senate Bill S2678

2011-2012 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 Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (15)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
May 30, 2012 advanced to third reading
May 23, 2012 2nd report cal.
May 22, 2012 1st report cal.881
May 02, 2012 reported and committed to finance
Jan 04, 2012 referred to investigations and government operations
returned to senate
died in assembly
Jun 23, 2011 referred to ways and means
delivered to assembly
passed senate
Jun 13, 2011 ordered to third reading cal.1187
reported and committed to rules
Jun 02, 2011 reported and committed to finance
Jan 28, 2011 referred to investigations and government operations

Votes

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May 22, 2012 - Finance committee Vote

S2678
26
8
committee
26
Aye
8
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Finance committee vote details

May 2, 2012 - Investigations and Government Operations committee Vote

S2678
5
3
committee
5
Aye
3
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: May 2, 2012

Jun 14, 2011 - Finance committee Vote

S2678
24
5
committee
24
Aye
5
Nay
5
Aye with Reservations
1
Absent
0
Excused
0
Abstained
show Finance committee vote details

Jun 14, 2011 - Rules committee Vote

S2678
20
3
committee
20
Aye
3
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Jun 2, 2011 - Investigations and Government Operations committee Vote

S2678
6
0
committee
6
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Jun 2, 2011

aye wr (2)

Co-Sponsors

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S2678 - Bill Details

See Assembly Version of this Bill:
A4818
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd §1115, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S4551, A5960A

S2678 - Bill Texts

view summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft.

view sponsor memo
BILL NUMBER:S2678

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

SUMMARY OF 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 1his
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---demonstrates 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 timber 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.

LEGISLATIVE HISTORY:
2007-2008: S.425-B
2009-2010: S.4551-A

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, property
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.

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

                                  2678

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced  by  Sens.  LARKIN,  ALESI,  BONACIC,  DeFRANCISCO, FLANAGAN,
  FUSCHILLO, GRISANTI, JOHNSON, KENNEDY, LITTLE, NOZZOLIO -- read  twice
  and ordered printed, and when printed to be committed to the Committee
  on Investigations and Government Operations

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
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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08235-01-1

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