S T A T E O F N E W Y O R K
________________________________________________________________________
1906
2009-2010 Regular Sessions
I N A S S E M B L Y
January 14, 2009
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to exempting the retail sale of
fuel-efficient vehicles, zero-emission vehicles, flexible-fuel vehi-
cles and alternative-fuel vehicles from the tax on sales and the
compensating use tax; and to amend the tax law, in relation to provid-
ing a credit against the personal income tax and the corporate fran-
chise tax for the purchase of fuel-efficient vehicles
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) (I) THE RECEIPTS FROM THE RETAIL SALE OF NEW FUEL-EFFICIENT VEHI-
CLES, ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHICLES OR ALTERNATIVE-FUEL
VEHICLES.
(II) AS USED IN THIS PARAGRAPH:
(A) "FUEL-EFFICIENT VEHICLE" MEANS A VEHICLE, AS DEFINED IN SECTION
ONE HUNDRED FIFTY-NINE OF THE VEHICLE AND TRAFFIC LAW, THAT IS RATED AT
ONE HUNDRED TEN PERCENT OR GREATER OF THE AVERAGE FUEL EFFICIENCY FOR
VEHICLES IN ITS WEIGHT CLASS;
(B) "ZERO-EMISSION VEHICLE" MEANS A VEHICLE, AS DEFINED IN SECTION ONE
HUNDRED FIFTY-NINE OF THE VEHICLE AND TRAFFIC LAW, WHICH PROVIDES ZERO
EMISSIONS UNDER ANY AND ALL POSSIBLE OPERATIONAL NEEDS AND CONDITIONS;
(C) "FLEXIBLE-FUEL VEHICLE" MEANS A VEHICLE, AS DEFINED IN SECTION ONE
HUNDRED FIFTY-NINE OF THE VEHICLE AND TRAFFIC LAW, THAT IS ENGINEERED
AND DESIGNED TO BE OPERATED USING GASOLINE AND/OR AN ALTERNATIVE-FUEL
MIXTURE OR BLEND; AND
(D) "ALTERNATIVE-FUEL VEHICLE" MEANS A VEHICLE, AS DEFINED IN SECTION
ONE HUNDRED FIFTY-NINE OF THE VEHICLE AND TRAFFIC LAW, WHICH IS POWERED
BY A FUEL SOURCE OTHER THAN GASOLINE OR DIESEL FUEL THAT CAN BE REGIS-
TERED FOR USE UPON THE ROADS OF THE STATE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03132-01-9
A. 1906 2
S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law,
as amended by chapter 306 of the laws of 2005, subparagraph (i) as
amended by section 4 of part SS-1 of chapter 57 of the laws of 2008,
subparagraph (ii) as amended by chapter 144 of the laws of 2006, is
amended to read as follows:
(1) (i) Either, all of the taxes described in article twenty-eight of
this chapter, at the same uniform rate, as to which taxes all provisions
of the local laws, ordinances or resolutions imposing such taxes shall
be identical, except as to rate and except as otherwise provided, with
the corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. Any local
law, ordinance or resolution enacted by any city of less than one
million or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes all sales
of tangible personal property for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) of section eleven hundred nineteen of this chapter. Any local
law, ordinance or resolution enacted by any city, county or school
district, imposing the taxes authorized by this subdivision, shall omit
the residential solar energy systems equipment exemption provided for in
subdivision (ee), the clothing and footwear exemption provided for in
paragraph thirty of subdivision (a) and the qualified empire zone enter-
prise exemptions provided for in subdivision (z) AND THE FUEL-EFFICIENT
VEHICLES, ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHICLES OR ALTERNA-
TIVE-FUEL VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FOUR OF
SUBDIVISION (A) of section eleven hundred fifteen of this chapter,
unless such city, county or school district elects otherwise as to
either such residential solar energy systems equipment exemption or such
clothing and footwear exemption or such qualified empire zone enterprise
exemptions OR SUCH FUEL-EFFICIENT VEHICLES, ZERO-EMISSION VEHICLES,
FLEXIBLE-FUEL VEHICLES OR ALTERNATIVE-FUEL VEHICLES EXEMPTION PROVIDED
FOR IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER; provided that if such a city having a popu-
lation of one million or more in which the taxes imposed by section
eleven hundred seven of this chapter are in effect enacts the resolution
described in subdivision (k) of this section or repeals such resolution
or enacts the resolution described in subdivision (l) of this section or
repeals such resolution or enacts the resolution described in subdivi-
sion (n) of this section or repeals such resolution, such resolution or
repeal shall also be deemed to amend any local law, ordinance or resol-
A. 1906 3
ution enacted by such a city imposing such taxes pursuant to the author-
ity of this subdivision, whether or not such taxes are suspended at the
time such city enacts its resolution pursuant to subdivision (k), (l)
[or], (n) OR (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 (k), (l) [or], (n) OR (P) of this section,
shall be further amended, as provided in section twelve hundred eighteen
of this subpart, so that the residential solar energy systems equipment
exemption or the clothing and footwear exemption or the qualified empire
zone enterprise exemptions OR THE FUEL-EFFICIENT VEHICLES, ZERO-EMISSION
VEHICLES, FLEXIBLE-FUEL VEHICLES OR ALTERNATIVE-FUEL VEHICLES EXEMPTION
in any such local law, ordinance or resolution or in such section eleven
hundred seven are the same, as the case may be, as the residential solar
energy systems equipment exemption provided for in subdivision (ee), the
clothing and footwear exemption in paragraph thirty of subdivision (a)
or the qualified empire zone enterprise exemptions in subdivision (z) OR
THE FUEL-EFFICIENT VEHICLES, ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHI-
CLES OR ALTERNATIVE-FUEL VEHICLES EXEMPTION IN PARAGRAPH FORTY-FOUR OF
SUBDIVISION (A) of section eleven hundred fifteen of this chapter.
