Relates to providing a sales and compensating use tax exemption in certain areas of New York city.
TITLE OF BILL: An act to amend the tax law, in relation to providing a sales and compensating use tax exemption in certain areas of New York city
PURPOSE OR GENERAL IDEA OF BILL: To provide that there will be no sales tax, on goods or services that are less than $110 for a period of six months from the first day construction has commenced within a certain portion of the Second Avenue Subway construction to assist the "Shop Second Avenue" campaign currently underway in bringing consumers in the doors of these beleaguered businesses that are likely to continue shopping there after the sales tax is reinstated.
SUMMARY OF PROVISIONS: Section 1 adds a new paragraph 39 to subdivision (b) of section 1101 of the tax law defining a good or service as having a value of less than one hundred ten dollars in the aggregate. Section 2 adds a new paragraph 44 to subdivision (a) of section 1115 of the tax law providing a sale tax exemption for goods and services for a six month period within the business zone area commencing on the first day of a period of authorized construction. This legislation also defines the business zone area as well as empowers the commissioner to determine the period of authorized construction for each business zone area.
Section 3 contains the effective date.
JUSTIFICATION: The East Side of Manhattan is currently undergoing one of the most significant construction projects in decades -- the construction of the long awaited Second Avenue subway. The construction has begun and will eventually run through parts of eight Assembly Districts. While the Second Avenue subway will eventually bring much needed transportation improvements to the East Side, it is currently having a substantially negative effect on local businesses. Some establishments in the heart of the initial construction have lost 20 to 30 percent of business, and others have closed permanently.
This bill would create a Second Avenue Subway Construction Sales Tax Free Zone with the purpose of providing incentive for consumers to shop at businesses currently affected by the construction of the Second Avenue Subway who are likely to continue shopping and supporting these businesses after six months have passed and the sales tax is reinstated.
PRIOR LEGISLATIVE HISTORY: 2008: A.10743 Referred to Ways and Means; S.8191 Referred to Investigations and Government Operations. 2011-2012: S3172A
FISCAL IMPLICATIONS FOR STATE LOCAL GOVERNMENTS: Unknown.
EFFECTIVE DATE: This act would take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 915 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. SERRANO -- 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 providing a sales and compensating use tax exemption in certain areas of New York city THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (b) of section 1101 of the tax law is amended by adding a new paragraph 39 to read as follows: (39) GOODS AND SERVICES SHALL MEAN ANY GOOD OR SERVICE THE VALUE OF WHICH IS LESS THAN ONE HUNDRED TEN DOLLARS IN VALUE IN THE AGGREGATE. S 2. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44)(I) GOODS AND SERVICES, AS DEFINED IN PARAGRAPH THIRTY-NINE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, SOLD IN A BUSINESS ZONE AREA. SUCH EXEMPTION SHALL CONTINUE FOR SIX MONTHS FOR ANY GIVEN BUSINESS ZONE AREA COMMENCING ON THE FIRST DAY OF A PERIOD OF AUTHORIZED CONSTRUCTION. (II) FOR PURPOSES OF THIS PARAGRAPH, BUSINESS ZONE AREA SHALL MEAN THOSE BUSINESSES IN THE CITY OF NEW YORK THAT ARE NO MORE THAN ONE HUNDRED FEET FROM ANY CONSTRUCTION IN THE FOLLOWING AREAS: (A) 125TH STREET FROM 5TH AVENUE TO 3RD AVENUE; (B) 2ND AVENUE FROM 129TH STREET TO 92ND STREET; (C) 2ND AVENUE FROM 87TH STREET TO 83RD STREET; (D) 2ND AVENUE FROM 73RD STREET TO 69TH STREET; (E) 2ND AVENUE FROM 65TH STREET TO 58TH STREET; (F) 2ND AVENUE FROM 45TH STREET TO 41ST STREET; (G) 2ND AVENUE FROM 36TH STREET TO 32ND STREET; (H) 2ND AVENUE FROM 26TH STREET TO 23RD STREET; (I) 2ND AVENUE FROM 15TH STREET TO 11TH STREET;EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00565-01-3 S. 915 2
(J) 2ND AVENUE FROM 6TH STREET TO 4TH STREET; (K) 2ND AVENUE FROM 4TH STREET TO HOUSTON STREET; (L) CHRYSTIE STREET FROM HOUSTON STREET TO CANAL STREET; (M) BOWERY FROM PELL STREET TO WORTH STREET; (N) WORTH STREET FROM MOTT STREET TO ST. JAMES PLACE; (O) WATER STREET FROM DOVER STREET TO JOHN STREET; (P) WATER STREET FROM WALL STREET TO COENTIES SLIP; (Q) THE INTERSECTION OF WATER STREET AND WHITEHALL STREET. (III) FOR THE PURPOSES OF THIS PARAGRAPH, THE COMMISSIONER SHALL DETERMINE THE PERIOD OF AUTHORIZED CONSTRUCTION FOR EACH BUSINESS ZONE AREA SPECIFIED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. S 3. This act shall take effect immediately.