TAF-35-09-00003-P Outdated List of Sales and Compensating Use Taxes

9/2/09 N.Y. St. Reg. TAF-35-09-00003-P

NEW YORK STATE REGISTER

VOLUME XXXI, ISSUE 35

September 02, 2009

RULE MAKING ACTIVITIES

DEPARTMENT OF TAXATION AND FINANCE

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. TAF-35-09-00003-P

Outdated List of Sales and Compensating Use Taxes

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend section 525.1 of Title 20 NYCRR. This rule is proposed pursuant to [SAPA § 207(3)], 5-Year Review of Existing Rules.

Statutory authority:

Tax Law, sections 171, subdivided First, 1142(1) and (8) and 1250 (not subdivided)

Subject:

Outdated list of sales and compensating use taxes.

Purpose:

To update and condense section 525.1 of the sales and compensating use tax regulations.

Text of proposed rule:

Section 1. Subdivisions (b) and (c) of section 525.1 of the regulations are REPEALED, and subdivision (d) of such section is relettered to be subdivision (b).

Text of proposed rule and any required statements and analyses may be obtained from:

John W. Bartlett, Tax Regulations Specialist 4, Department of Taxation and Finance, Taxpayer Guidance Division, Building 9, W. A. Harriman Campus, Albany, NY 12227, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Reasoned Justification for Modification of the Rule

The Department of Taxation and Finance submitted for publication in the Rule Review section of the January 7, 2009, issue of the State Register summaries of rules that were adopted by the Commissioner of Taxation and Finance in 1999 and 2004, and a notice of the department’s intent to review such rules pursuant to section 207 of the State Administrative Procedure Act. On December 30, 2008, this information was also posted on the department's web site (http://www.tax.state.ny.us/rulemaker/regulations/fiveyearrev.htm). Comments from the public concerning the continuation or modification of these rules were invited until February 23, 2009.

No public comments were received by the department concerning the 1999 amendments that were made to the “General” provisions found in Part 525 of the Sales and Use Taxes Regulations. Those amendments updated and simplified Part 525 by deleting text that merely repeated the statute or that was superfluous, unnecessarily complex, or no longer applicable. The amendments were adopted by the commissioner on July 26, 1999, and published in the State Register on August 11, 1999, (TAF 22-99-00001 A). The amendments were previously reviewed as part of the department’s 2004 Rule Review published in the State Register on January 7, 2004. As a result of that review of the 1999 amendments, a Rule Review notice indicating that the amendments were being continued without modification was published in the State Register on April 21, 2004.

This notwithstanding, the department has determined as a result of its 2009 review that section 525.1, “Imposition of tax,” is now dated and cannot be continued without modification. On July 31, 2008, the temporary municipal assistance taxes imposed under section 1107 of the Tax Law terminated, and the local taxes in New York City imposed under section 1210 of the law that had been suspended resumed (as amended by Part SS-1 of Chapter 57 of the Laws of 2008). Because section 525.1(b) of the regulations (as added by the 1999 amendments) currently provides that “[s]ales and compensating use taxes are imposed by section[s]… 1107,” this subdivision cannot be continued. Moreover, because this subdivision now includes other unnecessary citations and excludes citations to sections of the Tax Law that have been recently added, rather than maintain the subdivision, it is being repealed in its entirety by this rule. The delineation of the specific sections of law in this subdivision is not essential to the regulation because subdivision (a) of section 525.1 provides that the taxes are “imposed by article 28 and pursuant to the authority of article 29 of the Tax Law.” For this reason, the references to the specific sections of law in subdivision (c) of section 525.1 are also being repealed by the rule. The rule is an accord with the original intent of the 1999 amendments, which was to make the regulations more concise.

It is noted that the remainder of the amendments made in 1999 to these regulations are valid and are continued without modification.

Consensus Rule Making Determination

The Department of Taxation and Finance has determined that no person is likely to object to the adoption of this rule as written because the amendments merely repeal certain regulatory provisions that are no longer applicable to any person and conform to non-discretionary statutory provisions. The amendments update and condense section 525.1 of the sales and compensating use tax regulations by making technical changes, particularly to reflect the termination of the taxes imposed in New York City by section 1107 of the Tax Law. These amendments are not controversial in nature.

Job Impact Statement

A Job Impact Statement is not being submitted with this rule because it is evident from the subject matter that the rule will have no impact on jobs or employment opportunities. The purpose of the rule is simply to update and condense section 525.1 of the sales and compensating use tax regulations by making technical amendments, particularly to reflect the termination of the taxes imposed in New York City by section 1107 of the Tax Law.