What's happening
This bill reduces the sales tax rate from 4% to 2% on goods or services bought from small, locally owned businesses in New York.
Why it matters
Targets support to truly small, local businesses. The bill specifically defines eligible businesses as those employing 20 or fewer people, that are resident in New York, independently owned, and not dominant in their field—ensuring the tax break goes to genuinely small, local operations rather than larger or chain businesses.
Could shift consumer spending. By lowering the sales tax for qualifying small businesses, the bill may incentivize consumers to shop at local stores instead of national chains or online retailers, potentially increasing revenue and foot traffic for neighborhood businesses.
Impacts local economies and entrepreneurship. The measure aims to strengthen local economies by making small businesses more competitive, which could encourage entrepreneurship and help keep more money circulating within New York communities.
Potential effects on state revenue and tax fairness. While benefiting small businesses, the bill may reduce overall sales tax revenue collected by the state and could raise questions about fairness and complexity in tax administration, requiring clear guidelines and enforcement to distinguish which businesses qualify.
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Who cares
Headline styles
Cut Sales Tax for Small Business
Plain English, a few words. Used as the page title.
Sponsors
22 Co-sponsors
- Carrie Woerner
- Felix Ortiz
- William Colton
- Marianne Buttenschon
- Catalina Cruz
- Fred Thiele
- Michael Blake
- Michael G. Miller
- Alicia Hyndman
- Nathalia Fernandez
- Steve Stern
- Marcos Crespo
- Inez E. Dickens
- Robert Smullen
- Jake Ashby
- Michael Montesano
- Joe DeStefano
- Andrew Raia
- Nader Sayegh
- Albert A. Stirpe
- Judy Griffin
- Yuh-Line Niou
History
- Referred to ways and means
- Print number 7204a
- Amend (t) and recommit to ways and means
- 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.
Cut Sales Tax for Small Businesses
In Senate Committee · Budget And Revenue · Sponsor Andrew Gounardes
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7204--A
2019-2020 Regular Sessions
IN ASSEMBLY
April 12, 2019
Introduced by M. of A. SIMON, WOERNER, ORTIZ, COLTON, BUTTENSCHON, CRUZ, THIELE, BLAKE, M. G. MILLER, HYNDMAN, FERNANDEZ, STERN, CRESPO, DICK- ENS -- Multi-Sponsored by -- M. of A. ABBATE, COOK -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the imposition of sales taxes on goods or services purchased from certain businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of section 1105 of the tax law, as amended by chapter 72 of the laws of 1971, is amended to read as follows:
On and after June first, nineteen hundred seventy-one, there is hereby imposed and there shall be paid a tax of four percent; provided, however, that when the goods or services are purchased from a business which employs twenty or less persons, is resident in this state, is independently owned and operated and is not dominant in its field, the amount of tax paid on such sale shall be two percent, upon:
§ 2. This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least 90 days after this act shall have become a law and shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09206-05-9
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.