senate Bill S1441

Relates to exemptions from sales and use taxes for certain fuel, gas, electricity, refrigeration and steam and gas

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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

  • 09 / Jan / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 27 / Feb / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / May / 2013
    • 1ST REPORT CAL.548
  • 07 / May / 2013
    • 2ND REPORT CAL.
  • 08 / May / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 10 / Feb / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 13 / May / 2014
    • 1ST REPORT CAL.712
  • 14 / May / 2014
    • 2ND REPORT CAL.
  • 19 / May / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Relates to exemptions from sales and use taxes for certain fuel, gas, electricity, refrigeration and steam and gas.

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Bill Details

Versions:
S1441
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L

Votes

10
0
10
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Energy and Telecommunications committee vote details

Sponsor Memo

BILL NUMBER:S1441

TITLE OF BILL:
An act
to amend the tax law, in relation to certain exemptions from sales and
use taxes

PURPOSE:
To incentivize manufacturing in New York while allowing businesses to
make efficient use of their resources.

SUMMARY OF PROVISIONS:

Section one amends paragraph 1 of subdivision (c) of section 1115 of
the tax law, as amended by section 7 of part B of chapter 63 of the
laws of 2000 by removing the words "directly and exclusively."

Section two provides for an immediate effective date.

EXISTING LAW:
Energy must be used exclusively and directly for manufacturing in
order to be excluded from sales and use taxation.

JUSTIFICATION:
Currently, only energy that is used exclusively and directly for
manufacturing is excluded from sales and use taxation. The purpose of
this exclusion is to encourage manufacturers to locate in and produce
goods in New York. However, the existing, law's strict limitations
run counter to this goal. For example, lighting that is required for
workers to see the machines they work on is not excluded from taxation.

The limitation also leads businesses to organize their operations in
less than efficient ways. For example, the air conditioning costs to
keep computer servers from overheating would no longer be excluded
from taxation if a business were to also add a technician's desk into
that room. Even though predominantly a manufacturing cost, the
addition of one desk causes the air conditioning not to be an
exclusively manufacturing expense. This leads to absurd workplace
designs and an
inefficient use of resources. By removing the exclusive and direct
requirements, this bill incentivizes manufacturing in New York while
still requiring that tax free energy actively contributes to the
manufacturing of goods.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None

LOCAL FISCAL IMPLICATIONS: None

EFFECTIVE DATE: Immediate

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

                                  1441

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to  amend  the  tax law, in relation to certain exemptions from
  sales and use taxes

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

  Section  1.  Paragraph 1 of subdivision (c) of section 1115 of the tax
law, as amended by section 7 of part B of chapter  63  of  the  laws  of
2000, is amended to read as follows:
  (1)  Fuel,  gas,  electricity, refrigeration and steam, and gas, elec-
tric, refrigeration and steam service of  whatever  nature  for  use  or
consumption  [directly  and  exclusively]  in the production of tangible
personal property, gas, electricity, refrigeration or steam,  for  sale,
by  manufacturing,  processing, assembling, generating, refining, mining
or extracting shall be exempt from the taxes imposed under  subdivisions
(a)  and (b) of section eleven hundred five and the compensating use tax
imposed under section eleven hundred ten of this article.
  S 2. This act shall take effect immediately.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05004-01-3

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