Provides for temporary suspension of sales and compensating use tax on certain services, during governor ordered state of emergency, provided by contractors, subcontractors, repairpersons or property owners for clean-up activities associated with real property, property or land after a natural or manmade disaster.
TITLE OF BILL: An act to amend the tax law, in relation to suspending the state sales and compensating use tax on certain disaster clean-up items during a state of emergency and authorizing localities to waive such tax during the same period
PURPOSE OF THE BILL: To assist property owners during times of emergency cleanup by waiving sales tax on cleanup activities.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 1115 of the Tax Law by adding a new subsection (hh) to allow the Governor to temporarily suspend, by executive order, during a state disaster emergency, and for up to sixty days after the end of such state of emergency, sales and compensating taxes associated with property clean up activities taxable under subdivision (c) of Tax law section 1105 and Tax law 1110.
Section 2 amends Tax Law subparagraph 1210(a)(1) to add the exemption provided under new section 1115(hh).
Section 3 amends Tax Law subdivision 1210(d) to permit local governments the option to suspend their local sales and use taxes on clean up activities as described in Tax Law 1115 (hh) for the same period that state taxes are suspended.
Section 4 amends Tax Law 1210 by adding a new subdivision (p) permitting a city with a population of over one million, by resolution, to suspend sales and use taxes during the same periods of clean up activities described in Tax Law section 1115.
Section 5 permits any county or city imposing sales and compensating use taxes pursuant to Article 29 of the Tax Law, or any city with a population of over one million imposing sales and compensating use taxes pursuant to Tax Law section 1107 to suspend sales and use taxes for clean up activities during the same periods of clean up activities described in Tax Law section 1115.
Section 6 provides that the act shall take effect immediately and shall apply to any sales made and uses occurring during exemption periods on or after the date of enactment.
JUSTIFICATION: Sales and compensating taxes are imposed on lawn maintenance activities pursuant to Tax Law 1105(c). During times of storm, flood, hurricane or other disaster, such clean up costs can be enormous and overwhelming for property owners. During recent snow storms in Western New York, trees and branches covered lawns and driveways, and the costs for cleaning up this disaster for homeowners was often thousands of dollars. These costs provided an unexpected and unwarranted windfall to the state and local governments in the form of sales taxes generated by this emergency. Clearly, any part of
the state could suffer a similar disaster, whether it be caused by a hurricane, heavy rains, snow or wind. This bill gives the Governor greater flexibility to assist and protect our residents with the option to suspend sales taxes on clean up activities for the duration of the state of emergency and up to sixty days thereafter, and also allows cities and counties to similarly suspend their sales taxes on these activities as well. When residents in our state face such an emergency, it is not proper for the state to prosper from their misfortune.
PRIOR LEGISLATIVE HISTORY: 2007/08 - S.2837/A.7311 -- INVESTIGATIONS/Ways & Means 2009-10 - S.7066/A.3759 -- INVESTIGATIONS/Ways & Means 2011 - S.4180 -- FINANCE
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4180--A 2011-2012 Regular Sessions IN SENATE March 22, 2011 ___________Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to suspending the state sales and compensating use tax on certain disaster clean-up items during a state of emergency and authorizing localities to waive such tax during the same period 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) THE GOVERNOR MAY TEMPORARILY SUSPEND SALES AND COMPENSATING USE TAXES ASSOCIATED WITH SERVICES OTHERWISE TAXABLE UNDER SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OR UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE RENDERED IN CLEAN-UP AND REPAIR OF REAL PROPERTY, PROPERTY OR LAND, AS SUCH TERMS ARE DEFINED IN THE REAL PROPERTY TAX LAW, WHEN SUCH SERVICES ARE PROVIDED BY A CONTRACTOR, SUBCONTRACTOR, REPAIRPERSON OR OWNER OF SUCH REAL PROPERTY, PROPERTY OR LAND LOCATED IN AN AFFECTED COUNTY DURING THE PERIOD OF TIME DECLARED BY THE GOVERNOR AS A STATE DISASTER EMERGENCY, AS DEFINED BY SECTION TWENTY OF THE EXECUTIVE LAW, AND UP TO SIXTY DAYS THEREAFTER. S 2. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part GG of chapter 57 of the laws of 2010, is amended to read as follows: (ii) Any local law, ordinance or resolution enacted by any city, coun- ty or school district, imposing the taxes authorized by this subdivi- sion, shall omit the residential solar energy systems equipment exemption provided for in subdivision (ee) and the clothing and footwearEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02423-02-2 S. 4180--A 2
exemption provided for in paragraph thirty of subdivision (a) AND THE STATE OF EMERGENCY CLEAN-UP ACTIVITIES PROVIDED FOR IN SUBDIVISION (HH) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to either such residential solar energy systems equipment exemption or such clothing and footwear exemption. S 3. Subdivision (d) of section 1210 of the tax law, as amended by section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to read as follows: (d) A local law, ordinance or resolution imposing any tax pursuant to this section, increasing or decreasing the rate of such tax, repealing or suspending such tax, exempting from such tax the energy sources and services described in paragraph three of subdivision (a) or of subdivi- sion (b) of this section or changing the rate of tax imposed on such energy sources and services or providing for the credit or refund described in clause six of subdivision (a) of section eleven hundred nineteen of this chapter must go into effect only on one of the