STATE OF NEW YORK
________________________________________________________________________
8147
2021-2022 Regular Sessions
IN ASSEMBLY
July 7, 2021
___________
Introduced by M. of A. J. D. RIVERA -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an exemption for
geothermal heat pump systems equipment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1115 of the tax law is amended
2 by adding a new paragraph 47 to read as follows:
3 (47) Receipts from the retail sale of residential geothermal heat pump
4 systems equipment and of the service of installing such systems shall be
5 exempt from tax under this article. For purposes of this paragraph,
6 "residential geothermal heat pump system equipment" shall mean an
7 arrangement or combination of components installed in and around a resi-
8 dential building that uses the ground or ground water as a thermal ener-
9 gy source or as a thermal energy sink designed to provide and distribute
10 heating, and/or cooling, and/or hot water, also commonly referred to as
11 ground source heat pump systems. Such arrangement or components shall
12 not include any sort of recreational facility or equipment used as a
13 storage medium.
14 § 2. Section 1115 of the tax law is amended by adding a new subdivi-
15 sion (ll) to read as follows:
16 (ll) Receipts from the retail sale of commercial geothermal heat pump
17 systems equipment and of the service of installing such systems shall be
18 exempt from taxes imposed by sections eleven hundred five and eleven
19 hundred ten of this article. For purposes of this subdivision, "commer-
20 cial geothermal heat pump system equipment" shall mean an arrangement or
21 combination of components installed in and around a commercial building
22 that uses the ground or ground water as a thermal energy source or as a
23 thermal energy sink designed to provide and distribute heating, and/or
24 cooling, and/or hot water, also commonly referred to as ground source
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05816-03-1
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1 heat pump systems. Such arrangement or components shall not include any
2 sort of recreational facility or equipment used as a storage medium.
3 § 3. Subparagraph (ii) of paragraph 1 and subparagraph (xiv) of para-
4 graph 4 of subdivision (a) of section 1210 of the tax law, subparagraph
5 (ii) of paragraph 1 as amended and subparagraph (xiv) of paragraph 4 as
6 added by section 2 of part WW of chapter 60 of the laws of 2016, are
7 amended and a new subparagraph (xvi) is added to paragraph 4 to read as
8 follows:
9 (ii) Any local law, ordinance or resolution enacted by any city, coun-
10 ty or school district, imposing the taxes authorized by this subdivi-
11 sion, shall omit the residential solar energy systems equipment and
12 electricity exemption provided for in subdivision (ee), the commercial
13 solar energy systems equipment and electricity exemption provided for in
14 subdivision (ii), the commercial fuel cell electricity generating
15 systems equipment and electricity generated by such equipment exemption
16 provided for in subdivision (kk), the residential geothermal heat pump
17 systems equipment and installation exemption provided for in paragraph
18 forty-seven of subdivision (a), the commercial geothermal heat pump
19 systems equipment and installation exemption provided for in subdivision
20 (ll) and the clothing and footwear exemption provided for in paragraph
21 thirty of subdivision (a) of section eleven hundred fifteen of this
22 chapter, unless such city, county or school district elects otherwise as
23 to such residential solar energy systems equipment and electricity
24 exemption, such commercial solar energy systems equipment and electric-
25 ity exemption, commercial fuel cell electricity generating systems
26 equipment and electricity generated by such equipment exemption, such
27 residential geothermal heat pump systems equipment and installation
28 exemption, such commercial geothermal heat pump systems equipment and
29 installation exemption or such clothing and footwear exemption.
30 [(xiv)] (xv) shall omit, unless such city elects otherwise, the
31 exemption for commercial fuel cell electricity generating systems equip-
32 ment and electricity generated by such equipment provided in subdivision
33 (kk) of section eleven hundred fifteen of this chapter[.]; and (xvi)
34 shall omit unless such city elects otherwise, the residential geothermal
35 heat pump systems equipment and installation exemption provided for in
36 paragraph forty-seven of subdivision (a) of section eleven hundred
37 fifteen of this chapter; and shall omit unless such city elects other-
38 wise, the commercial geothermal heat pump systems equipment and instal-
39 lation exemption provided for in subdivision (ll) of section eleven
40 hundred fifteen of this chapter.
