Senate Bill S204A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  204--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sens. MARCHIONE, FUNKE, SEWARD -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations  and  Government  Operations  --  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 imposition of sales  tax
   on snowmobiles and all terrain vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1117 of the tax law, as amended by chapter  481  of
 the laws of 2000, is amended to read as follows:
   §  1117.  Certain  sales of motor vehicles [and], vessels, SNOWMOBILES
 AND ALL TERRAIN VEHICLES. (a) Receipts from any sale of a motor  vehicle
 [or],  vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE shall not be subject to
 the retail sales tax imposed under subdivision  (a)  of  section  eleven
 hundred  five of this article, despite the taking of physical possession
 by the purchaser within this state, provided that:
   (1) the purchaser, at the time of taking delivery
   (i) is a nonresident of this state,
   (ii) has no permanent place of abode in this state, and
   (iii) is not engaged in carrying on  in  this  state  any  employment,
 trade,  business  or profession in which the motor vehicle [or], vessel,
 SNOWMOBILE OR ALL TERRAIN VEHICLE will be used in this state;
   (2) (i) the vendor of such  motor  vehicle  does  not  issue  to  such
 purchaser  with respect to such motor vehicle either a temporary certif-
 icate of registration pursuant to  subdivision  seven  of  section  four
 hundred  twenty  of the vehicle and traffic law or a temporary registra-
 tion pursuant to section four hundred twenty-a of the vehicle and  traf-
 fic law, or other like certificate or registration; or

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

                                                            LBD02979-02-7

 S. 204--A                           2
 
   (ii)  the  vendor  of such vessel does not assign to such vessel a New
 York registration number or issue to such purchaser with respect to such
 vessel a temporary registration pursuant to section  twenty-two  hundred
 fifty-five of the vehicle and traffic law, or other like registration or
 temporary certificate of registration; OR
   (III) THE VENDOR OF SUCH SNOWMOBILE DOES NOT ASSIGN TO SUCH SNOWMOBILE
 A  NEW  YORK REGISTRATION NUMBER OR ISSUE TO SUCH PURCHASER WITH RESPECT
 TO SUCH SNOWMOBILE A TEMPORARY REGISTRATION PURSUANT TO SUBDIVISION FOUR
 OF SECTION TWENTY-TWO HUNDRED TWENTY-FIVE OF  THE  VEHICLE  AND  TRAFFIC
 LAW,  OR  OTHER  LIKE REGISTRATION OR TEMPORARY CERTIFICATE OF REGISTRA-
 TION; OR
   (IV) THE VENDOR OF SUCH ALL TERRAIN VEHICLE DOES NOT  ASSIGN  TO  SUCH
 ALL  TERRAIN  VEHICLE  A  NEW  YORK REGISTRATION NUMBER OR ISSUE TO SUCH
 PURCHASER WITH RESPECT TO SUCH ALL TERRAIN VEHICLE A TEMPORARY REGISTRA-
 TION PURSUANT TO SUBDIVISION FOUR OF SECTION TWENTY-TWO HUNDRED  EIGHTY-
 FIVE  OF  THE  VEHICLE  AND  TRAFFIC  LAW, OR OTHER LIKE REGISTRATION OR
 TEMPORARY CERTIFICATE OF REGISTRATION;
   (3) the purchaser does not register such motor vehicle  [or],  vessel,
 SNOWMOBILE  OR  ALL  TERRAIN  VEHICLE, as the case may be, in this state
 prior to registering such motor vehicle or vessel in  another  state  or
 jurisdiction; and
   (4)  prior  to taking delivery such purchaser furnishes to such vendor
 any affidavit, statement or additional evidence, documentary  or  other-
 wise, which the commissioner may require to ensure proper administration
 of  the tax imposed under subdivision (a) of section eleven hundred five
 of this article.
   (b) A vendor shall not  be  liable  for  failure  to  collect  tax  on
 receipts  from  any  sale of a motor vehicle [or], vessel, SNOWMOBILE OR
 ALL TERRAIN VEHICLE provided that the vendor prior  to  making  delivery
 obtains and keeps available for inspection by the commissioner any affi-
 davit,  statement  or  additional evidence, documentary or otherwise, as
 may be required to be furnished under subdivision (a) of  this  section;
 provided  that  such  affidavit, statement or additional evidence is not
 known by the vendor, prior to making  physical  delivery  of  the  motor
 vehicle [or], vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE, to be false.
   (c) For purposes of this section, the term:
   (1)  "Motor  vehicle"  shall  include  a  motor  vehicle as defined in
 section one hundred twenty-five of the vehicle and  traffic  law  and  a
 trailer  as  defined in section one hundred fifty-six of the vehicle and
 traffic law.
   (2) "Vessel" shall (i) include a vessel as defined in section  twenty-
 two  hundred fifty of the vehicle and traffic law, including any inboard
 or outboard motor and any trailer, as defined  in  section  one  hundred
 fifty-six  of  the vehicle and traffic law, sold with the vessel for use
 with such vessel; (ii) but not include a  vessel  weighing  two  hundred
 pounds  or  less, inclusive of any mast and sail or other rigging, which
 is not equipped with a motor and which is exempt from registration under
 paragraph (g) of subdivision one of section twenty-two hundred fifty-two
 of the vehicle and traffic law.
   (3) "SNOWMOBILE" SHALL INCLUDE A  SNOWMOBILE  AS  DEFINED  IN  SECTION
 TWENTY-TWO HUNDRED TWENTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
   (4)  "ALL  TERRAIN  VEHICLE"  SHALL  INCLUDE AN ALL TERRAIN VEHICLE AS
 DEFINED IN SECTION TWENTY-TWO HUNDRED  EIGHTY-ONE  OF  THE  VEHICLE  AND
 TRAFFIC LAW.
   (d) Nothing in this section or section twelve hundred fourteen of this
 chapter shall be construed as meaning that the provisions of subdivision

