S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6742
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 21, 2025
                                ___________
 
 Introduced  by  Sen. PALUMBO -- 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 eliminating  the  sales  and
   compensating use taxes on telephone answering services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (b) of section 1105 of  the  tax
 law,  as  amended  by  section  9 of part S of chapter 85 of the laws of
 2002, subparagraph (A) as amended by section 1 of part H of  chapter  59
 of the laws of 2019, is amended to read as follows:
   (1)  The receipts from every sale, other than sales for resale, of the
 following: (A) gas, electricity, refrigeration and steam, and gas, elec-
 tric, refrigeration and steam service of whatever nature, including  the
 transportation, transmission or distribution of gas or electricity, even
 if sold separately; (B) telephony and telegraphy and telephone and tele-
 graph  service  of  whatever  nature except interstate and international
 telephony and telegraphy and telephone and telegraph service and  except
 any  telecommunications  service the receipts from the sale of which are
 subject to tax under paragraph two of this subdivision; [(C) a telephone
 answering service;] and (D) a prepaid telephone calling service.
   § 2. Subdivision (a) of section 1110 of the tax  law,  as  amended  by
 section  28  of  part Y of chapter 63 of the laws of 2000, is amended to
 read as follows:
   (a) Except to the extent that property or services have  already  been
 or  will be subject to the sales tax under this article, there is hereby
 imposed on every person a use tax for the use within this state  on  and
 after  June  first,  nineteen  hundred  seventy-one  except as otherwise
 exempted under this article,  (A)  of  any  tangible  personal  property
 purchased  at  retail, (B) of any tangible personal property (other than
 computer software used by the author  or  other  creator)  manufactured,
 processed  or  assembled  by  the user, (i) if items of the same kind of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11190-01-5
              

 S. 6742                             2
 
 tangible personal property are offered for sale by him  in  the  regular
 course  of  business  or  (ii) if items are used as such or incorporated
 into a structure, building or real property by a contractor, subcontrac-
 tor or repairman in erecting structures or buildings, or building on, or
 otherwise  adding  to,  altering,  improving,  maintaining, servicing or
 repairing real property, property or land, as the terms  real  property,
 property  or  land are defined in the real property tax law, if items of
 the same kind are not offered for  sale  as  such  by  such  contractor,
 subcontractor  or repairman or other user in the regular course of busi-
 ness, (C) of any of the services described in paragraphs  (1),  (7)  and
 (8)  of subdivision (c) of section eleven hundred five of this part, (D)
 of any tangible personal property, however acquired, where not  acquired
 for  purposes  of  resale,  upon  which any of the services described in
 paragraphs (2), (3) and (7) of subdivision (c) of section eleven hundred
 five of this part have been performed, [(E) of any  telephone  answering
 service  described  in subdivision (b) of section eleven hundred five of
 this part,] (F) of any computer software written or otherwise created by
 the user if the user offers software of a similar kind for sale as  such
 or  as a component part of other property in the regular course of busi-
 ness, (G) of any prepaid telephone calling service, and (H) of  any  gas
 or  electricity  described  in subdivision (b) of section eleven hundred
 five of this part.
   § 3. Subdivision 4 of section 1131 of  the  tax  law,  as  amended  by
 section  34  of  part Y of chapter 63 of the laws of 2000, is amended to
 read as follows:
   (4) "Property and services the use of which is subject to  tax"  shall
 include:  (a) all property sold to a person within the state, whether or
 not the sale is made within the state, the  use  of  which  property  is
 subject  to tax under section eleven hundred ten of this article or will
 become subject to tax when such property is received by  or  comes  into
 the  possession  or  control  of  such  person within the state; (b) all
 information services, protective and  detective  services  and  interior
 decorating  and design services as such services are described in subdi-
 vision (c) of section eleven hundred five of this article, rendered to a
 person within the state, whether or not such services are rendered  from
 or at a location within the state; (c) all services rendered to a person
 within  the state, whether or not such services are performed within the
 state, upon tangible personal property the use of which  is  subject  to
 tax  under  section  eleven  hundred  ten of this article or will become
 subject to  tax  when  such  property  is  received  by  or  comes  into
 possession  or control of such person within the state; (d) all property
 sold by a person making sales described in clause  (F)  of  subparagraph
 (i)  of paragraph eight of subdivision (b) of section eleven hundred one
 of this article to a person described in such clause (F)  who  purchases
 such  property  at  retail,  whether  or not the sale is made within the
 state; [(e) all telephone answering service rendered to a person  within
 the  state, whether or not such services are performed within the state,
 the use of which is subject to tax under section eleven hundred  ten  of
 this article or will become subject to tax when such service is received
 by or comes into possession or control of such person within the state;]
 (f)  all  prepaid telephone calling services sold to a person within the
 state, whether or not the sale is made within  the  state,  the  use  of
 which  services  are  subject to tax under section eleven hundred ten of
 this article or will become  subject  to  tax  when  such  services  are
 received by or come into the possession or control of such person within
 the  state,  and  whether or not such services are rendered from or at a
 S. 6742                             3
 
 location within the state; and (g) all gas  or  electricity  sold  to  a
 person  within  the  state,  whether  or not the sale is made within the
 state, the use of which is subject to tax under section  eleven  hundred
 ten of this article or will become subject to tax when it is received by
 or comes into the possession or control of such person within the state,
 and  whether  or  not  it  is  rendered from or at a location within the
 state.
   § 4. This act shall take effect on the first  day  of  the  sales  tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax  law,  next  commencing  at  least 90 days after this act shall have
 become a law and shall apply in accordance with the  applicable  transi-
 tional provisions of sections 1106 and 1217 of the tax law.