41 § 4. Subparagraph (ii) of paragraph 1 of subdivision (a) of section
42 1210 of the tax law, as amended by section 5 of part J of chapter 59 of
43 the laws of 2021, is amended to read as follows:
44 (ii) Any local law, ordinance or resolution enacted by any city, coun-
45 ty or school district, imposing the taxes authorized by this subdivi-
46 sion, shall omit the residential solar energy systems equipment and
47 electricity exemption provided for in subdivision (ee), the commercial
48 solar energy systems equipment and electricity exemption provided for in
49 subdivision (ii), the commercial fuel cell electricity generating
50 systems equipment and electricity generated by such equipment exemption
51 provided for in subdivision (kk), the residential geothermal heat pump
52 systems equipment and installation exemption provided for in paragraph
53 forty-seven of subdivision (a), the commercial geothermal heat pump
54 systems equipment and installation exemption provided for in subdivision
55 (ll) and the clothing and footwear exemption provided for in paragraph
56 thirty of subdivision (a) of section eleven hundred fifteen of this
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1 chapter, unless such city, county or school district elects otherwise as
2 to such residential solar energy systems equipment and electricity
3 exemption, such commercial solar energy systems equipment and electric-
4 ity exemption, commercial fuel cell electricity generating systems
5 equipment and electricity generated by such equipment exemption or such
6 clothing and footwear exemption, such residential geothermal heat pump
7 systems equipment and installation exemption, such commercial geothermal
8 heat pump systems equipment and installation exemption or such clothing
9 and footwear exemption.
10 § 5. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
11 amended by section 3 of part WW of chapter 60 of the laws of 2016, is
12 amended to read as follows:
13 (1) Or, one or more of the taxes described in subdivisions (b), (d),
14 (e) and (f) of section eleven hundred five of this chapter, at the same
15 uniform rate, including the transitional provisions in section eleven
16 hundred six of this chapter covering such taxes, but not the taxes
17 described in subdivisions (a) and (c) of section eleven hundred five of
18 this chapter. Provided, further, that where the tax described in subdi-
19 vision (b) of section eleven hundred five of this chapter is imposed,
20 the compensating use taxes described in clauses (E), (G) and (H) of
21 subdivision (a) of section eleven hundred ten of this chapter shall also
22 be imposed. Provided, further, that where the taxes described in subdi-
23 vision (b) of section eleven hundred five are imposed, such taxes shall
24 omit: (A) the provision for refund or credit contained in subdivision
25 (d) of section eleven hundred nineteen of this chapter with respect to
26 such taxes described in such subdivision (b) of section eleven hundred
27 five unless such city or county elects to provide such provision or, if
28 so elected, to repeal such provision; (B) the exemption provided in
29 paragraph two of subdivision (ee) of section eleven hundred fifteen of
30 this chapter unless such county or city elects otherwise; (C) the
31 exemption provided in paragraph two of subdivision (ii) of section elev-
32 en hundred fifteen of this chapter, unless such county or city elects
33 otherwise; [and] (D) the exemption provided in paragraph two of subdivi-
34 sion (kk) of section eleven hundred fifteen of this chapter, unless such
35 county or city elects otherwise; (E) the exemption provided in paragraph
36 forty-seven of subdivision (a) of section eleven hundred fifteen of this
37 chapter, unless such county or city elects otherwise; and (F) the
38 exemption provided in subdivision (ll) of section eleven hundred fifteen
39 of this chapter, unless such county or city elects otherwise.
40 § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
41 amended by section 6 of part J of chapter 59 of the laws of 2021, is
42 amended to read as follows:
43 (1) Or, one or more of the taxes described in subdivisions (b), (d),
44 (e) and (f) of section eleven hundred five of this chapter, at the same
45 uniform rate, including the transitional provisions in section eleven
46 hundred six of this chapter covering such taxes, but not the taxes
47 described in subdivisions (a) and (c) of section eleven hundred five of
48 this chapter. Provided, further, that where the tax described in subdi-
49 vision (b) of section eleven hundred five of this chapter is imposed,
50 the compensating use taxes described in clauses (E), (G) and (H) of
51 subdivision (a) of section eleven hundred ten of this chapter shall also
52 be imposed. Provided, further, that where the taxes described in subdi-
53 vision (b) of section eleven hundred five of this chapter are imposed,
54 such taxes shall omit: (A) the provision for refund or credit contained
55 in subdivision (d) of section eleven hundred nineteen of this chapter
56 with respect to such taxes described in such subdivision (b) of section
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1 eleven hundred five unless such city or county elects to provide such
2 provision or, if so elected, to repeal such provision; (B) the exemption
3 provided in paragraph two of subdivision (ee) of section eleven hundred
4 fifteen of this chapter unless such county or city elects otherwise; (C)
5 the exemption provided in paragraph two of subdivision (ii) of section
6 eleven hundred fifteen of this chapter, unless such county or city
7 elects otherwise; and (D) the exemption provided in paragraph two of
8 subdivision (kk) of section eleven hundred fifteen of this chapter,
9 unless such county or city elects otherwise; and provided further that
10 where the tax described in subdivision (f) of such section eleven
11 hundred five is imposed, such tax shall not apply to charges for admis-
12 sion to race tracks and simulcast facilities; (E) the exemption provided
13 in paragraph forty-seven of subdivision (a) of section eleven hundred
14 fifteen of this chapter, unless such county or city elects otherwise;
15 and (F) the exemption provided in subdivision (ll) of section eleven
16 hundred fifteen of this chapter, unless such county or city elects
17 otherwise.
