senate Bill S4920A

2013-2014 Legislative Session

Eliminates the sales tax on transportation services; repealer

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Archive: Last Bill Status - Passed Senate


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

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Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 16, 2014 referred to ways and means
delivered to assembly
passed senate
Jun 09, 2014 advanced to third reading
Jun 03, 2014 2nd report cal.
Jun 02, 2014 1st report cal.1073
May 13, 2014 reported and committed to finance
Jan 08, 2014 referred to investigations and government operations
Oct 09, 2013 print number 4920a
amend and recommit to finance
May 30, 2013 reported and committed to finance
May 01, 2013 referred to investigations and government operations

Votes

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Jun 2, 2014 - Finance committee Vote

S4920A
33
1
committee
33
Aye
1
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Finance committee vote details

May 13, 2014 - Investigations and Government Operations committee Vote

S4920A
7
1
committee
7
Aye
1
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: May 13, 2014

nay (1)
aye wr (1)

May 30, 2013 - Investigations and Government Operations committee Vote

S4920
6
0
committee
6
Aye
0
Nay
2
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show committee vote details

Committee Vote: May 30, 2013

aye wr (2)
excused (1)

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S4920 - Bill Details

See Assembly Version of this Bill:
A8751
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §1101 sub (b) ¶34, §1105 sub (c) ¶10, §1106 sub (l), §1111 sub (o), amd §1213, Tax L

S4920 - Bill Texts

view summary

Eliminates the sales tax on transportation services.

view sponsor memo
BILL NUMBER:S4920

TITLE OF BILL: An act to amend the tax law, in relation to
eliminating sales tax on transportation services; and to repeal
certain provisions of such law relating thereto

PURPOSE: The purpose of this bill is to repeal the sales tax and
related expenses charged on certain transportation services.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 repeals: paragraph 34 of subdivision (b) of section 1101 of
the tax law; paragraph 10 of subdivision (c) of section 1105 of the
tax law; subdivision (1)of section 1106 of the tax law; subdivision
(o) of section 111 of the tax law.

Further Section 1213 of the tax law amends current law to exclude
certain transportation services from collecting sales tax on the
services provided.

Finally, Section 1 provides the effective date.

JUSTIFICATION: In 2009 a hidden sales tax was imposed on the livery
industry. This new tax was specifically aimed at services for sedans,
vans, SUV's and limos; leaving public transportation, taxi's, and
buses untaxed. This new responsibility caught the entire industry off
guard, and creates an unfair disadvantage to the industry when
purchasing tangible property.

This legislation would repeal several provisions that exist in current
law in order to equalize the tax burden for the transportation
industry. This legislation will provide a much needed tax relief to
small businesses, as well as help to offset the rising costs that the
livery industry faces.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to the quarterly period, as described in subdivision (b) of
section 1136 of the tax law, next commencing September 1, 2014 and
shall apply in accordance with the applicable transitional provisions
in sections 1106 and 1217 of the tax law.

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

                                  4920

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 1, 2013
                               ___________

Introduced  by Sen. GRISANTI -- 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  eliminating  sales  tax  on
  transportation  services; and to repeal certain provisions of such law
  relating thereto

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

  Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is
REPEALED.
  S 3. Subdivision (1) of section 1106 of the tax law is REPEALED.
  S 4. Subdivision (o) of section 1111 of the tax law is REPEALED.
  S 5. Section 1213 of the tax law, as amended by section 2 of  part  WW
of chapter 57 of the laws of 2010, is amended to read as follows:
  S  1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal  property  or  services,  including  prepaid
telephone  calling  services, but not including other services described
in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
including  an  agreement therefor, is made in any city, county or school
district, but the property sold, the property upon  which  the  services
were  performed or prepaid telephone calling or other service is or will
be delivered to the purchaser elsewhere, such sale shall not be  subject
to  tax  by  such  city, county or school district. However, if delivery
occurs or will occur in a city, county or school district imposing a tax
on the sale or use of such property, prepaid telephone calling or  other
services, the vendor shall be required to collect from the purchaser, as
provided  in  section  twelve  hundred  fifty-four  of this article, the
aggregate sales or compensating use taxes imposed by the city,  if  any,
county  and  school district in which delivery occurs or will occur, for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09929-01-3

S. 4920                             2

distribution by the commissioner to such taxing jurisdiction  or  juris-
dictions.  For  the purposes of this section delivery shall be deemed to
include transfer of possession to the purchaser and the receiving of the
property or of the service, including prepaid telephone calling service,
by the purchaser. [Notwithstanding the foregoing, where a transportation
service  described in paragraph ten of subdivision (c) of section eleven
hundred five of this chapter begins in  one  jurisdiction  but  ends  in
another  jurisdiction, any tax imposed pursuant to the authority of this
article shall be due the jurisdiction or jurisdictions where the service
commenced.]
  S 6. This act shall take effect immediately and  shall  apply  to  the
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing September 1, 2014 and shall apply in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

