senate Bill S2021

Amended

Provides an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in college incubator 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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 11 / Jun / 2013
    • REPORTED AND COMMITTED TO RULES
  • 11 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1232
  • 12 / Jun / 2013
    • PASSED SENATE
  • 12 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • PRINT NUMBER 2021A

Summary

Provides an exemption from the tax on sales and the compensating use tax for equipment, with a purchase price of five hundred dollars or greater, purchased by companies located in college incubator facilities or incubator facilities funded by the state.

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Bill Details

See Assembly Version of this Bill:
A1929
Versions:
S2021
S2021A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3175A, A5027A
2009-2010: S1997, A2815
2007-2008: A2072B

Sponsor Memo

BILL NUMBER:S2021

TITLE OF BILL: An act to amend the tax law, in relation to providing an
exemption from the tax on sales and the compensating use tax for certain
equipment purchased by companies located in academic incubator facili-
ties

PURPOSE: This legislation is consistent with our state's general
efforts to encourage the creation and growth of small business. Compa-
nies in incubators, by their nature, are small and have limited
resources. This bill alleviates a small but significant tax burden on
these firms by exempting them from sales tax on equipment that costs
$500 or more.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1115 of the tax law which provides
companies that are located in an academic incubator facility with a
sales tax exemption for the purchase of equipment with a price of $500
or more, and provides for the definition of an academic incubator.

JUSTIFICATION: During the last decade, one of the most effective state
tools used to encourage job growth and creation has been its investment
in high technology incubators. Incubator facilities provide researchers
and entrepreneurs with the physical space and support staff necessary to
help transfer the technology developed in the laboratory into a commer-
cial product of value.

Efforts to develop research ides into viable products are usually done
with limited resources. Costs of operation must be kept at a minimum to
allow researchers the opportunity to advance their theories. Incubators
certainly provide low cost office space, however, rents are not the only
expense that these businesses incur. Equipment costs can also be a major
impediment to the success of the business. To help reduce this cost this
bill would exempt business. To help rescue this cost this bill would
exempt businesses located in incubators from sales tax on equipment
purchases. Taxing this equipment is contrary to the general concept of
incubators, which is to reduce the cost associated with a start-up firm
struggling to develop its ides/research into a product.

The amendment clarifies that the exemption is only for those companies
located in an academic incubator facility and the equipment be used in
the incubator facility.

LEGISLATIVE HISTORY: 2011-12 S.3175A/A.5027A; 2009-2010 S.1997; 2007-08
S.942B; 2005-06 S.1415A; 2003-04 S.485; 2001-02 S.2341.

FISCAL IMPLICATIONS: Implementation: There would be some loss of state
revenue.

EFFECTIVE DATE: This act shall take effect September 1, 2013.

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

    S. 2021                                                  A. 1929

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, KENNEDY, LARKIN, O'MARA,
  RANZENHOFER -- read twice and ordered printed, and when printed to  be
  committed to the Committee on Investigations and Government Operations

IN  ASSEMBLY  --  Introduced by M. of A. SCHIMMINGER, SWEENEY, COLTON --
  Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once  and  referred
  to the Committee on Ways and Means

AN  ACT to amend the tax law, in relation to providing an exemption from
  the tax on sales and the compensating use tax  for  certain  equipment
  purchased by companies located in academic incubator facilities

  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) EQUIPMENT WITH A PURCHASE PRICE OF FIVE HUNDRED DOLLARS OR GREAT-
ER  PURCHASED  BY  ANY  COMPANY LOCATED IN AN INCUBATOR FACILITY THAT IS
ASSOCIATED WITH A COLLEGE, AS DEFINED IN SUBDIVISION TWO OF SECTION  TWO
OF  THE  EDUCATION  LAW,  OR AN INCUBATOR FACILITY THAT IS FUNDED BY THE
STATE. SUCH EQUIPMENT MUST BE USED  DIRECTLY  AND  PREDOMINATELY  WITHIN
SUCH INCUBATOR FACILITY.
  S 2. This act shall take effect September 1, 2013.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03803-01-3

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