Bill Text: NY S07991 | 2019-2020 | General Assembly | Introduced
Bill Title: Adds a three dollar surcharge on online delivery transactions terminating within the city of New York to be used to fund the operating costs of buses and subways in the city of New York.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-03-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07991 Detail]
Download: New_York-2019-S07991-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7991 IN SENATE March 6, 2020 ___________ Introduced by Sen. RAMOS -- 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 adding a surcharge on online delivery transactions within the city of New York 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 article 29-D to read 2 as follows: 3 ARTICLE 29-D 4 DELIVERY SURCHARGE 5 Section 1299-M. Definitions. 6 1299-N. Imposition of tax. 7 1299-O. Liability for surcharge. 8 1299-P. Registration. 9 1299-Q. Returns and payment of surcharge. 10 1299-R. Records to be kept. 11 1299-S. Secrecy of returns and reports. 12 1299-T. Practice and procedure. 13 1299-U. Deposit and disposition of revenue. 14 1299-V. Cooperation by regulatory agencies. 15 § 1299-M. Definitions. (a) "Person" means an individual, partnership, 16 limited liability company, society, association, joint stock company, 17 corporation, estate, receiver, trustee, assignee, referee or any other 18 person acting in a fiduciary or representative capacity, whether 19 appointed by a court or otherwise, any combination of individuals and 20 any other form of unincorporated enterprise owned or conducted by two or 21 more persons. 22 (b) "Delivery transaction" means a transaction that results in the 23 delivery of any item purchased online to the purchaser. 24 (c) "Purchaser" means the person receiving the item in the delivery 25 transaction. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09236-05-0S. 7991 2 1 § 1299-N. Imposition of tax. In addition to any other tax or assess- 2 ment imposed by this chapter or other law, there is hereby imposed, 3 beginning on January first, two thousand twenty-two, a surcharge on all 4 delivery transactions of three dollars for each delivery transaction 5 where the delivery is made within the city of New York, except for 6 deliveries of essential medical supplies or deliveries of food. 7 § 1299-O. Liability for surcharge. (a) Notwithstanding any provision 8 of law to the contrary, any person that sells by any means any item to 9 be delivered within the city of New York is subject to a surcharge 10 imposed by this article shall be liable for the surcharge imposed by 11 this article. 12 (b) Notwithstanding any law to the contrary, the surcharge imposed by 13 this article shall be passed along to the purchaser and separately stat- 14 ed on any receipt that is provided to such passenger. The passing along 15 of such surcharge shall not be construed by any court or administrative 16 body as the imposition of the surcharge on the person or entity that 17 pays for the delivery transaction. 18 (c) Notwithstanding any law to the contrary, the surcharge imposed by 19 this article shall not apply to any purchaser using the supplemental 20 nutrition assistance program, special supplemental nutrition program for 21 women, infants and children, or any successor programs as full or 22 partial payment for the items purchased where all items purchased in the 23 delivery transaction are purchasable using such programs. 24 § 1299-P. Registration. (a) Every person liable for the surcharge 25 imposed by this article shall file with the commissioner a properly 26 completed application for a certificate of registration, in a form 27 prescribed by the commissioner. Such application shall be accompanied by 28 a fee of one dollar and fifty cents, and shall set forth the name and 29 address of the registrant, and any other information that the commis- 30 sioner may require. Notwithstanding the foregoing, any person liable for 31 a surcharge imposed by this article that will incur such liability no 32 more than one time in any single calendar month shall not be subject to 33 the provisions of this paragraph. 34 (b) Except as otherwise provided in this section, the commissioner 35 shall issue a certificate of registration to each person that applies 36 for one for a specified term of not less than three years. Any certif- 37 icate of registration referred to in this paragraph shall be subject to 38 renewal in accordance with rules promulgated by the commissioner, and 39 upon the payment of a fee of one dollar fifty cents. Whether or not such 40 certificate of registration is issued for a specified term, it shall be 41 subject to suspension or revocation as provided for in this section. 