Bill Text: NY S07974 | 2019-2020 | General Assembly | Introduced

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Bill Title: Codifies existing guidance on the application of sales and use tax and amends the definition of receipt to include consideration received by a vendor from third parties in certain circumstances.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-03-05 - REFERRED TO BUDGET AND REVENUE [S07974 Detail]

Download: New_York-2019-S07974-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7974

                    IN SENATE

                                      March 5, 2020
                                       ___________

        Introduced  by Sen. STAVISKY -- 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 codifying existing  guidance
          on the application of sales and use tax

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 3 of subdivision (b) of section 1101 of  the  tax
     2  law,  as  amended  by  section 21 of part Y of chapter 63 of the laws of
     3  2000, is amended to read as follows:
     4    (3) Receipt. (i) The amount of the sale price of any property and  the
     5  charge for any service taxable under this article, including gas and gas
     6  service  and electricity and electric service of whatever nature, valued
     7  in money, whether received in money or otherwise, including  any  amount
     8  for  which credit is allowed by the vendor to the purchaser, without any
     9  deduction for expenses or early payment discounts and also including any
    10  charges by the vendor to the purchaser for shipping  or  delivery,  and,
    11  with  respect  to  gas  and  gas  service  and  electricity and electric
    12  service, any charges by the vendor for transportation,  transmission  or
    13  distribution,  regardless  of whether such charges are separately stated
    14  in the written contract, if  any,  or  on  the  bill  rendered  to  such
    15  purchaser  and regardless of whether such shipping or delivery or trans-
    16  portation, transmission, or distribution is provided by such vendor or a
    17  third party, but excluding any credit  for  tangible  personal  property
    18  accepted  in  part  payment  and  intended for resale. For special rules
    19  governing computation of receipts, see section eleven hundred eleven  of
    20  this article.
    21    (ii)  Receipt  shall include consideration received by the vendor from
    22  third parties if:
    23    (A) The vendor receives consideration from  a  party  other  than  the
    24  purchaser and the consideration is directly related to a price reduction
    25  or discount on the sale;
    26    (B)  The vendor has an obligation to pass through to the purchaser the
    27  price reduction or discount;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15757-01-0
        S. 7974                             2

     1    (C) The amount of the consideration attributable to the sale is  fixed
     2  and  determinable  by  the vendor at the time of the sale of the item to
     3  the purchaser; and
     4    (D) One of the following criteria is met:
     5    (I)  the  purchaser presents a coupon, certificate or other documenta-
     6  tion to the vendor to claim a price  reduction  or  discount  where  the
     7  coupon,  certificate  or  documentation  is  authorized,  distributed or
     8  granted by a third party with the understanding  that  the  third  party
     9  shall reimburse any vendor to whom the coupon, certificate or documenta-
    10  tion is presented;
    11    (II)  the  purchaser presents identification as a member of a group or
    12  organization entitled to a price reduction or discount; or
    13    (III) the price reduction or discount is identified as a  third  party
    14  price  reduction or discount on the invoice received by the purchaser or
    15  on a  coupon,  certificate  or  other  documentation  presented  by  the
    16  purchaser.
    17    (iii)  Subclause (II) of clause (D) of subparagraph (ii) of this para-
    18  graph shall not apply to employee discounts that  are  reimbursed  by  a
    19  third party on sales of motor vehicles.
    20    (iv)  For the purposes of subclause (II) of clause (D) of subparagraph
    21  (ii) of this paragraph, "identification as a member of a group or organ-
    22  ization entitled to a price reduction or discount" shall not include the
    23  presentation of a customer loyalty or related rewards program card.
    24    § 2. This act shall take effect immediately and shall apply to all tax
    25  periods for which (a) the statute of limitations for seeking a refund or
    26  assessing additional tax are still open under the tax  law  or  (b)  for
    27  which any claim could be made under the New York false claims act.