What's happening
This bill allows businesses to treat COVID-19-related remote work as performed at regular locations for state and local tax purposes.
Why it matters
Prevents unexpected tax burdens for businesses and employees. By allowing remote work during the COVID-19 emergency to be treated as if it occurred at the regular workplace for tax purposes, businesses and their employees can avoid sudden changes in state and local tax liabilities that could arise from temporary relocations.
Simplifies tax compliance during a disruptive period. This measure reduces the administrative burden on businesses, which would otherwise need to track and report potentially complex new work locations for employees forced to work from home due to the pandemic.
Helps maintain stable local tax revenues. By attributing work to pre-pandemic locations, localities that depended on business activity at physical offices are less likely to experience sudden drops in tax revenue tied to remote work arrangements during the state of emergency.
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Who cares
Headline styles
Tax Remote Work as Office
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
8386
IN SENATE
May 21, 2020
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT authorizing businesses to designate work performed remotely due to the outbreak of novel coronavirus, COVID-19 to have been performed at its normal work location for state and local tax purposes
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, for the duration of the state disaster emergency pursuant to executive order 202, a business which has required some or all of its employees to work remotely as a result of the outbreak of novel coronavirus, COVID-19, may designate such remote work as having been performed at the location such work was performed prior to the declaration of such state disaster emergency for all state and local tax purposes, including but not limited to, apportionment.
§ 2. The commissioner of taxation and finance shall promulgate any rule or regulation necessary to effectuate this act.
§ 3. This act shall take effect immediately and shall be deemed to have been in full force and effect March 7, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16446-01-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act authorizing businesses to designate work performed remotely due to the outbreak of novel coronavirus, COVID-19 to have been performed at its normal work location for state and local tax purposes
Purpose
Allows that, while the emergency related to the COVID-19 pandemic has resulted in large numbers of employees to work in a geographically disbursed area, employers may designate such work at occurring at the same location at which such work was performed before the emergency for tax purposes.
Summary of provisions
Section 1 allows that, while the emergency related to the COVID-19 pandemic has resulted in large numbers of employees to work in a geographically disbursed area, employers may designate such work at occurring at the same location at which such work was performed before the emergency for tax purposes.
Section 2 allows for the commissioner of Taxation and Finance to promul- gate necessary rules and regulations for this act.
Section 3 sets the effective date.
Existing law
None
Justification
The performance of work remotely in response to the COVID-19 pandemic can cause confusion because many people are working in a different jurisdiction from where they worked before. This act would allow busi- nesses to declare their work is being conducted at the same location as before the emergency, and remove unnecessary confusion and complexity to filing their taxes.
Legislative history
new bill.
Fiscal implications
none
Local fiscal implications
None
Effective date
Immediately, with deemed effectiveness from March 7, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.