Bill > A01381

This bill modifies the existing tax law to provide a reduced sales tax rate of two percent (instead of the standard four percent) for goods or services purchased from small, local businesses. Specifically, the reduced tax rate applies to businesses that meet four specific criteria: they employ 20 or fewer people, are located within the state of New York, are independently owned and operated, and are not dominant in their particular industry or field. The bill will take effect on the first day of the sales tax quarterly period that begins at least 90 days after the law is enacted, and will be implemented according to existing transitional provisions in the tax law. By offering a lower tax rate, the bill appears designed to provide a financial incentive and support for small, locally-owned businesses in New York State, potentially helping to encourage local economic development and entrepreneurship.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1381