senate Bill S273B

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:
A3677B
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

6
3
6
Aye
3
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S273B

TITLE OF BILL: An act to amend the tax law, in relation to exempting
from sales and compensating use taxes the purchase of general aviation
aircraft; and providing for the repeal of certain provisions upon
expiration thereof

PURPOSE:

This bill would establish a 5-year pilot program to exempt from sales
and use taxes the purchase of general aviation aircraft for a limited
time and require a study be conducted by the commissioner of taxation
and finance as to the economic and revenue impacts of the exemption.

SUMMARY OF PROVISIONS:

§ 1- Titles the act 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- Requires a study be conducted by the commissioner of taxation and
finance as to the economic and revenue impacts of the exemption to be
submitted on or after November 1, 2019, to the Governor, temporary
president of the senate and the speaker of the assembly.

§ 4- Effective date is April 1, 2015 and shall apply to all sales of
general aviation aircraft on or after that date and until March 31,
2020.

JUSTIFICATION:

Airports are among the economic engines that fuel growth in the
economy of the state and in the communities which they serve. The
economic benefits of airports in this state are quite impressive.
Annual economic activity attributable to aviation is $50 billion. The
aviation sector employs more than 394,500 state residents and
generates $18 billion in payroll and $4.5 billion in State and local
tax revenue annually.

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, Maine 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. NY has lost 700 such aircraft since 2002.

Therefore, this bill establishes a 5-year tax exemption pilot program,
similar to what was successfully enacted to exempt maintenance and
repair of general aviation aircraft from the sales and use tax a few
years ago. A Tax Department report-A Review of the Sales and Use Tax
Exemption for Private Aircraft Parts and Service-on that exemption
found that, since its enactment in 2004, New York has attracted
significant investment in aviation services, 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. (FAA data
indicates the establishment of 23 such major aviation maintenance and
repair businesses and 686 new jobs since 2004).

By adopting a 5 year exemption pilot program for the purchase of
general aviation aircraft, New York will encourage the location of
such aircraft and business jets to locate here. 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:

2005-2006: S.3655 - Passed Senate
2007-2008: S.425-B - Passed Senate
2009-2010: S.4551-A - Referred to Investigations & Government
Operations
2011-2012: S.2678 - Passed Senate

FISCAL IMPLICATIONS:

Estimated reduction of $13.4 million annually will be more than offset
by increases in economic activity, jobs and state and local tax
revenue (the impact of each business aircraft on average is 5 on
airport jobs and $1 million of economic activity according to DOT).
The economic development benefits at airports will generate payroll
taxes, property taxes, and sales taxes in other ancillary services and
increased fuel tax collections from the expected increase of in-state
basing of general aviation aircraft and the resulting increase in
aviation activity.

EFFECTIVE DATE:

This act shall take effect April 1, 2015, and shall apply to sales of
general aviation aircraft made and uses occurring on or after that
date in accordance with the applicable transitional provisions of
section 1106 and 1107 of the tax law, but shall not apply to sales
occurring after March 31, 2020, and section one of this act shall
expire and be deemed repealed April 1, 2020. Provided, however, that
aircraft subject to exemption pursuant to paragraph 1 of subdivision
(dd) of section 1115 of the tax law, as amended by section two of this
act, shall remain so exempt after the expiration and repeal of section
two of this act, including instances where the aircraft is
subsequently sold or the ownership is transferred or assigned, for the
useful life of the aircraft.

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

                                 273--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  LARKIN,  BONACIC,  BOYLE,  DeFRANCISCO, FLANAGAN,
  GIPSON, GRIFFO, GRISANTI, KENNEDY, LITTLE, MAZIARZ, NOZZOLIO,  O'MARA,
  RANZENHOFER,  RITCHIE,  ZELDIN  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  --  reported favorably from said committee and
  committed to the Committee on Finance --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- recommitted to the Committee on Investigations  and  Government
  Operations  in  accordance  with  Senate  Rule  6, sec. 8 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law, in relation to  exempting  from  sales  and
  compensating  use taxes the purchase of general aviation aircraft; and
  providing for the repeal of certain provisions upon expiration thereof

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

  Section  1.  Short  title. 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01351-06-4

S. 273--B                           2

  S 3. The commissioner of taxation and finance, in conjunction with the
commissioner of transportation, shall review and analyze all statistical
data available for the purpose of determining the economic  and  revenue
impact  of  the sales and compensating use tax exemption for the sale of
general  aviation  aircraft  enacted  by  section  two of this act. Such
review and analysis shall include, but not be limited to, any  increases
in  aviation-related  employment,  aircraft basing, aircraft maintenance
and aircraft hangering within the state. The commissioner shall  compile
his  or  her  findings  into  a  report, which shall be submitted, on or
before November 1, 2019, to the governor, the temporary president of the
senate and the speaker of the assembly.
  S 4. This act shall take effect April 1,  2015,  and  shall  apply  to
sales  of  general aviation aircraft made and uses occurring on or after
such effective date  in  accordance  with  the  applicable  transitional
provisions of sections 1106 and 1107 of the tax law, but shall not apply
to  sales  occurring  after  March 31, 2020, and section two of this act
shall expire and be deemed repealed April 1,  2020.  Provided,  however,
that  aircraft  subject to exemption pursuant to paragraph 1 of subdivi-
sion (dd) of section 1115 of the tax law, as amended by section  two  of
this  act,  shall  remain  so  exempt after the expiration and repeal of
section two of this act,  including  instances  where  the  aircraft  is
subsequently  sold  or the ownership is transferred or assigned, for the
useful life of the aircraft. Provided, further, that the commissioner of
taxation and finance shall be immediately authorized to adopt and  amend
any   rules  or  regulations  and  to  issue  any  procedure,  forms  or
instructions necessary to implement section  two  of  this  act  on  its
effective date.

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