Bill Text: NY A06649 | 2019-2020 | General Assembly | Introduced

Bill Title: Enacts the facilitating business rapid response to state declared disasters act of 2019; relates to exempting certain out-of-state businesses doing work in the state from certain taxes, fees and requirements when temporarily providing services during declared emergencies; and exempts overtime wages of NY state residents from state income tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-14 - referred to ways and means [A06649 Detail]

Download: New_York-2019-A06649-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 14, 2019
        Introduced by M. of A. CRESPO -- read once and referred to the Committee
          on Ways and Means
        AN  ACT to amend the tax law, in relation to thresholds for establishing
          presence, residency or doing business in the  state  for  out-of-state
          companies  including affiliates of in-state companies that temporarily
          provide resources and personnel in the state during a state  of  emer-
          gency declared by the governor or the President of the United States
          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 42  to  read
     2  as follows:
     3                                 ARTICLE 42
     5  Section 3100. Short title.
     6          3101. Definitions.
     7          3102. Business and employee status during disaster period.
     8          3103. Transaction taxes and fees.
     9          3104. Business or employee activity after disaster period.
    10          3105. Notification  of  out-of-state  business  during  disaster
    11                  period.
    12          3106. Notification of intent to remain in state.
    13          3107. Tax exempt overtime earnings.
    14          3108. Severability.
    15    § 3100. Short title. This article shall be known and may be  cited  as
    16  the  "facilitating  business  rapid response to state declared disasters
    17  act of 2019".
    18    § 3101. Definitions. For purposes of this article, the following terms
    19  shall have the following meanings:
    20    1. "Registered business in the state" (or "registered business") means
    21  a business entity that is currently registered to  do  business  in  the
    22  state prior to the declared state disaster or emergency.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6649                             2
     1    2.  "Out-of-state  business" means a business entity that has no pres-
     2  ence in the state and conducts no business in the state  whose  services
     3  are requested by a registered business or by a state or local government
     4  for  purposes  of  performing  disaster or emergency related work in the
     5  state.  Out-of-state  business shall also include a business entity that
     6  is affiliated with the registered business in the state  solely  through
     7  common  ownership. The out-of-state business has no registrations or tax
     8  filings or nexus in the state prior to the declared  state  disaster  or
     9  emergency.
    10    3.  "Out-of-state employee" means an employee who does not work in the
    11  state, except for disaster or emergency related work, during the  disas-
    12  ter period.
    13    4.  "Critical  infrastructure"  means  property and equipment owned or
    14  used by communications networks, electric generation,  transmission  and
    15  distribution  systems,  gas  distribution  systems, water pipelines, and
    16  related support facilities that service multiple customers  or  citizens
    17  including, but not limited to, real and personal property such as build-
    18  ings, offices, lines, poles, pipes, structures and equipment.
    19    5. "Declared state disaster or emergency" means a disaster or emergen-
    20  cy  event  (a) for which the governor has declared a state of emergency,
    21  (b) for which a Presidential declaration of a federal major disaster  or
    22  emergency  has  been  issued,  or  (c) other disaster or emergency event
    23  within the state for which a good faith response effort is required, and
    24  for which the director of the state office of  emergency  management  is
    25  given notification from the registered business and such director desig-
    26  nates  such  event  as  a  disaster  or  emergency  thereby invoking the
    27  provisions of this article.
    28    6. "Disaster period" means a period that begins within ten days of the
    29  first day of the governor's declaration or the  President's  declaration
    30  (whichever occurs first) and that extends for a period of sixty calendar
    31  days  after the end of the declared disaster or emergency period, or for
    32  any longer period authorized by the commissioner.
    33    7. "Disaster or emergency related work" means  repairing,  renovating,
    34  installing,  building,  rendering  services or other business activities
    35  that relate to critical infrastructure that has been  damaged,  impaired
    36  or destroyed by the declared state disaster or emergency.
    37    §  3102.  Business  and  employee status during disaster period. 1. An
    38  out-of-state business that conducts  operations  within  the  state  for
    39  purposes  of  performing  work  or  services related to a declared state
    40  disaster or emergency during the disaster period shall not be considered
    41  to have established a level of presence that would require that business
    42  to register, file and/or remit  state  or  local  taxes  or  that  would
    43  require that business or its out-of-state employees to be subject to any
    44  state licensing or registration requirements.  This includes any and all
    45  state  or local business licensing or registration requirements or state
    46  and local taxes or fees including,  but  not  limited  to,  unemployment
    47  insurance, sales and use tax or ad valorem tax on equipment brought into
    48  the state temporarily for use during the disaster period and then subse-
    49  quently  removed from the state.  For purposes of any state or local tax
    50  on or measured by, in whole or in part, net or gross  income,  including
    51  base  and  overtime  pay,  or receipts, all activity of the out-of-state
    52  business that is conducted in this state pursuant to this article  shall
    53  not  be  treated  as  occurring in this state with respect to any filing
    54  requirements for such tax including the filing required for a unitary or
    55  combined group of which the out-of-state business may be a  part.  Also,
    56  for  the  purposes  of  apportioning  income,  revenue,  or receipts the

