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.
                                                                   LBD09236-05-0

        S. 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  required

        S. 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 are

        S. 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.
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