Exempts railroad rolling stock from sales and compensating use taxes; defines "railroad rolling stock" as a device, which is used exclusively upon stationary rails or tracks to transport goods, commodities, or equipment, including, but not limited to, flat cars, box cars, gondolas, hopper cars, or other freight railroad cars.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5823
SPONSOR: Burke TITLE OF BILL:
An act to amend the tax law, in relation to exempting railroad rolling
stock from sales and compensating use taxes
PURPOSE:
To amend the tax law, creating a sales and use tax exemption for
manufacturers of railroad rolling stock.
SUMMARY OF PROVISIONS:
Section 1. Provides for the amending of the tax law to create the sales
and use tax exemption and to define "railroad rolling stock" for the
purpose of this section.
Section two establishes the effective date.
JUSTIFICATION:
New York is the only state in the country with a railroad rolling stock
manufacturing plant that does not exempt such goods from sales and use
tax when sold directly by the manufacturer, placing them at a compet-
itive disadvantage. Importantly, this legislation provides that
exemption in anticipation of it promoting growth in the industry, there-
by increasing its workforce, by allowing it to compete fairly in the
interstate market with out-of-state manufacturers.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Takes effect on the first day of a sales tax quarterly period next
commencing at least sixty days after this act shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
5823
2023-2024 Regular Sessions
IN ASSEMBLY
March 23, 2023
___________
Introduced by M. of A. BURKE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to exempting railroad rolling
stock from sales and compensating use taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1115 of the tax law is amended
2 by adding a new paragraph 47 to read as follows:
3 (47) Newly manufactured railroad rolling stock used in interstate
4 commerce sold by the manufacturer. For purposes of this paragraph, the
5 term "railroad rolling stock" shall mean a device, which is used exclu-
6 sively upon stationary rails or tracks to transport goods, commodities,
7 or equipment, including, but not limited to, flat cars, box cars, gondo-
8 las, hopper cars, or other freight railroad cars.
9 § 2. This act shall take effect on the first day of a sales tax quar-
10 terly period, as described in subdivision (b) of section 1136 of the tax
11 law, next commencing at least 60 days after this act shall have become a
12 law. Effective immediately, the addition, amendment and/or repeal of any
13 rule or regulation necessary for the implementation of this act on its
14 effective date are authorized to be made and completed on or before such
15 effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09876-01-3
