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:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3677B
 
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 expi- ration 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: § 1- This act shall be known and may be cited as 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- 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 signif- icant 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:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3677--B
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    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    § 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    § 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    § 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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