Provides that the use tax on heating fuels shall be suspended during winter months for certain low income senior citizens.
TITLE OF BILL: An act to amend the tax law, in relation to suspending imposition of the compensating use tax on heating fuels for certain senior citizens
PURPOSE OR GENERAL IDEA OF BILL: To extend a tax exemption to Senior Citizens who do not qualify for energy assistance programs, and whose income does not exceed the qualifying income by five hundred dollars.
SUMMARY OF SPECIFIC PROVISIONS: This bill amends Section 1115 of the tax law by adding a new subdivision (ii). This bill exempts persons sixty-five years or older who do not qualify for the energy assistance program established by section ninety-seven of the social services law, whose income does not exceed t.he qualifying income by five hundred dollars, from the tax on retail sales imposed under section eleven hundred ten of this article, during the months of December, January, and February.
JUSTIFICATION: This Winter heating costs are projected will rise about 20 percent for heating oil users, 15 percent for natural gas customers, 13 percent for propane customers, and 5 percent for electricity customers, according to the Energy Information Administration. The increase in prices will significantly impact the poor and those on fixed incomes. This bill will extend tax credit to those who are sixty-five and older and missed the qualifying income levels by five hundred dollars or less. This will ensure that the impact of the projected price increase is minimized, and it will protect the elderly who are financially vulnerable from enduring increased hardship this winter.
PRIOR LEGISLATIVE HISTORY: 2011-12: S.1082/A.10663 - Died in Energy & Telecomm 2009-10: S.2547/A.5266 - Energy & Telecommunications/ways & Means 2008-09: S.2647 2006-07: S.6401
FISCAL IMPLICATIONS: There will be a minimal loss of revenue from qualifying seniors. Due to the higher cost of fuel, the revenues will remain constant or increase with the difference in revenue paid by non-qualifying persons.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 622 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the tax law, in relation to suspending imposition of the compensating use tax on heating fuels for certain senior citizens 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 (ii) to read as follows: (II) RECEIPTS FROM THE SALE OF HEATING FUELS SOLD DURING THE MONTHS OF DECEMBER, JANUARY, AND FEBRUARY, WHICH ARE SOLD FOR HOME USE BY PERSONS SIXTY-FIVE YEARS OLD OR OLDER WHO DO NOT QUALIFY FOR THE LOW INCOME HOME ENERGY ASSISTANCE PROGRAM ESTABLISHED BY SECTION NINETY-SEVEN OF THE SOCIAL SERVICES LAW, BUT WHOSE INCOME IS NOT ABOVE FIVE HUNDRED DOLLARS MORE THAN THE QUALIFYING INCOME FOR SUCH PROGRAM, SHALL BE EXEMPT FROM THE TAX ON RETAIL SALES IMPOSED UNDER SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02771-01-3