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Assembly Bill A4070A

2019-2020 Legislative Session

Relates to terminal rental adjustment clauses in motor vehicle leases

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

co-Sponsors

2019-A4070 - Details

See Senate Version of this Bill:
S3067
Current Committee:
Assembly Ways And Means
Law Section:
Tax Law
Laws Affected:
Amd §1111, Tax L
Versions Introduced in 2021-2022 Legislative Session:
S4693

2019-A4070 - Summary

Relates to terminal rental adjustment clauses in motor vehicle leases; provides that any increase in the consideration given pursuant to such clause upon termination of the lease shall be subject to tax, and that any decrease in the consideration given pursuant to such clause upon termination of the lease shall allow the lessor to claim a credit or refund of tax on such amount.

2019-A4070 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4070
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to terminal  rental  adjustment
   clauses in motor vehicle leases
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph (B) of subdivision (i) of section 1111 of the tax
 law, as amended by chapter 20 of the laws of 1992, is amended to read as
 follows:
   (B) Notwithstanding any inconsistent provisions of  this  subdivision,
 with respect to a lease of a motor vehicle described in paragraph (A) of
 this  subdivision  for  a term of one year or more (1) which includes an
 indeterminate number of options to renew or  other  similar  contractual
 provisions or which includes thirty-six or more monthly options to renew
 beyond  the  initial  term, and (2) under which lease the lessee of such
 motor vehicle has certified in the writing described in  clause  (i)  of
 subparagraph  (C)  of paragraph two of subsection (h) of section 7701 of
 the internal revenue code of 1986, under penalty of  perjury,  that  the
 lessee  intends  that more than fifty percent of the use of such vehicle
 is to be in a trade or business of  the  lessee,  all  receipts  due  or
 consideration  given  or contracted to be given under such lease for the
 first thirty-two months, or the period of the initial term  if  greater,
 of  such  lease  shall be deemed to have been paid or given and shall be
 subject to tax in accordance with the provisions  of  this  subdivision.
 For  each  such option to renew, or similar provision, or combination of
 them, exercised after the first thirty-two months, or the period of such
 initial term, if longer, of any such lease, tax due under  this  article
 shall be collected and paid or paid over without regard to this subdivi-
 sion.   IF ANY SUCH LEASE CONTAINS A "TERMINAL RENTAL ADJUSTMENT CLAUSE"
 AS DEFINED IN PARAGRAPH THREE OF SUBSECTION (H) OF SECTION 7701  OF  THE
 INTERNAL  REVENUE  CODE  OF  1986, (1) ANY INCREASE IN THE CONSIDERATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

co-Sponsors

multi-Sponsors

2019-A4070A (ACTIVE) - Details

See Senate Version of this Bill:
S3067
Current Committee:
Assembly Ways And Means
Law Section:
Tax Law
Laws Affected:
Amd §1111, Tax L
Versions Introduced in 2021-2022 Legislative Session:
S4693

2019-A4070A (ACTIVE) - Summary

Relates to terminal rental adjustment clauses in motor vehicle leases; provides that any increase in the consideration given pursuant to such clause upon termination of the lease shall be subject to tax, and that any decrease in the consideration given pursuant to such clause upon termination of the lease shall allow the lessor to claim a credit or refund of tax on such amount.

2019-A4070A (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4070--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 1, 2019
                                ___________
 
 Introduced  by  M. of A. SCHIMMINGER, McDONALD -- read once and referred
   to the Committee on Ways and Means -- recommitted to the Committee  on
   Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN  ACT  to amend the tax law, in relation to terminal rental adjustment
   clauses in motor vehicle leases
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (B) of subdivision (i) of section 1111 of the tax
 law, as amended by chapter 20 of the laws of 1992, is amended to read as
 follows:
   (B)  Notwithstanding  any inconsistent provisions of this subdivision,
 with respect to a lease of a motor vehicle described in paragraph (A) of
 this subdivision for a term of one year or more (1)  which  includes  an
 indeterminate  number  of  options to renew or other similar contractual
 provisions or which includes thirty-six or more monthly options to renew
 beyond the initial term, and (2) under which lease the  lessee  of  such
 motor  vehicle  has  certified in the writing described in clause (i) of
 subparagraph (C) of paragraph two of subsection (h) of section  7701  of
 the  internal  revenue  code of 1986, under penalty of perjury, that the
 lessee intends that more than fifty percent of the use of  such  vehicle
 is  to  be  in  a  trade  or business of the lessee, all receipts due or
 consideration given or contracted to be given under such lease  for  the
 first  thirty-two  months, or the period of the initial term if greater,
 of such lease shall be deemed to have been paid or given  and  shall  be
 subject  to  tax  in accordance with the provisions of this subdivision.
 For each such option to renew, or similar provision, or  combination  of
 them, exercised after the first thirty-two months, or the period of such
 initial  term,  if longer, of any such lease, tax due under this article
 shall be collected and paid or paid over without regard to this subdivi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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