Bill Text: NY S09254 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes a tax on direct broadcast satellite services and video streaming services; establishes the community media reinvestment fund; imposes an excise tax on direct broadcast satellite services or video streaming services; provides monies from the community media reinvestment fund shall be distributed to the state general fund, municipalities and community media organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-12 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S09254 Detail]
Download: New_York-2021-S09254-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9254 IN SENATE May 12, 2022 ___________ Introduced by Sen. PARKER -- 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 establishing a tax on direct broadcast satellite services and video streaming services; and to amend the state finance law, in relation to establishing the community media reinvestment fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "community 2 media reinvestment act". 3 § 2. The tax law is amended by adding a new article 15 to read as 4 follows: 5 ARTICLE 15 6 COMMUNITY MEDIA REINVESTMENT ACT 7 Section 330. Definitions. 8 331. Imposition and collection of an assessment on direct broad- 9 cast satellite services and video streaming services. 10 § 330. Definitions. For the purposes of this article, the following 11 terms shall have the following meanings: 12 1. "municipality" means any village, town, city, or county not wholly 13 contained within a city in the state of New York; 14 2. "person" means an individual, partnership, limited liability compa- 15 ny, trust or association, with or without transferable shares, joint- 16 stock company, corporation, society, club, organization, institution, 17 estate, receiver, trustee, assignee or referee and any other person 18 acting in a fiduciary or representative capacity, whether appointed by a 19 court or otherwise, and any combination of individuals acting as a unit. 20 The term "person", unless expressly provided otherwise, does not 21 include: 22 (a) a governmental entity or a unit or instrumentality of a govern- 23 mental entity; or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15862-01-2S. 9254 2 1 (b) any entity exempt from sales and compensating use taxes pursuant 2 to paragraph four of subdivision (a) of section eleven hundred sixteen 3 of this chapter; 4 3. "community media organization" means an entity that is responsible 5 for: 6 (a) operating and administering a public access channel, as defined in 7 16 NYCRR 895.4; and/or 8 (b) operating and administering educational and/or governmental access 9 channels, as defined in 16 NYCRR 895.4; 10 4. "subscriber" or "customer" means any person or member of the gener- 11 al public who receives direct broadcast satellite service or video 12 streaming service from a direct broadcast satellite service provider or 13 video streaming service provider and does not further distribute such 14 service in the ordinary course of business; 15 5. "direct broadcast satellite service" means the distribution or 16 broadcasting by satellite of video programming or services directly to 17 receiving equipment located at an end user subscriber's or an end user 18 customer's premises, including, but not limited to, the provision of 19 premium channels, the provision of music or other audio services or 20 channels, and any other service received in connection with the 21 provision of direct broadcast satellite service; 22 6. "direct broadcast satellite service provider" means a person who 23 transmits, broadcasts or otherwise provides direct broadcast satellite 24 service to subscribers or customers in the state; 25 7. "video streaming service" means the distribution or broadcasting of 26 video programming displayed by the viewer for a fee on a subscription 27 basis. The term video streaming service, unless expressly provided 28 otherwise, does not include cable service as defined by 47 U.S.C. § 29 522(6); 30 8. "video streaming service provider" means a person who transmits, 31 broadcasts or otherwise provides video streaming service to subscribers 32 or customers in the state; 33 9. "video programming" means programming provided by, or comparable to 34 programming provided by, a television broadcast station including, but 35 not limited to, video programming provided by local networks, national 36 broadcast networks, cable television networks and all forms of pay-per- 37 view or on-demand video entertainment; and 38 10. "gross receipts" means all consideration of any kind or nature 39 received by a direct broadcast satellite service provider or video 40 streaming service provider, or an affiliate of such person, in 41 connection with the provision, delivery, or furnishing of direct broad- 42 cast satellite service or video streaming service to subscribers or 43 customers within the state, determined according to the hierarchy 44 described in section three hundred thirty-one of this article. "Gross 45 receipts" shall not