Relates to the tax on receipts derived from removing waste from certain transfer stations or debris processing facilities.

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S5235A-2011 Actions

• Jun 21, 2012: SUBSTITUTED BY A7144B
• Jun 18, 2012: AMENDED ON THIRD READING 5235A
• Jun 18, 2012: VOTE RECONSIDERED - RESTORED TO THIRD READING
• Jun 18, 2012: returned to senate
• Jun 18, 2012: RECALLED FROM ASSEMBLY
• Jun 12, 2012: referred to ways and means
• Jun 12, 2012: DELIVERED TO ASSEMBLY
• Jun 12, 2012: PASSED SENATE
• Jun 12, 2012: ORDERED TO THIRD READING CAL.1193
• Jun 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jan 9, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 20, 2011: referred to ways and means
• Jun 20, 2011: DELIVERED TO ASSEMBLY
• Jun 20, 2011: PASSED SENATE
• Jun 20, 2011: ORDERED TO THIRD READING CAL.1388
• Jun 20, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jun 2, 2011: REPORTED AND COMMITTED TO FINANCE
• May 3, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S5235A-2011 Calendars

Active List: Jun 21, 2012 , Floor Calendar: Jun 19, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S5235A-2011 Votes

S5235A-2011 Memo

BILL NUMBER:S5235A

TITLE OF BILL:
An act relating to the sales and compensating use tax on receipts
derived from removing waste material from certain regulated transfer
stations or construction and demolition debris processing facilities

PURPOSE:
To reaffirm the intention of the legislature that the services of
removing waste material from a waste transfer station or a
construction and demolition debris processing facility, where the
waste removed was not generated by said facility, was not subject to
New York State and local sales taxes as the service of maintaining,
servicing or repairing the real property of those facilities, and
ensure a uniform policy with regard to such services.

SUMMARY OF PROVISIONS:
Section 1 of the bill provides that any liability for state and local
sales and compensating use taxes with respect to the services of
removing waste material from a waste transfer station or construction
and demolition debris processing facility regulated by the NYS
Department of Environmental Conservation, where the waste removed was
not generated by said facility, for assessments made after April 1,
1997.

Section 2 of the bill provides that the act shall take effect
immediately.

JUSTIFICATION:
One of the categories of enumerated services that are subject to sales
tax is the maintaining, servicing or repairing of real property. These
are services that relate to keeping real property in a condition of
fitness, efficiency, readiness or safety, or restoring it to such
condition. Examples of such services would be painting, lawn
maintenance and tree spraying as well as plumbing or electrical
repairs.  The removal of trash or garbage is also considered to be
such a taxable service.

Once trash is taken from a home or business property, it is often
taken to a transfer station, regulated by the NYS Department of
Environmental Conservation, where it is sorted and combined with
refuse taken from other facilities so that it can be economically
shipped in bulk to its ultimate destination. Previously, the question
was raised as to whether this subsequent bulk shipment was merely a
nontaxable transportation service or should be considered by itself as
a taxable maintenance service to the real property of the transfer
station. In May of 1997, an Advisory Opinion was issued by the
Department of Taxation and Finance that considered it to be such a
taxable service. TSB-A97(32)S.

That Advisory Opinion contains a strained interpretation of the Tax
Law that is beyond that contemplated by the Legislature when it sought
to impose a tax on the services of maintaining real property.  For
that reason, the legislature passed a law in 2005 to specifically
exclude such services from taxation. This bill seeks to address the
tax status for the services of such waste removal from a transfer


station for the period between the issuance of the Advisory Opinion
and the effective date of Chapter 321 of the Laws of 2005 to solidify
one cohesive policy and cease the continued application of sales and
compensating use tax by the Department of Taxation and Finance for
this period.

FISCAL IMPLICATIONS:
To be determined.

PRIOR LEGISLATIVE HISTORY:
This is a new bill.

EFFECTIVE DATE:
This act shall take effect immediately.

S5235A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   5235--A
      Cal. No. 1193

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 May 3, 2011
                                 ___________

  Introduced  by  Sens. MARTINS, GOLDEN, JOHNSON, ZELDIN -- read twice and
    ordered printed, and when printed to be committed to the Committee  on
    Investigations and Government Operations -- recommitted to the Commit-
    tee  on  Investigations  and  Government Operations in accordance with
    Senate Rule 6, sec. 8 -- reported favorably from  said  committee  and
    committed to the Committee on Finance -- committee discharged and said
    bill  committed  to  the Committee on Rules -- reported favorably from
    said committee, ordered to a  third  reading,  passed  by  Senate  and
    delivered  to  the  Assembly, recalled, vote reconsidered, restored to
    third reading, amended and ordered reprinted, retaining its  place  in
    the order of third reading

  AN  ACT  relating  to  the  sales  and  compensating use tax on receipts
    derived from removing waste material from certain  regulated  transfer
    stations or construction and demolition debris processing facilities

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


    Section 1. Notwithstanding the provisions of chapter 321 of  the  laws
  of  2005,  any  liability for state and local sales and compensating use
  taxes, and any interest or penalties thereon, for services specified  in
  clause (iv) of paragraph 5 of subdivision (c) of section 1105 of the tax
  law,  with  respect  to assessments made after March 1, 1997, whether or
  not any assessment for such  taxes,  interest  or  penalties  have  been
  finally  or irrevocably fixed by administrative or judicial proceedings,
  shall hereby be cancelled and  annulled,  provided,  however,  that  any
  taxes, interest or penalty heretofore paid with respect to such services
  shall not be entitled to be credited or refunded.
    S 2. This act shall take effect immediately.


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD10194-06-2