Senate Bill S4003

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

                                  4003

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 25, 2015
                               ___________

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

AN  ACT  to amend the tax law, in relation to providing an exemption for
  certain tangible personal property or  services  from  the  sales  and
  compensating use tax

  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 (jj) to read as follows:
  (JJ)  TANGIBLE  PERSONAL  PROPERTY OR SERVICES OTHERWISE TAXABLE UNDER
THIS ARTICLE SOLD TO A RELATED PERSON SHALL NOT BE SUBJECT TO THE  TAXES
IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE OR THE COMPENSAT-
ING  USE  TAX  IMPOSED  UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE
WHERE THE PURCHASER CAN SHOW THAT THE FOLLOWING CONDITIONS HAVE BEEN MET
TO THE EXTENT THEY ARE APPLICABLE: (1)(I) THE VENDOR AND  THE  PURCHASER
ARE REFERENCED AS EITHER A "COVERED COMPANY" AS DESCRIBED IN SUBDIVISION
(F)  OF SECTION 243.2 OR A "MATERIAL ENTITY" AS DESCRIBED IN SUBDIVISION
(L) OF SECTION 243.2 OF TITLE 12 OF THE CODE OF FEDERAL REGULATIONS IN A
RESOLUTION PLAN THAT HAS BEEN SUBMITTED  TO  AN  AGENCY  OF  THE  UNITED
STATES  FOR  THE PURPOSE OF SATISFYING SUBPARAGRAPH ONE OF PARAGRAPH (D)
OF SECTION ONE HUNDRED SIXTY-FIVE OF THE DODD-FRANK WALL  STREET  REFORM
AND  CONSUMER  PROTECTION  ACT (THE "ACT") OR ANY SUCCESSOR LAW, OR (II)
THE VENDOR AND THE PURCHASER ARE SEPARATE LEGAL ENTITIES PURSUANT  TO  A
DIVESTITURE  DIRECTED  PURSUANT TO SUBPARAGRAPH FIVE OF PARAGRAPH (D) OF
SECTION ONE HUNDRED SIXTY-FIVE OF SUCH ACT OR ANY SUCCESSOR LAW; (2) THE
SALE WOULD NOT HAVE OCCURRED BETWEEN SUCH RELATED PERSONS  WERE  IT  NOT
FOR SUCH RESOLUTION PLAN OR DIVESTITURE; AND (3) IN ACQUIRING SUCH PROP-
ERTY  OR  SERVICES,  THE  VENDOR DID NOT CLAIM AN EXEMPTION FROM THE TAX
IMPOSED BY THIS STATE OR ANOTHER STATE BASED ON THE VENDOR'S  INTENT  TO
RESELL  SUCH SERVICES OR PROPERTY. A PERSON IS RELATED TO ANOTHER PERSON

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09471-01-5
              

S. 4003                             2

FOR PURPOSES OF THIS SUBDIVISION IF THE PERSON BEARS A  RELATIONSHIP  TO
SUCH PERSON DESCRIBED IN SECTION TWO HUNDRED SIXTY-SEVEN OF THE INTERNAL
REVENUE CODE. THE EXEMPTION PROVIDED BY THIS SUBDIVISION SHALL NOT APPLY
AFTER  JUNE  THIRTIETH,  TWO  THOUSAND  NINETEEN, EXCEPT WITH RESPECT TO
TRANSACTIONS OCCURRING PURSUANT TO BINDING CONTRACTS ENTERED INTO ON  OR
BEFORE SUCH DATE.
  S  2.  This  act  shall  take effect on the first day of the sales tax
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; provided, further, that the commissioner  of  taxation  and
finance  shall  be  authorized on and after the date this act shall have
become a law to adopt and amend any rules or regulations and  issue  any
procedure,  forms or instructions necessary to implement this act on its
effective date.