Senate Bill S296B

2015-2016 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 Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 30, 2016	print number 296b
Mar 30, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Apr 29, 2015	print number 296a
Apr 29, 2015	amend and recommit to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

Bill Amendments

Original

B (Active)

2015-S296 - Details

See Assembly Version of this Bill:: A7078
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L
Versions Introduced in 2013-2014 Legislative Session:: S3669, A7193

2015-S296 - Summary

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

2015-S296 - Sponsor Memo

                                 BILL NUMBER:  S296

 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 2222.

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 : S.3669-A (2014)

 FISCAL IMPLICATIONS : None to the state.

 EFFECTIVE DATE : This act shall take effect April 1, 2015.

2015-S296 - Bill Text download pdf

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

                                   296

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

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, 2015.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05237-01-5

2015-S296A - Details

See Assembly Version of this Bill:: A7078
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L
Versions Introduced in 2013-2014 Legislative Session:: S3669, A7193

2015-S296A - Summary

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

2015-S296A - Sponsor Memo

                                BILL NUMBER:S296A

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 2222.

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:


S.3669-A (2014)

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

This act shall take effect April 1, 2016.

2015-S296A - Bill Text download pdf

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

                                 296--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  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, 2016.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05237-03-5

2015-S296B (ACTIVE) - Details

See Assembly Version of this Bill:: A7078
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L
Versions Introduced in 2013-2014 Legislative Session:: S3669, A7193

2015-S296B (ACTIVE) - Summary

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

2015-S296B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S296B

 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 2222.

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 :

S.3669-A (2014)

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
This act shall take effect April 1, 2017.

2015-S296B (ACTIVE) - Bill Text download pdf

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

                                 296--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  committee  discharged,  bill  amended,   ordered
  reprinted  as amended and recommitted to said committee -- 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  commit-
  tee

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, 2017.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05237-04-6

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Senate Bill S296B

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

2015-S296 - Details

2015-S296 - Summary

2015-S296 - Sponsor Memo

2015-S296 - Bill Text download pdf

2015-S296A - Details

2015-S296A - Summary

2015-S296A - Sponsor Memo

2015-S296A - Bill Text download pdf

2015-S296B (ACTIVE) - Details

2015-S296B (ACTIVE) - Summary

2015-S296B (ACTIVE) - Sponsor Memo

2015-S296B (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S296B

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Sponsored By

Jack M. Martins

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

Bill Amendments

2015-S296 - Details

2015-S296 - Summary

2015-S296 - Sponsor Memo

2015-S296 - Bill Text download pdf

2015-S296A - Details

2015-S296A - Summary

2015-S296A - Sponsor Memo

2015-S296A - Bill Text download pdf

2015-S296B (ACTIVE) - Details

2015-S296B (ACTIVE) - Summary

2015-S296B (ACTIVE) - Sponsor Memo

2015-S296B (ACTIVE) - Bill Text download pdf

Comments