Bill S1441-2013

Relates to exemptions from sales and use taxes for certain fuel, gas, electricity, refrigeration and steam and gas

Relates to exemptions from sales and use taxes for certain fuel, gas, electricity, refrigeration and steam and gas.

Details

Actions

  • Jun 20, 2014: COMMITTED TO RULES
  • May 19, 2014: ADVANCED TO THIRD READING
  • May 14, 2014: 2ND REPORT CAL.
  • May 13, 2014: 1ST REPORT CAL.712
  • Feb 10, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 8, 2014: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jun 21, 2013: COMMITTED TO RULES
  • 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

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Feb 27, 2013
Ayes (10): Maziarz, Carlucci, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Adams, Kennedy
Ayes W/R (1): Dilan
VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Feb 10, 2014
Ayes (9): Maziarz, Carlucci, Griffo, O'Mara, Ritchie, Robach, Parker, Kennedy, Peralta
Ayes W/R (1): Dilan

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


Text

STATE OF NEW YORK ________________________________________________________________________ 1441 2013-2014 Regular Sessions IN 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.

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