NY State Senate Bill 2019-S3701B

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Jun 16, 2019	print number 3701b
Jun 16, 2019	amend and recommit to budget and revenue
Jun 05, 2019	print number 3701a
Jun 05, 2019	amend (t) and recommit to budget and revenue
Feb 13, 2019	referred to budget and revenue

Bill Amendments

Original

B (Active)

co-Sponsors

2019-S3701 - Details

See Assembly Version of this Bill:: A3726
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1116, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4623, A7647
2021-2022: S2749, A1422
2023-2024: S685, A820

2019-S3701 - Summary

Provides an exemption for tangible personal property and services sold by a cemetery; establishes an amnesty program for cemetery corporations.

2019-S3701 - Sponsor Memo

                                
 
BILL NUMBER: S3701

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing an exemption for
tangible personal property and services sold by a cemetery; in relation
to establishing an amnesty program for cemetery corporations

 
PURPOSE:

To clarify and provide that sales of tangible property and services by
cemetery corporations for exclusive use on the grounds of the cemetery
are not subject to sales tax.

 
SUMMARY OF PROVISIONS:

Section 1 - declaration of policy.

Section 2 - amends subdivision (a) of section 1115 of the Tax Law to add
a new paragraph (7-a) to exclude from sales tax tangible personal prop-

erty and services sold by a cemetery for exclusive use on the grounds
and in the buildings of the cemetery corporation including, but not
limited to, the additional services provided by a cemetery as defined in
paragraph (b) of section 1509 of the Not For Profit Corporation Law and
for the maintenance and preservation of lots, plots and parts thereof.

Section 3 - amends subdivision (a) of section 116 of the Tax Law by
adding a new paragraph (10) to add as organizations exempt from sales
tax cemetery corporations as defined in paragraph (a) of section 1502 of
the Not For Profit Law, including, but not limited to, cemeteries regu-
lated by the Religious Corporations Law, where it is the purchaser, user
or consumer, or where it is the vendor of services or property exclu-
sively to be used on the grounds or buildings of the corporation.

Section 4 - adds a new section 1149 to the Tax Law creating an amnesty
program to waive interest and penalties for previous sales taxes for
periods prior to December 31, 2019 if returns are timely filed and
payment is made by March 15, 2020, or such date as set forth in a bill
previously sent by the Department of Taxation.

 
EXISTING LAW:

Tax Law section 1115 lists certain activities and sales that are exempt
from sales taxes; Tax Law section 1116 lists certain entities that are
exempt from sales taxes.

 
JUSTIFICATION:

Cemeteries in New York are not-for-profit entities. Regulated cemeteries
in the state become the responsibility of local governments should they
become insolvent or face serious financial distress'.  Recently the
Department of Taxation and Finance has conducted audits,IM:.has deter-
mined based upon its interpretation of current sigLtee that sales of
certain goods and services by cemeteries for use within the cemeteries
are subject to sales taxes, even though cemeteries have not regularly,
if ever, been collecting such sales tax. The reviews for such sales have
gone back years to determine sales tax liability.  The Department has
also unofficially opined that certain cemetery services may also be
taxable even though those services only relate to the care of cemetery
property. The cemeteries, not believing that sales tax was due on such
sales, have not been collecting sales taxes from purchasers, and find
themselves with unexpected liabilities with no reasonable way to pay
them.

It is well recognized that many cemeteries across the state are facing
financial difficulties. Underfunded endowment funds, coupled with low
rates of return because of continuing low interest rates, have meant
that cemeteries are struggling and the failed cemetery operations must
be assumed by the localities where they are located. Unexpected imposi-
tion of sales taxes coupled with high penalties and interest will jeop-
ardize the fiscal wellbeing of additional cemeteries. Such costs then
become a continuing burden and unfunded mandate on local taxpayers. This
bill clarifies what New York's not-for-profit cemeteries generally
understood to be the law.

