Bill S4464-2013

Repeals the sales tax on transportation service

Repeals the sale tax on transportation service.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Apr 30, 2013: REPORTED AND COMMITTED TO FINANCE
  • Apr 3, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 30, 2013
Ayes (6): Marcellino, Carlucci, Nozzolio, O'Mara, Zeldin, Diaz
Ayes W/R (3): Golden, Hoylman, Squadron

Memo

BILL NUMBER:S4464

TITLE OF BILL: An act to amend the tax law, in relation to the imposition of sales tax upon transportation service; and to repeal certain provisions of such law relating thereto

PURPOSE:

To repeal the sales tax on transportation services

SUMMARY OF PROVISIONS:

Sections 1 through 6 of the bill repeal and amend those sections of law which deal with the definition, computation, imposition and administration of sales taxes on certain transportation services by black cars, limousines, and community car services.

Section 7 establishes the effective date.

JUSTIFICATION:

New York City's For-Hire Vehicle industry plays a crucial role in the transportation of the City's residents. The 2010 state budget imposed an inequitable sales tax on the use of black car and luxury limousine services while exempting other livery services. This action created an unequal economic playing field based on a distinction without real difference. While the New York City Taxi and Limousine Commission applies slightly different rules to livery and black car services, to consumers saddled with these tax payments, there is little if any substantive difference in the experience. Consequently, this sales tax scheme has bled the black car industry and created unnecessary costs for businesses across the city. Black Car drivers are overwhelmingly New York City residents and taxpayers and putting them out of work likely harms the state's bottom line more than the tax helps it. In order to foster fair competition and keep the black car industry viable, this sales tax must be repealed.

LEGISLATIVE HISTORY:

This is a new bill

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 law.


Text

STATE OF NEW YORK ________________________________________________________________________ 4464 2013-2014 Regular Sessions IN SENATE April 3, 2013 ___________
Introduced by Sen. PERALTA -- 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 the imposition of sales tax upon transportation service; and to repeal certain provisions of such law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 34 of subdivision (b) of section 1101 of the tax law is REPEALED. S 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is REPEALED. S 3. Subdivision (o) of section 1111 of the tax law is REPEALED. S 4. Subdivision (hh) of section 1115 of the tax law, as added by chapter 9 of the laws of 2012, is REPEALED. S 5. Section 1213 of the tax law, as amended by section 2 of part WW of chapter 57 of the laws of 2010, is amended to read as follow: S 1213. Deliveries outside the jurisdiction where sale is made. Where a sale of tangible personal property or services, including prepaid telephone calling services, but not including other services described in subdivision (b) of section eleven hundred five of this chapter, including an agreement therefor, is made in any city, county or school district, but the property sold, the property upon which the services were performed or prepaid telephone calling or other service is or will be delivered to the purchaser elsewhere, such sale shall not be subject to tax by such city, county or school district. However, if delivery occurs or will occur in a city, county or school district imposing a tax on the sale or use of such property, prepaid telephone calling or other services, the vendor shall be required to collect from the purchaser, as provided in section twelve hundred fifty-four of this article, the aggregate sales or compensating use taxes imposed by the city, if any,
county and school district in which delivery occurs or will occur, for distribution by the commissioner to such taxing jurisdiction or juris- dictions. For the purposes of this section delivery shall be deemed to include transfer of possession to the purchaser and the receiving of the property or of the service, including prepaid telephone calling service, by the purchaser. [Notwithstanding the foregoing, where a transportation service described in paragraph ten of subdivision (c) of section eleven hundred five of this chapter begins in one jurisdiction but ends in another jurisdiction, any tax imposed pursuant to the authority of this article shall be due the jurisdiction or jurisdictions where the service commenced.] S 6. Section 1283 of the tax law is REPEALED. S 7. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.

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