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A08344 Summary:

BILL NOA08344
 
SAME ASNo Same As
 
SPONSORCunningham
 
COSPNSR
 
MLTSPNSR
 
Add §1149, amd §174-b, Tax L
 
Requires new businesses to take a sales tax education course; lowers the statute of limitations for sales tax liability from 20 years to ten years.
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A08344 Actions:

BILL NOA08344
 
12/13/2023referred to ways and means
01/03/2024referred to ways and means
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A08344 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8344
 
SPONSOR: Cunningham
  TITLE OF BILL: An act to amend the tax law, in relation to requiring a sales tax educa- tion course for new businesses and lowering the statute of limitations for sales tax liability to ten years   PURPOSE OR GENERAL IDEA OF BILL: Requires new businesses to take a sales tax education course and lowers the statute of limitations for sales tax liability to ten years   SUMMARY OF PROVISIONS: Section 1 adds section 1149 to the tax law to require the commissioner to create a course to educate new businesses on the process of imposing and collecting sales tax Section 2 amends section 174-b of the tax law to adjust the sales tax liability enforcement window Section 3 sets the effective date for April 1, 2024 and allows for the addition, amendment, or repeal of any rules or regulations necessary to implement this by the effective date   JUSTIFICATION: Taxes are unavoidable many times and are convoluted in how their respec- tive processes work. We can create more transparency and support small businesses by requiring a course be made available to them that goes over the sales tax law and its interaction with their business. The hope is that there will be more businesses who know the benefits of this tax and how they can best work in the established parameters. This bill would also adjust the liability enforcement window of time for sales tax. In many cases, by the time the sales tax liability reaches 15 years there is no way for the business to pay this back because the business has dissolved and is no longer operating. By lowering the limit to 10 years, it is more likely that the business will still be an entity that can be collected from. The hope is that by the time the limit is being reached that the accounts liable have a higher likelihood of still existing.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: April 1, 2024
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A08344 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8344
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    December 13, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to requiring a sales tax educa-
          tion course for new businesses and lowering the statute of limitations
          for sales tax liability to ten years

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The tax law is amended by adding a new section 1149 to read
     2  as follows:
     3    §  1149.  Sales tax education course. The commissioner shall create an
     4  online course to educate new businesses on the process of  imposing  and
     5  collecting  sales  tax. Such online course shall include an examination.
     6  Upon completion of such online course, new businesses  shall  receive  a
     7  certification in a form and manner to be determined by the commissioner.
     8  Upon  the  first  payment  of  sales tax to the state, each new business
     9  shall be required to provide proof of such certification.
    10    § 2. Section 174-b of the tax law is amended by adding a new  subdivi-
    11  sion 1-a to read as follows:
    12    1-a.  Notwithstanding subdivision one of this section, beginning April
    13  first, two thousand twenty-four:
    14    (a) A sales tax liability shall not be enforceable and every such  tax
    15  liability  shall  be  extinguished after ten years from the first date a
    16  warrant could be filed by the commissioner, if the warrant for such  tax
    17  liability  was filed by the commissioner after April first, two thousand
    18  fourteen.
    19    (b) A sales tax liability shall not be enforceable and every such  tax
    20  liability  shall be extinguished after fifteen years from the first date
    21  a warrant could be filed by the commissioner, if the  warrant  for  such
    22  tax liability was filed by the commissioner after April first, two thou-
    23  sand nine and on or before April first, two thousand fourteen.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13465-01-3

        A. 8344                             2
 
     1    (c)  A  sales  tax  liability  shall not be enforceable and every such
     2  sales tax liability shall be extinguished on April first,  two  thousand
     3  twenty-four,  if  the  warrant  for  such tax liability was filed by the
     4  commissioner on or before April first, two thousand nine.
     5    § 3. This act shall take effect on April 1, 2024. Effective immediate-
     6  ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
     7  necessary for the implementation of this act on its effective  date  are
     8  authorized to be made on or before such effective date.
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