STATE OF NEW YORK
April 13, 2020
Introduced by Sen. THOMAS -- 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 and the state finance law, in relation to
sales tax on digital advertising; to amend the education law, in
relation to zero interest undergraduate loan refinancing; and provid-
ing for the repeal of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (c) of section 1105 of the tax law is amended
2 by adding a new paragraph 1-a to read as follows:
3 (1-a) Notwithstanding the provisions of paragraph one of this subdivi-
4 sion, the receipts from every sale, except for resale, of digital adver-
5 tising services. For purposes of this paragraph:
6 (i) "Digital advertising services" means advertisement services on a
7 digital interface, including advertisements in the form of banner adver-
8 tising, search engine advertising, interstitial advertising, and other
9 comparable advertising services which markets or promotes a particular
10 good, service, or political candidate or message.
11 (ii) "Digital interface" means any type of software, including a
12 website, part of a website, or application, that a user is able to
14 (iii) "User" means an individual or any other person who accesses a
15 digital interface with a device.
16 All revenue received from the imposition of this tax shall be deposit-
17 ed into the digital advertising services tax revenue fund established
18 pursuant to section seventy-eight-c of the state finance law.
19 § 2. The state finance law is amended by adding a new section 78-c to
20 read as follows:
21 § 78-c. Digital advertising services tax revenue fund. 1. There is
22 hereby created and established in the sole custody of the state comp-
23 troller a special fund to be known as the digital advertising services
24 tax revenue fund which shall be for the exclusive benefit of providing
25 zero interest refinancing of eligible education loans by the higher
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
S. 8166 2
1 education services corporation under section six hundred eighty-three-c
2 of the education law.
3 2. Amounts held in this fund shall not be, or be deemed, funds of the
4 state or funds under the management of the state or the higher education
5 services corporation. The obligations of the fund shall not be, or be
6 deemed, the debts or obligations of the state and the state shall not
7 be, or be deemed, in any way obligated to any holder of any such educa-
8 tion loan.
9 3. Such fund shall consist of all moneys received by the department of
10 taxation and finance pursuant to paragraph one-a of subdivision (c) of
11 section eleven hundred five of the tax law. Moneys in the fund shall be
12 segregated from all other funds kept by the state comptroller and shall
13 not be used for any other purpose beyond those set forth in section six
14 hundred eighty-three-c of the education law or in this section.
15 4. The state comptroller shall make payments from the fund in amounts
16 and at times required by the higher education services corporation
17 pursuant section six hundred eighty-three-c of the education law.
18 § 3. The education law is amended by adding a new section 683-c to
19 read as follows:
20 § 683-c. Refinance of undergraduate student loans. 1. An eligible
21 borrower, as defined in this section, may apply to have their federal
22 and private undergraduate education loans refinanced by the corporation.
23 The maximum amount allowed to be refinanced under this section shall be
24 one hundred thousand dollars. The minimum amount to be refinanced shall
25 be three thousand dollars.
26 2. An eligible borrower shall include an individual who: (a) has been
27 a New York state resident for at least twenty-four consecutive months
28 prior to application for refinancing; (b) owes less than one hundred
29 thousand dollars in federal and private undergraduate education loans;
30 and (c) is current on their loan payments.
31 3. Beginning January first, two thousand twenty-two, the corporation
32 shall offer zero percent interest rate refinancing based on availability
33 of funds in the digital advertising services tax revenue fund estab-
34 lished in section seventy-eight-c of the state finance law.
35 4. (a) A borrower may be granted deferment or forbearance up to two
36 times during the repayment period upon a showing of economic hardship.
37 (b) The corporation shall establish terms for repayment of loans on
38 the basis of the income of the borrower. There shall be no penalty for
40 (c) Loans refinanced under this section shall be eligible for loan
41 forgiveness programs available to public service employees.
42 5. Rules and regulations. The corporation is authorized to promulgate
43 rules and regulations necessary for the implementation of the provisions
44 of this section.
45 § 4. This act shall take effect on the thirtieth day after it shall
46 have become a law and shall apply to sales made and uses occurring on
47 and after such date although made, occurring or rendered under a prior
48 contract; provided that this act shall expire and be deemed repealed 5
49 years after such effective date.