Bill Text: NY A08260 | 2023-2024 | General Assembly | Introduced
Bill Title: Imposes an excise tax on the gross receipts of the sales of firearms, major components of firearms and ammunition; establishes the gun violence prevention and school safety fund.
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A08260 Detail]
Download: New_York-2023-A08260-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8260 2023-2024 Regular Sessions IN ASSEMBLY November 15, 2023 ___________ Introduced by M. of A. ZACCARO -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law and the penal law, in relation to an excise tax on the sale of firearms and ammunition; and to amend the state finance law, in relation to creating a gun violence prevention and school safety fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new article 19-A to read 2 as follows: 3 ARTICLE 19-A 4 EXCISE TAX ON FIREARMS AND AMMUNITION 5 Section 460. Definitions. 6 461. Imposition of tax. 7 462. Registration and renewal. 8 463. Returns and payment of tax. 9 464. Records to be kept; penalties. 10 465. Returns to be secret. 11 466. Administrative provisions. 12 467. Enforcement. 13 468. Deposit and disposition of revenue. 14 § 460. Definitions. For purposes of this article, the following defi- 15 nitions shall apply: 16 (a) The following terms shall have the same meaning as those terms are 17 defined in articles two hundred sixty-five and four hundred of the penal 18 law: "seller of ammunition", "firearm", "dealer in firearms" and "major 19 component of a firearm". 20 (b) "Firearms manufacturer" means any entity licensed to manufacture 21 firearms pursuant to Chapter 44 (commencing with Section 921) of Title 22 18 of the United States Code that engages in any retail sale of a 23 firearm or major component of a firearm to a consumer in New York. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13329-03-3A. 8260 2 1 (c) "Law enforcement agency" shall have the same meaning as set forth 2 in section 705.00 of the criminal procedure law and shall also include 3 any department or agency of the state or of any county, city, or other 4 political subdivision thereof that employs any peace officer who is 5 authorized to carry a firearm while on duty, or any department or agency 6 of the federal government or a federally recognized Indian tribe with 7 jurisdiction that has tribal land in New York that employs any police 8 officer or criminal investigator authorized to carry a firearm while on 9 duty. 10 (d) "Peace officer" shall have the same meaning as in section 2.10 of 11 the criminal procedure law and who is authorized to carry a firearm on 12 duty, or any police officer or criminal investigator employed by the 13 federal government or a federally recognized Indian tribe with jurisdic- 14 tion that has tribal land in New York, who is authorized to carry a 15 firearm while on duty. 16 § 461. Imposition of tax. (a) Commencing July first, two thousand 17 twenty-four, an excise tax is hereby imposed upon licensed dealers in 18 firearms, firearms manufacturers, and sellers of ammunition, at the rate 19 of eleven percent of the gross receipts from the retail sale in this 20 state of any firearm, major component of a firearm , or ammunition. 21 (b) (1) The provisions of this section shall not apply to retail sales 22 of firearms, major components of firearms or ammunition to any active or 23 retired peace officer or any law enforcement agency employing that peace 24 officer. 25 (2) There are exempted from the tax imposed by this article, the gross 26 receipts from the retail sale of any firearm, major component of a 27 firearm, or ammunition by any licensed dealer in firearms, firearms 28 manufacturer, or seller of ammunition in any quarterly period in which 29 the total gross receipts from the retail sales of firearms, major compo- 30 nents of firearms, or ammunition is less than five thousand dollars. 31 § 462. Registration and renewal. (a) Every licensed dealer in 32 firearms, firearms manufacturer, or seller of ammunition on whom tax is 33 imposed under this article must file with the commissioner a properly 34 completed application for a certificate of registration and obtain such 35 certificate before engaging in business. An application for a certif- 36 icate of registration must be submitted electronically, on a form 37 prescribed by the commissioner, and must be accompanied by a non-refund- 38 able application fee as set by the commissioner. A certificate of regis- 39 tration shall not be assignable or transferable and shall be destroyed 40 immediately upon such person ceasing to do business as specified in such 41 certificate, or in the event that such business never commenced. 