42 Each certificate shall state the registrant and the registrant's taxpay- 43 er ID number it is applicable to. Certificates of registration issued 44 pursuant to this article shall be non-assignable and non-transferable, 45 and shall be surrendered to the commissioner immediately upon the regis- 46 trant's ceasing to do business at the address provided in its applica- 47 tion, unless the registrant amends its certificate of registration in 48 accordance with rules promulgated by the commissioner. All registrants 49 must notify the commissioner of changes to any of the information stated 50 on their certificate of registration, including vehicle changes, if any, 51 on a calendar quarterly basis, and shall amend their certificates of 52 registration accordingly. 53 (c) (1) The commissioner may refuse to issue a certificate of regis- 54 tration to a person, or may suspend or revoke a certificate of registra- 55 tion that was issued to a person, pursuant to this section upon finding 56 that: (i) such person failed to pay any monies that are finally deter-S. 7991 3 1 mined to be due for any tax or imposition that is administered by the 2 commissioner; (ii) such person failed to file any report or return that 3 is due from it under this chapter; (iii) such person willfully filed a 4 false report, return or other document due under this chapter; (iv) such 5 person willfully violated any provisions of this article, or any rule or 6 regulation of the commissioner promulgated under this article; or (v) a 7 certificate of registration issued pursuant to this section to such 8 person, or to any business or entity under control of such person, or 9 that is subject to substantially the same ownership, direction or 10 control of such person, that has been revoked or suspended within one 11 year from the date on which a certificate of registration is filed. 12 (2) A notice of proposed revocation, suspension or refusal to issue 13 shall be given to the person that applies for a certificate of registra- 14 tion pursuant to this section in the manner prescribed for a notice of 15 deficiency in subsection (a) of section one thousand eighty-one of this 16 chapter, and except as otherwise provided herein, all the provisions of 17 article twenty-seven of this chapter applicable to a notice of deficien- 18 cy shall apply to a notice issued pursuant to this paragraph, insofar as 19 such provisions can be made applicable to such notice, and with such 20 modifications as may be necessary in order to adapt the language of such 21 provisions to the notice authorized by this paragraph. All notices of 22 proposed revocation, suspension or refusal to issue shall contain a 23 statement advising the person to whom it is issued that the suspension, 24 revocation or refusal to issue may be challenged through a hearing proc- 25 ess and that the petition for such challenge must be filed with the 26 division of tax appeals within ninety days after the giving of such 27 notice. 28 (3) In the case of a proposed revocation or suspension, notice of 29 such must be given to a person within three years from the date of the 30 act or omission described in paragraph one of this subdivision, except 31 that in the case of acts involving falsity or fraud, such notice may be 32 issued at any time. 33 (4) In any of the foregoing instances where the commissioner may 34 suspend or revoke or refuse to issue a certificate of registration, the 35 commissioner may condition the retention or issuance of a certificate of 36 registration upon the filing of a bond or the deposit of tax in the 37 manner provided in paragraph two or three of subdivision (e) of section 38 eleven hundred thirty-seven of this chapter. 39 (d) If the commissioner considers it necessary for the proper adminis- 40 tration of the surcharge imposed by this article, he or she may require 41 every person who holds a certificate of registration issued pursuant to 42 this section to apply for a new certificate of registration in such form 43 and at such time as the commissioner may prescribe, and to surrender 44 each previously issued certificate of registration. The commissioner may 45 require such filing and such surrender not more often than once every 46 three years. Upon the filing of an application for a new certificate of 47 registration and the surrender of all previous such certificates, the 48 commissioner shall issue, within such time as the commissioner may 49 prescribe, a new certificate of registration, without charge, to each 50 registrant. 51 § 1299-Q. Returns and payment of surcharge. (a) Every person liable 52 for the surcharge imposed by this article shall file a return with the 53 commissioner on a monthly basis. Each return shall show the number of 54 delivery transactions completed subject to the surcharge imposed by this 55 article in the month for which the return is filed, along with such 56 other information as the commissioner may require. The returns requiredS. 