Source: https://www.nysenate.gov/legislation/bills/2019/s8166
Timestamp: 2020-06-01 23:57:07
Document Index: 452794918

Matched Legal Cases: ['§1105', '§78', '§683', '§ 2', '§  78', '§  3', '§ 683']

Relates to sales tax on digital advertising
Apr 13, 2020 referred to budget and revenue
Amd §1105, Tax L; add §78-c, St Fin L; add §683-c, Ed L
Imposes sales tax on digital advertising; establishes digital advertising services tax revenue fund; establishes zero interest education loan refinancing program.
sales tax on digital advertising; to amend the education law, in
relation to zero interest undergraduate loan refinancing; and providing
The purpose of this bill is to create a tax on digital advertising that
will fund a zero interest student loan refinancing program within the
higher education services corporation (HESC).
Section one amends the tax law to create a sales tax on digital adver-
Section two amends the state finance law to create a digital advertising
services tax revenue fund, in the custody of the state comptroller, to
be used exclusively for providing zero interest refinancing of eligible
education loans by corporation (HESC).
Section three amends the education law to create the zero interest
student loan refinancing program within HESC. The program will begin
disbursing loans in 2022 based on the availability of funds in the
digital advertising services tax revenue fund. The student loan borrow-
ers who have been residents of NYS for at least twenty-four consecutive
months, owe less than $100,000 in student loans, and are current on
their loan payments may apply. The max loan amount is $100,000 and the
minimum loan amount is $3,000.
Student borrowers are strapped with high-interest loans and heavy debt
that take years to pay off.
According to a 2016 report by the NYS comptroller, student loan debt is
rapidly increasing and has reached over $82 billion dollars. To help
this crisis it is imperative to find revenue that will help students pay
off their debt and lighten their financial burden.
This revenue can be found through taxation of the digital advertising
industry. According to Statista, the amount spent on digital advertising
will add up to more than $330 billion dollars in 2021.
Currently, NYS does not implement a tax on the digital advertising
industry. This bill will impose a digital advertising tax and create a
digital advertising services tax revenue fund to implement a new zero
interest refinancing program within HESC.
sales  tax  on  digital  advertising;  to  amend the education law, in
relation to zero interest undergraduate loan refinancing; and  provid-
ing for the repeal of such provisions upon the expiration thereof
Section 1. Subdivision (c) of section 1105 of the tax law  is  amended
by adding a new paragraph 1-a to read as follows:
(1-A) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, THE RECEIPTS FROM EVERY SALE, EXCEPT FOR RESALE, OF DIGITAL ADVER-
TISING SERVICES. FOR PURPOSES OF THIS PARAGRAPH:
(I)  "DIGITAL  ADVERTISING SERVICES" MEANS ADVERTISEMENT SERVICES ON A
DIGITAL INTERFACE, INCLUDING ADVERTISEMENTS IN THE FORM OF BANNER ADVER-
TISING, SEARCH ENGINE ADVERTISING, INTERSTITIAL ADVERTISING,  AND  OTHER
COMPARABLE  ADVERTISING  SERVICES WHICH MARKETS OR PROMOTES A PARTICULAR
GOOD, SERVICE, OR POLITICAL CANDIDATE OR MESSAGE.
(II) "DIGITAL INTERFACE" MEANS  ANY  TYPE  OF  SOFTWARE,  INCLUDING  A
WEBSITE,  PART  OF  A  WEBSITE,  OR  APPLICATION, THAT A USER IS ABLE TO
(III) "USER" MEANS AN INDIVIDUAL OR ANY OTHER PERSON  WHO  ACCESSES  A
DIGITAL INTERFACE WITH A DEVICE.
