Clarifies an exemption from sales and compensating use taxes.
TITLE OF BILL: An act to amend the tax law, in relation to clarifying an exemption from sales and compensating use taxes
PURPOSE OR GENERAL IDEA OF THE BILL: Makes technical and conforming changes to chapter 406 of the laws of 2012 which exempts the sale and installation of commercial solar energy systems from sales and compensating use taxes.
SUMMARY OF PROVISIONS:
Section 1-section 1115 of the tax law subdivision hh is re-lettered to ii and references to section eleven hundred and eleven are changed to eleven hundred and ten
Section 2-Section 1210 of the tax law makes similar changes related to the re-lettering of section hh to section ii.
Section 3-Section 1210 of the tax law makes changes to the form of the resolution adopted at the option of a local legislative body to also provide an exemption from local sales tax. This allows an option for the exemption to take effect either on January 1st 2013 or September of any year after 2012.
Section 4- provides for the effective date.
JUSTIFICATION: Last year, the legislature acted to eliminate sales and compensating use taxes for the purchase of commercial solar energy systems. The purpose of this bill is to make purly technical amendments to that chapter in accordance governors approval memo 7.
LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately
STATE OF NEW YORK ________________________________________________________________________ 2340 2013-2014 Regular Sessions IN SENATE January 16, 2013 ___________Introduced by Sen. MAZIARZ -- 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 clarifying an exemption from sales and compensating use taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (hh) of section 1115 of the tax law, as added by chapter 406 of the laws of 2012, is amended to read as follows:
[(hh)](II) Receipts from the retail sale of commercial solar energy systems equipment and of the service of installing such systems shall be exempt from taxes imposed by sections eleven hundred five and eleven hundred [eleven]TEN of this article. For the purposes of this subdivi- sion, "commercial solar energy systems equipment" shall mean an arrange- ment or combination of components installed upon non-residential prem- ises that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. Such arrangement or components shall not include equipment that is part of a non-solar ener- gy system. S 2. 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 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-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07471-01-3 S. 2340 2
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)](II) and the clothing and footwear exemption provided for in paragraph thirty 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 clothing and footwear exemption. S 3. Subdivision (p) of section 1210 of the tax law, as added by chap- ter 406 of the laws of 2012, is amended to read as follows: (p) 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 commercial solar energy systems equipment exemption from state sales and compensating use taxes described in subdivision [(hh)](II) 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 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, property and services exempt from state sales and compensating use taxes pursuant to subdivi- sion [(hh)](II) of section 1115 of the tax law shall also be exempt from sales and compensating use taxes imposed in this jurisdiction.S. 2340 3
Section two. This resolution shall take effect (CHOOSE ONE) January 1,
[(insert the year, but not earlier than the year 2012)]2013 OR SEPTEM- BER 1, (INSERT ANY YEAR AFTER 2012) 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 4. This act shall take effect immediately.