senate Bill S3203B

Signed by Governor

Exempts the sale and installation of commercial solar energy systems equipment from state sales and compensating use taxes; grants localities option to exempt

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 11 / Feb / 2011
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 12 / Apr / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 03 / May / 2011
    • AMEND AND RECOMMIT TO FINANCE
  • 03 / May / 2011
    • PRINT NUMBER 3203A
  • 02 / Jun / 2011
    • 1ST REPORT CAL.957
  • 06 / Jun / 2011
    • 2ND REPORT CAL.
  • 07 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 13 / Jan / 2012
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 13 / Jan / 2012
    • PRINT NUMBER 3203B
  • 18 / Apr / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 15 / May / 2012
    • 1ST REPORT CAL.792
  • 16 / May / 2012
    • 2ND REPORT CAL.
  • 21 / May / 2012
    • ADVANCED TO THIRD READING
  • 31 / May / 2012
    • PASSED SENATE
  • 31 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 31 / May / 2012
    • REFERRED TO WAYS AND MEANS
  • 21 / Jun / 2012
    • SUBSTITUTED FOR A5522B
  • 21 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.536
  • 21 / Jun / 2012
    • PASSED ASSEMBLY
  • 21 / Jun / 2012
    • RETURNED TO SENATE
  • 06 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2012
    • SIGNED CHAP.406
  • 17 / Aug / 2012
    • APPROVAL MEMO.7

Summary

Exempts the sale and installation of commercial solar energy systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.

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Bill Details

See Assembly Version of this Bill:
A5522B
Versions:
S3203
S3203A
S3203B
Legislative Cycle:
2011-2012
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1115 & 1210, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S5074A, A7672A

Sponsor Memo

BILL NUMBER:S3203B

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting the sale and installation
of commercial solar energy systems equipment from state sales and
compensating use taxes and granting municipalities the option to
grant such exemption

PURPOSE OR GENERAL IDEA OF THE BILL:
Exempts the sale and installation of commercial solar energy systems
equipment from sales and compensating use taxes.

SUMMARY OF PROVISIONS:
Receipts from the retail sale of commercial solar energy systems
equipment and the service of installing such systems, shall be exempt
from taxes imposed by sections eleven hundred five and eleven hundred
eleven of this article. For the purposes of this subdivision,
commercial solar energy systems equipment shall mean an arrangement
or combination of components installed upon nonresidential premises
that utilize solar radiation to produce energy designed to provide
heating, cooling, hot water/or electricity. Such arrangement or
components shall not include equipment that is part of a non-solar
energy system.

JUSTIFICATION:
If we are to achieve the goal of 45% of New York State's electricity
needs through clean renewable energy and improved energy efficiency
by 2015, then we must provide incentives to encourage businesses to
install solar energy systems just as we have done with homeowners.
Currently, businesses must pay state and local taxes that can add
thousands of dollars onto an installation that is already very
costly. Eliminating all state sales taxes and providing local
municipalities an option to eliminate their portion as well, will
encourage more commercial solar installations. Coupled with the
state's new net-metering legislation for commercial consumers, a
commercial sales tax exemption will provide a more realistic
investment climate for businesses. Because of their size, the
installation of commercial solar energy systems will significantly
advance New York State's obligation to meet its Renewable Portfolio
Standard of renewable energy sources by 2015. A commercial solar
sales tax exemption will help to stimulate and rebuild our economy,
create green collar jobs and reduce our dependence on foreign oil
while fighting global warming and protecting our environment.

LEGISLATIVE HISTORY:
04/27/09 REFERRED TO ENERGY AND TELECOMMUNICATIONS
01/06/10 REFERRED TO ENERGY AND TELECOMMUNICATIONS
03/15/10 AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
03/15/10 PRINT NUMBER 5074A

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately, provided that section one of
this act shall take effect on the first of January next succeeding
the date on which this act shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3203--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 11, 2011
                               ___________

Introduced  by  Sens.  MAZIARZ, DUANE, JOHNSON, PARKER -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Energy  and Telecommunications -- reported favorably from said commit-
  tee and committed to the Committee on Finance -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee  --  recommitted to the Committee on Energy and Telecommuni-
  cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  tax  law, in relation to exempting the sale and
  installation of commercial solar energy systems equipment  from  state
  sales  and  compensating  use  taxes  and  granting municipalities the
  option to grant such exemption

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  1115  of  the tax law is amended by adding a new
subdivision (hh) to read as follows:
  (HH) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL SOLAR ENERGY  SYSTEMS
EQUIPMENT  AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE EXEMPT
FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE  AND  ELEVEN  HUNDRED
ELEVEN  OF  THIS ARTICLE. FOR THE PURPOSES OF THIS SUBDIVISION, "COMMER-
CIAL SOLAR ENERGY SYSTEMS EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBI-
NATION  OF  COMPONENTS  INSTALLED  UPON  NON-RESIDENTIAL  PREMISES  THAT
UTILIZE  SOLAR  RADIATION TO PRODUCE ENERGY DESIGNED TO PROVIDE HEATING,
COOLING, HOT WATER AND/OR ELECTRICITY. SUCH  ARRANGEMENT  OR  COMPONENTS
SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-SOLAR ENERGY SYSTEM.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  section  3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08775-04-2

S. 3203--B                          2

the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
exemption  provided for in subdivision (ee), THE COMMERCIAL SOLAR ENERGY
SYSTEMS EQUIPMENT EXEMPTION PROVIDED FOR IN  SUBDIVISION  (HH)  and  the
clothing  and  footwear  exemption  provided  for in paragraph thirty of
subdivision (a) of section  eleven  hundred  fifteen  of  this  chapter,
unless  such  city,  county  or  school  district elects otherwise as to
either such residential solar energy systems equipment  exemption,  SUCH
COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT EXEMPTION or such clothing and
footwear exemption.
  S  3.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (p) to read as follows:
  (P) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT EXEMPTION FROM STATE SALES
AND COMPENSATING USE TAXES DESCRIBED  IN  SUBDIVISION  (HH)  OF  SECTION
ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION IN THE
FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;  WHEREUPON,  UPON
COMPLIANCE  WITH  THE  PROVISIONS  OF  SUBDIVISIONS  (D) AND (E) OF THIS
SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED  TO  BE  AN
AMENDMENT  TO  SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN
HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF  THEY
HAD  BEEN  DULY  ENACTED  BY  THE  STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.

S. 3203--B                          3

  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR, OR FOR THE USE  OF,  PROPERTY  AND  SERVICES
EXEMPT  FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVI-
SION (HH) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES
AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
  SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT  THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2012) AND SHALL APPLY TO SALES MADE,
SERVICES  RENDERED  AND USES OCCURRING ON AND AFTER THAT DATE IN ACCORD-
ANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106,  1216
AND 1217 OF THE NEW YORK TAX LAW.
  S 4. This act shall take effect immediately, provided that section one
of  this  act  shall take effect on the first of January next succeeding
the date on which this act shall have become a law.

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