Exempts energy star products from sales and use taxes; grants credit for taxes paid on energy star products.

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S2553-2013 Actions

• May 7, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 22, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2553-2013 Meetings

Investigations and Government Operations: May 7, 2013

S2553-2013 Votes

S2553-2013 Memo

BILL NUMBER:S2553

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting energy star products from
sales and compensating use taxes; and granting credit or refund for
taxes paid; and providing for reimbursement of such taxes

PURPOSE:
To provide a statewide State and local sales tax exemption for one
year for all energy star rated products to aid in structure
rebuilding and refurbishing, and to promote the State economy during
a period of storm related adverse economic impacts.

SUMMARY OF PROVISIONS:

Section 1 of the bill would provide a business franchise tax credit
for sales taxes paid on energy star rated products purchased or
installations and servicing related to the purchase of energy star
related products between October 31, 2012 and October 31, 2013.

Sections 2 and 3 of the bill create a corresponding credit for
taxpayers filing under the State's Personal Income Tax.

Sections 4, 5 and 6 of the bill create a one year exemption from sales
tax for the purchase of energy star rated products and related
installation services.

Section 7 of the bill provides a similar credit for New York City
imposed sales taxes.

Section 8 of the bill provides that the State of New York will
reimburse local governments for foregone sales tax revenues that
otherwise would have been collected on energy star rated products and
related services.

Section 9 provides for an immediate effective date.

EXISTING LAW:
No similar credits or exemption exist in statute at the present time.

JUSTIFICATION:
Super-storm Sandy has become the largest natural disaster in New York
State history. Current estimates are that at least $30 billion in
damages have been inflicted upon the State. All of New York is facing
an arduous road to recovery. In the immediate term, the State is
facing at least a two economic quarter weather impact recession.

Best available estimates place the number of Sandy related residential
structures that have encountered substantial to total flood or other
storm related damage at at least 170,000. These homes will need new
heating and electrical systems, appliances, insulation, lights, etc.

Meanwhile, recovery efforts are still underway for those New Yorkers
that were heavily impacted by last year's storms of Irene and Lee.


Full rebuilding efforts in those communities are just now getting
seriously underway.

New York State can provide a small leg up for these impacted citizens,
and promote an advanced State energy policy by exempting energy star
rated products from sales tax during an anticipated one year
rebuilding and refurbishing period. Most New Yorkers will be able to
save at least 8 percent during the year recovery period for replacing
or upgrading furnaces, air conditioners, hot water heaters, washers,
dryers, dishwashers, computers, televisions and lighting systems and
conservation materials with energy efficient products designed to
save both the purchaser money and save the State energy.

This bill would provide for this exemption, or a refundable credit for
purchases made during the exemption period but before the enactment
date, and also would have the State reimburse localities, who face an
incredibly difficult fiscal period recovering from the storm's direct
and longer range effects, for the forbearance of otherwise
anticipated sales tax revenues.

However, over and above the incentive provided for those directly
impacted and recovering from the storms, the bill would help provide
a consumer driven impetus to the regional economies in the rest of
the State. As the recovery from Katrina demonstrated, all the
proximate shore areas suffered the most immediate and severe impacts,
yet these areas also recovered more quickly because of the rapid
influx of federal and insurance funds that lead to an eventual boom
in construction and tangible good purchases. The more Upstate
communities in these Gulf states in general have been much slower to
recover.

Making the proposed sales tax exemption statewide will provide a much
needed jolt to the rest of the State, and will hopefully, bring our
neighbors into the State to make their energy star rated purchases.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS:
Total of between 5125 and $150 million in reduced currently required
State and local Sales Tax collections spread among State Fiscal Years
2012-13 and 2013-14 (Senate Finance estimate).

LOCAL FISCAL IMPLICATIONS:
Slight delay in receipt of anticipated sales tax revenues from energy
star rated product purchases counterbalanced by greater regional
economic activity.

