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History
- Referred to investigations and government operations
Full text
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Sponsor's memo
BILL NUMBER:S2317
Title of bill
An act to amend the tax law, in relation to authorizing the operation of a toll-free hotline for the public to use to relay information concerning the failure to collect sales and compensating use taxes
Purpose or general idea of bill
This legislation directs the Commissioner of Taxation and Finance to establish a hot line number for consumers to call and report a case of sales tax evasion or sales tax fraud on the part of a merchant. If the Consumer's report leads to a subsequent investigation and a fine is levied by the Department of Taxation and Finance, the consumer is to receive an award equal to 10% of the fine levied and the taxes collected.
Summary of provisions
This bill amends section 1817 of the Tax Law by adding a new subdivision to require the Commissioner of Taxation and Finance to establish and operate a toll-free hot line for the public to use to relay information concerning the failure of any person to collect sales tax. To ensure the confidentiality of the person reporting the infraction, a case number will be assigned to each report and communication shall be referenced solely according to such case number. The Commissioner shall pay rewards of ten percent of the tax collected and the fine levied as a result of the report.
Justification
According to recent figures, New York State could lose in excess of $600 million dollars a year as a result of sales tax evasion. Merchants who fail to collect the appropriate sales tax harm both the state's tax coffers and their competitors in the market. This bill will give a monetary incentive to consumers to report a sales tax violation that they have witnessed or experienced. The confidentiality of the person reporting the infraction is ensured through the assignment of a case number.
Fiscal implications
Minimal.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law except that any rules or regulations necessary for the timely implementation of this act on its effective date may be promulgated before such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.