42 (b) (1) The commissioner shall refuse to issue a certificate of regis- 43 tration to any applicant and shall revoke the certificate of registra- 44 tion of any such person who does not possess a valid license under arti- 45 cle four hundred of the penal law. 46 (2) The commissioner may refuse to issue a certificate of registration 47 to any applicant where such applicant: 48 (i) has a past-due liability as that term is defined in section one 49 hundred seventy-one-v of this chapter; 50 (ii) has had a certificate of registration under this article revoked 51 or suspended where such revocation or suspension was in effect on the 52 date the application was filed or ended within one year from the date on 53 which such application was filed; 54 (iii) has been convicted of a crime provided for in this chapter with- 55 in one year from the date on which such application was filed or the 56 certificate was issued, as applicable;A. 8260 3 1 (iv) willfully fails to file a report or return required by this arti- 2 cle; 3 (v) willfully files, causes to be filed, gives or causes to be given a 4 report, return, certificate or affidavit required by this article which 5 is false; or 6 (vi) willfully fails to collect or truthfully account for or pay over 7 any tax imposed by this article. 8 (3) The commissioner may revoke the certificate of registration issued 9 to any person who: 10 (i) has had any license or registration provided for in this chapter 11 revoked or suspended; 12 (ii) has been convicted of a crime provided for in this chapter where 13 such conviction occurred not more than one year prior to the date of 14 revocation; 15 (iii) willfully fails to file a report or return required by this 16 article; 17 (iv) willfully files, causes to be filed, gives or causes to be given 18 a report, return, certificate or affidavit required by this article 19 which is false; or 20 (v) willfully fails to collect or truthfully account for or pay over 21 any tax imposed by this article. 22 A person who is notified of a revocation of their certificate of 23 registration pursuant to this paragraph shall have the right to have the 24 revocation reviewed by the commissioner or their designee by contacting 25 the department at a telephone number or an address to be disclosed in 26 the notice of revocation within ten days of such person's receipt of 27 such notification. Such person may present written evidence or argument 28 in support of their defense to the revocation or may appear at a sched- 29 uled conference with the commissioner or their designee to present oral 30 arguments and written and oral evidence in support of such defense. The 31 commissioner or their designee is authorized to delay the effective date 32 of the revocation to enable such person to present further evidence or 33 arguments in connection with the revocation. The commissioner or their 34 designee shall cancel the revocation of the certificate of registration 35 if the commissioner or their designee is not satisfied by a preponder- 36 ance of the evidence that a basis for revocation pursuant to this para- 37 graph exists. An order of revocation of a certificate of registration 38 under this paragraph shall not be reviewable by the division of tax 39 appeals but may be reviewed pursuant to article seventy-eight of the 40 civil practice law and rules by a proceeding commenced in the supreme 41 court within four months of the revocation petitioning that the order of 42 revocation be enjoined or set aside. Such proceeding shall be insti- 43 tuted in the county where the commissioner has their principal office. 44 Upon the filing of such petition the court shall have jurisdiction to 45 set aside such order of revocation, in whole or in part, or to dismiss 46 the petition. The jurisdiction of the supreme court shall be exclusive 47 and its order dismissing the petition or enjoining or setting aside such 48 order, in whole or in part, shall be final, subject to review by the 49 appellate division of the supreme court and the court of appeals in the 50 same manner and form and with the same effect as provided by law for 51 appeals from a judgment in a special proceeding. All such proceedings 52 shall be heard and determined by the court and by any appellate court as 53 expeditiously as possible and with lawful precedence over other civil 54 matters. All such proceedings for review shall be heard on the petition, 55 transcript and other papers, and on appeal shall be heard on the record, 56 without requirement of printing.A. 8260 4 1 (c) Where a person that does not possess a certificate of registration 2 under this section has been determined to have possessed or sold any 3 firearm, major component of a firearm or ammunition: 4 (1) The commissioner may revoke a certificate of authority issued to 5 such person pursuant to section eleven hundred thirty-four of this chap- 6 ter for a place of business where such person has been determined to 7 have possessed for sale or to have sold firearms, major components of 8 firearms or ammunition three or more times within a period of five years 9 without a certificate of registration. 