Bill Text: NY A06451 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to establishing the community media development credit and fund to provide certain taxpayers with a credit for contributing to the community media development fund, which is distributed to municipalities and community media organizations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-07 - referred to ways and means [A06451 Detail]

Download: New_York-2019-A06451-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6451
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 7, 2019
                                       ___________
        Introduced by M. of A. MOSLEY -- read once and referred to the Committee
          on Ways and Means
        AN  ACT  to amend the public service law, in relation to authorizing the
          commissioner of the public service commission to administer the commu-
          nity media development tax credit and fund; to amend the tax  law,  in
          relation  to providing a credit to certain taxpayers for contributions
          to the community media  development  fund;  and  to  amend  the  state
          finance  law, in relation to establishing the community media develop-
          ment fund
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The public service law is amended by adding a new section
     2  28 to read as follows:
     3    § 28. Power to administer the community media development  tax  credit
     4  and fund. 1. (a) The commissioner is authorized to administer the commu-
     5  nity media development tax credit to provide tax incentives to taxpayers
     6  who  are direct broadcast satellite service providers or video streaming
     7  service providers as defined in section twenty-four-b of the tax law for
     8  contributions to  the  community  media  development  fund,  established
     9  pursuant to section ninety-nine-m of the state finance law.
    10    (b)  The commissioner shall promulgate regulations by December thirty-
    11  first, two thousand twenty to establish procedures for the allocation of
    12  tax credits pursuant to section twenty-four-b of the tax law. Such rules
    13  and regulations shall  include  provisions  describing  the  application
    14  process,  the due dates for such applications, the standards which shall
    15  be used to evaluate the applications, the  documentation  that  will  be
    16  provided  to taxpayers to substantiate to the commissioner the amount of
    17  tax credits allocated to such taxpayers, and such  other  provisions  as
    18  deemed  necessary  and appropriate. Notwithstanding any other provisions
    19  to the contrary in the state administrative procedure  act,  such  rules
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10147-01-9

        A. 6451                             2
     1  and  regulations  may  be  adopted on an emergency basis if necessary to
     2  meet such December thirty-first, two thousand twenty deadline.
     3    (c)  In  order  to  be  eligible for such tax credits, a taxpayer must
     4  submit an application (in a form prescribed by the commissioner) to  the
     5  commissioner.
     6    (d) If, after reviewing the application submitted by the taxpayer, the
     7  commissioner determines that such taxpayer has made contributions to the
     8  community  media development fund, then the commissioner shall issue the
     9  taxpayer a certificate of eligibility that establishes the taxpayer as a
    10  qualified taxpayer.
    11    2. (a) The commissioner is authorized to utilize  the  monies  in  the
    12  community  media  development fund, for distribution to eligible munici-
    13  palities and community media organizations in proportions as provided in
    14  paragraph (b) of this subdivision, provided however,  that  the  commis-
    15  sioner  may  make  available up to ten percent of the monies in the fund
    16  for operational expenditures annually.
    17    (b) The commissioner shall annually identify all municipalities within
    18  the state who receive a franchise fee pursuant to 47 U.S.C. section  542
    19  and have a community media organization present in such municipality and
    20  distribute  the monies in the fund to such municipalities proportionally
    21  based upon  the  population  of  such  municipalities.  Of  such  monies
    22  distributed  to  a  municipality,  sixty  percent  shall  be distributed
    23  directly to such municipality and forty percent shall be distributed  to
    24  the community media organization for such municipality.
    25    3.  For  the  purposes of this section, "community media organization"
    26  shall mean the entity responsible for managing  public,  educational  or
    27  governmental access facilities, as defined in 47 U.S.C. section 522(16).
    28    §  2.  The  tax law is amended by adding a new section 24-b to read as
    29  follows:
    30    § 24-b. Community media development tax credit. (a) For  the  purposes
    31  of this section the following terms shall have the following meanings:
    32    (1)  "Direct  broadcast  satellite service", means the distribution or
    33  broadcasting by satellite of video programming or services  directly  to
    34  receiving  equipment  located at an end user subscriber's or an end user
    35  customer's premises, including, but not limited  to,  the  provision  of
    36  premium  channels,  the  provision  of  music or other audio services or
    37  channels,  and  any  other  service  received  in  connection  with  the
    38  provision of direct broadcast satellite service.
    39    (2)  "Direct broadcast satellite service provider", means a person who
    40  transmits, broadcasts or otherwise provides direct  broadcast  satellite
    41  service to subscribers or customers in the state.
    42    (3)  "Video streaming service", means the distribution or broadcasting
    43  of video programming sent over the Internet and displayed by the  viewer
    44  in real time for a fee on a subscription basis.
    45    (4)  "Video streaming service provider", means a person who transmits,
    46  broadcasts or otherwise provides video streaming service to  subscribers
    47  or customers in the state.
    48    (5)  "Gross  receipts",  means all consideration of any kind or nature
    49  received by a direct  broadcast  satellite  service  provider  or  video
    50  streaming   service  provider,  or  an  affiliate  of  such  person,  in
    51  connection with the provision of direct broadcast satellite  service  or
    52  video streaming service to subscribers or customers, including recurring
    53  monthly  charges for direct broadcast satellite service or video stream-
    54  ing service and  pay-per-view,  video-on-demand  and  other  event-based
    55  charges  for  direct  broadcast  satellite  service  or  video streaming
    56  service; provided, however, that gross receipts shall not include:

