What's happening
This bill exempts small businesses from sales tax and provides a tax credit for equipment purchased to comply with COVID-19 health and safety plans.
Why it matters
Reduces immediate financial strain on small businesses. by removing sales tax obligations for essential health and safety purchases, which helps businesses preserve cash during COVID-19 disruptions.
Encourages proactive public health compliance. by making it more affordable for small businesses (those with 100 or fewer employees) to invest in protective equipment like plexiglass barriers, thus improving safety for employees and customers.
Offers retroactive financial relief. through a refundable tax credit for sales taxes already paid on qualifying equipment since May 15, 2020, potentially reimbursing businesses for past pandemic-related safety investments.
Targets support to small businesses specifically. , aiming to level the playing field for smaller employers who may have fewer resources to adapt to evolving health regulations, potentially supporting local economies and job retention.
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Who cares
Headline styles
Cut COVID Costs for Small Businesses
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
No co-sponsors yet.
History
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9078
IN SENATE
November 2, 2020
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to exempting from sales and compensating use taxes and establishing a tax credit for any equipment or product purchased by a small business that is used to comply with a COVID-19 health and safety plan
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 46 to read as follows:
(46) Any equipment or product, including materials used in the construction of physical barriers, including but not limited to plastic shielding walls, strip curtains, cubicle walls, plexiglass or similar materials, or other impermeable dividers or partitions, purchased by a small business doing business in this state that is directly used by such small business to be in compliance with a COVID-19 health and safety plan. For purposes of this paragraph, the term "small business" shall mean a business with one hundred or fewer employees.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 55 to read as follows:
55. Sales tax paid on materials for COVID-19 health and safety plan compliance. (1) For the period beginning May fifteenth, two thousand twenty and ending on the effective date of this subdivision, a taxpayer who owns a small business shall be allowed a credit for sales tax paid for any equipment or product, including materials used in the construction of physical barriers, including but not limited to plastic shielding walls, strip curtains, cubicle walls, plexiglass or similar materials, or other impermeable dividers or partitions, purchased by such small business in order to be in compliance with a COVID-19 health and safety plan.
(2) If the amount of the credit allowed under this subdivision for any taxable year shall exceed the small business's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eight-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17524-03-0
S. 9078 2
y-six of this chapter, provided, however, that no interest shall be paid thereon.
(3) For purposes of this subdivision, the term "small business" shall mean a business with one hundred or fewer employees.
§ 3. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) Sales tax paid on materials for COVID-19 health and safety plan compliance. (1) For the period beginning May fifteenth, two thousand twenty and ending on the effective date of this subsection, a taxpayer who owns a small business shall be allowed a credit for sales tax paid for any equipment or product, including materials used in the construction of physical barriers, including but not limited to plastic shielding walls, strip curtains, cubicle walls, plexiglass or similar materials, or other impermeable dividers or partitions, purchased by such small business in order to be in compliance with a COVID-19 health and safety plan.
(2) If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
(3) For purposes of this subsection, the term "small business" shall mean a business with one hundred or fewer employees.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlvi) to read as follows: (xlvi) Sales tax paid on materials Sales tax paid on for COVID-19 health and safety materials for plan compliance under COVID-19 health subsection (kkk) and safety plan
compliance under
subdivision fifty-five
of section two
hundred ten-B
§ 5. This act shall take effect on the first day of the sales tax quarterly period commencing after this act shall have become a law, and shall apply to sales made and uses occurring on and after such date in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to take steps necessary to implement the provisions of this act on its effective date.
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 exempting from sales and compensating use taxes and establishing a tax credit for any equipment or product purchased by a small business that is used to comply with a COVID-19 health and safety plan
Purpose
This legislation creates a sales tax exemption for the purchase of equipment or products purchased by small businesses to comply with a COVID-19 health and safety plan.
Summary of specific provisions
Section 1 Adds a paragraph 46 to Section 1115 of the tax law. To create a sales tax exemption for any equipment or product, including materials used in the construction of physical barriers, including but limited to plastic shielding walls, strip curtains, cubicle walls, plexiglass or similar materials, as well as impermeable dividers or partitions that were purchased by a small business. The small business must be one hundred or fewer employees and products must be used in order to ensure compliance with a COVID-19 health and safety plan.
Read the full memo (643 words)
Section 2 adds a new subdivision 55 to Section 210-B of the tax law to create a sales tax credit for any equipment or product, including mate- rials used in the construction of physical barriers, including but limited to plastic shielding walls, strip curtains, cubicle walls, plex- iglass or similar materials, as well as impermeable dividers or parti- tions that were purchased by a small business. The small business must be one hundred or fewer employees and products must be used in order to ensure compliance with a COVID-19 health and safety plan. This credit is for the period of time from May 15, 2020 until the effective date of this law.
Section 3 adds a new subsection kkk to Section 606 of the tax law to create a sales tax credit for any equipment or product, including mate- rials used in the construction of physical barriers, including but limited to plastic shielding walls, strip curtains, cubicle walls, plex- iglass or similar materials, as well as impermeable dividers or parti- tions that were purchased by a small business. The small business must be one hundred or fewer employees and products must be used in order to ensure compliance with a COVID-19 health and safety plan. This credit is for the period of time from May 15, 2020 until the effective date of this law.
Section 4 adds a new clause (xlvi) to subparagraph (B) of paragraph 1 of subsection (i)of section 606 of the tax law, to add sales taxes paid on materials for COVID-19 health and safety plans to the list of enumerated items free from sales tax.
Section 5 is the effective date.
Justification
As we enter into a new normal, the need to purchase material to meet COVID-19 health and safety plans has become a necessity. This legis- lation will help reduce the cost to small businesses on their purchases of products needed to meet COVID-19 health and safety plans. As we see employers needing to purchase these products in order to ensure a safe working environment for their employees, the cumulative impact of purchasing significant amounts of products will be felt, and in removing this tax will help reduce this cost burden to the small business. The cumulative impact of having to purchase these items could be significant for small businesses and as such is warranted to take means to reduce this cost for them. Employees deserve to be provided with the healthiest and safest working environment possible, this legislation will help incentivize the continuous purchase of the very best materials that will help protect employees.
Prior legislative history
New Bill.
Fiscal implications
None, as these tax receipts are unrealized.
Effective date
This act shall take effect on the first day of the sales tax quarterly period commencing after this act shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.