Bill Text: NY S09078 | 2019-2020 | General Assembly | Introduced


Bill Title: Exempts from sales and compensating use taxes and establishes a tax credit for any equipment or product, including materials used in the construction of physical barriers, purchased by a small business doing business in this state that is directly used by such small business to comply with a COVID-19 health and safety plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-11-02 - REFERRED TO RULES [S09078 Detail]

Download: New_York-2019-S09078-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9078

                    IN SENATE

                                    November 2, 2020
                                       ___________

        Introduced  by  Sen.  KAPLAN -- 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  exempting  from  sales  and
          compensating use taxes and establishing a tax credit for any equipment
          or product purchased by a small business that is used to comply with a
          COVID-19 health and safety plan

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

     1    Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
     2  by adding a new paragraph 46 to read as follows:
     3    (46)  Any  equipment  or  product,  including  materials  used  in the
     4  construction of physical barriers, including but not limited to  plastic
     5  shielding  walls,  strip  curtains, cubicle walls, plexiglass or similar
     6  materials, or other impermeable dividers or partitions, purchased  by  a
     7  small  business  doing  business  in this state that is directly used by
     8  such small business to be in compliance with a COVID-19 health and safe-
     9  ty plan. For purposes of this paragraph, the term "small business" shall
    10  mean a business with one hundred or fewer employees.
    11    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    12  sion 55 to read as follows:
    13    55.  Sales  tax  paid on materials for COVID-19 health and safety plan
    14  compliance. (1) For the period beginning  May  fifteenth,  two  thousand
    15  twenty  and ending on the effective date of this subdivision, a taxpayer
    16  who owns a small business shall be allowed a credit for sales  tax  paid
    17  for   any   equipment  or  product,  including  materials  used  in  the
    18  construction of physical barriers, including but not limited to  plastic
    19  shielding  walls,  strip  curtains, cubicle walls, plexiglass or similar
    20  materials, or other impermeable dividers  or  partitions,  purchased  by
    21  such  small business in order to be in compliance with a COVID-19 health
    22  and safety plan.
    23    (2) If the amount of the credit allowed under this subdivision for any
    24  taxable year shall exceed the small business's tax for  such  year,  the
    25  excess  shall  be  treated  as  an  overpayment of tax to be credited or
    26  refunded in accordance with the provisions of section six hundred eight-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD17524-03-0

        S. 9078                             2

     1  y-six of this chapter, provided, however, that no interest shall be paid
     2  thereon.
     3    (3)  For purposes of this subdivision, the term "small business" shall
     4  mean a business with one hundred or fewer employees.
     5    § 3. Section 606 of the tax law is amended by adding a new  subsection
     6  (kkk) to read as follows:
     7    (kkk)  Sales tax paid on materials for COVID-19 health and safety plan
     8  compliance. (1) For the period beginning  May  fifteenth,  two  thousand
     9  twenty  and  ending on the effective date of this subsection, a taxpayer
    10  who owns a small business shall be allowed a credit for sales  tax  paid
    11  for   any   equipment  or  product,  including  materials  used  in  the
    12  construction of physical barriers, including but not limited to  plastic
    13  shielding  walls,  strip  curtains, cubicle walls, plexiglass or similar
    14  materials, or other impermeable dividers  or  partitions,  purchased  by
    15  such  small business in order to be in compliance with a COVID-19 health
    16  and safety plan.
    17    (2) If the amount of the credit allowed under this subsection for  any
    18  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    19  shall be treated as an overpayment of tax to be credited or refunded  in
    20  accordance with the provisions of section six hundred eighty-six of this
    21  article, provided, however, that no interest shall be paid thereon.
    22    (3)  For  purposes of this subsection, the term "small business" shall
    23  mean a business with one hundred or fewer employees.
    24    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    25  of  the  tax  law  is  amended  by adding a new clause (xlvi) to read as
    26  follows:
    27  (xlvi) Sales tax paid on materials   Sales tax paid on
    28  for COVID-19 health and safety       materials for
    29  plan compliance under                COVID-19 health
    30  subsection (kkk)                     and safety plan
    31                                       compliance under
    32                                       subdivision fifty-five
    33                                       of section two
    34                                       hundred ten-B
    35    § 5. This act shall take effect on the first  day  of  the  sales  tax
    36  quarterly  period commencing after this act shall have become a law, and
    37  shall apply to sales made and uses occurring on and after such  date  in
    38  accordance  with applicable transitional provisions of sections 1106 and
    39  1217 of the tax law; provided that  the  commissioner  of  taxation  and
    40  finance  shall  be  authorized on and after the date this act shall have
    41  become a law to take steps necessary to implement the provisions of this
    42  act on its effective date.
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