•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A01523 Summary:

BILL NOA01523
 
SAME ASSAME AS S02556
 
SPONSORCarroll
 
COSPNSREpstein, Simon, Rosenthal L, Hyndman, Weprin, Taylor, Reyes, Fahy, Anderson, Jackson, Levenberg, Simone, Dinowitz
 
MLTSPNSR
 
Amd §1111, rpld §1115 sub (a) ¶21-a, Tax L
 
Relates to the imposition of sales and compensating use taxes with respect to certain aircraft; repeals provisions relating to the exemption from sales and compensating use taxes of general aviation aircraft, and machinery or equipment to be installed on such aircraft.
Go to top

A01523 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1523
 
SPONSOR: Carroll
  TITLE OF BILL: An act to amend the tax law, in relation to the imposition of sales and compensating use taxes with respect to certain aircraft; and to repeal paragraph 21-a of subdivision (a) of section 1115 of the tax law, relat- ing thereto   PURPOSE OF BILL: The purpose of this legislation is to reinstate the sales and compensat- ing use taxes on private, non-commercial aircraft.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends paragraph (A) of subdivision (i) of section 1111 of the tax law ("Special rules for computing receipts and consideration"), as added by section 1 of part TT of chapter 59 of the laws of 2015, to restore language pertaining to non-commercial aircraft that was struck from this section of law in 2015. Section 2 of the bill amends subdivision (q) of section 1111 of the tax law ("Special rules for computing receipts and consideration"), as added by section 2 of part TT of chapter 59 of the laws of 2015, to restore language pertaining to aircraft that was struck from this section of law in 2015. Section 3 of the bill repeals paragraph 21-a of subdivision (a) of section 1115 of the tax law ("Exemptions from sales and use taxes") to repeal the exemption for general aviation aircraft that was created in 2015. Section 4 of the bill is the effective date.   JUSTIFICATION: The 2015 state budget created an exemption from sales and compensating use taxes for private aircraft. At a time when New York State is facing difficult budgetary decisions, we should look first at reversing or repealing recent tax cuts like this one before cutting services or programs that aid poor, vulnerable, and working class New Yorkers.   PRIOR LEGISLATIVE HISTORY: A.9053/S.7135 of 2019-20; A.918/S.429 of 2021-22   FISCAL IMPLICATIONS: Would result in sales and compensating use tax revenue generated for the state.   EFFECTIVE DATE: This act shall take effect June 1, 2023.
Go to top

A01523 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1523
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2023
                                       ___________
 
        Introduced  by  M. of A. CARROLL, EPSTEIN, SIMON, L. ROSENTHAL, HYNDMAN,
          WEPRIN, TAYLOR, REYES,  FAHY,  ANDERSON,  JACKSON  --  read  once  and
          referred to the Committee on Ways and Means
 
        AN  ACT to amend the tax law, in relation to the imposition of sales and
          compensating use taxes with respect to certain aircraft; and to repeal
          paragraph 21-a of subdivision (a) of section  1115  of  the  tax  law,
          relating thereto
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (A) of subdivision (i) of section 1111 of the tax
     2  law, as added by section 1 of part TT of chapter 59 of the laws of 2015,
     3  is amended to read as follows:
     4    (A) Notwithstanding any contrary provisions of this article  or  other
     5  law,  with  respect to any lease for a term of one year or more of (1) a
     6  motor vehicle, as defined in section  one  hundred  twenty-five  of  the
     7  vehicle  and  traffic  law,  with a gross vehicle weight of ten thousand
     8  pounds or less, [or] (2) a vessel,  as  defined  in  section  twenty-two
     9  hundred  fifty  of such law (including any inboard or outboard motor and
    10  any trailer, as defined in section one hundred fifty-six  of  such  law,
    11  leased  in conjunction with such a vessel) or (3) noncommercial aircraft
    12  having a seating capacity of less than twenty passengers and  a  maximum
    13  capacity  of less than six thousand pounds, or an option to renew such a
    14  lease or a similar contractual provision, all receipts due or  consider-
    15  ation  given  or  contracted to be given for such property under and for
    16  the entire period of such lease, option to renew or  similar  provision,
    17  or  combination  of them, shall be deemed to have been paid or given and
    18  shall be subject to tax, and any such tax due shall be collected, as  of
    19  the  date  of first payment under such lease, option to renew or similar
    20  provision, or combination of them, or as of the date of registration  of
    21  such  property  with  the  commissioner  of motor vehicles, whichever is
    22  earlier. Notwithstanding any inconsistent provisions of subdivision  (b)
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04834-01-3

