Bill Text: NY A05900 | 2023-2024 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 infrastructure or services overseen by the ConnectALL office or organizations identified by ConnectALL.
Spectrum: Partisan Bill (Democrat 41-2)
Status: (Introduced) 2024-04-08 - print number 5900b [A05900 Detail]
Download: New_York-2023-A05900-Amended.html
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 infrastructure or services overseen by the ConnectALL office or organizations identified by ConnectALL.
Spectrum: Partisan Bill (Democrat 41-2)
Status: (Introduced) 2024-04-08 - print number 5900b [A05900 Detail]
Download: New_York-2023-A05900-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5900--A 2023-2024 Regular Sessions IN ASSEMBLY March 24, 2023 ___________ Introduced by M. of A. BENEDETTO, CARROLL, REYES, BURGOS, SEPTIMO, ZACCARO, TAPIA, ZINERMAN, ALVAREZ, JOYNER, RAGA, FORREST, OTIS, CRUZ, JACKSON, SILLITTI, DE LOS SANTOS -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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. Short title. This act shall be known and may be cited as 2 the "community 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06297-02-3A. 5900--A 2 1 The term "person", unless expressly provided otherwise, does not 2 include: 3 (a) a governmental entity or a unit or instrumentality of a govern- 4 mental entity; or 5 (b) any entity exempt from sales and compensating use taxes pursuant 6 to paragraph four of subdivision (a) of section eleven hundred sixteen 7 of this chapter; 8 3. "community media organization" means an entity that is responsible 9 for: 10 (a) operating and administering a public access channel, as defined in 11 16 NYCRR 895.4; and/or 12 (b) operating and administering educational and/or governmental access 13 channels, as defined in 16 NYCRR 895.4; 14 4. "subscriber" or "customer" means any person or member of the gener- 15 al public who receives direct broadcast satellite service or video 16 streaming service from a direct broadcast satellite service provider or 17 video streaming service provider and does not further distribute such 18 service in the ordinary course of business; 19 5. "direct broadcast satellite service" means the distribution or 20 broadcasting by satellite of video programming or services directly to 21 receiving equipment located at an end user subscriber's or an end user 22 customer's premises, including, but not limited to, the provision of 23 premium channels, the provision of music or other audio services or 24 channels, and any other service received in connection with the 25 provision of direct broadcast satellite service; 26 6. "direct broadcast satellite service provider" means a person who 27 transmits, broadcasts or otherwise provides direct broadcast satellite 28 service to subscribers or customers in the state; 29 7. "video streaming service" means the distribution or broadcasting of 30 video programming displayed by the viewer for a fee on a subscription 31 basis. The term video streaming service, unless expressly provided 32 otherwise, does not include cable service as defined by 47 U.S.C. § 33 522(6); 34 8. "video streaming service provider" means a person who transmits, 35 broadcasts or otherwise provides video streaming service to subscribers 36 or customers in the state; 37 9. "video programming" means programming provided by, or comparable to 38 programming provided by, a television broadcast station including, but 39 not limited to, video programming provided by local networks, national 40 broadcast networks, cable television networks and all forms of pay-per- 41 view or on-demand video entertainment; and 42 10. "gross receipts" means all consideration of any kind or nature 43 received by a direct broadcast satellite service provider or video 44 streaming service provider, or an affiliate of such person, in 45 connection with the provision, delivery, or furnishing of direct broad- 46 cast satellite service or video streaming service to subscribers or 47 customers within the state, determined according to the hierarchy 48 described in section three hundred thirty-one of this article. "Gross 49 receipts" shall not include: 50 (a) revenue not actually received, regardless of whether it is billed, 51 including, but not limited to, bad debts; 52 (b) revenue received by an affiliate or other person in exchange for 53 supplying goods and services to an affiliated direct broadcast satellite 54 service provider or affiliated video streaming service provider; 55 (c) refunds, rebates or discounts made to subscribers or customers, to 56 advertisers or to other persons;A. 5900--A 3 1 (d) revenue from telecommunications service as defined in 47 U.S.C. § 2 153(53). Under no circumstances shall direct broadcast satellite provid- 3 ers or video streaming service providers subject to the tax imposed 4 pursuant to this article include the amount of such tax on bills as a 5 pass-through to customers. It shall be the responsibility of each direct 6 broadcast satellite service provider and each video streaming service 7 provider subject to the tax imposed