Exempts vehicles purchased in another state by a person in the military service of the United States upon return of such person to this state, from sales and use tax.
TITLE OF BILL: An act to amend the tax law, in relation to exemption of registration of certain motor vehicles from sales and use tax
PURPOSE OR GENERAL IDEA OF BILL: This legislation exempts from sales and use tax motor vehicles purchased in other states by a person while in military service when such motor vehicle are registered upon the person's return to New York State.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends Subdivision (a) of section 1115 of the tax law by adding a new paragraph 14-a to exempt from sales and use tax a motor vehicle purchased in another state by a person while in military service when the motor vehicle is registered in New York State upon return so long as he or she can provide proof of payment of sales and use tax on such a motor vehicle from another state.
Section 2: Effective Date
JUSTIFICATION: Military service members often keep their residency and driver's license in their home state while serving because of their intention to someday return back to the area. Unfortunately, in keeping residency in New York, service members upon return are subject to paying sales tax twice on any vehicle purchased while in another state. This is a result of the current tax law which requires the payment of New York Sales and Use tax on all vehicles purchased out of state. While existing law is necessary in preventing individuals from purchasing a vehicle in another state to purposely avoid paying New York State Sales tax, the circumstances in which military personnel purchase their vehicles are quite different. Often, upon returning to the state, former military service members are shocked to learn the vehicle they purchased out of state vehicle cannot be registered in New York, unless they pay New York State Sales and Use Tax. Further, payment of this tax is required regardless of whether sales tax was paid to another state. This has unfortunately placed undue financial hardship on many military service members returning to New York State. This legislation would correct this by providing an exemption, so long as the member can provide proof of payment of sales tax in the purchasing state.
PRIOR LEGISLATIVE HISTORY: 2007-2008: A.10505 - held for consideration in ways and means - Same as: S.7508. 2011-2012: A.5127 - Held for consideration in Ways and Means
FISCAL IMPLICATIONS: Minimal.
EFFECTIVE DATE: This act should take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4170 2013-2014 Regular Sessions IN SENATE March 12, 2013 ___________Introduced by Sen. DeFRANCISCO -- 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 exemption of registration of certain motor vehicles from sales and use tax 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 14-a to read as follows: (14-A) MOTOR VEHICLES, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, UPON REGISTRATION OF SUCH MOTOR VEHICLE IF SUCH MOTOR VEHICLE WAS PURCHASED IN ANOTHER STATE BY A PERSON WHILE HE OR SHE WAS IN THE MILITARY SERVICE OF THE UNITED STATES UPON THE RETURN OF SUCH PERSON TO THIS STATE, AS LONG AS HE OR SHE HAS PROOF OF PAYMENT OF SALES AND USE TAX ON SUCH MOTOR VEHICLE FROM ANOTHER STATE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04763-01-3