        A. 6451                             3
     1    (i) charges for the rental of equipment related to  the  provision  of
     2  direct broadcast satellite service or video streaming service;
     3    (ii) activation, installation, repair and maintenance charges or simi-
     4  lar  service charges related to the provision of direct broadcast satel-
     5  lite service or video streaming service;
     6    (iii) service order charges, service termination charges or any  other
     7  administrative  charges  related  to  the  provision of direct broadcast
     8  satellite service or video streaming service;
     9    (iv) revenue not  actually  received,  regardless  of  whether  it  is
    10  billed, including, but not limited to, bad debts;
    11    (v)  revenue  received by an affiliate or other person in exchange for
    12  supplying goods and  services  used  by  a  direct  broadcast  satellite
    13  service provider or video streaming service provider;
    14    (vi)  refunds,  rebates or discounts made to subscribers or customers,
    15  to advertisers or to other persons;
    16    (vii) revenue from telecommunications service as defined in 47  U.S.C.
    17  section 153(46);
    18    (viii)  revenue  from  information  services  as  defined in 47 U.S.C.
    19  section 153(20);
    20    (ix) revenue from any service that is subject  to  tax  under  article
    21  twenty-eight of this chapter;
    22    (x)  revenue  from the sale of capital assets or surplus equipment not
    23  used by the purchaser to receive direct broadcast satellite  service  or
    24  video  streaming  service  from  the  direct broadcast satellite service
    25  provider or video streaming service provider;
    26    (xi) reimbursements made by programmers to the direct broadcast satel-
    27  lite service provider or video streaming service provider for  marketing
    28  costs  incurred  by  such  service  provider for the introduction of new
    29  programming that exceed  the  actual  costs  incurred  by  such  service
    30  provider;
    31    (xii) late payment fees collected from subscribers or customers; or
    32    (xiii)  charges, other than those charges specifically described here-
    33  in, that are aggregated  or  bundled  with  such  specifically-described
    34  charges  on  a  subscriber  or  customer's bill, if the direct broadcast
    35  satellite service provider  or  video  streaming  service  provider  can
    36  reasonably  identify  the  charges  in its books and records kept in the
    37  regular course of business.
    38    (6) "Person", means  an  individual,  partnership,  limited  liability
    39  company,  trust  or  association,  with  or without transferable shares,
    40  joint-stock company, corporation, society, club, organization,  institu-
    41  tion,  estate,  receiver,  trustee,  assignee  or  referee and any other
    42  person  acting  in  a  fiduciary  or  representative  capacity,  whether
    43  appointed  by  a  court or otherwise, and any combination of individuals
    44  acting as a unit.
    45    (7) "Subscriber or customer", means any person or member of the gener-
    46  al public who receives  direct  broadcast  satellite  service  or  video
    47  streaming  service from a direct broadcast satellite service provider or
    48  video streaming service provider and does not  further  distribute  such
    49  service in the ordinary course of business.
    50    (8)  "Video programming", means programming provided by, or comparable
    51  to programming provided by, a television  broadcast  station  including,
    52  but  not  limited  to,  video  programming  provided  by local networks,
    53  national broadcast networks, cable networks and all  forms  of  pay-per-
    54  view video entertainment.
    55    (b) A taxpayer who is a direct broadcast satellite service provider or
    56  video streaming service provider shall be allowed a credit of up to five

