDERS,
   SEPULVEDA, SERRANO -- read twice and ordered printed, and when printed
   to be committed to the  Committee  on  Investigations  and  Government
   Operations  --  recommitted  to  the  Committee  on Investigations and
   Government Operations in accordance with Senate  Rule  6,  sec.  8  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- committee discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to establishing a tax on direct
   broadcast  satellite  services  and  video  streaming services; and to
   amend the state finance law, in relation to establishing the community
   media reinvestment fund
 
   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 "community media reinvestment act".
   § 2. The tax law is amended by adding a new  article  15  to  read  as
 follows:
                                 ARTICLE 15
                     COMMUNITY MEDIA REINVESTMENT ACT
 SECTION 330. DEFINITIONS.
         331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROAD-
                CAST SATELLITE SERVICES AND VIDEO STREAMING SERVICES.
   §  330.  DEFINITIONS.  FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "MUNICIPALITY" MEANS ANY VILLAGE, TOWN, CITY, OR COUNTY NOT  WHOLLY
 CONTAINED WITHIN A CITY IN THE STATE OF NEW YORK;
   2. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY,  TRUST  OR  ASSOCIATION, WITH OR WITHOUT TRANSFERABLE SHARES, JOINT-
 STOCK COMPANY, CORPORATION, SOCIETY,  CLUB,  ORGANIZATION,  INSTITUTION,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06297-05-4

