S1441-2013 Actions

• May 8, 2013: ADVANCED TO THIRD READING
• May 7, 2013: 2ND REPORT CAL.
• May 6, 2013: 1ST REPORT CAL.548
• Feb 27, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 9, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S1441-2013 Meetings

S1441-2013 Calendars

S1441-2013 Votes

S1441-2013 Memo

BILL NUMBER:S1441

TITLE OF BILL:
An act
to amend the tax law, in relation to certain exemptions from sales and
use taxes

PURPOSE:
To incentivize manufacturing in New York while allowing businesses to
make efficient use of their resources.

SUMMARY OF PROVISIONS:

Section one amends paragraph 1 of subdivision (c) of section 1115 of
the tax law, as amended by section 7 of part B of chapter 63 of the
laws of 2000 by removing the words "directly and exclusively."

Section two provides for an immediate effective date.

EXISTING LAW:
Energy must be used exclusively and directly for manufacturing in
order to be excluded from sales and use taxation.

JUSTIFICATION:
Currently, only energy that is used exclusively and directly for
manufacturing is excluded from sales and use taxation. The purpose of
this exclusion is to encourage manufacturers to locate in and produce
goods in New York. However, the existing, law's strict limitations
run counter to this goal. For example, lighting that is required for
workers to see the machines they work on is not excluded from taxation.

The limitation also leads businesses to organize their operations in
less than efficient ways. For example, the air conditioning costs to
keep computer servers from overheating would no longer be excluded
from taxation if a business were to also add a technician's desk into
that room. Even though predominantly a manufacturing cost, the
addition of one desk causes the air conditioning not to be an
exclusively manufacturing expense. This leads to absurd workplace
designs and an
inefficient use of resources. By removing the exclusive and direct
requirements, this bill incentivizes manufacturing in New York while
still requiring that tax free energy actively contributes to the
manufacturing of goods.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None

LOCAL FISCAL IMPLICATIONS: None

EFFECTIVE DATE: Immediate

S1441-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1441
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
 printed to be committed to the Committee on  Energy  and  Telecommuni
 cations
 AN  ACT  to  amend  the  tax law, in relation to certain exemptions from
 sales and use taxes
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1.  Paragraph 1 of subdivision (c) of section 1115 of the tax
 law, as amended by section 7 of part B of chapter  63  of  the  laws  of
 2000, is amended to read as follows:

 (1)  Fuel,  gas,  electricity, refrigeration and steam, and gas, elec
 tric, refrigeration and steam service of  whatever  nature  for  use  or
 consumption  [directly  and  exclusively]  in the production of tangible
 personal property, gas, electricity, refrigeration or steam,  for  sale,
 by  manufacturing,  processing, assembling, generating, refining, mining
 or extracting shall be exempt from the taxes imposed under  subdivisions
 (a)  and (b) of section eleven hundred five and the compensating use tax
 imposed under section eleven hundred ten of this article.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05004-01-3

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