Eliminates the sales tax on transportation services.
Ayes (33): Bonacic, Farley, Flanagan, Golden, Griffo, Grisanti, Hannon, Lanza, Larkin, LaValle, Little, Marcellino, O'Mara, Ranzenhofer, Robach, Savino, Seward, Young, Valesky, Martins, Krueger, Diaz, Dilan, Rivera, Gianaris, Breslin, Montgomery, Parker, Peralta, Perkins, Stavisky, Kennedy, Espaillat
Ayes W/R (3): DeFrancisco, Nozzolio, Squadron
Nays (1): Hassell-Thompson
Ayes (56): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Griffo, Grisanti, Hannon, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Hoylman
Excused (4): Espaillat, Golden, Hassell-Thomps, Smith
BILL NUMBER:S4920A REVISED 11/21/13
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: $32 million for the first fiscal year being split between State and Local $48 million each year thereafter split between State and Local.
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, 2015 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law.
STATE OF NEW YORK ________________________________________________________________________ 4920--A 2013-2014 Regular Sessions IN SENATE May 1, 2013 ___________Introduced by Sens. GRISANTI, GOLDEN, LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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, asEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09929-02-3 S. 4920--A 2
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, 2015 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law.