pursuant to this article to pay its 8 required taxes to the state and providers shall not mislead the customer 9 to think otherwise; 10 (e) revenue from any service that is subject to tax under article 11 twenty-eight of this chapter; 12 (f) revenue from the sale of capital assets or surplus equipment not 13 used by the purchaser to receive direct broadcast satellite service or 14 video streaming service from the direct broadcast satellite service 15 provider or video streaming service provider; 16 (g) reimbursements made by programmers to the direct broadcast satel- 17 lite service provider or video streaming service provider for marketing 18 costs incurred by such service provider for the introduction of new 19 programming; 20 (h) late payment fees collected from subscribers or customers; or 21 (i) charges, other than charges for direct broadcast satellite 22 services or video streaming services, that are aggregated or bundled 23 with direct broadcast satellite services or video streaming services on 24 a subscriber's or customer's bill, if the direct broadcast satellite 25 service provider or video streaming service provider can reasonably and 26 separately identify the charges in its books and records kept in the 27 regular course of business. 28 § 331. Imposition and collection of an assessment on direct broadcast 29 satellite services and video streaming services. 1. There is hereby 30 imposed an excise tax on the provision, delivery, or furnishing of 31 direct broadcast satellite services or video streaming services by 32 direct broadcast satellite service providers or video streaming service 33 providers to subscribers or customers in the state. 34 2.(a) Direct broadcast satellite service providers and video streaming 35 service providers shall pay an assessment equal to five percent of such 36 provider's gross receipts derived in or from the provision, delivery, or 37 furnishing of direct broadcast satellite service or video streaming 38 service to subscribers or customers in the state. 39 (b) Gross receipts derived in or from the provision, delivery, or 40 furnishing of direct broadcast satellite service or video streaming 41 service by direct broadcast satellite service providers or video stream- 42 ing service providers to subscribers or customers in the state shall be 43 determined by the hierarchy of sourcing methods set forth in paragraph 44 (c) of this subdivision. The direct broadcast satellite service provider 45 or video streaming service provider shall exercise due diligence under 46 each method described in paragraph (c) of this subdivision before 47 rejecting it and proceeding to the next method in the hierarchy, and 48 shall base its determination on information known to it or information 49 that would be known to it upon reasonable inquiry. 50 (c) Hierarchy of sourcing methods: 51 (i) the customer's primary use location of the direct broadcast satel- 52 lite service or video streaming service; and 53 (ii) the customer's billing address. 54 3. The tax authorized in this section shall be for each year, or part 55 of each year, that such direct broadcast satellite service provider or 56 video streaming service provider is engaged in the sale of direct broad-A. 5900--A 4 1 cast satellite or video streaming services to subscribers or customers 2 in the state. 3 4. (a) Every direct broadcast satellite service provider and/or video 4 streaming service provider subject to tax under this section shall (i) 5 file, on or before April fifteenth of each year, for taxable years 6 beginning on or after January first, two thousand twenty-four, a return 7 for the year ended on the preceding December thirty-first, and (ii) pay 8 the tax due, which return shall state the gross receipts for the period 9 covered by each such return. 10 (b) Returns shall be filed with the commissioner on a form to be 11 furnished by the commissioner for such purpose and shall contain such 12 other data, information or matter as the commissioner may require to be 13 included therein. 14 (c) Notwithstanding paragraphs (a) and (b) of this subdivision, the 15 commissioner may require any direct broadcast satellite service provider 16 and/or video streaming service provider to file an annual return, which 17 shall contain any data specified by the commissioner, regardless of 18 whether such provider is subject to tax under this section. 19 5. (a) A direct broadcast satellite service provider or video stream- 20 ing service provider who fails to file a return or to pay any tax within 21 thirty days of the time required pursuant to this article (determined 22 with regard to any extension of time for filing or paying) shall be 23 subject to a penalty of ten percent of the amount of the tax determined 24 to be due, plus five percent of such amount for each subsequent month or 25 fraction thereof during which such failure continues, not to exceed 26 thirty percent in the aggregate. 