A09114 Summary:

BILL NOA09114A
 
SAME ASSAME AS S06232-A
 
SPONSORWoerner
 
COSPNSRBarrett, Ra, Brabenec
 
MLTSPNSRMagee
 
Amd 1115, 1107 & 1210, Tax L
 
Relates to a sales tax exemption for fresh cut evergreen trees and evergreen products during the period from November 1st to December 31st.
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A09114 Actions:

BILL NOA09114A
 
01/28/2016referred to ways and means
03/23/2016amend (t) and recommit to ways and means
03/23/2016print number 9114a
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A09114 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9114A
 
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the tax law, in relation to enacting the "New York State Go Green Season Act" and creating a limited sales tax exemption for the sale of fresh cut evergreen trees from state sales and compensating use taxes and granting municipalities the option to grant such limited exemption   SUMMARY OF BILL: This bill creates the New York State Go Green Season Act. Subdivision (a) of section 1115 of the Tax Law is amended by adding a new paragraphs 44, to exempt Fresh cut Evergreen Trees from sales and use taxes during the two month period each year, commencing on the first day of November and last day of December. A local option is provided.   JUSTIFICATION: This legislation will provide sales tax relief to consumers during the holiday seasons in winter where consumers typically spend more of their discretionary income on gifts for their families and friends. According to the National Retail Federation, winter holidays accounts for the largest gift-giving holidays that account for nearly 20% of total annual retail sales for all retailers. In 2013, holiday celebrants spent an average of $730 on gifts, food, decorations and more. According to Statista; one of the world's largest statistics portals providing relevant data from over 18,000 sources, The United States' retail industry generated over three trillion U.S. dollars during the holidays in 2013. These holiday sales reflected about 19.2 percent of the retail industries total sales that year. As a result, just over 768 thousand employees were hired throughout the United States to compensate for the holiday rush. According to the Christmas Tree Farmers Association of New York, in 2012 - 275,000 Christmas Trees were sold in New York for an average of $30 per tree. With New York State Christmas Tree Farmers competing with tree farmers in other states, along with large corporations importing trees from out of state, providing a sales tax exemption on Christmas Trees will help New York's Agri-market. This legislation will encourage more consumers to shop locally because they will not be faced with the finan- cial burden of State sales tax. The loss in state tax revenue is extremely insignificant, with potential to actually increase sales tax revenue through additional spending on advertisements and promotional materials that correlate with the exemption. With all of the consumer spending taking place around the holidays, this legislation will provide minor relief in the taxation customers are faced with in decorating their homes and getting in the 'spirit' of the holiday season.   PRIOR LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect on the first day of a sales tax quarterly period, as described in subdivision (b) of section 1136 of the Tax Law, beginning at least 90 days after the date this act shall have become a law and shall apply in accordance with the applicable transitional provisions of section 1106 and 1217 of the tax law; provided, further, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations necessary to implement this act on its effective date.
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A09114 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9114--A
 
                   IN ASSEMBLY
 
                                    January 28, 2016
                                       ___________
 
        Introduced by M. of A. WOERNER, BARRETT, RA, BRABENEC -- Multi-Sponsored
          by  --  M.  of  A. MAGEE -- read once and referred to the Committee on
          Ways  and  Means  --  committee  discharged,  bill  amended,   ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the tax law, in relation to enacting the "New York State
          Go  Green  Season  Act" and creating a limited sales tax exemption for
          the sale of fresh cut evergreen trees from state sales and  compensat-
          ing  use  taxes  and  granting municipalities the option to grant such
          limited exemption
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act shall be known and may be cited as the "New York
     2  State Go Green Season Act".
     3    § 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
     4  adding a new paragraph 44 to read as follows:
     5    (44)  Fresh  cut evergreen trees during the two month period each year
     6  commencing on November first and ending on December thirty-first annual-
     7  ly. For purposes of this paragraph, "fresh cut  evergreen  trees"  shall
     8  mean  evergreen  trees  that  have been cut or harvested by the consumer
     9  within one day prior to sale.
    10    § 3. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
    11  adding a new clause 12 to read as follows:
    12    (12)  Except  as otherwise provided by law, the exemption on fresh cut
    13  evergreen trees during the two month  period  each  year  commencing  on
    14  November  first  and  ending on December thirty-first, provided in para-
    15  graph forty-four of subdivision (a) of section eleven hundred fifteen of
    16  this article, shall be applicable pursuant to a local law, ordinance  or
    17  resolution  adopted by a city subject to the provisions of this section.
    18  Such city is empowered to adopt or repeal such a local law, ordinance or
    19  resolution. Such adoption or repeal shall also be deemed  to  amend  any
    20  local law, ordinance or resolution enacted by such a city imposing taxes
    21  pursuant  to  the authority of subdivision (a) of section twelve hundred
    22  ten of this chapter.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13176-09-6