(ii) Notwithstanding any other provision of the law to the contrary,
any county, imposing the taxes authorized by this subdivision, having a
population of not less than one hundred thirty-nine thousand and not
more than one hundred forty thousand, determined in accordance with the
two thousand decennial federal census, may by local law, ordinance or
resolution elect to exempt from such local sales and compensating use
taxes clothing and footwear, as defined in paragraph fifteen of subdivi-
sion (b) of section eleven hundred one of this chapter, for which the
receipt or consideration given or contracted to be given is less than
one hundred ten dollars per article of clothing, per pair of shoes or
other articles of footwear or per item used or consumed to make or
repair such clothing and which becomes a physical component part of such
clothing. Every such county shall comply with the provisions of subdivi-
sions (d) and (e) of this section, including such provisions applicable
to providing or repealing the exemption described in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter.
S 3. 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 SAME EXEMPTIONS FROM SUCH TAXES AS
THE FUEL-EFFICIENT VEHICLES, ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHI-
CLES OR ALTERNATIVE-FUEL VEHICLES EXEMPTION FROM STATE SALES AND COMPEN-
SATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR 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 EXEMPTIONS AS IF THEY
HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.
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(2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR
CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, PROPERTY AND SERVICES
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
FORTY-FOUR OF SUBDIVISION (A) OF SECTION 1115 OF THE TAX LAW SHALL ALSO
BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURIS-
DICTION.
SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2009) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE IN ACCORD-
ANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216
AND 1217 OF THE NEW YORK TAX LAW.
S 4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) FUEL-EFFICIENT VEHICLES CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF A
FUEL-EFFICIENT VEHICLE, ZERO-EMISSION VEHICLE, FLEXIBLE-FUEL VEHICLE OR
ALTERNATIVE-FUEL VEHICLE. SUCH CREDIT SHALL BE EQUAL TO ONE THOUSAND
DOLLARS FOR EACH SUCH VEHICLE PURCHASED DURING THE TAXABLE YEAR. FOR
PURPOSES OF THIS SUBSECTION, THE TERMS "FUEL-EFFICIENT VEHICLE", "ZERO-
EMISSION VEHICLE", "FLEXIBLE-FUEL VEHICLE" AND "ALTERNATIVE-FUEL VEHI-
CLE" SHALL HAVE THE SAME MEANING AS THE MEANING SET FORTH IN PARAGRAPH
FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
CHAPTER.
(2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
S 5. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
41. FUEL-EFFICIENT VEHICLES CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF A
FUEL-EFFICIENT VEHICLE, ZERO-EMISSION VEHICLE, FLEXIBLE-FUEL VEHICLE OR
ALTERNATIVE-FUEL VEHICLE. SUCH CREDIT SHALL BE EQUAL TO ONE THOUSAND
DOLLARS FOR EACH SUCH VEHICLE PURCHASED DURING THE TAXABLE YEAR. FOR
PURPOSES OF THIS SUBDIVISION, THE TERMS "FUEL-EFFICIENT VEHICLE",
"ZERO-EMISSION VEHICLE", "FLEXIBLE-FUEL VEHICLE" AND "ALTERNATIVE-FUEL
VEHICLE" SHALL HAVE THE SAME MEANING AS THE MEANING SET FORTH IN PARA-
GRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS CHAPTER.
(B) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
S 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.