        A. 6649                             3
     1  performance by an out-of-state business of  any  disaster  or  emergency
     2  related  work  shall  not be sourced to or shall not otherwise impact or
     3  increase the amount of income, revenue, or receipts apportioned to  this
     4  state.
     5    2.  Any  out-of-state  employee  as  defined  in  subdivision three of
     6  section thirty-one hundred one of this article shall not  be  considered
     7  to  have  established  residency  or  a presence in the state that would
     8  require that person or that person's employer to  file  and  pay  income
     9  taxes  or  to  be  subjected  to tax withholdings or to file and pay any
    10  other state or local  tax  or  fee  during  the  disaster  period.  This
    11  includes  any related state or local employer withholding and remittance
    12  obligations for any out-of-state employee's base and overtime pay.
    13    § 3103. Transaction taxes and fees. Out-of-state businesses  and  out-
    14  of-state  employees  shall be required to pay transaction taxes and fees
    15  including but not limited to fuel taxes or sales/use taxes on  materials
    16  or  services  subject to sales/use tax, hotel taxes, car rental taxes or
    17  fees that the out-of-state affiliated business or out-of-state  employee
    18  purchases  for use or consumption in the state during the disaster peri-
    19  od, unless such taxes are otherwise exempted during a disaster period.
    20    § 3104. Business or employee activity after disaster period. Any  out-
    21  of-state  business  or  out-of-state  employee that remains in the state
    22  after the disaster period will become  subject  to  the  state's  normal
    23  standards  for establishing presence, residency or doing business in the
    24  state and will therefore become responsible for any business or employee
    25  tax requirements that ensue.
    26    § 3105. Notification of out-of-state business during disaster  period.
    27  1.  The out-of-state business that enters the state shall, upon request,
    28  provide the department a statement that it is in the state for  purposes
    29  of  responding  to  the  disaster  or  emergency,  which statement shall
    30  include the  business'  name,  state  of  domicile,  principal  business
    31  address,  federal  tax identification number, date of entry, and contact
    32  information.
    33    2. A registered business in the state shall, upon request, provide the
    34  information required in subdivision one of this section for  any  affil-
    35  iate that enters the state that is an out-of-state business. The notifi-
    36  cation  shall  also include contact information for the registered busi-
    37  ness in the state.
    38    § 3106. Notification of intent to remain  in  state.  An  out-of-state
    39  business or an out-of-state employee that remains in the state after the
    40  disaster  period  shall complete state and local registration, licensing
    41  and filing requirements that ensue  as  a  result  of  establishing  the
    42  requisite  business  presence or residency in the state applicable under
    43  the existing rules.
    44    § 3107. Tax exempt overtime earnings. Any income of a New  York  resi-
    45  dent  individual  which  is  attributable  to  overtime  hours  during a
    46  declared state disaster or emergency and which is disaster or  emergency
    47  related work, as such terms are defined in this article, shall be exempt
    48  from taxation under article twenty-two of this chapter.
    49    §  3108.  Severability. If any clause, sentence, paragraph, section or
    50  part of this article shall be adjudged by any court of competent  juris-
    51  diction to be invalid, the judgment shall not affect, impair, or invali-
    52  date  the  remainder  thereof, but shall be confined in its operation to
    53  the clause,  sentence,  paragraph,  section  or  part  thereof  directly
    54  involved  in  the  controversy  in  which  the  judgment shall have been
    55  rendered.

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     1    § 2. This act shall take effect immediately.  Provided,  however,  the
     2  commissioner  of the department of taxation and finance is authorized to
     3  promulgate any rules or regulations, and  develop  and  issue  forms  or
     4  online processes necessary for the timely implementation of this act.