Relates to the imposition of sales tax on snowmobiles and all terrain vehicles.
Ayes (57): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Larkin, Latimer, LaValle, Libous, Marcellino, Marchione, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Nays (5): Felder, Griffo, Lanza, Little, Martins
Excused (1): Squadron
TITLE OF BILL: An act to amend the tax law, in relation to the imposition of sales tax on snowmobiles and all terrain vehicles
PURPOSE: To simplify and make uniform the collection of sales tax for all terrain vehicles (ATVs) and snowmobiles.
SUMMARY OF PROVISIONS: This bill amends Paragraph 1 of subdivision (g) of section 1132 of the Tax Law, as amended by chapter 402 of the laws of 1986 and establishes that sales or compensating use taxes collected on ATVs and snowmobiles shall be determined by reference to the place of residence of the owner of the ATV or snowmobile.
EXISTING LAW: As currently written paragraph 1 of subdivision (g) of section 1132 of the Tax Law requires the seller to apply the higher sales tax rate in effect either: (1) at the place where the buyer took delivery or where the ATV or snowmobile is to be stored, providing the buyer has a residence there.
JUSTIFICATION: Under current law, ATVs and snowmobiles are treated differently than motor vehicles, trailers, and boats. Instead of the owner's place of residence controlling the sales tax rate, the seller must use the higher tax rate of either the place where the new owner took delivery, or the place where the ATV or snowmobile is to be stored or used, provided that the new owner has a residence there. This places the seller in the position of conducting an investigation into where the buyer will store or use the ATV or snowmobile and whether the buyer has a home there. It would simplify and make uniform the collection of sales tax to just use the new owner's residence in determining the sales tax, as with motor vehicles, trailers and boats.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: This would be of no cost to the State. It would more fairly and evenly distribute sales tax to the municipalities were the ATV and snowmobile owners live.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 5222 2013-2014 Regular Sessions IN SENATE May 14, 2013 ___________Introduced by Sen. MARCHIONE -- 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 on snowmobiles and all terrain vehicles THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision (g) of section 1132 of the tax law, as amended by chapter 402 of the laws of 1986, is amended to read as follows: (1) The clerk of each county when performing the function of registra- tion of a motor vehicle, snowmobile, vessel or all terrain vehicle or accepting an application for a certificate of title of a motor vehicle or vessel, pursuant to the authority of the vehicle and traffic law, or the commissioner of motor vehicles, when such commissioner performs such functions, prior to performing such functions, shall act as the agent of the state tax commission to collect any retail sales tax due under this article and under a sales tax imposed pursuant to section twelve hundred ten or twelve hundred eleven upon sales of such motor vehicles, snowmo- biles, vessels or all terrain vehicles by persons other than dealers registered under sections four hundred fifteen, twenty-two hundred twen- ty-two, twenty-two hundred fifty-seven and twenty-two hundred eighty-two of the vehicle and traffic law. Such county clerks and such commissioner shall also act as such agents to collect any compensating use tax due under section eleven hundred ten and under a compensating use tax imposed pursuant to section twelve hundred ten or twelve hundred eleven for the use of a motor vehicle, snowmobile, vessel or all terrain vehi- cle within this state. The commissioner of motor vehicles shall act as such agent without fee. Each such county clerk shall, after deducting his fee as provided in paragraph two of this subdivision, and such commissioner shall remit to the tax commission all funds collectedEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10882-01-3 S. 5222 2
pursuant to this subdivision and shall follow such procedures and keep such records as shall be prescribed by the tax commission. SALES OR COMPENSATING USE TAXES COLLECTED PURSUANT TO THE PROVISIONS OF THIS SECTION ON SNOWMOBILES OR ALL TERRAIN VEHICLES SHALL BE DETERMINED BY REFERENCE TO PLACE OF RESIDENCE OF THE OWNER OF THE SNOWMOBILE OR ALL TERRAIN VEHICLE. S 2. This act shall take effect immediately and shall apply to the quarterly tax periods which begin on and after such date.