S 6742: Eliminates the sales and compensating use taxes on telephone answering services.

  
  STATE OF NEW YORK ________________________________________________________________________ 6742 2025-2026 Regular Sessions  IN SENATE March 21, 2025 ___________ Introduced by Sen. PALUMBO -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to eliminating the sales and compensating use taxes on telephone answering services The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1 of subdivision (b) of section 1105 of the tax 2 law, as amended by section 9 of part S of chapter 85 of the laws of 3 2002, subparagraph (A) as amended by section 1 of part H of chapter 59 4 of the laws of 2019, is amended to read as follows: 5 (1) The receipts from every sale, other than sales for resale, of the 6 following: (A) gas, electricity, refrigeration and steam, and gas, elec- 7 tric, refrigeration and steam service of whatever nature, including the 8 transportation, transmission or distribution of gas or electricity, even 9 if sold separately; (B) telephony and telegraphy and telephone and tele- 10 graph service of whatever nature except interstate and international 11 telephony and telegraphy and telephone and telegraph service and except 12 any telecommunications service the receipts from the sale of which are 13 subject to tax under paragraph two of this subdivision; [(C) a telephone 14 answering service;] and (D) a prepaid telephone calling service. 15 § 2. Subdivision (a) of section 1110 of the tax law, as amended by 16 section 28 of part Y of chapter 63 of the laws of 2000, is amended to 17 read as follows: 18 (a) Except to the extent that property or services have already been 19 or will be subject to the sales tax under this article, there is hereby 20 imposed on every person a use tax for the use within this state on and 21 after June first, nineteen hundred seventy-one except as otherwise 22 exempted under this article, (A) of any tangible personal property 23 purchased at retail, (B) of any tangible personal property (other than 24 computer software used by the author or other creator) manufactured, 25 processed or assembled by the user, (i) if items of the same kind of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11190-01-5 
 S. 6742 2 1 tangible personal property are offered for sale by him in the regular 2 course of business or (ii) if items are used as such or incorporated 3 into a structure, building or real property by a contractor, subcontrac- 4 tor or repairman in erecting structures or buildings, or building on, or 5 otherwise adding to, altering, improving, maintaining, servicing or 6 repairing real property, property or land, as the terms real property, 7 property or land are defined in the real property tax law, if items of 8 the same kind are not offered for sale as such by such contractor, 9 subcontractor or repairman or other user in the regular course of busi- 10 ness, (C) of any of the services described in paragraphs (1), (7) and 11 (8) of subdivision (c) of section eleven hundred five of this part, (D) 12 of any tangible personal property, however acquired, where not acquired 13 for purposes of resale, upon which any of the services described in 14 paragraphs (2), (3) and (7) of subdivision (c) of section eleven hundred 15 five of this part have been performed, [(E) of any telephone answering 16 service described in subdivision (b) of section eleven hundred five of 17 this part,] (F) of any computer software written or otherwise created by 18 the user if the user offers software of a similar kind for sale as such 19 or as a component part of other property in the regular course of busi- 20 ness, (G) of any prepaid telephone calling service, and (H) of any gas 21 or electricity described in subdivision (b) of section eleven hundred 22 five of this part. 23 § 3. Subdivision 4 of section 1131 of the tax law, as amended by 24 section 34 of part Y of chapter 63 of the laws of 2000, is amended to 25 read as follows: 26 (4) "Property and services the use of which is subject to tax" shall 27 include: (a) all property sold to a person within the state, whether or 28 not the sale is made within the state, the use of which property is 29 subject to tax under section eleven hundred ten of this article or will 30 become subject to tax when such property is received by or comes into 31 the possession or control of such person within the state; (b) all 32 information services, protective and detective services and interior 33 decorating and design services as such services are described in subdi- 34 vision (c) of section eleven hundred five of this article, rendered to a 35 person within the state, whether or not such services are rendered from 36 or at a location within the state; (c) all services rendered to a person 37 within the state, whether or not such services are performed within the 38 state, upon tangible personal property the use of which is subject to 39 tax under section eleven hundred ten of this article or will become 40 subject to tax when such property is received by or comes into 41 possession or control of such person within the state; (d) all property 42 sold by a person making sales described in clause (F) of subparagraph 43 (i) of paragraph eight of subdivision (b) of section eleven hundred one 44 of this article to a person described in such clause (F) who purchases 45 such property at retail, whether or not the sale is made within the 46 state; [(e) all telephone answering service rendered to a person within 47 the state, whether or not such services are performed within the state, 48 the use of which is subject to tax under section eleven hundred ten of 49 this article or will become subject to tax when such service is received 50 by or comes into possession or control of such person within the state;] 51 (f) all prepaid telephone calling services sold to a person within the 52 state, whether or not the sale is made within the state, the use of 53 which services are subject to tax under section eleven hundred ten of 54 this article or will become subject to tax when such services are 55 received by or come into the possession or control of such person within 56 the state, and whether or not such services are rendered from or at a 
 S. 6742 3 1 location within the state; and (g) all gas or electricity sold to a 2 person within the state, whether or not the sale is made within the 3 state, the use of which is subject to tax under section eleven hundred 4 ten of this article or will become subject to tax when it is received by 5 or comes into the possession or control of such person within the state, 6 and whether or not it is rendered from or at a location within the 7 state. 8 § 4. This act shall take effect on the first day of the sales tax 9 quarterly period, as described in subdivision (b) of section 1136 of the 10 tax law, next commencing at least 90 days after this act shall have 11 become a law and shall apply in accordance with the applicable transi- 12 tional provisions of sections 1106 and 1217 of the tax law.