A09114 Summary:

BILL NO    A09114 

SAME AS    
SAME AS S06232

SPONSOR    Woerner

COSPNSR    

MLTSPNSR   


Amd 1115, 1107 & 1210, Tax L


Relates to a sales tax exemption for fresh cut evergreen trees and
evergreen
products during the period from the first Friday in December ending
the
following Monday.
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A09114 Actions:

BILL NO    A09114 

01/28/2016 referred to ways and means
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A09114 Votes:

There are no votes for this bill in this legislative session.
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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: A9114
 
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the tax law, in relation to enacting the "New York State Go Green Weekend Act" and creating a limited sales tax exemption for the sale of fresh cut evergreen trees and evergreen products made predominantly from evergreen trees from state sales and compensating use taxes and granting municipalities the option to grant such limited exemption   PURPOSE OF THE BILL: This legislation will provide sales tax relief to consumers during the holiday seasons in winter where consumers typi- cally spend more of their discretionary income on gifts for their fami- lies and friends. The bill also supports the industry for Fresh Cut Evergreen products in New York State.   SUMMARY OF SPECIFIC PROVISIONS: This bill creates the New York State Green Weekend Act. Subdivision (a) of section 1115 of the Tax Law is amended by adding a new paragraphs 44, to exempt Fresh cut Evergreen Trees and fresh cut Evergreen products made predominantly from Evergreen Trees intended for holiday celebrations including wreaths and garlands from sales and use taxes during the three day period each year, commenc- ing on the first Friday of December and ending on the following Monday. A local option is provided.   JUSTIFICATION: 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 applica- ble 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
 
                   IN ASSEMBLY
 
                                    January 28, 2016
                                       ___________
 
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee on Ways and Means
 
        AN ACT to amend the tax law, in relation to enacting the "New York State
          Go Green Weekend Act" and creating a limited sales tax  exemption  for
          the  sale  of  fresh  cut  evergreen trees and evergreen products made
          predominantly from evergreen trees from state sales  and  compensating

          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 Weekend 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  and  evergreen  products  during  the
     6  three-day  period  each year commencing on the first Friday of December,
     7  and ending on the following Monday.  For  purposes  of  this  paragraph,
     8  "fresh  cut  evergreen  trees" shall mean evergreen trees that have been
     9  cut or harvested within one week prior  to  sale.  "Evergreen  products"

    10  shall  mean  products  which  are made predominantly from real evergreen
    11  trees and shall not include products which  are  more  than  twenty-five
    12  percent  synthetic  materials,  including but not limited to wreaths and
    13  garland.
    14    § 3. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
    15  adding a new clause 12 to read as follows:
    16    (12)  Except  as otherwise provided by law, the exemption on fresh cut
    17  evergreen trees and evergreen products during the three-day period  each
    18  year  commencing  on  the  first  Friday  of  December and ending on the
    19  following Monday, provided in paragraph forty-four of subdivision (a) of
    20  section eleven hundred fifteen of  this  article,  shall  be  applicable

    21  pursuant  to  a  local  law,  ordinance  or resolution adopted by a city
    22  subject to the provisions of this section. Such  city  is  empowered  to
    23  adopt or repeal such a local law, ordinance or resolution. Such adoption
    24  or  repeal  shall  also  be  deemed to amend any local law, ordinance or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13176-02-5

        A. 9114                             2
 
     1  resolution enacted by such a city imposing taxes pursuant to the author-
     2  ity of subdivision (a) of section twelve hundred ten of this chapter.
     3    § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as

     4  amended  by  section  3  of part Z of chapter 59 of the laws of 2015, is
     5  amended to read as follows:
     6    (1) Either, all of the taxes described in article twenty-eight of this
     7  chapter, at the same uniform rate, as to which taxes all  provisions  of
     8  the  local  laws, ordinances or resolutions imposing such taxes shall be
     9  identical, except as to rate and except as otherwise provided, with  the
    10  corresponding  provisions  in  such  article twenty-eight, including the
    11  definition and exemption provisions of  such  article,  so  far  as  the
    12  provisions  of  such  article twenty-eight can be made applicable to the
    13  taxes imposed by such city or  county  and  with  such  limitations  and
    14  special  provisions  as are set forth in this article. The taxes author-
    15  ized under this subdivision may not be  imposed  by  a  city  or  county

