A06150 Summary:

BILL NO    A06150 

SAME AS    No same as 

SPONSOR    Stirpe

COSPNSR    

MLTSPNSR   



Relates to the meaning of the term "equipment" for purposes of department of
taxation and finance audit or enforcement proceedings.
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A06150 Actions:

BILL NO    A06150 

03/16/2015 referred to ways and means
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A06150 Memo:

BILL NUMBER:A6150

TITLE OF BILL:

An act in relation to the meaning of the term "equipment" for purposes
of department of taxation and finance audit or enforcement proceedings

PURPOSE:

This legislation would codify a holding of a Division of Tax Appeals
decision to ensure fair and consistent tax treatment of certain
equipment purchases by Qualified Empire Zone Enterprises (QEZE).

SUMMARY OF SPECIFIC PROVISIONS:

Section one defines personal tangible property subject to this
legislation.

Section two defines a term relevant to Empire Zone tax exemption
eligibility determinations.

Section three creates a mechanism for businesses to enforce their
rights afforded by this bill.

JUSTIFICATION:

The purpose of the Empire Zone Program was to increase economic
activity in high unemployment and high poverty areas. This legislation
supports this objective by preserving contractual agreements entered
into by a QEZE in reliance upon promises by the state that equipment,
purchased and then used at an Empire Zone location, would qualify for
the Empire Zone sales tax exemption.  Preserving these contracts will
protect the value of New York businesses' property and investments,
and provide clarity to these businesses in their work to comply with
the Tax Law.

This bill follows a Division of Tax Appeals decision that held, for
the purpose of Empire Zone tax exemption determinations, that the
process of having inventoried, organized, stored and distributed
property by a QEZE from its Empire Zone location would qualify a QEZE
for a sales tax exemption for purchases. See Eastern Paramedics, Inc.,
DTA Nos. 822836 and 822837 (N.Y. Div. Tax App. Sept. 10, 2010).

LEGISLATIVE HISTORY:

A 10059 of 2014-15; Vetoed by Governor (Memo 567)
S7382 of 2014-15; Vetoed by Governor (Memo 567)

FISCAL IMPLICATIONS:

It is not anticipated that there will be any fiscal impact in regard
to tax revenues collected from QEZE approved businesses, as such
revenues have not been collected as they are subject to ongoing
litigation.

EFFECTIVE DATE:


This act shall take effect immediately, be deemed to have been in
effect as of March 1, 2001, and apply to any Department of Taxation
and Finance matter commencing on or after March 1, 2001.
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A06150 Text:

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

                                         6150

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    March 16, 2015
                                      ___________

       Introduced by M. of A. STIRPE -- read once and referred to the Committee
         on Ways and Means

       AN  ACT  in relation to the meaning of the term "equipment" for purposes
         of department of taxation and finance audit or enforcement proceedings

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  For  the purposes of this act, the term "equipment" shall
    2  mean a machine or system, and any part or subassembly thereof.
    3    S 2. For the purposes of this act, equipment shall be considered to be
    4  "directly and predominantly" used, as such term is used in clause (i) of
    5  paragraph 1 of subdivision (z) of  section  1115  of  the  tax  law,  as
    6  repealed by section 30 of part S-1 of chapter 57 of the laws of 2009 and
    7  last amended by section 17 of part CC of chapter 85 of the laws of 2002,
    8  when  such  equipment  was  received, inventoried or organized, and then
    9  prepared for distribution at 124 Metropolitan Park drive, Syracuse,  New
   10  York,  or  3606 John Glenn boulevard, Syracuse, New York, by a qualified
   11  empire zone  enterprise  that  has  operated  at  both  such  locations,
   12  provided  that  such equipment, upon distribution, is stocked, repaired,
   13  cleaned or otherwise handled for the purpose of maintenance or upkeep by
   14  employees of such qualified empire zone enterprise provided such service
   15  work or duties originate from, and  terminate  at,  either  empire  zone
   16  location described in this section.
   17    S  3.  Notwithstanding  any  law, rule, or regulation, or any determi-
   18  nation or decision of the department of  taxation  and  finance  or  the
   19  division  of  tax  appeals  to the contrary, the division of tax appeals
   20  shall accept and review, pursuant to  part  three-thousand  of  the  tax
   21  appeals  tribunal rules of practice and procedure, a petition related to
   22  the interpretation of the term "directly  and  predominantly",  as  such
   23  term  is used in section two of this act, provided that such petition is
   24  filed by a qualified empire zone enterprise that has  operated  at  both
   25  locations  described in section two of this action, and provided further

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09845-01-5
       A. 6150                             2

    1  that such petition challenges a determination or decision of the depart-
    2  ment of taxation and finance or the division of tax appeals that  denied
    3  or  withheld  sales  and use tax credits as afforded by the provision of
    4  the tax law described in section two of this act.
    5    S  4. This act shall take effect immediately, and shall apply to taxa-
    6  ble years beginning on and after March 1, 2003, and shall apply  to  any
    7  audit  or  enforcement  proceeding  of  the  department  of taxation and
    8  finance, or any  other  administrative  matter  or  proceeding  of  such
    9  department, commencing on or after March 1, 2003.
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