Grants sales and use tax exempt for certain tangible personal property and services used in the operation of recreational skiing facilities.
TITLE OF BILL: An act to amend the tax law, in relation to granting sales and compensating use tax exemptions for certain tangible personal property and services used in the operation of recreational skiing facilities
PURPOSE: This legislation, if enacted, would amend section 1115 of the Tax Law to state the purchase of energy efficient snow making equipment, ski lift equipment, snow grooming equipment, and the production of snow by a recreational ski facility are exempt from the New York State sales and compensating use tax.
SUMMARY OF PROVISIONS:
Section 1 - Amends subdivision (a) of section 1115 of the tax law by adding paragraph (44) to exempt the production of snow, uphill transportation of skiers. and/or the grooming and maintenance of snow from sales and compensating use tax.
Section 2 - Amends section 1115 of the tax law by adding a new subdivision (ii) to exempt the production of snow as well as the equipment to transport skiers uphill and to groom snow by any recreational ski area from sales and compensating use tax.
Section 3 - Contains the effective Date.
JUSTIFICATION: New York State ranks fifth in the nation in skier visits per year despite the fact that the state is the second highest when compared to the percentage of their population that skis. New York State currently exports a number of skiers and their families to the New England states. In order to remain competitive with our neighbors to the east which aggressively campaigns for our skiers and those whom visit New York, this state needs to upgrade equipment and maintain state of the art snowmaking systems, and this legislation will greatly assist them in the purchase of new equipment and upgrading of snowmaking systems.
The ski industry employs over 10,000 New York State residents serving on average 4 million skier visits per year with an economic impact of over $1 billion. With over 40 ski areas, New York State has more ski areas than any other state with over S4.8 million in sales tax paid each year. Local property taxes paid amount to over S3.5 million. Snow making is critical to the ski industry and this legislation will provide energy tax relief, which is one of the highest expenses faced each winter season.
The three state owned ski areas in New York State are exempt from the state sales tax while privately owned ski areas are not. This has created an unfair business environment for these privately owned ski areas, many of which are located in upstate New York. This bill would provide that all ski areas that purchase energy efficient snow making equipment and make snow shall be exempt from this tax. The fuel, gas, electricity, and refrigeration, and gas, electric, and refrigeration services used directly for the production of snow would now be exempt from the state sales tax as will the energy efficient equipment. The
manufacture of snow is not eligible for a tax exemption under the definition of manufacturing because snow is not sold as a product. The climate and business environment has changed such that ski areas must make snow to remain viable in this industry.
This legislation would eliminate the sales tax on the purchase of qualifying energy efficient lift and grooming equipment. New safer equipment to transport skiers has become available that will move more people with less energy and manpower required. Grooming equipment is powered by diesel fuel, and advancements in such technology has made the newer machines much more energy efficient with less emissions and more horsepower. Wisconsin, Minnesota, Utah and Colorado have enacted similar laws that apply not only to the purchase of new energy efficient equipment but also for the use and compensating tax on snowmaking energy.
LEGISLATIVE HISTORY: 2011-12 S.6266 Passed Senate; A. 9991 Referred to Ways & Means 2009-10: S.836 Referred to Energy & Telecommunications; A. 519 Referred to Ways & Means 2008: S.2343-A; A. 5392-A Ways &s. Means 2007: S.2343 Passed Senate; A. 5392 Ways & Means 2005-06: S.720 Passed Senate; A. 7995 Ways & Means
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 3281 2013-2014 Regular Sessions IN SENATE January 31, 2013 ___________Introduced by Sen. LITTLE -- 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 granting sales and compen- sating use tax exemptions for certain tangible personal property and services used in the operation of recreational skiing facilities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) ENERGY EFFICIENT TANGIBLE PERSONAL PROPERTY OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN THE PRODUCTION OF SNOW; (II) IN THE UPHILL TRANSPORTATION OF SKIERS; OR (III) IN THE GROOMING AND MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS OF OPERATING A RECREATIONAL FACILITY FOR SKIING. S 2. Section 1115 of the tax law is amended by adding a new subdivi- sion (ii) to read as follows: (II) FUEL, GAS, ELECTRICITY AND REFRIGERATION, AND GAS, ELECTRIC AND REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY AND EXCLUSIVELY IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS OF OPERATING A RECREATIONAL FACILITY FOR SKIING, SHALL BE EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF SECTION ELEVEN HUNDRED FIVE AND THE COMPENSATING USE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE. S 3. This act shall take effect on the first of July 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. LBD01201-01-3