Bill S6590-2013

Creates a tax exemption for leasing of certain aircraft used for flight schools

Creates a tax exemption for leasing of certain aircraft used for flight schools.

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  • Feb 11, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S6590

TITLE OF BILL: An act to amend the tax law, in relation to creating a tax exemption for leasing of certain aircraft used for flight schools

SUMMARY OF PROVISIONS: Section 1 - Subdivision (a) of section 1115 of the Tax Law is amended by adding a new paragraph 44 to read as follows: (44) Notwithstanding the provisions of subparagraph three of paragraph (A) of subdivision (i) of section eleven hundred eleven of this article, leases and rentals of non-commercial aircraft having a seating capacity of less than twenty passengers and a maximum payload capacity of less than six thousand pounds that are used for training and educational purposes.

Section 2 - This act shall take effect on the first day of a sales tax quarterly period, as described in subdivision (b) of section 1136 of the Tax Law, next commencing at least sixty days after this act shall have become law and shall apply in accordance with the applicable transitional provisions of section 1106 and 1217 of the Tax Law; provided, further, that the Commissioner of Taxation and Finance shall be authorized on and after the date this act shall have become law to take steps necessary to implement the provisions of this act on its effective date.

JUSTIFICATION: For decades, the system in place was that buyers of aircraft who rented their planes out for the purpose of flight training were exempt from paying sales tax on the original purchase of the aircraft. Flight training owners are now forced to go out of business with the state's reinterpretation of its sales tax code.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6590 IN SENATE February 11, 2014 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to creating a tax exemption for leasing of certain aircraft used for flight schools THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE, LEASES AND RENTALS OF NONCOMMERCIAL AIRCRAFT HAVING A SEATING CAPACITY OF LESS THAN TWENTY PASSENGERS AND A MAXIMUM PAYLOAD CAPACITY OF LESS THAN SIX THOUSAND POUNDS THAT ARE USED FOR TRAINING AND EDUCATIONAL PURPOSES. S 2. This act shall take effect on the first day of a sales tax quar- terly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least sixty days after this act shall have become law and shall apply in accordance with the applicable transi- tional provisions of sections 1106 and 1217 of the tax law; provided, further, that the commissioner of taxation and finance shall be author- ized on and after the date this act shall have become a law to take steps necessary to implement the provisions of this act on its effective date.

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