senate Bill S5235

Amended

Relates to the tax on receipts derived from removing waste from certain transfer stations or debris processing facilities

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Bill Status


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

  • 03 / May / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / Jun / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 20 / Jun / 2011
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1388
  • 20 / Jun / 2011
    • PASSED SENATE
  • 20 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 20 / Jun / 2011
    • REFERRED TO WAYS AND MEANS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 09 / Jan / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1193
  • 12 / Jun / 2012
    • PASSED SENATE
  • 12 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2012
    • REFERRED TO WAYS AND MEANS
  • 18 / Jun / 2012
    • RECALLED FROM ASSEMBLY
  • 18 / Jun / 2012
    • RETURNED TO SENATE
  • 18 / Jun / 2012
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 18 / Jun / 2012
    • AMENDED ON THIRD READING 5235A
  • 21 / Jun / 2012
    • SUBSTITUTED BY A7144B

Summary

Relates to the tax on receipts derived from removing waste from certain transfer stations or debris processing facilities.

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Bill Details

Versions:
S5235
S5235A
Legislative Cycle:
2011-2012
Law Section:
Taxation

Sponsor Memo

BILL NUMBER:S5235

TITLE OF BILL:
An act
relating to the sales and compensating use tax on receipts derived from
removing waste material from certain regulated transfer stations or
construction and demolition debris processing facilities

PURPOSE:
To reaffirm the intention of the legislature that the
services of removing waste material from a waste transfer station or
a construction and demolition debris processing facility, where the
waste removed was not generated by said facility, was not subject to
New York state and local sales taxes as the service of maintaining,
servicing or repairing the real property of those facilities, and
ensure a uniform policy with regard to such services.

SUMMARY OF PROVISIONS:
Section 1 of the bill provides that any
liability for state and local sales and compensating use taxes with
respect to the services of removing waste material from a waste
transfer station or construction and demolition debris processing
facility regulated by the NYS Department of Environmental
conservation, where the waste removed was not generated by said
facility, for periods ending after April 1, 1997, and before December
1, 2005, shall be cancelled and, if paid, refunded.

Section 2 of the bill provides that the act shall take effect
immediately.

JUSTIFICATION:
One of the categories of enumerated services that are
subject to sales tax is the maintaining, servicing or repairing of
real property. These are services that relate to keeping real
property in a condition of fitness, efficiency, readiness or safety,
or restoring it to such condition. Examples of such services would be
painting, lawn maintenance and tree spraying as well as plumbing or
electrical repairs.
The removal of trash or garbage is also considered to be such a
taxable service.

Once trash is taken from a home or business property, it is often
taken to a transfer station, regulated by the NYS Department of
Environmental Conservation, where it is sorted and combined with
refuse taken from other facilities so that it can be economically
shipped in bulk to its ultimate destination. Previously, the question
was raised as to whether this subsequent bulk shipment was merely a
nontaxable transportation service or should be considered by itself
as a taxable maintenance service to the real property of the transfer
station. In May of 1997, an Advisory Opinion was issued by the
Department of Taxation and Finance that considered it to be such a
taxable service. TSB-A-97(32)S.

That Advisory opinion contains a strained interpretation of the Tax
Law that is beyond that contemplated by the Legislature when it
sought to impose a tax on the services of maintaining real property.


For that reason, the legislature passed a law in 2005 to specifically
exclude such services from taxation. This bill seeks to address the
tax status for the services of such waste removal from a transfer
station for the
period between the issuance of the Advisory Opinion and the effective
date of Chapter 321 of the Laws of 2005 to solidify one cohesive
policy and cease the continued application of sales and compensating
use tax by the Department of Taxation and Finance for this period.

FISCAL IMPLICATIONS:
To be determined.

PRIOR LEGISLATIVE HISTORY:
New bill.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  5235

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT relating to the  sales  and  compensating  use  tax  on  receipts
  derived  from  removing waste material from certain regulated transfer
  stations or construction and demolition debris processing facilities

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

  Section  1.  Notwithstanding the provisions of chapter 321 of the laws
of 2005, any liability for state and local sales  and  compensating  use
taxes,  and any interest or penalties thereon, for services specified in
clause (iv) of paragraph 5 of subdivision (c) of section 1105 of the tax
law, with respect to periods ending after March 1, 1997,  and  prior  to
December  1,  2005,  whether  or  not  such  liability has been paid and
regardless of whether or not any assessment for such taxes, interest  or
penalties  have  been  finally or irrevocably fixed by administrative or
judicial proceedings, shall be  cancelled  and,  if  paid,  refunded  in
accordance with the provisions of section one thousand one hundred thir-
ty-nine of the tax law, provided, however, that any such application for
refund  of  such taxes previously paid to the department of taxation and
finance shall be submitted within one year of the effective date of this
act, whereupon it shall be deemed to have been  submitted  in  a  timely
manner.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10194-02-1

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