NEW YORK (CNS) — New York state lawmakers on Thursday pushed legislation to impose a $50 tax on steel pipe.
The measure, SB 50, was introduced by state Rep. Bill Gorman, R-Manhattan.
Gorman, who represents a borough in Brooklyn, said the bill is intended to bring about greater transparency in the state’s regulatory system and prevent the exploitation of tax loopholes by private entities that are seeking to avoid taxes.
The legislation would impose a 1 percent tax on all steel pipes that are sold, repaired, manufactured or used in New York.
A fee of $2 would be added to each sale of the same pipe.
If the tax rate exceeds the threshold, a $2 surcharge would apply.
Gorman said the measure would provide greater accountability and transparency to the public and industry, which he said is critical for the state to be successful.
“The real benefit of the bill will be to ensure that businesses who are using these loopholes will pay their fair share of taxes,” Gorman said.
Germans have been using the state-based steel tax for years.
In 2014, the state imposed a 5 percent tax for all steel pipe sold in the New York City area.