7991 4 1 by this section shall be filed within twenty days after the end of the 2 month covered thereby. If the commissioner deems it necessary to ensure 3 the payment of the surcharge imposed by this article, he or she may 4 require returns to be made for shorter periods than prescribed by the 5 foregoing provisions of this section, and upon such dates as may be 6 specified. The form of returns shall be prescribed by the commissioner 7 and shall contain such information as the commissioner may deem neces- 8 sary for the proper administration of this article. The commissioner may 9 require that returns be filed electronically. 10 (b) Every person liable for the surcharge imposed by this article 11 shall, at the time of filing such return, pay to the commissioner the 12 total amount of all surcharges due under this article. Such amount shall 13 be due and payable on the date specified for the filing of the return 14 for such period, without regard to whether a return is filed, or whether 15 the return that is filed correctly shows the correct number of delivery 16 transactions are subject to the surcharge, or the correct surcharge 17 amount due thereon. The commissioner may require that the surcharge be 18 paid electronically. 19 (c) In addition to any other penalty or interest provided for under 20 this article or other law, and unless it is shown that such failure is 21 due to reasonable cause and not due to willful neglect, any person 22 liable for the surcharge imposed by this article that fails to pay such 23 surcharge when due shall be liable for a penalty in an amount equal to 24 two hundred percent of the total surcharge amount that is due. 25 § 1299-R. Records to be kept. Every person liable for the surcharge 26 imposed by this article shall keep, and shall make available for review 27 upon demand by the commissioner: 28 (a) records of delivery transaction completed by such person, includ- 29 ing all amounts paid, charged or due thereon, in such form as the 30 commissioner may require; 31 (b) true and complete copies of any records required to be kept by any 32 applicable regulatory department or agency; and 33 (c) such other records and information as the commissioner may require 34 to perform his or her duties under this article. 35 § 1299-S. Secrecy of returns and reports. (a) Except in accordance 36 with proper judicial order or as otherwise provided by law, it shall be 37 unlawful for the commissioner, any officer or employee of the depart- 38 ment, any person engaged or retained by th department on an independent 39 contract basis, or any person who in any manner may acquire knowledge of 40 the contents of a return or report filed with the commissioner pursuant 41 to this article, to divulge or make known in any manner any particulars 42 set forth or disclosed in any such return or report. The officers 43 charged with the custody of such returns and reports shall not be 44 required to produce any of them or evidence of anything contained in 45 them in any action or proceeding in any court, except on behalf of the 46 commissioner in an action or proceeding under the provisions of this 47 chapter, or in any other action or proceeding involving the collection 48 of a tax due under this chapter to which the state, the commissioner or 49 an agency that is authorized to permit or regulate the provision of any 50 relevant transportation is a party or a claimant, or on behalf of any 51 party to any action, proceeding or hearing under the provisions of this 52 article, when the returns or the reports or the facts shown thereby are 53 directly involved in such action, proceeding or hearing, in any of which 54 events the court, or in the case of a hearing, the division of tax 55 appeals, may require the production of, and may admit in evidence so 56 much of said returns or reports or of the facts shown thereby as areS. 7991 5 1 pertinent to the action or proceeding and no more. Nothing herein shall 2 be construed, however, to prohibit the commissioner, in his or her 3 discretion, from allowing the inspection or delivery of a certified copy 4 of any return or report filed under this article, or from providing any 5 information contained in any such return or report, by or to a duly 6 authorized officer or employee of the comptroller; nor to prohibit the 7 inspection or delivery of a certified copy of any return or report filed 8 under this article, or the provision of any information contained there- 9 in, by or to the attorney general or other legal representatives of the 10 state when an action shall have been recommended or commenced pursuant 11 to this chapter in which such returns or reports or the facts shown 12 thereby are directly involved; nor to prohibit the commissioner from 13 providing or certifying to the division of budget or the comptroller the 14 total number of returns or reports filed under this article in any 15 reporting period and the total collections received therefrom; nor to 16 prohibit the delivery to a person liable for the surcharge imposed by 17 this article, or a duly authorized representative of such, a certified 18 copy of any return or report filed by such person pursuant to this arti- 19 cle, nor to prohibit the publication of statistics so classified as to 20 prevent the identification of particular returns or reports and the 21 items thereof; nor to prohibit the disclosure, in such manner as the 22 commissioner deems appropriate, of the names and other appropriate iden- 23 tifying information of those persons required to pay the surcharge 24 imposed by this article. 