senate Bill S6590

Creates a tax exemption for leasing of certain aircraft used for flight schools

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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 / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Creates a tax exemption for leasing of certain aircraft used for flight schools.

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Bill Details

See Assembly Version of this Bill:
A8754
Versions:
S6590
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L

Sponsor Memo

BILL NUMBER:S6590

TITLE OF BILL: An act to amend the tax law, in relation to creating a
tax exemption for leasing of certain aircraft used for flight schools

SUMMARY OF PROVISIONS: Section 1 - Subdivision (a) of section 1115 of
the Tax Law is amended by adding a new paragraph 44 to read as
follows: (44) Notwithstanding the provisions of subparagraph three of
paragraph (A) of subdivision (i) of section eleven hundred eleven of
this article, leases and rentals of non-commercial aircraft having a
seating capacity of less than twenty passengers and a maximum payload
capacity of less than six thousand pounds that are used for training
and educational purposes.

Section 2 - This act shall take effect on the first day of a sales tax
quarterly period, as described in subdivision (b) of section 1136 of
the Tax Law, next commencing at least sixty days after this act shall
have become law and shall apply in accordance with the applicable
transitional provisions of section 1106 and 1217 of the Tax Law;
provided, further, that the Commissioner of Taxation and Finance shall
be authorized on and after the date this act shall have become law to
take steps necessary to implement the provisions of this act on its
effective date.

JUSTIFICATION: For decades, the system in place was that buyers of
aircraft who rented their planes out for the purpose of flight
training were exempt from paying sales tax on the original purchase of
the aircraft. Flight training owners are now forced to go out of
business with the state's reinterpretation of its sales tax code.

PRIOR LEGISLATIVE HISTORY: 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
________________________________________________________________________

                                  6590

                            I N  S E N A T E

                            February 11, 2014
                               ___________

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

AN ACT to amend the tax law, in relation to creating a tax exemption for
  leasing of certain aircraft used for flight schools

  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) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH THREE OF PARAGRAPH
(A) OF SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE,
LEASES  AND  RENTALS OF NONCOMMERCIAL AIRCRAFT HAVING A SEATING CAPACITY
OF LESS THAN TWENTY PASSENGERS AND A MAXIMUM PAYLOAD  CAPACITY  OF  LESS
THAN  SIX  THOUSAND  POUNDS  THAT  ARE USED FOR TRAINING AND EDUCATIONAL
PURPOSES.
  S 2. This act shall take effect on the first day of a sales tax  quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law,  next  commencing  at  least  sixty  days after this act shall have
become law and shall apply in accordance  with  the  applicable  transi-
tional  provisions  of  sections 1106 and 1217 of the tax law; provided,
further, that the commissioner of taxation and finance shall be  author-
ized  on  and  after  the  date this act shall have become a law to take
steps necessary to implement the provisions of this act on its effective
date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11650-01-3

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