    16  unless  the  local law, ordinance or resolution imposes such taxes so as
    17  to include all portions and all types of  receipts,  charges  or  rents,
    18  subject  to  state  tax  under  sections  eleven hundred five and eleven
    19  hundred ten of this chapter, except as otherwise provided. (i) Any local
    20  law, ordinance or resolution enacted  by  any  city  of  less  than  one
    21  million  or by any county or school district, imposing the taxes author-
    22  ized by this subdivision, shall, notwithstanding any provision of law to
    23  the contrary, exclude from the operation of such local taxes  all  sales
    24  of  tangible  personal  property  for  use  or  consumption directly and
    25  predominantly in the production  of  tangible  personal  property,  gas,
    26  electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
    27  essing, generating, assembly, refining, mining or  extracting;  and  all

    28  sales of tangible personal property for use or consumption predominantly
    29  either  in  the  production  of tangible personal property, for sale, by
    30  farming or in a commercial horse boarding operation, or  in  both;  and,
    31  unless such city, county or school district elects otherwise, shall omit
    32  the  provision  for credit or refund contained in clause six of subdivi-
    33  sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
    34  chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
    35  city, county or school district, imposing the taxes authorized  by  this
    36  subdivision,  shall  omit the residential solar energy systems equipment
    37  and electricity exemption provided for in subdivision (ee), the  commer-
    38  cial  solar  energy systems equipment and electricity exemption provided
    39  for in subdivision (ii) and the clothing and footwear exemption provided

    40  for in paragraph thirty of subdivision (a)  of  section  eleven  hundred
    41  fifteen  of  this  chapter,  unless such city, county or school district
    42  elects otherwise as to either  such  residential  solar  energy  systems
    43  equipment  and  electricity  exemption,  such  commercial  solar  energy
    44  systems equipment and electricity exemption or such clothing  and  foot-
    45  wear exemption.  (iii) Any local law, ordinance or resolution enacted by
    46  any  city,  county  or school district, imposing the taxes authorized by
    47  this subdivision, shall omit the fresh cut evergreen trees and evergreen
    48  products exemption during the three-day period each year  commencing  on
    49  the  first  Friday  of  December, and ending on the following Monday, as
    50  provided for in paragraph forty-four of subdivision (a) of section elev-

    51  en hundred fifteen of this chapter, unless such city, county  or  school
    52  district  elects  otherwise; provided that if such a city having a popu-
    53  lation of one million or more enacts the resolution described in  subdi-
    54  vision  (q)  of  this section or repeals such resolution, such repeal or
    55  resolution shall also be deemed to amend any  local  law,  ordinance  or
    56  resolution  enacted  by  such  a  city imposing such tax pursuant to the

        A. 9114                             3
 
     1  authority of this subdivision, whether or not such taxes  are  suspended
     2  at  the time such city enacts its resolution pursuant to subdivision (q)
     3  of this section or at the time of any such repeal; provided further that

     4  any  such  local law, ordinance or resolution and section eleven hundred
     5  seven of this chapter, as deemed to be amended in the event  a  city  of
     6  one  million  or  more  enacts a resolution pursuant to the authority of
     7  subdivision (q) of this section, shall be further amended,  as  provided
     8  in  section  twelve  hundred eighteen of this subpart, so that fresh cut
     9  evergreen trees and evergreen products exemption  during  the  three-day
    10  period  each year commencing on the first Friday of December, and ending
    11  on the following Monday, in any such local law, ordinance or  resolution
    12  or  in  section  eleven hundred seven of this chapter is the same as the
    13  state fresh cut evergreen trees and evergreen products exemption  during

    14  the  three-day period each year commencing on the first Friday of Decem-
    15  ber, and ending on the following  Monday,  in  paragraph  forty-four  of
    16  subdivision (a) of section eleven hundred fifteen of this chapter.
    17    §  5.  Subdivision  (d)  of section 1210 of the tax law, as amended by
    18  section 4-a of part Z of chapter 59 of the laws of 2015, is  amended  to
    19  read as follows:
    20    (d)  A local law, ordinance or resolution imposing any tax pursuant to
    21  this section, increasing or decreasing the rate of such  tax,  repealing
    22  or  suspending  such tax, exempting from such tax the energy sources and
    23  services described in paragraph three of subdivision (a) or of  subdivi-
    24  sion  (b)  of  this  section or changing the rate of tax imposed on such
    25  energy sources and services  or  providing  for  the  credit  or  refund

    26  described  in  clause  six  of subdivision (a) of section eleven hundred
    27  nineteen of this chapter, or electing or  repealing  the  exemption  for
    28  residential  solar  equipment  and  electricity  in  subdivision (ee) of
    29  section eleven hundred fifteen of this article,  or  the  exemption  for
    30  commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
    31  section eleven hundred fifteen of this article must go into effect  only
    32  on  one of the following dates: March first, June first, September first
    33  or December first; provided, that a local law, ordinance  or  resolution
    34  providing for the exemption described in paragraph thirty of subdivision
    35  (a)  of  section eleven hundred fifteen of this chapter or repealing any
    36  such exemption or a local law, ordinance or resolution providing  for  a
    37  refund  or credit described in subdivision (d) of section eleven hundred

