A03431 Summary:

BILL NO    A03431 

SAME AS    
SAME AS S00815

SPONSOR    Lupardo

COSPNSR    Schimminger, Magnarelli, Lifton, Morelle, Cook, Titone, Cahill,
           Lavine, Miller, Weprin, Titus, Brindisi, Englebright, Gunther,
           Barrett, Thiele, DenDekker, Aubry, Skartados, Santabarbara, Stirpe,
           Fahy, McDonald, Brabenec, Kearns, Skoufis

MLTSPNSR   Arroyo, Ceretto, Crespo, Crouch, DiPietro, Duprey, Finch,
           Fitzpatrick, Friend, Glick, Graf, Hawley, Hooper, Lopez, Lupinacci,
           Magee, Markey, McLaughlin, Montesano, Oaks, Palmesano, Paulin, Perry,
           Pretlow, Raia, Saladino, Schimel, Stec, Wright

Amd S1115, Tax L

Provides for an exemption from sales and use taxes on the sale of general
aviation aircraft.
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A03431 Actions:

BILL NO    A03431 

01/22/2015 referred to ways and means
01/06/2016 referred to ways and means
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A03431 Votes:

There are no votes for this bill in this legislative session.
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A03431 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3431
 
SPONSOR: Lupardo (MS)
  TITLE OF BILL: An act to amend the tax law, in relation to exempting from sales and compensating use taxes the purchase of general aviation aircraft; and providing for the repeal of certain provisions upon expiration thereof   PURPOSE: This bill would establish a 5-year pilot program to exempt from sales and use taxes the purchase of general aviation aircraft for a limited time and require a study be conducted by the commissioner of taxation and finance as to the economic and revenue impacts of the exemption.   SUMMARY OF PROVISIONS: § 1 - Titles the act the "New York Aviation Jobs Act." § 2 - Amends Tax Law § 1115 (dd) by amending paragraph 1 to exempt from sales and use taxation the purchase of general aviation aircraft similar to the current exemption granted to commercial service aircraft. § 3 - Requires a study be conducted by the commissioner of taxation and finance as to the economic and revenue impacts of the exemption to be submitted on or after November 1, 2019, to the Governor, temporary pres- ident of the senate and the speaker of the assembly. § 4 - Effective date is April 1, 2016 and shall apply to all sales of general aviation aircraft on or after that date and until March 31, 2021.   JUSTIFICATION: Airports are among the economic engines that fuel growth in the economy of the state and in the communities which they serve. The economic bene- fits of airports in this state are quite impressive. Annual economic activity attributable to aviation is $50 billion. The aviation sector employs more than 394,500 state residents and generates $18 billion in payroll and $4.5 billion in State and local tax revenue annually. This bill will make New York competitive with other states that already exempt sales taxes related to the purchase of general aviation aircraft. Connecticut, Massachusetts, New Jersey, Maine and New Hampshire are a few of the regional states that exempt these aviation purchases from sales and use taxes or provide more favorable tax treatment. NY has lost 700 such aircraft over a ten-year period since 2002. Therefore, this bill establishes a 5-year tax exemption pilot program, similar to what was successfully enacted to exempt maintenance and repair of general aviation aircraft from the sales and use tax several years ago. A NY Tax Department report-A Review of the Sales and Use Tax Exemption for Private Aircraft Parts and Service-on that exemption found that, since its enactment in 2004, New York has attracted significant investment in aviation services, resulting in an expansion of aviation maintenance and repair businesses, the creation of jobs here in New York and an increase in state tax revenue. (FAA data indicates the establish- ment of 23 such major aviation maintenance and repair businesses and 686 new jobs in the state since 2004). By adopting a 5 year exemption pilot program for the purchase of general aviation aircraft, New York will encourage such aircraft and business jets to locate here. Like the maintenance and repair exemption, an exemption for the purchase of aircraft is expected to increase state revenues and leverage significant economic returns for local communities and the state.   LEGISLATIVE HISTORY: 2005-2006: S.3655 - Passed Senate/A.6819-A - Ways & Means 2007-2008: S.425-B - Passed Senate/A.3806-B - Ways & Means 2009-2010: S.4551-A - Investigations & Government Operations/A.5960 - Ways & Means 2011-2012: S.2678 - Passed Senate/A.4818 - Ways & Means 2013-2014: S.273-B - Passed Senate/A.3677-B - Ways & Means   FISCAL IMPLICATIONS: Estimated reduction of $7 million annually (a clear indication that there is barely any new aircraft sales and basings activities happening in New York) will be more than offset by increases in economic activity, jobs and state and local tax revenue (the impact of each business aircraft on average is 5 on airport jobs and $1 million of economic activity according to DOT). The economic development benefits at airports will generate payroll taxes, property taxes, and sales taxes in other ancillary services and increased fuel tax collections from the expected increase of in-state basing of general aviation aircraft and the resulting increase in aviation activity.   EFFECTIVE DATE: This act shall take effect April 1, 2016, and shall apply to sales of general aviation aircraft made and uses occurring on or after that date in accordance with the applicable transitional provisions of section 1106 and 1107 of the tax law, but shall not apply to sales occurring after March 31, 2021, and section one of this act shall expire and be deemed repealed April 1, 2021. Provided, however, that aircraft subject to exemption pursuant to paragraph 1 of subdivision (dd) of section 1115 of the tax law, as amended by section two of this act, shall remain so exempt after the expiration and repeal of section two of this act, including instances where the aircraft is subsequently sold or the ownership is transferred or assigned, for the useful life of the aircraft.
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A03431 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3431
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 22, 2015
                                       ___________
 
