Directs the head of any correctional institution to charge taxes on sales of items sold in commissaries and canteens; such tax receipts to be allocated to localities otherwise prescribed by law.
TITLE OF BILL:
An act to amend the correction law, in relation to charging taxes on sales of commissaries and canteens
This legislation would authorize the head of any correctional institution to charge taxes on sales of commissaries and canteens.
SUMMARY OF PROVISIONS:
Amends Section 26 of the Correction Law, as amended by chapter 487 of the laws of 1994.
Current law, which exempts these transactions from sales taxation, prevents localities in which correctional institutes are located from receiving their local share of sales tax which would be forthcoming were these sales to occur in non-institutional setting. These sales taxes are estimated at $23 million statewide, with $13 million subject to the sales taxes. This represents a significant loss of revenue for those localities with prison facilities. Further it is not appropriate that prisoners are exempted from sales and compensating use tax on goods that are taxable simply because they are bought in prison commissaries.
S. 2818 of 1995/1996; S. 2799 of 1997/1998; S. 640 of 1999/2000; S. 2670 of 2001/2002 S. 437-A of 2003/2004 S. 1325 of 2005/2006; S. 1454 of 2007/2008; S. 4894 of 2009/2010; S. 470 of 2011/2012 - Passed Senate; S. 1903 of 2013/2014.
Some procedural and collection costs may be incurred by the Department of Correctional Services in implementation of this provision. These costs will be offset by the increased revenue to the State of New York.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 1687 2015-2016 Regular Sessions IN SENATE January 14, 2015 ___________Introduced by Sen. NOZZOLIO -- read twice and ordered printed, and when printed to be committed to the Committee on Crime Victims, Crime and Correction AN ACT to amend the correction law, in relation to charging taxes on sales of commissaries and canteens THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 26 of the correction law, as amended by chapter 487 of the laws of 1994, is amended to read as follows: S 26. Establishment of commissaries or canteens in correctional insti- tutions. 1. The commissioner may authorize the head of any institution in the department to establish a commissary or a canteen in such insti- tution for the use and benefit of inmates. The moneys received by the head of the institution as profits from the sales of the commissary or canteen shall be deposited in a special fund to be known as the commis- sary or canteen fund and such funds shall be used for the general purposes of the institution subject to the provisions of section fifty- three of the state finance law. 2. ANY INSTITUTION AUTHORIZED BY THE COMMISSIONER TO ESTABLISH A COMMISSARY OR CANTEEN SHALL ASSESS THE APPROPRIATE STATE AND LOCAL SALES, USE AND EXCISE TAXES ON THE ITEMS SOLD AT SUCH COMMISSARY OR CANTEEN. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07247-01-5