BILL NUMBER:  S2645A

 TITLE OF BILL :

An act to amend the tax law, in relation to granting sales and
compensating use tax exemptions for certain tangible personal property
and services used in the operation of recreational skiing facilities

 PURPOSE :

This legislation, if enacted, would amend section 1115 of the Tax Law
to state the purchase of energy efficient snow making equipment, ski
lift equipment, snow grooming equipment, and the production of snow by
a recreational ski facility are exempt from the New York State sales
and compensating use tax.

 SUMMARY OF PROVISIONS :

Section 1 - Amends subdivision (a) of section 1115 of the tax law by
adding paragraph (45) to exempt the production of snow, uphill
transportation of skiers, and/or the grooming and maintenance of snow
from sales and compensating use tax.

Section 2 - Amends section 1115 of the tax law by adding a new
subdivision (11) to exempt the production of snow as well as the
equipment to transport skiers uphill and to groom snow by any
              

recreational ski area from sales and compensating use tax.

Section 3 - Contains the effective Date.

 JUSTIFICATION :

New York State ranks fifth in the nation in skier visits per year
despite the fact that the state is the second highest when compared to
the percentage of their population that skis. New York State currently
exports a number of skiers and their families to the New England
states. In order to remain competitive with our neighbors to the east
which aggressively campaigns for our skiers and those whom visit New
York, this state needs to upgrade equipment and maintain state of the
art snowmaking systems, and this legislation will greatly assist them
in the purchase of new equipment and upgrading of snowmaking systems.

The ski industry employs over 10,000 New York State residents serving
on average 4 million skier visits per year with an economic impact of
over $1 billion. With over 40 ski areas, New York State has more ski
areas than any other state with over $4.8 million in sales tax paid
each year.  Local property taxes paid amount to over $3.5 million.
Snow making is critical to the ski industry and this legislation will
provide energy tax relief, which is one of the highest expenses faced
each winter season.

The three state owned ski areas in New York State are exempt from the
state sales tax while privately owned ski areas are not. This has
created an unfair business environment for these privately owned ski
areas, many of which are located in upstate New York. This bill would
provide that all ski areas that purchase energy efficient snow making
equipment and make snow shall be exempt from this tax. The fuel, gas,
electricity, and refrigeration, and gas, electric, and refrigeration
services used directly for the production of snow would now be exempt
from the state sales tax as will the energy efficient equipment. The
manufacture of snow is not eligible for a tax exemption under the
definition of manufacturing because snow is not sold as a product. The
climate and business environment has changed such that ski areas must
make snow to remain viable in this industry.


This legislation would eliminate the sales tax on the purchase of
qualifying energy efficient lift and grooming equipment. New safer
equipment to transport skiers has become available that will move more
people with less energy and manpower required. Grooming equipment is
powered by diesel fuel, and advancements in such technology has made
the newer machines much more energy efficient with less emissions and
more horse- power. Wisconsin, Minnesota, Utah and Colorado have
enacted similar laws that apply not only to the purchase of new energy
efficient equipment but also for the use and compensating tax on
snowmaking energy.

 LEGISLATIVE HISTORY :

2015-16: S.1683A Passed Senate; A.7012 Referred to Ways and Means
2013-14 S.3281 Referred to Investigations and Government Operations;
A.2145 Referred to Ways & Means
2011-12 S.6266 Passed Senate; A. 9991 Referred to Ways & Means
2009-10: S.836 Referred to Energy & Telecommunications; A. 519
Referred to Ways & Means
2008: S.2343-A; A.5392-A Ways & Means
2007: S.2343 Passed Senate; A.5392 Ways & Means
2005-06: S.720 Passed Senate; A.7995 Ways & Means

 FISCAL IMPLICATIONS :

To be determined.

 LOCAL FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the first of July next succeeding the
date on which it shall have become a law.