What's happening
This bill gives New York small businesses affected by COVID-19 an extra 90 days to pay monthly sales and payroll taxes.
Why it matters
Eases immediate cash flow pressure. By granting a 90-day extension to pay monthly sales and payroll taxes, the bill helps small businesses keep more cash on hand during periods of state-mandated COVID-19 closures or restrictions, potentially preventing layoffs or closures.
Tied to official COVID-19 orders. The relief only applies while quarantine, isolation, or other executive orders are in effect, meaning the extension is directly linked to periods when businesses are most disrupted by government action.
Targets smaller, local businesses. Only independently owned businesses with 100 or fewer full-time employees qualify, focusing the benefit on businesses that typically have fewer resources to weather extended shutdowns or slowdowns.
May reduce risk of penalties and interest. By officially extending the due date for tax payments, affected businesses can avoid late fees or penalties that would otherwise accrue, providing them with both financial and legal protection during the crisis.
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Who cares
Headline styles
Delay Tax Payments for Small Businesses
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to commerce, economic development and small business
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8372
IN SENATE
May 19, 2020
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to provide small businesses affected by COVID-19 an additional 90 days to pay certain monthly sales and payroll taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. For the duration of any mandatory or precautionary order of quarantine or isolation issued through an executive order from the governor or by the state of New York, the department of health, local board of health, or any governmental entity duly authorized to issue such order due to COVID-19, small businesses shall have an additional 90 days to pay any monthly sales and payroll taxes which become due during such time. For purposes of this act, "small business" shall mean a business which is resident in this state, independently owned and operated and who employs one hundred full-time equivalent employees or less.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16357-01-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to provide small businesses affected by COVID-19 an additional 90 days to pay certain monthly sales and payroll taxes
Summary of provisions
Section 1 provides that small businesses, defined as a business owned and operated by a resident of New York State with one hundred employees or less, shall have an additional 90 days to pay any monthly sales and payroll taxes which become due during such time.
Section 2 establishes the effective date.
Justification
The outbreak of COVID-19 and subsequent measures taken to combat the spread of the pandemic have been devastating for the economy of New York State. Perhaps no group feels this more acutely than small business owners, who in normal times operate on thin margins. The combination of depressed demand and the inability for some businesses to operate means that many hard working small business owners may not be able to maintain their livelihood after the end of the pandemic. On top of these concerns is the fact that these businesses will continue to owe taxes to New York State, a burden which may prove fatal to some small businesses.
This legislation is a measure aimed at giving small business owners a degree of support necessary for the long-term survival of their busi- nesses. It provides that small businesses are given an extended period to pay their sales and payroll taxes which would have come due during the time of the pandemic. This bill would enable New York State to allow business owners time to "catch up" on their taxes and would help prevent the spread of economic decline.
Legislative history
New bill.
Fiscal implications
Undetermined.
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.