WEDNESDAY, OCTOBER 21, 2009

COUNTY LEGISLATOR REYNOLDS AGAINST NEW RENEWAL FEE STATE WANTS FOR SALES TAX CERTIFICATES OF AUTHORITY

Erie County Legislator Robert B. Reynolds Jr. (D-Hamburg, Evans) is sponsoring a resolution opposing the newly imposed renewal fee for New York State sales tax certificates of authority, calling it an "onerous burden placed on small businesses."

Legislator Reynolds noted that New York State sales tax vendors who file monthly or quarterly will be required to renew their state sales tax certificates of authority according to a new state law. The New York State Department of Taxation and Finance will randomly select all registered sales tax vendors for renewal on a staggered schedule from now through 2012, requiring the vendors to pay a NEW $50 fee when they renew their certificates.

"This breaks from past tax policy by now requiring that businesses who are monthly or quarterly tax filers renew their certificates in conjunction with paying a new $50 fee is simply a money grab by the state during a period of economic recession," Legislator Reynolds, the Chair of the Finance and Management Committee, said. "With businesses already coping with the effects of a recession that include reduced sales and revenues, New York State should not impose an additional paperwork burden and punitive fee on vendors who file monthly or quarterly."

"This 'nickel and diming' of small businesses will hardly make a dent in New York State coffers, but it will add insult to the injury of the high cost of doing business in New York State," Legislator Reynolds added. "It is also inconceivable that if a vendor fails to renew and continues to collect sales tax, the collection of that tax will be considered illegal. The state may then impose a penalty of up to $10,000 and a business owner may be charged with a misdemeanor."

The County Legislature is expected to take up the resolution at its 2 p.m. Thursday, October 22, regular session.

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