What's happening
This bill reduces the sales tax from 4% to 2% on goods or services bought from small, independently owned New York businesses.
Why it matters
Supports small, local businesses. by making their goods and services more affordable compared to larger or non-local competitors, potentially increasing their customer base and sales.
Targets businesses with 20 or fewer employees. that are independently owned and not dominant in their industry, focusing benefits on truly small enterprises rather than chains or subsidiaries of larger corporations.
May encourage entrepreneurship and local job creation. by lowering the tax burden for small businesses, making it more attractive to start and maintain such businesses in New York.
Could influence consumer spending habits. by giving customers a direct financial incentive to shop at small, locally owned businesses, possibly strengthening community ties and local economies.
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Who cares
Small New York businesses
Independently owned and operated businesses with 20 or fewer employees that are not dominant in their field would qualify for a two-percent state sales tax rate on their taxable sales, instead of four percent.
Customers of qualifying businesses
Buyers would pay a lower state sales tax on taxable goods and services purchased from businesses meeting the bill’s requirements.
New York tax administrators
The bill would require administering a reduced rate based on a seller’s employee count, New York residency, independent ownership and operation, and market dominance.
Headline styles
Cut Small Business Sales Tax
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Lower Taxes for Small Businesses
In Senate Committee · Budget And Revenue · Sponsor Andrew Gounardes
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1381
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
Introduced by M. of A. SIMON, BARCLAY, COOK, FRIEND, WALSH -- Multi- Sponsored by -- M. of A. BUTTENSCHON, COLTON, CRUZ, DeSTEFANO, HYND- MAN, SAYEGH, SMULLEN, STERN, STIRPE, WOERNER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the imposition of sales taxes on goods or services purchased from certain businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of section 1105 of the tax law, as amended by chapter 72 of the laws of 1971, is amended to read as follows:
On and after June first, nineteen hundred seventy-one, there is hereby imposed and there shall be paid a tax of four percent; provided, however, that when the goods or services are purchased from a business which employs twenty or less persons, is resident in this state, is independently owned and operated and is not dominant in its field, the amount of tax paid on such sale shall be two percent, upon:
§ 2. This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least 90 days after this act shall have become a law and shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02812-01-5
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.