 S. 2581--B                          2
 
 ESTATE,  RECEIVER,  TRUSTEE,  ASSIGNEE  OR  REFEREE AND ANY OTHER PERSON
 ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A
 COURT OR OTHERWISE, AND ANY COMBINATION OF INDIVIDUALS ACTING AS A UNIT.
 THE  TERM  "PERSON",  UNLESS  EXPRESSLY  PROVIDED  OTHERWISE,  DOES  NOT
 INCLUDE:
   (A) A GOVERNMENTAL ENTITY OR A UNIT OR INSTRUMENTALITY  OF  A  GOVERN-
 MENTAL ENTITY; OR
   (B)  ANY  ENTITY EXEMPT FROM SALES AND COMPENSATING USE TAXES PURSUANT
 TO PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION ELEVEN  HUNDRED  SIXTEEN
 OF THIS CHAPTER;
   3.  "COMMUNITY MEDIA ORGANIZATION" MEANS AN ENTITY THAT IS RESPONSIBLE
 FOR:
   (A) OPERATING AND ADMINISTERING A PUBLIC ACCESS CHANNEL, AS DEFINED IN
 16 NYCRR 895.4; AND/OR
   (B) OPERATING AND ADMINISTERING EDUCATIONAL AND/OR GOVERNMENTAL ACCESS
 CHANNELS, AS DEFINED IN 16 NYCRR 895.4;
   4. "SUBSCRIBER" OR "CUSTOMER" MEANS ANY PERSON OR MEMBER OF THE GENER-
 AL PUBLIC WHO RECEIVES  DIRECT  BROADCAST  SATELLITE  SERVICE  OR  VIDEO
 STREAMING  SERVICE FROM A DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR
 VIDEO STREAMING SERVICE PROVIDER AND DOES NOT  FURTHER  DISTRIBUTE  SUCH
 SERVICE IN THE ORDINARY COURSE OF BUSINESS;
   5.  "DIRECT  BROADCAST  SATELLITE  SERVICE"  MEANS THE DISTRIBUTION OR
 BROADCASTING BY SATELLITE OF VIDEO PROGRAMMING OR SERVICES  DIRECTLY  TO
 RECEIVING  EQUIPMENT  LOCATED AT AN END USER SUBSCRIBER'S OR AN END USER
 CUSTOMER'S PREMISES, INCLUDING, BUT NOT LIMITED  TO,  THE  PROVISION  OF
 PREMIUM  CHANNELS,  THE  PROVISION  OF  MUSIC OR OTHER AUDIO SERVICES OR
 CHANNELS,  AND  ANY  OTHER  SERVICE  RECEIVED  IN  CONNECTION  WITH  THE
 PROVISION OF DIRECT BROADCAST SATELLITE SERVICE;
   6.  "DIRECT  BROADCAST  SATELLITE SERVICE PROVIDER" MEANS A PERSON WHO
 TRANSMITS, BROADCASTS OR OTHERWISE PROVIDES DIRECT  BROADCAST  SATELLITE
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE;
   7. "VIDEO STREAMING SERVICE" MEANS THE DISTRIBUTION OR BROADCASTING OF
 VIDEO  PROGRAMMING  DISPLAYED  BY THE VIEWER FOR A FEE ON A SUBSCRIPTION
 BASIS. THE TERM  VIDEO  STREAMING  SERVICE,  UNLESS  EXPRESSLY  PROVIDED
 OTHERWISE,  DOES  NOT  INCLUDE  CABLE  SERVICE AS DEFINED BY 47 U.S.C. §
 522(6);
   8. "VIDEO STREAMING SERVICE PROVIDER" MEANS A  PERSON  WHO  TRANSMITS,
 BROADCASTS  OR OTHERWISE PROVIDES VIDEO STREAMING SERVICE TO SUBSCRIBERS
 OR CUSTOMERS IN THE STATE;
   9. "VIDEO PROGRAMMING" MEANS PROGRAMMING PROVIDED BY, OR COMPARABLE TO
 PROGRAMMING PROVIDED BY, A TELEVISION BROADCAST STATION  INCLUDING,  BUT
 NOT  LIMITED  TO, VIDEO PROGRAMMING PROVIDED BY LOCAL NETWORKS, NATIONAL
 BROADCAST NETWORKS, CABLE TELEVISION NETWORKS AND ALL FORMS OF  PAY-PER-
 VIEW OR ON-DEMAND VIDEO ENTERTAINMENT; AND
   10.  "GROSS  RECEIPTS"  MEANS  ALL CONSIDERATION OF ANY KIND OR NATURE
 RECEIVED BY A DIRECT  BROADCAST  SATELLITE  SERVICE  PROVIDER  OR  VIDEO
 STREAMING   SERVICE  PROVIDER,  OR  AN  AFFILIATE  OF  SUCH  PERSON,  IN
 CONNECTION WITH THE PROVISION, DELIVERY, OR FURNISHING OF DIRECT  BROAD-
 CAST  SATELLITE  SERVICE  OR  VIDEO  STREAMING SERVICE TO SUBSCRIBERS OR
 CUSTOMERS WITHIN  THE  STATE,  DETERMINED  ACCORDING  TO  THE  HIERARCHY
 DESCRIBED  IN  SECTION THREE HUNDRED THIRTY-ONE OF THIS ARTICLE.  "GROSS
 RECEIPTS" SHALL NOT INCLUDE:
   (A) REVENUE NOT ACTUALLY RECEIVED, REGARDLESS OF WHETHER IT IS BILLED,
 INCLUDING, BUT NOT LIMITED TO, BAD DEBTS;
 S. 2581--B                          3
 
