Sponsor:
JOHNSON O
Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law
Committee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law
S2411 Summary
Exempts from sales and compensating use taxes containers, compactors, portable toilets sold to and for use by persons performing waste removal or portable toilet services.S2411 Actions
S2411A - AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS - Jun 3, 2009S2411A - PRINT NUMBER 2411A - Jun 3, 2009
S2411 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS - Feb 19, 2009
S2411 Memo
BILL NUMBER: S2411
TITLE OF BILL : An act to amend the tax law, in relation to exempting containers, compactors and portable toilets sold to persons performing waste removal or portable toilet service from sales and compensating use taxes
PURPOSE : To exclude waste containers, waste compactors and portable toilets sold to persons performing waste removal and portable toilet services from sales and compensating use taxes.
SUMMARY OF PROVISIONS :
Section 1 of the bill adds a new subdivision (hh) to section 1115 of the Tax Law to exempt containers, compactors and portable toilets sold to persons performing waste removal or portable toilet services from sales and compensating use taxes. Paragraph (2) of this subdivision defines the terms "compactors" and "containers".
Section 2 of the bill provides for the effective date.
EXISTING LAW : Under current law, a waste hauler and portable toilet service provider must pay sales tax when purchasing this equipment and then must charge tax on the full charges to its customers, including any portion of the charges for the equipment usage.
JUSTIFICATION : A waste hauler provides its customers with containers and/or compactors so that the customer can easily accumulate their trash. Depending on a customer's needs, the waste hauler transfers the container and/or compactor to the customer for the period needed. In some cases, the container and/or compactor may be provided to a particular customer for an indefinite period of time, while in other cases a customer may only require a container for a few days. Similarly, a portable toilet provider will transfer a portable toilet unit to a customer for the period of time required. The Department of Taxation and Finance has taken the position, which has been supported by the courts, that containers, compactors and portable toilets are not considered "actually transferred" to a purchaser of waste or portable toilet services, and thus do not qualify for exemption from tax to the service provider under TAX ?1101(b)(4)(i)(B). Their view has been that the piece of equipment is only "actually transferred" if it is permanently transferred to one customer or the title is legally transferred to one customer. The effect of the current interpretation of this section is double taxation. The waste hauler and portable toilet service provider must pay sales tax when purchasing this equipment and then must charge tax on the full charges to its customers, including any portion of the charges for the equipment usage. This proposal is intended to prevent double taxation on the equipment usage and clarify the purpose of the statute.
LEGISLATIVE HISTORY : New Legislation in 2005-06, 2007-2008 Ways & Means in Assembly, Investigations Committee in the Senate.
FISCAL IMPLICATIONS : To be determined.
EFFECTIVE DATE : This act shall take effect September 1, 2010; provided, however, that the amendment to subdivision (gg) of section 1115 of the tax law made by section one of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith.
S2411 Text
S T A T E O F N E W Y O R K
2411
2009-2010 Regular Sessions I N SENATE February 19, 2009
Introduced by Sen. O. JOHNSON -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to exempting containers, compactors and portable toilets sold to persons performing waste removal or portable toilet service from sales and compensating use taxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (ee) of section 1115 of the tax law, as added by section 1 of part C of chapter 2 of the laws of 2005, is relettered subdivision (gg) and a new subdivision (hh) is added to read as follows:
(HH) (1) RECEIPTS FROM EVERY SALE OF COMPACTORS, CONTAINERS AND PORT ABLE TOILETS TO AND THE USE BY PERSONS PERFORMING WASTE REMOVAL OR PORT ABLE TOILET SERVICES SHALL BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED BY THIS ARTICLE. (2) FOR THE PURPOSES OF THIS SUBDIVISION, "COMPACTORS" AND "CONTAIN ERS" SHALL MEAN RECEPTACLES USED FOR HOLDING AND/OR COMPACTING WASTE, REFUSE, SLUDGE, COMPOST OR RECYCLABLE GOODS, AND SHALL INCLUDE CARTS, BINS, BAGS AND OTHER TYPES OF CONTAINERS AND COMPACTORS.
S 2. This act shall take effect September 1, 2010; provided, however, that the amendment to subdivision (gg) of section 1115 of the tax law made by section one of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09028-01-9
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