include: 46 (a) revenue not actually received, regardless of whether it is billed, 47 including, but not limited to, bad debts; 48 (b) revenue received by an affiliate or other person in exchange for 49 supplying goods and services to an affiliated direct broadcast satellite 50 service provider or affiliated video streaming service provider; 51 (c) refunds, rebates or discounts made to subscribers or customers, to 52 advertisers or to other persons; 53 (d) revenue from telecommunications service as defined in 47 U.S.C. § 54 153(53); 55 (e) revenue from any service that is subject to tax under article 56 twenty-eight of this chapter;S. 9254 3 1 (f) revenue from the sale of capital assets or surplus equipment not 2 used by the purchaser to receive direct broadcast satellite service or 3 video streaming service from the direct broadcast satellite service 4 provider or video streaming service provider; 5 (g) reimbursements made by programmers to the direct broadcast satel- 6 lite service provider or video streaming service provider for marketing 7 costs incurred by such service provider for the introduction of new 8 programming; 9 (h) late payment fees collected from subscribers or customers; or 10 (i) charges, other than charges for direct broadcast satellite 11 services or video streaming services, that are aggregated or bundled 12 with direct broadcast satellite services or video streaming services on 13 a subscriber's or customer's bill, if the direct broadcast satellite 14 service provider or video streaming service provider can reasonably and 15 separately identify the charges in its books and records kept in the 16 regular course of business. 17 § 331. Imposition and collection of an assessment on direct broadcast 18 satellite services and video streaming services. 1. There is hereby 19 imposed an excise tax on the provision, delivery, or furnishing of 20 direct broadcast satellite services or video streaming services by 21 direct broadcast satellite service providers or video streaming service 22 providers to subscribers or customers in the state. 23 2.(a) Direct broadcast satellite service providers and video streaming 24 service providers shall pay an assessment equal to five percent of such 25 provider's gross receipts derived in or from the provision, delivery, or 26 furnishing of direct broadcast satellite service or video streaming 27 service to subscribers or customers in the state. 28 (b) Gross receipts derived in or from the provision, delivery, or 29 furnishing of direct broadcast satellite service or video streaming 30 service by direct broadcast satellite service providers or video stream- 31 ing service providers to subscribers or customers in the state shall be 32 determined by the hierarchy of sourcing methods set forth in paragraph 33 (c) of this subdivision. The direct broadcast satellite service provider 34 or video streaming service provider shall exercise due diligence under 35 each method described in paragraph (c) of this subdivision before 36 rejecting it and proceeding to the next method in the hierarchy, and 37 shall base its determination on information known to it or information 38 that would be known to it upon reasonable inquiry. 39 (c) Hierarchy of sourcing methods: 40 (i) the customer's primary use location of the direct broadcast satel- 41 lite service or video streaming service; and 42 (ii) the customer's billing address. 43 3. The tax authorized in this section shall be for each year, or part 44 of each year, that such direct broadcast satellite service provider or 45 video streaming service provider is engaged in the sale of direct broad- 46 cast satellite or video streaming services to subscribers or customers 47 in the state. 48 4. (a) Every direct broadcast satellite service provider and/or video 49 streaming service provider subject to tax under this section shall (i) 50 file, on or before April fifteenth of each year, for taxable years 51 beginning on or after January first, two thousand twenty-three, a return 52 for the year ended on the preceding December thirty-first, and (ii) pay 53 the tax due, which return shall state the gross receipts for the period 54 covered by each such return. 55 (b) Returns shall be filed with the commissioner on a form to be 56 furnished by the commissioner for such purpose and shall contain suchS. 9254 4 1 other data, information or matter as the commissioner may require to be 2 included therein. 3 (c) Notwithstanding paragraphs (a) and (b) of this subdivision, the 4 commissioner may require any direct broadcast satellite service provider 5 and/or video streaming service provider to file an annual return, which 6 shall contain any data specified by the commissioner, regardless of 7 whether such provider is subject to tax under this section. 