   (B) REVENUE RECEIVED BY AN AFFILIATE OR OTHER PERSON IN  EXCHANGE  FOR
 SUPPLYING GOODS AND SERVICES TO AN AFFILIATED DIRECT BROADCAST SATELLITE
 SERVICE PROVIDER OR AFFILIATED VIDEO STREAMING SERVICE PROVIDER;
   (C) REFUNDS, REBATES OR DISCOUNTS MADE TO SUBSCRIBERS OR CUSTOMERS, TO
 ADVERTISERS OR TO OTHER PERSONS;
   (D)  REVENUE FROM TELECOMMUNICATIONS SERVICE AS DEFINED IN 47 U.S.C. §
 153(53). UNDER NO CIRCUMSTANCES SHALL DIRECT BROADCAST SATELLITE PROVID-
 ERS OR VIDEO STREAMING SERVICE PROVIDERS  SUBJECT  TO  THE  TAX  IMPOSED
 PURSUANT  TO  THIS  ARTICLE INCLUDE THE AMOUNT OF SUCH TAX ON BILLS AS A
 PASS-THROUGH TO CUSTOMERS. IT SHALL BE THE RESPONSIBILITY OF EACH DIRECT
 BROADCAST SATELLITE SERVICE PROVIDER AND EACH  VIDEO  STREAMING  SERVICE
 PROVIDER  SUBJECT TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE TO PAY ITS
 REQUIRED TAXES TO THE STATE AND PROVIDERS SHALL NOT MISLEAD THE CUSTOMER
 TO THINK OTHERWISE;
   (E) REVENUE FROM ANY SERVICE THAT IS  SUBJECT  TO  TAX  UNDER  ARTICLE
 TWENTY-EIGHT OF THIS CHAPTER;
   (F)  REVENUE  FROM THE SALE OF CAPITAL ASSETS OR SURPLUS EQUIPMENT NOT
 USED BY THE PURCHASER TO RECEIVE DIRECT BROADCAST SATELLITE  SERVICE  OR
 VIDEO  STREAMING  SERVICE  FROM  THE  DIRECT BROADCAST SATELLITE SERVICE
 PROVIDER OR VIDEO STREAMING SERVICE PROVIDER;
   (G) REIMBURSEMENTS MADE BY PROGRAMMERS TO THE DIRECT BROADCAST  SATEL-
 LITE  SERVICE PROVIDER OR VIDEO STREAMING SERVICE PROVIDER FOR MARKETING
 COSTS INCURRED BY SUCH SERVICE PROVIDER  FOR  THE  INTRODUCTION  OF  NEW
 PROGRAMMING;
   (H) LATE PAYMENT FEES COLLECTED FROM SUBSCRIBERS OR CUSTOMERS; OR
   (I)  CHARGES,  OTHER  THAN  CHARGES  FOR  DIRECT  BROADCAST  SATELLITE
 SERVICES OR VIDEO STREAMING SERVICES, THAT  ARE  AGGREGATED  OR  BUNDLED
 WITH  DIRECT BROADCAST SATELLITE SERVICES OR VIDEO STREAMING SERVICES ON
 A SUBSCRIBER'S OR CUSTOMER'S BILL, IF  THE  DIRECT  BROADCAST  SATELLITE
 SERVICE  PROVIDER OR VIDEO STREAMING SERVICE PROVIDER CAN REASONABLY AND
 SEPARATELY IDENTIFY THE CHARGES IN ITS BOOKS AND  RECORDS  KEPT  IN  THE
 REGULAR COURSE OF BUSINESS.
   §  331. IMPOSITION AND COLLECTION OF AN ASSESSMENT ON DIRECT BROADCAST
 SATELLITE SERVICES AND VIDEO STREAMING  SERVICES.  1.  THERE  IS  HEREBY
 IMPOSED  AN  EXCISE  TAX  ON  THE  PROVISION, DELIVERY, OR FURNISHING OF
 DIRECT BROADCAST SATELLITE  SERVICES  OR  VIDEO  STREAMING  SERVICES  BY
 DIRECT  BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAMING SERVICE
 PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   2.(A) DIRECT BROADCAST SATELLITE SERVICE PROVIDERS AND VIDEO STREAMING
 SERVICE PROVIDERS SHALL PAY AN ASSESSMENT EQUAL TO FIVE PERCENT OF  SUCH
 PROVIDER'S GROSS RECEIPTS DERIVED IN OR FROM THE PROVISION, DELIVERY, OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE TO SUBSCRIBERS OR CUSTOMERS IN THE STATE.
   (B) GROSS RECEIPTS DERIVED IN OR  FROM  THE  PROVISION,  DELIVERY,  OR
 FURNISHING  OF  DIRECT  BROADCAST  SATELLITE  SERVICE OR VIDEO STREAMING
 SERVICE BY DIRECT BROADCAST SATELLITE SERVICE PROVIDERS OR VIDEO STREAM-
 ING SERVICE PROVIDERS TO SUBSCRIBERS OR CUSTOMERS IN THE STATE SHALL  BE
 DETERMINED  BY  THE HIERARCHY OF SOURCING METHODS SET FORTH IN PARAGRAPH
 (C) OF THIS SUBDIVISION. THE DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 OR VIDEO STREAMING SERVICE PROVIDER SHALL EXERCISE DUE  DILIGENCE  UNDER
 EACH  METHOD  DESCRIBED  IN  PARAGRAPH  (C)  OF  THIS SUBDIVISION BEFORE
 REJECTING IT AND PROCEEDING TO THE NEXT METHOD  IN  THE  HIERARCHY,  AND
 SHALL  BASE  ITS DETERMINATION ON INFORMATION KNOWN TO IT OR INFORMATION
 THAT WOULD BE KNOWN TO IT UPON REASONABLE INQUIRY.
   (C) HIERARCHY OF SOURCING METHODS:
 S. 2581--B                          4
 
