New York Association of Convenience Stores

130 Washington Avenue, Suite 300, Albany NY 12210

TELEPHONE: (800) 33-NYACS or (518) 432-1400 FAX: (518) 432-7400

MEMORANDUM IN SUPPORT

S.2625 by Senator Alesi/A.5527 by Assemblyman Schimminger

AN ACT to amend the tax law, in relation to the amount

of credit given vendors for collection of sales tax

The New York Association of Convenience Stores represents nearly 6,000 neighborhood mini marts and convenience stores that are registered with the state Department of Taxation and Finance as sales tax vendors.

The existing sales tax vendor allowance of 3.5%, to a maximum of $600 per year, is no longer reflective of the actual costs and responsibilities associated with the collection, recordkeeping, and remittance of sales taxes on behalf of New York State.

This bill, which would increase the credit to 10% of state sales tax collected to a maximum allowance of $1,000 per year, recognizes that small businesses must be fairly reimbursed for expenses they incur in fulfilling their responsibilities as sales tax vendors.

This is all the more crucial in a business environment in which labor, insurance, energy, credit card acceptance fees, and other costs keep escalating while competition, lack of growth, and market volatility are squeezing profitability. Incredible as it sounds, at present, New York State makes more in sales tax on each gallon of gas sold than most retailers make on that same gallon of gas.

We commend the sponsors for their commitment to helping small businesses remain strong so that they can continue to serve as tax-collecting agents for our State, and we urge their colleagues in the Senate and Assembly to pass this legislation.

James S. Calvin

President, NYACS

April 20, 2005