        A. 6451                             4
     1  percent  of  such  service  provider's gross receipts for such tax year,
     2  against the tax imposed by articles nine-A and twenty-two of this  chap-
     3  ter  for  contributions  to  the community media development fund estab-
     4  lished pursuant to section ninety-nine-m of the state finance law.
     5    (c) The commissioner of the public service commission shall promulgate
     6  regulations  by  December thirty-first, two thousand twenty to establish
     7  procedures for the allocation of tax credits  as  required  pursuant  to
     8  section  twenty-eight  of  the  public service law. Such rules and regu-
     9  lations shall include provisions describing the application process, the
    10  due dates for such applications, the standards which shall  be  used  to
    11  evaluate  the  applications,  the documentation that will be provided to
    12  taxpayers to substantiate to the department the amount  of  tax  credits
    13  allocated  to such taxpayers, and such other provisions as deemed neces-
    14  sary and appropriate.
    15    (d) The credit allowed under this section for any taxable  year  shall
    16  not  reduce the tax due for such year to less than the amount prescribed
    17  in paragraph (d) of subdivision one of section two hundred ten  of  this
    18  chapter.  Provided,  however, that if the amount of the credit allowable
    19  under this section for any taxable year reduces the tax to such  amount,
    20  the  excess  shall be treated as an overpayment of tax to be credited or
    21  refunded in accordance with  the  provisions  of  section  one  thousand
    22  eighty-six  of  this  chapter.    Provided  further,  the  provisions of
    23  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    24  notwithstanding, no interest shall be paid thereon.
    25    (e)  The  taxpayer  may  be  required  to attach to its tax return its
    26  certificate of eligibility issued by  the  commissioner  of  the  public
    27  service  commission  pursuant  to  section  twenty-eight  of  the public
    28  service law.
    29    (f) Cross-references. For application of the credit  provided  for  in
    30  this section, see the following provisions of this chapter:
    31    (1) Article 9-A: section 210-B, subdivision 53;
    32    (2)  Article  22: section 606, subsection (i), paragraph (1), subpara-
    33  graph (B), clause (xliv); and
    34    (3) Article 22: section 606, subsection (jjj).
    35    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    36  sion 53 to read as follows:
    37    53. Community media development tax credit. (a) Allowance of credit. A
    38  taxpayer  shall  be  allowed  a  credit,  to  be computed as provided in
    39  section twenty-four-b of this chapter, against the tax imposed  by  this
    40  article.
    41    (b)  Application  of credit. The credit allowed under this subdivision
    42  for any taxable year may not reduce the tax due for such  year  to  less
    43  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    44  section two hundred ten of this article. However, if the amount of cred-
    45  it allowed under this subdivision for any taxable year reduces  the  tax
    46  to such amount, any amount of credit thus not deductible in such taxable
    47  year will be treated as an overpayment of tax to be credited or refunded
    48  in  accordance with the provisions of section one thousand eighty-six of
    49  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    50  section  one  thousand  eighty-six  of  this chapter notwithstanding, no
    51  interest will be paid thereon.
    52    § 4. Section 606 of the tax law is amended by adding a new  subsection
    53  (jjj) to read as follows:
    54    (jjj) Community media development tax credit. (a) Allowance of credit.
    55  A  taxpayer  shall  be  allowed  a credit, to be computed as provided in

        A. 6451                             5
     1  section twenty-four-b of this chapter, against the tax imposed  by  this
     2  article.
     3    (b)  Application  of credit. If the amount of the credit allowed under
     4  this subsection exceeds the taxpayer's tax for  the  taxable  year,  any
     5  amount  of credit not deductible in that taxable year will be treated as
     6  an overpayment of tax to be credited or refunded in accordance with  the
     7  provisions of section six hundred eighty-six of this article.  Provided,
     8  however, no interest will be paid thereon.
     9    §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    10  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
    11  follows:
    12  (xliv) Community media               Amount of the credit under
    13  development credit under             subdivision fifty-three of section
    14  subsection (jjj)                     two hundred ten-B
    15    §  6. The state finance law is amended by adding a new section 99-m to
    16  read as follows:
    17    § 99-m. Community media development fund. 1. There  is  hereby  estab-
    18  lished  in  the joint custody of the comptroller and the commissioner of
    19  taxation and finance a special fund to be known as the "community  media
    20  development fund".
    21    2.  (a)  All monies received by the comptroller or the commissioner of
    22  taxation and finance for the purpose of this  fund  shall  be  deposited
    23  herein.  No  monies  may  be  transferred from this account to any other
    24  account except by authority of the commissioner of  the  public  service
    25  commission.
    26    (b)  Such  fund  shall  consist  of  the revenue collected pursuant to
    27  section twenty-four-b of the tax law and any other revenues collected by
    28  or appropriated to the fund pursuant to any other law.
    29    3. Monies of the fund, following  appropriation  by  the  legislature,
    30  shall  be  utilized by the commissioner of the public service commission
    31  for distribution to municipalities  and  community  media  organizations
    32  pursuant to the provisions of section twenty-eight of the public service
    33  law.  The  commissioner  of the public service commission may, at his or
    34  her discretion, make available up to ten percent of the  monies  in  the
    35  fund for operational expenditures annually.
    36    4. All payments of monies from the fund shall be made on the audit and
    37  warrant of the comptroller.
    38    § 7. This act shall take effect immediately and apply to taxable years
    39  beginning on or after January 1, 2021.
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