Assembly Bill A9128A

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

                                 9128--A

                          I N  A S S E M B L Y

                            January 29, 2016
                               ___________

Introduced by M. of A. JAFFEE -- read once and referred to the Committee
  on  Ways  and  Means  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to providing an  exemption  for
  geothermal heat pump systems equipment

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

  Section 1. Section 1115 of the tax law is  amended  by  adding  a  new
subdivision (ll) to read as follows:
  (LL) RECEIPTS FROM THE RETAIL SALE OF RESIDENTIAL GEOTHERMAL HEAT PUMP
SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
EXEMPT  FROM  TAX  UNDER THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION,
"RESIDENTIAL GEOTHERMAL  HEAT  PUMP  SYSTEM  EQUIPMENT"  SHALL  MEAN  AN
ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED IN AND AROUND A RESI-
DENTIAL BUILDING THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENER-
GY SOURCE OR AS A THERMAL ENERGY SINK DESIGNED TO PROVIDE AND DISTRIBUTE
HEATING,  AND/OR COOLING, AND/OR HOT WATER, ALSO COMMONLY REFERRED TO AS
GROUND SOURCE HEAT PUMP SYSTEMS. SUCH ARRANGEMENT  OR  COMPONENTS  SHALL
NOT  INCLUDE  ANY  SORT  OF RECREATIONAL FACILITY OR EQUIPMENT USED AS A
STORAGE MEDIUM.
  S 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
sion (mm) to read as follows:
  (MM)  RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL GEOTHERMAL HEAT PUMP
SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN  HUNDRED  FIVE  AND  ELEVEN
HUNDRED  TEN OF THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION, "COMMER-
CIAL GEOTHERMAL HEAT PUMP SYSTEM EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR
COMBINATION OF COMPONENTS INSTALLED IN AND AROUND A COMMERCIAL  BUILDING
THAT  USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE OR AS A
THERMAL ENERGY SINK DESIGNED TO PROVIDE AND DISTRIBUTE  HEATING,  AND/OR
COOLING,  AND/OR  HOT  WATER, ALSO COMMONLY REFERRED TO AS GROUND SOURCE
HEAT PUMP SYSTEMS. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE  ANY
SORT OF RECREATIONAL FACILITY OR EQUIPMENT USED AS A STORAGE MEDIUM.
  S 3.  Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
law,  as  amended  by  section 2 of part WW of chapter 60 of the laws of
2016, are amended to read as follows:

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13225-05-6

A. 9128--A                          2

  (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
and electricity exemption provided for in subdivision (ee), the  commer-
cial  solar  energy systems equipment and electricity exemption provided
for in subdivision (ii), the commercial fuel cell electricity generating
systems equipment and electricity generated by such equipment  exemption
provided  for  in subdivision (kk), THE RESIDENTIAL GEOTHERMAL HEAT PUMP
SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION
(LL), THE COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND  INSTAL-
LATION  EXEMPTION  PROVIDED FOR IN SUBDIVISION (MM) and the clothing and
footwear exemption provided for in paragraph thirty of  subdivision  (a)
of  section  eleven  hundred  fifteen of this chapter, unless such city,
county or school district elects otherwise as to such residential  solar
energy  systems  equipment  and  electricity  exemption, such commercial
solar energy systems equipment  and  electricity  exemption,  commercial
fuel  cell  electricity  generating  systems  equipment  and electricity
generated by such equipment exemption, SUCH RESIDENTIAL GEOTHERMAL  HEAT
PUMP  SYSTEMS  EQUIPMENT  AND  INSTALLATION  EXEMPTION,  SUCH COMMERCIAL
GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT  AND  INSTALLATION  EXEMPTION  or
such clothing and footwear exemption.
  (4)  Notwithstanding  any  other provision of law to the contrary, any
local law enacted by any city of one million or more  that  imposes  the
taxes authorized by this subdivision (i) may omit the exception provided
in  subparagraph  (ii)  of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from  laundering,  dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of

