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A02287 Summary:

A02287 Actions:

A02287 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A2287
 
SPONSOR: Morelle (MS)

 
TITLE OF BILL:  An act to amend the tax law, in relation to the sales
tax exemption for car wash facilities
 
 
PURPOSE:
 
To expand the sales tax exemption for coin-operated car wash services to
authorize the exemption where payment is made by credit or debit card.
 
 
JUSTIFICATION:
 
Under current law, coin-operated car wash services are exempt from sales
tax. "Coin-operated" is defined to include coin-operated, currency-oper-
ated or token operated, but does not include credit nor debit card
machine transactions. If a coin-operated car wash business adds equip-
ment to authorize payment by credit or debit card, then the coin oper-
ated services are not subject to sales tax under current law, but the
services paid for through the credit or debit card machine are subject
to sales tax. This requires a separate accounting for the credit or
debit card transactions, with the associated additional burdens for the
car wash business owner. Car wash businesses install credit or debit
card machines as a convenience to consumers and they should not be
required to pay sales tax on these services, which would otherwise be
exempt from sales taxation, because they are offering a more modern mode
of payment as a convenience to the consumer.
 
In addition, when sales tax is required to be paid on car wash services
paid for through credit or debit card machines, the car wash business is
subject to double taxation because it must also pay sales tax on the
products and equipment purchased to provide the car wash.  It is inequi-
table to tax these small businessmen at two levels in the chain of
commerce and this bill would remedy this inequity.
 
 
LEGISLATIVE HISTORY:
 
A.7510 of 2013/14: referred to ways and means;
A.6185 of 2015/16: referred to ways and means
 
 
FISCAL IMPLICATIONS:
 
Undetermined.
 
 
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,
occurring at least sixty days after this act shall have become a law.

A02287 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2287
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2017
                                       ___________
 
        Introduced by M. of A. MORELLE, COOK, CRESPO, SIMANOWITZ, HOOPER, SCHIM-
          MINGER  --  Multi-Sponsored by -- M. of A. ARROYO, MAGEE, MOYA, RIVERA
          -- read once and referred to the Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to the sales tax exemption  for
          car wash facilities

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 3 of subdivision (t) of section 1115 of  the  tax
     2  law,  as  amended by chapter 489 of the laws of 2003, is amended to read
     3  as follows:
     4    (3)  For  purposes  of  this  subdivision,  the  term  "coin-operated"
     5  includes  coin-operated, currency-operated [or], token-operated or oper-
     6  ated by a credit or debit card machine  and  the  term  "motor  vehicle"
     7  shall  mean  a  motor  vehicle  as defined in subdivision (f) of section
     8  eleven hundred thirty-two of this article.
     9    § 2. This act shall take effect on the first day of a sales tax  quar-
    10  terly  period as described in subdivision (b) of section 1136 of the tax
    11  law, occurring at least sixty days after this act shall  have  become  a
    12  law.
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00924-01-7