Relates to the sales tax vendor credit

BILL NUMBER:S3129

Title of bill

An act to amend the tax law, in relation to the sales tax vendor credit

Purpose or general idea of bill

The purpose of the bill is to decrease the vendor credit under the sales tax, with a corresponding elimination in the cap. Currently, the vendor allowance is calculated at a rate of five percent, with a cap of $200 per quarter.

Summary of specific provisions

Section one - Amends paragraph 2 of subdivision (f) of Section 1137 of the tax law amends paragraph f of to decrease the vendor credit rate to one half of one percent. It would also eliminate the cap on the calculation of the credit.

Section Two - Effective date.

Justification

The current vendor credit has not been increased since 2006. These rates are no longer reflective of the costs and responsibilities vendors incur in collecting the sales tax on behalf of the state. This bill recognizes these cost, and that businesses should be fairly reimbursed for fulfilling their role as a collection agent for the State of New York.

Prior legislative history

S.7468 (2013-14); Referred to Investigations and Government Operations

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first day of the quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least 90 days after the date this act shall have become law.