10 (2) The commissioner may refuse to issue a certificate of authority 11 under section eleven hundred thirty-four of this chapter to a person 12 upon whom tax is imposed under this article unless the applicant 13 provides the commissioner with adequate documentation demonstrating that 14 such applicant acquired the premises or business through an arm's length 15 transaction as defined in paragraph (e) of subdivision one of section 16 four hundred eighty-a of this chapter and that the sale or lease was not 17 conducted, in whole or in part, for the purpose of permitting the 18 original registrant to avoid the effect of the previous revocation for 19 the same premises. 20 (d) A certificate of registration shall be valid for the period speci- 21 fied thereon, unless earlier suspended or revoked. Upon the expiration 22 of the term stated on a certificate of registration, such certificate 23 shall be null and void. 24 (e) Every holder of a certificate of registration must notify the 25 commissioner of changes to any of the information stated on the certif- 26 icate, or of changes to any information contained in the application for 27 the certificate of registration. Such notification must be made on or 28 before the last day of the month in which a change occurs and must be 29 made electronically on a form prescribed by the commissioner. 30 (f) Every holder of a certificate of registration under this article 31 shall be required to reapply prior to such certificate's expiration, 32 during a reapplication period established by the commissioner. Such 33 reapplication period shall not occur more frequently than every two 34 years. Such reapplication shall be subject to the same requirements and 35 conditions as an initial application, including grounds for refusal and 36 the payment of the application fee. 37 (g) (1) The department shall notify the division of state police if, 38 after providing notice and the opportunity for a hearing, the department 39 has revoked the certificate of registration of a licensed firearms deal- 40 er, seller of ammunition, or firearms manufacturer for violating any 41 provision of this article. 42 (2) The holder of a certificate of registration that has had their 43 certificate revoked pursuant to this article may petition the department 44 for reinstatement of the certificate by paying the amount of unpaid 45 excise tax determined, together with any interest and penalties, demon- 46 strating full compliance with the provisions of this article, and paying 47 a fee of fifty dollars to the department for reinstatement. The depart- 48 ment shall reinstate the certificate of registration of any revoked 49 certificate holder that has satisfactorily complied with this 50 subsection. 51 § 463. Returns and payment of tax. (a) Every person on whom tax is 52 imposed under this article shall, on or before the twentieth day of the 53 month following each quarterly period ending on the last day of Febru- 54 ary, May, August, and November, respectively, file electronically with 55 the commissioner a return on forms to be prescribed by the commissioner,A. 8260 5 1 showing the total amount of tax due in such quarterly period, and 2 including such other information as the commissioner may require. 3 (b) Every person required to file a return under this section shall, 4 at the time of filing such return, pay electronically to the commission- 5 er the total amount of tax due for the period covered by such return. If 6 a return is not filed when due, the tax shall be due on the day on which 7 the return is required to be filed. 8 § 464. Records to be kept; penalties. (a) Records to be kept. Every 9 licensed dealer in firearms, firearms manufacturer, and seller of ammu- 10 nition, on whom tax is imposed under this article shall maintain 11 complete and accurate records in such form as the commissioner may 12 require. Such records must be preserved for a period of three years 13 after the filing of the return to which such records relate and must be 14 provided to the commissioner upon request. 15 (b) Penalties. In addition to any other penalty provided in this arti- 16 cle or otherwise imposed by law, every person on whom tax is imposed 17 under this article who fails to maintain or make available to the 18 commissioner the records required by this section is subject to a penal- 19 ty not to exceed five hundred dollars for each month or part thereof for 20 which the failure occurs. This penalty may not be imposed more than once 21 for failures for the same monthly period or part thereof. If the 22 commissioner determines that a failure to maintain or make available 23 records in any month was entirely due to reasonable cause and not to 24 willful neglect, the commissioner must remit the penalty for that month. 