This bill has been amended

Bill S5235-2011

Relates to the tax on receipts derived from removing waste from certain transfer stations or debris processing facilities

Relates to the tax on receipts derived from removing waste from certain transfer stations or debris processing facilities.

Details

Actions

  • Jun 18, 2012: returned to senate
  • Jun 18, 2012: RECALLED FROM ASSEMBLY
  • Jun 12, 2012: referred to ways and means
  • Jun 12, 2012: DELIVERED TO ASSEMBLY
  • Jun 12, 2012: PASSED SENATE
  • Jun 12, 2012: ORDERED TO THIRD READING CAL.1193
  • Jun 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jan 9, 2012: REPORTED AND COMMITTED TO FINANCE
  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Jun 20, 2011: referred to ways and means
  • Jun 20, 2011: DELIVERED TO ASSEMBLY
  • Jun 20, 2011: PASSED SENATE
  • Jun 20, 2011: ORDERED TO THIRD READING CAL.1388
  • Jun 20, 2011: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 2, 2011: REPORTED AND COMMITTED TO FINANCE
  • May 3, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jun 2, 2011
Ayes (5): Marcellino, Alesi, Golden, Nozzolio, Zeldin
Ayes W/R (3): Squadron, Diaz, Peralta
VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jan 9, 2012
Ayes (6): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Diaz
Ayes W/R (2): Squadron, Peralta
VOTE: COMMITTEE VOTE: - Rules - Jun 12, 2012
Ayes (21): Skelos, Alesi, Farley, Fuschillo, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Nozzolio, Saland, Seward, Sampson, Breslin, Dilan, Hassell-Thompson, Montgomery, Parker, Perkins, Stewart-Cousins
Ayes W/R (2): Maziarz, Duane
Excused (1): Krueger

Memo

BILL NUMBER:S5235

TITLE OF BILL: An act relating to the sales and compensating use tax on receipts derived from removing waste material from certain regulated transfer stations or construction and demolition debris processing facilities

PURPOSE: To reaffirm the intention of the legislature that the services of removing waste material from a waste transfer station or a construction and demolition debris processing facility, where the waste removed was not generated by said facility, was not subject to New York state and local sales taxes as the service of maintaining, servicing or repairing the real property of those facilities, and ensure a uniform policy with regard to such services.

SUMMARY OF PROVISIONS: Section 1 of the bill provides that any liability for state and local sales and compensating use taxes with respect to the services of removing waste material from a waste transfer station or construction and demolition debris processing facility regulated by the NYS Department of Environmental conservation, where the waste removed was not generated by said facility, for periods ending after April 1, 1997, and before December 1, 2005, shall be cancelled and, if paid, refunded.

Section 2 of the bill provides that the act shall take effect immediately.

JUSTIFICATION: One of the categories of enumerated services that are subject to sales tax is the maintaining, servicing or repairing of real property. These are services that relate to keeping real property in a condition of fitness, efficiency, readiness or safety, or restoring it to such condition. Examples of such services would be painting, lawn maintenance and tree spraying as well as plumbing or electrical repairs. The removal of trash or garbage is also considered to be such a taxable service.

Once trash is taken from a home or business property, it is often taken to a transfer station, regulated by the NYS Department of Environmental Conservation, where it is sorted and combined with refuse taken from other facilities so that it can be economically shipped in bulk to its ultimate destination. Previously, the question was raised as to whether this subsequent bulk shipment was merely a nontaxable transportation service or should be considered by itself as a taxable maintenance service to the real property of the transfer station. In May of 1997, an Advisory Opinion was issued by the Department of Taxation and Finance that considered it to be such a taxable service. TSB-A-97(32)S.

That Advisory opinion contains a strained interpretation of the Tax Law that is beyond that contemplated by the Legislature when it sought to impose a tax on the services of maintaining real property.

For that reason, the legislature passed a law in 2005 to specifically exclude such services from taxation. This bill seeks to address the tax status for the services of such waste removal from a transfer station for the period between the issuance of the Advisory Opinion and the effective date of Chapter 321 of the Laws of 2005 to solidify one cohesive policy and cease the continued application of sales and compensating use tax by the Department of Taxation and Finance for this period.

FISCAL IMPLICATIONS: To be determined.

PRIOR LEGISLATIVE HISTORY: New bill.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5235 2011-2012 Regular Sessions IN SENATE May 3, 2011 ___________
Introduced by Sen. MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT relating to the sales and compensating use tax on receipts derived from removing waste material from certain regulated transfer stations or construction and demolition debris processing facilities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding the provisions of chapter 321 of the laws of 2005, any liability for state and local sales and compensating use taxes, and any interest or penalties thereon, for services specified in clause (iv) of paragraph 5 of subdivision (c) of section 1105 of the tax law, with respect to periods ending after March 1, 1997, and prior to December 1, 2005, whether or not such liability has been paid and regardless of whether or not any assessment for such taxes, interest or penalties have been finally or irrevocably fixed by administrative or judicial proceedings, shall be cancelled and, if paid, refunded in accordance with the provisions of section one thousand one hundred thir- ty-nine of the tax law, provided, however, that any such application for refund of such taxes previously paid to the department of taxation and finance shall be submitted within one year of the effective date of this act, whereupon it shall be deemed to have been submitted in a timely manner. S 2. This act shall take effect immediately.

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