This bill has been amended

Bill S4920-2013

Eliminates the sales tax on transportation services; repealer

Eliminates the sales tax on transportation services.

Details

Actions

  • May 30, 2013: REPORTED AND COMMITTED TO FINANCE
  • May 1, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 30, 2013
Ayes (6): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin
Ayes W/R (2): Hoylman, Squadron
Excused (1): Diaz

Memo

BILL NUMBER:S4920

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

PURPOSE: The purpose of this bill is to repeal the sales tax and related expenses charged on certain transportation services.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 repeals: paragraph 34 of subdivision (b) of section 1101 of the tax law; paragraph 10 of subdivision (c) of section 1105 of the tax law; subdivision (1)of section 1106 of the tax law; subdivision (o) of section 111 of the tax law.

Further Section 1213 of the tax law amends current law to exclude certain transportation services from collecting sales tax on the services provided.

Finally, Section 1 provides the effective date.

JUSTIFICATION: In 2009 a hidden sales tax was imposed on the livery industry. This new tax was specifically aimed at services for sedans, vans, SUV's and limos; leaving public transportation, taxi's, and buses untaxed. This new responsibility caught the entire industry off guard, and creates an unfair disadvantage to the industry when purchasing tangible property.

This legislation would repeal several provisions that exist in current law in order to equalize the tax burden for the transportation industry. This legislation will provide a much needed tax relief to small businesses, as well as help to offset the rising costs that the livery industry faces.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to the quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing September 1, 2014 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law.


Text

STATE OF NEW YORK ________________________________________________________________________ 4920 2013-2014 Regular Sessions IN SENATE May 1, 2013 ___________
Introduced by Sen. GRISANTI -- 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 eliminating sales tax on transportation services; 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 (1) of section 1106 of the tax law is REPEALED. S 4. Subdivision (o) of section 1111 of the tax law 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 follows: 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. This act shall take effect immediately and shall apply to the quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing September 1, 2014 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus