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.

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S1903-2013 Actions

• Mar 13, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 9, 2013: REFERRED TO CRIME VICTIMS, CRIME AND CORRECTION

S1903-2013 Meetings

Crime Victims, Crime and Correction: Mar 13, 2013

S1903-2013 Votes

S1903-2013 Memo

BILL NUMBER:S1903

TITLE  OF  BILL:    An  act  to amend the correction law, in relation to
charging taxes on sales of commissaries and canteens

PURPOSE:  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.

JUSTIFICATION:  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  axe  estimated  at $23 million statewide, with $13 million
subject to the sales. 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.

LEGISLATIVE HISTORY:  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

FISCAL  IMPLICATIONS:    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.

EFFECTIVE DATE:  This act shall take effect immediately.

S1903-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1903

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  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.
                                                             LBD01291-01-3