   (I) THE CUSTOMER'S PRIMARY USE LOCATION OF THE DIRECT BROADCAST SATEL-
 LITE SERVICE OR VIDEO STREAMING SERVICE; AND
   (II) THE CUSTOMER'S BILLING ADDRESS.
   3.  THE TAX AUTHORIZED IN THIS SECTION SHALL BE FOR EACH YEAR, OR PART
 OF EACH YEAR, THAT SUCH DIRECT BROADCAST SATELLITE SERVICE  PROVIDER  OR
 VIDEO STREAMING SERVICE PROVIDER IS ENGAGED IN THE SALE OF DIRECT BROAD-
 CAST  SATELLITE  OR VIDEO STREAMING SERVICES TO SUBSCRIBERS OR CUSTOMERS
 IN THE STATE.
   4. (A) EVERY DIRECT BROADCAST SATELLITE SERVICE PROVIDER AND/OR  VIDEO
 STREAMING  SERVICE  PROVIDER SUBJECT TO TAX UNDER THIS SECTION SHALL (I)
 FILE, ON OR BEFORE APRIL FIFTEENTH  OF  EACH  YEAR,  FOR  TAXABLE  YEARS
 BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, A RETURN
 FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, AND (II)  PAY
 THE  TAX DUE, WHICH RETURN SHALL STATE THE GROSS RECEIPTS FOR THE PERIOD
 COVERED BY EACH SUCH RETURN.
   (B) RETURNS SHALL BE FILED WITH THE  COMMISSIONER  ON  A  FORM  TO  BE
 FURNISHED  BY  THE  COMMISSIONER FOR SUCH PURPOSE AND SHALL CONTAIN SUCH
 OTHER DATA, INFORMATION OR MATTER AS THE COMMISSIONER MAY REQUIRE TO  BE
 INCLUDED THEREIN.
   (C)  NOTWITHSTANDING  PARAGRAPHS  (A) AND (B) OF THIS SUBDIVISION, THE
 COMMISSIONER MAY REQUIRE ANY DIRECT BROADCAST SATELLITE SERVICE PROVIDER
 AND/OR VIDEO STREAMING SERVICE PROVIDER TO FILE AN ANNUAL RETURN,  WHICH
 SHALL  CONTAIN  ANY  DATA  SPECIFIED  BY THE COMMISSIONER, REGARDLESS OF
 WHETHER SUCH PROVIDER IS SUBJECT TO TAX UNDER THIS SECTION.
   5. (A) A DIRECT BROADCAST SATELLITE SERVICE PROVIDER OR VIDEO  STREAM-
 ING SERVICE PROVIDER WHO FAILS TO FILE A RETURN OR TO PAY ANY TAX WITHIN
 THIRTY  DAYS  OF  THE TIME REQUIRED PURSUANT TO THIS ARTICLE (DETERMINED
 WITH REGARD TO ANY EXTENSION OF TIME FOR  FILING  OR  PAYING)  SHALL  BE
 SUBJECT  TO A PENALTY OF TEN PERCENT OF THE AMOUNT OF THE TAX DETERMINED
 TO BE DUE, PLUS FIVE PERCENT OF SUCH AMOUNT FOR EACH SUBSEQUENT MONTH OR
 FRACTION THEREOF DURING WHICH SUCH  FAILURE  CONTINUES,  NOT  TO  EXCEED
 THIRTY PERCENT IN THE AGGREGATE.
   (B)  IN THE EVENT OF AN UNDERPAYMENT OF THE TAX OWED, THE COMMISSIONER
 SHALL SET THE UNDERPAYMENT RATE OF INTEREST TO BE PAID, BUT  THE  UNDER-
 PAYMENT  RATE  SHALL  NOT  BE  LESS  THAN SEVEN AND ONE-HALF PERCENT PER
 ANNUM, COMPOUNDED DAILY. IF NO SUCH RATE OF INTEREST IS SET, SUCH UNDER-
 PAYMENT RATE SHALL BE DEEMED TO BE SET AT SEVEN AND ONE-HALF PERCENT PER
 ANNUM, COMPOUNDED DAILY. ANY SUCH RATE SET  BY  THE  COMMISSIONER  SHALL
 APPLY  TO  TAXES,  OR ANY PORTION THEREOF, WHICH REMAIN OR BECOME DUE OR
 UNDERPAID ON OR AFTER THE DATE ON WHICH SUCH RATES BECOME EFFECTIVE  AND
 SHALL  APPLY  ONLY  WITH  RESPECT TO INTEREST COMPUTED OR COMPUTABLE FOR
 PERIODS OR PORTIONS OF PERIODS OCCURRING IN THE PERIOD DURING WHICH SUCH
 RATES ARE IN EFFECT.
   6. EVERY DIRECT BROADCAST  SATELLITE  SERVICE  PROVIDER  AND/OR  VIDEO
 STREAMING  SERVICE PROVIDER SUBJECT TO TAX UNDER THIS SECTION SHALL KEEP
 SUCH RECORDS OF ITS BUSINESS AND IN SUCH FORM AS  THE  COMMISSIONER  MAY
 REQUIRE,  AND  SUCH  RECORDS  SHALL  BE  PRESERVED FOR A PERIOD OF THREE
 YEARS, EXCEPT THAT THE COMMISSIONER MAY  CONSENT  TO  THEIR  DESTRUCTION
 WITHIN THAT PERIOD OR MAY REQUIRE THAT THEY BE KEPT LONGER.
   §  3. The state finance law is amended by adding a new section 99-m to
 read as follows:
   § 99-M. COMMUNITY MEDIA REINVESTMENT FUND. 1. THERE IS  HEREBY  ESTAB-
 LISHED  IN  THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF
 TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "COMMUNITY  MEDIA
 REINVESTMENT FUND".
 S. 2581--B                          5
 
