senate Bill S3669A

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

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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

  • 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.

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Bill Details

See Assembly Version of this Bill:
A7193A
Versions:
S3669
S3669A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1105, Tax L

Sponsor Memo

BILL NUMBER:S3669A

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 municipal 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 implementation 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 1, 2014.

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

                                 3669--A

                       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 -- 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 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, 2014.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08825-02-4

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