What's happening
This bill prohibits New York State from charging vendors re-registration fees to collect sales tax and requires refunding previously collected fees.
Why it matters
Reduces costs for small businesses and vendors. by eliminating the $50 re-registration fee for collecting sales tax, which can add up for businesses with multiple locations or those operating on thin margins.
Mandates refunds of previously collected fees. , potentially returning money to thousands of businesses that paid the fee since 2008, injecting funds back into the private sector and correcting what some see as an unnecessary government cost.
Removes a financial barrier to compliance. , making it easier and less expensive for businesses to register or re-register for sales tax collection, which could increase compliance rates and level the playing field for new or smaller businesses.
Signals a policy shift in state tax administration. by prohibiting future charges for the administrative act of registering to collect sales tax, reinforcing the idea that tax collection is a public function and should not impose extra costs on those required to comply.
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Who cares
Headline styles
End Tax Registration Fees
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.
End Registration Fees for Vendors
In Assembly Committee · Ways And Means · Sponsor Stephen Hawley
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5277
2019-2020 Regular Sessions
IN SENATE
April 23, 2019
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend section 1 of part LL-1 of chapter 57 of the laws of
2008, relating to directing the commissioner of taxation and finance to institute a re-registration program, in relation to prohibiting the New York state department of taxation and finance from charging a vendor re-registration fee; to authorize the refund of all re-registration fees collected by the New York state department of taxation and finance; and to amend the tax law, in relation to prohibiting the New York state department of taxation and finance from charging vendors any fees to collect NYS sales tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1 of part LL-1 of chapter 57 of the laws of 2008, relating to directing the commissioner of taxation and finance to institute a re-registration program, is amended to read as follows:
Section 1. The commissioner of taxation and finance is directed to institute a re-registration program pursuant to section 1134 of the tax law, which program should be completed by March 31, 2012. [Notwithstanding any law to the contrary, every certificate of registration filed pursuant to this re-registration program by a person required to file sales and compensating use tax returns for the monthly or quarterly periods described in section 1136 of the tax law must be accompanied by a 50 dollar application fee to constitute a complete application. This fee must be paid and disposed of in the same manner as the taxes imposed by section 1105 of the tax law and may be determined, assessed, collected and enforced in the same manner as the tax imposed by article 28 of the tax law. Notwithstanding section 1148 of the tax law, or any other law to the contrary, such commissioner must retain from the application fees collected or received an amount that such commissioner determines is necessary to cover reasonable costs of such commissioner
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02098-01-9
S. 5277 2
in implementing, administering and enforcing registrations pursuant to this section, but no more than the amount of those fees. The provisions of subdivisions (a) and (c) of section 1139 of the tax law apply, except that no interest is allowed or paid on any refund.] A person may be subject to the re-registration program directed by this section even if such person holds a certificate of authority that has not been in effect for a period of at least three years.
§ 2. Notwithstanding any law, rule or regulation to the contrary, all 50 dollar application fees collected by the department of taxation and finance pursuant to the re-registration program instituted by the commissioner of taxation and finance as authorized by section 1 of part LL-1 of chapter 57 of the laws of 2008 shall be refunded to the persons who paid such fees.
§ 3. Paragraph 5 of subdivision (a) of section 1134 of the tax law, as amended by chapter 2 of the laws of 1995, is amended to read as follows:
(5) If the commissioner considers it necessary for the proper administration of the sales and use taxes and prepaid taxes imposed by this article and pursuant to the authority of article twenty-nine of this chapter, it may require every person under this section or section twelve hundred fifty-three of this chapter who holds a certificate of authority to file a new certificate of registration, without charge, and in such form and at such time as the commissioner may prescribe and to surrender such certificate of authority. The commissioner may require such filing and such surrender not more often than once every three years. Upon the filing of such certificate of registration and the surrender of such certificate of authority, the commissioner shall issue, within such time as the commissioner may prescribe, a new certificate of authority, without charge, to each registrant and a duplicate thereof for each additional place of business of such registrant.
§ 4. This act shall take effect immediately; provided that the provisions of section two of this act shall apply to all certificates of registration required to be filed under section 1134 of the tax law pursuant to the re-registration program instituted by the commissioner of taxation and finance as authorized by section 1 of part LL-1 of chapter 57 of the laws of 2008 and filed on or after November 1, 2008.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend section 1 of part LL-1 of chapter 57 of the laws of 2008, relating to directing the commissioner of taxation and finance to institute a re-registration program, in relation to prohibiting the New York state department of taxation and finance from charging a vendor re-registration fee; to authorize the refund of all re-registration fees collected by the New York state department of taxa- tion and finance; and to amend the tax law, in relation to prohibiting the New York state department of taxation and finance from charging vendors any fees to collect NYS sales tax
Purpose or general idea of bill
This bill will require the fifty dollar fee associated with the re-re- gistration of a certificate of registration, which is mandated to be filed with Department of Taxation and Finance by a business who collects sales taxes, to be refunded to such business.
Summary of specific provisions
Section 1. Repeals part LL-1 of the Chapter 57 of the laws of 2008, relating to directing the Commissioner of Taxation and Finance to insti- tute a re-registration program for vendors who collect New York State sales tax and amends current law to prohibit the New York State Depart- ment of Taxation and Finance from charging vendors any fees to collect New York State sales tax.
Section 2. Provides reimbursement to businesses for any payment of fees associated with the re-registration program.
Section 3. Makes technical amendments to section 1134 of the tax law governing registration of persons who collect sales taxes to prohibit the assessment of a fee to file anew certificate of registration.
Section 4. Establishes the effective date.
Justification
New York State must become more business friendly by providing busi- nesses with opportunities to succeed. The 2008 "Vendor Registration Fee" is another disincentive to own and operate a business in New York State. The original certificate of registration to collect sales tax for the New York State Department of Taxation and Finance was issued to busi- nesses with no fees and no expiration date. Business in the state should not have to pay for the privilege of collecting state sales tax.
The current law does not indicate that this is a one-time fee and many business owners are leery that this will become another revenue stream for the state on an ongoing basis and fees could increase as time goes on.
This bill would prevent the New York State Department of Taxation and Finance from charging a registration fee for vendors to collect sales tax and would reimburse any fees already collected to date.
Prior legislative history
A9392- 07/01/10 -held for consideration in ways and means A1198- 06/19/12 -held for consideration in ways and means A3360 6/17/14 held for consideration in ways and means A3281- 06/14/16 held for consideration in ways and means A1617 - 06/14/18 held for consideration in ways and means
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately; provided that the provisions of section two of this act shall apply to all certificates of Registration required to be filed under section 1134 of the tax law pursuant to the re-registration program instituted by the commissioner of taxation and finance as authorized by section 1 of part LL-1 of chapter 57 of the laws of 2008 and filed on or after November 1, 2008.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.