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.

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S4180A-2011 Actions

• May 22, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 17, 2012: PRINT NUMBER 4180A
• Jan 17, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jun 2, 2011: REPORTED AND COMMITTED TO FINANCE
• Mar 22, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S4180A-2011 Meetings

Investigations and Government Operations: May 15, 2012, Investigations and Government Operations: May 22, 2012

S4180A-2011 Votes

S4180A-2011 Memo

BILL NUMBER:S4180A

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.

S4180A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   4180--A

                         2011-2012 Regular Sessions

                              I N  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 footwear

   EXPLANATION--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  periods

 S. 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.