NY State Senate Bill 2023-S401

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Jan 04, 2023	referred to budget and revenue

2023-S401 (ACTIVE) - Details

See Assembly Version of this Bill:: A756
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1107 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6633, A9321
2017-2018: S6258, A4950
2019-2020: S2005, A602
2021-2022: S522, A1200

2023-S401 (ACTIVE) - Summary

Relates to providing an exemption for drugs and medicines for companion and farm animals.

2023-S401 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S401

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing an exemption for
drugs and medicines for companion and farm animals

 
PURPOSE:

This bill eliminates sales tax collected on medicine for companion and
farm animals at the state level while still providing local governments
the option to forsake their portion of the tax, or to continue collect-
ing it.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subdivision (a) of section 1115 of the tax law by
adding a new paragraph 3-a.

Section two amends subdivision (b) of section 1107 of the tax law by
adding a new clause 12.

Sections three, four, and five amends Subparagraph (ii) of Subdivision
(a)&(d) of section 1210 of the tax law, as amended by part J of chapter
59 of the laws of 2021, and a new subparagraph (iii) is added with a
provision for a local law to adopt or repeal as it relates to a city
with a population of one million or more.

Section six authorizes the Commissioner of Taxation and Finance to
implement the provisions of this act.

Section seven sets forth the effective date.

 
JUSTIFICATION:

Less than one-half of the states in the nation tax prescription drugs
and medications the same as any other retail sale. In some states, the
consumer ultimately pays the tax. Other states consider the veterinarian
to be the consumer who pays the taxes on prescriptions and medications.

While it would still be at the discretion of local governments to
continue to collect this tax or similarly repeal it, this initiative
will provide a 50% sales tax savings to pet owners even with no action
taken at the local level and will ultimately benefit the health and
well-being of companion and farm animals that have no voice. Lifesaving
equipment and medications for our pets should not be taxable or deemed
as miscellaneous retail items.

Furthermore, humans and service dogs currently carry this exemption.
This bill would provide both clarity and uniformity to the law and send
a clear message that our State values humans, service dogs, companion
and farm animals alike, and will not apply sales taxes on prescription
medications unequally.

 
LEGISLATIVE HISTORY:

02/02/16:S.6633 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

05/11/17:S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

01/03/18:S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

01/18/19:S.2005 REFERRED TO BUDGET AND REVENUE

01/08/20:S.2005 REFERRED TO BUDGET AND REVENUE

01/06/21:S.522 REFERRED TO BUDGET AND REVENUE

01/05/22:S.522 REFERRED TO BUDGET AND REVENUE

 
FISCAL IMPLICATIONS:

Undetermined.


 
EFFECTIVE DATE:
This bill shall take effect on the first day of the sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
next commencing at least 90 days after this act shall have become a law
and shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

2023-S401 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    401
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to providing an  exemption  for
   drugs and medicines for companion and farm animals

   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 3-c to read as follows:
   (3-C)  DRUGS AND MEDICINES INTENDED FOR USE, INTERNALLY OR EXTERNALLY,
 IN THE  CURE,  MITIGATION,  TREATMENT  OR  PREVENTION  OF  ILLNESSES  OR
 DISEASES IN COMPANION ANIMALS, AS DEFINED BY SUBDIVISION FIVE OF SECTION
 THREE  HUNDRED  FIFTY  OF  THE  AGRICULTURE  AND  MARKETS  LAW, AND FARM
 ANIMALS, AS DEFINED BY SUBDIVISION FOUR OF SECTION THREE  HUNDRED  FIFTY
 OF  THE AGRICULTURE AND MARKETS LAW, MEDICAL EQUIPMENT (INCLUDING COMPO-
 NENT PARTS THEREOF) AND SUPPLIES REQUIRED FOR SUCH USE OR TO CORRECT  OR
 ALLEVIATE PHYSICAL INCAPACITY.
   §  2.  Subdivision  (b)  of  section 1107 of the tax law is amended by
 adding a new clause 12 to read as follows:
   (12) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE  EXEMPTION  PROVIDED  BY
 PARAGRAPH  THREE-C  OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
 OF THIS ARTICLE RELATING TO DRUGS AND  MEDICINES  INTENDED  FOR  USE  IN
 COMPANION  ANIMALS  AND  FARM  ANIMALS SHALL BE APPLICABLE PURSUANT TO A
 LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY  A  CITY  SUBJECT  TO  THE
 PROVISIONS  OF  THIS  CLAUSE.  SUCH CITY IS EMPOWERED TO ADOPT OR REPEAL
 SUCH A LOCAL LAW, ORDINANCE OR RESOLUTION. SUCH ADOPTION OR REPEAL SHALL
 ALSO BE DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE OR  RESOLUTION  ENACTED
 BY  SUCH  A CITY IMPOSING TAXES PURSUANT TO THE AUTHORITY OF SUBDIVISION
 (A) OF SECTION TWELVE HUNDRED TEN OF THIS CHAPTER.
   § 3. Subparagraph (ii) of paragraph 1 of subdivision  (a)  of  section
 1210  of the tax law, as amended by section 5 of part J of chapter 59 of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00751-02-3
 S. 401                              2
 
