senate Bill S7382

2013-2014 Legislative Session

Relates to the meaning of the term "equipment" for purposes of department of taxation and finance audit or enforcement proceedings

download bill text pdf

Sponsored By

Archive: Last Bill Status - Vetoed by Governor


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

do you support this bill?

Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2014 vetoed memo.567
Dec 05, 2014 delivered to governor
Jun 19, 2014 returned to senate
passed assembly
ordered to third reading rules cal.572
substituted for a10059
Jun 17, 2014 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1476
committee discharged and committed to rules
May 14, 2014 referred to investigations and government operations

Votes

view votes

S7382 - Bill Details

See Assembly Version of this Bill:
A10059
Law Section:
Taxation

S7382 - Bill Texts

view summary

Relates to the meaning of the term "equipment" for purposes of department of taxation and finance audit or enforcement proceedings.

view sponsor memo
BILL NUMBER:S7382

TITLE OF BILL: An act in relation to the meaning of the term "equip-
ment" for purposes of department of taxation and finance audit or
enforcement proceedings

PURPOSE:

This legislation would codify a holding of a Division of Tax Appeals
decision to ensure fair and consistent tax treatment of certain equip-
ment purchases by Qualified Empire Zone Enterprises (QEZE).

SUMMARY OF SPECIFIC PROVISIONS:

Section one defines personal tangible property subject to this legis-
lation.

Section two defines a term relevant to Empire Zone tax exemption eligi-
bility determinations.

Section three creates a mechanism for businesses to enforce their rights
afforded by this bill.

JUSTIFICATION:

The purpose of the Empire Zone Program was to increase economic activity
in high unemployment and high poverty areas. This legislation supports
this objective by preserving contractual agreements entered into by a
QEZE in reliance upon promises by the state that equipment, purchased
and then used at an Empire Zone location, would qualify for the Empire
Zone sales tax exemption. Preserving these contracts will protect the
value of New York businesses' property and investments, and provide
clarity to these businesses in their work to comply with the Tax Law.

This bill follows a Division of Tax Appeals decision that held, for the
purpose of Empire Zone tax exemption determinations, that the process of
having inventoried, organized, stored and distributed property by a QEZE
from its Empire Zone location would qualify a QEZE for a sales tax
exemption for purchases. See Eastern Paramedics, Inc., DTA Nos. 822836
and 822837 (N.Y. Div. Tax App. Sept. 10, 2010).

LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

It is not anticipated that there will be any fiscal impact in regard to
tax revenues collected from QEZE approved businesses, as such revenues
have not been collected as they are subject to ongoing litigation.

EFFECTIVE DATE:

This act shall take effect immediately, be deemed to have been in effect
as of March 1, 2001, and apply to any Department of Taxation and Finance
matter commencing on or after March 1, 2001.

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

                                  7382

                            I N  S E N A T E

                              May 14, 2014
                               ___________

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

AN ACT in relation to the meaning of the term "equipment"  for  purposes
  of department of taxation and finance audit or enforcement proceedings

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

  Section 1. For the purposes of this act, the  term  "equipment"  shall
mean a machine or system, and any part or subassembly thereof.
  S  2. Equipment shall be considered to be "directly and predominantly"
used, as such term is used in clause (i) of paragraph 1  of  subdivision
(z)  of  section  1115 of the tax law, as repealed by section 30 of part
S-1 of chapter 57 of the laws of 2009 and last amended by section 17  of
part  CC  of  chapter  85  of  the laws of 2002, for the purposes of any
department of taxation and finance audit or enforcement  proceeding,  or
any  other  administrative  matter  or  proceeding  of  such department,
involving the interpretation, enforcement,  or  administration  of  such
provision  of the tax law, when such equipment was received, inventoried
or organized, and then prepared  for  distribution  at  an  empire  zone
location  by  the  qualified  empire  zone  enterprise operating at such
location, provided that such equipment, upon distribution,  is  stocked,
repaired, cleaned or otherwise handled for the purpose of maintenance or
upkeep  by  employees  of  such  qualified  empire zone enterprise whose
duties related to such service work originate from,  and  terminate  at,
the same empire zone location.
  S  3.  Notwithstanding sections 2006, 2012, 2014, 2016 and 2018 of the
tax law, part 3000 of the tax appeals tribunal  rules  of  practice  and
procedure,  or  any  determination  of  the division of tax appeals, the
division of tax appeals shall accept a petition from any person or enti-
ty that contests a determination or decision  of  the  division  of  tax
appeals related to the interpretation of the term "directly and predomi-
nantly",  as  such term is used in the section of the tax law referenced
in section two of this act, provided that such original determination or
decision of the division of tax appeals was contrary to  the  definition

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15187-01-4

S. 7382                             2

of  such term as established by section two of this act. The division of
tax appeals shall process and review, provide  for  a  hearing  of,  and
render  a determination and decision in response to any such petition in
accordance  with  the  process set forth in part 3000 of the tax appeals
tribunal rules of practice and procedure. Any determination or  decision
issued  by the division of tax appeals pursuant to this act shall super-
sede any inconsistent determination or decision,  be  deemed  conclusive
upon all parties and shall not be subject to review by any other unit in
the division of tax appeals, by the tax appeals tribunal or by any court
of the state.
  S  4.  This act shall take effect immediately, shall be deemed to have
been in full force and effect on and after  March  1,  2001,  and  shall
apply  to any audit or enforcement proceeding of the department of taxa-
tion and finance, or any other administrative matter  or  proceeding  of
such department, commencing on or after March 1, 2001.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.