senate Bill S3669A

2013-2014 Legislative Session

Relates to the collection of sales tax on abstracts of title and other public records searches

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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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 23, 2014 print number 3669a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
May 21, 2013 reported and committed to finance
Feb 11, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S3669 - Bill Details

See Assembly Version of this Bill:
A7193A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §1105, Tax L

S3669 - Bill Texts

view summary

Relates to the collection of sales tax on abstracts of title and other public records searches.

view sponsor memo
BILL NUMBER:S3669

TITLE OF BILL: An act to amend the tax law, in relation to the
collection of sales tax on abstracts of title and other public records
searches

PURPOSE OR GENERAL IDEA OF BILL: To relieve title insurance providers
and agents from the expense, burden and complexities associated with
collecting sales tax on information services that have been historically
exempt from sales tax.

SUMMARY OF SPECIFIC PROVISIONS: Section one amends paragraph one of
subdivision c of section 1105 of the tax law by excluding information
services such as abstracts of title, tax searches, searches for munici-
pal records for violations, certificates of title and lien searches from
sales tax.

Section two sets the effective date.

JUSTIFICATION: Due to the severe downturn in the real estate sector of
the economy, the title insurance industry has suffered particularly hard
and the slow recovery of the real estate market has forced many agents
with depleted reserves to lay off employees or close their doors. The
loss of these small businesses further prolongs the overall economic
recovery.

Despite having been historically exempt from sales tax for their
services, certain portions of title company services became subject to
taxation in 2002.

Unfortunately, due to the variety of services and transactions; the
identification of the end user of the services (from whom the tax should
collected); the location of the closing (which affects tax rate and may
not be known or change with little notice); or whether the transaction
closes at all (in which case the "end user" is the title agency itself,
liable for sales tax on unpaid work product destined for the shredder),
and other complexities particular to a transaction, the proper implemen-
tation of this law has been exceedingly difficult. And reliable, sound
and consistent advice on the matter has been nearly impossible to
obtain.

All of this has been further compounded by the additional procedural,
bookkeeping and accounting costs and time necessary for implementation
of this convoluted system. At a time when New York State has finally
undertaken efforts to attract and retain businesses here, this recently
enacted tax is inappropriate and should be eliminated.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: This act shall take effect April 1st, 2013.

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

                                  3669

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the collection of sales  tax
  on abstracts of title and other public records searches

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subdivision (c) of section 1105 of  the  tax
law,  as  amended by chapter 583 of the laws of 2011, is amended to read
as follows:
  (1) The furnishing of information by printed, mimeographed  or  multi-
graphed  matter or by duplicating written or printed matter in any other
manner, including the services of  collecting,  compiling  or  analyzing
information  of  any  kind  or  nature and furnishing reports thereof to
other persons, but excluding the  furnishing  of  information  which  is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the  services of advertising or other agents, or other persons acting in
a representative capacity, and information services used by  newspapers,
electronic news services, radio broadcasters and television broadcasters
in  the collection and dissemination of news, and excluding meteorologi-
cal services, AND EXCLUDING ABSTRACTS OF TITLE AND OTHER PUBLIC  RECORDS
SEARCHES  SUCH  AS  TAX  SEARCHES,  SEARCHES  FOR  MUNICIPAL RECORDS FOR
VIOLATIONS, CERTIFIED OR NONCERTIFIED COPIES OBTAINED  FROM  THE  PUBLIC
RECORD,  CERTIFICATES  OF  TITLE AND LIEN SEARCHES, CERTIFICATES OF GOOD
STANDING AND FRANCHISE  TAX  SEARCHES,  COOPERATIVE  UNIT  SEARCHES  AND
ZONING LOT PARTIES-IN-INTEREST CERTIFICATIONS.
  S 2. This act shall take effect April 1, 2013.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08825-01-3

S3669A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7193A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §1105, Tax L

S3669A (ACTIVE) - Bill Texts

view summary

Relates to the collection of sales tax on abstracts of title and other public records searches.

view sponsor memo
BILL NUMBER:S3669A

TITLE OF BILL: An act to amend the tax law, in relation to the
collection of sales tax on abstracts of title and other public records
searches

PURPOSE OR GENERAL IDEA OF BILL:

To relieve title insurance providers and agents from the expense,
burden and complexities associated with collecting sales tax on
information services that have been historically exempt from sales
tax.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends paragraph one of subdivision c of section 1105 of
the tax law by excluding information services such as abstracts of
title, tax searches, searches for municipal records for violations,
certificates of title and lien searches from sales tax.

Section two sets the effective date.

JUSTIFICATION:

Due to the severe downturn in the real estate sector of the economy,
the title insurance industry has suffered particularly hard and the
slow recovery of the real estate market has forced many agents with
depleted reserves to lay off employees or close their doors. The loss
of these small businesses further prolongs the overall economic
recovery.

Despite having been historically exempt from sales tax for their
services, certain portions of title company services became subject to
taxation in 2002.

Unfortunately, due to the variety of services and transactions; the
identification of the end user of the services (from whom the tax
should collected); the location of the closing (which affects tax rate
and may not be known or change with little notice); or whether the
transaction closes at all (in which case the "end user" is the title
agency itself, liable for sales tax on unpaid work product destined
for the shredder), and other complexities particular to a transaction,
the proper implementation of this law has been exceedingly difficult.
And reliable, sound and consistent advice on the matter has been
nearly impossible to obtain.

All of this has been further compounded by the additional procedural,
bookkeeping and accounting costs and time necessary for implementation
of this convoluted system.

At a time when New York State has finally undertaken efforts to
attract and retain businesses here, this recently enacted tax is
inappropriate and should be eliminated.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.


FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

This act shall take effect April 1, 2014.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3669--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to the collection of sales tax
  on abstracts of title and other public records searches

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph 1 of subdivision (c) of section 1105 of the tax
law, as amended by chapter 583 of the laws of 2011, is amended  to  read
as follows:
  (1)  The  furnishing of information by printed, mimeographed or multi-
graphed matter or by duplicating written or printed matter in any  other
manner,  including  the  services  of collecting, compiling or analyzing
information of any kind or nature  and  furnishing  reports  thereof  to
other  persons,  but  excluding  the  furnishing of information which is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the services of advertising or other agents, or other persons acting  in
a  representative capacity, and information services used by newspapers,
electronic news services, radio broadcasters and television broadcasters
in the collection and dissemination of news, and excluding  meteorologi-
cal  services, AND EXCLUDING ABSTRACTS OF TITLE AND OTHER PUBLIC RECORDS
SEARCHES SUCH AS  TAX  SEARCHES,  SEARCHES  FOR  MUNICIPAL  RECORDS  FOR
VIOLATIONS,  CERTIFIED  OR  NONCERTIFIED COPIES OBTAINED FROM THE PUBLIC
RECORD, CERTIFICATES OF TITLE AND LIEN SEARCHES,  CERTIFICATES  OF  GOOD
STANDING  AND  FRANCHISE  TAX  SEARCHES,  COOPERATIVE  UNIT SEARCHES AND
ZONING LOT PARTIES-IN-INTEREST CERTIFICATIONS.
  S 2. This act shall take effect April 1, 2014.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08825-02-4

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