Co-Sponsors

view additional co-sponsors

S4920A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8751
Current Committee:
Law Section:
Tax Law
Laws Affected:
Rpld §1101 sub (b) ¶34, §1105 sub (c) ¶10, §1106 sub (l), §1111 sub (o), amd §1213, Tax L

S4920A (ACTIVE) - Bill Texts

view summary

Eliminates the sales tax on transportation services.

view sponsor memo
BILL NUMBER:S4920A REVISED 11/21/13

TITLE OF BILL: An act to amend the tax law, in relation to eliminating
sales tax on transportation services; and to repeal certain provisions
of such law relating thereto

PURPOSE: The purpose of this bill is to repeal the sales tax and
related expenses charged on certain transportation services.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 repeals: paragraph 34 of subdivision (b) of section 1101 of
the tax law; paragraph 10 of subdivision (c) of section 1105 of the tax
law; subdivision (1) of section 1106 of the tax law; subdivision (o) of
section 111 of the tax law.

Further Section 1213 of the tax law amends current law to exclude
certain transportation services from collecting sales tax on the
services provided.

Finally, Section 1 provides the effective date.

JUSTIFICATION: In 2009 a hidden sales tax was imposed on the livery
industry. This new tax was specifically aimed at services for sedans,
vans, SUV's and limos; leaving public transportation, taxi's, and buses
untaxed. This new responsibility caught the entire industry off guard,
and creates an unfair disadvantage to the industry when purchasing
tangible property.

This legislation would repeal several provisions that exist in current
law in order to equalize the tax burden for the transportation industry.
This legislation will provide a much needed tax relief to small busi-
nesses, as well as help to offset the rising costs that the livery
industry faces.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: $32 million for the first fiscal year being split
between State and Local
$48 million each year thereafter split between State and Local.

EFFECTIVE DATE: This act shall take effect immediately and shall apply
to the quarterly period, as described in subdivision (b) of section 1136
of the tax law, next commencing September 1, 2015 and shall apply in
accordance with the applicable transitional provisions in sections 1106
and 1217 of the tax law.

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

                                 4920--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 1, 2013
                               ___________

Introduced  by  Sens.  GRISANTI, GOLDEN, LANZA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations  --  reported  favorably  from  said
  committee  and  committed  to  the  Committee  on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law, in relation to  eliminating  sales  tax  on
  transportation  services; and to repeal certain provisions of such law
  relating thereto

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

  Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is
REPEALED.
  S 3. Subdivision (1) of section 1106 of the tax law is REPEALED.
  S 4. Subdivision (o) of section 1111 of the tax law is REPEALED.
  S 5. Section 1213 of the tax law, as amended by section 2 of  part  WW
of chapter 57 of the laws of 2010, is amended to read as follows:
  S  1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal  property  or  services,  including  prepaid
telephone  calling  services, but not including other services described
in subdivision (b) of section  eleven  hundred  five  of  this  chapter,
including  an  agreement therefor, is made in any city, county or school
district, but the property sold, the property upon  which  the  services
were  performed or prepaid telephone calling or other service is or will
be delivered to the purchaser elsewhere, such sale shall not be  subject
to  tax  by  such  city, county or school district. However, if delivery
occurs or will occur in a city, county or school district imposing a tax
on the sale or use of such property, prepaid telephone calling or  other
services, the vendor shall be required to collect from the purchaser, as

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09929-02-3

S. 4920--A                          2

provided  in  section  twelve  hundred  fifty-four  of this article, the
aggregate sales or compensating use taxes imposed by the city,  if  any,
county  and  school district in which delivery occurs or will occur, for
distribution  by  the commissioner to such taxing jurisdiction or juris-
dictions. For the purposes of this section delivery shall be  deemed  to
include transfer of possession to the purchaser and the receiving of the
property or of the service, including prepaid telephone calling service,
by the purchaser. [Notwithstanding the foregoing, where a transportation
service  described in paragraph ten of subdivision (c) of section eleven
hundred five of this chapter begins in  one  jurisdiction  but  ends  in
another  jurisdiction, any tax imposed pursuant to the authority of this
article shall be due the jurisdiction or jurisdictions where the service
commenced.]
  S 6. This act shall take effect immediately and  shall  apply  to  the
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing September 1, 2015 and shall apply in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.

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