NY State Senate Bill 2019-S836

Senate Bill S836

2019-2020 Legislative Session

Provides sales and use tax exemption for services rendered for the maintenance of certain trucks

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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 finance
Jan 09, 2019	referred to finance

2019-S836 (ACTIVE) - Details

See Assembly Version of this Bill:: A6216
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§1105, 1107, 1108, 1109, 1115 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6617
2011-2012: A5984
2013-2014: A6476
2015-2016: A3567
2017-2018: S3664, A5051
2021-2022: S1694

2019-S836 (ACTIVE) - Summary

Exempts services rendered with respect to the maintenance and repair of trucks having a gross weight exceeding 33,000 pounds from the state portion of the sales and compensating use tax.

2019-S836 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S836

SPONSOR: GALLIVAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to sales and use tax exemption
for services rendered with respect to the maintenance and repair of
trucks having a gross weight exceeding 33,000 pounds

 
PURPOSE:

To provide a sales and use tax exemption from the State portion of such
tax to the sales, lease, maintenance and repair of trucks.

 
SUMMARY OF PROVISIONS:

Section 1 exempts maintenance and repair services performed on certain
trucks from the state sales tax.

Sections 2 through 4 provide that the exception added by Section 1 and
Section 5 of this act do not apply to any local sales tax imposed to

retire MAC bonds pursuant to sections 1107 and 1108 of the Tax Law, nor
to the additional sales tax for a metropolitan commuter transportation
district imposed pursuant to section 1109 of the Tax Law.

Section 5 adds a new paragraph 44 to subdivision (a) of section 1115 of
the Tax Law to exempt from the State portion of the sales and use tax
the purchase or lease of trucks in excess of 33,000 pounds, and the
parts, equipment and other property used to maintain or repair such
trucks.

Section 6 provides that the exception added by Section 1 and Section 5
of this act does not apply to city and county taxes imposed pursuant to
section 1210 of the Tax Law.

Section 7 sets forth the effective date.

 
JUSTIFICATION:

Chapter 755 of 1987 exempted the purchase, lease and repair of heavy
tractors, trailers and semitrailers from State and local sales and use
taxes, used in combinations with gross vehicle weights of over 26,000
pounds, and the property installed thereon for their equipping, mainte-
nance or repair. The purposes of Chapter 755 were to increase the
competitiveness of New York's interstate trucking industry by providing
a sales tax exemption similar to that given in large neighboring states,
to remove the incentive for performing maintenance outside New York and
to encourage the purchase and use of newer, more productive and safer
equipment in New York. Chapter 755 did not, however, provide these
exemptions for other heavy trucks that are not tractor-trailer combina-
tions.

These trucks, such as heavy delivery or dump trucks or vehicles engaged
in a roll off business, pay the same road and fuel taxes, are subject to
the same permits as all tractor and trailer combinations and otherwise
are treated the same as tractor and trailer combinations, but do not
enjoy the same sales tax exempt status. The arguments in support of
Chapter 755 apply equally to all trucks in New York. This bill levels
the competitive playing field for New York State-based truck operators
and thereby will encourage the development and expansion of the trucking
industry in this State.

 
LEGISLATIVE HISTORY:

2017-18: S.3664-A/A.5051-A Reported to Finance/Held in Ways and Means
Committee
2015-16: A.3567 Held for consideration in Ways and Means
2013-14: A.6476 Died in Ways and Means Committee
2011-12: A.5984 Held for consideration in Ways and Means
2009-10: A.6617 Died in Ways and Means Committee
2007-08:  A.5130 Died in Ways and Means Committee
2005-06: A.6313 Died in Ways and Means Committee
2003-04: A.3690 Died in Ways and Means Committee
2001-02: A.4480 Died in Ways and Means Committee
1999-00: A.4820 Died in Ways and Means Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect December 1, 2020; provided however, that the
exemption and exception provided for in sections one through six of this
act shall apply to retail sales or uses occurring on or after December
1, 2020.

2019-S836 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    836
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2019
                                ___________
 
 Introduced  by Sen. GALLIVAN -- 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 sales and use tax  exemption
   for  services  rendered  with respect to the maintenance and repair of
   trucks having a gross weight exceeding 33,000 pounds

