senate Bill S3281

Amended

Grants sales and use tax exemption for certain tangible personal property and services used in the operation of recreational skiing facilities

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 31 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 17 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 17 / Jan / 2014
    • PRINT NUMBER 3281A

Summary

Grants sales and use tax exempt for certain tangible personal property and services used in the operation of recreational skiing facilities.

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Bill Details

See Assembly Version of this Bill:
A2145
Versions:
S3281
S3281A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6266, A9991

Sponsor Memo

BILL NUMBER:S3281

TITLE OF BILL: An act to amend the tax law, in relation to granting
sales and compensating use tax exemptions for certain tangible
personal property and services used in the operation of recreational
skiing facilities

PURPOSE: This legislation, if enacted, would amend section 1115 of
the Tax Law to state the purchase of energy efficient snow making
equipment, ski lift equipment, snow grooming equipment, and the
production of snow by a recreational ski facility are exempt from the
New York State sales and compensating use tax.

SUMMARY OF PROVISIONS:

Section 1 - Amends subdivision (a) of section 1115 of the tax law by
adding paragraph (44) to exempt the production of snow, uphill
transportation of skiers. and/or the grooming and maintenance of snow
from sales and compensating use tax.

Section 2 - Amends section 1115 of the tax law by adding a new
subdivision (ii) to exempt the production of snow as well as the
equipment to transport skiers uphill and to groom snow by any
recreational ski area from sales and compensating use tax.

Section 3 - Contains the effective Date.

JUSTIFICATION: New York State ranks fifth in the nation in skier
visits per year despite the fact that the state is the second highest
when compared to the percentage of their population that skis. New
York State currently exports a number of skiers and their families to
the New England states. In order to remain competitive with our
neighbors to the east which aggressively campaigns for our skiers and
those whom visit New York, this state needs to upgrade equipment and
maintain state of the art snowmaking systems, and this legislation
will greatly assist them in the purchase of new equipment and
upgrading of snowmaking systems.

The ski industry employs over 10,000 New York State residents serving
on average 4 million skier visits per year with an economic impact of
over $1 billion. With over 40 ski areas, New York State has more ski
areas than any other state with over S4.8 million in sales tax paid
each year. Local property taxes paid amount to over S3.5 million. Snow
making is critical to the ski industry and this legislation will
provide energy tax relief, which is one of the highest expenses faced
each winter season.

The three state owned ski areas in New York State are exempt from the
state sales tax while privately owned ski areas are not. This has
created an unfair business environment for these privately owned ski
areas, many of which are located in upstate New York. This bill would
provide that all ski areas that purchase energy efficient snow making
equipment and make snow shall be exempt from this tax. The fuel, gas,
electricity, and refrigeration, and gas, electric, and refrigeration
services used directly for the production of snow would now be exempt
from the state sales tax as will the energy efficient equipment. The


manufacture of snow is not eligible for a tax exemption under the
definition of manufacturing because snow is not sold as a product.
The climate and business environment has changed such that ski areas
must make snow to remain viable in this industry.

This legislation would eliminate the sales tax on the purchase of
qualifying energy efficient lift and grooming equipment. New safer
equipment to transport skiers has become available that will move more
people with less energy and manpower required. Grooming equipment is
powered by diesel fuel, and advancements in such technology has made
the newer machines much more energy efficient with less emissions and
more horsepower. Wisconsin, Minnesota, Utah and Colorado have enacted
similar laws that apply not only to the purchase of new energy
efficient equipment but also for the use and compensating tax on
snowmaking energy.

LEGISLATIVE HISTORY: 2011-12 S.6266 Passed Senate; A. 9991 Referred
to Ways & Means 2009-10: S.836 Referred to Energy &
Telecommunications; A. 519 Referred to Ways & Means 2008: S.2343-A; A.
5392-A Ways &s. Means 2007: S.2343 Passed Senate; A. 5392 Ways & Means
2005-06: S.720 Passed Senate; A. 7995 Ways & Means

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the first of July next
succeeding the date on which it shall have become a law.

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

                                  3281

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to granting sales  and  compen-
  sating  use  tax exemptions for certain tangible personal property and
  services used in the operation of recreational skiing 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) ENERGY EFFICIENT TANGIBLE PERSONAL PROPERTY  OF  WHATEVER  NATURE
FOR  USE  OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN THE PRODUCTION
OF SNOW; (II) IN THE UPHILL TRANSPORTATION OF SKIERS; OR  (III)  IN  THE
GROOMING  AND  MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS
OF OPERATING A RECREATIONAL FACILITY FOR SKIING.
  S 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
sion (ii) to read as follows:
  (II)  FUEL,  GAS, ELECTRICITY AND REFRIGERATION, AND GAS, ELECTRIC AND
REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY
AND EXCLUSIVELY IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED  IN  THE
BUSINESS  OF  OPERATING  A  RECREATIONAL  FACILITY  FOR SKIING, SHALL BE
EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF  SECTION
ELEVEN  HUNDRED  FIVE AND THE COMPENSATING USE TAX IMPOSED UNDER SECTION
ELEVEN HUNDRED TEN OF THIS ARTICLE.
  S 3. This act shall take effect on the first of July  next  succeeding
the date on which it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01201-01-3

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