   2.(A)  ALL  MONIES  RECEIVED BY THE COMPTROLLER OR THE COMMISSIONER OF
 TAXATION AND FINANCE FOR THE PURPOSE OF THIS  FUND  SHALL  BE  DEPOSITED
 THEREIN.  NO  MONIES  MAY  BE TRANSFERRED FROM THIS ACCOUNT TO ANY OTHER
 ACCOUNT EXCEPT BY AUTHORITY OF THE COMMISSIONER OF TAXATION AND FINANCE.
   (B) SUCH FUND SHALL CONSIST OF THE REVENUE COLLECTED PURSUANT TO ARTI-
 CLE FIFTEEN OF THE TAX LAW AND ANY OTHER REVENUES COLLECTED BY OR APPRO-
 PRIATED TO THE FUND PURSUANT TO ANY OTHER LAW.
   3.(A)  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  IS AUTHORIZED TO
 UTILIZE THE  MONIES  IN  THE  COMMUNITY  MEDIA  REINVESTMENT  FUND,  FOR
 DISTRIBUTION TO THE STATE, MUNICIPALITIES, AND COMMUNITY MEDIA ORGANIZA-
 TIONS IN PROPORTIONS AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR
 IN  ACCORDANCE WITH PARAGRAPH (C) OF THIS SUBDIVISION, PROVIDED HOWEVER,
 THAT THE COMMISSIONER MAY RETAIN UP TO TEN PERCENT OF THE MONIES IN  THE
 FUND ANNUALLY FOR OPERATIONAL EXPENDITURES.
   (B)  THE  COMMISSIONER OF TAXATION AND FINANCE SHALL ANNUALLY DISTRIB-
 UTE, WITH NO REMAINDER LEFT, ALL MONIES THEN HELD IN THE COMMUNITY MEDIA
 REINVESTMENT FUND ACCORDING TO THE FOLLOWING FORMULA:
   (I) ONE-FIFTH OF THE MONIES IN THE FUND, LESS THE MONIES  RETAINED  BY
 THE  COMMISSIONER  FOR OPERATIONAL EXPENDITURES, SHALL BE DISTRIBUTED TO
 THE STATE GENERAL FUND;
   (II) TWO-FIFTHS OF THE MONIES IN THE FUND SHALL BE DISTRIBUTED DIRECT-
 LY TO MUNICIPALITIES IN THE STATE, AND FURTHER ALLOCATED  PROPORTIONALLY
 BASED UPON THE POPULATION OF SUCH MUNICIPALITIES;
   (III)  TWO-FIFTHS  OF  THE  MONIES  IN  THE  FUND SHALL BE DISTRIBUTED
 DIRECTLY TO IDENTIFIED COMMUNITY MEDIA ORGANIZATIONS IN THE  STATE,  OR,
 IF  NO COMMUNITY MEDIA ORGANIZATION HAS BEEN IDENTIFIED IN A GIVEN MUNI-
 CIPALITY, TO INFRASTRUCTURE  OR  SERVICES  OVERSEEN  BY  THE  CONNECTALL
 OFFICE OR TO ORGANIZATIONS IDENTIFIED BY CONNECTALL.
   (C)  NOTWITHSTANDING  PARAGRAPH  (B) OF THIS SUBDIVISION, IN LOW POPU-
 LATION DENSITY AREAS WHERE CABLE IS NOT MANDATED, SUCH FUNDS MAY BE USED