 
LEGISLATIVE HISTORY:

2017-18 - S.4623/A.7647 - PASSED SENATE/Ways & Means.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2019-S3701 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3701
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2019
                                ___________
 
 Introduced by Sens. COMRIE, RANZENHOFER -- read twice and ordered print-
   ed,  and  when  printed to be committed to the Committee on Budget and
   Revenue
 
 AN ACT to amend the tax law, in relation to providing an  exemption  for
   tangible  personal  property  and  services  sold  by  a  cemetery; in
   relation to establishing an amnesty program for cemetery corporations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Declaration  of  policy.  The people of this state have a
 vital interest in the maintenance and preservation  of  cemetery  corpo-
 rations  to  prevent  them from becoming a burden upon local governments
 and the community. The preservation of cemetery funds is  vital  to  the
 long-term  maintenance  and  preservation  of  these  burial  grounds to
 prevent abandonment and dilapidation. In order to preserve  this  order,
 and  the uniqueness of cemetery corporations, clarifications of cemetery
 sales tax collections are necessary.
   § 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 7-a to read as follows:
   (7-A)  TANGIBLE  PERSONAL PROPERTY AND SERVICES SOLD BY A CEMETERY FOR
 THE EXCLUSIVE USE ON THE GROUNDS AND IN THE BUILDINGS  OF  THE  CEMETERY
 CORPORATION  INCLUDING  BUT  NOT  LIMITED  TO  THE  ADDITIONAL  SERVICES
 PROVIDED BY A CEMETERY AS DEFINED IN PARAGRAPH (B)  OF  SECTION  FIFTEEN
 HUNDRED  NINE  OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR THE MAINTE-
 NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF.
   § 3. Subdivision (a) of section 1116 of the  tax  law  is  amended  by
 adding a new paragraph 10 to read as follows:
   (10)  A  CEMETERY  CORPORATION, AS DEFINED IN PARAGRAPH (A) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
 NOT LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS  CORPORATIONS
 LAW  WHERE  IT  IS  THE PURCHASER, USER, OR CONSUMER, OR WHERE IT IS THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01251-01-9

