Imposes an additional two percent sales tax on retail sales of motor vehicles over $70,000, excluding commercial vehicles and electric vehicles, jewelry over $5,000 and articles of clothing, footwear, handbags, luggage, umbrellas, wallets or watches sold for over $1,000; provides that such tax shall be distributed equally to the credit of the state university of New York and the city university of New York.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3079
SPONSOR: Epstein TITLE OF BILL:
An act to amend the tax law, in relation to imposing an additional two
percent sales tax on certain retail sales
SUMMARY OF PROVISIONS:
Section 1 amends the tax law by adding a new section 1105-c that creates
an additional sales tax on 2 percent on every retail sale of tangible
personal property of:
-Motor vehicles sold for over $50,000 (excluding commercial vehicles)
-Jewelry sold for over $5,000
-Clothing over $1,000
Section 2 amends section 1148 of the tax law to direct the revenue to
CUNY and SUNY
Section 3 provides the effective date
JUSTIFICATION:
New York's public higher education system is one of the state's crown
jewels: CUNY and SUNY are responsible for lifting low-income New Yorkers
into the middle class by empowering them with a world class education.
To ensure our students continue to receive a high quality education at
our public universities, the state needs to close the gap between what
the state's Tuition Assistance Program (TAP) pays and actual tuition
costs with a dedicated funding stream.
The disparity between tuition costs and TAP funding has edged up to $139
million. We cannot close the "TAP Gap" on the backs on CUNY and SUNY
students, many of whom come from low-income families and are first
generation college students. Instead, this bill proposes to invest in
students' success by placing an additional 2% tax on luxury items
purchased by the wealthiest in our state and directing that revenue
toward SUNY and CUNY.
PRIOR LEGISLATIVE HISTORY:
2020: A9650A/S07634A - referred to ways and means/REFERRED TO BUDGET AND
REVENUE
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Increased tax revenue for the State.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
3079
2021-2022 Regular Sessions
IN ASSEMBLY
January 22, 2021
___________
Introduced by M. of A. EPSTEIN, GOTTFRIED, CRUZ, SIMON, GLICK, REYES,
BARRON -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to imposing an additional two
percent sales tax on certain retail sales
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 1105-C to
2 read as follows:
3 § 1105-C. Additional sales tax on certain retail sales. (a) Notwith-
4 standing any other provisions of this article, on and after June first,
5 two thousand twenty-one, there is hereby imposed and shall be paid a tax
6 of two percent upon the receipts from every retail sale of tangible
7 personal property of:
8 (1) motor vehicles sold for over seventy thousand dollars excluding
9 commercial vehicles and electric vehicles;
10 (2) jewelry sold for over five thousand dollars; and
11 (3) any article of clothing or footwear intended to be worn on or
12 about the human body, any handbag, luggage, umbrella, wallet or watch
13 sold for over one thousand dollars.
14 (b) The tax imposed by subdivision (a) of this section shall be in
15 addition to the tax imposed on such receipts pursuant to section eleven
16 hundred five of this article.
17 § 2. Section 1148 of the tax law is amended by adding a new subdivi-
18 sion (d) to read as follows:
19 (d) Provided, however, before funds are distributed pursuant to subdi-
20 vision (a), (b) or (c) of this section, (1) fifty percent of all taxes,
21 interest and penalties collected or received by the commissioner pursu-
22 ant to section eleven hundred five-C of this article shall be deposited
23 to the credit of the state university of New York and (2) fifty percent
24 of all taxes, interest and penalties collected or received by the
25 commissioner pursuant to section eleven hundred five-C of this article
26 shall be deposited to the credit of the city university of New York.
27 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02348-01-1