        A. 9114--A                          2
 
     1    § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
     2  amended by section 3 of part Z of chapter 59 of the  laws  of  2015,  is
     3  amended to read as follows:
     4    (1) Either, all of the taxes described in article twenty-eight of this
     5  chapter,  at  the same uniform rate, as to which taxes all provisions of
     6  the local laws, ordinances or resolutions imposing such taxes  shall  be
     7  identical,  except as to rate and except as otherwise provided, with the
     8  corresponding provisions in such  article  twenty-eight,  including  the
     9  definition  and  exemption  provisions  of  such  article, so far as the
    10  provisions of such article twenty-eight can be made  applicable  to  the
    11  taxes  imposed  by  such  city  or  county and with such limitations and
    12  special provisions as are set forth in this article. The  taxes  author-
    13  ized  under  this  subdivision  may  not  be imposed by a city or county
    14  unless the local law, ordinance or resolution imposes such taxes  so  as
    15  to  include  all  portions  and all types of receipts, charges or rents,
    16  subject to state tax under  sections  eleven  hundred  five  and  eleven
    17  hundred ten of this chapter, except as otherwise provided. (i) Any local
    18  law,  ordinance  or  resolution  enacted  by  any  city of less than one
    19  million or by any county or school district, imposing the taxes  author-
    20  ized by this subdivision, shall, notwithstanding any provision of law to
    21  the  contrary,  exclude from the operation of such local taxes all sales
    22  of tangible personal  property  for  use  or  consumption  directly  and
    23  predominantly  in  the  production  of  tangible personal property, gas,
    24  electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
    25  essing,  generating,  assembly,  refining, mining or extracting; and all
    26  sales of tangible personal property for use or consumption predominantly
    27  either in the production of tangible personal  property,  for  sale,  by
    28  farming  or  in  a commercial horse boarding operation, or in both; and,
    29  unless such city, county or school district elects otherwise, shall omit
    30  the provision for credit or refund contained in clause six  of  subdivi-
    31  sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
    32  chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
    33  city,  county  or school district, imposing the taxes authorized by this
    34  subdivision, shall omit the residential solar energy  systems  equipment
    35  and  electricity exemption provided for in subdivision (ee), the commer-
    36  cial solar energy systems equipment and electricity  exemption  provided
    37  for in subdivision (ii) and the clothing and footwear exemption provided
    38  for  in  paragraph  thirty  of subdivision (a) of section eleven hundred
    39  fifteen of this chapter, unless such city,  county  or  school  district
    40  elects  otherwise  as  to  either  such residential solar energy systems
    41  equipment  and  electricity  exemption,  such  commercial  solar  energy
    42  systems  equipment  and electricity exemption or such clothing and foot-
    43  wear exemption.  (iii) Any local law, ordinance or resolution enacted by
    44  any city, county or school district, imposing the  taxes  authorized  by
    45  this  subdivision,  shall  omit  the fresh cut evergreen trees exemption
    46  during the two month period each year commencing on November first,  and
    47  ending on December thirty-first, as provided for in paragraph forty-four
    48  of  subdivision  (a)  of section eleven hundred fifteen of this chapter,
    49  unless such city, county or school district elects  otherwise;  provided
    50  that  if  such  a city having a population of one million or more enacts
    51  the resolution described in subdivision (q) of this section  or  repeals
    52  such resolution, such repeal or resolution shall also be deemed to amend
    53  any  local  law, ordinance or resolution enacted by such a city imposing
    54  such tax pursuant to the authority of this subdivision, whether  or  not
    55  such  taxes  are  suspended  at the time such city enacts its resolution
    56  pursuant to subdivision (q) of this section or at the time of  any  such

