senate Bill S1665

Provides an exemption to the sale of plug-in hybrid electric vehicles from state sales and compensating use taxes

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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 INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Provides an exemption to the retail sale of plug-in hybrid electric vehicles from state sales and compensating use taxes; authorizes local governments to adopt similar incentives.

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Bill Details

See Assembly Version of this Bill:
A1377
Versions:
S1665
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1115, 1160 & 1210, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7192A, A10356

Sponsor Memo

BILL NUMBER:S1665

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting the sale of plug-in
hybrid electric vehicles from state sales and compensating use taxes,
and to authorize cities and counties to grant such exemption

PURPOSE:
This legislation would exempt qualifying plug-in electric vehicles
from sales tax.

SUMMARY OF PROVISIONS:

Section 1 defines the term plug in hybrid.
electric vehicle and creates a state sales tax exemption.

Section 2 states that the tax break is not applicable to car rentals.

Section 3 states that new plug-in hybrid vehicles exemptions may be
exempted by Counties.

Section 4 allows for a sales tax break if opted
into by New York City.

Section 5 is the effective date.

JUSTIFICATION:
Incentives to encourage the purchase of new plug-in
hybrid electric vehicles afford a means for the State to encourage
consumers to consider the purchase of clean fuel vehicles, by
overcoming the initially greater cost of such technologies compared
to other vehicles and accelerate their adoption in the market.

While growing slowly over time, broad consumer acceptance of hybrid
vehicles - remains very limited.

o Since their inception in 1999. an estimated total of 2.157.723 hybrid
electric automobiles and SUVs by various manufacturers have been sold
in the United States through December 2011.

o According to a recent report from Pike Research, hybrid electric
vehicles (HEVs) and plug-in electric vehicles (PEVs) combined will
represent only 3.1% of worldwide auto sales by 2017.

o Despite higher rates of acceptance in the United States, HEVs and
PEVs will account for only 5.1% of total U.S. vehicle sales by 2017.

According to Experian Automotive - New York State ranks 4th in total
hybrid sales in the 50 states, with 4.68% of new car sales in 2011.

New York lawmakers have enacted similar incentives in prior years to
encourage consumers to consider purchase of hybrid and other
alternative fuel vehicles. These were of limited duration, and phased
out over several years after consumer acceptance began to rise.

Plug-in hybrid vehicles offer several benefits simultaneously:

o Dramatic improvements in fuel economy,

o Significant reductions in emissions, and

o Encouraging the sales of these vehicles is consistent with New York's
drive towards cleaner air.

PRIOR LEGISLATIVE HISTORY:
S. 7192a of 2011-12; referred to Investigations and Government
Operations

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:
This bill shall take effect October 1, 2013.

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

                                  1665

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. GRISANTI, BONACIC, MAZIARZ -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations

AN  ACT to amend the tax law, in relation to exempting the sale of plug-
  in hybrid electric vehicles from  state  sales  and  compensating  use
  taxes, and to authorize cities and counties to grant such exemption

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

  Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
by adding a new paragraph 44 to read as follows:
  (44)  THE RECEIPTS FROM THE RETAIL SALE OF NEW PLUG-IN HYBRID ELECTRIC
VEHICLES. FOR PURPOSES OF THIS PARAGRAPH THE TERM "PLUG-IN HYBRID  ELEC-
TRIC  VEHICLE"  MEANS A MOTOR VEHICLE, AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, THAT:
  (I) DRAWS PROPULSION USING A TRACTION BATTERY WITH AT LEAST FOUR KILO-
WATT HOURS OF CAPACITY;
  (II) USES AN EXTERNAL SOURCE OF ENERGY TO RECHARGE SUCH BATTERY;
  (III) THE ORIGINAL USE OF WHICH COMMENCES WITH THE TAXPAYER;
  (IV) IS ACQUIRED FOR USE OR LEASE BY THE TAXPAYER AND NOT FOR  RESALE;
AND
  (V) IS MADE BY A MANUFACTURER.
  S  2.  Section 1160 of the tax law is amended by adding a new subdivi-
sion (c) to read as follows:
  (C) THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN
PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
FIFTEEN  OF  THIS  CHAPTER SHALL NOT APPLY TO OR LIMIT THE IMPOSITION OF
THE TAX IMPOSED PURSUANT TO THIS ARTICLE.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 406 of the laws  of  2012,  is  amended  to  read  as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04019-01-3

S. 1665                             2

  (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
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 AND THE
NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH
FORTY-FOUR 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  cloth-
ing  and  footwear exemption OR SUCH NEW PLUG-IN HYBRID ELECTRIC VEHICLE
EXEMPTION.
  S 4. Section 1210 of the tax law is amended by adding a  new  subdivi-
sion (q) to read as follows:
  (Q)  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  NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION FROM STATE SALES AND
COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF  SUBDIVISION
(A)  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

S. 1665                             3

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.
  (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 PARAGRAPH
44 OF SUBDIVISION (A) OF SECTION 1115 OF THE NEW YORK TAX LAW SHALL ALSO
BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN  THIS  JURIS-
DICTION.
  SECTION  TWO.  THIS  RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2013) 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 5. This act shall take effect October 1, 2013.

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