BILL NUMBER: S238
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend section 1 of part LL-1 of chapter 57 of the laws of
2008, relating to directing the commissioner of taxation and finance to
institute a re-registration program, in relation to prohibiting the New
York state department of taxation and finance from charging a vendor
re-registration fee; to authorize the refund of all re-registration fees
collected by the New York state department of taxation and finance; and
to amend the tax law, in relation to prohibiting the New York state
department of taxation and finance from charging vendors any fees to
collect NYS sales tax
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill will require the fifty dollar fee associated with the re-re-
gistration of a certificate of registration, which is mandated t o be
filed with Department of Taxation and Finance by a business who collects
sales taxes, to be refunded to such business.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Repeals part LL-1 of the Chapter 57 of the laws of 2008,
relating to directing the Commissioner of Taxation and Finance to insti-
tute a re-registration program for vendors who collect New York State
sales tax and amends current law to prohibit the New York State Depart-
ment of Taxation and Finance from charging vendors any fees to collect
New York State sales tax.
Section 2. Provides reimbursement to businesses for any payment of fees
associated with the re-registration program.
Section 3. Makes technical amendments to section 1134 of the tax law
governing registration of persons who collect sales taxes to prohibit
the assessment of a fee to file anew certificate of registration.
Section 4. Establishes the effective date.
 
JUSTIFICATION:
New York State must become more business friendly by providing busi-
nesses with opportunities to succeed. The 2008 "Vendor Registration Fee"
is another disincentive to own and operate a business in New York State.
The original certificate of registration to collect sales tax for the
New York State Department of Taxation and Finance was issued to busi-
nesses with no fees and no expiration date. Business in the state should
not have to pay for the privilege of collecting state s ales tax. The
current law does not indicate that this is a one-time fee and many busi-
ness owners are leery that this will become anot her revenue stream for
the state on an ongoing basis and fees could increase as time goes on.
This bill would prevent the New York State Department of Taxation and
Finance from charging a registration fee for vendors to collect sales
tax and would reimburse any fees already collected to date.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S119/A4215 Referred to Budget and Revenue/Referred to Ways and
Means 2021-22: S3309 Referred to Budget and Revenue
2019-20: S5277/A1762 referred to Budget and Revenue/Referred to Ways and
Means
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the provisions of
section two of this act shall apply to all certificates of Registration
required to be filed under section 1134 of the tax law pursuant to the
re-registration program instituted by the commissioner of taxation and
finance as authorized by section 1 of part LL-1 of chapter 57 of the
laws of 2008 and filed on or after November 1, 2008.

Statutes affected:
S238: 1134 tax law