 S. 3701                             2
 
 VENDOR OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS  OR
 BUILDINGS OF THE CORPORATION.
   §  4.  The  tax law is amended by adding a new section 1149 to read as
 follows:
   § 1149. AMNESTY PROGRAM. (A) NOTWITHSTANDING  THE  PROVISIONS  OF  ANY
 OTHER  LAW  TO  THE  CONTRARY,  THERE  IS  HEREBY ESTABLISHED AN AMNESTY
 PROGRAM AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER,  TO
 BE  EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR ALL
 ELIGIBLE TAXPAYERS AS DESCRIBED  HEREIN,  OWING  ANY  TAX  OR  SURCHARGE
 IMPOSED  OR  FORMERLY IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN
 HUNDRED TEN OF THIS ARTICLE, AND ADMINISTERED BY SUCH COMMISSIONER.
   (B) SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE  TAXES
 SET FORTH IN SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS
 ARTICLE  FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON
 OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN.
   (C) FOR  PURPOSES  OF  THE  AMNESTY  PROGRAM  ESTABLISHED  UNDER  THIS
 SECTION,  AN  ELIGIBLE  TAXPAYER IS A CEMETERY CORPORATION AS DEFINED BY
 PARAGRAPH (A) OF SECTION  FIFTEEN  HUNDRED  TWO  OF  THE  NOT-FOR-PROFIT
 CORPORATION  LAW  WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO ONE OR
 MORE OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN  SUBDI-
 VISION (B) OF THIS SECTION.
   (D)  THE  AMNESTY  PROGRAM ESTABLISHED HEREIN SHALL PROVIDE, THAT UPON
 APPLICATION, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS
 SHALL BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY  THE
 COMMISSIONER, BY AN ELIGIBLE TAXPAYER, AND UPON PAYMENT IN SUCH FORM AND
 IN  SUCH  MANNER AS PRESCRIBED BY SUCH COMMISSIONER, WHICH PAYMENT SHALL
 EITHER ACCOMPANY SUCH APPLICATION OR BE MADE WITHIN THE TIME STATED ON A
 BILL ISSUED BY SUCH COMMISSIONER TO SUCH TAXPAYER, OF THE  AMOUNT  OF  A
 TAX  LIABILITY UNDER ONE OR MORE OF THE DESIGNATED TAXES WITH RESPECT TO
 WHICH AMNESTY IS SOUGHT, SUCH COMMISSIONER SHALL  WAIVE  ANY  APPLICABLE
 PENALTIES  AND  INTEREST  (INCLUDING  THE  ADDITIONAL  RATE  OF INTEREST
 PRESCRIBED UNDER SECTION ELEVEN HUNDRED FORTY-FIVE  OF  THIS  PART).  IN
 ADDITION,  NO  CIVIL,  ADMINISTRATIVE  OR  CRIMINAL ACTION OR PROCEEDING
 SHALL BE BROUGHT AGAINST SUCH AN ELIGIBLE TAXPAYER RELATING TO  THE  TAX
 LIABILITY  COVERED  BY SUCH WAIVER. FAILURE TO PAY ALL SUCH TAXES BY THE
 LATER OF MARCH FIFTEENTH, TWO THOUSAND TWENTY, OR  THE  DATE  PRESCRIBED
 THEREFOR  ON  A  BILL  ISSUED BY SUCH COMMISSIONER, SHALL INVALIDATE ANY
 AMNESTY GRANTED PURSUANT TO THE AMNESTY PROGRAM ESTABLISHED  UNDER  THIS
 SECTION.
   (E) AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA-
 TION  AND  BE  SUBMITTED  AS  PRESCRIBED  BY  THE COMMISSIONER AND SHALL
 PROVIDE FOR SPECIFICATIONS BY THE APPLICANT OF THE  TAX  LIABILITY  WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH
 ADDITIONAL  INFORMATION  AS  IS  REQUIRED BY SUCH COMMISSIONER.  AMNESTY
 SHALL BE GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES  SPECIFIED  BY
 THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY
 PROGRAM  ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT AS
 PROVIDED BY STATUTE. IF THE APPLICANT FILES A FALSE  OR  FRAUDULENT  TAX
 RETURN  OR  REPORT,  OR  ATTEMPTS IN ANY MANNER TO DEFEAT OR EVADE A TAX
 UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED.
   (F) WITH RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT  OF  AN
 ELIGIBLE  TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY
 TERMS OF SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS  A  CONDITION
 OF  RECEIVING  AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY THE LATER

 S. 3701                             3
 
 OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED
 THEREFOR ON A BILL ISSUED BY THE COMMISSIONER.
   (G)  THE  COMMISSIONER  MAY  PROMULGATE  REGULATIONS,  ISSUE FORMS AND
 INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY  TO  IMPLEMENT
 THE  PROVISIONS  OF  THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
 SUCH COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM  PROVIDED  FOR  IN
 THIS  SECTION SO AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN
 SUCH PROGRAM.
   § 5. On or before February 28, 2022, the commissioner of taxation  and
 finance  shall  submit  a report to the chairperson of the assembly ways
 and means committee, the ranking minority member of  the  assembly  ways
 and  means  committee,  the chairperson of the senate finance committee,
 the ranking minority member of the  senate  finance  committee  and  the
 director  of the budget regarding the amnesty program established pursu-
 ant to this act. The report shall contain the following  information  as
 of  the  report cutoff date:  (i) the gross revenue collected under each
 tax and the year or other applicable period  for  or  during  which  the
 liability  was  incurred; (ii) the amount of money spent on advertising,
 notification,  and  outreach  activities,  by  each  activity,   and   a
 description  of  the form and content of such activities, by each activ-
 ity; (iii) the amount paid by the department of taxation and finance for
 services and expenses  related  to  the  establishment  of  the  amnesty
 program;  and  (iv)  an  estimate  of the net revenue generated from the
 amnesty program.
   § 6. This act shall take effect immediately.

co-Sponsors

2019-S3701A - Details

See Assembly Version of this Bill:: A3726
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1116, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4623, A7647
2021-2022: S2749, A1422
2023-2024: S685, A820

2019-S3701A - Summary

Provides an exemption for tangible personal property and services sold by a cemetery; establishes an amnesty program for cemetery corporations.

