In an era where online shopping now dominates the commercial market, New York lawmakers have proposed a bill that would impose a jarring $3 surcharge on online delivery transactions with a final destination within New York City.
“This bill raises real revenue for the MTA ...”
The fee
On March 30, 2023, New York Assembly Bill 6008 was introduced proposing a $3 additional surcharge which would be imposed on online delivery transactions terminating within New York City. A “delivery transaction” is defined as a transaction resulting in the delivery of any item purchased online to the purchaser.
THE EXCLUSIONS
Thankfully, the bill includes a few exclusions to a “delivery transaction” such as medicine, diapers, baby formula, as well as any food or food products, among others. However, although delivery transactions exclude “products consumed by humans for the preservation of health”, cosmetics and toiletry items are included.
Although the fee would be passed along to purchasers, online retailers would be liable for both reporting and remitting the fee. Online retailers who have New York City destined deliveries would be required to register with the New York City Department of Finance, pay the $1.50 registration fee and remit a monthly return by the 20th. It should be noted that this registration and return requirement would be in addition to a sales tax registration and return requirement, and irrespective of physical or economic nexus with New York City.
The response
Although all online retailers will be burdened with the additional compliance and associated time and costs, once again the impact will inevitably affect small businesses disproportionately. Let us help ease your burden.