Removes the state sales tax on wireless telephone services and provides for a local option of imposing such taxes.
TITLE OF BILL: An act to amend the tax law, in relation to taxpayer relief on cell phone taxes
PURPOSE: Removes the state sales tax on wireless telephone services and provides for a local option of imposing such taxes.
SUMMARY OF PROVISIONS: Eliminates the state sales tax on wireless telephone services and also allows local governments the option of exempting such services.
JUSTIFICATION: This bill eliminates the state sales tax on wireless telephone services while allowing localities the option of also eliminating their local tax by home rule request to the Department of Taxation and Finance. If the federal, state and local taxes on wireless services are combined, the total comes to 21.71%. New York State has the highest tax for cell phone use in the nation. The national average is 14.32%. New Yorkers are simply overtaxed. Not only do we have the highest cell phone tax in the country, we also have the highest property taxes as well. It is time legislation is passed to help the state of New York and reduce the amount of taxation. This proposal would place New York at the national average for cell phone taxes.
LEGISLATIVE HISTORY: 2012: S.3547 Referred to Investigations/A.10430 Referred to Ways & Means 2011: S.3547 Referred to Investigations 2010: S.608 Referred to Investigations/A.2431 Referred to Ways & Means 2009: S.608 Referred to Investigations/A/2431 Referred to Ways & Means 2008: S.6033 Referred to Rules/A.8870 Referred to Ways & Means 2007: S.6033 Referred to Investigations/A.8870 Referred to Ways & Means
FISCAL IMPLICATIONS: Undetermined.
EFFECTIVE DATE: This act shall take effect immediately; provided however, that section one and section two of this act shall take effect March 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 2303 2013-2014 Regular Sessions IN SENATE January 15, 2013 ___________Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to taxpayer relief on cell phone taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1109 of the tax law is amended by adding a new subdivision (i) to read as follows: (I) THE EXEMPTION CONTAINED IN SUBDIVISION (CC) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE SHALL NOT APPLY. S 2. Subdivision (cc) of section 1115 of the tax law, as added by section 11 of part S of chapter 85 of the laws of 2002, is amended to read as follows: (cc) Notwithstanding any other provision of law to the contrary, receipts from the sale of mobile telecommunications service
[by a home service provider]shall be exempt from the taxes imposed by subparagraph (B) of paragraph one and paragraph two of subdivision (b) of section eleven hundred five of this article [if the mobile telecommunications customer's place of primary use is within a taxing jurisdiction outside this state]. 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: (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 theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05459-01-3 S. 2303 2
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 of subdivision (a) AND THE MOBILE TELECOMMUNICATIONS SERVICE EXEMPTION PROVIDED FOR IN SUBDIVISION (CC) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects other- wise as to either such residential solar energy systems equipment exemption, such commercial solar energy systems equipment exemption or such clothing and footwear exemption OR SUCH TELECOMMUNICATIONS SERVICE 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, COUNTY OR SCHOOL DISTRICT, ACTING THROUGH ITS GOVERNING BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS THE MOBILE TELECOMMUNICATIONS SERVICE EXEMPTION FROM STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (CC) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE WHERE- UPON, 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 SECTION 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, MOBILE TELECOMMUNICATIONS SERVICE EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TOS. 2303 3
SUBDIVISION (CC) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION. SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE YEAR, BUT NOT EARLIER THAN THE YEAR 2014) 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 immediately; provided, however, that sections one and two of this act shall take effect March 1, 2014.