Bill > S06359

This bill establishes the "Microbusiness Resiliency and Growth Act," which creates a special sales tax system for very small businesses (microbusinesses) in New York state. A microbusiness is defined as a business with five or fewer employees that is locally owned, not dominant in its field, and primarily conducts business in-person rather than online. The bill provides a tax incentive structure where microbusinesses within their first five years of operation or with gross profits under $500,000 can benefit from reduced sales tax rates: zero percent tax in the first year and two percent in the second year. After the second year, the sales tax returns to the standard four percent. Microbusinesses must maintain detailed quarterly records of employee numbers, wages, and sales tax reductions, and are required to use a segregated sales tax account for tracking transactions. The tax reduction is designed to help offset wage increases by collecting the difference between prior and current minimum wage rates. The act will take effect 90 days after becoming law and will be implemented according to existing tax law transitional provisions.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S6359