27 (b) In the event of an underpayment of the tax owed, the commissioner 28 shall set the underpayment rate of interest to be paid, but the under- 29 payment rate shall not be less than seven and one-half percent per 30 annum, compounded daily. If no such rate of interest is set, such under- 31 payment rate shall be deemed to be set at seven and one-half percent per 32 annum, compounded daily. Any such rate set by the commissioner shall 33 apply to taxes, or any portion thereof, which remain or become due or 34 underpaid on or after the date on which such rates become effective and 35 shall apply only with respect to interest computed or computable for 36 periods or portions of periods occurring in the period during which such 37 rates are in effect. 38 6. Every direct broadcast satellite service provider and/or video 39 streaming service provider subject to tax under this section shall keep 40 such records of its business and in such form as the commissioner may 41 require, and such records shall be preserved for a period of three 42 years, except that the commissioner may consent to their destruction 43 within that period or may require that they be kept longer. 44 § 3. The state finance law is amended by adding a new section 99-m to 45 read as follows: 46 § 99-m. Community media reinvestment fund. 1. There is hereby estab- 47 lished in the joint custody of the comptroller and the commissioner of 48 taxation and finance a special fund to be known as the "community media 49 reinvestment fund". 50 2.(a) All monies received by the comptroller or the commissioner of 51 taxation and finance for the purpose of this fund shall be deposited 52 therein. No monies may be transferred from this account to any other 53 account except by authority of the commissioner of taxation and finance. 54 (b) Such fund shall consist of the revenue collected pursuant to arti- 55 cle fifteen of the tax law and any other revenues collected by or appro- 56 priated to the fund pursuant to any other law.A. 5900--A 5 1 3.(a) The commissioner of taxation and finance is authorized to 2 utilize the monies in the community media reinvestment fund, for 3 distribution to the state, municipalities, and community media organiza- 4 tions in proportions as provided in paragraph (b) of this subdivision or 5 in accordance with paragraph (c) of this subdivision, provided however, 6 that the commissioner may retain up to ten percent of the monies in the 7 fund annually for operational expenditures. 8 (b) The commissioner of taxation and finance shall annually distrib- 9 ute, with no remainder left, all monies then held in the community media 10 reinvestment fund according to the following formula: 11 (i) one-fifth of the monies in the fund, less the monies retained by 12 the commissioner for operational expenditures, shall be distributed to 13 the state general fund; 14 (ii) two-fifths of the monies in the fund shall be distributed direct- 15 ly to municipalities in the state, and further allocated proportionally 16 based upon the population of such municipalities; 17 (iii) two-fifths of the monies in the fund shall be distributed 18 directly to identified community media organizations in the state, or, 19 if no community media organization has been identified in a given muni- 20 cipality, to the organization or organizations serving that municipality 21 identified by the New York state council on the arts to receive distrib- 22 utions from the fund, and further allocated proportionally based on the 23 population of the municipality or municipalities served by each such 24 identified organization. 25 (c) Notwithstanding paragraph (b) of this subdivision, in low popu- 26 lation density areas where cable is not mandated, such funds may be used 27 to build out the infrastructure needed for video or audio connectivity, 28 which may include broadband, cellular, satellite, or any other means of 29 connectivity appropriate to facilitate the establishment of the communi- 30 ty media operations desired in each low population density area. 31 4. The commissioner of taxation and finance shall promulgate regu- 32 lations by December thirty-first, two thousand twenty-three to establish 33 procedures for identifying, on an annual basis, (a) community media 34 organizations eligible to receive monies distributed pursuant to subpar- 35 agraph (iii) of paragraph (b) of subdivision three of this section; and 36 (b) in the event that no community media organization has been identi- 37 fied in a given municipality, the organizations serving that munici- 38 pality identified by the New York state council on the arts, eligible to 39 receive monies distributed pursuant to subparagraph (iii) of paragraph 40 (b) of subdivision three of this section. Notwithstanding any other 41 provisions to the contrary in the New York state administrative proce- 42 dure act (SAPA), such rules and regulations may be adopted on an emer- 43 gency basis if necessary to meet such December thirty-first, two thou- 44 sand twenty-three deadline. 45 5. All payments of monies from the fund shall be made on the audit and 46 warrant of the comptroller. 47 § 4. This act shall take effect immediately and apply to taxable years 48 beginning on and after January 1, 2024.
