What's happening
This bill allows local governments in New York to exempt mobile telecommunications services from sales and use taxes if they choose.
Why it matters
Potential for Lower Wireless Bills. By allowing local governments to exempt mobile telecommunications services from local sales and use taxes, this bill could directly reduce the cost of cell phone plans for consumers in areas that choose to adopt the exemption, making mobile connectivity more affordable.
Local Control and Flexibility. The bill gives cities, counties, and school districts the power to decide for themselves whether to offer the tax exemption, rather than imposing a one-size-fits-all state mandate. This empowers local governments to tailor tax policy to their communities’ needs and economic conditions.
Economic and Competitive Impact. Removing or reducing local taxes on mobile services could make certain regions more attractive to residents, businesses, and wireless providers, potentially stimulating local economies and encouraging tech industry growth or retention.
Potential Revenue Tradeoff. While consumers may benefit from lower taxes, local governments considering the exemption will need to weigh the potential loss of tax revenue against possible economic gains, which could affect funding for public services if not offset by other sources.
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
Cell phone customers
The bill would broaden the state sales tax exemption for mobile telecommunications service by removing the restriction based on a customer's primary place of use outside New York, while excluding the exemption from taxes imposed under section 1109.
Mobile telecommunications providers
Providers would need to apply the expanded state exemption and account for whether local jurisdictions elect to exempt the service.
Cities, counties and school districts
Their governing bodies could choose to exempt mobile telecommunications service from local sales and compensating use taxes, with local exemptions taking effect on March 1 of a year no earlier than 2020.
Headline styles
Cut Cell Phone Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
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 Cell Phone Service Taxes
In Assembly Committee · Ways And Means · Sponsor Michael Cusick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3279
2019-2020 Regular Sessions
IN SENATE
February 5, 2019
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to taxpayer relief on cell phone taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1109 of the tax law is amended by adding a new subdivision (i) to read as follows:
(i) The exemption contained in subdivision (cc) of section eleven hundred fifteen of this article shall not apply.
§ 2. Subdivision (cc) of section 1115 of the tax law, as added by section 11 of part S of chapter 85 of the laws of 2002, is amended to read as follows:
(cc) Notwithstanding any other provision of law to the contrary, receipts from the sale of mobile telecommunications service [by a home service provider] shall be exempt from the taxes imposed by subparagraph (B) of paragraph one and paragraph two of subdivision (b) of section eleven hundred five of this article [if the mobile telecommunications customer's place of primary use is within a taxing jurisdiction outside this state].
§ 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows:
(ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commercial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) [and], the clothing and footwear
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06646-01-9
S. 3279 2
exemption provided for in paragraph thirty of subdivision (a) and the mobile telecommunications service exemption provided for in subdivision (cc) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption [or], such clothing and footwear exemption or such telecommunications service exemption.
§ 4. Section 1210 of the tax law is amended by adding a new subdivision (p) to read as follows:
(p) Notwithstanding any other provision of state or local law, ordinance or resolution to the contrary:
(1) Any city, county or school district, acting through its governing body, is hereby authorized and empowered to elect to provide the same exemptions from such taxes as the mobile telecommunications service exemption from state sales and compensating use taxes described in subdivision (cc) of section eleven hundred fifteen of this chapter by enacting a resolution in the form set forth in paragraph two of this subdivision; any city having a population of one million or more whereupon, upon compliance with the provisions of subdivisions (d) and (e) of this section, such enactment of such resolution shall be deemed to be an amendment to section eleven hundred seven and such section eleven hundred seven shall be deemed to incorporate such exemptions as if they had been duly enacted by the state legislature and approved by the governor.
(2) Form of Resolution: Be it enacted by the (insert proper title of local legislative body) as follows:
Section one. Receipts from sales of and consideration given or contracted to be given for, or for the use of, mobile telecommunications service exempt from state sales and compensating use taxes pursuant to subdivision (cc) of section 1115 of the tax law shall also be exempt from sales and compensating use taxes imposed in this jurisdiction.
Section two. This resolution shall take effect March 1, (insert the year, but not earlier than the year 2020) and shall apply to sales made, services rendered and uses occurring on and after that date in accordance with the applicable transitional provisions in sections 1106, 1216 and 1217 of the tax law.
§ 5. This act shall take effect immediately; provided, however, that sections one and two of this act shall take effect March 1, 2020.
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 taxpayer relief on cell phone taxes
Purpose
Removes the state sales tax on wireless telephone services and provides for a local option of imposing such taxes.
Summary of provisions
Eliminates the state sales tax on wireless telephone services and also allows local governments the option of exempting such services.
Justification
This bill eliminates the state sales tax on wireless telephone services while allowing localities the option of also eliminating their local tax by home rule request to the Department of Taxation and Finance. If the federal, state and local taxes on wireless services are combined, the total comes to 21.71%. New York State has the highest tax for cell phone use in the nation. The national average is 14.32%. New Yorkers are simply overtaxed. Not only do we have the highest cell phone tax in the country, we also have the highest property taxes as well. It is time legislation is passed to help the New York residents and reduce the amount of taxation. This proposal would place New York at the national average for cell phone taxes.
Legislative history
2018: S.6145-A - Referred to Investigations/A.8226-A - Referred to W&M 2017: S.6145 - Referred to Investigations/A.8226 - Referred to W&M 2016: S.4573 - Referred to Investigations 2015: S.4573 - Referred to Investigations 2014: S.2303 - Referred to Investigations/A.4956 - Referred to W&M 2013: S.2303 - Referred to Investigations/A.4956 - Referred to W&M 2012: S.3547 - Referred to Investigations/A.10430 - Referred to W&M 2011: S.3547 - Referred to Investigations 2010: S.608 - Referred to Investigations/A.2431 - Referred to W&M 2009: S.608 - Referred to Investigations/A.2431 - Referred to W&M 2008: S.6033 - Referred to Rules/A.8870 - Referred to W&M 2007: S.6033 - Referred to Investigations/A.8870- Referred to W&M
Fiscal implications
Undetermined.
Effective date
This act shall take effect immediately; provided however, that section one and section two of this act shall take effect March 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.