What's happening
The bill exempts certain businesses in tax-free NY areas from sales and use taxes for up to 120 months.
Why it matters
Direct exemption from sales and use taxes. Instead of requiring businesses to apply for credits or refunds, the bill grants an upfront exemption, simplifying compliance and cash flow for eligible companies.
Long-term tax relief for new businesses. The exemption lasts for up to 120 consecutive months (10 years), providing a significant financial incentive for businesses to locate and stay in tax-free NY areas.
Potential to boost local economic development. By making these areas more attractive for business investment, the bill could stimulate job creation, regional growth, and economic activity in targeted regions.
Streamlines administration for state and business. Moving from a credit/refund system to an exemption reduces administrative burden for both businesses and state agencies, potentially making the program more efficient and accessible.
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Who cares
Headline styles
End Sales Tax for Businesses
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
8365
IN SENATE
May 3, 2018
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to tax benefits for businesses located in tax-free NY areas
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (f) of section 39 of the tax law, as added by section 2 of part A of chapter 68 of the laws of 2013, is amended to read as follows:
(f) Sales and use tax. Such business shall be [eligible for a credit or refund for sales and use taxes imposed] exempt from sales and compensating use taxes imposed under articles twenty-eight and twenty-nine of this chapter on the retail sale of tangible personal property or services under subdivisions (a), (b), and (c) of section eleven hundred five and section eleven hundred ten of this chapter and similar taxes imposed pursuant to the authority of article twenty-nine of this chapter. The [credit or refund] exemption shall be allowed for one hundred twenty consecutive months beginning with the month during which such business locates in the tax-free NY area.
§ 2. Subdivision (a) of section 1116 of the tax law is amended by adding a new paragraph 10 to read as follows:
(10) A business approved pursuant to article twenty-one of the economic development law for a period of up to one hundred twenty consecutive months.
§ 3. This act shall take effect on the first day of the second sales tax quarter following the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14973-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to tax benefits for businesses located in tax-free NY areas
Purpose
This bill would amend the START-UP NY program to change the sales tax refund or credit that eligible firms are granted to a sales tax exemption. This change would save these nascent job creators substantial time and regulatory savings, and provide a degree of cash flow relief.
Summary of provisions
Section one of the bill would amend subdivision (f) of section 39 of the Tax Law to change the current sales tax credit or refund available to eligible START-UP NY firms to a sales tax exemption under the same conditions that the current credit or refund is allowed.
Section 2 provides for the exemption in Article 28 of the Tax Law by adding a new paragraph 10 to subdivision (a) of section 1116. This para- graph would authorize an exemption for one hundred and twenty consec- utive months to align with the current credit or refund period.
Section 3 provides an effective date on the first day of the second sales tax quarter following the date on which it shall have become law.
Justification
Currently, START-UP NY certified companies are eligible for a credit or refund on sales and used taxes imposed on the retail sale of business activity related retail sale of tangible personal property or services for a period of one hundred and twenty consecutive months. Although, the credit or refund of these taxes provide an undoubted benefit for these firms, many START-UP NY companies are completely new and small busi- nesses that find the refund process very time consuming and a substan- tial regulatory hassle.
This bill will change the credit or refund to an exemption covering the same products and services saving these crucial job creators, time, effort, while also providing a small measure of cash flow relief.
Legislative history
This is a new bill.
Fiscal implications
None.
Effective date
This act shall take effect on the first day of the second sales tax quarter following the date on which it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.