senate Bill S4920

Amended

Eliminates the sales tax on transportation services; repealer

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Sponsor

Co-Sponsors

Bill Status


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

  • 01 / May / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 09 / Oct / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 09 / Oct / 2013
    • PRINT NUMBER 4920A
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 13 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1073
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 16 / Jun / 2014
    • PASSED SENATE
  • 16 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 16 / Jun / 2014
    • REFERRED TO WAYS AND MEANS

Summary

Eliminates the sales tax on transportation services.

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Bill Details

See Assembly Version of this Bill:
A7724
Versions:
S4920
S4920A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §1101 sub (b) ¶34, §1105 sub (c) ¶10, §1106 sub (l) & §1111 sub (o), amd §1213, Tax L

Votes

6
0
6
Aye
0
Nay
2
aye with reservations
0
absent
1
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S4920

TITLE OF BILL: An act to amend the tax law, in relation to
eliminating sales tax on transportation services; and to repeal
certain provisions of such law relating thereto

PURPOSE: The purpose of this bill is to repeal the sales tax and
related expenses charged on certain transportation services.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 repeals: paragraph 34 of subdivision (b) of section 1101 of
the tax law; paragraph 10 of subdivision (c) of section 1105 of the
tax law; subdivision (1)of section 1106 of the tax law; subdivision
(o) of section 111 of the tax law.

Further Section 1213 of the tax law amends current law to exclude
certain transportation services from collecting sales tax on the
services provided.

Finally, Section 1 provides the effective date.

JUSTIFICATION: In 2009 a hidden sales tax was imposed on the livery
industry. This new tax was specifically aimed at services for sedans,
vans, SUV's and limos; leaving public transportation, taxi's, and
buses untaxed. This new responsibility caught the entire industry off
guard, and creates an unfair disadvantage to the industry when
purchasing tangible property.

This legislation would repeal several provisions that exist in current
law in order to equalize the tax burden for the transportation
industry. This legislation will provide a much needed tax relief to
small businesses, as well as help to offset the rising costs that the
livery industry faces.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to the quarterly period, as described in subdivision (b) of
section 1136 of the tax law, next commencing September 1, 2014 and
shall apply in accordance with the applicable transitional provisions
in sections 1106 and 1217 of the tax law.

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

                                  4920

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 1, 2013
                               ___________

Introduced  by Sen. GRISANTI -- 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  eliminating  sales  tax  on
  transportation  services; and to repeal certain provisions of such law
  relating thereto

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

  Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is
REPEALED.
  S 3. Subdivision (1) of section 1106 of the tax law is REPEALED.
  S 4. Subdivision (o) of section 1111 of the tax law is REPEALED.
  S 5. Section 1213 of the tax law, as amended by section 2 of  part  WW
of chapter 57 of the laws of 2010, is amended to read as follows:
  S  1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal  property  or  services,  including  prepaid
telephone  calling  services, but not including other services described
in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
including  an  agreement therefor, is made in any city, county or school
district, but the property sold, the property upon  which  the  services
were  performed or prepaid telephone calling or other service is or will
be delivered to the purchaser elsewhere, such sale shall not be  subject
to  tax  by  such  city, county or school district. However, if delivery
occurs or will occur in a city, county or school district imposing a tax
on the sale or use of such property, prepaid telephone calling or  other
services, the vendor shall be required to collect from the purchaser, as
provided  in  section  twelve  hundred  fifty-four  of this article, the
aggregate sales or compensating use taxes imposed by the city,  if  any,
county  and  school district in which delivery occurs or will occur, for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09929-01-3

S. 4920                             2

distribution by the commissioner to such taxing jurisdiction  or  juris-
dictions.  For  the purposes of this section delivery shall be deemed to
include transfer of possession to the purchaser and the receiving of the
property or of the service, including prepaid telephone calling service,
by the purchaser. [Notwithstanding the foregoing, where a transportation
service  described in paragraph ten of subdivision (c) of section eleven
hundred five of this chapter begins in  one  jurisdiction  but  ends  in
another  jurisdiction, any tax imposed pursuant to the authority of this
article shall be due the jurisdiction or jurisdictions where the service
commenced.]
  S 6. This act shall take effect immediately and  shall  apply  to  the
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing September 1, 2014 and shall apply in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

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