NY State Senate Bill 2019-S3408

Senate Bill S3408

2019-2020 Legislative Session

Relates to when municipalities can enact an exemption or repeal any such exemption for taxes on clothing and footwear

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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 investigations and government operations
Feb 06, 2019	referred to investigations and government operations

2019-S3408 (ACTIVE) - Details

See Assembly Version of this Bill:: A3370
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8038, A10083
2021-2022: A3849

2019-S3408 (ACTIVE) - Summary

Allows municipalities to enact an exemption or repeal any such exemption for taxes on clothing and footwear quarterly instead of yearly.

2019-S3408 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3408

SPONSOR: HARCKHAM
 
TITLE OF BILL:  An act to amend the tax law, in relation to when muni-
cipalities can enact an exemption or repeal any such exemption for taxes
on clothing and footwear

 
PURPOSE:

This bill would allow counties and certain cities in the state of New
York the ability to opt into a state-offered clothing and footwear sales
tax exemption on a quarterly basis during a calendar year.

 
SUMMARY OF PROVISIONS:

In Section 1, subdivision (d) of section 1210 of the tax law is amended
by section 4 of part ww of chapter 60 of laws of 2016 to allow a locali-
ty to enact and repeal a clothing and footwear sales tax exemption on a
quarterly basis. It will go into effect during March first, June
first,September first, or December first.

 
JUSTIFICATION:

New York State clothing and footwear purchases bought for under $110 per
item are exempt from the state's 4% sales tax. This sales tax exemption
runs year-round. The state also allows counties and cities that impose a
sales tax the option to do the same.

Currently, only thirteen of the 62 counties in the state utilize this
sales tax exemption. Only one city in the state utilizes the exemption.

For some local governments, offering this sales tax exemption throughout
the entire year creates too much of a revenue shortfall in their budget.

This bill allows counties and cities the option to choose on a quarterly
basis whether they would like to take advantage of the sales tax
exemption. They can choose to participate during one quarter, two quar-
ters, three quarters, or the entire year.

This will offer greater options and financial flexibility to counties
and qualifying cities, more counties are likely to opt-in, reducing the
regressive nature of this tax on New Yorkers, while encouraging more
business and economic prosperity.

 
LEGISLATIVE HISTORY:

A10083 of 2017-18

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S3408 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3408
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2019
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in  relation  to  when  municipalities  can
   enact  an exemption or repeal any such exemption for taxes on clothing
   and footwear

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision (d) of section 1210 of the tax law, as amended
 by section 4 of part WW of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (d) A local law, ordinance or resolution imposing any tax pursuant  to
 this  section,  increasing or decreasing the rate of such tax, repealing
 or suspending such tax, exempting from such tax the energy  sources  and
 services  described in paragraph three of subdivision (a) or of subdivi-
 sion (b) of this section or changing the rate of  tax  imposed  on  such
 energy  sources  and  services  or  providing  for  the credit or refund
 described in clause six of subdivision (a)  of  section  eleven  hundred
 nineteen  of  this  chapter,  or electing or repealing the exemption for
 residential solar equipment  and  electricity  in  subdivision  (ee)  of
 section  eleven  hundred  fifteen  of this article, or the exemption for
 commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
 section eleven hundred fifteen of this article, or electing or repealing
 the  exemption  for  commercial fuel cell electricity generating systems
 equipment and electricity generated by  such  equipment  in  subdivision
 (kk)  of  section  eleven  hundred  fifteen of this article must go into
 effect only on one of the following  dates:  March  first,  June  first,
 September  first  or  December first; provided, that [a local law, ordi-
 nance or resolution providing for the exemption described  in  paragraph
 thirty  of  subdivision  (a)  of  section eleven hundred fifteen of this
 chapter or repealing any such exemption or] a local  law,  ordinance  or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03097-01-9

 S. 3408                             2
 
 resolution providing for a refund or credit described in subdivision (d)
 of  section  eleven  hundred  nineteen of this chapter or repealing such
 provision so provided must go into effect only on March first.  A  LOCAL
 LAW,  ORDINANCE  OR  RESOLUTION PROVIDING FOR THE EXEMPTION DESCRIBED IN
 PARAGRAPH THIRTY OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
 THIS CHAPTER OR REPEALING ANY SUCH EXEMPTION MUST GO INTO EFFECT ONLY ON
 ONE OF THE FOLLOWING DATES: MARCH FIRST, JUNE FIRST, SEPTEMBER FIRST  OR
 DECEMBER  FIRST.  No  such  local  law, ordinance or resolution shall be
 effective unless a certified copy of such law, ordinance  or  resolution
 is  mailed  by  registered  or certified mail to the commissioner at the
 commissioner's office in Albany at least ninety days prior to  the  date
 it  is  to  become  effective.  However,  the commissioner may waive and
 reduce such ninety-day minimum notice requirement to a mailing  of  such
 certified  copy  by  registered or certified mail within a period of not
 less than thirty days prior to such effective date if  the  commissioner
 deems  such action to be consistent with the commissioner's duties under
 section twelve hundred fifty of this article and the  commissioner  acts
 by  resolution.  Where  the  restriction  provided for in section twelve
 hundred twenty-three of this article as to the effective date of  a  tax
 and  the notice requirement provided for therein are applicable and have
 not been waived, the  restriction  and  notice  requirement  in  section
 twelve hundred twenty-three of this article shall also apply.
   § 2. This act shall take effect immediately.

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