Bill Text: NY S04301 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to the use of fulfillment services of certain persons.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S04301 Detail]

Download: New_York-2019-S04301-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4301
                               2019-2020 Regular Sessions
                    IN SENATE
                                      March 7, 2019
                                       ___________
        Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
          when printed to be committed to the Committee on Budget and Revenue
        AN ACT to amend the tax law, in  relation  to  the  use  of  fulfillment
          services of certain persons
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 208 of the tax law  is  amended  by  adding  a  new
     2  subdivision 13 to read as follows:
     3    13.  The  term  "fulfillment services" shall mean any of the following
     4  services performed by an entity on its premises on behalf of a  purchas-
     5  er:
     6    (a)  the  acceptance  of  orders electronically or by mail, telephone,
     7  telefax or internet;
     8    (b) responses to consumer correspondence or inquires electronically or
     9  by mail, telephone, telefax or internet;
    10    (c) billing and collection activities; or
    11    (d) the shipment of orders from an inventory of products  offered  for
    12  sale by the purchaser.
    13    §  2.  Subdivision  2  of  section  209  of the tax law, as amended by
    14  section 5 of part A of chapter 59 of the laws of  2014,  is  amended  to
    15  read as follows:
    16    2.  A  foreign  corporation  shall not be deemed to be doing business,
    17  employing capital, owning or leasing property, or maintaining an  office
    18  in this state, or deriving receipts from activity in this state, for the
    19  purposes  of  this  article,  by  reason  of (a) the maintenance of cash
    20  balances with banks or trust companies in this state, or (b) the  owner-
    21  ship  of  shares of stock or securities kept in this state, if kept in a
    22  safe deposit box,  safe,  vault  or  other  receptacle  rented  for  the
    23  purpose,  or if pledged as collateral security, or if deposited with one
    24  or more banks or trust companies, or brokers who are members of a recog-
    25  nized security exchange, in safekeeping or custody accounts, or (c)  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01733-01-9
        S. 4301                             2
     1  taking  of any action by any such bank or trust company or broker, which
     2  is incidental to the rendering of safekeeping or  custodian  service  to
     3  such  corporation,  or (d) the maintenance of an office in this state by
     4  one or more officers or directors of the corporation who are not employ-
     5  ees  of  the corporation if the corporation otherwise is not doing busi-
     6  ness in this state, and does not employ capital or own or lease property
     7  in this state, or (e) the keeping of books or records of  a  corporation
     8  in this state if such books or records are not kept by employees of such
     9  corporation  and such corporation does not otherwise do business, employ
    10  capital, own or lease property or maintain an office in this  state,  or
    11  (f)  the  use  of  fulfillment  services,  provided  receipts, including
    12  receipts pursuant to such services, do not exceed the threshold  set  by
    13  paragraph (b) of subdivision one of this section, of a person other than
    14  an  affiliated  person and the ownership of property stored on the prem-
    15  ises of such person in conjunction with such services, or (g) any combi-
    16  nation of the foregoing activities. For purposes  of  this  subdivision,
    17  persons  are  affiliated persons with respect to each other where one of
    18  such persons has an ownership interest of more than five percent, wheth-
    19  er direct or indirect, in the other, or where an ownership  interest  of
    20  more  than  five  percent,  whether direct or indirect, in the other, or
    21  where an ownership interest of more than five percent, whether direct or
    22  indirect, is held in each of such persons by  another  person  or  by  a
    23  group of other persons which are affiliated persons with respect to each
    24  other.  The term "person" in the preceding sentence and in paragraph (f)
    25  of this subdivision shall have the meaning ascribed thereto by  subdivi-
    26  sion (a) of section eleven hundred one of this chapter.
    27    §  3.  This  act  shall take effect January 1, 2020 and shall apply to
    28  taxable years commencing on or after such date.