S T A T E O F N E W Y O R K
________________________________________________________________________
7406
2011-2012 Regular Sessions
I N A S S E M B L Y
May 4, 2011
___________
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 CLASS BASED ON PASSENGER AND CARGO VOLUME;
(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.
LBD10673-01-1
A. 7406 2
S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law,
as amended by section 3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(1) 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. [(i)] 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) or subdivision (d) of section eleven hundred nineteen of this
chapter. [(ii)] 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) [and], the clothing and foot-
wear exemption provided for in paragraph thirty of subdivision (a) AND
THE FUEL-EFFICIENT VEHICLES, ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHI-
CLES OR ALTERNATIVE-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 FUEL-EFFICIENT VEHICLES,
ZERO-EMISSION VEHICLES, FLEXIBLE-FUEL VEHICLES OR ALTERNATIVE-FUEL VEHI-
CLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FOUR 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
A. 7406 3
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.
(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 2011) 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
(ss) to read as follows:
(SS) 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
29 to read as follows:
29. 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, 2012.