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History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 52–6
- Ordered to third reading cal.1365
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the tax on certain tobacco products
In Assembly Committee · Ways And Means · Sponsor Michelle Schimel
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7022 REVISED 05/01/12
Title of bill
An act to amend the tax law, in relation to the tax on certain tobacco products
Purpose
This bill changes the timing of the imposition, reporting and payment of the tax on tobacco products to provide the state with a stream of revenue it can depend upon, allowing the state to continue collecting revenue, and establishing ourselves as more competitive to surrounding states on cigars and other tobacco products.
Summary of provisions
Section 1 of the bill amends the opening paragraph of subdivision 1 of Tax Law §471-b to change the tax on tobacco products from being imposed on the importation and possession of tobacco products in the state for sale to being imposed on tobacco products sold, shipped or delivered within the state.
Section 2 of the bill amends subdivision 1 of Tax Law § 473-a to change the distributors' reporting requirements to conform to the amendment made by section 1 of this bill.
Existing law
Section 471-b and 473-a of the tax law.
Justification
New York companies that manufacture, distribute and sell cigars are an important part of the State's economy, providing well-paying jobs, and paying significant amounts in taxes to the State and local governments. Changing the timing of the imposition, reporting and payment of the tax on tobacco products will help small business owners across the state remain in business in New York State. By simply changing the timing this will enable small cigar shops across New York State to remain competitive with surrounding states. The bill will increase their revenue, enable them to carry more products and thus increase tax revenues on their products. This measure will save jobs in New York, have no negative budgetary ramifications and reduce the demand for purchases over the Internet.
Currently, some New York consumers are avoiding the high tax by purchasing the cigars over the Internet, or from non-taxed sources such as Native American smoke shops. Some consumers can also go to neighboring states with lower tax rates including Pennsylvania (which does not tax cigars), Connecticut (which levies a 50% tax or a 50 cent cap), New Jersey or Massachusetts (both which levy a 30% tax).
Fiscal implications
The net impact of this bill is an increase in tax revenue.
Effective date
This act will take effect on the first day of the month next commencing at least ninety days after his act shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.