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BILL NUMBER:S3194

TITLE OF BILL: An act to amend the tax law, in relation to exempting the sale of farrier supplies and services from the sales and use taxes

SUMMARY OF PROVISIONS: Section 1 adds a new Subdivision (gg) of Section 1115 of the Tax Law to exempt all farrier services from the sales tax.

PURPOSE & JUSTIFICATION: To clarify the sales tax law to specify that farrier services provided to 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. 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 farrier services 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, and a tax exemption is given for the horseshoes or nails; but the farrier service of caring for the hooves, preparing and nailing shoes, is taxable.

PRIOR LEGISLATIVE HISTORY: 2009-10 - S.2984 -- INVESTIGATIONS 2008 -    S.2329/A.2391 -- RULES/Ways & Means 2007 -    S.2329/A.2391 -- PASSED SENATE/Ways & Means 2006 -    S.3927-A/A.3071-A -- PASSED SENATE/Ways & Means 2005 -    S.3927/A.3071-A - INVESTIGATIONS/Ways & Means 2003/04 - S.6530/A./A.10996 - PASSED SENATE/Ways & Means

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect April 1 of the year next succeeding date of enactment and shall apply to sales made and uses occurring on or after such date.

Text

STATE OF NEW YORK
________________________________________________________________________

3194

2011-2012 Regular Sessions

IN SENATE

February 11, 2011
___________

Introduced  by  Sens.  RANZENHOFER,  LARKIN,  MAZIARZ  -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

AN ACT to amend the tax law, in relation to exempting the sale of farri-
  er supplies and services from the sales and use taxes

  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 (gg) to read as follows:
  (GG)  SERVICES  RENDERED  BY FARRIER, DEFINED AS A PROFESSIONAL EQUINE
HOOFCARE EXPERT AND SHOER OF HORSES, IN THE SHOEING OF A HORSE,  INCLUD-
ING  BUT  NOT LIMITED TO, ANY REASONABLE CHARGE IMPOSED BY A FARRIER FOR
TRAVEL TO AND FROM A FARM OR FOR RENDERING SUCH  SERVICES  AT  A  REMOTE
LOCATION ON A FARM, SHALL BE EXEMPT FROM TAXES UNDER THIS ARTICLE.
  S  2. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law and shall  apply  to  sales
made and uses occurring on or after such effective date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02347-01-1