25 § 465. Returns to be secret. (a) Except in accordance with proper 26 judicial order or as in this section or otherwise provided by law, it 27 shall be unlawful for the commissioner, any officer or employee of the 28 department, or any officer or person who, pursuant to this section, is 29 permitted to inspect any return or report or to whom a copy, an abstract 30 or a portion of any return or report is furnished, or to whom any infor- 31 mation contained in any return or report is furnished, or any person who 32 in any manner may acquire knowledge of the contents of a return or 33 report filed pursuant to this article to divulge or make known in any 34 manner the content or any other information contained in any return or 35 report required under this article. The officers charged with the custo- 36 dy of such returns or reports shall not be required to produce any of 37 them or evidence of anything contained in them in any action or preced- 38 ing in any court, except on behalf of the state or the commissioner in 39 an action or proceeding involving the collection of tax due under this 40 chapter to which the state or the commissioner is a party or a claimant 41 or on behalf of any party to any action or proceeding under the 42 provisions of this article, when the returns or the reports or the facts 43 shown thereby are directly involved in such action or proceeding, or in 44 an action or proceeding related to the regulation or taxation of 45 firearms or ammunition on behalf of officers to whom information shall 46 have been supplied as provided in this section, in any of which events 47 the court may require the production of, and may admit in evidence so 48 much of said returns or reports or of the facts shown thereby as are 49 pertinent to the action or proceeding and no more. Nothing herein shall 50 be construed to prohibit the commissioner, in his or her discretion, 51 from allowing the inspection or delivery of a certified copy of any 52 return or report filed under this article or of any information 53 contained in any such return or report to the attorney general or other 54 legal representatives of the state when an action shall have been recom- 55 mended or commenced pursuant to this chapter in which such returns or 56 reports or the facts shown thereby are directly involved; or theA. 8260 6 1 inspection of the returns or reports required under this article by the 2 comptroller or duly designated officer or employee of the state depart- 3 ment of audit and control, for purposes of the audit of a refund of any 4 tax paid by any person under this article; nor to prohibit the delivery 5 to such person or a duly authorized representative of such person, a 6 certified copy of any return or report filed by such person pursuant to 7 this article, nor to prohibit the publication of statistics so classi- 8 fied as to prevent the identification of particular returns or reports 9 and the items thereof. This section shall also not be construed to 10 prohibit the disclosure, for tax administration purposes, to the divi- 11 sion of the budget and the office of the state comptroller, of informa- 12 tion aggregated from the returns filed by all persons subject to the 13 taxes imposed by the article, whether the number of such persons is one 14 or more. 15 (b) The commissioner, in his or her discretion, may permit the appro- 16 priate officers of any other state that regulates or taxes firearms, 17 major components of firearms or ammunition or the duly authorized repre- 18 sentatives of any such officers, to inspect returns or reports made 19 pursuant to this article, or may furnish to such other officers, or 20 their duly authorized representatives, a copy of any such return or 21 report or an abstract of the information therein contained, or any 22 portion thereof, or may supply any such officers or such representatives 23 with information relating to the business of a person making returns or 24 reports hereunder solely for purposes of tax administration. The commis- 25 sioner may refuse to supply information pursuant to this subdivision to 26 the officers of any other state if the statutes of the state represented 27 by such officers do not grant substantially similar privileges to the 28 commissioner, but such refusal shall not be mandatory. Information shall 29 not be supplied to the officers of any state unless such officer or 30 other representatives shall agree not to divulge or make known in any 31 manner the information so supplied, but such officers may transmit such 32 information to their employees or legal representatives when necessary, 33 who in turn shall be subject to the same restrictions as those hereby 34 imposed upon such officer or other representatives. 35 (c)(1) Any officer or employee of the state who willfully violates the 36 provisions of subdivision (a) or (b) of this section shall be dismissed 37 from office and be incapable of holding any public office in this state 38 for a period of five years thereafter. 39 (2) For criminal penalties, see article thirty-seven of this chapter. 