Removes college textbooks from the imposed on certain internet providers that use websites for the sale of tangible personal property

Title of bill

An act to amend the tax law, in relation to removing college textbooks from the tax on certain internet providers that use websites for the sale of tangible personal property

Purpose

To remove college textbooks from the requirement that certain online stores collect sales tax on tangible property purchased by state residents.

Summary of provisions

Section 1 amends subparagraph (vi) of paragraph 8 of subdivision (b) of section 1101 of the tax law to remove textbooks from qualifying as tangible property for the purposes of the subparagraph that orders certain online stores to collect sales tax on tangible property sold via the internet.

Section 2 amends the opening paragraph of paragraph 34 of subdivision (a) of section 1115 of the tax law to establish that a college student has to show a valid student identification card to be eligible for tax free online purchase of course textbooks.

Section 3 provides for an immediate effective date.

Justification

The rising cost of tuition and related expenses for many two-year and four-year degrees is putting college out of reach for many students or burdening them and their families with years of debt payments. One of the areas where prices have risen rapidly is college textbooks. A typical undergraduate can expect to pay $400-$800 per semester on required textbooks, or about $4,000 over the course of a four-year degree program for a combination of new and used books. By removing college textbooks from the tax on tangible property sold by certain online stores, that was added to the laws of this state in 2008, this legislation will take an important first step in helping keep down the cost of college textbooks on-line, where such textbooks can often be found for a cheaper price. Additionally, this legislation will create a tax equity since college textbooks purchased on campus are tax exempt.