Bill Text: NY A07541 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts the "microbusiness resiliency and growth act"; defines "microbusiness" as a business employing five or fewer persons, is resident in this state, is independently owned and operated, is not dominant in its field, and does not conduct its business transactions primarily over the internet; further provides for a segregated sales tax system for such microbusinesses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A07541 Detail]
Download: New_York-2023-A07541-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7541 2023-2024 Regular Sessions IN ASSEMBLY May 25, 2023 ___________ Introduced by M. of A. STIRPE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to enacting the "microbusiness resiliency and growth act" 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 "microbusiness resiliency and growth act". 3 § 2. Section 1105 of the tax law is amended by adding a new subdivi- 4 sion (g) to read as follows: 5 (g) For the purposes of this chapter, "microbusiness" shall be defined 6 as a business employing five or fewer persons, is resident in this 7 state, is independently owned and operated, is not dominant in its 8 field, and does not conduct its business transactions primarily over the 9 internet. When the goods or services are purchased from a microbusiness 10 within the first five years of the opening of such microbusiness or a 11 microbusiness with a gross profit of five hundred thousand dollars or 12 less in the prior tax year, tax paid on such sales for the first year 13 shall be zero percent and in the second year, such sales tax shall be 14 two percent provided, however that the profit generated on such first 15 and second year sales tax reduction is collected up until the difference 16 between the prior and current minimum wage pursuant to subdivision one 17 of section six hundred fifty-two of the labor law in concurrence with 18 quarterly sales tax periods as prescribed by the department. After the 19 end of the second year, sales taxes shall return to four percent. Tax 20 paid on sales after the profit difference between the prior minimum wage 21 and current minimum wage pursuant to subdivision one of section six 22 hundred fifty-two of the labor law is met shall return to four percent. 23 Microbusinesses that elect to use a segregated sales tax account for the 24 handling of transactions with the department, or are required to keep 25 such an account pursuant to section eleven hundred thirty-seven of this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11020-01-3A. 7541 2 1 article must deduct the aforementioned profit from the segregated sales 2 tax account within one week of deposit. 3 § 3. Section 1135 of the tax law is amended by adding a new subdivi- 4 sion (f-1) to read as follows: 5 (f-1) Every microbusiness owner shall keep records of the number of 6 employees, their wage, and the amount of the sales tax reduction on a 7 quarterly basis and in the manner prescribed by the commissioner pursu- 8 ant to rules and regulations. 9 § 4. This act shall take effect on the first day of the sales tax 10 quarterly period, as described in subdivision (b) of section 1136 of the 11 tax law, next commencing at least 90 days after this act shall have 12 become a law and shall apply in accordance with the applicable transi- 13 tional provisions of sections 1106 and 1217 of the tax law.
