A03677 Summary:

BILL NO    A03677B

SAME AS    SAME AS S00273-B

SPONSOR    Lupardo (MS)

COSPNSR    Schimminger, Magnarelli, Lifton, Morelle, Cook, Scarborough, Titone,
           Weisenberg, Cahill, Lavine, Miller, Weprin, Titus, Brindisi,
           Englebright, Gunther, Barrett, Thiele, DenDekker, Aubry, Skartados

MLTSPNSR   Arroyo, Camara, Ceretto, Crespo, Crouch, DiPietro, Duprey, Finch,
           Fitzpatrick, Friend, Glick, Graf, Hawley, Heastie, Hooper, Lopez P,
           Lupinacci, Magee, Markey, McLaughlin, Montesano, Oaks, Palmesano,
           Paulin, Perry, Pretlow, Raia, Saladino, Schimel, Stec, Sweeney,
           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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A03677 Actions:

BILL NO    A03677B

01/28/2013 referred to ways and means
04/22/2013 amend (t) and recommit to ways and means
04/22/2013 print number 3677a
01/08/2014 referred to ways and means
01/31/2014 amend and recommit to ways and means
01/31/2014 print number 3677b
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A03677 Votes:

There are no votes for this bill in this legislative session.
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A03677 Memo:

BILL NUMBER:A3677B

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 OR GENERAL IDEA OF BILL:  This bill would exempt from sales
and use taxes the purchase of general aviation aircraft.

SUMMARY OF SPECIFIC PROVISIONS:

S 1- This act shall be known and may be cited as the "New York
Aviation Jobs Act".

S 2- Amends Tax Law S 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.

S 3- Effective date.

JUSTIFICATION:  Airports are one of the economic engines that fuel
growth in the communities that they serve. The economic benefits of
airports in this state are quite large.

Annual economic activity attributable to aviation is $36 billion. Over
300,000, New York residents owe their jobs directly or indirectly to
airports. These jobs pay nearly $12 billion in payroll on an annual
basis. Airports and aviation industries pay over $2.7 billion in state
and local taxes each year.

New York air service is critical to the economic well-being of This
state and to the traveling public. Airline commercial service is
provided at 18 airports located in urban and rural areas throughout
the state. In addition to commercial service airports, hundreds of
other general aviation airports are located throughout the state.
These airports provide services such as charter flights for businesses
and executives, quick access for medical emergencies and law
enforcement needs, flight training, and tourism & recreational flying.

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 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.

Since the sales tax exemption for the maintenance, repair, overhaul or
rebuilding of aircraft was enacted in 2004, New York has attracted
significant investment in aviation services. The recent study by the
New York State Department of Taxation and Finance--A Review of the
Sales and Use Tax Exemption for Private Aircraft Parts and
Service---demonstrates that this particular tax exemption has been a
tremendous success, 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.


Should New York exempt the purchase of general aviation aircraft, it
will timber encourage existing aircraft maintenance facilities to
expand their operations. In addition, other companies would look to
New York to locate or relocate their business jets and operations
within this state. 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.

PRIOR LEGISLATIVE HISTORY: A8856 of 2012.

FISCAL IMPLICATIONS:  NYS Department of Taxation & Finance estimates
that state and local governments will see an offset to possible tax
losses with an increased amount of economic development payroll taxes,
property taxes, and sales taxes in other ancillary services and
increased fuel tax collections from aircraft maintenance and in-state
basing as a result of the increase in aviation activity.

EFFECTIVE DATE:  This act shall take effect immediately and shall
apply to sales made, services rendered and uses occurring an or after
such date in accordance with the applicable transitional provisions of
sections 1106 and 1217 of the tax law. The commissioner of taxation
and finance shall be immediately authorized to adopt and amend any
rules or regulations and issue any procedure, forms or instructions
necessary to implement this act on its effective date.
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A03677 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                        3677--B

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                   January 28, 2013
                                      ___________

       Introduced  by  M.  of  A.  LUPARDO,  SCHIMMINGER,  BOYLAND, MAGNARELLI,
         LIFTON,  MORELLE,  COOK,  SCARBOROUGH,  TITONE,  WEISENBERG,   CAHILL,
         LAVINE, MILLER, WEPRIN, TITUS, BRINDISI, ENGLEBRIGHT, GUNTHER, BARRETT
         --  Multi-Sponsored  by  --  M. of A. ARROYO, CERETTO, CRESPO, CROUCH,
         DIPIETRO, DUPREY, FINCH, FITZPATRICK, GLICK,  GRAF,  HAWLEY,  HEASTIE,
         HOOPER,  P. LOPEZ,  LUPINACCI,  MAGEE,  MARKEY, McLAUGHLIN, MONTESANO,
         OAKS, PALMESANO, PAULIN,  PERRY,  PRETLOW,  RAIA,  SALADINO,  SCHIMEL,
         SWEENEY, WRIGHT -- read once and referred to the Committee on Ways and
         Means  --  committee  discharged,  bill  amended, ordered reprinted as
         amended and recommitted  to  said  committee  --  recommitted  to  the
         Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
         --  committee  discharged,  bill amended, ordered reprinted as amended
         and recommitted to said committee

       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    S 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,

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01351-07-4
       A. 3677--B                          2

    1  shall  be  exempt  from  tax  under this article where such services are
    2  performed on aircraft.
    3    S 3. The commissioner of taxation and finance, in conjunction with the
    4  commissioner of transportation, shall review and analyze all statistical
    5  data  available  for the purpose of determining the economic and revenue
    6  impact of the sales and compensating use tax exemption for the  sale  of
    7  general  aviation  aircraft  enacted  by  section  two of this act. Such
    8  review and analysis shall include, but not be limited to, any  increases
    9  in  aviation-related  employment,  aircraft basing, aircraft maintenance
   10  and aircraft hangering within the state. The commissioner shall  compile
   11  his  or  her  findings  into  a  report, which shall be submitted, on or
   12  before November 1, 2019, to the governor, the temporary president of the
   13  senate and the speaker of the assembly.
   14    S 4. This act shall take effect April 1,  2015,  and  shall  apply  to
   15  sales  of  general aviation aircraft made and uses occurring on or after
   16  such effective date  in  accordance  with  the  applicable  transitional
   17  provisions of sections 1106 and 1107 of the tax law, but shall not apply
   18  to  sales  occurring  after  March 31, 2020, and section two of this act
   19  shall expire and be deemed repealed April 1,  2020.  Provided,  however,
   20  that  aircraft  subject to exemption pursuant to paragraph 1 of subdivi-
   21  sion (dd) of section 1115 of the tax law, as amended by section  two  of
   22  this  act,  shall  remain  so  exempt after the expiration and repeal of
   23  section two of this act,  including  instances  where  the  aircraft  is
   24  subsequently  sold  or the ownership is transferred or assigned, for the
   25  useful life of the aircraft. Provided, further, that the commissioner of
   26  taxation and finance shall be immediately authorized to adopt and  amend
   27  any   rules  or  regulations  and  to  issue  any  procedure,  forms  or
   28  instructions necessary to implement section  two  of  this  act  on  its
   29  effective date.
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