senate Bill S4311

Signed by Governor

Provides for a sales tax exemption for water and sewer service line protection programs

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Bill Status


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

  • 20 / Mar / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 10 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 10 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1193
  • 11 / Jun / 2013
    • PASSED SENATE
  • 11 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 20 / Jun / 2013
    • SUBSTITUTED FOR A6217
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.594
  • 20 / Jun / 2013
    • PASSED ASSEMBLY
  • 20 / Jun / 2013
    • RETURNED TO SENATE
  • 09 / Oct / 2013
    • DELIVERED TO GOVERNOR
  • 21 / Oct / 2013
    • SIGNED CHAP.400

Summary

Provides for a sales tax exemption for water and sewer service line protection programs.

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Bill Details

See Assembly Version of this Bill:
A6217
Versions:
S4311
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L

Sponsor Memo

BILL NUMBER:S4311

TITLE OF BILL: An act to amend the tax law, in relation to providing
an exemption for water and sewer service line protection programs

PURPOSE:

This legislation provides for a sales tax exemption for water and
sewer service line protection programs.

SUMMARY OF PROVISIONS:

Section one amends Section 1115 of the tax law by adding a new
subdivision (ii) to read as follows: Receipts from sales of and fees
associated with water and sewer service line protection programs sold
to owners of residential property shall be exempt from the taxes
imposed by this article.

Section two stipulates that this act shall take effect immediately.

JUSTIFICATION:

Property owners in New York are responsible for maintaining their
water and sewer service lines, which are buried underground and run
from a building to the City-owned mains under the street. Residential
property owners on average pay between $3,000 and $5,000 to repair a
water line break and between $10,000 and $15,000 to repair a sewer
line break in New York City. Homeowners have the option of enrolling
in a service line protection Program for a monthly fee to safeguard
them from the high costs of service line breaks. The Program is
managed by American Water Resources (AWR) through the Department of
Environmental Protection.

The annual cost of owning and maintaining a home is already a costly
undertaking. In New York State, insurance does not include sales tax,
and the protection program serves the same purpose as an insurance
plan. Homeowners should not be subject to unnecessary taxes on their
water and sewer line protection programs, and this act will ensure
exemption from the burden of excessive fees.

LEGISLATIVE HISTORY:

This is a new bill.

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
________________________________________________________________________

                                  4311

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 20, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 providing an  exemption  for
  water and sewer service line protection programs

  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)  RECEIPTS  FROM SALES OF AND FEES ASSOCIATED WITH WATER AND SEWER
SERVICE LINE PROTECTION PROGRAMS SOLD TO OWNERS OF RESIDENTIAL  PROPERTY
SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS ARTICLE.
  S 2. This act shall take effect immediately.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09660-01-3

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