What's happening
This bill increases the maximum sales tax credit for vendors from $200 to $500 per quarter.
Why it matters
Directly benefits retail businesses and other vendors statewide. by increasing the maximum sales tax credit they can claim per quarter, potentially boosting cash flow and easing compliance costs for thousands of small and medium-sized enterprises across New York.
Represents a significant policy change. raising the cap from $200 to $500 per quarter—marking the first increase since 2006, and providing more substantial relief as inflation and administrative costs have grown over the years.
Intended to take effect for tax years beginning January 1, 2027. , meaning vendors will see the financial impact relatively soon, encouraging timely and accurate sales tax filings while potentially increasing overall business compliance rates.
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Who cares
Retailers and Vendors
Businesses that collect and remit sales tax will directly benefit from the increased maximum sales tax credit, receiving up to $500 per period instead of $200, thus reducing their tax administration costs.
Small Business Owners
Small businesses, for whom administrative costs are a larger proportion of expenses, will particularly care about and benefit from the higher credit.
- Likely support
Local Chambers of Commerce and Business Associations
These groups often advocate for policies that ease tax compliance and reduce costs for their members and are likely to support and publicize the change.
State and Local Governments
While not direct beneficiaries, these entities will care about the potential impact on tax revenue and administrative processes resulting from the larger credit.
Headline styles
Increase Vendor Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11728
IN ASSEMBLY
September 16, 2026
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Woerner) -read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the maximum amount of sales tax credit allowed to vendors
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 2 of subdivision (f) of section 1137 of the tax law, as amended by section 1 of part H of chapter 62 of the laws of 2006, is amended to read as follows:
(2) The amount of the credit authorized by paragraph one of this subdivision shall be five percent of the amount of taxes and fees (but not including any penalty or interest thereon) required to be reported on, and paid or paid over with, the return but only if the return is filed on or before the filing due date, but not more than [two] five hundred dollars, for each quarterly or longer period, except that, with respect to returns required to be filed for quarterly or longer periods ending on or before the last day of February, two thousand seven, the amount of the credit shall be not more than one hundred seventy-five dollars for each such quarterly or longer period.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2027.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16350-01-6
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.