2018–19 NEW YORK STATE EXECUTIVE BUDGET RELEASED -

New York State Governor Andrew M. Cuomo has released the New York State 2018-2019 Executive Budget, containing several potentially significant tax proposals. They include the following:

1. Require marketplace providers to collect sales tax. For the second straight year, the Governor is seeking to require “marketplace providers,” defined as persons who collect the purchase price and provide the physical or virtual “forum” where the sales transaction occurs, to collect sales tax from customers on sales of tangible personal property that they “facilitate,” where they facilitate at least $100 million in sales each calendar year. New to this year’s proposal, now captioned in the Governor’s supporting memorandum as the “Internet fairness conformity tax,” are several sales tax information return and notice to purchaser requirements imposed on marketplace sellers and marketplaces that do not collect sales tax, whenever the non-collecting seller’s receipts from New York purchasers are at least $5 million in the prior calendar year. If enacted, the new law would go into effect on September 1, 2018. (Part AA.)