40 § 466. Administrative provisions. The provisions of article twenty- 41 seven of this chapter shall apply to the taxes imposed by section four 42 hundred sixty-one of this article in the same manner and with the same 43 force and effect as if the language of such article had been incorpo- 44 rated in full into this section and had expressly referred to the tax 45 imposed by this article, except to the extent that any provision of such 46 article is either inconsistent with a provision of this article or is 47 not relevant to this article. 48 § 467. Enforcement. The commissioner or the commissioner's duly 49 authorized representatives are hereby authorized: 50 (a) To conduct regulatory inspections during normal business hours of 51 any place of business. 52 (b) To examine any books, papers, invoices and other records of any 53 place of business of a dealer in firearms, or seller of ammunition or 54 major components of firearms. Any person in possession, control or occu- 55 pancy of any such business is required to give to the commissioner or 56 the commissioner's duly authorized representatives the means, facili-A. 8260 7 1 ties, and opportunity for such examinations. For the purposes of this 2 section, "place of business" shall not include a residence or other real 3 property, or any personal vehicle on or about such property, not held 4 out as open to the public or otherwise being utilized in a business or 5 commercial manner, unless probable cause exists to believe that such 6 residence, real property or vehicle is being used in such a business or 7 commercial manner for the buying or selling of firearms, major compo- 8 nents of firearms or ammunition. 9 (c) If any person registered under section four hundred sixty-two of 10 this article, or their agents, refuses to give the commissioner, or the 11 commissioner's duly authorized representatives, the means, facilities 12 and opportunity for the inspections and examinations required by this 13 section, the commissioner, after notice and an opportunity for a hear- 14 ing, may revoke their registration to sell firearms or ammunition: 15 (i) for a period of one year for the first such failure; 16 (ii) for a period of up to three years for a second such failure with- 17 in a period of three years; and 18 (iii) for a period of up to seven years for a third such failure with- 19 in five years. 20 § 468. Deposit and disposition of revenue. All taxes, interest, and 21 penalties collected or received by the commissioner under this article 22 shall be deposited and disposed of pursuant to the provisions of section 23 one hundred seventy-one-a of this chapter, provided that an amount equal 24 to one hundred percent collected under this article less any amount 25 determined by the commissioner to be reserved by the comptroller for 26 refunds or reimbursements shall be paid by the comptroller to the credit 27 of the gun violence prevention and school safety fund established by 28 section ninety-nine-rr of the state finance law. Of the total revenue 29 collected or received under this article, the comptroller shall retain 30 such amount as the commissioner may determine to be necessary for 31 refunds. The commissioner is authorized and directed to deduct from the 32 registration fees under subdivision (a) of section four hundred sixty- 33 one of this article, before deposit into the fund designated by the 34 comptroller, a reasonable amount necessary to effectuate refunds of 35 appropriations of the department to reimburse the department for the 36 costs incurred to administer, collect, and distribute the taxes imposed 37 by this article. 38 § 2. The penal law is amended by adding a new section 400.04 to read 39 as follows: 40 § 400.04 Firearm and ammunition excise tax administration. 41 1. By no later than March thirty-first, two thousand twenty-four, and 42 thereafter by no later than the last day of each calendar quarter, the 43 division of state police shall provide a list, including the names and 44 business locations of all licensed firearm dealers, firearm manufactur- 45 ers, and sellers of ammunition in the statewide license and record data- 46 base maintained under section 400.02 of this article to the department 47 of taxation and finance for the purposes of administering the excise tax 48 imposed pursuant to article nineteen-a of the tax law. 49 2. The division of state police may revoke any license of a seller of 50 ammunition or firearms dealer or firearms manufacturer upon notification 51 from the department of taxation and finance that, after providing notice 52 and the opportunity for a hearing, the department of taxation and 53 finance has revoked the licensee's certificate of registration, pursuant 54 to section four hundred sixty-two of the tax law. 55 3. The licensing authority may reinstate a license that has been 56 revoked if the department of taxation finance has reinstated theA. 8260 8 1 licensee's certificate of registration or the seller's permit, as appli- 2 cable. 