Bill Text: NY S04860 | 2017-2018 | General Assembly | Introduced

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Bill Title: Provides that issuers of debit and credit cards shall pay sales and use taxes directly to the state tax commission.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-03-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04860 Detail]

Download: New_York-2017-S04860-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4860
                               2017-2018 Regular Sessions
                    IN SENATE
                                      March 3, 2017
                                       ___________
        Introduced  by  Sens.  DIAZ, SQUADRON -- read twice and ordered printed,
          and when printed to be committed to the  Committee  on  Investigations
          and Government Operations
        AN  ACT to amend the tax law, in relation to requiring issuers of credit
          cards and debit cards to pay and collect sales and use taxes  and  pay
          such taxes to the commissioner of taxation and finance
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new section 1168 to read
     2  as follows:
     3    § 1168. Collection and payment of taxes by processors of credit  cards
     4  and  debit cards. (a) Notwithstanding any law, rule or regulation to the
     5  contrary, an issuer of credit  cards  or  debit  cards,  as  defined  in
     6  section  five  hundred eleven of the general business law, shall collect
     7  and pay taxes imposed by articles twenty-eight and twenty-nine  of  this
     8  chapter,  and  shall  be subject to all provisions of such articles as a
     9  person required to collect tax, as defined in subdivision one of section
    10  eleven hundred thirty-one of this chapter on all transactions  conducted
    11  with  a  credit or debit card of the issuer, provided, however, notwith-
    12  standing any law, rule or regulation to the contrary, such  taxes  shall
    13  be paid directly to the commissioner by the issuer.
    14    (b)  Notwithstanding  any  law, rule or regulation to the contrary, on
    15  any transaction conducted with a debit or credit  card  of  the  issuer,
    16  wherein  the  issuer  is  required  to collect and pay taxes pursuant to
    17  subdivision (a) of this section, the vendor of tangible personal proper-
    18  ty or services involved in said transaction shall not be required to pay
    19  and collect taxes pursuant to articles twenty-eight and  twenty-nine  of
    20  this chapter, rather this duty shall be imposed upon processors.
    21    (c)  For  purposes  of  this  section, processor shall mean any entity
    22  which contracts with vendors to process their credit card  receipts  and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07302-01-7
        S. 4860                             2
     1  who  for  a fee, obtain funds for vendors from such issuers of credit or
     2  debit cards.
     3    §  2. This act shall take effect on the first of October next succeed-
     4  ing the date on which it shall have become a law. Effective immediately,
     5  any rules and regulations necessary for  the  timely  implementation  of
     6  this  act  on  its  effective  date may be promulgated on or before such
     7  date.