What's happening
This bill requires a study on having credit and debit card issuers collect and pay sales taxes directly to the state.
Why it matters
Could lead to major changes in how sales taxes are collected. If adopted, the shift from relying on thousands of individual vendors to credit/debit card issuers could centralize the process, potentially making tax collection more efficient and reducing errors or fraud.
May impact businesses and consumers. Direct collection by card issuers could reduce the administrative burden on small businesses, but it might also introduce new fees or technical requirements, potentially affecting costs and how transactions are processed.
Explores the feasibility and costs of new technology. The study will examine what technology would be necessary for real-time tax remittance at the point of sale, and whether the benefits would outweigh the costs of implementing such a system.
Could influence future tax policy and enforcement. Depending on the study’s findings, this could set a precedent for other states or forms of taxation, potentially modernizing tax collection beyond just sales and use taxes.
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Who cares
Headline styles
Study Credit Card Tax Collection
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4963
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT requiring the commissioner of taxation and finance to conduct a study on requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and to pay such taxes directly to such commissioner
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Study on credit card companies collecting certain taxes. 1. The commissioner of taxation and finance is authorized and directed to conduct a study on requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and pay such taxes directly to such commissioner.
2. Such study shall include but not be limited to an investigation of the current system which relies solely upon the thousands of vendors to voluntarily remit such sales taxes, methods to improve the collection of sales taxes from credit card and debit card issuers, the technology that would be required to implement a system of direct payment to the commissioner of taxation and finance, and the cost of implementing such a system.
3. Such study shall be submitted to the legislature on or before April 15, 2019.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07206-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act requiring the commissioner of taxation and finance to conduct a study on requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and to pay such taxes directly to such commissioner
Purpose
To require the Commissioner of Taxation and Finance to conduct a study regarding the steps necessary for issuers of credit and debit cards to submit sales and use taxes directly to the commissioner.
Summary of provisions
Section 1. Authorizes and directs the commissioner of taxation to conduct a study on requiring issuers of credit and debit cards to pay and collect sales and use taxes and to pay such taxes directly to the commissioner. Describes the contents of such study. Requires such study to be submitted to the legislature on or before April 15, 2017.
Section 2. Effective Date
Justification
A major source of failure to comply with New York State sales taxes being remitted to the State from vendors who collect such taxes from their customers, is the current system which relies solely upon the thousands of vendors to voluntarily remit such sales taxes. However, the companies that issue credit and debit cards have continuously opposed any attempts to change the current system.
This bill would require the Commissioner of Taxation and Finance to conduct a study of the current system, methods to improve the collection of sales taxes, the technology that would be required to implement a system of direct payment and the cost of implementing such a system.
Legislative history
2016: S.237A - AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS/ A6756-A - amend and recommit to ways and means 2015: S.237 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS/ A6756-A referred to ways and means 2014: S.150-A Amend and Recommit to Investigations and Government Operations/ A.4406A - Held for consideration in Ways and Means 2013: S.150 - Referred to Investigations and Government Operations/A.4406 - Referred to Ways and Means 2012: S5310-A - Amend and recommit to Investigations and Government Operations/A.7611-A - Held for Consideration in Ways and Means 2011 - S.5310 - Referred to Investigations and Government Operations/A.7611 Referred to Ways and Means
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.