S2614-2013 Actions

• Jan 23, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S2614-2013 Memo

BILL NUMBER:S2614

TITLE OF BILL:  An act to amend the tax law, in relation to providing an
exemption from sales tax for sales made to other states, other political
subdivisions of the United States and their political subdivisions

PURPOSE:  To provide an automatic exemption for New York state sales and
use  tax to other states and political subdivisions of the United States
for uses which would otherwise be immune from taxation.

SUMMARY OF PROVISIONS:

Section 1. Amends paragraph 2 of subdivision(a) of section 1116  of  the
tax law to provide that any state, any political subdivision, agency, or
instrumentality  which  would otherwise be immune from taxation where it
is a purchaser, user or consumer, or where it sells services or property
of a kind not ordinarily sold by private persons.

Section 2. Provides that this act shall take effect July 1, 2013  or  on
the  first day of a sales tax quarterly period, as described in subdivi-
sion (b) of section 1136 of the tax law, next  commencing  after  signa-
ture.

JUSTIFICATION:    New  York  currently  does  not  provide  an automatic
exemption for sales and services performed in New York state for out  of
state governmental and other municipal entities. This results in a situ-
ation where other states and their municipal governments are discouraged
from  conducting business within New York. The situation is particularly
troublesome for business close to the borders of  other  states  and  is
resulting in the loss of such business for in state business concerns.

Many  other  states currently provide such a blanket sales tax exemption
to other governmental entities, realizing that it  is  an  incentive  to
encourage out of state revenue for their employers.

LEGISLATIVE  HISTORY:    2012:  S.6163  Referred  to  Investigations and
Government Operations

FISCAL IMPLICATIONS:  Undetermined.

EFFECTIVE DATE:  This act shall take affect July  1,  2013  or  upon  an
immediately preceding sales tax quarter.

S2614-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2614
 2013-2014 Regular Sessions
 I N  SENATE
 January 23, 2013
 
 Introduced  by  Sen.  YOUNG  -- 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 providing an exemption  from
 sales tax for sales made to other states, other political subdivisions
 of the United States and their political subdivisions
 

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

 

Section 1.  Paragraph 2 of subdivision (a) of section 1116 of the  tax
 law,  as  amended by chapter 530 of the laws of 1976, is amended to read
 as follows:

 (2) The United States of America, ANY STATE, THE DISTRICT OF COLUMBIA,
 OR ANY POSSESSION OF THE UNITED STATES OR POLITICAL SUBDIVISION THEREOF,
 and any [of its agencies and instrumentalities] AGENCY OR INSTRUMENTALI
 TY OF ANY OF THE FOREGOING THAT IS NOT DESCRIBED  IN  PARAGRAPH  ONE  OF
 THIS  SUBDIVISION, insofar as it is immune from taxation where it is the
 purchaser, user or consumer, or where it sells services or property of a
 kind not ordinarily sold by private persons;
 

S 2. This act shall take effect July 1, 2013 or on the first day of  a
 sales  tax  quarterly period, as described in subdivision (b) of section
 1136 of the tax law, next commencing at least ninety days after this act
 shall have become a law, whichever shall be later.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07119-01-3

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