25 (b) Notwithstanding the provisions of subdivision (a) of this section, 26 the commissioner may permit the secretary of the treasury of the United 27 States or such secretary's delegate, or the authorized representative of 28 either such officer, to inspect any return filed under this article, or 29 may furnish to such officer of such officer's authorized representative 30 an abstract of any such return or supply such person with information 31 concerning an item contained in any such return, or disclosed by any 32 investigation of liability under this article, but such permission shall 33 be granted or such information furnished only if the laws of the United 34 States grant substantially similar privileges to the commissioner or 35 officer of this state charged with the administration of the surcharge 36 imposed by this article, and only if such information is to be used for 37 purposes of tax administration only; and provided further the commis- 38 sioner may furnish to the commissioner of internal revenue or such 39 commissioner's authorized representative such returns filed under this 40 article and other tax information, as such commissioner may consider 41 proper, for use in court actions or proceedings under the internal 42 revenue code, whether civil or criminal, where a written request there- 43 for has been made to the commissioner by the secretary of the treasury 44 of the United States or such secretary's delegate, provided the laws of 45 the United States grant substantially similar powers to the secretary of 46 the treasury of the United States or his or her delegate. Where the 47 commissioner has so authorized use of returns and other information in 48 such actions or proceedings, officers and employees of the department 49 may testify in such actions or proceedings in respect to such returns or 50 other information. 51 (c)(1) Any officer or employer of the state who willfully violates the 52 provisions of subdivision (a) of this section shall be dismissed from 53 office and be incapable of holding any public office for a period of 54 five years thereafter. 55 (2) Cross-reference: For criminal penalties, see article thirty-seven 56 of this chapter.S. 7991 6 1 § 1299-T. Practice and procedure. The provisions of article twenty- 2 seven of this chapter shall apply with respect to the administration of 3 and procedure with respect to the surcharge imposed by this article in 4 the same manner and with the same force and effect as if the language of 5 such article twenty-seven had been incorporated in full into this arti- 6 cle and had expressly referred to the surcharge imposed by this article, 7 except to the extent that any such provision is either inconsistent with 8 a provision of this article or is not relevant to this article. 9 § 1299-U. Deposit and disposition of revenue. Any surcharge, interest, 10 and penalties collected or received by the commissioner under this arti- 11 cle shall be daily remitted to the general transportation account of the 12 New York city transportation assistance fund established by section 13 twelve hundred seventy-i of the public authorities law for the purposes 14 of funding the operating costs of buses and subways within the city of 15 New York. 16 § 1299-V. Cooperation by regulatory agencies. All regulatory agencies 17 shall cooperate with and assist the commissioner to effectuate the 18 purposes of this article and the commissioner's responsibilities here- 19 under. Such cooperation shall also include furnishing to the commission- 20 er all written, computerized, automated or electronic records in the 21 regulatory agency's possession, or in the possession of any of its 22 agents, instrumentalities, contractors, or any other person authorized 23 or required to obtain or possess such records or information, that 24 account for any person or entity liable under this article. Such infor- 25 mation shall be provided to the commissioner without cost, and in a 26 format prescribed by the commissioner. 27 § 2. This act shall take effect on the first of January next succeed- 28 ing the date upon which it shall have become a law. Effective immediate- 29 ly, the addition, amendment and/or repeal of any rule or regulation 30 necessary for the implementation of this act on its effective date are 31 authorized to be made on or before such date.