A. 9128--A                          3

section eleven hundred five of this chapter at a rate in addition to the
rate  prescribed  by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the  tax  described
in  paragraph  six  of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city
or an agency or instrumentality of the city or a public corporation  the
majority  of  whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both  of  them;  (iv)
shall  not include any tax on receipts from, or the use of, the services
described in paragraph  seven  of  subdivision  (c)  of  section  eleven
hundred  five  of  this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred  five  of
this  chapter,  "permanent  resident"  means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive  days  with
regard  to  the  period  of  such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section  eleven  hundred
five  of  this  chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is  to  be  a
participant,  such  as  bowling  alleys  and  swimming  pools; (vii) may
provide the clothing and  footwear  exemption  in  paragraph  thirty  of
subdivision  (a) of section eleven hundred fifteen of this chapter, and,
notwithstanding any provision of subdivision (d) of this section to  the
contrary,  any  local law providing for such exemption or repealing such
exemption, may go into effect on any one of the following  dates:  March
first,  June first, September first or December first; (viii) shall omit
the exemption provided in paragraph  forty-one  of  subdivision  (a)  of
section  eleven  hundred  fifteen  of  this chapter; (ix) shall omit the
exemption provided in subdivision (c) of section eleven hundred  fifteen
of this chapter insofar as it applies to fuel, gas, electricity, refrig-
eration and steam, and gas, electric, refrigeration and steam service of
whatever  nature  for use or consumption directly and exclusively in the
production of gas, electricity, refrigeration or steam; (x) shall  omit,
unless  such  city  elects otherwise, the provision for refund or credit
contained in clause six of subdivision (a)  or  in  subdivision  (d)  of
section eleven hundred nineteen of this chapter; (xi) shall provide that
section  eleven  hundred  five-C  of this chapter does not apply to such
taxes, and shall tax receipts from every  sale,  other  than  sales  for
resale, of gas service or electric service of whatever nature, including
the  transportation, transmission or distribution of gas or electricity,
even if sold separately, at the rate set forth in clause one of subpara-
graph (i) of the opening paragraph of this section;  (xii)  shall  omit,
unless  such  city elects otherwise, the exemption for residential solar
energy systems equipment and electricity provided in subdivision (ee) of
section eleven hundred fifteen  of  this  chapter;  (xiii)  shall  omit,
unless  such  city  elects otherwise, the exemption for commercial solar
energy systems equipment and electricity provided in subdivision (ii) of
section eleven hundred fifteen of this chapter; [and] (xiv) shall  omit,
unless  such  city  elects  otherwise, the exemption for commercial fuel
cell electricity generating systems equipment and electricity  generated
by such equipment provided in subdivision (kk) of section eleven hundred
fifteen  of  this  chapter;  AND (XV) SHALL OMIT UNLESS SUCH CITY ELECTS
OTHERWISE, THE RESIDENTIAL GEOTHERMAL HEAT PUMP  SYSTEMS  EQUIPMENT  AND
INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION (LL) OF SECTION ELEV-
EN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER; AND SHALL OMIT UNLESS SUCH CITY
ELECTS OTHERWISE, THE COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS  EQUIPMENT
AND  INSTALLATION  EXEMPTION PROVIDED FOR IN SUBDIVISION (MM) OF SECTION

