senate Bill S2767

Amended

Provides for temporary suspension of sales and compensating use tax on certain services engaged for clean-up activities associated with a disaster

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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

  • 23 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • PRINT NUMBER 2767A

Summary

Provides for temporary suspension of sales and compensating use tax on certain services, during governor ordered state of emergency, provided by contractors, subcontractors, repair persons or property owners for clean-up activities associated with real property, property or land after a natural or manmade disaster.

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Bill Details

Versions:
S2767
S2767A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1115 & 1210, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S4180A
2009-2010: S7066
2007-2008: A7311

Sponsor Memo

BILL NUMBER:S2767

TITLE OF BILL: An act to amend the tax law, in relation to suspending
the state sales and compensating use tax on certain disaster clean-up
items during a state of emergency and authorizing localities to waive
such tax during the same period

PURPOSE OF THE BILL: To assist property owners during times of emergen-
cy cleanup by waiving sales tax on cleanup activities.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 1115 of the Tax Law by adding a new subsection
(ii) to allow the Governor to temporarily suspend, by executive order,
during a state disaster emergency, and for up to sixty days after the
end of such state of emergency, sales and compensating taxes associated
with property clean up activities taxable under subdivision (c) of Tax
law section 1105 and Tax law 1110.

Section 2 amends Tax Law subparagraph 1210(a)(1) to add the exemption
provided under new section 1115(hh).

Section 3 amends Tax Law subdivision 1210(d) to permit local governments
the option to suspend their local sales and use taxes on clean up activ-
ities as described in Tax Law 1115 (hh) for the same period that state
taxes are suspended.

Section 4 amends Tax Law 1210 by adding a new subdivision (q) permitting
a city with a population of over one million, by resolution, to suspend
sales and use taxes during the same periods of clean up activities
described in Tax Law section 1115.

Section 5 permits any county or city imposing sales and compensating use
taxes pursuant to Article 29 of the Tax Law, or any city with a popu-
lation of over one million imposing sales and compensating use taxes
pursuant to Tax Law section 1107 to suspend sales and use taxes for
clean up activities during the same periods of clean up activities
described in Tax Law section 1115.

Section 6 provides that the act shall take effect immediately and shall
apply to any sales made and uses occurring during exemption periods on
or after the date of enactment.

JUSTIFICATION: Sales and compensating taxes are imposed on lawn mainte-
nance activities pursuant to Tax Law 1105(c). During times of storm,
flood, hurricane or other disaster, such clean up costs can be enormous
and overwhelming for property owners. During snow storms in Western New
York, trees and branches covered lawns and driveways, and the costs for
cleaning up this disaster for homeowners was often thousands of dollars.
More recently, many areas of the State suffered severe damages from
Hurricane Irene. Most recently the residents in the Long Island and

Greater New York City area have faced millions of dollars in damages
from Superstorm Sandy. These costs provided an unexpected and unwar-
ranted windfall to the state and local governments in the form of sales
taxes generated by this emergency.

Clearly, any part of the state could suffer a similar disaster, whether
it be caused by a hurricane, heavy rains, snow or wind. This bill gives
the Governor greater flexibility to assist and protect our residents
with the option to suspend sales taxes on clean up activities for the
duration of the state of emergency and up to sixty days thereafter, and
also allows cities and counties to similarly suspend their sales taxes
on these activities as well. When residents in our state face such an
emergency, it is not proper for the state to prosper from their misfor-
tune.

