What's happening
This bill allows businesses to advertise that they will pay sales tax on behalf of customers, as long as tax is still shown separately on receipts.
Why it matters
Clarifies the rules for sales tax promotions. The bill explicitly allows businesses to advertise that they will pay the sales tax for customers, but only if the tax is still shown separately on receipts. This ensures consumers are still aware of the tax amount, even when the business covers the cost.
Prevents misleading tax-free claims. By requiring that businesses cannot imply an item or service is tax-exempt or excluded from tax, the amendment protects consumers from false or confusing advertising regarding tax obligations.
Puts tax liability on the business. When a business advertises that it will pay the tax for the customer, the business—not the customer—remains fully responsible for remitting the tax to the state, clarifying accountability and preventing potential disputes or evasion.
Updates enforcement provisions. The bill amends existing penalty language to align with the new rules, ensuring that businesses can be penalized if they fail to separately state the tax or if they misrepresent tax payment in ways not permitted by the law.
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
Headline styles
Require Tax Disclosure on Receipts
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Recommit, enacting clause stricken
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4164
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. STAVISKY -- 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 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
S. 4164 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.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to required disclosure on a bill, memorandum, receipt or other statement of price
Purpose
To allow merchants to offer to pay sales taxes on their customers' behalf, all while making sure that sales taxes are still paid and that information is clear to consumers.
Summary of provisions
Sections 1 and 3 make conforming changes to the law to ensure that even when a merchant offers to pay sales tax on behalf of a customer, the business must still separately state the tax on the customer bill.
Section 2 amends section 1133 of the tax law to allow merchants to advertise to the public their ability to pay for taxes on behalf of the customer.
Section 4 sets the effective date.
Justification
Current law does not allow merchants to pay sales taxes on behalf of their customers and advertise such a discount. This bill gives merchants the flexibility to provide promotions to customers that the businesses will pay sales taxes on behalf of their customers. Other states allow these promotions, so New York businesses are at a competitive disadvan- tage. Consumers would have the opportunity to enjoy these discounts on their purchases. New York businesses should be on a level playing field with out-of-state businesses. New York State will assure that sales taxes are paid.
Legislative history
New Bill.
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.