What's happening
This bill exempts goods and services under $110 from sales tax in specific New York City business zones affected by construction.
Why it matters
Targets small purchases. By limiting the exemption to goods and services under $110, the bill specifically aims to benefit everyday consumers and small business transactions rather than large-ticket items or luxury sales.
Focuses on construction-impacted businesses. Only businesses within 100 feet of major construction zones in specified NYC corridors are eligible, directly addressing areas where foot traffic and sales are often disrupted.
Temporary relief tied to construction timelines. The tax exemption is time-limited, lasting for six months per zone, and only applies while construction is officially authorized, providing targeted, short-term support.
Delegates oversight to state officials. The state tax commissioner is empowered to decide the exact construction periods and thus when the exemptions are in effect, adding a layer of administrative discretion and potential variance in application.
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Who cares
Businesses near construction in the listed Manhattan corridors
Those within 100 feet of construction would qualify for a six-month sales and compensating use tax exemption on goods and services valued at less than $110 in the aggregate.
Customers of qualifying businesses
They would receive the tax exemption on eligible purchases during the six-month period beginning on the first day of authorized construction.
New York State tax commissioner
The bill would require the commissioner to determine the period of authorized construction for each specified business zone area.
Headline styles
Sales Tax Break Near Construction
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 29
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1073
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to providing a sales and compensating use tax exemption in certain areas of New York city
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (b) of section 1101 of the tax law is amended by adding a new paragraph 39 to read as follows:
(39) Goods and services shall mean any good or service the value of which is less than one hundred ten dollars in value in the aggregate.
§ 2. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 47 to read as follows:
(47) (i) Goods and services, as defined in paragraph thirty-nine of subdivision (b) of section eleven hundred one of this article, sold in a business zone area. Such exemption shall continue for six months for any given business zone area commencing on the first day of a period of authorized construction.
(ii) For purposes of this paragraph, business zone area shall mean those businesses in the city of New York that are no more than one hundred feet from any construction in the following areas:
(A) 125th Street from 5th Avenue to 3rd Avenue;
(B) 2nd Avenue from 129th Street to 92nd Street;
(C) 2nd Avenue from 87th Street to 83rd Street;
(D) 2nd Avenue from 73rd Street to 69th Street;
(E) 2nd Avenue from 65th Street to 58th Street;
(F) 2nd Avenue from 45th Street to 41st Street;
(G) 2nd Avenue from 36th Street to 32nd Street;
(H) 2nd Avenue from 26th Street to 23rd Street;
(I) 2nd Avenue from 15th Street to 11th Street;
(J) 2nd Avenue from 6th Street to 4th Street;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01655-01-5
(K) 2nd Avenue from 4th Street to Houston Street;
(L) Chrystie Street from Houston Street to Canal Street;
(M) Bowery from Pell Street to Worth Street;
(N) Worth Street from Mott Street to St. James Place;
(O) Water Street from Dover Street to John Street;
(P) Water Street from Wall Street to Coenties Slip; or
(Q) The intersection of Water Street and Whitehall Street.
(iii) For the purposes of this paragraph, the commissioner shall determine the period of authorized construction for each business zone area specified in subparagraph (ii) of this paragraph.
§ 3. This act shall take effect immediately.
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 providing a sales and compensating use tax exemption in certain areas of New York city
Purpose or general idea of bill
To provide that there will be no sales tax, on goods or services that are less than $110 for a period of six months from the first day construction has commenced within a certain portion of the Second Avenue Subway construction to assist the "Shop Second Avenue" campaign current- ly underway in bringing consumers in the doors of these beleaguered businesses that are likely to continue shopping there after the sates tax is reinstated.
Summary of specific provisions
Section 1 adds a new paragraph 33 to subdivision (b) of section 1101 of the tax law defining a good or service as having a value of less than one hundred ten dollars in the aggregate.
Section 2 adds a new paragraph 43 to subdivision (a) of section 1115 of the tax law providing a sate tax exemption for goods and services for a six-month period within the business zone area commencing on the first day of a period of authorized construction. This legislation also defines the business zone area as well as empowers the commissioner to determine the period of authorized construction for each business zone area.
Section 3 contains the effective date.
JUSTIFICATION:-
The East Side of Manhattan is currently undergoing one of the most significant construction projects in decades, the construction of the long awaited Second Avenue subway. The construction has begun and will eventually run through parts of eight Assembly Districts. While Phase 1 of the Second Avenue Subway will be completed and operating in December 2016, Phases 2, 3, and 4 are slated to begin construction the upcoming years. The Second Avenue subway will eventually bring much needed trans- portation improvements and economic development opportunities to the East Side, the construction of Phase 1 has had a substantially negative effect on local businesses. Some establishments in the heart of the initial construction have lost 20 to 30 percent of business, and others have closed permanently.
This bill would create a Second Avenue Subway Construction Sates Tax Free Zone with the purpose of providing incentive for consumers to shop at businesses currently affected by the construction of the Second Avenue Subway who are likely to continue shopping and supporting these businesses after six months have passed and the sates tax is reinstated.
Prior legislative history
2023-2024: S.728 - Referred to Budget and Revenue
2021-2022: S.1424 - Referred to Budget and Revenue
2020: S.3907 - Referred to Budget and Revenue
2019: S.3907 - Passed Senate
2013-14: S.915 - Referred to Investigations and Government Operations
2011-12: S.3172A- Amend and Recommit to Investigations and Government Operations
Fiscal implications
To be determined.
Effective date
This act would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.