EFFECTIVE DATE: Immediately

S2553-2013 Text

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

                                    2553

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 22, 2013
                                 ___________

  Introduced by Sens. MARCELLINO, MAZIARZ -- read twice and ordered print-
    ed,  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  energy  star
    products from sales and compensating use taxes; and granting credit or
    refund for taxes paid; and providing for reimbursement of such taxes

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
  subdivision 46 to read as follows:

    46.  CREDIT  FOR  THE PURCHASE OR REPAIR OF ENERGY STAR PRODUCTS.  (A)
  ALLOWANCE OF CREDIT. A TAXPAYER WHO, ON OR AFTER  OCTOBER  THIRTY-FIRST,
  TWO  THOUSAND TWELVE AND BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND THIR-
  TEEN, EITHER (I) PURCHASES  ENERGY  STAR  PRODUCTS,  OR  (II)  PAYS  FOR
  REPAIRS TO ENERGY STAR PRODUCTS OWNED BY THE TAXPAYER SHALL BE ALLOWED A
  CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION,
  AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE, PROVIDED THAT SUCH TAXPAYER
  HAS NOT APPLIED FOR OR RECEIVED A  REFUND  OF  SUCH  TAXES  PURSUANT  TO
  SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER. FOR PURPOSES OF THIS
  SUBDIVISION, THE TERM "ENERGY STAR PRODUCTS" SHALL HAVE THE SAME MEANING
  AS IN PARAGRAPH THIRTY-NINE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
  ONE OF THIS CHAPTER.
    (B)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE AMOUNT OF
  TAXES PAID BY THE TAXPAYER PURSUANT TO ARTICLES TWENTY-EIGHT  AND  TWEN-
  TY-NINE  OF  THIS  CHAPTER  FOR  THE  PURCHASE  OR REPAIR OF ENERGY STAR
  PRODUCTS, AS EVIDENCED BY DATED  RECEIPTS  LISTING  THE  VENDOR'S  NAME,
  VENDOR'S  ADDRESS,  AND  THE AMOUNT OF SUCH TAX PAID, LESS ANY AMOUNT OF
  SUCH TAXES THAT THE TAXPAYER DEDUCTED FOR FEDERAL INCOME TAX PURPOSES.
    (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
  FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
  THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD07232-01-3

 S. 2553                             2

  SUBDIVISION  ONE  OF  THIS  SECTION.    HOWEVER, IF THE AMOUNT OF CREDIT
  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
  SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
  YEAR  SHALL  BE  TREATED  AS  AN  OVERPAYMENT  OF  TAX TO BE CREDITED OR
  REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
  EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
  SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
  NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
    (D)  ANY  AMOUNT  OF  CREDIT  ALLOWED PURSUANT TO THIS SUBDIVISION FOR
  WHICH THE TAXPAYER SUBSEQUENTLY RECEIVES A REFUND  PURSUANT  TO  SECTION
  ELEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER SHALL BE RECAPTURED AND ADDED
  BACK IN THE TAXABLE YEAR THAT SUCH REFUND WAS RECEIVED.
    S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
  of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
  follows:

  (XXXV) ENERGY STAR TAX CREDIT        AMOUNT OF CREDIT UNDER
  UNDER SUBSECTION (VV)                SUBDIVISION FORTY-SIX OF SECTION
                                       TWO HUNDRED TEN
    S  3. Section 606 of the tax law is amended by adding a new subsection
  (vv) to read as follows:

