S T A T E O F N E W Y O R K
________________________________________________________________________
7994
2009-2010 Regular Sessions
I N A S S E M B L Y
May 1, 2009
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to the exemption from sales and
compensating use tax for certain fuel sources used to produce elec-
tricity
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (e) of section 1102 of the tax law is relet-
tered subdivision (f) and a new subdivision (e) is added to read as
follows:
(E) "COMBINED CYCLE ELECTRIC GENERATING FACILITY" SHALL MEAN A NON-U-
TILITY, MERCHANT ELECTRIC GENERATING FACILITY UTILIZING NATURAL GAS,
ULTRA LOW SULFUR DIESEL FUEL AND STEAM IN THE PRODUCTION OF ELECTRICITY
AND WHICH, ON THE EFFECTIVE DATE OF THIS SUBDIVISION IS:
(I) LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR MORE;
(II) OPERATING UNDER A CERTIFICATE GRANTED BY THE PUBLIC SERVICE
DEPARTMENT PURSUANT TO THE AUTHORITY OF ARTICLE TEN OF THE PUBLIC
SERVICE LAW AS FORMERLY IN EFFECT ON THE DATE SUCH CERTIFICATE WAS
GRANTED;
(III) IS CURRENTLY CAPABLE OF PRODUCING AT LEAST FIVE HUNDRED MEGA-
WATTS OF ELECTRICITY; AND
(IV) HAS, ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION: (1)
COMMITTED TO CONSTRUCT A SECOND PHASE FOR THE PRODUCTION OF ELECTRICITY
BY MEANS OF A NATURAL GAS FIRED, COMBINED CYCLE FIVE HUNDRED MEGAWATT
ELECTRIC GENERATING UNIT, SUPPLEMENTAL TO THE ABOVE MENTIONED EXISTING
FIVE HUNDRED MEGAWATT UNIT AND ON THE SAME SITE, AS A "MERCHANT" FACILI-
TY WITHOUT A POWER PURCHASE AGREEMENT IN ORDER TO COMMENCE CONSTRUCTION,
AND (2) HAS ISSUED TO ITS CONSTRUCTION CONTRACTOR A "FULL NOTICE TO
PROCEED" WITH CONSTRUCTION OF SAID SECOND PHASE ON OR BEFORE JUNE THIR-
TIETH, TWO THOUSAND ELEVEN.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11489-01-9
A. 7994 2
S 2. Clause 1 of subdivision (b) of section 1107 of the tax law, as
amended by chapter 472 of the laws of 2000, is amended to read as
follows:
(1) The exemptions provided for in subdivision (c) of section eleven
hundred fifteen shall not apply to fuel, gas, electricity, refrigeration
and steam, and gas, electric, refrigeration and steam service of whatev-
er nature for use or consumption directly and exclusively in the
production of gas, electricity, refrigeration or steam, EXCEPT THAT THE
EXEMPTIONS PROVIDED FOR IN SUCH SUBDIVISION (C) SHALL APPLY TO NATURAL
GAS, ULTRA LOW SULFUR DIESEL FUEL AND STEAM USED OR CONSUMED DIRECTLY
AND EXCLUSIVELY IN THE PRODUCTION OF ELECTRICITY IN A COMBINED CYCLE
ELECTRIC GENERATING FACILITY.