2019-S3701A - Sponsor Memo

                                
 
BILL NUMBER: S3701A

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing an exemption for
tangible personal property and services sold by a cemetery

 
SUMMARY OF PROVISIONS:

Section 1 - declaration of policy.

Section 2 - amends subdivision (a) of section 1115 of the Tax Law to add
a new paragraph (7-a) to exclude from sales tax tangible personal prop-
erty and services sold by a cemetery for exclusive use on the grounds
and in the buildings of the cemetery corporation including, but not
limited to, the additional services provided by a cemetery as defined in
paragraph (b) of section 1509 of the Not For Profit Corporation Law and
for the maintenance and preservation of lots, plots and parts thereof.

Section 3 - amends subdivision (a) of section 116 of the Tax Law by
adding a new paragraph (10) to add as organizations exempt from sales

tax cemetery corporations as defined in paragraph (a) of section 1502 of
the Not For Profit Law, including, but not limited to, cemeteries regu-
lated by the Religious Corporations Law, where it is the purchaser, user
or consumer, or where it is the vendor of services or property exclu-
sively to be used on the grounds or buildings of the corporation.

Section 4 - Effective date.

 
EXISTING LAW

Tax Law section 1115 lists certain activities and sales that are exempt
from sales taxes; Tax Law section 1116 lists certain entities that are
exempt from sales taxes.

 
JUSTIFICATION:

Cemeteries in New York are not-for-profit entities. Regulated cemeteries
in the state become the responsibility of local governments should they
become insolvent or face serious financial distress. Recently the
Department of Taxation and Finance has conducted audits and has deter-
mined based upon its interpretation of current statues that sales of
certain goods and services by cemeteries for use within the cemeteries
are subject to sales taxes, even though cemeteries have not regularly,
if ever, been collecting such sales tax. The reviews for such sales have
gone back years to determine sales tax liability. The Department has
also unofficially opined that certain cemetery services may also be
taxable even though those services only relate to the care of cemetery
property. The cemeteries, not believing that sales tax was due on such
sales, have not been collecting sales taxes from purchasers, and find
themselves with unexpected liabilities with no reasonable way to pay
them.

It is well recognized that many cemeteries across the state are facing
financial difficulties. Underfunded endowment funds, coupled with low
rates of return because of continuing low interest rates, have meant
that cemeteries are struggling and the failed cemetery operations must
be assumed by the localities where they are located. Unexpected imposi-
tion of sales taxes coupled with high penalties and interest will jeop-
ardize the fiscal wellbeing of additional cemeteries. Such costs then
become a continuing burden and unfunded mandate on local taxpayers. This
bill clarifies what New York's not-for-profit cemeteries generally
understood to be the law.

 
LEGISLATIVE HISTORY:

2017-18 Similar Bill S.4623/A.7647 - PASSED SENATE/Ways & Means.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2019-S3701A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3701--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2019
                                ___________
 
