NY State Assembly Bill 2009-A5960

Assembly Bill A5960

2009-2010 Legislative Session

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof

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Archive: Last Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 17, 2010	print number 5960a
Mar 17, 2010	amend (t) and recommit to ways and means
Jan 06, 2010	referred to ways and means
Feb 23, 2009	referred to ways and means

Bill Amendments

Original

A (Active)

co-Sponsors

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multi-Sponsors

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2009-A5960 - Details

See Senate Version of this Bill:: S4551
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A4818, S2678
2013-2014: A3677, S273
2015-2016: A3431, S815

2009-A5960 - Summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof.

2009-A5960 - Bill Text download pdf

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

                                  5960

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 23, 2009
                               ___________

Introduced  by  M.  of  A.  SCHIMMINGER,  DelMONTE,  BOYLAND, SCHROEDER,
  MAGNARELLI, LIFTON, MORELLE,  COOK,  FIELDS,  GABRYSZAK,  CHRISTENSEN,
  LUPARDO  --  Multi-Sponsored  by  --  M.  of  A. HOOPER, KOON, LAVINE,
  V. LOPEZ, MAGEE, PERRY, SAYWARD, SWEENEY,  WRIGHT  --  read  once  and
  referred to the Committee on Ways and Means

AN  ACT to amend the tax law, in relation to providing an exemption from
  sales and compensating use taxes for certain aircraft purchased in the
  state; and to amend chapter 60 of the laws of 2004, amending  the  tax
  law  relating to exempting parts used exclusively to maintain, repair,
  overhaul or rebuild aircraft or services associated therewith from the
  sales and compensating use tax, in relation to eliminating the expira-
  tion of the provisions thereof

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

  Section  1.  This act shall be known and may be cited as the "New York
aviation jobs act".
  S 2. Paragraph 1 of subdivision (dd) of section 1115 of the  tax  law,
as  added  by  section 1 of part L of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Services otherwise taxable under paragraph  three  of  subdivision
(c)  of  section eleven hundred five or under section eleven hundred ten
of this article,  SALES  OF  GENERAL  AVIATION  AIRCRAFT,  and  tangible
personal  property  purchased  and  used  by  the  person who sells such
services in performing such services,  where  such  property  becomes  a
physical  component  part  of  the  property upon which the services are
performed or where such property is a  lubricant  applied  to  aircraft,
shall  be  exempt  from  tax  under this article where such services are
performed on aircraft.
  S 3. Section 2 of part L of chapter 60 of the laws of  2004,  amending
the  tax  law  relating to exempting parts used exclusively to maintain,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05313-02-9

A. 5960                             2

repair, overhaul or rebuild aircraft or  services  associated  therewith
from the sales and compensating use tax, is amended to read as follows:
  S  2.  This act shall take effect December 1, 2004, and shall apply to
sales made, services rendered and uses occurring on or after  that  date
in  accordance  with  the applicable transitional provisions of sections
1106 and 1217 of the tax law[, and shall expire and be  deemed  repealed
December  1,  2009];  the  commissioner of taxation and finance shall be
immediately authorized to adopt and amend any rules or  regulations  and
issue  any  procedure, forms or instructions necessary to implement this
act on its effective date; furthermore, the commissioner of taxation and
finance, in conjunction with the commissioner of  transportation,  shall
review  and  analyze all statistical data available for such purposes of
determining the economic and revenue impact of the  sales  and  use  tax
exemptions  provided  in this act; such report shall include, but not be
limited to, any increases in aviation related employment, airplane main-
tenance, and increases in hangaring in New York state; such report shall
be transmitted, ON OR BEFORE DECEMBER 1, 2010, to the  governor,  TEMPO-
RARY PRESIDENT OF THE senate [majority leader] and speaker of the assem-
bly.
  S  4.  This act shall take effect immediately, except that section one
of this act shall take effect on the first of December  next  succeeding
the  date  on which it shall have become a law, and shall apply to sales
made, services rendered and uses occurring on  or  after  such  date  in
accordance  with the applicable transitional provisions of sections 1106
and 1217 of the tax law.  The commissioner of taxation and finance shall
be immediately authorized to adopt and amend any  rules  or  regulations
and  issue  any  procedure, forms or instructions necessary to implement
section one of this act on its effective date.

co-Sponsors

View additional co-sponsors

multi-Sponsors

View additional multi-sponsors

2009-A5960A (ACTIVE) - Details

See Senate Version of this Bill:: S4551
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A4818, S2678
2013-2014: A3677, S273
2015-2016: A3431, S815

2009-A5960A (ACTIVE) - Summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof.

2009-A5960A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A5960A

TITLE OF BILL:  An act to amend the tax law, in relation to providing an
exemption  from  sales  and  compensating use taxes for certain aircraft
purchased in the state

PURPOSE OF THE BILL: This bill would exempt from sales and use taxes the
purchase of general aviation aircraft.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- This act shall be known and may be cited as the "New York  Aviation
Jobs Act".

§  2-  Amends  Tax Law § 1115(dd) by amending paragraph 1 to exempt from
sales and use taxation the purchase of general aviation aircraft similar
to the current exemption granted to commercial service aircraft.

§ 3- Effective date.

JUSTIFICATION: Airports are one of the economic engines that fuel growth
in the communities that they serve. The economic benefits of airports in
this state are quite large.

Annual economic activity attributable to aviation is $36  billion.  Over
300,000,  New  York  residents  owe their jobs directly or indirectly to

airports. These jobs pay nearly $12 billion  in  payroll  on  an  annual
basis.  Airports  and  aviation industries pay over 2.7 billion in state
and local taxes each year.

