senate Bill S273

Amended

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof

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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
  • 16 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 22 / Apr / 2013
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 22 / Apr / 2013
    • PRINT NUMBER 273A
  • 30 / Apr / 2013
    • 1ST REPORT CAL.516
  • 01 / May / 2013
    • 2ND REPORT CAL.
  • 06 / May / 2013
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2013
    • PASSED SENATE
  • 20 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 21 / 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
  • 29 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 29 / Jan / 2014
    • PRINT NUMBER 273B
  • 13 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 09 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 09 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1195
  • 20 / Jun / 2014
    • RECOMMITTED TO RULES

Summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft.

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Bill Details

See Assembly Version of this Bill:
A3677
Versions:
S273
S273A
S273B
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd §1115, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2678, A4818
2009-2010: S4551, A5960A
2007-2008: S425B, A3806B

Votes

7
2
7
Aye
2
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S273

TITLE OF BILL:
An act
to amend the tax law, in relation to providing an exemption from sales
and compensating use taxes for certain aircraft purchased in the
state

PURPOSE:
This bill would exempt from sales and use taxes the purchase of
general aviation aircraft.

SUMMARY OF PROVISIONS:
§ 1- This act shall be known and may be cited as the "New York
Aviation Jobs Act".

§ 2- Amends Tax Law § 1115 (dd) by amending paragraph 1 to exempt from
sales and use taxation the purchase of general aviation aircraft
similar to the current exemption granted to commercial service
aircraft.

§ 3- Effective date.

JUSTIFICATION:
Airports are one of the economic engines that fuel growth in the
communities that they serve.
The economic benefits of airports in this state are quite large.

Annual economic activity attributable to aviation is $36 billion. Over
300,000, New York residents owe their jobs directly or indirectly to
airports. These jobs pay nearly $12 billion in payroll on an annual
basis. Airports and aviation industries pay over $ 2.7 billion in
state and local taxes each year.

New York air service is critical to the economic well-being of 1his
state and to the traveling public. Airline commercial service is
provided at 18 airports located in urban and rural areas throughout
the state. In addition to commercial service airports, hundreds of
other general aviation airports are located throughout the state. These
airports provide services such as charter flights for businesses and
executives, quick access for medical emergencies and law enforcement
needs, flight training, and tourism & recreational flying.

This bill will make New York competitive with other states that
already exempt sales taxes related to the purchase of general
aviation aircraft. Connecticut, Massachusetts, New Jersey and New
Hampshire are a few of the regional states that exempt these aviation
purchases from sales and use taxes or provide more favorable tax
treatment.

Since the sales tax exemption for the maintenance, repair, overhaul or
rebuilding of aircraft was enacted in 2004, New York has attracted
significant investment in aviation services. The recent study by the
New York State Department of Taxation and Finance--A Review of the
Sales and Use Tax Exemption for Private Aircraft Parts and
Service---demonstrates that this particular tax exemption has been a


tremendous success, resulting in an expansion of aviation maintenance
and repair businesses, the creation of jobs here in New York and an
increase in state tax revenue.

Should New York exempt the purchase of general aviation aircraft, it
will timber encourage existing aircraft maintenance facilities to
expand their operations. In addition, other companies would look to
New York to locate or relocate their business jets and operations
within this state.
Like the maintenance and repair exemption, an exemption for the
purchase of aircraft is expected to increase state revenues and
leverage significant economic returns for local communities and the
state.

LEGISLATIVE HISTORY:
2007-2008: S.425-B
2009-2010: S.4551-A - Referred to Investigations & Government Operations
2011-2012: S.2678 - Passed Senate

FISCAL IMPLICATIONS:
NYS Department of Taxation & Finance estimates that state and local
governments will see an offset to possible tax losses with an
increased amount of economic development payroll taxes, property
taxes, and sales taxes in other ancillary services and increased fuel
tax collections from aircraft maintenance and in-state basing as a
result of the increase in aviation activity.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to sales made,
services rendered and uses occurring on or after such date in
accordance with the applicable transitional provisions of sections
1106 and 1217 of the tax law. The commissioner of taxation and
finance shall be immediately authorized to adopt and amend any rules
or regulations and issue any procedure, forms or instructions
necessary to implement this act on its effective date.

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

                                   273

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. LARKIN, BONACIC, DeFRANCISCO, FLANAGAN, FUSCHILLO,
  GRIFFO,  GRISANTI,  KENNEDY,  LITTLE,  MAZIARZ,  O'MARA,  RANZENHOFER,
  RITCHIE  --  read  twice  and  ordered printed, and when printed to be
  committed to the Committee on Investigations and Government Operations

AN ACT to amend the tax law, in relation to providing an exemption  from
  sales and compensating use taxes for certain aircraft purchased in the
  state

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

  Section 1. This act shall be known and may be cited as the  "New  York
aviation jobs act".
  S  2.  Paragraph 1 of subdivision (dd) of section 1115 of the tax law,
as added by section 1 of part L of chapter 60 of the laws  of  2004,  is
amended to read as follows:
  (1)  Services  otherwise  taxable under paragraph three of subdivision
(c) of section eleven hundred five or under section eleven  hundred  ten
of  this  article,  SALES  OF  GENERAL  AVIATION  AIRCRAFT, and tangible
personal property purchased and  used  by  the  person  who  sells  such
services  in  performing  such  services,  where such property becomes a
physical component part of the property  upon  which  the  services  are
performed  or  where  such  property is a lubricant applied to aircraft,
shall be exempt from tax under this  article  where  such  services  are
performed on aircraft.
  S  3. This act shall take effect immediately, and shall apply to sales
made, and uses occurring on or after such date in  accordance  with  the
applicable  transitional provisions of sections 1106 and 1217 of the tax
law.   The commissioner of taxation and  finance  shall  be  immediately
authorized  to  adopt  and  amend any rules or regulations and issue any
procedure, forms or instructions necessary to implement this act on  its
effective date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01351-01-3

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