18 § 7. Subdivision (d) of section 1210 of the tax law, as amended by
19 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
20 read as follows:
21 (d) A local law, ordinance or resolution imposing any tax pursuant to
22 this section, increasing or decreasing the rate of such tax, repealing
23 or suspending such tax, exempting from such tax the energy sources and
24 services described in paragraph three of subdivision (a) or of subdivi-
25 sion (b) of this section or changing the rate of tax imposed on such
26 energy sources and services or providing for the credit or refund
27 described in clause six of subdivision (a) of section eleven hundred
28 nineteen of this chapter, or electing or repealing the exemption for
29 residential solar equipment and electricity in subdivision (ee) of
30 section eleven hundred fifteen of this article, or the exemption for
31 commercial solar equipment and electricity in subdivision (ii) of
32 section eleven hundred fifteen of this article, or electing or repealing
33 the exemption for commercial fuel cell electricity generating systems
34 equipment and electricity generated by such equipment in subdivision
35 (kk) of section eleven hundred fifteen of this article, or electing or
36 repealing the exemption for residential geothermal heat pump systems
37 equipment and installation in paragraph forty-seven of subdivision (a)
38 of section eleven hundred fifteen of this article, or electing or
39 repealing the exemption for commercial geothermal heat pump systems
40 equipment and installation in subdivision (ll) of section eleven hundred
41 fifteen of this article must go into effect only on one of the following
42 dates: March first, June first, September first or December first;
43 provided, that a local law, ordinance or resolution providing for the
44 exemption described in paragraph thirty of subdivision (a) of section
45 eleven hundred fifteen of this chapter or repealing any such exemption
46 or a local law, ordinance or resolution providing for a refund or credit
47 described in subdivision (d) of section eleven hundred nineteen of this
48 chapter or repealing such provision so provided must go into effect only
49 on March first. No such local law, ordinance or resolution shall be
50 effective unless a certified copy of such law, ordinance or resolution
51 is mailed by registered or certified mail to the commissioner at the
52 commissioner's office in Albany at least ninety days prior to the date
53 it is to become effective. However, the commissioner may waive and
54 reduce such ninety-day minimum notice requirement to a mailing of such
55 certified copy by registered or certified mail within a period of not
56 less than thirty days prior to such effective date if the commissioner
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1 deems such action to be consistent with the commissioner's duties under
2 section twelve hundred fifty of this article and the commissioner acts
3 by resolution. Where the restriction provided for in section twelve
4 hundred twenty-three of this article as to the effective date of a tax
5 and the notice requirement provided for therein are applicable and have
6 not been waived, the restriction and notice requirement in section
7 twelve hundred twenty-three of this article shall also apply.
