Adds a three dollar surcharge on online delivery transactions terminating within the city of New York to be used to fund the operating costs of buses and subways in the city of New York.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6078B
SPONSOR: Carroll TITLE OF BILL:
An act to amend the tax law, in relation to adding a surcharge on online
delivery transactions within the city of New York
PURPOSE OR GENERAL IDEA OF BILL:
This bill would add a $3 dollar per transaction fee on online deliveries
in New York City with the revenue raised being directed to the MTA to
pay for subway and bus improvements.
SUMMARY OF PROVISIONS:
Section 1 adds Article 29-D to the tax law to establish a delivery
surcharge of $3 per delivery with exemptions for essential medical
supplies, food deliveries and for those using supplemental nutrition
assistance program, special supplemental nutrition for women, infants
and children and any other successor program. Article 29 describes in
detail definitions, imposition of tax, liability of surcharge, registra-
tion, returns and payment of surcharge, records to be kept, secrecy of
returns and reports, practice and procedure, deposit and disposition of
revenue, cooperation by regulatory agencies.
Section 2 sets effective date.
JUSTIFICATION:
There are on average 1.5 million packages delivered daily across New
York City. There's no incentive to ship smart by consolidating packages
and as a result our streets are choked with congestion and all of this
waste is a burden on our environment. Adding a $3 convenience charge on
all except essential medical supplies and food deliveries in NYC will
help to decrease congestion and provide a sizable additional revenue
stream to the help fund and fix the subway and bus system in New York
City.
PRIOR LEGISLATIVE HISTORY:
None.
DIFFERENCES BETWEEN ORIGINAL AND AMENDED VERSIONS:
There is an exception included in the amended version so that deliveries
of essential medical supplies or of food are not imposed with an addi-
tional surcharge of 3 dollars for each delivery transaction. There is
also an exception to include SNAP and WIC recipients.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Estimated projected revenue: $300 Million annually.
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.