 S. 204--A                           3
 
 (i)  of  section  eleven  hundred eleven of this article do not apply to
 leases of motor vehicles, vessels and trailers described in  subdivision
 (i) of section eleven hundred eleven of this article.
   §  2.  Section  1214  of the tax law, as amended by chapter 481 of the
 laws of 2000, is amended to read as follows:
   § 1214. Certain sales of motor vehicles  [and],  vessels,  SNOWMOBILES
 AND ALL TERRAIN VEHICLES: proof required for registration of motor vehi-
 cles  [and],  vessels,  SNOWMOBILES  AND  ALL  TERRAIN VEHICLES. (a) (1)
 Except as provided in paragraph three of this subdivision, where a  sale
 of  a  motor  vehicle [or],   vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE,
 including an agreement therefor, is made in any city, county  or  school
 district to a nonresident thereof, such sale shall not be subject to tax
 by  such  city,  county  or  school district, despite the fact that such
 motor vehicle [or], vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE is  deliv-
 ered  to  the purchaser within such jurisdiction, provided the purchaser
 furnishes to the vendor, prior to taking delivery, proof satisfactory to
 the commissioner that the purchaser:
   (i) is a nonresident of the jurisdiction in which the sale is made,
   (ii) has no permanent place of abode within such jurisdiction,
   (iii) is not engaged in carrying on in such jurisdiction  any  employ-
 ment,  trade,  business  or  profession in which the motor vehicle [or],
 vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE will be used in such jurisdic-
 tion, and such other proof as the commissioner  may  require  to  ensure
 proper  administration  of  the  taxes  imposed  under  the authority of
 sections twelve hundred ten and twelve hundred eleven of this article.
   (2) However, if such purchaser resides in a  city,  county  or  school
 district  imposing  a tax on the use of such motor vehicle [or], vessel,
 SNOWMOBILE OR ALL TERRAIN VEHICLE,  the  vendor  shall  be  required  to
 collect  from  such  purchaser,  as  provided  in section twelve hundred
 fifty-four of this article, the aggregate compensating use taxes imposed
 by the city, if any, county and school district in which such  purchaser
 resides,  for  distribution by the commissioner to such taxing jurisdic-
 tion or jurisdictions.
   (3) Provided, however, the exclusion from tax  provided  in  paragraph
 one  of  this  subdivision  shall not apply where the receipts from such
 sale would have been  excluded  from  tax  pursuant  to  section  eleven
 hundred  seventeen of this chapter but for failure to satisfy either the
 condition set forth in paragraph two of subdivision (a) of section elev-
 en hundred seventeen of this chapter or the condition set forth in para-
 graph three of subdivision (a) of section eleven  hundred  seventeen  of
 this chapter.
   (b)  A  vendor  shall not be liable for failure to collect tax on such
 sale of a motor vehicle [or], vessel, SNOWMOBILE OR ALL TERRAIN  VEHICLE
 provided the proof furnished to such vendor by the purchaser pursuant to
 subdivision  (a) of this section shows that the purchaser's residence is
 not in any city, county or school district which imposes a  tax  on  the
 use  of such motor vehicle [or], vessel, SNOWMOBILE OR ALL TERRAIN VEHI-
 CLE, and provided the vendor keeps such proof available  for  inspection
 by the commissioner and further provided that such proof is not known by
 the vendor, prior to making physical delivery of the motor vehicle [or],
 vessel, SNOWMOBILE OR ALL TERRAIN VEHICLE, to be false.
   (c)  For  purposes  of  subdivisions  (a) and (b) of this section, the
 term:
   (1) "Motor vehicle" shall  include  a  motor  vehicle  as  defined  in
 section  one  hundred  twenty-five  of the vehicle and traffic law and a