New York air service is critical to  the  economic  well-being  of  this
state  and  to  the  traveling  public.  Airline  commercial  service is
provided at 18 airports located in urban and rural areas throughout  the
state.  In  addition  to  commercial service airports, hundreds of other
general aviation airports are  located  throughout  the  state.    These
airports  provide  services  such  as charter flights for businesses and
executives, quick access for medical  emergencies  and  law  enforcement
needs, flight training, and tourism & recreational flying.

This  bill will make New York competitive with other states that already
exempt sales taxes related to the purchase of general aviation aircraft.
Connecticut, Massachusetts, New Jersey and New Hampshire are  a  few  of
the  regional states that exempt these aviation purchases from sales and
use taxes or provide more favorable tax treatment.

Since the sales tax exemption for the maintenance, repair,  overhaul  or
rebuilding  of  aircraft  was  enacted  in  2004, New York has attracted
significant investment in aviation services. The recent study by the New
York State Department of Taxation and Finance -- A Review of  the  Sales
and  Use  Tax Exemption for Private Aircraft Parts and Service -- demon-
strates that  this  particular  tax  exemption  has  been  a  tremendous
success,  resulting  in  an expansion of aviation maintenance and repair

businesses, the creation of jobs here in New York  and  an  increase  in
state tax revenue.

Should  New  York  exempt  the purchase of general aviation aircraft, it
will further  encourage  existing  aircraft  maintenance  facilities  to
expand  their operations. In addition, other companies would look to New
York to locate or relocate their business  jets  and  operations  within
this  state. Like the maintenance and repair exemption, an exemption for
the purchase of aircraft is expected  to  increase  state  revenues  and
leverage  significant  economic  returns  for  local communities and the
state.

EXISTING LAW: While commercial aviation is tax exempt, there is current-
ly no exemption for the sale of general aviation aircraft.

PRIOR LEGISLATIVE HISTORY: 2007-2008:  A.3806-B/S.425-B; (Passed  Senate
in 2007 and 2008).

FISCAL IMPLICATIONS: NYS Department of Taxation & Finance estimates that
state  and  local  governments will see an offset to possible tax losses
with an increased amount of economic development, payroll taxes, proper-
ty taxes, and sales taxes in other ancillary services and increased fuel
tax collections from aircraft  maintenance  and  in-state  basing  as  a
result of the increase in aviation activity.

EFFECTIVE  DATE:  This act shall take effect immediately and shall apply
to sales made, services rendered and uses occurring  on  or  after  such
date  in  accordance  with  the  applicable  transitional  provisions of
sections 1106 and 1217 of the tax law. The commissioner of taxation  and
finance  shall be immediately authorized to adopt and amend any rules or
regulations and issue any procedure, forms or instructions necessary  to
implement this act on its effective date.

2009-A5960A (ACTIVE) - Bill Text download pdf

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

                                 5960--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 23, 2009
                               ___________

Introduced  by  M.  of  A.  SCHIMMINGER,  DelMONTE,  BOYLAND, SCHROEDER,
  MAGNARELLI, LIFTON, MORELLE,  COOK,  FIELDS,  GABRYSZAK,  CHRISTENSEN,
  LUPARDO,  GORDON,  CASTRO,  POWELL  --  Multi-Sponsored by -- M. of A.
  CALHOUN, GUNTHER, HAWLEY, HOOPER, KOON, LAVINE, V. LOPEZ, MAGEE, MOLI-
  NARO, PAULIN, PERRY, SAYWARD, SKARTADOS, SWEENEY,  WEISENBERG,  WRIGHT
  -- read once and referred to the Committee on Ways and Means -- recom-
  mitted  to the Committee on Ways and Means in accordance with Assembly
  Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT to amend the tax law, in relation to providing an exemption from
  sales and compensating use taxes for certain aircraft purchased in the
  state

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

  Section  1.  This act shall be known and may be cited as the "New York
aviation jobs act".
  S 2. Paragraph 1 of subdivision (dd) of section 1115 of the  tax  law,
as  added  by  section 1 of part L of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Services otherwise taxable under paragraph  three  of  subdivision
(c)  of  section eleven hundred five or under section eleven hundred ten
of this article,  SALES  OF  GENERAL  AVIATION  AIRCRAFT,  and  tangible
personal  property  purchased  and  used  by  the  person who sells such
services in performing such services,  where  such  property  becomes  a
physical  component  part  of  the  property upon which the services are
performed or where such property is a  lubricant  applied  to  aircraft,
shall  be  exempt  from  tax  under this article where such services are
performed on aircraft.
  S 3. This act shall take effect immediately, and shall apply to  sales
made,  and  uses  occurring on or after such date in accordance with the
applicable transitional provisions of sections 1106 and 1217 of the  tax

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05313-03-0

A. 5960--A                          2

law.    The  commissioner  of  taxation and finance shall be immediately
authorized to adopt and amend any rules or  regulations  and  issue  any
procedure,  forms  or instructions necessary to implement section one of
this act on its effective date.

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Assembly Bill A5960

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Sponsored By

SCHIMMINGER

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Francine DelMonte

William Boyland

Mark J.F. Schroeder

William Magnarelli

multi-Sponsors

Nancy Calhoun

Aileen Gunther

Stephen Hawley

Earlene Hooper

2009-A5960 - Details

2009-A5960 - Summary

2009-A5960 - Bill Text download pdf

co-Sponsors

Francine DelMonte

William Boyland

Mark J.F. Schroeder

William Magnarelli

multi-Sponsors

Nancy Calhoun

Aileen Gunther

Stephen Hawley

Earlene Hooper

2009-A5960A (ACTIVE) - Details

2009-A5960A (ACTIVE) - Summary

2009-A5960A (ACTIVE) - Sponsor Memo

2009-A5960A (ACTIVE) - Bill Text download pdf

Comments