STATE OF NEW YORK
        ________________________________________________________________________

                                          8256

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    November 15, 2023
                                       ___________

        Introduced  by M. of A. VANEL -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to establishing a reduced sales
          tax rate for certain small businesses

          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. Reduced tax rate for small businesses.  (a)  Notwithstanding
     4  any  provision  of  this  article  to the contrary, the taxes imposed by
     5  subdivision (a) of section eleven hundred  five  of  this  part  on  the
     6  receipts  from  every retail sale of tangible personal property shall be
     7  paid at the rate of two and one-half percent where such sale is made  by
     8  a qualified small business. The provisions of this subdivision shall not
     9  apply  to  the  sale  of  alcoholic  beverages,  cigarettes  and tobacco
    10  products as defined in section four hundred  seventy  of  this  chapter,
    11  firearms,  rifles  and  shotguns  as such terms are defined in 18 U.S.C.
    12  921, motor fuel or diesel motor fuel, and any other product or class  of
    13  product which have a rate of tax set explicitly by this chapter for such
    14  product or class of products.
    15    (b) As used in this section, the term "qualified small business" shall
    16  mean a business which is resident in this state, independently owned and
    17  operated,  not dominant in its field, employs fifty or less persons, and
    18  earned less than an amount in gross sales revenue, as to  be  determined
    19  by the commissioner, in the preceding year.
    20    §  2. This act shall take effect on the first of January next succeed-
    21  ing the date on which it shall have become a  law  and  shall  apply  to
    22  taxable years commencing on and after such date.


         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13525-02-3