senate Bill S3067

2019-2020 Legislative Session

Relates to terminal rental adjustment clauses in motor vehicle leases

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Sponsored By

Current Bill Status - In Senate Committee Finance Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 12, 2019 reported and committed to finance
Feb 01, 2019 referred to budget and revenue

Votes

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Mar 12, 2019 - committee Vote

S3067
5
0
committee
5
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Mar 12, 2019

aye wr (1)

Co-Sponsors

S3067 (ACTIVE) - Details

See Assembly Version of this Bill:
A4070
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd §1111, Tax L

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

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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