3 § 3. The state finance law is amended by adding a new section 99-rr to 4 read as follows: 5 § 99-rr. Gun violence prevention and school safety fund. 1. There is 6 hereby established in the joint custody of the state comptroller and the 7 commissioner of taxation and finance a special fund to be known as the 8 gun violence prevention and school safety fund. 9 2. Such fund shall consist of all revenues received by the department 10 of taxation and finance, pursuant to the provisions of article nine- 11 teen-a of the tax law and all other moneys credited or transferred ther- 12 eto from any other fund or source pursuant to law. Nothing contained in 13 this section shall prevent the state from receiving grants, gifts or 14 bequests for the purposes of the fund as defined in this section and 15 depositing them into the fund according to law. 16 3. The moneys in such fund shall be expended for the following 17 purposes: 18 (a) to the department of education to enhance school safety by 19 addressing risk factors for gun violence affecting pupils in kindergar- 20 ten through grade twelve, through the funding of related measures, 21 including, physical security improvements, physical safety assessments, 22 school-based or school-linked mental health and behavioral services, 23 including training for teachers and employees, and before school and 24 after school programs for at-risk pupils; 25 (b) to support a court-based firearm relinquishment grant program to 26 ensure the prompt, consistent, and safe removal of firearms by state and 27 local law enforcement agencies from individuals who become prohibited 28 from owning or possessing firearms and ammunition pursuant to a criminal 29 conviction or other criminal or civil court order, including, but not 30 limited to, criminal protective orders, domestic violence restraining 31 orders, gun violence restraining orders, civil harassment restraining 32 orders, and workplace violence restraining orders; 33 (c) to fund a victims of gun violence grant program to support 34 evidence-based activities to equitably improve investigations and clear- 35 ance rates in firearm homicide and firearm assault investigations in 36 communities disproportionately impacted by firearm homicides and firearm 37 assaults which may include hiring and training detectives dedicated to 38 investigating these offenses, hiring and training personnel or other 39 partners to coordinate with victims and witnesses or to collect, proc- 40 ess, and test relevant evidence, improving data analysis, forensics, and 41 technological capacities, and promoting recurring and trauma-informed 42 engagement with victims, witnesses, and other impacted community members 43 in a manner that builds trust, safety, and collaboration; 44 (d) to support activities to inform firearm and ammunition purchasers 45 and firearm owners about gun safety laws and responsibilities, such as 46 safe firearm storage, and to promote implementation and coordination of 47 gun violence prevention efforts through activities such as technical 48 assistance, training, capacity building, and local gun violence data and 49 problem analysis support for local governments, law enforcement agen- 50 cies, community-based service providers, and other stakeholders; 51 (e) to provide counseling and trauma-informed support services to 52 direct and secondary victims of mass shootings and other gun homicides 53 and to individuals who have experienced chronic exposure to community 54 gun violence;A. 8260 9 1 (f) for gun violence research and initiatives to educate health care 2 providers and other stakeholders about clinical tools and other inter- 3 ventions for preventing firearm suicide and injury; and 4 (g) to fund and support activities and programs focused on preventing 5 gun violence, supporting victims of gun violence, and otherwise remedi- 6 ating the harmful effects of gun violence. 7 4. Moneys in the firearm violence research fund may be invested by the 8 comptroller pursuant to section ninety-eight-a of this article, and any 9 income received by the comptroller shall be used for the purposes of 10 such fund. 11 § 4. Severability. If any clause, sentence, paragraph, subdivision, 12 section or part of this act shall be adjudged by any court of competent 13 jurisdiction to be invalid, such judgment shall not affect, impair, or 14 invalidate the remainder thereof, but shall be confined in its operation 15 to the clause, sentence, paragraph, subdivision, section or part there- 16 of directly involved in the controversy in which such judgment shall 17 have been rendered. It is hereby declared to be the intent of the legis- 18 lature that this act would have been enacted even if such invalid 19 provisions had not been included herein. 20 § 5. This act shall take effect immediately, provided that sections 21 one and three of this act shall take effect January 1, 2025. Effective 22 immediately, the addition, amendment and/or repeal of any rule or regu- 23 lation necessary for the implementation of this act on its effective 24 date are authorized to be made and completed on or before such effective 25 date.