A. 9128--A                          4

ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER.  Any reference in  this  chapter
or  in  any  local  law, ordinance or resolution enacted pursuant to the
authority of this article to former subdivisions  (n)  or  (p)  of  this
section  shall be deemed to be a reference to clauses (xii) or (xiii) of
this paragraph, respectively, and  any  such  local  law,  ordinance  or
resolution that provides the exemptions provided in such former subdivi-
sions  (n)  and/or (p) shall be deemed instead to provide the exemptions
provided in clauses (xii) and/or (xiii) of this paragraph.
  S 4. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
amended by section 3 of part WW of chapter 60 of the laws  of  2016,  is
amended to read as follows:
  (1)  Or,  one or more of the taxes described in subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter, at the  same
uniform  rate,  including  the transitional provisions in section eleven
hundred six of this chapter covering  such  taxes,  but  not  the  taxes
described  in subdivisions (a) and (c) of section eleven hundred five of
this chapter. Provided, further, that where the tax described in  subdi-
vision  (b)  of  section eleven hundred five of this chapter is imposed,
the compensating use taxes described in clauses  (E),  (G)  and  (H)  of
subdivision (a) of section eleven hundred ten of this chapter shall also
be  imposed. Provided, further, that where the taxes described in subdi-
vision (b) of section eleven hundred five are imposed, such taxes  shall
omit:  (A)  the  provision for refund or credit contained in subdivision
(d) of section eleven hundred nineteen of this chapter with  respect  to
such  taxes  described in such subdivision (b) of section eleven hundred
five unless such city or county elects to provide such provision or,  if
so  elected,  to  repeal  such  provision; (B) the exemption provided in
paragraph two of subdivision (ee) of section eleven hundred  fifteen  of
this  chapter  unless  such  county  or  city  elects otherwise; (C) the
exemption provided in paragraph two of subdivision (ii) of section elev-
en hundred fifteen of this chapter, unless such county  or  city  elects
otherwise; [and] (D) the exemption provided in paragraph two of subdivi-
sion (kk) of section eleven hundred fifteen of this chapter, unless such
county or city elects otherwise; (E) THE EXEMPTION PROVIDED IN PARAGRAPH
TWO  OF SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAP-
TER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE; AND (F) THE  EXEMPTION
PROVIDED  IN PARAGRAPH TWO OF SUBDIVISION (MM) OF SECTION ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE.
  S 5. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
section  4  of  part WW of chapter 60 of the laws of 2016, is amended to
read as follows:
  (d) A local law, ordinance or resolution imposing any tax pursuant  to
this  section,  increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy  sources  and
services  described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of  tax  imposed  on  such
energy  sources  and  services  or  providing  for  the credit or refund
described in clause six of subdivision (a)  of  section  eleven  hundred
nineteen  of  this  chapter,  or electing or repealing the exemption for
residential solar equipment  and  electricity  in  subdivision  (ee)  of
section  eleven  hundred  fifteen  of this article, or the exemption for
commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
section eleven hundred fifteen of this article, or electing or repealing
the  exemption  for  commercial fuel cell electricity generating systems
equipment and electricity generated by  such  equipment  in  subdivision
(kk)  of  section eleven hundred fifteen of this article, OR ELECTING OR

A. 9128--A                          5

REPEALING THE EXEMPTION FOR RESIDENTIAL  GEOTHERMAL  HEAT  PUMP  SYSTEMS
EQUIPMENT AND INSTALLATION IN SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED
FIFTEEN  OF  THIS  ARTICLE,  OR  ELECTING OR REPEALING THE EXEMPTION FOR
COMMERCIAL  GEOTHERMAL  HEAT  PUMP SYSTEMS EQUIPMENT AND INSTALLATION IN
SUBDIVISION (MM) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE  must
go  into  effect  only  on one of the following dates: March first, June
first, September first or December first; provided, that  a  local  law,
ordinance  or  resolution providing for the exemption described in para-
graph thirty of subdivision (a) of section  eleven  hundred  fifteen  of
this  chapter  or repealing any such exemption or a local law, ordinance
or resolution providing for a refund or credit described in  subdivision
(d) of section eleven hundred nineteen of this chapter or repealing such
provision  so  provided must go into effect only on March first. No such
local law, ordinance or resolution shall be effective unless a certified
copy of such law, ordinance or resolution is  mailed  by  registered  or
certified mail to the commissioner at the commissioner's office in Alba-
ny  at  least  ninety  days prior to the date it is to become effective.
However, the commissioner may waive and reduce such  ninety-day  minimum
notice  requirement to a mailing of such certified copy by registered or
certified mail within a period of not less than  thirty  days  prior  to
such effective date if the commissioner deems such action to be consist-
ent with the commissioner's duties under section twelve hundred fifty of
this  article  and  the  commissioner  acts  by  resolution.  Where  the
restriction provided for in section twelve hundred twenty-three of  this
article  as  to  the  effective date of a tax and the notice requirement
provided for therein are  applicable  and  have  not  been  waived,  the
restriction  and  notice  requirement  in section twelve hundred twenty-
three of this article shall also apply.
  S 6. Subdivision (a) of section 1212 of the tax  law,  as  amended  by
section  5  of  part WW of chapter 60 of the laws of 2016, is amended to
read as follows:
  (a) Any school district which is coterminous with,  partly  within  or
wholly  within a city having a population of less than one hundred twen-
ty-five thousand, is hereby authorized and empowered, by  majority  vote
of  the  whole  number  of  its school authorities, to impose for school
district purposes, within the territorial limits of such school district
and without discrimination between residents and  nonresidents  thereof,
the  taxes  described  in subdivision (b) of section eleven hundred five
(but excluding the tax on prepaid telephone calling  services)  and  the
taxes  described  in  clauses  (E) and (H) of subdivision (a) of section
eleven hundred ten, including the transitional provisions in subdivision
(b) of section eleven hundred six  of  this  chapter,  so  far  as  such
provisions  can  be  made applicable to the taxes imposed by such school
district and with such limitations and special  provisions  as  are  set
forth in this article, such taxes to be imposed at the rate of one-half,
one, one and one-half, two, two and one-half or three percent which rate
shall  be  uniform  for  all portions and all types of receipts and uses
subject to such taxes. In respect to such taxes, all provisions  of  the
resolution  imposing  them,  except  as  to rate and except as otherwise
provided herein, shall be identical with the corresponding provisions in
such article twenty-eight of  this  chapter,  including  the  applicable
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight of  this  chapter  can  be  made
applicable  to  the  taxes imposed by such school district and with such
limitations and special provisions as are set forth in this article. The
taxes described in subdivision (b) of section eleven hundred  five  (but

