senate Bill S3669

Amended

Relates to the collection of sales tax on abstracts of title and other public records searches

download pdf

Sponsor

Bill Status


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

actions

  • 11 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 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 3669A

Summary

Relates to the collection of sales tax on abstracts of title and other public records searches.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A7193
Versions:
S3669
S3669A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1105, Tax L

Votes

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

Sponsor Memo

BILL NUMBER:S3669

TITLE OF BILL: An act to amend the tax law, in relation to the
collection of sales tax on abstracts of title and other public records
searches

PURPOSE OR GENERAL IDEA OF BILL: To relieve title insurance providers
and agents from the expense, burden and complexities associated with
collecting sales tax on information services that have been historically
exempt from sales tax.

SUMMARY OF SPECIFIC PROVISIONS: Section one amends paragraph one of
subdivision c of section 1105 of the tax law by excluding information
services such as abstracts of title, tax searches, searches for munici-
pal records for violations, certificates of title and lien searches from
sales tax.

Section two sets the effective date.

JUSTIFICATION: Due to the severe downturn in the real estate sector of
the economy, the title insurance industry has suffered particularly hard
and the slow recovery of the real estate market has forced many agents
with depleted reserves to lay off employees or close their doors. The
loss of these small businesses further prolongs the overall economic
recovery.

Despite having been historically exempt from sales tax for their
services, certain portions of title company services became subject to
taxation in 2002.

Unfortunately, due to the variety of services and transactions; the
identification of the end user of the services (from whom the tax should
collected); the location of the closing (which affects tax rate and may
not be known or change with little notice); or whether the transaction
closes at all (in which case the "end user" is the title agency itself,
liable for sales tax on unpaid work product destined for the shredder),
and other complexities particular to a transaction, the proper implemen-
tation of this law has been exceedingly difficult. And reliable, sound
and consistent advice on the matter has been nearly impossible to
obtain.

All of this has been further compounded by the additional procedural,
bookkeeping and accounting costs and time necessary for implementation
of this convoluted system. At a time when New York State has finally
undertaken efforts to attract and retain businesses here, this recently
enacted tax is inappropriate and should be eliminated.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the state.

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

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

                                  3669

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

Introduced  by  Sen. MARTINS -- 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 the collection of sales  tax
  on abstracts of title and other public records searches

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

  Section 1. Paragraph 1 of subdivision (c) of section 1105 of  the  tax
law,  as  amended by chapter 583 of the laws of 2011, is amended to read
as follows:
  (1) The furnishing of information by printed, mimeographed  or  multi-
graphed  matter or by duplicating written or printed matter in any other
manner, including the services of  collecting,  compiling  or  analyzing
information  of  any  kind  or  nature and furnishing reports thereof to
other persons, but excluding the  furnishing  of  information  which  is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the  services of advertising or other agents, or other persons acting in
a representative capacity, and information services used by  newspapers,
electronic news services, radio broadcasters and television broadcasters
in  the collection and dissemination of news, and excluding meteorologi-
cal services, AND EXCLUDING ABSTRACTS OF TITLE AND OTHER PUBLIC  RECORDS
SEARCHES  SUCH  AS  TAX  SEARCHES,  SEARCHES  FOR  MUNICIPAL RECORDS FOR
VIOLATIONS, CERTIFIED OR NONCERTIFIED COPIES OBTAINED  FROM  THE  PUBLIC
RECORD,  CERTIFICATES  OF  TITLE AND LIEN SEARCHES, CERTIFICATES OF GOOD
STANDING AND FRANCHISE  TAX  SEARCHES,  COOPERATIVE  UNIT  SEARCHES  AND
ZONING LOT PARTIES-IN-INTEREST CERTIFICATIONS.
  S 2. This act shall take effect April 1, 2013.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08825-01-3

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.