follow- ing dates: March first, June first, September first or December first; provided, that a local law, ordinance or resolution providing for the exemption described in paragraph thirty of subdivision (a) OR SUBDIVI- SION (HH) of section eleven hundred fifteen of this chapter or repealing any such exemption or a local law, ordinance or resolution providing for a refund or credit described in subdivision (d) of section eleven hundred nineteen of this chapter or repealing such provision so provided must go into effect only on March first. No such local law, ordinance or resolution shall be effective unless a certified copy of such law, ordi- nance or resolution is mailed by registered or certified mail to the commissioner at the commissioner's office in Albany at least ninety days prior to the date it is to become effective. However, the commissioner may waive and reduce such ninety-day minimum notice requirement to a mailing of such certified copy by registered or certified mail within a period of not less than thirty days prior to such effective date if the commissioner deems such action to be consistent with the commissioner's duties under section twelve hundred fifty of this article and the commissioner acts by resolution. Where the restriction provided for in section twelve hundred twenty-three of this article as to the effective date of a tax and the notice requirement provided for therein are appli- cable and have not been waived, the restriction and notice requirement in section twelve hundred twenty-three of this article shall also apply. S 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI- NANCE OR RESOLUTION TO THE CONTRARY: (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR THE SAME STATE OF EMERGENCY CLEAN-UP ACTIVITIES EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES, DURING THE SAME PERIODS EACH YEAR, DESCRIBED IN SUBDIVISION (HH) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION EXACTLY IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOL- UTION SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPO-S. 4180--A 3
RATE SUCH EXEMPTION AS IF IT HAD BEEN DULY ENACTED BY THE STATE LEGISLA- TURE AND APPROVED BY THE GOVERNOR. (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF LOCAL LEGISLATIVE BODY) AS FOLLOWS: SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, STATE OF EMERGENCY CLEAN-UP ACTIVITIES EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVISION (HH) OF SECTION 1115 OF THE NEW YORK TAX LAW SHALL ALSO BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION, DURING THE SAME PERIODS SET FORTH IN SUCH SUBDIVI- SION. SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE YEAR, BUT NOT EARLIER THAN THE YEAR 2012) AND SHALL APPLY TO SALES MADE AND USES OCCURRING DURING THE APPLICABLE EXEMPTION PERIODS EACH YEAR, IN ACCORDANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS OF SECTIONS 1106 AND 1217 OF THE NEW YORK TAX LAW. S 5. Notwithstanding any other provision of state or local law, ordi- nance or resolution to the contrary: (a) Any county or city imposing sales and compensating use taxes pursuant to the authority of subpart B of part I of article 29 of the tax law, acting through its local legis- lative body, is hereby authorized and empowered to elect to provide the exemption from such taxes for new state of emergency clean-up activities exempt from state sales and compensating use taxes described in subdivi- sion (hh) of section 1115 of the tax law, as added by section one of this act, for the periods described therein, whether such taxes are imposed by local law, ordinance or resolution, by enacting a resolution exactly in the form set forth in subdivision (c) of this section, such enactment of such resolution shall be deemed to amend such local law, ordinance or resolution imposing such taxes, and such local law, ordi- nance or resolution shall thenceforth be deemed to incorporate such exemptions. (b) Any city of one million or more in which the taxes imposed by section 1107 of the tax law are in effect, acting through its local legislative body, is hereby authorized and empowered to elect to provide the exemption from such taxes for the same state of emergency clean-up activities exempt from state sales and compensating use taxes described in subdivision (hh) of section 1115 of the tax law, as added by section one of this act, for the periods described therein, by enacting a resol- ution exactly in the form set forth in subdivision (c) of this section, such enactment of such resolution shall be deemed to amend such section 1107 of the tax law and such section 1107 shall thenceforth be deemed to incorporate such exemption for such periods as if it had been duly enacted by the state legislature and approved by the governor and such resolution shall also be deemed to amend any local law, ordinance or resolution enacted by such a city imposing such taxes pursuant to the authority of subdivision (a) of section 1210 of the tax law, whether or not such taxes are suspended at the time such city enacts its resol- ution. (c) Form of Resolution: Be it enacted by the (insert proper title of local legislative body) as follows: Section one: The (county or city) of (locality's name) hereby elects the state of emergency clean-up activities exemption periods commencing (commencement period). Section two: This resolution shall take effect immediately and shall apply to sales made and uses occurring during the applicable periodsS. 4180--A 4
each year, in accordance with applicable transitional provisions of the New York Tax Law. (d) A resolution adopted pursuant to this section shall be effective only if it is adopted exactly as set forth in subdivision (c) of this section and such county or city adopts it, mails a certified copy of it to the commissioner of taxation and finance by certified mail and other- wise complies with the requirements of subdivisions (d) and (e) of section 1210 of the tax law. S 6. This act shall take effect immediately and shall apply to sales made and uses occurring during exemption periods on or after such date in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.