A. 9128--A                          6

excluding  the tax on prepaid telephone calling service) and clauses (E)
and (H) of subdivision (a) of section eleven hundred ten, including  the
transitional provision in subdivision (b) of such section eleven hundred
six  of  this chapter, may not be imposed by such school district unless
the resolution imposes such taxes so as to include all portions and  all
types  of  receipts  and uses subject to tax under such subdivision (but
excluding the tax on prepaid telephone  calling  service)  and  clauses.
Provided,  however,  that,  where  a school district imposes such taxes,
such taxes shall omit the provision for refund or  credit  contained  in
subdivision  (d) of section eleven hundred nineteen of this chapter with
respect to such taxes described in such subdivision (b) of section elev-
en hundred five unless such  school  district  elects  to  provide  such
provision  or,  if  so elected, to repeal such provision, and shall omit
the exemptions provided in paragraph two of subdivision (ee)  and  para-
graph  two of subdivision (ii) of section eleven hundred fifteen of this
chapter unless such school district elects otherwise, and shall omit the
exemption provided in paragraph two of subdivision (kk) of section elev-
en hundred fifteen of this chapter unless such  school  district  elects
otherwise,  AND SHALL OMIT THE EXEMPTION PROVIDED IN SUBDIVISION (11) OF
SECTION ELEVEN HUNDRED  FIFTEEN  OF  THIS  CHAPTER  UNLESS  SUCH  SCHOOL
DISTRICT  ELECTS  OTHERWISE,  AND  SHALL  OMIT THE EXEMPTION PROVIDED IN
SUBDIVISION (MM) OF SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER
UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE.
  S 7. Section 1224 of the tax law is amended by adding two new subdivi-
sions (c-3) and (c-4) to read as follows:
  (C-3)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A COUNTY
CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
HAS ELECTED THE EXEMPTION FOR RESIDENTIAL GEOTHERMAL HEAT  PUMP  SYSTEMS
EQUIPMENT AND INSTALLATION PROVIDED IN SUBDIVISION (LL) OF SECTION ELEV-
EN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITHIN SUCH COUNTY SHALL HAVE
THE  PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLA-
TION TO THE EXTENT OF ONE HALF OF THE  MAXIMUM  RATES  AUTHORIZED  UNDER
SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE;
  (2)  WHERE  A  CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION
FOR RESIDENTIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND  INSTALLATION
PROVIDED  IN  SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
CHAPTER, THE COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE  THE  PRIOR
RIGHT  TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLATION TO THE
EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A)
OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
  (C-4) NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A  COUNTY
CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
HAS  ELECTED  THE  EXEMPTION FOR COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS
EQUIPMENT AND INSTALLATION PROVIDED IN SUBDIVISION (MM) OF SECTION ELEV-
EN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITHIN SUCH COUNTY SHALL HAVE
THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR  INSTALLA-
TION  TO  THE  EXTENT  OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER
SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE;
  (2) WHERE A CITY OF LESS THAN ONE MILLION HAS  ELECTED  THE  EXEMPTION
FOR  COMMERCIAL  GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION
PROVIDED IN SUBDIVISION (MM) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THIS
CHAPTER,  THE  COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE THE PRIOR
RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLATION TO  THE
EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A)
OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
  S 8. This act shall take effect immediately.