PRIOR LEGISLATIVE HISTORY: 2012 -S.4180A -- FINANCE 2011 -S.4180 --
FINANCE 2009-10 - S.7066/A.3759 -- INVESTIGATIONS/Ways & Means 2007-08 -
S.2837/A.7311 -- INVESTIGATIONS/Ways & Means

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  2767

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sen.  RANZENHOFER -- 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 suspending the state sales
  and compensating use tax on certain disaster clean-up items  during  a
  state of emergency and authorizing localities to waive such tax during
  the same period

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

  Section 1. Section 1115 of the tax law is  amended  by  adding  a  new
subdivision (ii) to read as follows:
  (II)  THE  GOVERNOR MAY TEMPORARILY SUSPEND SALES AND COMPENSATING USE
TAXES ASSOCIATED WITH SERVICES OTHERWISE TAXABLE UNDER  SUBDIVISION  (C)
OF  SECTION  ELEVEN  HUNDRED FIVE OR UNDER SECTION ELEVEN HUNDRED TEN OF
THIS ARTICLE RENDERED IN CLEAN-UP AND REPAIR OF REAL PROPERTY,  PROPERTY
OR  LAND,  AS  SUCH TERMS ARE DEFINED IN THE REAL PROPERTY TAX LAW, WHEN
SUCH SERVICES ARE PROVIDED BY A CONTRACTOR, SUBCONTRACTOR,  REPAIRPERSON
OR  OWNER OF SUCH REAL PROPERTY, PROPERTY OR LAND LOCATED IN AN AFFECTED
COUNTY DURING THE PERIOD OF TIME DECLARED BY THE  GOVERNOR  AS  A  STATE
DISASTER  EMERGENCY, AS DEFINED BY SECTION TWO OF THE EXECUTIVE LAW, AND
UP TO SIXTY DAYS THEREAFTER.
  S 2. Subparagraph (ii) of 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:
  (ii) Any local law, ordinance or resolution enacted by any city, coun-
ty or school district, imposing the taxes authorized  by  this  subdivi-
sion,   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
STATE OF EMERGENCY CLEAN-UP ACTIVITIES PROVIDED FOR IN SUBDIVISION  (II)
AND the clothing and footwear exemption provided for in paragraph thirty

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05158-01-3

S. 2767                             2

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 clothing and
footwear exemption.
  S  3.  Subdivision  (d)  of section 1210 of the tax law, as amended by
section 37 of part S-1 of chapter 57 of the laws of 2009, is amended  to
read as follows:
  (d)  A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such  tax,  repealing
or  suspending  such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of  subdivi-
sion  (b)  of  this  section or changing the rate of tax imposed on such
energy sources and services  or  providing  for  the  credit  or  refund
described  in  clause  six  of subdivision (a) of section eleven hundred
nineteen of this chapter must go into effect only on one of the  follow-
ing  dates:  March first, June first, September first or December first;
provided, that a local law, ordinance or resolution  providing  for  the
exemption  described  in paragraph thirty of subdivision (a) OR SUBDIVI-
SION (II) of section eleven hundred fifteen of this chapter or repealing
any such exemption or a local law, ordinance or resolution providing for
a refund or credit  described  in  subdivision  (d)  of  section  eleven
hundred nineteen of this chapter or repealing such provision so provided
must go into effect only on March first. No such local law, ordinance or
resolution shall be effective unless a certified copy of such law, ordi-
nance  or  resolution  is  mailed by registered or certified mail to the
commissioner at the commissioner's office in Albany at least ninety days
prior to the date it is to become effective. However,  the  commissioner
may  waive  and  reduce  such ninety-day minimum notice requirement to a
mailing of such certified copy by registered or certified mail within  a
period  of not less than thirty days prior to such effective date if the
commissioner deems such action to be consistent with the  commissioner's
duties  under  section  twelve  hundred  fifty  of  this article and the
commissioner acts by resolution. Where the restriction provided  for  in
section  twelve hundred twenty-three of this article as to the effective
date of a tax and the notice requirement provided for therein are appli-
cable and have not been waived, the restriction and  notice  requirement
in section twelve hundred twenty-three of this article shall also apply.
  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 EXEMPTION FROM SUCH TAXES FOR  THE
SAME  STATE OF EMERGENCY CLEAN-UP ACTIVITIES EXEMPT FROM STATE SALES AND
COMPENSATING USE TAXES, DURING THE SAME PERIODS EACH YEAR, DESCRIBED  IN
SUBDIVISION  (II)  OF  SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY
ENACTING A RESOLUTION EXACTLY 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  RESOL-
UTION  SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED
SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO  INCORPO-
RATE SUCH EXEMPTION AS IF IT HAD BEEN DULY ENACTED BY THE STATE LEGISLA-
TURE AND APPROVED BY THE GOVERNOR.

