BILL NUMBER:S4701

TITLE OF BILL:

An act to amend the religious corporations law, in relation to the sale
of monuments

PURPOSE:

To prohibit religious corporations owning, managing or controlling a
cemetery from selling monuments.

PROVISIONS:

Section 1 states that no religious corporation owning, managing or
controlling a cemetery shall, directly or indirectly, engage in the sale
of monuments, not including flush bronze markers, nor shall monuments be
displayed for sale on the property of a religious corporation, whether
such property is located on cemetery grounds or elsewhere.

Further, no such religious corporation may authorize or permit any
employee or trustee or director thereof to advertise or make known his
or her relationship to such religious corporation or cemetery if such
person is engaged in the sale of monuments outside of his or her employ-
ment by or affiliation with the religious corporation or the cemetery.

              

Section 2 states that this act shall take effect on the thirtieth day
after it shall have become a law.

JUSTIFICATION:

This bill is essential to protect a vital industry in New York. The
monument industry in New York is comprised of roughly 400 small busi-
nesses located across the State. Each business is independently owned
and operated, in most cases by families that have provided custom memo-
rials for generations. Monument companies compete with one another for
the honor of memorializing the loss of loved ones, providing fair compe-
tition that benefits consumers who are able to shop around for a reason-
able price. All monument builders pay taxes to the State of New York on
their properties, equipment, office supplies, payrolls, etc. These small
businesses are also required to collect a use tax on every monument they
sell. Monument builders must take into account the taxes their company
must pay when they set the price of their monuments in order to ensure
their companies remain profitable and continue employing their workers.

For any small business to be successful there needs to be a level play-
ing field in terms of competition in their product's market. Due to the
tax burdens that are inherent in operating a for-profit monument busi-
ness in New York, it is crucial to the survival of this industry that
they not be forced to compete with tax exempt cemeteries for the sale of
memorials. All cemeteries in New York are tax exempt, allowing them to
set their prices without consideration for the same overhead costs as

the taxpaying monument industry. While a portion of these tax exempt
cemeteries have been prohibited from selling monuments for more than 60
years, others that currently sell monuments have an unfair competitive
advantage that has resulted in a loss of revenue for the tax-paying
monument industry. The industry estimates a loss of 20-30 percent of
their market share to tax-exempt cemeteries, resulting in a loss of
roughly $10 million in tax revenue to the State. This bill is vital to
ensure the monument industry's continued presence in New York.

PRIOR LEGISLATIVE HISTORY:

2015 Session - New Legislation

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect 30 days after it shall have become a law.