Bill Text: NY A04801 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to exemptions from sales and use taxes for gift certificates, electronic gift cards and magnetic gift cards.

Spectrum: Moderate Partisan Bill (Republican 13-2)

Status: (Introduced) 2020-01-08 - referred to ways and means [A04801 Detail]

Download: New_York-2019-A04801-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 5, 2019
        Introduced  by  M.  of  A.  GARBARINO  -- Multi-Sponsored by -- M. of A.
          MONTESANO,  PALMESANO,  PALUMBO,  RAIA, STECK, THIELE -- read once and
          referred to the Committee on Ways and Means
        AN ACT to amend the tax law, in relation to exemptions  from  sales  and
          use  taxes  for  gift certificates, electronic gift cards and magnetic
          gift cards
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision (a) of section 1115 of the tax law is amended
     2  by adding a new paragraph 45 to read as follows:
     3    (45)(A) Gift certificates, electronic gift  cards  and  magnetic  gift
     4  cards.
     5    (B) For the purpose of this paragraph: (i) the term "gift certificate"
     6  means a writing identified as a gift certificate by an issuer for use by
     7  a  customer, whether or not redeemable for cash, and usable for its face
     8  amount in lieu of cash for the exchange of goods or services supplied by
     9  the seller. Gift certificates shall include electronic or magnetic cards
    10  with a banked dollar value, a merchandise credit,  a  certificate  where
    11  the  issuer  has received payment for the full face value for the future
    12  purchase or delivery of goods or services, and  any  other  medium  that
    13  evidences  the  giving  of  consideration  in  exchange for the right to
    14  redeem it for goods or services of at least an equal  value.    Pre-paid
    15  calling  arrangements,  such as pre-paid phone cards, are not considered
    16  gift certificates; (ii) the term "electronic  gift  card"  or  "magnetic
    17  gift  card" means a card with a banked dollar value that may be redeemed
    18  for goods or services whereby the dollar amount of the card  is  reduced
    19  accordingly.
    20    §  2. This act shall take effect on the first day of a quarterly sales
    21  tax period, as set forth in subdivision (b) of section 1136 of  the  tax
    22  law, next succeeding the thirtieth day after it shall have become a law.
    23  Provided,  however  that  the commissioner of taxation and finance shall
    24  take any action necessary for the timely implementation of this  act  on
    25  or before the date on which it shall have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.