Bill S4311-2013

Provides for a sales tax exemption for water and sewer service line protection programs

Provides for a sales tax exemption for water and sewer service line protection programs.

Details

Actions

  • Oct 21, 2013: SIGNED CHAP.400
  • Oct 9, 2013: DELIVERED TO GOVERNOR
  • Jun 20, 2013: returned to senate
  • Jun 20, 2013: passed assembly
  • Jun 20, 2013: ordered to third reading rules cal.594
  • Jun 20, 2013: substituted for a6217
  • Jun 11, 2013: referred to ways and means
  • Jun 11, 2013: DELIVERED TO ASSEMBLY
  • Jun 11, 2013: PASSED SENATE
  • Jun 10, 2013: ORDERED TO THIRD READING CAL.1193
  • Jun 10, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Mar 20, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

Memo

BILL NUMBER:S4311

TITLE OF BILL: An act to amend the tax law, in relation to providing an exemption for water and sewer service line protection programs

PURPOSE:

This legislation provides for a sales tax exemption for water and sewer service line protection programs.

SUMMARY OF PROVISIONS:

Section one amends Section 1115 of the tax law by adding a new subdivision (ii) to read as follows: Receipts from sales of and fees associated with water and sewer service line protection programs sold to owners of residential property shall be exempt from the taxes imposed by this article.

Section two stipulates that this act shall take effect immediately.

JUSTIFICATION:

Property owners in New York are responsible for maintaining their water and sewer service lines, which are buried underground and run from a building to the City-owned mains under the street. Residential property owners on average pay between $3,000 and $5,000 to repair a water line break and between $10,000 and $15,000 to repair a sewer line break in New York City. Homeowners have the option of enrolling in a service line protection Program for a monthly fee to safeguard them from the high costs of service line breaks. The Program is managed by American Water Resources (AWR) through the Department of Environmental Protection.

The annual cost of owning and maintaining a home is already a costly undertaking. In New York State, insurance does not include sales tax, and the protection program serves the same purpose as an insurance plan. Homeowners should not be subject to unnecessary taxes on their water and sewer line protection programs, and this act will ensure exemption from the burden of excessive fees.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4311 2013-2014 Regular Sessions IN SENATE March 20, 2013 ___________
Introduced by Sen. GOLDEN -- 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 providing an exemption for water and sewer service line protection programs 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 (ii) to read as follows: (II) RECEIPTS FROM SALES OF AND FEES ASSOCIATED WITH WATER AND SEWER SERVICE LINE PROTECTION PROGRAMS SOLD TO OWNERS OF RESIDENTIAL PROPERTY SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS ARTICLE. S 2. This act shall take effect immediately.

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