What's happening
This bill suspends late fees and interest for one year on certain business tax payments following a state disaster emergency.
Why it matters
Eases Financial Pressure During Crises. By suspending late fees and interest on key business taxes for a year after a state disaster emergency, the bill helps businesses maintain cash flow and prioritize urgent expenses during periods of disruption.
Targets Major Business Taxes. The relief applies specifically to taxes under Article 28 (sales and use taxes) and Article 9 of the real property tax law, which are significant recurring costs for many businesses, especially small and retail-oriented enterprises.
Encourages Compliance Without Penalty. Businesses that are unable to pay these taxes on time due to a disaster won’t face additional financial penalties, reducing stress and potentially encouraging timely filing, even if payment is delayed.
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Who cares
Businesses owing sales and use taxes
The bill would bar late fees and interest on late payments of taxes imposed under Tax Law Article 28 for one year following the disaster emergency declaration under Executive Order 202.
Businesses owing real property taxes
The bill would provide the same one-year protection from late fees and interest for late tax payments covered by Real Property Tax Law Article 9.
State and local tax collectors
The bill would require them to forgo late fees and interest on covered business tax payments during the relief period.
Headline styles
Waive Business Tax Penalties
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8313
IN SENATE
May 11, 2020
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT providing relief to businesses for late fees and interest on certain tax payments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding any provision of law to the contrary, no late fees shall be imposed or interest accrue on the late payment of any taxes imposed or levied on a business pursuant to article 28 of the tax law or article 9 of the real property tax law for a period of one year following the declaration of a state disaster emergency pursuant to executive order 202.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16284-01-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act providing relief to businesses for late fees and interest on certain tax payments
PURPOSE::
This bill eliminates any late fees or interest accrued associated with late property or sales tax filings by a business during the state emer- gency related to COVID-19.
SUMMARY OF SPECIFIC PROVISIONS::
Section one waives any late fees or interest accrued for businesses filing sales or property taxes during the current state disaster emer- gency.
Section two establishes the effective date.
JUSTIFICATION::
Due to the COVID-19 pandemic, businesses have found themselves, at no fault of their own, with substantially lower revenue as a result of the prudent implementation of the New York on PAUSE plan. This has left many in a precarious financial situation, with difficult decisions being made about what bills to pay. By waiving late fees and interest accrual during the declared state of emergency, business owners can have comfort that while the taxes owed must still be paid, but they won't be subject to additional penalties that they cannot afford if they don't have enough cash flow to pay the taxes on the date owed. This flexibility gives businesses the ability to stretch their cash on hand further, setting them up to survive the economic downturn in a better financial condition, which preserves local jobs as well as future sales and prop- erty tax payments in the years ahead.
LEGISLATIVE HISTORY::
New legislation
FISCAL IMPLICATIONS::
Reduced state revenue expected as no late fees or interest will be paid.
EFFECTIVE DATE::
This act shall take immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.