|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Mar 12, 2019||reported and committed to finance|
|Feb 01, 2019||referred to budget and revenue|
senate Bill S3067
Current Bill Status - In Senate Committee Finance Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S3067 (ACTIVE) - Details
S3067 (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.
S3067 (ACTIVE) - Sponsor Memo
BILL NUMBER: S3067 SPONSOR: BRESLIN TITLE OF BILL: An act to amend the tax law, in relation to terminal rental adjustment clauses in motor vehicle leases PURPOSE: To clarify how sales taxes must be calculated and remitted under termi- nal rental adjustment lease agreements. SUMMARY OF PROVISIONS: Section 1 of the bill would clarify the Tax Law to state that under vehicle leases containing a terminal rental adjustment clause, any increase in the consideration given upon termination of the lease shall be subject to tax and any decrease in the consideration upon termination of the lease shall allow the lessor to claim a credit or refund of tax on such amount.
S3067 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3067 2019-2020 Regular Sessions I N S E N A T E February 1, 2019 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue 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.
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