 Introduced  by  Sens.  COMRIE,  RANZENHOFER,  STAVISKY -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Budget  and  Revenue  --  committee  discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to providing an  exemption  for
   tangible personal property and services sold by a cemetery
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Declaration of policy. The people  of  this  state  have  a
 vital  interest  in  the maintenance and preservation of cemetery corpo-
 rations to prevent them from becoming a burden  upon  local  governments
 and  the  community.  The preservation of cemetery funds is vital to the
 long-term maintenance  and  preservation  of  these  burial  grounds  to
 prevent  abandonment  and dilapidation. In order to preserve this order,
 and the uniqueness of cemetery corporations, clarifications of  cemetery
 sales tax collections are necessary.
   §  2.  Subdivision  (a)  of  section 1115 of the tax law is amended by
 adding a new paragraph 7-a to read as follows:
   (7-A) TANGIBLE PERSONAL PROPERTY AND SERVICES SOLD BY A  CEMETERY  FOR
 THE  EXCLUSIVE  USE  ON THE GROUNDS AND IN THE BUILDINGS OF THE CEMETERY
 CORPORATION  INCLUDING  BUT  NOT  LIMITED  TO  THE  ADDITIONAL  SERVICES
 PROVIDED  BY  A  CEMETERY AS DEFINED IN PARAGRAPH (B) OF SECTION FIFTEEN
 HUNDRED NINE OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR  THE  MAINTE-
 NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF.
   §  3.  Subdivision  (a)  of  section 1116 of the tax law is amended by
 adding a new paragraph 10 to read as follows:
   (10) A CEMETERY CORPORATION, AS DEFINED IN PARAGRAPH  (A)  OF  SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
 NOT  LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS CORPORATIONS
 LAW WHERE IT IS THE PURCHASER, USER, OR CONSUMER, OR  WHERE  IT  IS  THE
 VENDOR  OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS OR
 BUILDINGS OF THE CORPORATION.
   § 4. This act shall take effect immediately.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01251-02-9

co-Sponsors

2019-S3701B (ACTIVE) - Details

See Assembly Version of this Bill:: A3726
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1116, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4623, A7647
2021-2022: S2749, A1422
2023-2024: S685, A820

2019-S3701B (ACTIVE) - Summary

Provides an exemption for tangible personal property and services sold by a cemetery; establishes an amnesty program for cemetery corporations.

2019-S3701B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3701B

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the tax law, in relation to providing
an exemption for tangible personal property and services sold by a ceme-
tery

 
SUMMARY OF PROVISIONS:

Section 1 - declaration of,policy.

Section 2 - amends subdivision (a) of section 1115 of the Tax Law to add
a new paragraph (7-a) to exclude from sales tax tangible personal prop-
erty and services sold by a cemetery with rates already approved by the
State Cemetery Board for exclusive use on the grounds and in the build-
ings of the cemetery corporation including, but not limited to, the
additional services provided by a cemetery as defined in paragraph (b)
of section 1509 of the Not For Profit Corporation Law and for the main-
tenance and preservation of lots, plots and parts thereof.

Section 3 - amends subdivision (a) of section 116 of the Tax Law by
adding a new paragraph (10) to add as organizations exempt from sales

tax cemetery corporations as defined in paragraph (a) of section 1502 of
the Not For Profit Law, including, but not limited to, cemeteries regu-
lated by the Religious Corporations Law, where it is the purchaser, user
or consumer, or where it is the vendor of services or property exclu-
sively to be used on the grounds or buildings of the corporation.

Section 4 - Effective date.

 
EXISTING LAW

Tax Law section 1115 lists certain activities and sales that are exempt
from sales taxes; Tax Law section 1116 lists certain entities that are
exempt from sales taxes.

 
JUSTIFICATION:

Cemeteries in New York are not-for-profit entities. Regulated cemeteries
in the state become the responsibility of local governments should they
become insolvent or face serious financial distress.  Recently the
Department of Taxation and Finance has conducted audits and has deter-
mined based upon its interpretation of current statues that sales of
certain goods and services by cemeteries for use within the cemeteries
are subject to sales taxes, even though cemeteries have not regularly,
if ever, been collecting such sales tax. The reviews for such sales have
gone back years to determine sales tax liability. The Department has
also unofficially opined that certain cemetery services may also be
taxable even though those services only relate to the care of cemetery
property. The cemeteries, not believing that sales tax was due on such
sales, have not been collecting sales taxes from purchasers, and find
themselves with unexpected liabilities with no reasonable way to pay
them.

It is well recognized that many cemeteries across the state are facing
financial difficulties. Underfunded endowment funds, coupled with low
rates of return because of continuing low interest rates, have meant
that cemeteries are struggling and the failed cemetery operations must
be assumed by the localities where they are located.  Unexpected imposi-
tion of sales taxes coupled with high penalties and interest will jeop-
ardize the fiscal wellbeing of additional cemeteries. Such costs then
become a continuing burden and unfunded mandate on local taxpayers.
This bill clarifies what New York's not-for-profit cemeteries generally
understood to be the law.