8 5. (a) A direct broadcast satellite service provider or video stream- 9 ing service provider who fails to file a return or to pay any tax within 10 thirty days of the time required pursuant to this article (determined 11 with regard to any extension of time for filing or paying) shall be 12 subject to a penalty of ten percent of the amount of the tax determined 13 to be due, plus five percent of such amount for each subsequent month or 14 fraction thereof during which such failure continues, not to exceed 15 thirty percent in the aggregate. 16 (b) In the event of an underpayment of the tax owed, the commissioner 17 shall set the underpayment rate of interest to be paid, but the under- 18 payment rate shall not be less than seven and one-half percent per 19 annum, compounded daily. If no such rate of interest is set, such under- 20 payment rate shall be deemed to be set at seven and one-half percent per 21 annum, compounded daily. Any such rate set by the commissioner shall 22 apply to taxes, or any portion thereof, which remain or become due or 23 underpaid on or after the date on which such rates become effective and 24 shall apply only with respect to interest computed or computable for 25 periods or portions of periods occurring in the period during which such 26 rates are in effect. 27 6. Every direct broadcast satellite service provider and/or video 28 streaming service provider subject to tax under this section shall keep 29 such records of its business and in such form as the commissioner may 30 require, and such records shall be preserved for a period of three 31 years, except that the commissioner may consent to their destruction 32 within that period or may require that they be kept longer. 33 § 3. The state finance law is amended by adding a new section 99-m to 34 read as follows: 35 § 99-m. Community media reinvestment fund. 1. There is hereby estab- 36 lished in the joint custody of the comptroller and the commissioner of 37 taxation and finance a special fund to be known as the "community media 38 reinvestment fund". 39 2.(a) All monies received by the comptroller or the commissioner of 40 taxation and finance for the purpose of this fund shall be deposited 41 therein. No monies may be transferred from this account to any other 42 account except by authority of the commissioner of taxation and finance. 43 (b) Such fund shall consist of the revenue collected pursuant to arti- 44 cle fifteen of the tax law and any other revenues collected by or appro- 45 priated to the fund pursuant to any other law. 46 3.(a) The commissioner of taxation and finance is authorized to 47 utilize the monies in the community media reinvestment fund, for 48 distribution to the state, municipalities, and community media organiza- 49 tions in proportions as provided in paragraph (b) of this subdivision, 50 provided however, that the commissioner may retain up to ten percent of 51 the monies in the fund annually for operational expenditures. 52 (b) The commissioner of taxation and finance shall annually distrib- 53 ute, with no remainder left, all monies then held in the community media 54 reinvestment fund according to the following formula:S. 9254 5 1 (i) one-fifth of the monies in the fund, less the monies retained by 2 the commissioner for operational expenditures, shall be distributed to 3 the state general fund; 4 (ii) two-fifths of the monies in the fund shall be distributed direct- 5 ly to municipalities in the state, and further allocated proportionally 6 based upon the population of such municipalities; 7 (iii) two-fifths of the monies in the fund shall be distributed 8 directly to identified community media organizations in the state, or, 9 if no community media organization has been identified in a given muni- 10 cipality, to the organization or organizations serving that municipality 11 identified by the New York state council on the arts to receive distrib- 12 utions from the fund, and further allocated proportionally based on the 13 population of the municipality or municipalities served by each such 14 identified organization. 15 4. The commissioner of taxation and finance shall promulgate regu- 16 lations by December thirty-first, two thousand twenty-two to establish 17 procedures for identifying, on an annual basis, (a) community media 18 organizations eligible to receive monies distributed pursuant to subpar- 19 agraph (iii) of paragraph (b) of subdivision three of this section; and 20 (b) in the event that no community media organization has been identi- 21 fied in a given municipality, the organizations serving that munici- 22 pality identified by the New York state council on the arts, eligible to 23 receive monies distributed pursuant to subparagraph (iii) of paragraph 24 (b) of subdivision three of this section. Notwithstanding any other 25 provisions to the contrary in the New York state administrative proce- 26 dure act (SAPA), such rules and regulations may be adopted on an emer- 27 gency basis if necessary to meet such December thirty-first, two thou- 28 sand twenty-two deadline. 29 5. All payments of monies from the fund shall be made on the audit and 30 warrant of the comptroller. 31 § 4. This act shall take effect immediately and apply to taxable years 32 beginning on and after January 1, 2023.
