NY State Senate Bill 2025-S1073

Senate Bill S1073

2025-2026 Legislative Session

Relates to providing a sales and compensating use tax exemption in certain areas of New York city

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 08, 2025	referred to budget and revenue

2025-S1073 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1101 & 1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3907
2021-2022: S1424
2023-2024: S728

2025-S1073 (ACTIVE) - Summary

Relates to providing a sales and compensating use tax exemption in certain areas of New York city.

2025-S1073 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1073

SPONSOR: SERRANO
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing a sales and
compensating use tax exemption in certain areas of New York city

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide that there will be no sales tax, on goods or services that
are less than $110 for a period of six months from the first day
construction has commenced within a certain portion of the Second Avenue
Subway construction to assist the "Shop Second Avenue" campaign current-
ly underway in bringing consumers in the doors of these beleaguered
businesses that are likely to continue shopping there after the sates
tax is reinstated.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new paragraph 33 to subdivision (b) of section 1101 of
the tax law defining a good or service as having a value of less than

one hundred ten dollars in the aggregate.

Section 2 adds a new paragraph 43 to subdivision (a) of section 1115 of
the tax law providing a sate tax exemption for goods and services for a
six-month period within the business zone area commencing on the first
day of a period of authorized construction. This legislation also
defines the business zone area as well as empowers the commissioner to
determine the period of authorized construction for each business zone
area.

Section 3 contains the effective date.

 
JUSTIFICATION:-

The East Side of Manhattan is currently undergoing one of the most
significant construction projects in decades, the construction of the
long awaited Second Avenue subway. The construction has begun and will
eventually run through parts of eight Assembly Districts. While Phase 1
of the Second Avenue Subway will be completed and operating in December
2016, Phases 2, 3, and 4 are slated to begin construction the upcoming
years. The Second Avenue subway will eventually bring much needed trans-
portation improvements and economic development opportunities to the
East Side, the construction of Phase 1 has had a substantially negative
effect on local businesses. Some establishments in the heart of the
initial construction have lost 20 to 30 percent of business, and others
have closed permanently.

This bill would create a Second Avenue Subway Construction Sates Tax
Free Zone with the purpose of providing incentive for consumers to shop
at businesses currently affected by the construction of the

Second Avenue Subway who are likely to continue shopping and supporting
these businesses after six months have passed and the sates tax is rein-
stated.

 
PRIOR LEGISLATIVE HISTORY:

2023-2024: S.728 - Referred to Budget and Revenue

2021-2022: S.1424 - Referred to Budget and Revenue

2020: S.3907 - Referred to Budget and Revenue

2019: S.3907 - Passed Senate

2013-14: S.915 - Referred to Investigations and Government Operations

2011-12: S.3172A- Amend and Recommit to Investigations and Government
Operations

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act would take effect immediately.

2025-S1073 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1073
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. SERRANO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law,  in  relation  to  providing  a  sales  and
   compensating use tax exemption in certain areas of New York city

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (b) of section 1101 of the tax law  is  amended
 by adding a new paragraph 39 to read as follows:
   (39)  GOODS  AND  SERVICES SHALL MEAN ANY GOOD OR SERVICE THE VALUE OF
 WHICH IS LESS THAN ONE HUNDRED TEN DOLLARS IN VALUE IN THE AGGREGATE.
   § 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 47 to read as follows:
   (47)  (I)  GOODS  AND SERVICES, AS DEFINED IN PARAGRAPH THIRTY-NINE OF
 SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, SOLD IN A
 BUSINESS ZONE AREA. SUCH EXEMPTION SHALL CONTINUE FOR SIX MONTHS FOR ANY
 GIVEN BUSINESS ZONE AREA COMMENCING ON THE FIRST  DAY  OF  A  PERIOD  OF
 AUTHORIZED CONSTRUCTION.
   (II)  FOR  PURPOSES  OF  THIS PARAGRAPH, BUSINESS ZONE AREA SHALL MEAN
 THOSE BUSINESSES IN THE CITY OF NEW YORK  THAT  ARE  NO  MORE  THAN  ONE
 HUNDRED FEET FROM ANY CONSTRUCTION IN THE FOLLOWING AREAS:
   (A) 125TH STREET FROM 5TH AVENUE TO 3RD AVENUE;
   (B) 2ND AVENUE FROM 129TH STREET TO 92ND STREET;
   (C) 2ND AVENUE FROM 87TH STREET TO 83RD STREET;
   (D) 2ND AVENUE FROM 73RD STREET TO 69TH STREET;
   (E) 2ND AVENUE FROM 65TH STREET TO 58TH STREET;
   (F) 2ND AVENUE FROM 45TH STREET TO 41ST STREET;
   (G) 2ND AVENUE FROM 36TH STREET TO 32ND STREET;
   (H) 2ND AVENUE FROM 26TH STREET TO 23RD STREET;
   (I) 2ND AVENUE FROM 15TH STREET TO 11TH STREET;
   (J) 2ND AVENUE FROM 6TH STREET TO 4TH STREET;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01655-01-5
 S. 1073                             2
 
   (K) 2ND AVENUE FROM 4TH STREET TO HOUSTON STREET;
   (L) CHRYSTIE STREET FROM HOUSTON STREET TO CANAL STREET;
   (M) BOWERY FROM PELL STREET TO WORTH STREET;
   (N) WORTH STREET FROM MOTT STREET TO ST. JAMES PLACE;
   (O) WATER STREET FROM DOVER STREET TO JOHN STREET;
   (P) WATER STREET FROM WALL STREET TO COENTIES SLIP; OR
   (Q) THE INTERSECTION OF WATER STREET AND WHITEHALL STREET.
   (III)  FOR  THE  PURPOSES  OF  THIS  PARAGRAPH, THE COMMISSIONER SHALL
 DETERMINE THE PERIOD OF AUTHORIZED CONSTRUCTION FOR EACH  BUSINESS  ZONE
 AREA SPECIFIED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
   § 3. This act shall take effect immediately.

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