Senate Bill S5524B

                                BILL NUMBER:S5524

TITLE OF BILL:

An act to amend the tax law, in relation to granting a sales and compen-
sating use tax exemption for toilet paper and tissue sold for household
use

PURPOSE OR GENERAL IDEA OF BILL:

This bill exempts toilet paper and tissue for household use from sales
and use tax.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Adds a new paragraph to subdivision (a) of section 1115 of
the tax law. This section excludes toilet paper and tissue for household
use from sales and use taxes.

Section 2. Effective Date.

JUSTIFICATION:

Tangible products and services are subject to taxation in New York State
unless specifically excluded. Demand for hygiene products such as toilet
paper is very inelastic and therefore it typically puts a greater burden
              

on the economically disadvantaged. Since toilet paper isn't an optional
product it should not be subject to taxation.

There have been many tax exclusions for other goods such as certain
foods and medications that are considered to be necessities.  According
to the New York State Department of Taxation and Finance's Tax Bulletin
Sales and Use Tax TBST-193, other medicinal products used internally or
externally by humans for the preservation of health and products that
are intended to affect the structure or a function of the human body,
are also exempt from sales tax. Products which were not originally
considered drugs or medications but are now tax exempt include items
such as sunscreen, lip balm, and acne preparations.

Toilet paper is a vital product that helps maintain personal hygiene and
health and should be included on this list. Removing sales tax from
toilet paper would alleviate a tax burden that all New Yorkers face and
make it easier to afford a necessary product that is fundamental to
personal hygiene and health. Of the states that have a sales and use
tax, two states, New Jersey and Pennsylvania, have removed the tax on
toilet paper.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect on the first of January on the next succeed-
ing the date on which it shall have become law.

                                BILL NUMBER:S5524A

TITLE OF BILL:  An act to amend the tax law, in relation to granting a
sales and compensating use tax exemption for toilet paper and toilet
tissue sold for household use

PURPOSE OR GENERAL IDEA OF BILL: This bill exempts toilet paper and
toilet tissue for household use from sales and use tax.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Adds a new paragraph to subdivision (a) of section 1115 of
the tax law. This section excludes toilet paper and tissue for
household use from sales and use taxes.

Section 2. Effective Date.

JUSTIFICATION:  Tangible products and services are subject to taxation
in New York State unless specifically excluded. Demand for hygiene
products such as toilet paper is very inelastic and therefore it
typically puts a greater burden on the economically disadvantaged.
Since toilet paper isn't an optional product it should not be subject
to taxation.

There have been many tax exclusions for other goods such as certain
foods and medications that are considered to be necessities.