        Introduced  by  M.  of  A.  LUPARDO,  SCHIMMINGER,  MAGNARELLI,  LIFTON,
          MORELLE, COOK, SCARBOROUGH, TITONE, CAHILL,  LAVINE,  MILLER,  WEPRIN,
          TITUS,  BRINDISI,  ENGLEBRIGHT,  GUNTHER,  BARRETT, THIELE, DenDEKKER,
          AUBRY, SKARTADOS -- Multi-Sponsored by -- M. of A.    ARROYO,  CAMARA,
          CERETTO, CRESPO, CROUCH, DiPIETRO, DUPREY, FINCH, FITZPATRICK, FRIEND,
          GLICK, GRAF, HAWLEY, HEASTIE, HOOPER, LOPEZ, LUPINACCI, MAGEE, MARKEY,
          McLAUGHLIN,  MONTESANO, OAKS, PALMESANO, PAULIN, PERRY, PRETLOW, RAIA,
          SALADINO, SCHIMEL, STEC, WRIGHT --  read  once  and  referred  to  the
          Committee on Ways and Means
 
        AN  ACT  to  amend  the tax law, in relation to exempting from sales and
          compensating use taxes the purchase of general aviation aircraft;  and
          providing for the repeal of certain provisions upon expiration thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "New York aviation jobs act".
     3    §  2.  Paragraph 1 of subdivision (dd) of section 1115 of the tax law,
     4  as added by section 1 of part L of chapter 60 of the laws  of  2004,  is
     5  amended to read as follows:
     6    (1)  Services  otherwise  taxable under paragraph three of subdivision
     7  (c) of section eleven hundred five or under section eleven  hundred  ten
     8  of  this  article,  sales  of  general  aviation  aircraft, and tangible
     9  personal property purchased and  used  by  the  person  who  sells  such
    10  services  in  performing  such  services,  where such property becomes a
    11  physical component part of the property  upon  which  the  services  are
    12  performed  or  where  such  property is a lubricant applied to aircraft,
    13  shall be exempt from tax under this  article  where  such  services  are
    14  performed on aircraft.
    15    § 3. The commissioner of taxation and finance, in conjunction with the
    16  commissioner of transportation, shall review and analyze all statistical
    17  data  available  for the purpose of determining the economic and revenue
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06332-01-5

        A. 3431                             2
 
     1  impact of the sales and compensating use tax exemption for the  sale  of
     2  general  aviation  aircraft  enacted  by  section  two of this act. Such
     3  review and analysis shall include, but not be limited to, any  increases
     4  in  aviation-related  employment,  aircraft basing, aircraft maintenance
     5  and aircraft hangering within the state. The commissioner shall  compile
     6  his  or  her  findings  into  a  report, which shall be submitted, on or
     7  before November 1, 2020, to the governor, the temporary president of the
     8  senate and the speaker of the assembly.
     9    § 4. This act shall take effect April 1,  2016,  and  shall  apply  to
    10  sales  of  general aviation aircraft made and uses occurring on or after
    11  such effective date  in  accordance  with  the  applicable  transitional
    12  provisions of sections 1106 and 1107 of the tax law, but shall not apply
    13  to  sales  occurring  after  March 31, 2021, and section two of this act
    14  shall expire and be deemed repealed April 1, 2021.   Provided,  however,
    15  that  aircraft  subject to exemption pursuant to paragraph 1 of subdivi-
    16  sion (dd) of section 1115 of the tax law, as amended by section  two  of
    17  this  act,  shall  remain  so  exempt after the expiration and repeal of
    18  section two of this act,  including  instances  where  the  aircraft  is
    19  subsequently  sold  or the ownership is transferred or assigned, for the
    20  useful life of the aircraft. Provided, further, that the commissioner of
    21  taxation and finance shall be immediately authorized to adopt and  amend
    22  any   rules  or  regulations  and  to  issue  any  procedure,  forms  or
    23  instructions necessary to implement section  two  of  this  act  on  its
    24  effective date.
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