Rpld §1115 sub (a) ¶29, §1118 subs 9 & 10, amd §1118, Tax L
Repeals certain provisions relating to use tax exemptions for certain race horses; prevents nonresident race horse owners from avoiding use tax in certain situations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1438
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the tax law, in relation to use tax exemptions for
certain race horses; and to repeal certain provisions of such law relat-
ing thereto
PURPOSE:
This bill would eliminate certain tax exemptions for horse racing in New
York State.
SUMMARY OF SPECIFIC PROVISIONS:
Section one repeals paragraph 29 of subdivision (a) of section 1115 of
the tax law.
Section two repeals subdivisions 9 and 10 of section 1118 of the tax
law.
Section three amends paragraph (b) of subdivision 2 of section 1118 of
the tax law. Section four establishes the effective date.
JUSTIFICATION:
Horse racing attendance in New York State has sharply declined over the
years. While the summer racing season at Saratoga remains popular,
stands at Yonkers Raceway, Aqueduct Racetrack and others have become
practically empty. The decline in the popularity of horse racing in
recent years has been partly attributed to the public's increasing
disapproval of cruelty within the industry, evidenced by doping scandals
and high numbers of injuries and deaths. Despite horse racing's dimin-
ishing attraction,
New York State continues to provide millions of dollars in subsidies
each year to prop up the industry. Other states, including Kentucky,
California, Illinois, and Texas do not provide state subsidies to their
racing industry as New York does. New York State also exempts the
purchase of race horses from state sales and use taxes. These horses,
which cost tens of thousands of dollars, are purchased by wealthy indi-
viduals who can afford to pay the tax. By beginning to eliminate the tax
exemptions and subsidies provided to the racing industry, New York can
make greater investments in education, housing and other underfunded
areas.
LEGISLATIVE HISTORY:
2021-22: A.7745 - Referred to Ways and Means; S.7260 - Referred to Budg-
et and Revenue
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
Immediately.
