BILL NUMBER: S2989

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting innovative and
alternative septic systems from sales and use taxes

 
PURPOSE:

To exempt innovative and alternative septic systems from state sales and
use tax.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 1115 of the tax law to exempt innovative and
alternative septic systems from New York State sales and use tax

Section 2 states the effective date.

 
JUSTIFICATION:
              

Nitrogen pollution from cesspools and septic systems has been identified
as the largest single cause of degraded water quality contributing to
beach closures, restrictions on shellfishing, toxic algae blooms, and
massive fish kills. A conventional onsite septic system was never
designed to remove the approximately 40 pounds of nitrogen that can be
discharged per year. Even inland, nitrogen leached from septic systems
will eventually contaminate the groundwater and surface waters. With the
thousands of parcels currently served by polluting cesspools and septic
systems that will not connect to a sewer system, degradation of water
quality can only be reversed by replacing existing systems with new,
individual Innovative and Alternative Onsite Wastewater Treatment
Systems (I/A systems).

Over the past several years, for example, parts of New York like Suffolk
County have been aggressively pursuing the transition to the use of
these new systems. To make the cost of I/A systems that remove nitrogen
to protect water quality more affordable for homeowners, Suffolk County
has developed the Septic Improvement Program where homeowners who decide
to replace their cesspool or septic system with the new technologies
will be eligible for a grant of up to $30,000 to offset the cost of one
of the new systems. Further, homeowners can qualify to finance the
remaining cost of the systems over 15 years at a low fixed interest
rate.

New York State and local municipalities have invested millions of
dollars to protect water quality. In making every effort to continue to
build upon incentives for increased participation, this legislation
proposes that I/A septic systems be exempt from State sales tax.

 
LEGISLATIVE HISTORY:

2021-2022: Similar bill S6416/A7309 - Died in Budget and Revenue/Died in
Ways and Means

 
FISCAL IMPLICATIONS:

To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.