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Senate passes penal law bill to curb sales‑tax "zapper" schemes; Krueger warns of $1.7 billion loss
Summary
Senate passed a penal law change aimed at curbing technology and schemes that hide sales transactions and withhold collected sales tax. Sponsor Senator Krueger said New York loses up to $1.7 billion annually to such activity.
Albany, May 5, 2025 — The State Senate passed a penal law measure sponsored by Senator Krueger aimed at strengthening enforcement against systems that hide retail transactions and the sales tax collected on them.
Sponsor's account: On the floor, Senator Krueger explained the bill's purpose and the revenue stakes. "We are losing up to $1,700,000,000 a year in sales tax revenue that is collected from the citizens of New York but never given to us," she said, describing the technology and practices sometimes called "zappers" that can conceal sales and avoid remittance. Krueger said the bill updates enforcement tools to make it harder for firms to use technology to evade tax law and to protect businesses that comply.
What the vote did: The bill (listed in the calendar as Senate print 3204) was presented on the floor, discussed by its sponsor, and then put to a vote. The clerk recorded the vote and the bill was announced as passed.
Discussion vs. decision: The floor discussion consisted of the sponsor's explanation and an appeal for enactment; the Senate did not record amendments in the transcript excerpts. The formal action taken was passage of the bill as read on May 5.
Implications and next steps: Senator Krueger urged swift executive action on signing. The transcript does not include the governor's position or an effective date beyond the reading that "Section 5" takes effect on November 1 (as read on the floor). Implementation details and administrative rules would be set after the bill becomes law.
Ending: The measure passed on the Senate floor and awaits further processing (enrollment, transmission to the governor, or other post‑passage steps as per usual legislative practice).
