Provides an exemption to the retail sale of plug-in hybrid electric vehicles from state sales and compensating use taxes; authorizes local governments to adopt similar incentives.
TITLE OF BILL: An act to amend the tax law, in relation to exempting the sale of plug-in hybrid electric vehicles from state sales and compensating use taxes, and to authorize cities and counties to grant such exemption
PURPOSE: This legislation would exempt qualifying plug-in electric vehicles from sales tax.
SUMMARY OF PROVISIONS:
Section 1 defines the term plug in hybrid. electric vehicle and creates a state sales tax exemption.
Section 2 states that the tax break is not applicable to car rentals.
Section 3 states that new plug-in hybrid vehicles exemptions may be exempted by Counties.
Section 4 allows for a sales tax break if opted into by New York City.
Section 5 is the effective date.
JUSTIFICATION: Incentives to encourage the purchase of new plug-in hybrid electric vehicles afford a means for the State to encourage consumers to consider the purchase of clean fuel vehicles, by overcoming the initially greater cost of such technologies compared to other vehicles and accelerate their adoption in the market.
While growing slowly over time, broad consumer acceptance of hybrid vehicles - remains very limited.
o Since their inception in 1999. an estimated total of 2.157.723 hybrid electric automobiles and SUVs by various manufacturers have been sold in the United States through December 2011.
o According to a recent report from Pike Research, hybrid electric vehicles (HEVs) and plug-in electric vehicles (PEVs) combined will represent only 3.1% of worldwide auto sales by 2017.
o Despite higher rates of acceptance in the United States, HEVs and PEVs will account for only 5.1% of total U.S. vehicle sales by 2017.
According to Experian Automotive - New York State ranks 4th in total hybrid sales in the 50 states, with 4.68% of new car sales in 2011.
New York lawmakers have enacted similar incentives in prior years to encourage consumers to consider purchase of hybrid and other alternative fuel vehicles. These were of limited duration, and phased out over several years after consumer acceptance began to rise.
Plug-in hybrid vehicles offer several benefits simultaneously:
o Dramatic improvements in fuel economy,
o Significant reductions in emissions, and
o Encouraging the sales of these vehicles is consistent with New York's drive towards cleaner air.
PRIOR LEGISLATIVE HISTORY: S. 7192a of 2011-12; referred to Investigations and Government Operations
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This bill shall take effect October 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 1665 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sens. GRISANTI, BONACIC, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations AN ACT to amend the tax law, in relation to exempting the sale of plug- in hybrid electric vehicles from state sales and compensating use taxes, and to authorize cities and counties to grant such exemption THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) THE RECEIPTS FROM THE RETAIL SALE OF NEW PLUG-IN HYBRID ELECTRIC VEHICLES. FOR PURPOSES OF THIS PARAGRAPH THE TERM "PLUG-IN HYBRID ELEC- TRIC VEHICLE" MEANS A MOTOR VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, THAT: (I) DRAWS PROPULSION USING A TRACTION BATTERY WITH AT LEAST FOUR KILO- WATT HOURS OF CAPACITY; (II) USES AN EXTERNAL SOURCE OF ENERGY TO RECHARGE SUCH BATTERY; (III) THE ORIGINAL USE OF WHICH COMMENCES WITH THE TAXPAYER; (IV) IS ACQUIRED FOR USE OR LEASE BY THE TAXPAYER AND NOT FOR RESALE; AND (V) IS MADE BY A MANUFACTURER. S 2. Section 1160 of the tax law is amended by adding a new subdivi- sion (c) to read as follows: (C) THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER SHALL NOT APPLY TO OR LIMIT THE IMPOSITION OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE. S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by chapter 406 of the laws of 2012, is amended to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04019-01-3 S. 1665 2
(1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes author- ized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment exemption provided for in subdivision (ee), the commercial solar energy systems equipment exemption provided for in subdivision (hh)
[and], the clothing and footwear exemption provided for in paragraph thirty AND THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FOUR of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to either such residential solar energy systems equipment exemption, such commercial solar energy systems equipment exemption or such cloth- ing and footwear exemption OR SUCH NEW PLUG-IN HYBRID ELECTRIC VEHICLE EXEMPTION. S 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (q) to read as follows: (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI- NANCE OR RESOLUTION TO THE CONTRARY: (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION FROM STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTIONS. 1665 3
ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE GOVERNOR. (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF LOCAL LEGISLATIVE BODY) AS FOLLOWS: SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, PROPERTY AND SERVICES EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH 44 OF SUBDIVISION (A) OF SECTION 1115 OF THE NEW YORK TAX LAW SHALL ALSO BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURIS- DICTION. SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE YEAR, BUT NOT EARLIER THAN THE YEAR 2013) AND SHALL APPLY TO SALES MADE, SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE IN ACCORD- ANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216 AND 1217 OF THE NEW YORK TAX LAW. S 5. This act shall take effect October 1, 2013.