 
LEGISLATIVE HISTORY:

2017-18 Similar Bill S.4623/A.7647 - PASSED SENATE/Ways & Means.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2019-S3701B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3701--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2019
                                ___________
 
 Introduced  by  Sens.  COMRIE,  RANZENHOFER,  STAVISKY -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Budget  and  Revenue  --  committee  discharged, bill amended, ordered
   reprinted as amended and recommitted to said  committee  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the tax law, in relation to providing an exemption for
   tangible personal property and services sold by a cemetery
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Declaration  of  policy.  The people of this state have a
 vital interest in the maintenance and preservation  of  cemetery  corpo-
 rations  to  prevent  them from becoming a burden upon local governments
 and the community. The preservation of cemetery funds is  vital  to  the
 long-term  maintenance  and  preservation  of  these  burial  grounds to
 prevent abandonment and dilapidation. In order to preserve  this  order,
 and  the uniqueness of cemetery corporations, clarifications of cemetery
 sales tax collections are necessary.
   § 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 7-a to read as follows:
   (7-A)  TANGIBLE  PERSONAL PROPERTY AND SERVICES WITH CHARGES AND RATES
 THAT HAVE BEEN SUBMITTED AND APPROVED BY THE STATE  CEMETERY  BOARD  AND
 THAT  ARE SOLD BY A CEMETERY FOR THE EXCLUSIVE USE ON THE GROUNDS AND IN
 THE BUILDINGS OF THE CEMETERY CORPORATION INCLUDING BUT NOT  LIMITED  TO
 THE  ADDITIONAL  SERVICES PROVIDED BY A CEMETERY AS DEFINED IN PARAGRAPH
 (B) OF SECTION FIFTEEN HUNDRED NINE OF  THE  NOT-FOR-PROFIT  CORPORATION
 LAW  AND  FOR  THE MAINTENANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS
 THEREOF.
   § 3. Subdivision (a) of section 1116 of the  tax  law  is  amended  by
 adding a new paragraph 10 to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01251-05-9

 S. 3701--B                          2
 
   (10)  A  CEMETERY  CORPORATION, AS DEFINED IN PARAGRAPH (A) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
 NOT LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS  CORPORATIONS
 LAW  WHERE  IT  IS  THE PURCHASER, USER, OR CONSUMER, OR WHERE IT IS THE
 VENDOR  OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS OR
 BUILDINGS OF THE CORPORATION.
   § 4. This act shall take effect immediately.

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Senate Bill S3701B

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

2019-S3701 - Details

2019-S3701 - Summary

2019-S3701 - Sponsor Memo

2019-S3701 - Bill Text download pdf

co-Sponsors

2019-S3701A - Details

2019-S3701A - Summary

2019-S3701A - Sponsor Memo

2019-S3701A - Bill Text download pdf

co-Sponsors

2019-S3701B (ACTIVE) - Details

2019-S3701B (ACTIVE) - Summary

2019-S3701B (ACTIVE) - Sponsor Memo

2019-S3701B (ACTIVE) - Bill Text download pdf

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Senate Bill S3701B

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

Michael H. Ranzenhofer

Toby Ann Stavisky

2019-S3701 - Details

2019-S3701 - Summary

2019-S3701 - Sponsor Memo

2019-S3701 - Bill Text download pdf

co-Sponsors

Michael H. Ranzenhofer

Toby Ann Stavisky

2019-S3701A - Details

2019-S3701A - Summary

2019-S3701A - Sponsor Memo

2019-S3701A - Bill Text download pdf

co-Sponsors

Michael H. Ranzenhofer

Toby Ann Stavisky

2019-S3701B (ACTIVE) - Details

2019-S3701B (ACTIVE) - Summary

2019-S3701B (ACTIVE) - Sponsor Memo

2019-S3701B (ACTIVE) - Bill Text download pdf

Comments