BILL NUMBER: S1115
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the tax law, in relation to the imposition of sales
taxes on goods or services purchased from certain businesses
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill will help small businesses by lowering the sales tax rate for
goods and services purchased.
 
SUMMARY OF PROVISIONS:
Section one of this bill amends the opening paragraph of Tax Law Section
1105 to provide that the state sales tax for purchases from a small
business with twenty or fewer employees shall be two percent.
Section two states the effective date.
 
JUSTIFICATION:
According to the statistics released by the United States Small Business
Commission, in 2020, 47.1 percent of New York employees were employed by
one of the 2.2 million New York small businesses. Additionally, in
2020, the top industries with the greatest percentage of small business
employees were Agriculture, Forestry, and Fishing and Hunting (91.3%),
Construction (90.0%), and Other Services (except Public Administration)
(84.6%). Further, New York's small businesses accounted for over half of
the state's exports in 2021.
While these statistics are impressive, a report by the Small Business &
Entrepreneurship Council found that New York ranked 44th in the Small
Business Tax Index in 2019, which assesses how 26 tax-related measures
impact small businesses. We must support small businesses in order to
grow our economy and increase job opportunities across the state. This
bill will help small businesses in retail trade, New York's second larg-
est employment sector, thrive and expand.
 
PRIOR LEGISLATIVE HISTORY:
2024: S283 - Referred to Budget and Revenue
2023: S283 - Referred to Budget and Revenue
2022: S1083 - Referred to Budget and Revenue
2021: S1083 - Referred to Budget and Revenue
2020: S4557A - Referred to Budget and Revenue
2019: S4557A - Referred to Budget and Revenue
 
EFFECTIVE DATE:
This act shall take effect on the first day of the sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
next commencing at least 90 days after this act shall have become a law
and shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

Statutes affected:
S1115: 1105 tax law