Exempts receipts from the services provided by a farrier in shoeing a horse including reasonable fees for travel and shoeing a horse in a remote location on a farm.
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.
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