S. 2767                             3

  (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,  STATE  OF  EMERGENCY
CLEAN-UP  ACTIVITIES  EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES
PURSUANT TO SUBDIVISION (II) OF SECTION 1115 OF THE  NEW  YORK  TAX  LAW
SHALL  ALSO  BE  EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN
THIS JURISDICTION, DURING THE SAME PERIODS SET FORTH  IN  SUCH  SUBDIVI-
SION.
  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
AND USES OCCURRING DURING THE APPLICABLE EXEMPTION PERIODS EACH YEAR, IN
ACCORDANCE  WITH THE APPLICABLE TRANSITIONAL PROVISIONS OF SECTIONS 1106
AND 1217 OF THE NEW YORK TAX LAW.
  S 5. Notwithstanding any other provision of state or local law,  ordi-
nance  or  resolution  to  the contrary: (a) Any county or city imposing
sales and compensating use taxes pursuant to the authority of subpart  B
of  part I of article 29 of the tax law, acting through its local legis-
lative body, is hereby authorized and empowered to elect to provide  the
exemption from such taxes for new state of emergency clean-up activities
exempt from state sales and compensating use taxes described in subdivi-
sion  (ii)  of  section  1115 of the tax law, as added by section one of
this act, for the periods described  therein,  whether  such  taxes  are
imposed  by local law, ordinance or resolution, by enacting a resolution
exactly in the form set forth in subdivision (c) of this  section,  such
enactment  of  such  resolution shall be deemed to amend such local law,
ordinance or resolution imposing such taxes, and such local  law,  ordi-
nance  or  resolution  shall  thenceforth  be deemed to incorporate such
exemptions.
  (b) Any city of one million or more in  which  the  taxes  imposed  by
section  1107  of  the  tax  law are in effect, acting through its local
legislative body, is hereby authorized and empowered to elect to provide
the exemption from such taxes for the same state of  emergency  clean-up
activities  exempt from state sales and compensating use taxes described
in subdivision (ii) of section 1115 of the tax law, as added by  section
one of this act, for the periods described therein, by enacting a resol-
ution  exactly in the form set forth in subdivision (c) of this section,
such enactment of such resolution shall be deemed to amend such  section
1107 of the tax law and such section 1107 shall thenceforth be deemed to
incorporate  such  exemption  for  such  periods  as if it had been duly
enacted by the state legislature and approved by the governor  and  such
resolution  shall  also  be  deemed to amend any local law, ordinance or
resolution enacted by such a city imposing such taxes  pursuant  to  the
authority  of subdivision (a) of section 1210 of the tax law, whether or
not such taxes are suspended at the time such  city  enacts  its  resol-
ution.
  (c) Form of Resolution:
  Be  it  enacted by the (insert proper title of local legislative body)
as follows:
  Section one: The (county or city) of (locality's name)  hereby  elects
the  state of emergency clean-up activities exemption periods commencing
(commencement period).
  Section two:  This resolution shall take effect immediately and  shall
apply  to  sales  made  and uses occurring during the applicable periods
each year, in accordance with applicable transitional provisions of  the
New York Tax Law.

S. 2767                             4

  (d)  A  resolution adopted pursuant to this section shall be effective
only if it is adopted exactly as set forth in subdivision  (c)  of  this
section  and such county or city adopts it, mails a certified copy of it
to the commissioner of taxation and finance by certified mail and other-
wise  complies  with  the  requirements  of  subdivisions (d) and (e) of
section 1210 of the tax law.
  S 6. This act shall take effect immediately and shall apply  to  sales
made  and  uses occurring during exemption periods on or after such date
in accordance with the applicable transitional  provisions  of  sections
1106 and 1217 of the tax law.

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