STATE OF NEW YORK
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4003
2015-2016 Regular Sessions
IN SENATE
February 25, 2015
___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations
AN ACT to amend the tax law, in relation to providing an exemption for
certain tangible personal property or services from the sales and
compensating use tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1115 of the tax law is amended by adding a new
2 subdivision (jj) to read as follows:
3 (jj) Tangible personal property or services otherwise taxable under
4 this article sold to a related person shall not be subject to the taxes
5 imposed by section eleven hundred five of this article or the compensat-
6 ing use tax imposed under section eleven hundred ten of this article
7 where the purchaser can show that the following conditions have been met
8 to the extent they are applicable: (1)(i) the vendor and the purchaser
9 are referenced as either a "covered company" as described in subdivision
10 (f) of section 243.2 or a "material entity" as described in subdivision
11 (l) of section 243.2 of title 12 of the code of federal regulations in a
12 resolution plan that has been submitted to an agency of the United
13 States for the purpose of satisfying subparagraph one of paragraph (d)
14 of section one hundred sixty-five of the Dodd-Frank Wall Street Reform
15 and Consumer Protection Act (the "Act") or any successor law, or (ii)
16 the vendor and the purchaser are separate legal entities pursuant to a
17 divestiture directed pursuant to subparagraph five of paragraph (d) of
18 section one hundred sixty-five of such Act or any successor law; (2) the
19 sale would not have occurred between such related persons were it not
20 for such resolution plan or divestiture; and (3) in acquiring such prop-
21 erty or services, the vendor did not claim an exemption from the tax
22 imposed by this state or another state based on the vendor's intent to
23 resell such services or property. A person is related to another person
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09471-01-5
S. 4003 2
1 for purposes of this subdivision if the person bears a relationship to
2 such person described in section two hundred sixty-seven of the internal
3 revenue code. The exemption provided by this subdivision shall not apply
4 after June thirtieth, two thousand nineteen, except with respect to
5 transactions occurring pursuant to binding contracts entered into on or
6 before such date.
7 § 2. This act shall take effect on the first day of the sales tax
8 quarterly period, as described in subdivision (b) of section 1136 of the
9 tax law, next commencing September 1, 2015 and shall apply in accordance
10 with the applicable transitional provisions in sections 1106 and 1217 of
11 the tax law; provided, further, that the commissioner of taxation and
12 finance shall be authorized on and after the date this act shall have
13 become a law to adopt and amend any rules or regulations and issue any
14 procedure, forms or instructions necessary to implement this act on its
15 effective date.