    (VV) CREDIT FOR THE PURCHASE OF ENERGY STAR PRODUCTS. (1) ALLOWANCE OF
  CREDIT. A TAXPAYER WHO, ON OR AFTER THE THIRTY-FIRST DAY OF OCTOBER, TWO
  THOUSAND TWELVE AND BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND  THIRTEEN,
  EITHER  (A)  PURCHASES  ENERGY STAR PRODUCTS, OR (B) PAYS FOR REPAIRS TO
  ENERGY STAR PRODUCTS SHALL BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
  PROVIDED  IN PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAXES IMPOSED
  BY THIS ARTICLE, PROVIDED THAT SUCH TAXPAYER  HAS  NOT  APPLIED  FOR  OR
  RECEIVED A REFUND OF SUCH TAXES PURSUANT TO SECTION ELEVEN HUNDRED THIR-
  TY-NINE  OF  THIS  CHAPTER.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
  "ENERGY STAR PRODUCTS" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH THIR-
  TY-NINE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF  THIS  CHAP-
  TER.
    (2)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE AMOUNT OF
  TAXES PAID BY THE TAXPAYER PURSUANT TO ARTICLES TWENTY-EIGHT  AND  TWEN-
  TY-NINE  OF  THIS  CHAPTER  FOR  THE  PURCHASE  OR REPAIR OF ENERGY STAR
  PRODUCTS, AS EVIDENCED BY DATED  RECEIPTS  LISTING  THE  VENDOR'S  NAME,
  VENDOR'S  ADDRESS,  AND  THE AMOUNT OF SUCH TAX PAID, LESS ANY AMOUNT OF
  SUCH TAXES THAT THE TAXPAYER DEDUCTED FOR FEDERAL INCOME TAX PURPOSES.
    (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR
  SUCH YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE
  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
  HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
  WILL BE PAID THEREON.
    (4) RECAPTURE OF CREDIT. ANY AMOUNT OF CREDIT ALLOWED PURSUANT TO THIS
  SUBSECTION  FOR WHICH THE TAXPAYER SUBSEQUENTLY RECEIVES A REFUND PURSU-
  ANT TO SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  CHAPTER  SHALL  BE
  RECAPTURED  AND  ADDED  BACK  IN  THE  TAXABLE YEAR THAT SUCH REFUND WAS
  RECEIVED.
    S 4. Subdivision (b) of section 1101 of the  tax  law  is  amended  by
  adding a new paragraph 39 to read as follows:

    (39) ENERGY STAR PRODUCT. ANY TANGIBLE PERSONAL PROPERTY FOR WHICH THE
  ENERGY  STAR  LABEL  HAS BEEN AWARDED BY THE UNITED STATES ENVIRONMENTAL
  PROTECTION AGENCY PURSUANT TO THE ENERGY STAR PROGRAM (SECTION 6294A  OF
  TITLE 42 OF THE UNITED STATES CODE).

 S. 2553                             3

    S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
  adding a new paragraph 44 to read as follows:

    (44)  RETAIL SALES OF ENERGY STAR PRODUCTS PURCHASED ON OR AFTER OCTO-
  BER THIRTY-FIRST, TWO THOUSAND TWELVE AND BEFORE  OCTOBER  THIRTY-FIRST,
  TWO  THOUSAND  THIRTEEN.  THE  EXEMPTION  PROVIDED FOR IN THIS PARAGRAPH
  SHALL NOT APPLY TO THE RENTAL OR LEASING OF SUCH ENERGY STAR PRODUCTS.
    S 6. Section 1115 of the tax law is amended by adding a  new  subdivi-
  sion (ii) to read as follows:

    (II)  SERVICES  OTHERWISE  TAXABLE  UNDER  PARAGRAPH  THREE OR FIVE OF
  SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OR UNDER  SECTION  ELEVEN
  HUNDRED TEN OF THIS ARTICLE AND ANY TANGIBLE PERSONAL PROPERTY OTHERWISE
  TAXABLE  UNDER  SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE THAT IS USED
  IN THE PERFORMANCE OF SUCH SERVICES SHALL BE EXEMPT FROM ANY TAX IMPOSED
  PURSUANT TO SUCH PROVISIONS WHERE SUCH SERVICES ARE RENDERED DIRECTLY TO
  ENERGY STAR PRODUCTS AND SUCH SERVICES WERE PROVIDED ON OR AFTER OCTOBER
  THIRTY-FIRST, TWO THOUSAND TWELVE AND BEFORE OCTOBER  THIRTY-FIRST,  TWO
  THOUSAND THIRTEEN.
    S  7.  Section 1139 of the tax law is amended by adding a new subdivi-
  sion (i) to read as follows:

