What's happening
This bill allows businesses to advertise paying sales tax on behalf of customers, but requires clear disclosure of the tax amount on receipts.
Why it matters
Allows businesses to absorb and advertise payment of the sales tax for customers, but only if they clearly disclose on receipts and bills both that the business is paying the tax and the exact amount of tax involved. This means customers will know the true tax component, even if not paying directly, which improves price transparency.
Prevents misleading advertising by requiring that businesses cannot imply a transaction is tax-exempt or excluded from taxes when absorbing the tax for the customer. This helps consumers make informed decisions and prevents confusion about the tax status of their purchases.
Makes businesses solely responsible for the sales tax if they choose to pay it on behalf of customers, regardless of other tax law provisions. This removes any ambiguity about liability for the tax and ensures the state collects the appropriate tax revenue.
Strengthens enforcement by making it a misdemeanor for businesses to fail to properly state the tax amount on receipts or to reference the tax in non-permitted ways. This incentivizes compliance and protects consumers from deceptive pricing practices.
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Who cares
Retailers and other sales tax collectors
The bill would let them advertise that they will pay a customer’s tax, provided their receipts disclose that commitment, separately state the tax and do not imply the transaction is tax-exempt.
Customers offered seller-paid tax promotions
The bill would require written disclosure of the seller’s promise and the tax amount, and make the seller solely liable for that tax.
Amusement operators collecting tax
The bill would apply the same disclosure requirements and liability rules when they offer to pay tax on customers’ amusement charges.
Tax enforcement officials
The bill would extend the misdemeanor provision for willfully failing to separately state tax to receipts and other price statements issued under the seller-paid tax provisions.
Headline styles
Require Tax Disclosure On Receipts
Plain English, a few words. Used as the page title.
Sponsors
17 Co-sponsors
4 Multi-sponsors
History
- Enacting clause stricken
- Referred to ways and means
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.
Require Tax Disclosure on Receipts
Stricken · Sponsor Toby Ann Stavisky
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6328
2019-2020 Regular Sessions
IN ASSEMBLY
March 5, 2019
Introduced by M. of A. BUCHWALD, EICHENSTEIN -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to required disclosure on a bill, memorandum, receipt or other statement of price
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subdivision (a) of section 1132 of the tax law, as amended by chapter 255 of the laws of 1998, is amended to read as follows:
(1) [Every] Notwithstanding any provision of this chapter to the contrary, every person required to collect the tax shall collect the tax from the customer when collecting the price, amusement charge or rent to which it applies. If the customer is given any sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent paid or payable, the tax shall be stated, charged and shown separately on the first of such documents given to him. The tax shall be paid to the person required to collect it as trustee for and on account of the state.
§ 2. Subdivision (d) of section 1133 of the tax law, as added by chapter 93 of the laws of 1965, is amended to read as follows:
(d) No person required to collect any tax imposed by this article shall advertise [or], hold out, or state to a customer or to the public in any manner, directly or indirectly, that the tax imposed by this article is not considered as an element in the price, amusement charge or rent payable by customers. However, a person required to collect any tax imposed by this article may advertise, hold out, or state to a customer or to the public in any manner, directly or indirectly, that such person required to collect tax will pay the tax imposed by this article on behalf of a customer, subject to the following conditions:
(i) In so advertising, holding out, or stating to a customer or to the public, such person shall expressly state on any bill, memorandum,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10152-01-9
A. 6328 2
receipt or other statement of the price, amusement charge or rent paid or payable given to such customer that such person will pay the tax imposed by this article on behalf of such customer and shall not indicate or imply that the transaction is exempt or excluded from any tax imposed by this article; and
(ii) Any bill, memorandum, receipt or other statement of the price, amusement charge or rent paid or payable given to such customer shall separately state the amount of such tax.
If any person directly or indirectly advertises, holds out, or states to a customer or to the public that such person will pay the tax for the customer, subject to the conditions set forth above, such person will be solely responsible and liable for any tax imposed by this article, notwithstanding any provision of this article to the contrary.
§ 3. Subdivision (d) of section 1817 of the tax law, as amended by section 30 of subpart I of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows:
(d) Any person (1) who willfully fails to [charge] separately state the tax imposed under article twenty-eight of this chapter [or to state such tax separately] on any bill, [statement,] memorandum [or], receipt or other statement issued or employed by him upon which the tax is required to be stated separately as provided in subdivision (a) of section eleven hundred thirty-two and paragraph (ii) of subdivision (d) of section eleven hundred thirty-three of this chapter; or (2) who shall refer or cause reference to be made to such tax in a form or manner other than that required or permitted by such article twenty-eight, shall be guilty of a misdemeanor.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.