What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Print number 8170a
- Amend and recommit to rules
- Referred to rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the use of fulfillment services of certain persons
Purpose
To provide that a foreign corporation does not subject itself to New York State taxation simply by virtue of the use of fulfillment services other than an affiliated person
Summary of provisions
Section 1 amends section 208 of the Tax Law to add a new paragraph 13 to define fulfillment services.
Section 2 amends subdivision 2 of section 209 of the Tax Law to add to the list of activities that will not deem a foreign corporation to be doing business, employing capital, owning or leasing property, or maintaining an office in the state, or deriving receipts from activity in this state, for the purposes of Article 9 of the Tax Law paragraph (f) the use of fulfillment services of a person other than an affiliated person and the ownership of property stored on the property of such person in conjunction with such services.
Section 2 contains the effective date.
Justification
Prior to January 1, 2015, the Tax Law contained language similar to that contained in this bill. By virtue of legislation in 2014, this language was removed from the Tax Law.
Unfortunately, fulfillment services are very cost sensitive and extremely mobile. They can usually store goods in warehouses in any of the states surrounding New York just as easily as in New York, and if using New York warehouses subject these foreign companies to expensive New York taxes, there is in most cases simply no reason for them to locate or remain in New York, and ample reason to leave.
The upshot of this is that with the changes in law passed in 2014, which took effect in 2015, fulfillment operations in New York are closing. The workers who were employed at these facilities are losing their jobs. The owners of the warehouses are losing their tenants. With warehouse buildings becoming vacant, localities potentially face reductions in their assessment rolls. New York faces diminishing tax benefits as the fulfillment industry leaves the state.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect January 1, 2017 and shall apply to taxable years commencing after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.