S1433-2013 Actions

• Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1433-2013 Memo

BILL NUMBER:S1433

TITLE  OF BILL:  An act to amend the tax law, in relation to providing
a tax exemption for commercial horse boarding services

SUMMARY OF PROVISIONS:
Section 1 adds a new Subdivision (ii) of Section 1115 of the  Tax  Law
to  exempt  all  receipts  from  the  sale  of horse boarding services
provided by a  commercial  horse  boarding  operation  for  the  care,
control and custody of horses.

PURPOSE & JUSTIFICATION:
To  clarify the Sales Tax Law to specify that all services provided by
commercial horse boarding operations are exempt  from  sales  tax.  In
2000,   sales  tax  relief  was  provided  to  farm-related  purchases
including commercial horse boarding operations.  Instruction, training
and showing of horses is nontaxable, but according to tax regulations,
care, custody and  control  services  are  taxable.  Taxable  services
currently  include  feeding,  watering, mucking, grooming, exercising,
blanketing,  spraying,  worming,   holding   for   farrier   or   Vet,
administering  shots,  nursing care, maintenance of tack and burial of
dead  animals.  The  existing,  Tax  Law  is  confusing  and  open  to
interpretation  as  to  what services are or are not taxable for horse
boarding. Raising of horses is a growing and vital part of agriculture
in New York State and removing the sales tax from all aspects of horse
boarding will remove any confusion from the law and make  New  York  a
more friendly state for the horse business.

EXISTING LAW:
A  sales  tax exemption is granted for horse instruction, training and
showing, but care, custody and control of horses is taxable.  Services
provided for horses used for pleasure, racing or show are taxable.

PRIOR LEGISLATIVE HISTORY:
2011/2012 - S.3193-A -- RULES
2010 - S.2985/A.9066 -- INVESTIGATIONS/Ways & Means
2008 - S.2962/A.2429 -- RULES/Ways & Means
2007 - S.2962/A.2429 -- PASSED SENATE/Ways & Means
2006 - S.6658/A.9770 -- PASSED SENATE/Ways & Means

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on April 1st of the year
next following enactment of this legislation, and shall apply to
sales made and uses occurring on or after such date.

S1433-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1433
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sens.  RANZENHOFER,  LARKIN,  MAZIARZ  -- 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 providing a tax exemption
 for commercial horse boarding services
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. 

Section  1115  of  the tax law is amended by adding a new
 subdivision (ii) to read as follows:

 (II) RECEIPTS FROM THE SALE  OF  COMMERCIAL  HORSE  BOARDING  SERVICES
 PROVIDED  BY  A COMMERCIAL HORSE BOARDING OPERATION SHALL BE EXEMPT FROM
 TAXES IMPOSED UNDER THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION:

 (1) "COMMERCIAL HORSE BOARDING OPERATION" SHALL HAVE THE SAME  MEANING
 AS SUCH TERM HAS IN SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF
 THE AGRICULTURE AND MARKETS LAW;
 (2)  "COMMERCIAL  HORSE  BOARDING  SERVICES" SHALL INCLUDE, BUT NOT BE
 LIMITED TO, THE FEED AS WELL AS THE ACTS OF FEEDING, WATERING, BOARDING,
 GROOMING, EXERCISING,  NURSING  CARE,  SPRAYING,  WORMING,  HOLDING  FOR
 FARRIER OR VETERINARIAN CARE AND CLEANING OF STALLS OF HORSES.
 

S  2. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04844-01-3

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