 the laws of 2021, is amended and a new subparagraph (iii)  is  added  to
 read as follows:
   (ii) Any local law, ordinance or resolution enacted by any city, coun-
 ty  or  school  district, imposing the taxes authorized by this subdivi-
 sion, shall omit the residential  solar  energy  systems  equipment  and
 electricity exemption provided for in subdivision (ee) OF SECTION ELEVEN
 HUNDRED  FIFTEEN  OF  THIS  CHAPTER, the commercial solar energy systems
 equipment and electricity exemption provided for in subdivision (ii)  OF
 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, the commercial fuel cell
 electricity  generating  systems  equipment and electricity generated by
 such equipment exemption provided for in  subdivision  (kk)  OF  SECTION
 ELEVEN  HUNDRED  FIFTEEN  OF  THIS CHAPTER and the clothing and footwear
 exemption provided for in paragraph thirty of subdivision (a) of section
 eleven hundred fifteen of this chapter,  unless  such  city,  county  or
 school  district  elects  otherwise  as to such residential solar energy
 systems equipment and electricity exemption, such commercial solar ener-
 gy systems equipment and electricity  exemption,  commercial  fuel  cell
 electricity  generating  systems  equipment and electricity generated by
 such equipment exemption or such clothing and footwear exemption.  (III)
 ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY ANY  CITY,  COUNTY  OR
 SCHOOL  DISTRICT,  IMPOSING  THE  TAXES  AUTHORIZED BY THIS SUBDIVISION,
 SHALL OMIT MEDICINES INTENDED FOR USE  IN  COMPANION  ANIMALS  AND  FARM
 ANIMALS  EXEMPTION  PROVIDED FOR IN PARAGRAPH THREE-C OF SUBDIVISION (A)
 OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS  CHAPTER,  UNLESS  SUCH  CITY,
 COUNTY OR SCHOOL DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY
 HAVING  A  POPULATION  OF  ONE  MILLION  OR  MORE  ENACTS THE RESOLUTION
 DESCRIBED IN SUBDIVISION (P) OF THIS SECTION OR REPEALS SUCH RESOLUTION,
 SUCH RESOLUTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY  LOCAL  LAW,
 ORDINANCE  OR  RESOLUTION  ENACTED  BY  SUCH  A CITY IMPOSING SUCH TAXES
 PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES
 ARE SUSPENDED AT THE TIME SUCH CITY ENACTS ITS  RESOLUTION  PURSUANT  TO
 SUBDIVISION  (P)  OF  THIS  SECTION  OR  AT THE TIME OF ANY SUCH REPEAL;
 PROVIDED, FURTHER, THAT ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION  AND
 SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER, AS DEEMED TO BE AMENDED IN
 THE  EVENT A CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION PURSUANT TO
 THE AUTHORITY OF SUBDIVISION (P)  OF  THIS  SECTION,  SHALL  BE  FURTHER
 AMENDED, AS PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS SUBPART,
 SO  THAT  THE  MEDICINES  INTENDED FOR USE IN COMPANION ANIMALS AND FARM
 ANIMALS EXEMPTION IN ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION  OR  IN
 SUCH  SECTION  ELEVEN  HUNDRED  SEVEN OF THIS CHAPTER IS THE SAME AS THE
 MEDICINES INTENDED FOR USE IN COMPANION  ANIMALS  AND  FARM  ANIMALS  IN
 PARAGRAPH  THREE-C  OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
 OF THIS CHAPTER.
   § 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
 section  4  of  part WW of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (d) A local law, ordinance or resolution imposing any tax pursuant  to
 this  section,  increasing or decreasing the rate of such tax, repealing
 or suspending such tax, exempting from such tax the energy  sources  and
 services  described in paragraph three of subdivision (a) or of subdivi-
 sion (b) of this section or changing the rate of  tax  imposed  on  such
 energy  sources  and  services  or  providing  for  the credit or refund
 described in clause six of subdivision (a)  of  section  eleven  hundred
 nineteen  of  this  chapter,  or electing or repealing the exemption for
 residential solar equipment  and  electricity  in  subdivision  (ee)  of
 section  eleven  hundred  fifteen  of  this  [article]  CHAPTER,  or the
 S. 401                              3
 