        A. 9114--A                          3
 
     1  repeal;  provided  further  that any such local law, ordinance or resol-
     2  ution and section eleven hundred seven of this chapter, as deemed to  be
     3  amended  in  the event a city of one million or more enacts a resolution
     4  pursuant  to  the authority of subdivision (q) of this section, shall be
     5  further amended, as provided in section twelve hundred eighteen of  this
     6  subpart,  so  that  fresh  cut  evergreen trees exemption during the two
     7  month period each year commencing  on  November  first,  and  ending  on
     8  December thirty-first, in any such local law, ordinance or resolution or
     9  in section eleven hundred seven of this chapter is the same as the state
    10  fresh  cut  evergreen  trees  exemption during the two month period each
    11  year commencing on November first, and ending on December  thirty-first,
    12  in  paragraph  forty-four  of  subdivision (a) of section eleven hundred
    13  fifteen of this chapter.
    14    § 5. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
    15  section  4-a  of part Z of chapter 59 of the laws of 2015, is amended to
    16  read as follows:
    17    (d) A local law, ordinance or resolution imposing any tax pursuant  to
    18  this  section,  increasing or decreasing the rate of such tax, repealing
    19  or suspending such tax, exempting from such tax the energy  sources  and
    20  services  described in paragraph three of subdivision (a) or of subdivi-
    21  sion (b) of this section or changing the rate of  tax  imposed  on  such
    22  energy  sources  and  services  or  providing  for  the credit or refund
    23  described in clause six of subdivision (a)  of  section  eleven  hundred
    24  nineteen  of  this  chapter,  or electing or repealing the exemption for
    25  residential solar equipment  and  electricity  in  subdivision  (ee)  of
    26  section  eleven  hundred  fifteen  of this article, or the exemption for
    27  commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
    28  section  eleven hundred fifteen of this article must go into effect only
    29  on one of the following dates: March first, June first, September  first
    30  or  December  first; provided, that a local law, ordinance or resolution
    31  providing for the exemption described in paragraph thirty of subdivision
    32  (a) of section eleven hundred fifteen of this chapter or  repealing  any
    33  such  exemption  or a local law, ordinance or resolution providing for a
    34  refund or credit described in subdivision (d) of section eleven  hundred
    35  nineteen of this chapter or repealing such provision so provided must go
    36  into  effect  only  on  March  first; provided further that a local law,
    37  ordinance or resolution providing for the exemption described  in  para-
    38  graph forty-four of subdivision (a) of section eleven hundred fifteen of
    39  this  chapter  or  repealing any such exemption so provided and a resol-
    40  ution enacted pursuant to the  authority  of  subdivision  (q)  of  this
    41  section  provided such exemption or repealing such exemption so provided
    42  may go into effect immediately. No such local law, ordinance  or  resol-
    43  ution  shall be effective unless a certified copy of such law, ordinance
    44  or resolution is mailed by registered or certified mail to  the  commis-
    45  sioner at the commissioner's office in Albany at least ninety days prior
    46  to  the  date  it  is to become effective. However, the commissioner may
    47  waive and reduce such ninety-day minimum notice requirement to a mailing
    48  of such certified copy by registered or certified mail within  a  period
    49  of not less than thirty days prior to such effective date if the commis-
    50  sioner deems such action to be consistent with the commissioner's duties
    51  under  section twelve hundred fifty of this article and the commissioner
    52  acts by resolution. Where the restriction provided for in section twelve
    53  hundred twenty-three of this article as to the effective date of  a  tax
    54  and  the notice requirement provided for therein are applicable and have
    55  not been waived, the  restriction  and  notice  requirement  in  section
    56  twelve hundred twenty-three of this article shall also apply.

        A. 9114--A                          4
 
     1    §  6.  Section 1210 of the tax law is amended by adding a new subdivi-
     2  sion (q) to read as follows:
     3    (q)  Notwithstanding  any other provision of state or local law, ordi-
     4  nance or resolution to the contrary:
     5    (1) Any city having a population of one million or more in  which  the
     6  taxes  imposed  by  section  eleven hundred seven of this chapter are in
     7  effect, acting through its local legislative body, is hereby  authorized
     8  and  empowered to elect to provide the same exemption from such taxes as
     9  the fresh cut evergreen trees exemption during the two month period each
    10  year commencing on November first and ending on  December  thirty-first,
    11  from  state  sales  and  compensating  use  taxes described in paragraph
    12  forty-four of subdivision (a) of section eleven hundred fifteen of  this
    13  chapter  by enacting a resolution in the form set forth in paragraph two
    14  of this subdivision; whereupon, upon compliance with the  provisions  of
    15  subdivisions  (d) and (e) of this section, such enactment of such resol-
    16  ution shall be deemed to be an amendment to such section eleven  hundred
    17  seven  and such section eleven hundred seven shall be deemed to incorpo-
    18  rate such exemption as if it had been duly enacted by the state legisla-
    19  ture and approved by the governor.
    20    (2) Form of Resolution: Be it enacted by the (insert proper  title  of
    21  local legislative body) as follows:
    22    Section   1.  Receipts  from  sales  of  and  consideration  given  or
    23  contracted to be given for purchases of fresh cut evergreen trees exempt
    24  from state sales and compensating use taxes during a  two  month  period
    25  each  year  commencing  on November first and ending on December thirty-
    26  first, pursuant to paragraph forty-four of subdivision  (a)  of  section
    27  eleven  hundred  fifteen  of the tax law shall also be exempt from sales
    28  and compensating use taxes imposed in this jurisdiction.
    29    2. This resolution shall take effect,  (insert  the  date)  and  shall
    30  apply  to  sales made and uses occurring on and after that date although
    31  made or occurring under a prior contract.
    32    § 7. This act shall take effect on the first  day  of  the  sales  tax
    33  quarterly period, as described in subdivision (b) of section 1136 of the
    34  tax  law,  beginning at least 90 days after the date this act shall have
    35  become a law and shall apply in accordance with the  applicable  transi-
    36  tional  provisions  of  sections  1106 and 1217 of the tax law; provided
    37  that sections four and five of this act shall apply to sales made on  or
    38  after  the  date  such  sections  shall  have taken effect; and provided
    39  further that the commissioner of taxation and finance shall  be  author-
    40  ized on and after the date this act shall have become a law to adopt and
    41  amend  any  rules  or regulations necessary to implement this act on its
    42  effective date.
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