Bill Text: NY S08819 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to exempting certain out-of-state businesses and employees temporarily providing COVID-19 relief during the declared state of emergency from state taxes and fees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-07-20 - REFERRED TO RULES [S08819 Detail]
Download: New_York-2019-S08819-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8819 IN SENATE July 20, 2020 ___________ Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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 the COVID-19 state of emergency 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 4 WELCOME HEROES TAX RELIEF ACT 5 Section 3100. Short title. 6 3101. Definitions. 7 3102. Business and employee status during COVID-19 period. 8 3103. Transaction taxes and fees. 9 3104. Business or employee activity after COVID-19 period. 10 3105. Notification of out-of-state business during COVID-19 11 period. 12 3106. Notification of intent to remain in state. 13 3107. Severability. 14 § 3100. Short title. This article shall be known and may be cited as 15 the "Welcome Heroes Tax Relief Act of 2020". 16 § 3101. Definitions. For purposes of this article, the following terms 17 shall have the following meanings: 18 1. "Registered business in the state" (or "registered business") means 19 a business entity that is currently registered to do business in this 20 state prior to the declared COVID-19 state emergency. 21 2. "Out-of-state business" means a business entity that has no pres- 22 ence in this state and conducts no business in this state, whose 23 services are only sought, obtained or requested by a registered business 24 or by this state or a local government for purposes of performing 25 COVID-19 emergency related work or services in this state. Out-of-state EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16872-01-0S. 8819 2 1 business shall also include a business entity that is affiliated with a 2 registered business in this state solely through common ownership. The 3 out-of-state business has no registrations or tax filings or nexus in 4 this state prior to the declared COVID-19 emergency. 5 3. "Out-of-state employee" means an employee who does not work in this 6 state, except for COVID-19 emergency related work or services during the 7 COVID-19 period and is only present in this state during the COVID-19 8 period to provide the COVID-19 emergency related work or services. 9 4. "Commissioner" means commissioner of the department of taxation and 10 finance. 11 5. "Declared COVID-19 state emergency" means the state of emergency 12 declared by Governor Andrew Cuomo on March seventh, two thousand twenty 13 in response to the outbreak of the novel coronavirus, COVID-19 in New 14 York State. 15 6. "COVID-19 period" means the period beginning March seventh, two 16 thousand twenty and ending on June thirtieth, two thousand twenty or for 17 any longer period authorized by the commissioner. 18 7. "COVID-19 emergency related work or services" means providing the 19 management, treatment, transfer, care, and/or cure of individuals 20 suffering from novel coronavirus, COVID-19, and includes work and 21 services supporting the management, treatment, transfer and/or care of 22 such individuals suffering from novel coronavirus, COVID-19. 23 § 3102. Business and employee status during COVID-19 period. 1. An 24 out-of-state business that conducts operations within this state for 25 purposes of performing COVID-19 emergency related work or services 26 during the COVID-19 period shall not be considered to have established a 27 level of presence that would require that business to register, file 28 and/or remit state or local taxes or that would require that business or 29 its out-of-state employees to be subject to any state licensing or 30 registration requirements. This includes any and all state or local 31 business licensing or registration requirements or state and local taxes 32 or fees including, but not limited to, unemployment insurance, sales and 33 use tax or ad valorem tax on equipment used or consumed during the 34 COVID-19 period. For purposes of any state or local tax on or measured 35 by, in whole or in part, net or gross income or receipts, all activity 36 of the out-of-state business that is conducted in this state pursuant to 37 this article shall be disregarded with respect to any filing require- 38 ments for such tax including the filing required for a unitary or 39 combined group of which the out-of-state business may be a part. 40 2. Any out-of-state employee as defined in subdivision three of 41 section thirty-one hundred one of this article shall not be considered 42 to have established residency or a presence in this state that would 43 require that person or that person's employer to file and pay income 44 taxes or to be subjected to tax withholdings or to file and pay any 45 other state or local tax or fee during the disaster period. This 46 includes any related state or local employer withholding and remittance 47 obligations. 48 § 3103. Transaction taxes and fees. Out-of-state businesses and out- 49 of-state employees shall be required to pay transaction taxes and fees 50 including, but not limited to, fuel taxes or sales and compensating use 51 taxes on materials or services subject to sales and compensating use 52 taxes, hotel taxes, car rental taxes or fees that the out-of-state 53 affiliated business or out-of-state employee purchases for use or 54 consumption in this state during the COVID-19 period, unless such taxes 55 are otherwise exempted during the COVID-19 period.S. 8819 3 1 § 3104. Business or employee activity after COVID-19 period. Any out- 2 of-state business or out-of-state employee that remains in this state 3 after the COVID-19 period will become subject to this state's normal 4 standards for establishing presence, residency or doing business in the 5 state and will therefore become responsible for any business or employee 6 tax requirements that ensue. 7 § 3105. Notification of out-of-state business during COVID-19 period. 8 1. The out-of-state business that enters this state shall, upon request, 9 provide the department with a statement that it is in this state for 10 purposes of responding to declared COVID-19 state of emergency, which 11 statement shall include the business' name, state of domicile, principal 12 business address, federal tax identification number, date of entry, and 13 contact information. 14 2. A registered business in this state shall, upon request, provide 15 the information required in subdivision one of this section for any 16 affiliate that enters this state that is an out-of-state business. The 17 notification shall also include contact information for the registered 18 business in this state. 19 § 3106. Notification of intent to remain in state. An out-of-state 20 business or an out-of-state employee that remains in this state after 21 the COVID-19 period shall complete state and local registration, licens- 22 ing and filing requirements that ensue as a result of establishing the 23 requisite business presence or residency in this state applicable under 24 the existing rules. 25 § 3107. Severability. If any clause, sentence, paragraph, section or 26 part of this article shall be adjudged by any court of competent juris- 27 diction to be invalid, the judgment shall not affect, impair, or invali- 28 date the remainder thereof, but shall be confined in its operation to 29 the clause, sentence, paragraph, section or part thereof directly 30 involved in the controversy in which the judgment shall have been 31 rendered. 32 § 2. This act shall take effect immediately and shall be deemed to 33 have been in full force and effect on and after March 7, 2020; provided, 34 however, the commissioner of taxation and finance is authorized to 35 promulgate any rules or regulations, and develop and issue forms or 36 online processes necessary for the timely implementation of this act.
