NY State Senate Bill 2025-S2142

Senate Bill S2142

2025-2026 Legislative Session

Relates to a sales tax exemption for certain fundraising organized by school-based volunteer organizations

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
Jan 15, 2025	referred to investigations and government operations

2025-S2142 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S315
2021-2022: S3199
2023-2024: S698

2025-S2142 (ACTIVE) - Summary

Grants a sales and compensating use tax exemption for goods under $2 sold for fundraising organized by school-based volunteer organizations.

2025-S2142 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2142

SPONSOR: ORTT
 
TITLE OF BILL:

An act to amend the tax law, in relation to granting a sales and compen-
sating use tax exemption for certain goods sold for the purpose of
fundraising organized by school-based volunteer organizations

 
PURPOSE:

Makes any item sold for the purpose of fundraising by school related
fundraising entities under $2 tax free.

 
SUMMARY OF SPECIFIC PROVISIONS:

Adds a new paragraph 45 to subdivision (1) of section 1115 of the tax
taw to state that any item under $2 sold for the purpose of fundraising
sponsored or promoted by a PTA, or student organization, booster club,
or similar school-based association which supports education or extra-
curricular activities for grades k-12 shalt be tax free.

Section 2 is the effective date.

 
JUSTIFICATION:

PTAs, drama clubs, sports teams, these are a few of the common entities
in schools that use fundraising as a tool to support their activities.
These groups are run by volunteers whether it be students, teachers or
in a few instances parents. Requiring them to collect and remit payment
for items under $2 is burdensome and unnecessary. Funds raised from
these events are a form of fundraising to support the group, not aimed
in making a profit. Removing this bureaucratic hurdle will go a long way
towards improving the outcomes these groups seek to achieve.

 
PRIOR LEGISLATIVE HISTORY:

S.698 of 2023/2024; Referred to Investigations and Government Operations

S. 3199 of 2021/2022; Referred to Investigations and Government Oper-
ations

S. 315 of 2019/2020; Referred to Investigations and Government Oper-
ations

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shalt take effect January 18th next succeeding.

2025-S2142 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2142
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sen.  ORTT  --  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 granting a sales and compen-
   sating use tax exemption for certain goods sold  for  the  purpose  of
   fundraising organized by school-based volunteer organizations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 47 to read as follows:
   (47) SCHOOL-BASED ORGANIZATIONS; ANY ITEM SOLD FOR A COST OF UNDER TWO
 DOLLARS  AND  FOR  THE PURPOSE OF FUNDRAISING SPONSORED OR PROMOTED BY A
 PARENT-TEACHER ASSOCIATION AND/OR STUDENT ORGANIZATION, BOOSTER CLUB, OR
 SIMILAR SCHOOL-BASED ASSOCIATION, WHICH  SUPPORTS  THE  FUNCTIONING  AND
 VIABILITY  OF  EDUCATIONAL  OR  EXTRACURRICULAR  ACTIVITIES BY IMPACTING
 STUDENT LIFE BETWEEN GRADES K THROUGH TWELVE, WHEN THERE  IS  NO  THIRD-
 PARTY  VENDOR  COLLECTING  A  SALES OR COMPENSATING USE TAX THROUGH SUCH
 SALES.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03101-01-5

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