Establishes a sales and compensating use tax exemption for the receipts from the provision of transportation of used goods that are going to be recycled, reused or remanufactured.
TITLE OF BILL: An act to amend the tax law, in relation to exempting from sales and compensating use tax, receipts from the provision of transportation of used tangible personal property for the purpose of recycling, reuse or remanufacture
PURPOSE OR GENERAL IDEA OF BILL: The bill provides that costs for transporting property for recycling, reuse or remanufacturing be exempt from the State sales and use tax.
SUMMARY OF SPECIFIC PROVISIONS: The bill adds new subdivision 1115-jj to the Tax Law to provide an exemption from the State sales and use tax for costs of transporting materials for recycling, reuse or remanufacturing.
JUSTIFICATION: The bill establishes an incentive to recycle, reuse or remanufacture materials by removing the NYS sales and use tax from the transport costs for such materials. This modest incentive will keep additional materials, such as electronic equipment, from being thrown into landfills, rather than recycled for reuse and remanufacturing.
PRIOR LEGISLATIVE HISTORY: 2013-14: A.1365/Ways and Means 2011-12: A.1173/Ways and Means 2009-10: A.1349/Ways and Means 2007-08: A.3361/Ways and Means 2005-06: A.3391/Ways and Means 2003-04: A.2962/Ways and Means 2002: A.10149/Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: A modest impact is anticipated from the loss of NYS sales and use tax on transportation costs for recycling materials, which is more than offset by the savings from reduction of materials entering landfills.
EFFECTIVE DATE: The bill would take effect the first day of the sales quarterly period.
STATE OF NEW YORK ________________________________________________________________________ 5376 2015-2016 Regular Sessions IN SENATE May 14, 2015 ___________Introduced by Sen. AVELLA -- 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 exempting from sales and compensating use tax, receipts from the provision of transportation of used tangible personal property for the purpose of recycling, reuse or remanufacture THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1115 of the tax law is amended by adding a new subdivision (jj) to read as follows: (JJ) RECEIPTS FROM THE PROVISION OF THE TRANSPORTATION OF USED TANGI- BLE PERSONAL PROPERTY FOR THE PURPOSE OF RECYCLING, REUSING OR REMANU- FACTURING SUCH PROPERTY. S 2. This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, beginning not less than 90 days after the date this act shall have become a law and shall apply to the provision of transportation on or after such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06515-01-5