Bill Text: NY A10091 | 2019-2020 | General Assembly | Introduced

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Bill Title: Codifies existing guidance on the application of sales and use tax and amends the definition of receipt to include consideration received by a vendor from third parties in certain circumstances.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-03-10 - referred to ways and means [A10091 Detail]

Download: New_York-2019-A10091-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10091

                   IN ASSEMBLY

                                     March 10, 2020
                                       ___________

        Introduced by M. of A. PAULIN, BUCHWALD -- read once and referred to the
          Committee on Ways and Means

        AN  ACT to amend the tax law, in relation to codifying existing guidance
          on the application of sales and use tax

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph 3 of subdivision (b) of section 1101 of the tax
     2  law, as amended by section 21 of part Y of chapter 63  of  the  laws  of
     3  2000, is amended to read as follows:
     4    (3)  Receipt. (i) The amount of the sale price of any property and the
     5  charge for any service taxable under this article, including gas and gas
     6  service and electricity and electric service of whatever nature,  valued
     7  in  money,  whether received in money or otherwise, including any amount
     8  for which credit is allowed by the vendor to the purchaser, without  any
     9  deduction for expenses or early payment discounts and also including any
    10  charges  by  the  vendor to the purchaser for shipping or delivery, and,
    11  with respect to  gas  and  gas  service  and  electricity  and  electric
    12  service,  any  charges by the vendor for transportation, transmission or
    13  distribution, regardless of whether such charges are  separately  stated
    14  in  the  written  contract,  if  any,  or  on  the bill rendered to such
    15  purchaser and regardless of whether such shipping or delivery or  trans-
    16  portation, transmission, or distribution is provided by such vendor or a
    17  third  party,  but  excluding  any credit for tangible personal property
    18  accepted in part payment and intended  for  resale.  For  special  rules
    19  governing  computation of receipts, see section eleven hundred eleven of
    20  this article.
    21    (ii) Receipt shall include consideration received by the  vendor  from
    22  third parties if:
    23    (A)  The  vendor  receives  consideration  from a party other than the
    24  purchaser and the consideration is directly related to a price reduction
    25  or discount on the sale;
    26    (B) The vendor has an obligation to pass through to the purchaser  the
    27  price reduction or discount;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15757-01-0
        A. 10091                            2

     1    (C)  The amount of the consideration attributable to the sale is fixed
     2  and determinable by the vendor at the time of the sale of  the  item  to
     3  the purchaser; and
     4    (D) One of the following criteria is met:
     5    (I)  the  purchaser presents a coupon, certificate or other documenta-
     6  tion to the vendor to claim a price  reduction  or  discount  where  the
     7  coupon,  certificate  or  documentation  is  authorized,  distributed or
     8  granted by a third party with the understanding  that  the  third  party
     9  shall reimburse any vendor to whom the coupon, certificate or documenta-
    10  tion is presented;
    11    (II)  the  purchaser presents identification as a member of a group or
    12  organization entitled to a price reduction or discount; or
    13    (III) the price reduction or discount is identified as a  third  party
    14  price  reduction or discount on the invoice received by the purchaser or
    15  on a  coupon,  certificate  or  other  documentation  presented  by  the
    16  purchaser.
    17    (iii)  Subclause (II) of clause (D) of subparagraph (ii) of this para-
    18  graph shall not apply to employee discounts that  are  reimbursed  by  a
    19  third party on sales of motor vehicles.
    20    (iv)  For the purposes of subclause (II) of clause (D) of subparagraph
    21  (ii) of this paragraph, "identification as a member of a group or organ-
    22  ization entitled to a price reduction or discount" shall not include the
    23  presentation of a customer loyalty or related rewards program card.
    24    § 2. This act shall take effect immediately and shall apply to all tax
    25  periods for which (a) the statute of limitations for seeking a refund or
    26  assessing additional tax are still open under the tax  law  or  (b)  for
    27  which any claim could be made under the New York false claims act.