Senate Bill S3281A

                                BILL NUMBER:S3281

TITLE  OF BILL:   An act to amend the tax law, in relation to granting
sales  and  compensating  use  tax  exemptions  for  certain  tangible
personal  property  and services used in the operation of recreational
skiing facilities

PURPOSE:  This legislation, if enacted, would amend  section  1115  of
the  Tax  Law  to  state  the purchase of energy efficient snow making
equipment, ski  lift  equipment,  snow  grooming  equipment,  and  the
production  of snow by a recreational ski facility are exempt from the
New York State sales and compensating use tax.

SUMMARY OF PROVISIONS:

Section 1 - Amends subdivision (a) of section 1115 of the tax  law  by
adding  paragraph  (44)  to  exempt  the  production  of  snow, uphill
transportation of skiers. and/or the grooming and maintenance of  snow
from sales and compensating use tax.

Section  2  -  Amends  section  1115  of  the  tax law by adding a new
subdivision (ii) to exempt the production  of  snow  as  well  as  the
equipment  to  transport  skiers  uphill  and  to  groom  snow  by any
recreational ski area from sales and compensating use tax.

Section 3 - Contains the effective Date.
              

JUSTIFICATION:  New York State ranks fifth  in  the  nation  in  skier
visits  per year despite the fact that the state is the second highest
when compared to the percentage of their  population  that  skis.  New
York  State currently exports a number of skiers and their families to
the New England states.  In  order  to  remain  competitive  with  our
neighbors  to the east which aggressively campaigns for our skiers and
those whom visit New York, this state needs to upgrade  equipment  and
maintain  state  of  the  art snowmaking systems, and this legislation
will greatly  assist  them  in  the  purchase  of  new  equipment  and
upgrading of snowmaking systems.

The  ski industry employs over 10,000 New York State residents serving
on average 4 million skier visits per year with an economic impact  of
over  $1  billion. With over 40 ski areas, New York State has more ski
areas than any other state with over S4.8 million in  sales  tax  paid
each year. Local property taxes paid amount to over S3.5 million. Snow
making  is  critical  to  the  ski  industry and this legislation will
provide energy tax relief, which is one of the highest expenses  faced
each winter season.

The  three state owned ski areas in New York State are exempt from the
state sales tax while privately owned ski  areas  are  not.  This  has
created  an  unfair business environment for these privately owned ski
areas, many of which are located in upstate New York. This bill  would
provide  that all ski areas that purchase energy efficient snow making
equipment and make snow shall be exempt from this tax. The fuel,  gas,
electricity,  and  refrigeration, and gas, electric, and refrigeration
services used directly for the production of snow would now be  exempt
from  the  state sales tax as will the energy efficient equipment. The


manufacture of snow is not eligible for  a  tax  exemption  under  the
definition  of  manufacturing  because  snow is not sold as a product.
The climate and business environment has changed such that  ski  areas
must make snow to remain viable in this industry.

This  legislation  would  eliminate  the  sales tax on the purchase of
qualifying energy efficient lift and  grooming  equipment.  New  safer
equipment to transport skiers has become available that will move more
people  with  less energy and manpower required. Grooming equipment is
powered by diesel fuel, and advancements in such technology  has  made
the  newer machines much more energy efficient with less emissions and
more horsepower. Wisconsin, Minnesota, Utah and Colorado have  enacted
similar  laws  that  apply  not  only  to  the  purchase of new energy
efficient equipment but also for  the  use  and  compensating  tax  on
snowmaking energy.

LEGISLATIVE  HISTORY:   2011-12 S.6266 Passed Senate; A. 9991 Referred
to   Ways   &   Means   2009-10:   S.836   Referred   to   Energy    &
Telecommunications; A. 519 Referred to Ways & Means 2008: S.2343-A; A.
5392-A Ways &s. Means 2007: S.2343 Passed Senate; A. 5392 Ways & Means
2005-06: S.720 Passed Senate; A. 7995 Ways & Means

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE  DATE:  This act shall take effect on the first of July next
succeeding the date on which it shall have become a law.