Bill > A03314

This bill amends the New York tax law to establish a reduced sales tax rate of 2.5% for qualified small businesses, instead of the standard sales tax rate. A "qualified small business" is defined as a business that is resident in New York, independently owned and operated, not dominant in its field, employs 50 or fewer persons, and earns less than a specific gross sales revenue threshold (to be determined by the tax commissioner). The reduced tax rate applies to retail sales of tangible personal property, with specific exclusions for certain products like alcoholic beverages, cigarettes, tobacco products, firearms, motor fuel, and any products that already have an explicitly set tax rate. The bill will take effect on the first day of January following its passage and will apply to taxable years beginning on or after that date. This legislation aims to provide tax relief for small, locally-owned businesses by offering them a lower sales tax rate, potentially helping to support and encourage small business growth in New York state.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3314