Provides for a tax exemption for commercial horse boarding services when provided by a commercial horse boarding operation; defines terms.
TITLE OF BILL: An act to amend the tax law, in relation to providing a tax exemption for commercial horse boarding services
SUMMARY OF PROVISIONS: Section 1 adds a new Subdivision (hh) of Section 1115 of the Tax Law to exempt all receipts from the sale of horse boarding services provided by a commercial horse boarding operation for the care, control and custody of horses.
PURPOSE & JUSTIFICATION: To clarify the Sales Tax Law to specify that all services provided by commercial horse boarding operations are exempt from sales tax. In 2000, sales tax relief was provided to farm-related purchases including commercial horse boarding operations. Instruction, training and showing of horses is nontaxable, but according to tax regulations, care, custody and control services are taxable. Taxable services currently include feeding, watering, mucking, grooming, exercising, blanketing, spraying, worming, holding for farrier or Vet, administering shots, nursing care, maintenance of tack and burial of dead animals. The existing, Tax Law is confusing and open to interpretation as to what services are or are not taxable for horse boarding. Raising of horses is a growing and vital part of agriculture in New York State and removing the sales tax from all aspects of horse boarding will remove any confusion from the law and make New York a more friendly state for the horse business.
EXISTING LAW: A sales tax exemption is granted for horse instruction, training and showing, but care, custody and control of horses is taxable. Services provided for horses used for pleasure, racing or show are taxable.
PRIOR LEGISLATIVE HISTORY: 2011 - S.3193 -- FINANCE 2010 - S.2985/A.9066 -- INVESTIGATIONS/Ways & Means 2008 - S.2962/A.2429 -- RULES/Ways & Means 2007 - S.2962/A.2429 -- PASSED SENATE/Ways & Means 2006 - S.6658/A.9770 -- PASSED SENATE/Ways & Means
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on April 1st of the year next following enactment of this legislation, and shall apply to sales made and uses occurring on or after such date.
STATE OF NEW YORK ________________________________________________________________________ 3193--A 2011-2012 Regular Sessions IN SENATE February 11, 2011 ___________Introduced by Sens. RANZENHOFER, JOHNSON, LARKIN, MAZIARZ, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the tax law, in relation to providing a tax exemption for commercial horse boarding services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1115 of the tax law is amended by adding a new subdivision (hh) to read as follows: (HH) RECEIPTS FROM THE SALE OF COMMERCIAL HORSE BOARDING SERVICES PROVIDED BY A COMMERCIAL HORSE BOARDING OPERATION SHALL BE EXEMPT FROM TAXES IMPOSED UNDER THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION: (1) "COMMERCIAL HORSE BOARDING OPERATION" SHALL HAVE THE SAME MEANING AS SUCH TERM HAS IN SUBDIVISION THIRTEEN OF SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW; (2) "COMMERCIAL HORSE BOARDING SERVICES" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FEED AS WELL AS THE ACTS OF FEEDING, WATERING, BOARDING, GROOMING, EXERCISING, NURSING CARE, SPRAYING, WORMING, HOLDING FOR FARRIER OR VETERINARIAN CARE AND CLEANING OF STALLS OF HORSES. S 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02348-02-2