Public comments for: Proposed Rules Regarding Unlawful Sales Tax

Comments

Comment:
1. The title of the proposed rule at <https://rules.cityofnewyork.us/proposed-rules> should be revised to read, "Proposed Rules Regarding Unlawful Collection of Sales Tax." The current title, "Proposed Rules Regarding Unlawful Sales Tax," is unintentionally ludicrous, since New York state and city sales taxes themselves are definitely not unlawful. 2. The "Statement of Basis and Purpose of Proposed Rule" should be revised to correctly identify the activities intended to be codified as deceptive trade practices. The proposed rule centers on the unlawful collection of sales tax, not the "collection of unlawful sales tax." New York state and city sales taxes are lawful, but certain sales tax collection practices can be definitely unlawful. 3. 6 RCNY § 5-41, as proposed to be amended, will address three deceptive trade practices. Comprehension, summonsing, and enforcement will be likely improved and expedited, and technical legal inquiries and challenges will be likely minimized, if not eliminated, if each deceptive trade practice is distinctly codified-- for example: 6 RCNY § 5-41(a), to address the unlawful collection of sales tax, where Article 28 of the Tax Law does not provide for the collection of sales tax; 6 RCNY § 5-41(b), to address the unlawful representation that sales tax may be collected, where Article 28 of the Tax Law does not provide for such collection of sales tax; and 6 RCNY § 5-41(c), to address the unlawful misrepresentation of the amount of sales tax required to be collected pursuant to Article 28 of the Tax Law. 4. The proposed rule should be expanded to include modifying the catchline of 6 RCNY § 5-41 from the obviously misleading "Unlawful Sales Tax" to "Unlawful Sales Tax Collection Practices," or similar wording.
Agency: DCA