S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1291
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2019
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the tax law, in relation to exempting the sale of  plug-
   in  hybrid  electric  vehicles  from  state sales and compensating use
   taxes, and to authorize cities and counties to grant such exemption

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision (a) of section 1115 of the tax law is amended
 by adding a new paragraph 45 to read as follows:
   (45) THE RECEIPTS FROM THE RETAIL SALE OF NEW PLUG-IN HYBRID  ELECTRIC
 VEHICLES.  FOR PURPOSES OF THIS PARAGRAPH THE TERM "PLUG-IN HYBRID ELEC-
 TRIC VEHICLE" MEANS A MOTOR VEHICLE, AS DEFINED IN SECTION  ONE  HUNDRED
 TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, THAT:
   (I) DRAWS PROPULSION USING A TRACTION BATTERY WITH AT LEAST FOUR KILO-
 WATT HOURS OF CAPACITY;
   (II) USES AN EXTERNAL SOURCE OF ENERGY TO RECHARGE SUCH BATTERY;
   (III) THE ORIGINAL USE OF WHICH COMMENCES WITH THE TAXPAYER;
   (IV)  IS ACQUIRED FOR USE OR LEASE BY THE TAXPAYER AND NOT FOR RESALE;
 AND
   (V) IS MADE BY A MANUFACTURER.
   § 2. Section 1160 of the tax law is amended by adding a  new  subdivi-
 sion (c) to read as follows:
   (C) THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN
 PARAGRAPH  FORTY-FIVE  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED
 FIFTEEN OF THIS CHAPTER SHALL NOT APPLY TO OR LIMIT  THE  IMPOSITION  OF
 THE TAX IMPOSED PURSUANT TO THIS ARTICLE.
   §  3.  Subparagraph  (ii) of paragraph 1 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (ii) Any local law, ordinance or resolution enacted by any city, coun-
 ty or school district, imposing the taxes authorized  by  this  subdivi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02299-01-9

 S. 1291                             2
 
 sion,  shall  omit  the  residential  solar energy systems equipment and
 electricity exemption provided for in subdivision (ee),  the  commercial
 solar energy systems equipment and electricity exemption provided for in
 subdivision  (ii),  the  commercial  fuel  cell  electricity  generating
 systems equipment and electricity generated by such equipment  exemption
 provided for in subdivision (kk) and the clothing and footwear exemption
 provided  for  in  paragraph  thirty AND THE NEW PLUG-IN HYBRID ELECTRIC
 VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FIVE  of  subdivision
 (a) of section eleven hundred fifteen of this chapter, unless such city,
 county  or school district elects otherwise as to such residential solar
 energy systems equipment  and  electricity  exemption,  such  commercial
 solar  energy  systems  equipment  and electricity exemption, commercial
 fuel cell  electricity  generating  systems  equipment  and  electricity
 generated  by  such  equipment  exemption  or such clothing and footwear
 exemption OR SUCH NEW PLUG-IN HYBRID ELECTRIC VEHICLE EXEMPTION.
   § 4. Section 1210 of the tax law is amended by adding a  new  subdivi-
 sion (p) to read as follows:
   (P)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
 NANCE OR RESOLUTION TO THE CONTRARY:
   (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
 TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
 EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
 AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
 THE  NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION FROM STATE SALES AND
 COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FIVE OF  SUBDIVISION
 (A)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A
 RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;
 WHEREUPON,  UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND
 (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED
 TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
 ELEVEN  HUNDRED  SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS
 IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND  APPROVED  BY
 THE GOVERNOR.
   (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
 LOCAL LEGISLATIVE BODY) AS FOLLOWS:
   SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
 CONTRACTED  TO  BE  GIVEN  FOR, OR FOR THE USE OF, PROPERTY AND SERVICES
 EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
 FORTY-FIVE OF SUBDIVISION (A) OF SECTION 1115 OF THE NEW  YORK  TAX  LAW
 SHALL  ALSO  BE  EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN
 THIS JURISDICTION.
   SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT (INSERT DATE) AND SHALL
 APPLY TO SALES MADE, SERVICES RENDERED AND USES OCCURRING ON  AND  AFTER
 THAT  DATE  IN ACCORDANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN
 SECTIONS 1106, 1216 AND 1217 OF THE NEW YORK TAX LAW.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.