GOVERNOR RELEASES PROPOSED 2019-20 NEW YORK STATE EXECUTIVE BUDGET -

On January 15, 2019, New York State Governor Andrew M. Cuomo released the New York State 2019-20 Executive Budget, applicable to the State’s fiscal year beginning April 1, 2019, which contains several significant tax proposals, including the following:

1. Require marketplace providers to collect sales tax. For the third straight year, the Governor is proposing to impose a New York sales tax collection obligation (now captioned as “Eliminate Internet Tax Advantage”) on “marketplace providers,” defined as persons who collect the purchase price and provide the physical or virtual “forum” (e.g., a store or an Internet website) where the sales transaction occurs, on most sales of tangible personal property that they “facilitate.” Unlike last year’s proposal, there is no “safe harbor” for marketplace providers that facilitate sales exclusively on the Internet of less than $100 million annually. Sellers that receive from the marketplace provider a certification that the provider is collecting sales tax on the facilitated sales would be relieved of the sales tax collection responsibility for those sales. If enacted, the proposed law would apply to sales made on or after September 1, 2019. (Part G.)