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SB8166 Summary:

Amd 1105, Tax L; add 78-c, St Fin L; add 683-c, Ed L
Imposes a sales tax on digital advertising; establishes a digital advertising services tax revenue fund; establishes a zero interest education loan refinancing program.
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SB8166 Actions:

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SB8166 Text:

                STATE OF NEW YORK
                    IN SENATE
                                     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
    13  access.
    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
    39  prepayment.
    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.
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