ALL REVENUE RECEIVED FROM THE IMPOSITION OF THIS TAX SHALL BE DEPOSIT-
ED  INTO  THE  DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTABLISHED
PURSUANT TO SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
§ 2. The state finance law is amended by adding a new section 78-c  to
§  78-C.  DIGITAL  ADVERTISING  SERVICES TAX REVENUE FUND. 1. THERE IS
HEREBY CREATED AND ESTABLISHED IN THE SOLE CUSTODY OF  THE  STATE  COMP-
TROLLER  A  SPECIAL FUND TO BE KNOWN AS THE DIGITAL ADVERTISING SERVICES
TAX REVENUE FUND WHICH SHALL BE FOR THE EXCLUSIVE BENEFIT  OF  PROVIDING
ZERO  INTEREST  REFINANCING  OF  ELIGIBLE  EDUCATION LOANS BY THE HIGHER
EDUCATION SERVICES CORPORATION UNDER SECTION SIX HUNDRED  EIGHTY-THREE-C
2.  AMOUNTS HELD IN THIS FUND SHALL NOT BE, OR BE DEEMED, FUNDS OF THE
STATE OR FUNDS UNDER THE MANAGEMENT OF THE STATE OR THE HIGHER EDUCATION
SERVICES CORPORATION. THE OBLIGATIONS OF THE FUND SHALL NOT  BE,  OR  BE
DEEMED,  THE  DEBTS  OR OBLIGATIONS OF THE STATE AND THE STATE SHALL NOT
BE, OR BE DEEMED, IN ANY WAY OBLIGATED TO ANY HOLDER OF ANY SUCH  EDUCA-
TION LOAN.
3. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE DEPARTMENT OF
TAXATION  AND  FINANCE PURSUANT TO PARAGRAPH ONE-A OF SUBDIVISION (C) OF
SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW. MONEYS IN THE FUND SHALL  BE
SEGREGATED  FROM ALL OTHER FUNDS KEPT BY THE STATE COMPTROLLER AND SHALL
NOT BE USED FOR ANY OTHER PURPOSE BEYOND THOSE SET FORTH IN SECTION  SIX
HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW OR IN THIS SECTION.
4.  THE STATE COMPTROLLER SHALL MAKE PAYMENTS FROM THE FUND IN AMOUNTS
AND AT TIMES REQUIRED  BY  THE  HIGHER  EDUCATION  SERVICES  CORPORATION
PURSUANT SECTION SIX HUNDRED EIGHTY-THREE-C OF THE EDUCATION LAW.
§  3.  The  education  law is amended by adding a new section 683-c to
§ 683-C. REFINANCE OF UNDERGRADUATE  STUDENT  LOANS.  1.  AN  ELIGIBLE
BORROWER,  AS  DEFINED  IN THIS SECTION, MAY APPLY TO HAVE THEIR FEDERAL
AND PRIVATE UNDERGRADUATE EDUCATION LOANS REFINANCED BY THE CORPORATION.
THE MAXIMUM AMOUNT ALLOWED TO BE REFINANCED UNDER THIS SECTION SHALL  BE
ONE  HUNDRED THOUSAND DOLLARS. THE MINIMUM AMOUNT TO BE REFINANCED SHALL
BE THREE THOUSAND DOLLARS.
2. AN ELIGIBLE BORROWER SHALL INCLUDE AN INDIVIDUAL WHO: (A) HAS  BEEN
A  NEW  YORK  STATE RESIDENT FOR AT LEAST TWENTY-FOUR CONSECUTIVE MONTHS
PRIOR TO APPLICATION FOR REFINANCING; (B) OWES  LESS  THAN  ONE  HUNDRED
THOUSAND  DOLLARS  IN FEDERAL AND PRIVATE UNDERGRADUATE EDUCATION LOANS;
AND (C) IS CURRENT ON THEIR LOAN PAYMENTS.
3. BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-TWO,  THE  CORPORATION
SHALL OFFER ZERO PERCENT INTEREST RATE REFINANCING BASED ON AVAILABILITY
OF  FUNDS  IN  THE  DIGITAL ADVERTISING SERVICES TAX REVENUE FUND ESTAB-
LISHED IN SECTION SEVENTY-EIGHT-C OF THE STATE FINANCE LAW.
4. (A) A BORROWER MAY BE GRANTED DEFERMENT OR FORBEARANCE  UP  TO  TWO
TIMES DURING THE REPAYMENT PERIOD UPON A SHOWING OF ECONOMIC HARDSHIP.
(B)  THE  CORPORATION  SHALL ESTABLISH TERMS FOR REPAYMENT OF LOANS ON
THE BASIS OF THE INCOME OF THE BORROWER. THERE SHALL BE NO  PENALTY  FOR
(C)  LOANS  REFINANCED  UNDER  THIS SECTION SHALL BE ELIGIBLE FOR LOAN
FORGIVENESS PROGRAMS AVAILABLE TO PUBLIC SERVICE EMPLOYEES.
5. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO  PROMULGATE
RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THE PROVISIONS
have become a law and shall apply to sales made and  uses  occurring  on
and  after  such date although made, occurring or rendered under a prior
contract; provided that this act shall expire and be deemed  repealed  5