 BY CONNECTALL TO BUILD OUT THE INFRASTRUCTURE NEEDED FOR VIDEO OR  AUDIO
 CONNECTIVITY,  WHICH  MAY INCLUDE BROADBAND, CELLULAR, SATELLITE, OR ANY
 OTHER MEANS OF CONNECTIVITY APPROPRIATE TO FACILITATE THE  ESTABLISHMENT
 OF THE COMMUNITY MEDIA OPERATIONS DESIRED IN EACH LOW POPULATION DENSITY
 AREA.
   4.  THE  COMMISSIONER  OF  TAXATION AND FINANCE SHALL PROMULGATE REGU-
 LATIONS BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR TO  ESTABLISH
 PROCEDURES  FOR  IDENTIFYING,  ON  AN  ANNUAL BASIS, (A) COMMUNITY MEDIA
 ORGANIZATIONS ELIGIBLE TO RECEIVE MONIES DISTRIBUTED PURSUANT TO SUBPAR-
 AGRAPH (III) OF PARAGRAPH (B) OF SUBDIVISION THREE OF THIS SECTION;  AND
 (B)  IN  THE EVENT THAT NO COMMUNITY MEDIA ORGANIZATION HAS BEEN IDENTI-
 FIED IN A GIVEN MUNICIPALITY, THE  CONNECTALL  OFFICE  OR  ORGANIZATIONS
 IDENTIFIED  BY CONNECTALL, ELIGIBLE TO RECEIVE MONIES DISTRIBUTED PURSU-
 ANT TO SUBPARAGRAPH (III) OF PARAGRAPH (B) OF SUBDIVISION THREE OF  THIS
 SECTION.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS TO THE CONTRARY IN THE
 STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND  REGULATIONS  MAY  BE
 ADOPTED  ON  AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH DECEMBER THIR-
 TY-FIRST, TWO THOUSAND TWENTY-FOUR DEADLINE.
   5. ALL PAYMENTS OF MONIES FROM THE FUND SHALL BE MADE ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER.
   § 4. This act shall take effect immediately and apply to taxable years
 beginning on and after January 1, 2025.

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Senate Bill S2581B

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Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

2023-S2581 - Details

2023-S2581 - Summary

2023-S2581 - Sponsor Memo

2023-S2581 - Bill Text download pdf

co-Sponsors

2023-S2581A - Details

2023-S2581A - Summary

2023-S2581A - Sponsor Memo

2023-S2581A - Bill Text download pdf

co-Sponsors

2023-S2581B (ACTIVE) - Details

2023-S2581B (ACTIVE) - Summary

2023-S2581B (ACTIVE) - Sponsor Memo

2023-S2581B (ACTIVE) - Bill Text download pdf

Comments