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 3 of subdivision (c) of section 1105 of the tax
 law is amended by adding a new subparagraph (xii) to read as follows:
   (XII) SUCH SERVICES RENDERED  WITH  RESPECT  TO  THE  MAINTENANCE  AND
 REPAIR  OF  TRUCKS AND PROPERTY USED BY OR PURCHASED FOR SUCH TRUCKS, AS
 SUCH TRUCKS AND PROPERTY ARE SPECIFIED IN PARAGRAPH FORTY-FIVE OF SUBDI-
 VISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE.
   § 2. Clause 1 of subdivision (b) of section 1107 of the  tax  law,  as
 amended  by  chapter  472  of  the  laws  of 2000, is amended to read as
 follows:
   (1) The exemptions provided for in PARAGRAPH FORTY-FIVE OF SUBDIVISION
 (A) AND subdivision (c) of section eleven hundred fifteen OF THIS  ARTI-
 CLE  AND  THE  EXCEPTION PROVIDED FOR IN SUBPARAGRAPH (XII) OF PARAGRAPH
 THREE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED  FIVE  OF  THIS  PART
 shall  not apply to fuel, gas, electricity, refrigeration and steam, and
 gas, electric, refrigeration and steam service of  whatever  nature  for
 use  or  consumption  directly and exclusively in the production of gas,
 electricity, refrigeration or steam.
   § 3. Subdivision (b) of section 1108 of the  tax  law  is  amended  by
 adding a new paragraph 6 to read as follows:
   (6)  THE EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FIVE OF SUBDIVISION
 (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE AND THE  EXCEPTION
 PROVIDED FOR IN SUBPARAGRAPH (XII) OF PARAGRAPH THREE OF SUBDIVISION (C)
 OF SECTION ELEVEN HUNDRED FIVE OF THIS PART SHALL NOT APPLY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02859-01-9

 S. 836                              2
 
   §  4.  Subdivision  (a)  of section 1109 of the tax law, as amended by
 section 1 of part BB of chapter 61 of the laws of 2005,  is  amended  to
 read as follows:
   (a)  General.  In  addition  to  the  taxes imposed by sections eleven
 hundred five and eleven hundred ten of this  [article]  PART,  there  is
 hereby  imposed within the territorial limits of the metropolitan commu-
 ter transportation district created and established pursuant to  section
 twelve  hundred sixty-two of the public authorities law, and there shall
 be paid, additional taxes, at the rate of three-eighths of one  percent,
 which shall be identical to the taxes imposed by sections eleven hundred
 five  and  eleven  hundred  ten of this [article] PART, EXCEPT THAT WITH
 RESPECT TO THE TAX IMPOSED BY THIS SECTION THE EXEMPTION PROVIDED FOR IN
 PARAGRAPH FORTY-FIVE  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
 FIFTEEN  OF  THIS ARTICLE AND THE EXCEPTION PROVIDED FOR IN SUBPARAGRAPH
 (XII) OF PARAGRAPH THREE OF SUBDIVISION (C) OF  SECTION  ELEVEN  HUNDRED
 FIVE  OF  THIS  PART SHALL NOT APPLY.  Such sections ELEVEN HUNDRED FIVE
 AND ELEVEN HUNDRED TEN OF THIS PART and the other sections of this arti-
 cle, including the definition and THE OTHER exemption provisions,  shall
 apply  for  purposes  of  the  taxes imposed by this section in the same
 manner and with the same force and effect as if the  language  of  those
 sections  had  been  incorporated  in  full  into  this  section and had
 expressly referred to the taxes imposed by this section.
   § 5. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 45 to read as follows:
   (45)  TRUCKS,  AS  SUCH  TERM IS DEFINED IN SECTION ONE HUNDRED FIFTY-
 EIGHT OF THE VEHICLE AND TRAFFIC LAW, WHETHER PURCHASED OR  LEASED,  AND
 PROPERTY  INSTALLED ON SUCH VEHICLES FOR THEIR EQUIPPING, MAINTENANCE OR
 REPAIR, PROVIDED SUCH VEHICLES HAVE A GROSS VEHICLE WEIGHT WHICH EXCEEDS
 THIRTY-THREE THOUSAND POUNDS.
   § 6. The opening paragraph  of  paragraph  1  of  subdivision  (a)  of
 section 1210 of the tax law, as amended by section 2 of part WW of chap-
 ter 60 of the laws of 2016, is amended to read as follows:
   Either,  all  of  the  taxes described in article twenty-eight of this
 chapter, at the same uniform rate, as to which taxes all  provisions  of
 the  local  laws, ordinances or resolutions imposing such taxes shall be
 identical, except as to rate and except as otherwise provided, with  the
 corresponding  provisions  in  such  article twenty-eight, including the
 definition and exemption provisions of such  article,  EXCEPT  THAT  THE
 EXEMPTION PROVIDED IN PARAGRAPH FORTY-FIVE OF SUBDIVISION (A) OF SECTION
 ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER AND THE EXCEPTION PROVIDED FOR IN
 SUBPARAGRAPH  (XII)  OF  PARAGRAPH  THREE  OF SUBDIVISION (C) OF SECTION
 ELEVEN HUNDRED FIVE OF THIS CHAPTER SHALL  NOT  APPLY,  so  far  as  the
 provisions  of  such  article twenty-eight can be made applicable to the
 taxes imposed by such city or  county  and  with  such  limitations  and
 special  provisions  as are set forth in this article. The taxes author-
 ized under this subdivision may not be  imposed  by  a  city  or  county
 unless  the  local law, ordinance or resolution imposes such taxes so as
 to include all portions and all types of  receipts,  charges  or  rents,
 subject  to  state  tax  under  sections  eleven hundred five and eleven
 hundred ten of this chapter, except as otherwise provided.
   § 7. This act shall take effect December 1,  2020;  provided  however,
 that  the  exemption  and exception provided for in sections one through
 six of this act shall apply to retail sales  or  uses  occurring  on  or
 after December 1, 2020.

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