    (I) NOTWITHSTANDING ANY PROVISION OF THE  LAW  TO  THE  CONTRARY,  THE
  COMMISSIONER  SHALL REFUND ANY TAX PAID PURSUANT TO THIS ARTICLE FOR THE
  PURCHASE OR REPAIR OF ENERGY STAR PRODUCTS  THAT  ARE  EXEMPT  FROM  THE
  TAXES  PURSUANT  TO PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) AND SUBDIVI-
  SION (II)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  ARTICLE,  AS
  EVIDENCED BY DATED RECEIPTS LISTING THE VENDOR'S NAME, VENDOR'S ADDRESS,
  AND  THE  AMOUNT  OF  SUCH  TAX PAID; PROVIDED THAT THE TAXPAYER HAS NOT
  CLAIMED A CREDIT FOR SUCH TAXES PURSUANT TO EITHER SUBDIVISION FORTY-SIX
  OF SECTION TWO HUNDRED TEN OR SUBSECTION (VV) OF SECTION SIX HUNDRED SIX
  OF THIS CHAPTER. ALL THE PROVISIONS OF THIS SECTION SHALL APPLY  TO  THE
  REFUND  AUTHORIZED BY THIS SUBDIVISION, PROVIDED, HOWEVER, THAT INTEREST
  ALLOWABLE UNDER SUBDIVISION (D) OF THIS SECTION SHALL  BE  PAYABLE  FROM
  THE  DATE  WHICH IS SIX MONTHS AFTER THE DATE THE APPLICATION FOR REFUND
  IN PROCESSIBLE FORM IS RECEIVED.
    S 8. The tax law is amended by adding a new section 1261-b to read  as
  follows:

    S  1261-B.  REIMBURSEMENT  FOR  LOST REVENUE RESULTING FROM EXEMPTIONS
  FROM TAXES ADMINISTERED BY THE COMMISSIONER. ALL AMOUNTS THAT WOULD HAVE
  BEEN  COLLECTED  AND  DEPOSITED  PURSUANT  TO  SECTION  TWELVE   HUNDRED
  SIXTY-ONE   OF  THIS  PART  IF  THE  EXEMPTIONS  PROVIDED  BY  PARAGRAPH
  FORTY-FOUR OF SUBDIVISION (A) AND SUBDIVISION  (II)  OF  SECTION  ELEVEN
  HUNDRED  FIFTEEN OF THIS ARTICLE HAD NOT BEEN ENACTED SHALL BE DEPOSITED
  IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWELVE HUNDRED SIXTY-ONE OF
  THIS PART, PROVIDED THAT SUCH DEPOSITS SHALL BE MADE NO LATER  THAN  ONE
  DAY  AFTER  THE  COMMISSIONER  HAS EITHER (A) ALLOWED CREDIT PURSUANT TO
  EITHER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED  TEN  OR  SUBSECTION
  (VV)  OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, OR (B) ISSUED A REFUND
  PURSUANT TO SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  CHAPTER,  AND
  PROVIDED  FURTHER  THAT, NOTWITHSTANDING ANY PROVISION OF THE LAW TO THE
  CONTRARY, ANY AMOUNTS PAID THAT WERE SUBSEQUENTLY RECAPTURED PURSUANT TO
  EITHER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED  TEN  OR  SUBSECTION
  (VV)  OF  SECTION SIX HUNDRED SIX OF THIS CHAPTER SHALL BE DEDUCTED FROM
  THE AMOUNT TO BE DEPOSITED PURSUANT TO SECTION TWELVE HUNDRED  SIXTY-ONE
  OF  THIS  PART NO LATER THAN ONE DAY AFTER SUCH AMOUNTS HAVE BEEN RECAP-
  TURED.
    S 9. This act shall take effect immediately.