 exemption for commercial solar equipment and electricity in  subdivision
 (ii)  of  section  eleven  hundred fifteen of this [article] CHAPTER, or
 electing or repealing the exemption for commercial fuel cell electricity
 generating systems equipment and electricity generated by such equipment
 in  subdivision (kk) of section eleven hundred fifteen of this [article]
 CHAPTER must go into effect only on one of the  following  dates:  March
 first,  June  first, September first or December first; provided, that a
 local law, ordinance or resolution providing for the exemption described
 in paragraph thirty of subdivision (a) of section eleven hundred fifteen
 of this chapter or repealing any such exemption or a  local  law,  ordi-
 nance or resolution providing for a refund or credit described in subdi-
 vision (d) of section eleven hundred nineteen of this chapter or repeal-
 ing  such provision so provided must go into effect only on March first;
 PROVIDED, FURTHER, THAT A LOCAL LAW, ORDINANCE OR  RESOLUTION  PROVIDING
 FOR  THE  EXEMPTION DESCRIBED IN PARAGRAPH THREE-C OF SUBDIVISION (A) OF
 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER  OR  REPEALING  ANY  SUCH
 EXEMPTION SO PROVIDED AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY
 OF SUBDIVISION (P) OF THIS SECTION PROVIDING SUCH EXEMPTION OR REPEALING
 SUCH  EXEMPTION  SO  PROVIDED  MAY GO INTO EFFECT IMMEDIATELY.   No such
 local law, ordinance or resolution shall be effective unless a certified
 copy of such law, ordinance or resolution is  mailed  by  registered  or
 certified mail to the commissioner at the commissioner's office in Alba-
 ny  at  least  ninety  days prior to the date it is to become effective.
 However, the commissioner may waive and reduce such  ninety-day  minimum
 notice  requirement to a mailing of such certified copy by registered or
 certified mail within a period of not less than  thirty  days  prior  to
 such effective date if the commissioner deems such action to be consist-
 ent with the commissioner's duties under section twelve hundred fifty of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction provided for in section twelve hundred twenty-three of  this
 article  as  to  the  effective date of a tax and the notice requirement
 provided for therein are  applicable  and  have  not  been  waived,  the
 restriction  and  notice  requirement  in section twelve hundred twenty-
 three of this article shall also apply.
   § 5. Section 1210 of the tax law is amended by adding a  new  subdivi-
 sion (p) to read as follows:
   (P)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
 NANCE OR RESOLUTION TO THE CONTRARY:
   (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
 TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
 EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
 AND  EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR THE
 SAME MEDICINES INTENDED FOR USE IN COMPANION ANIMALS  AND  FARM  ANIMALS
 EXEMPT  FROM  STATE  SALES AND COMPENSATING USE TAXES DESCRIBED IN PARA-
 GRAPH THREE-C OF SUBDIVISION (A) OF SECTION ELEVEN  HUNDRED  FIFTEEN  OF
 THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH
 TWO  OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS
 OF SUBDIVISIONS (D) AND (E) OF THIS  SECTION,  SUCH  ENACTMENT  OF  SUCH
 RESOLUTION  SHALL  BE  DEEMED  TO BE AN AMENDMENT TO SUCH SECTION ELEVEN
 HUNDRED SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE  DEEMED  TO
 INCORPORATE  SUCH  EXEMPTION AS IF IT HAD BEEN DULY ENACTED BY THE STATE
 LEGISLATURE AND APPROVED BY THE GOVERNOR.
   (2) THE RESOLUTION DESCRIBED IN  PARAGRAPH  ONE  OF  THIS  SUBDIVISION
 SHALL  READ  AS  FOLLOWS:  BE  IT ENACTED BY THE (INSERT PROPER TITLE OF
 LOCAL LEGISLATIVE BODY) AS FOLLOWS:
 S. 401                              4
 
   SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
 CONTRACTED  TO  BE  GIVEN FOR PURCHASES OF MEDICINES INTENDED FOR USE IN
 COMPANION ANIMALS AND FARM ANIMALS EXEMPT FROM STATE SALES  AND  COMPEN-
 SATING  USE  TAXES  PURSUANT  TO PARAGRAPH THREE-C OF SUBDIVISION (A) OF
 SECTION  ELEVEN HUNDRED FIFTEEN OF THE TAX LAW SHALL ALSO BE EXEMPT FROM
 SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
   SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE)  AND
 SHALL  APPLY  TO  SALES  MADE  AND USES OCCURRING ON AND AFTER THAT DATE
 ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
   § 6. The commissioner of taxation and finance is hereby authorized  to
 implement  the provisions of this act with respect to the elimination of
 the imposition of sales tax, additional taxes, and supplemental taxes on
 medicines intended for use in companion animals and farm animals and all
 other taxes so addressed by this act.
   § 7. This act shall take effect on the first  day  of  the  sales  tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax  law,  next  commencing  at  least 90 days after this act shall have
 become a law and shall apply in accordance with the  applicable  transi-
 tional provisions of sections 1106 and 1217 of the tax law.

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Senate Bill S401

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S401 (ACTIVE) - Details

2023-S401 (ACTIVE) - Summary

2023-S401 (ACTIVE) - Sponsor Memo

2023-S401 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S401

Share this bill

Sponsored By

James Tedisco

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S401 (ACTIVE) - Details

2023-S401 (ACTIVE) - Summary

2023-S401 (ACTIVE) - Sponsor Memo

2023-S401 (ACTIVE) - Bill Text download pdf

Comments