    38  nineteen of this chapter or repealing such provision so provided must go
    39  into effect only on March first; provided  further  that  a  local  law,
    40  ordinance  or  resolution providing for the exemption described in para-
    41  graph forty-four of subdivision (a) of section eleven hundred fifteen of
    42  this chapter or repealing any such exemption so provided  and  a  resol-
    43  ution  enacted  pursuant  to  the  authority  of subdivision (q) of this
    44  section provided such exemption or repealing such exemption so  provided
    45  may  go  into effect immediately. No such local law, ordinance or resol-
    46  ution shall be effective unless a certified copy of such law,  ordinance
    47  or  resolution  is mailed by registered or certified mail to the commis-
    48  sioner at the commissioner's office in Albany at least ninety days prior

    49  to the date it is to become effective.  However,  the  commissioner  may
    50  waive and reduce such ninety-day minimum notice requirement to a mailing
    51  of  such  certified copy by registered or certified mail within a period
    52  of not less than thirty days prior to such effective date if the commis-
    53  sioner deems such action to be consistent with the commissioner's duties
    54  under section twelve hundred fifty of this article and the  commissioner
    55  acts by resolution. Where the restriction provided for in section twelve
    56  hundred  twenty-three  of this article as to the effective date of a tax

        A. 9114                             4
 
     1  and the notice requirement provided for therein are applicable and  have
     2  not  been  waived,  the  restriction  and  notice requirement in section
     3  twelve hundred twenty-three of this article shall also apply.

     4    §  6.  Section 1210 of the tax law is amended by adding a new subdivi-
     5  sion (q) to read as follows:
     6    (q) Notwithstanding any other provision of state or local  law,  ordi-
     7  nance or resolution to the contrary:
     8    (1)  Any  city having a population of one million or more in which the
     9  taxes imposed by section eleven hundred seven of  this  chapter  are  in
    10  effect,  acting through its local legislative body, is hereby authorized
    11  and empowered to elect to provide the same exemption from such taxes  as
    12  the  fresh cut evergreen trees and evergreen products exemption during a
    13  three-day period each year commencing on the first Friday  of  December,
    14  and  ending  on  the following Monday, from state sales and compensating

    15  use taxes described  in  paragraph  forty-four  of  subdivision  (a)  of
    16  section  eleven hundred fifteen of this chapter by enacting a resolution
    17  in the form set forth in paragraph two of this  subdivision;  whereupon,
    18  upon  compliance with the provisions of subdivisions (d) and (e) of this
    19  section, such enactment of such resolution shall  be  deemed  to  be  an
    20  amendment  to  such section eleven hundred seven and such section eleven
    21  hundred seven shall be deemed to incorporate such exemption as if it had
    22  been duly enacted by the state legislature and approved by the governor.
    23    (2) Form of Resolution: Be it enacted by the (insert proper  title  of
    24  local legislative body) as follows:

    25    Section   1.  Receipts  from  sales  of  and  consideration  given  or
    26  contracted to be given for purchases of fresh cut  evergreen  trees  and
    27  evergreen  products  exempt  from state sales and compensating use taxes
    28  during a three-day period each year commencing on the  first  Friday  of
    29  December  and  ending  on  the  following  Monday, pursuant to paragraph
    30  forty-four of subdivision (a) of section eleven hundred fifteen  of  the
    31  tax  law  shall  also  be  exempt  from sales and compensating use taxes
    32  imposed in this jurisdiction.
    33    2. This resolution shall take effect,  (insert  the  date)  and  shall
    34  apply  to  sales made and uses occurring on and after that date although
    35  made or occurring under a prior contract.

    36    § 7. This act shall take effect on the first  day  of  the  sales  tax
    37  quarterly period, as described in subdivision (b) of section 1136 of the
    38  tax  law,  beginning at least 90 days after the date this act shall have
    39  become a law and shall apply in accordance with the  applicable  transi-
    40  tional  provisions  of  sections  1106 and 1217 of the tax law; provided
    41  that sections four and five of this act shall apply to sales made on  or
    42  after  the  date  such  sections  shall  have taken effect; and provided
    43  further that the commissioner of taxation and finance shall  be  author-
    44  ized on and after the date this act shall have become a law to adopt and
    45  amend  any  rules  or regulations necessary to implement this act on its
    46  effective date.
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