senate Bill S6597

Relates to the sales tax exemption for coin operated car wash facilities

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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 / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Provides that the sales tax exemption for coin operated car wash facilities shall apply to those facilities which may be operated by a credit or debit card.

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Bill Details

See Assembly Version of this Bill:
A7510
Versions:
S6597
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: A4668, S3509, A4668
2009-2010: A4757, A4757
2007-2008: A8397, A8397

Sponsor Memo

BILL NUMBER:S6597

TITLE OF BILL: An act to amend the tax law, in relation to the sales
tax exemption for car wash facilities

PURPOSE: To expand the sales tax exemption for coin-operated car wash
services to authorize the exemption where payment is made by credit or
debit card.

JUSTIFICATION: Under current law, coin-operated car wash services are
exempt from sales tax. "Coin-operated" is defined to include
coin-operated, currency-operated or token operated, but does not
include credit or debit card machine transactions. If a coin-operated
car wash business adds equipment to authorize payment by credit or
debit card, then the coin operated services are not subject to sales
tax under current law, but the services paid for through the credit or
debit card machine are subject to sales tax. This requires a separate
accounting for the credit or debit card transactions, with the
associated additional burdens for the car wash business owner. Car
wash businesses install credit or debit card machines as a convenience
to consumers and they should not be required to pay sales tax on these
services, which would otherwise be exempt from sales taxation, because
they are offering a more modem mode of payment as a convenience to the
consumer.

In addition, when sales tax is required to be paid on car wash
services paid for through credit or debit card machines, the car wash
business is subject to double taxation because it must also pay sales
tax on the products and equipment purchased to provide the car wash.
It is inequitable to tax these small businessmen at two levels in the
chain of commerce and this bill would remedy this inequity.

LEGISLATIVE HISTORY: A.4668 of 2011/2012: referred to ways and means
A.4757 of 2009/2010: referred to ways and means 2007/2008: Veto Memo
41

FISCAL IMPLICATIONS: Undetermined.

EFFECTIVE DATE: 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, occurring at least sixty days after this act shall
have become a law.

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

                                  6597

                            I N  S E N A T E

                            February 11, 2014
                               ___________

Introduced  by  Sen.  SEWARD -- 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 sales tax exemption  for
  car wash facilities

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

  Section 1. Paragraph 3 of subdivision (t) of section 1115 of  the  tax
law,  as  amended by chapter 489 of the laws of 2003, is amended to read
as follows:
  (3)  For  purposes  of  this  subdivision,  the  term  "coin-operated"
includes  coin-operated, currency-operated [or], token-operated OR OPER-
ATED BY A CREDIT OR DEBIT CARD MACHINE  and  the  term  "motor  vehicle"
shall  mean  a  motor  vehicle  as defined in subdivision (f) of section
eleven hundred thirty-two of this article.
  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, occurring at least sixty days after this act shall  have  become  a
law.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10928-01-3

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