S3509-2011 Actions

• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Feb 24, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3509-2011 Memo

BILL NUMBER:S3509

TITLE OF BILL:
An act
to amend the tax law, in relation to the sales tax exemption for car
wash facilities

PURPOSE:
To expand the sales tax exemption for coin-operated car wash
services to authorize the exemption where payment is made by credit
or debit card.

SUMMARY OF PROVISIONS:
Amends section 115(t)(3) of the tax law to
include services operated by a credit or debit card machine within
the definition of "coin-operated."

JUSTIFICATION:
Under current law, coin-operated car wash services are
exempt from sales tax. "Coin-operated" is defined to include
coin-operated, currency-operated or token operated, but does not
include credit or debit card machine transactions. If a coin-operated
car wash business adds equipment to authorize payment by credit or
debit card. then the coin operated services are not subject to sales
tax under current law, but the services paid for through the credit
or debit card machine are subject to sales tax. This requires a
separate accounting for the credit or debit card transactions, with
the associated additional burdens for the car wash business owner.
Car wash businesses install credit or debit card machines as a
convenience to consumers and they should not be required to pay sales
tax on these services, which would otherwise be exempt from sales
taxation, because they are offering a more modem mode of payment as a
convenience to the consumer.

In addition, when sales tax is required to be paid all car wash
services paid for through credit or debit card machines, the car wash
business is subject to double taxation because it must also pay sales
tax on the products and equipment purchased to provide the car wash.
It is inequitable to tax these small businessmen at two levels in the
chain of commerce and this bill would remedy this inequity.

LEGISLATIVE HISTORY:
A.4757 of 2009/2010: Referred to Ways and Means;
S.4791/A.8397 of 2007/2008: Veto Memo 41

FISCAL IMPLICATIONS:
Undetermined.

EFFECTIVE DATE:
This act shall take effect on the first day of a sales
tax quarterly period as described in subdivision (b) of section 1136
of the tax law, occurring at least sixty days after this act shall
have become a law.

S3509-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         3509
 2011-2012 Regular Sessions
 I N  SENATE
 February 24, 2011
 
 Introduced  by  Sen.  SEWARD -- 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 the sales tax exemption  for
 car wash facilities
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Paragraph 3 of subdivision (t) of section 1115 of  the  tax
 law,  as  amended by chapter 489 of the laws of 2003, is amended to read
 as follows:

 (3)  For  purposes  of  this  subdivision,  the  term  "coin-operated"
 includes  coin-operated, currency-operated [or], token-operated OR OPER
 ATED BY A CREDIT OR DEBIT CARD MACHINE  and  the  term  "motor  vehicle"
 shall  mean  a  motor  vehicle  as defined in subdivision (f) of section
 eleven hundred thirty-two of this article.
 

S 2. This act shall take effect on the first day of a sales tax  quar
 terly  period as described in subdivision (b) of section 1136 of the tax
 law, occurring at least sixty days after this act shall  have  become  a
 law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05225-01-1

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