BILL NUMBER: S5230

SPONSOR: SALAZAR
 
TITLE OF BILL:  An act to amend the tax law, in relation to enacting
the "disaster preparedness and emergency planning act" relating to
establishing a local sales and use tax exemption for emergency prepared-
ness supplies

 
PURPOSE:

Creates incentives for New Yorker residents and business owners to
prepare themselves for natural or man made disasters which are becoming
more prevalent.

 
SUMMARY OF PROVISIONS:

Section 1: This act shall be known and may be cited as the "Disaster
Preparedness and Emergency Planning Act".

Section 2: Section 1210 of the tax law is amended by adding subdivision
(n) which authorizes, at their own discretion, counties and cities in
              

the State to provide an exemption from sales tax and compensating use
tax on supplies for emergency preparedness by enacting a resolution in
the form set forth in paragraph two of this subdivision.

Section 3: The division of homeland security and emergency services, in
conjunction with the department of taxation and finance, shall estab-
lish, publish and promote online a list of items eligible for the sales
and use tax exemption for emergency preparedness supplies.  Such list
shall be derived from, but not limited to, information published by
Federal Emergency Management Agency (FEMA) and the American Red Cross
relating to supplies necessary for the preparation of homes and busi-
nesses in the event of a natural or man-made emergency.

Section 4: Sets forth effective dates

 
JUSTIFICATION:

A recent national survey on disaster preparedness commissioned by the
Federal Emergency Management Administration (FEMA) has highlighted the
lack of preparations for an emergency by families and individuals and
the role family/individual income plays in being prepared with emergency
supplies to cope with a potential natural or man-made emergency. The
survey also revealed that there is an over-reliance on the belief that
first-responders will be able to answer every call for help during an
emergency.

In view of these findings, it becomes obvious that government must do
more to help the citizenry be better prepared to deal with emergencies.
Therefore, creating two, one-week sales and use tax free weeks for the
purchase of emergency supplies will help promote emergency preparedness
and make the items needed more affordable.

This legislation, like other fiscal policy, aims at using the tax code
to shape positive behavior. The fact is that in the event of a major
disaster it will be impossible for first responders to address the needs
of countless citizens in need of immediate assistance.


Government can help ensure citizens are better prepared and able to help
themselves until first responders are able to assist victims of a disas-
ter. By doing so, lives can be saved, vital resources can be assigned
based on priorities dictated by the emergency/disaster, and first
responders and their resources will not be placed under tremendous
strains.

According to FEMA, of individuals feel that preparation, planning, and
emergency supplies would help them handle a natural disaster, but that
preparation has been made by roughly of the population, with the
percentage dropping significantly based on age, demographics and income
levels.

In measuring preparedness, FEMA found the data indicate a direct
relationship between income level and preparedness: as income increased
so did measures of preparedness.

Household incomes of $50,000 or more were more likely than those with a
lesser income to have disaster supplies in their cars, a household
disaster plan, communicated this plan with others, volunteered to help
in a disaster, taken a preparedness training or CPR course, communicated
the importance of preparing to someone else, and believe that prepared-
ness would actually help them handle a disaster situation.

Conversely, those with lower household incomes were less likely to have
taken preparedness measures and indicated an increased need for help in
an evacuation. Individuals with lower household incomes were less likely
to have been prepared during the past six months, and they were more
likely to cite cost as a barrier to preparing than were those with high-
er incomes.

Another finding that should be a wake-up call to policy makers is this:
40% of individuals in FEMA's survey think that a natural disaster would
ever affect their community and only 14% of individuals felt a terrorist
act would ever occur in their community.  These low levels of perceived
susceptibility were also echoed in the responses related to a severe
disease outbreak and hazardous materials accident.

Obviously more needs to be done to promote disaster/emergency prepared-
ness and to make more affordable some of the critical supplies needed to
survive such events. This legislation aims to do both.

 
LEGISLATIVE HISTORY:

2017: S.6769 - Passed Senate / A.4207 - Referred to Ways & Means
2016: S.3736A - Died on Third Reading Calendar / A.9787 - Referred to
Ways & Means
2014: S.4773C - Referred to Investigations & Government Operations
/A.6532B - Referred to W&M Means

 
FISCAL IMPLICATIONS:

TBD. However, the cost to NYS of not having its citizens better prepared
to withstand a natural or man-made emergency would be much costlier as
described above.

 
EFFECTIVE DATE:
This act shall take effect immediately provided that the provisions
required by section three shall be completed by April 1, 2020.