8 § 8. Subdivision (a) of section 1212 of the tax law, as amended by
9 section 5 of part WW of chapter 60 of the laws of 2016, is amended to
10 read as follows:
11 (a) Any school district which is coterminous with, partly within or
12 wholly within a city having a population of less than one hundred twen-
13 ty-five thousand, is hereby authorized and empowered, by majority vote
14 of the whole number of its school authorities, to impose for school
15 district purposes, within the territorial limits of such school district
16 and without discrimination between residents and nonresidents thereof,
17 the taxes described in subdivision (b) of section eleven hundred five
18 (but excluding the tax on prepaid telephone calling services) and the
19 taxes described in clauses (E) and (H) of subdivision (a) of section
20 eleven hundred ten, including the transitional provisions in subdivision
21 (b) of section eleven hundred six of this chapter, so far as such
22 provisions can be made applicable to the taxes imposed by such school
23 district and with such limitations and special provisions as are set
24 forth in this article, such taxes to be imposed at the rate of one-half,
25 one, one and one-half, two, two and one-half or three percent which rate
26 shall be uniform for all portions and all types of receipts and uses
27 subject to such taxes. In respect to such taxes, all provisions of the
28 resolution imposing them, except as to rate and except as otherwise
29 provided herein, shall be identical with the corresponding provisions in
30 [such] article twenty-eight of this chapter, including the applicable
31 definition and exemption provisions of such article, so far as the
32 provisions of such article twenty-eight of this chapter can be made
33 applicable to the taxes imposed by such school district and with such
34 limitations and special provisions as are set forth in this article. The
35 taxes described in subdivision (b) of section eleven hundred five (but
36 excluding the tax on prepaid telephone calling service) and clauses (E)
37 and (H) of subdivision (a) of section eleven hundred ten, including the
38 transitional provision in subdivision (b) of such section eleven hundred
39 six of this chapter, may not be imposed by such school district unless
40 the resolution imposes such taxes so as to include all portions and all
41 types of receipts and uses subject to tax under such subdivision (but
42 excluding the tax on prepaid telephone calling service) and clauses.
43 Provided, however, that, where a school district imposes such taxes,
44 such taxes shall omit the provision for refund or credit contained in
45 subdivision (d) of section eleven hundred nineteen of this chapter with
46 respect to such taxes described in such subdivision (b) of section elev-
47 en hundred five unless such school district elects to provide such
48 provision or, if so elected, to repeal such provision, and shall omit
49 the exemptions provided in paragraph two of subdivision (ee) and para-
50 graph two of subdivision (ii) of section eleven hundred fifteen of this
51 chapter unless such school district elects otherwise, and shall omit the
52 exemption provided in paragraph two of subdivision (kk) of section elev-
53 en hundred fifteen of this chapter unless such school district elects
54 otherwise, and shall omit the exemption provided in paragraph forty-sev-
55 en of subdivision (a) of section eleven hundred fifteen of this chapter
56 unless such school district elects otherwise, and shall omit the
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1 exemption provided in subdivision (ll) of section eleven hundred fifteen
2 of this chapter unless such school district elects otherwise.
3 § 9. Section 1224 of the tax law is amended by adding two new subdivi-
4 sions (c-3) and (c-4) to read as follows:
5 (c-3) Notwithstanding any other provision of law: (1) Where a county
6 containing one or more cities with a population of less than one million
7 has elected the exemption for residential geothermal heat pump systems
8 equipment and installation provided in paragraph forty-seven of subdivi-
9 sion (a) of section eleven hundred fifteen of this chapter, a city with-
10 in such county shall have the prior right to impose tax on such exempt
11 equipment and/or installation to the extent of one half of the maximum
12 rates authorized under subdivision (a) of section twelve hundred ten of
13 this article;
14 (2) Where a city of less than one million has elected the exemption
15 for residential geothermal heat pump systems equipment and installation
16 provided in paragraph forty-seven of subdivision (a) of section eleven
17 hundred fifteen of this chapter, the county in which such city is
18 located shall have the prior right to impose tax on such exempt equip-
19 ment and/or installation to the extent of one half of the maximum rates
20 authorized under subdivision (a) of section twelve hundred ten of this
21 article.
22 (c-4) Notwithstanding any other provision of law: (1) Where a county
23 containing one or more cities with a population of less than one million
24 has elected the exemption for commercial geothermal heat pump systems
25 equipment and installation provided in subdivision (ll) of section elev-
26 en hundred fifteen of this chapter, a city within such county shall have
27 the prior right to impose tax on such exempt equipment and/or installa-
28 tion to the extent of one half of the maximum rates authorized under
29 subdivision (a) of section twelve hundred ten of this article;
30 (2) Where a city of less than one million has elected the exemption
31 for commercial geothermal heat pump systems equipment and installation
32 provided in subdivision (ll) of section eleven hundred fifteen of this
33 chapter, the county in which such city is located shall have the prior
34 right to impose tax on such exempt equipment and/or installation to the
35 extent of one half of the maximum rates authorized under subdivision (a)
36 of section twelve hundred ten of this article.
37 § 10. This act shall take effect on the first day of a sales tax quar-
38 terly period, as described in subdivision (b) of section 1136 of the tax
39 law, beginning at least ninety days after the date this act shall have
40 become a law and shall apply to sales made on or after such date;
41 provided that sections four and six of this act shall take effect on the
42 same date and in the same manner as part J of chapter 59 of the laws of
43 2021 takes effect.