senate Bill S5235A

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

See Assembly Version of this Bill:
A7144B
Versions:
S5235
S5235A
Legislative Cycle:
2011-2012
Law Section:
Taxation

Sponsor Memo

BILL NUMBER:S5235A

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 assessments made after April 1,
1997.

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-A97(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:
This is a 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--A
    Cal. No. 1193

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sens. MARTINS, GOLDEN, JOHNSON, ZELDIN -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations -- recommitted to the Commit-
  tee  on  Investigations  and  Government Operations in accordance with
  Senate Rule 6, sec. 8 -- reported favorably from  said  committee  and
  committed to the Committee on Finance -- committee discharged and said
  bill  committed  to  the Committee on Rules -- reported favorably from
  said committee, ordered to a  third  reading,  passed  by  Senate  and
  delivered  to  the  Assembly, recalled, vote reconsidered, restored to
  third reading, amended and ordered reprinted, retaining its  place  in
  the order of third reading

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 assessments made after March 1, 1997, whether or
not any assessment for such  taxes,  interest  or  penalties  have  been
finally  or irrevocably fixed by administrative or judicial proceedings,
shall hereby be cancelled and  annulled,  provided,  however,  that  any
taxes, interest or penalty heretofore paid with respect to such services
shall not be entitled to be credited or refunded.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10194-06-2

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