S 3. Paragraph 4 of subdivision (a) of section 1210 of the tax law, as
amended by section 35 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(4) Notwithstanding any other provision of law to the contrary, any
local law enacted by any city of one million or more that imposes the
taxes authorized by this subdivision (i) may omit the exception provided
in subparagraph (ii) of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from laundering, dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate prescribed by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the tax described
in paragraph six of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city
or an agency or instrumentality of the city or a public corporation the
majority of whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both of them; (iv)
shall not include any tax on receipts from, or the use of, the services
described in paragraph seven of subdivision (c) of section eleven
hundred five of this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred five of
this chapter, "permanent resident" means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive days with
regard to the period of such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section eleven hundred
five of this chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is to be a
participant, such as bowling alleys and swimming pools; (vii) shall not
provide the clothing and footwear exemption in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter but
must exempt clothing and footwear and any item used or consumed to make
or repair exempt clothing and which becomes a physical component part of
that exempt clothing; (viii) shall omit the exemption provided in para-
graph forty-one of subdivision (a) of section eleven hundred fifteen of
this chapter; (ix) shall omit the exemption provided in subdivision (c)
of section eleven hundred fifteen of this chapter insofar as it applies
to fuel, gas, electricity, refrigeration and steam, and gas, electric,
refrigeration and steam service of whatever nature for use or consump-
tion directly and exclusively in the production of gas, electricity,
refrigeration or steam, EXCEPT THAT THE EXEMPTION PROVIDED FOR IN SUCH
SUBDIVISION (C) SHALL APPLY TO NATURAL GAS, ULTRA LOW SULFUR DIESEL FUEL
AND STEAM USED OR CONSUMED DIRECTLY AND EXCLUSIVELY IN THE PRODUCTION OF
ELECTRICITY IN A COMBINED CYCLE ELECTRIC GENERATING FACILITY; and (x)
A. 7994 3
shall omit, unless such city elects otherwise, the provision for refund
or credit contained in clause six of subdivision (a) or in subdivision
(d) of section eleven hundred nineteen of this chapter.
S 4. Paragraph 2 of subdivision (b) of section 1210 of the tax law, as
amended by section 36 of part Y of chapter 63 of the laws of 2000, is
amended to read as follows:
(2) In respect to the taxes described in such subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter and in such
clauses (E), (G) and (H) of subdivision (a) of section eleven hundred
ten of this chapter and the transitional provisions in such section
eleven hundred six covering those taxes, all provisions of a local law
imposing any such tax, except as to rate and except as otherwise
provided herein, shall be identical with the corresponding provisions in
such article twenty-eight of this chapter, including the definition and
exemption provisions of such article, so far as the provisions of such
article twenty-eight of this chapter 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; provided, however, that any
local law enacted by any city of one million or more, imposing the taxes
authorized by this subdivision, shall omit the exemption provided in
subdivision (c) of section eleven hundred fifteen of this chapter,
EXCEPT THAT SUCH LOCAL LAW SHALL NOT OMIT THE EXEMPTION PROVIDED FOR IN
SUCH SUBDIVISION (C) INSOFAR AS IT APPLIES TO NATURAL GAS, ULTRA LOW
SULFUR DIESEL FUEL AND STEAM USED OR CONSUMED DIRECTLY AND EXCLUSIVELY
IN THE PRODUCTION OF ELECTRICITY IN A COMBINED CYCLE ELECTRIC GENERATING
FACILITY and may omit the exception provided in paragraph [(1)] ONE of
subdivision (f) of section eleven hundred five of this chapter for
charges to a patron for admission to, or use of, facilities for sporting
activities in which such patron is to be a participant, such as bowling
alleys and swimming pools. The transitional provisions contained in
subdivision (d) of section eleven hundred six of this chapter shall
apply in the same manner and to the same extent to a tax imposed by
omitting the exception in paragraph [(1)] ONE of subdivision (f) of
section eleven hundred five of this chapter, as described in the preced-
ing sentence, except that an equivalent date shall be substituted to
accord with the date when the tax so imposed becomes effective. The tax
described in any one of such subdivisions (b), (d), (e) and (f) of
section eleven hundred five of this chapter, including the related tran-
sitional provisions in such section eleven hundred six of this chapter,
and the taxes described in clauses (E), (G) and (H) of subdivision (a)
of section eleven hundred ten of this chapter where the tax described in
such subdivision (b) of section eleven hundred five of this chapter is
imposed, may not be imposed by a city or county unless the local law,
ordinance or resolution imposes such tax so as to include all portions
and all types of receipts, charges or rents, as the case may be, subject
to state tax under the applicable subdivision of section eleven hundred
five of this chapter and uses subject to tax under the applicable
provisions of section eleven hundred ten of this chapter where the tax
described in subdivision (b) of section eleven hundred five of this
chapter is imposed.
S 5. This act shall take effect August 1, 2010; provided that section
three of this act shall take effect on the same date and in the same
manner as section 35 of part S-1 of chapter 57 of the laws of 2009,
takes effect; and provided further that this act shall apply to sales
made after August 1, 2010 in accordance with the applicable transitional
provisions set forth in sections 1106, 1107 and 1217 of the tax law.