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