BILL NUMBER: S5046

SPONSOR: LANZA
 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to conduct a comprehensive study and analy-
sis 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.

 
SUMMARY OF PROVISIONS:

Section 1: sets forth legislative findings.

§ 2: directs the commissioner of taxation and finance, in consultation
with the department of public service, to conduct a study of assess-
ments, fees and tax rates, and associated policies of the state of New 

BUT NOT LIMITED TO THE CABLE, SATELLITE, WIRED, WIRELESS AND BROADBAND
INDUSTRIES. THE STUDY SHALL BE COMPLETED NO LATER THAN JANUARY 1, 2024,
AND SHALL INCLUDE 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 RECOM-
              

MENDATIONS TO STREAMLINE AND SIMPLIFY THE EXISTING SYSTEM WITH AN EYE TO
SIMPLIFYING THE COMPLIANCE PROCESS FOR COMMUNICATIONS PROVIDERS, LOWER-
ING THE COST OF COLLECTING TAXES AND FEES, INCREASING SERVICE AVAILABIL-
ITY, SPURRING NEW TECHNOLOGY EXPANSION INTO ALL OF NEW YORK, AND FOSTER-
ING FAIR, HEALTHY COMPETITION AS BROADLY AS POSSIBLE.

§ 3: ESTABLISHES THE EFFECTIVE DATE.

 
JUSTIFICATION:

IN 1996,I 2001,II AND AGAIN IN 2009,III TELECOMMUNICATIONS TAX STUDIES
WERE CONDUCTED TO ANALYZE AND REPORT ON THE CURRENT STATE OF TAXATION
FOR THE TELECOMMUNICATIONS INDUSTRY IN NEW YORK. IN THE INTRODUCTION OF
THE LATEST REPORT, THE DEPARTMENT OF TAXATION AND FINANCE NOTED THAT
" 
THE PACE OF CHANGE IN THE TELECOMMUNICATIONS INDUSTRY OVER THE PAST
DECADE HAS BEEN BREATHTAKING." THE PACE OF CONTINUING CHANGE OVER THESE
PAST 14 YEARS HAS BEEN NO LESS BREATHTAKING.NONETHELESS, EVEN BACK IN
2009, THE DEPARTMENT OF TAXATION AND FINANCE STATED, "NEW YORK'S TAXA-
TION OF INDUSTRY HOWEVER, HAS NOT KEPT UP WITH THESE DYNAMIC CHANGES."
THE SAME CERTAINLY HOLDS TRUE TODAY, AND EVEN MORE SO THAN IN 2009. IN
FACT, A CONSTANT THEME REMAINS:

"THE PATCHWORK OF DIFFERENT TAXES IMPOSED BY MULTIPLE JURISDICTIONS
LEADS TO CONSUMER CONFUSION ABOUT EXACTLY WHAT TAXES ARE APPEARING ON
THEIR MONTHLY BILLS." DESPITE A CALL IN THE 2009 REPORT FOR NEW YORK TO
"BE AT THE FOREFRONT BY DEVELOPING A TELECOMMUNICATIONS TAX STRUCTURE
REFLECTIVE OF THE 21ST CENTURY," OTHER STATES SUCH AS VIRGINIA, FLORIDA
AND NORTH CAROLINA HAD ALREADY MODERNIZED THEIR TAX STRUCTURES BY THE
TIME THE 2009 REPORT HAD BEEN ISSUED.

 
PRIOR LEGISLATIVE HISTORY:

NEW BILL.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD  
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
I OFFICE OF TAX POLICY ANALYSIS, NEW YORK STATE DEPARTMENT OF TAXATION
AND FINANCE. (AUGUST 1996). IMPROVING NEW YORK STATE'S TELECOMMUNI-
CATIONS TAXES: A BACKGROUND STUDY AND STATUS REPORT.  ALBANY, NY.
II NEW YORK DEPARTMENT OF TAXATION AND FINANCE AND NEW YORK STATE OFFICE
OF REAL PROPERTY SERVICES. (JANUARY 2001). LOCAL TELECOMMUNICATIONS
TAXES AND FEES IN NEW YORK STATE. ALBANY, NY.
III OFFICE OF TAX POLICY ANALYSIS, NEW YORK STATE DEPARTMENT OF TAXATION
AND FINANCE. (OCTOBER 2009). REPORT ON THE TAXATION OF THE TELECOMMUNI-
CATIONS INDUSTRY IN NEW YORK STATE. ALBANY, NY.