NY State Senate Bill 2021-S535

Senate Bill S535

2021-2022 Legislative Session

Relates to the imposition of the sales tax for purposes of the storage of tangible personal property

download bill text pdf

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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 05, 2022	referred to budget and revenue
Jan 06, 2021	referred to budget and revenue

2021-S535 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S8590

2021-S535 (ACTIVE) - Summary

Relates to the imposition of the sales tax for purposes of the storage of tangible personal property.

2021-S535 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S535

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to the imposition of the sales
tax for purposes of the storage of tangible personal property

 
PURPOSE:

This legislation seeks to clarify that sales tax for the storage of
tangible personal property shall only be charged when the location of
the storage facility itself is located within New York.

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraph 4 of subdivision (c)of section 1105 of the
tax law to notwithstand any other rule or regulation to the contrary the
imposition of sales tax under this paragraph shall only be assessed for
providing a place for the storage of goods/ and or tangible personal
property if the physical location is located fully within the physical

boundaries of New York, without regard to the manner of payment, or
where services arose from, or the length of time of service.

Section 2 is the effective date.

 
JUSTIFICATION:

Recently it has come to the sponsor's attention that there is a Depart-
ment of Tax and Finance Bulletin to allow for the collection of sales
tax for storage facilities outside of New York, that are being used by
New York Businesses and individuals. These facilities already pay sales
tax for the state of which they are located, including a New York sales
tax constitutes a double tax and is also just inconsistent with the law.
This legislation seeks to clarify that regardless of who moves personal
property from New York to a storage facility outside of New York that
while sales tax is charged for the moving of these items, that no sales
tax is charged for the storage of these items in another state.

 
LEGISLATIVE HISTORY:

S. 8590 of 2020; Referred to Senate Rules Committee

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall have been deemed to be
in full force and effect on and after January 1, 2013.

2021-S535 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    535
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- 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 the imposition of the  sales
   tax for purposes of the storage of tangible personal property

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 4 of subdivision (c) of section 1105 of  the  tax
 law, as amended by chapter 72 of the laws of 1971, is amended to read as
 follows:
   (4)  Storing  all  tangible personal property not held for sale in the
 regular course of business and the rental of safe deposit boxes or simi-
 lar space; PROVIDED, NOTWITHSTANDING ANY OTHER RULE OR REGULATION TO THE
 CONTRARY, FOR PURPOSES OF THE IMPOSITION OF THE  SALES  TAX  UNDER  THIS
 PARAGRAPH,  THE  TAX SHALL ONLY BE ASSESSED FOR THE PROVISION OF A PLACE
 FOR THE STORAGE OF GOODS AND/OR TANGIBLE PERSONAL PROPERTY PROVIDED THAT
 THE PHYSICAL LOCATION OF THE STORAGE FACILITY ITSELF THAT  IS  PROVIDING
 THE  SAFEKEEPING  OF GOODS AND/OR TANGIBLE PERSONAL PROPERTY IS ACTUALLY
 LOCATED FULLY WITHIN THE PHYSICAL BOUNDARIES OF THE STATE OF  NEW  YORK,
 WITHOUT  REGARD  TO  THE  MANNER OF PAYMENT, OR WHERE THE SERVICES AROSE
 FROM, OR LENGTH OF TIME  OF  THE  SERVICE,  PROVIDED  THAT  THE  STORAGE
 SERVICE PROVIDED IS NOT STORAGE IN TRANSIT, SHALL SERVE AS THE BASIS FOR
 SUCH IMPOSITION. PROVIDER FURTHER, THE IMPOSITION OF SALES TAX FOR STOR-
 AGE  SERVICES  SHALL  NOT BE APPLICABLE TO ANY OFFSITE SERVICES PROVIDED
 EITHER PRIOR TO, OR SUBSEQUENT TO, THE ONSITE STORAGE AND SAFEKEEPING OF
 GOODS.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after January 1, 2013.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04840-01-1

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