 S. 204--A                           4
 
 trailer as defined in section one hundred fifty-six of the  vehicle  and
 traffic law.
   (2)  "Vessel" shall (i) include a vessel as defined in section twenty-
 two hundred fifty of the vehicle and traffic law, including any  inboard
 or  outboard  motor  and  any trailer, as defined in section one hundred
 fifty-six of the vehicle and traffic law, sold with the vessel  for  use
 with  such  vessel;  (ii)  but not include a vessel weighing two hundred
 pounds or less, inclusive of any mast and sail or other  rigging,  which
 is not equipped with a motor and which is exempt from registration under
 paragraph (g) of subdivision one of section twenty-two hundred fifty-two
 of the vehicle and traffic law.
   (3)  "SNOWMOBILE:  SHALL  INCLUDE  A  SNOWMOBILE AS DEFINED IN SECTION
 TWENTY-TWO HUNDRED TWENTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
   (4) "ALL TERRAIN VEHICLE" SHALL INCLUDE  AN  ALL  TERRAIN  VEHICLE  AS
 DEFINED  IN  SECTION  TWENTY-TWO  HUNDRED  EIGHTY-ONE OF THE VEHICLE AND
 TRAFFIC LAW.
   (d) The commissioner of motor vehicles shall not issue a  registration
 certificate,  except  in  renewal of registration by the same owner, (1)
 for any passenger motor vehicle not used to carry passengers  for  hire,
 any  snowmobile,  as defined in section twenty-two hundred twenty-one of
 the vehicle and traffic law, trailer, as defined in section one  hundred
 fifty-six  of the vehicle and traffic law, vessel, as defined in section
 twenty-two hundred fifty of such law, or all terrain vehicle, as defined
 in section twenty-two hundred eighty-one of such law, which is owned  by
 an  individual whose residence is within any city or county imposing the
 taxes authorized by subdivision (a) of section  twelve  hundred  ten  of
 this  article, or (2) for any motor vehicle, snowmobile, trailer, vessel
 or all terrain vehicle except as  provided  in  paragraph  one  of  this
 subdivision,  owned  by  a person whose residence or business address is
 within any such city or county, except upon proof, in a form approved by
 the commissioner and the commissioner of motor  vehicles  that  any  tax
 imposed  by  such  city  or county with respect to the sale of the motor
 vehicle, snowmobile, trailer, vessel  or  all  terrain  vehicle  to  the
 registrant or his use thereof has been paid, or that no such tax is due.
   § 3. Paragraph 1 of subdivision (g) of section 1132 of the tax law, as
 amended  by  chapter  402  of  the  laws  of 1986, is amended to read as
 follows:
   (1) The clerk of each county when performing the function of registra-
 tion of a motor vehicle, snowmobile, vessel or all  terrain  vehicle  or
 accepting  an  application for a certificate of title of a motor vehicle
 or vessel, pursuant to the authority of the vehicle and traffic law,  or
 the commissioner of motor vehicles, when such commissioner performs such
 functions, prior to performing such functions, shall act as the agent of
 the  state tax commission to collect any retail sales tax due under this
 article and under a sales tax imposed pursuant to section twelve hundred
 ten or twelve hundred eleven OF THIS CHAPTER upon sales  of  such  motor
 vehicles,  snowmobiles, vessels or all terrain vehicles by persons other
 than dealers registered under sections four hundred fifteen,  twenty-two
 hundred   twenty-two,  twenty-two  hundred  fifty-seven  and  twenty-two
 hundred eighty-two of the vehicle and traffic law.  Such  county  clerks
 and  such  commissioner  shall  also  act  as such agents to collect any
 compensating use tax due under section eleven hundred ten OF THIS  ARTI-
 CLE  and under a compensating use tax imposed pursuant to section twelve
 hundred ten or twelve hundred eleven OF THIS CHAPTER for the  use  of  a
 motor  vehicle,  snowmobile,  vessel  or all terrain vehicle within this
 state.  The commissioner of motor vehicles shall act as such agent with-

 S. 204--A                           5
 
 out fee.   Each such county clerk shall,  after  deducting  his  fee  as
 provided  in  paragraph  two  of this subdivision, and such commissioner
 shall remit to the tax commission all funds collected pursuant  to  this
 subdivision  and  shall  follow such procedures and keep such records as
 shall be prescribed by the tax commission.   SALES OR  COMPENSATING  USE
 TAXES  COLLECTED  PURSUANT  TO THE PROVISIONS OF THIS SECTION ON SNOWMO-
 BILES OR ALL TERRAIN VEHICLES SHALL BE DETERMINED BY REFERENCE TO  PLACE
 OF RESIDENCE OF THE OWNER OF THE SNOWMOBILE OR ALL TERRAIN VEHICLE.
   §  4.  This act shall take effect immediately and shall apply to sales
 made and uses occurring on or after the first day of a sales  tax  quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law, next commencing at least 90 days after this act shall have become a
 law,  although  made  or  used under a prior contract; provided 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 procedures, forms or instructions necessary
 to implement the provisions of this act on its effective date.