Assembly Bill A1773

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

                                  1773

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2009
                               ___________

Introduced  by M. of A. MORELLE -- Multi-Sponsored by -- M. of A. CANES-
  TRARI, CHRISTENSEN, DESTITO, GUNTHER, MAGEE, SCHIMMINGER -- read  once
  and referred to the Committee on Ways and Means

AN  ACT  to amend the tax law, in relation to facilitating manufacturing
  in this state by eliminating  sales  and  use  tax  on  certain  costs
  related to such business

  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 12-c to read as follows:
  (12-C)  COMPUTERS  AND SOFTWARE LOCATED WITHIN A FACILITY THAT IS USED
PREDOMINANTLY IN THE PRODUCTION OF TANGIBLE PERSONAL PROPERTY  FOR  SALE
BY  MANUFACTURING,  PROCESSING, GENERATING, ASSEMBLING, REFINING, MINING
OR EXTRACTING SHALL BE EXEMPT FROM THE TAXES IMPOSED  UNDER  SUBDIVISION
(A)  OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND THE COMPENSATING
USE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE.
  S 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
adding a new paragraph 10-a to read as follows:
  (10-A)  COMPUTERS  AND SOFTWARE LOCATED WITHIN A FACILITY THAT IS USED
PREDOMINANTLY IN RESEARCH AND DEVELOPMENT IN THE EXPERIMENTAL OR LABORA-
TORY SENSE SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISION  (A)
OF  SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND THE COMPENSATING USE
TAX IMPOSED UNDER SECTION ELEVEN  HUNDRED  TEN  OF  THIS  ARTICLE.  SUCH
RESEARCH  AND  DEVELOPMENT  SHALL  NOT BE DEEMED TO INCLUDE THE ORDINARY
TESTING OR INSPECTION OF MATERIALS  OR  PRODUCTS  FOR  QUALITY  CONTROL,
EFFICIENCY  SURVEYS,  MANAGEMENT STUDIES, CONSUMER SURVEYS, ADVERTISING,
PROMOTIONS OR RESEARCH IN CONNECTION WITH LITERARY, HISTORICAL OR  SIMI-
LAR PROJECTS.
  S  3.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04130-01-9

              

A. 1773                             2

  (44) SHARPENING DRILLS, END MILLS, MILLING CUTTERS OR ANY  OTHER  TYPE
OF TOOLING THAT IS RECONDITIONED AS A SERVICE.
  S 4. Paragraph 1 of subdivision (c) of section 1115 of the tax law, as
amended  by  section  7  of part B of chapter 63 of the laws of 2000, is
amended to read as follows:
  (1) Fuel, gas, electricity, refrigeration and steam,  and  gas,  elec-
tric,  refrigeration  and  steam  service  of whatever nature for use or
consumption directly and  exclusively  in  the  production  of  tangible
personal  property,  gas, electricity, refrigeration or steam, for sale,
by manufacturing, processing, assembling, generating,  refining,  mining
or extracting [shall be exempt from the taxes imposed under subdivisions
(a)  and (b) of section eleven hundred five and the compensating use tax
imposed under section eleven hundred ten  of  this  article],  SHALL  BE
EXEMPT  FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF SECTION
ELEVEN HUNDRED FIVE OF THIS ARTICLE AND THE COMPENSATING USE TAX IMPOSED
UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE. THIS  EXEMPTION  SHALL
ALSO  INCLUDE  ALL ENERGY COSTS RELATED TO MAINTAINING (I) THE LIGHTING,
HEATING, VENTILATION AND COOLING AT A FACILITY THAT IS USED PREDOMINANT-
LY FOR  MANUFACTURING,  PROCESSING,  ASSEMBLING,  GENERATING,  REFINING,
MINING,  EXTRACTING,  FARMING, AGRICULTURE, HORTICULTURE OR FLORICULTURE
AND (II) THE LIGHTING, HEATING, VENTILATION AND COOLING  AT  A  FACILITY
THAT  IS  USED  PREDOMINANTLY  IN RESEARCH AND DEVELOPMENT IN THE EXPER-
IMENTAL OR LABORATORY SENSE WITHIN  THE  MEANING  OF  PARAGRAPH  TEN  OF
SUBDIVISION (A) OF THIS SECTION.
  S  5.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (gg) to read as follows:
  (GG) DISPLAYS USED IN ANY "SHOW" BY A "SHOW VENDOR" AS SUCH TERMS  ARE
DEFINED  IN  SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS ARTICLE WHEN THEY
ARE NOT DISPLAYED WITHIN THE STATE BUT  ARE  MERELY  STORED  WITHIN  THE
STATE  BETWEEN  SHOWS  FOR  USE EXCLUSIVELY OUT-OF-STATE SHALL BE EXEMPT
FROM TAX UNDER THIS ARTICLE.
  S 6. This act shall take effect immediately but  shall  not  apply  to
transactions  occurring  during the sales and compensating use tax quar-
ter-year in which this act shall have become a law or  any  quarter-year
prior thereto.