        A. 1523                             2
 
     1  of  this  section or of section eleven hundred seventeen of this article
     2  or of other law, for purposes of such a lease, option to renew or  simi-
     3  lar  provision  originally  entered into outside this state, by a lessee
     4  (1)  who  was a resident of this state, and leased such property for use
     5  outside the state and who subsequently brings such  property  into  this
     6  state for use here or (2) who was a nonresident and subsequently becomes
     7  a  resident  and  brings  the property into this state for use here, any
     8  remaining receipts due or consideration to be given  after  such  lessee
     9  brings  such  property into this state shall be subject to tax as if the
    10  lessee had entered into or exercised such  lease,  option  to  renew  or
    11  similar  provision,  or  combination thereof, for the first time in this
    12  state and  the  relevant  provisions  of  sections  eleven  hundred  ten
    13  concerning  imposition  and  computation of tax, eleven hundred eighteen
    14  concerning exemption from use tax for tax paid to another  jurisdiction,
    15  eleven  hundred  thirty-two  concerning  presumption  of  taxability and
    16  conditions for registration and eleven  hundred  thirty-nine  concerning
    17  refunds, of this article, shall be applicable to any sales or compensat-
    18  ing  use  tax  paid by the lessee before the lessee brought the property
    19  into this state, except to the extent that any such provision is  incon-
    20  sistent  with  a  provision  of  this  subdivision. For purposes of this
    21  subdivision, (1) a lease for a term of one year or  more  shall  include
    22  any  lease for a shorter term which includes an option to renew or other
    23  like provision (or more than one of  such  option  or  other  provision)
    24  where  the cumulative period that the lease, with or without such option
    25  or provision, may be in effect upon exercise of such option or provision
    26  is one year or more and (2) receipts  due  and  consideration  given  or
    27  contracted  to  be  given  under  any  such lease or other provision for
    28  excess mileage charges shall be subject to tax as and when paid or due.
    29    § 2. Subdivision (q) of section 1111 of the tax  law,  as  amended  by
    30  section  2  of  part TT of chapter 59 of the laws of 2015, is amended to
    31  read as follows:
    32    (q) (1) The exclusions from the definition of retail sale in  subpara-
    33  graph  (iv)  of  paragraph  four  of  subdivision  (b) of section eleven
    34  hundred one of this article shall not apply to transfers, distributions,
    35  or contributions of an aircraft or a vessel, except where, in  the  case
    36  of  the  exclusion  in  subclause (I) of clause (A) of such subparagraph
    37  (iv), the two corporations to be merged or consolidated are  not  affil-
    38  iated  persons with respect to each other. For purposes of this subdivi-
    39  sion, corporations are affiliated persons with  respect  to  each  other
    40  where  (i)  more than five percent of their combined shares are owned by
    41  members of the same family, as defined by paragraph four  of  subsection
    42  (c)  of  section two hundred sixty-seven of the internal revenue code of
    43  nineteen hundred eighty-six; (ii) one of the corporations has an  owner-
    44  ship  interest of more than five percent, whether direct or indirect, in
    45  the other; or (iii) another person or a group of other persons that  are
    46  affiliated persons with respect to each other hold an ownership interest
    47  of  more  than  five percent, whether direct or indirect, in each of the
    48  corporations.
    49    (2) Notwithstanding any contrary provision of law, in relation to  any
    50  transfer,  distribution, or contribution of an aircraft or a vessel that
    51  qualifies as a retail sale as a result of paragraph one of this subdivi-
    52  sion, the sales tax imposed by subdivision (a) of section eleven hundred
    53  five of this part shall be computed based on  the  price  at  which  the
    54  seller purchased the tangible personal property, provided that where the
    55  seller  or purchaser affirmatively shows that the seller owned the prop-
    56  erty for six months  prior  to  making  the  transfer,  distribution  or

        A. 1523                             3
 
     1  contribution covered by paragraph one of this subdivision, such aircraft
     2  or vessel shall be taxed on the basis of the current market value of the
     3  aircraft  or  vessel  at  the  time  of  that transfer, distribution, or
     4  contribution.  For  the  purposes of the prior sentence, "current market
     5  value" shall not exceed the cost of the aircraft or vessel. See subdivi-
     6  sion (b) of this section for a similar rule on the  computation  of  any
     7  compensating  use  tax due under section eleven hundred ten of this part
     8  on such transfers, distributions, or contributions.
     9    (3) A purchaser of an aircraft or a vessel covered by paragraph one of
    10  this subdivision will be entitled to a  refund  or  credit  against  the
    11  sales  or  compensating  use tax due as a result of a transfer, distrib-
    12  ution, or contribution of such aircraft or vessel in the amount  of  any
    13  sales  or  use tax paid to this state or any other state on the seller's
    14  purchase or use of the aircraft or vessel so transferred, distributed or
    15  contributed, but not to exceed the tax due  on  the  transfer,  distrib-
    16  ution,  or  contribution of the aircraft or vessel or on the purchaser's
    17  use in the state of the aircraft or vessel so  transferred,  distributed
    18  or  contributed. An application for a refund or credit under this subdi-
    19  vision must be filed and shall be in such form as the  commissioner  may
    20  prescribe. Where an application for credit has been filed, the applicant
    21  may  immediately  take such credit on the return which is due coincident
    22  with or immediately subsequent to the time the application for credit is
    23  filed. However, the taking of the credit on the return shall  be  deemed
    24  to be part of the application for credit. Provided that the commissioner
    25  may,  in  his or her discretion and notwithstanding any other law, waive
    26  the application requirement for any or all classes of persons where  the
    27  amount  of  the  credit  or refund is equal to the amount of the tax due
    28  from the purchaser. The provisions of subdivisions (a), (b), and (c)  of
    29  section eleven hundred thirty-nine of this article shall apply to appli-
    30  cations  for  refund or credit under this subdivision. No interest shall
    31  be allowed or paid on any refund  made  or  credit  allowed  under  this
    32  subdivision. If a refund is granted or a credit allowed under this para-
    33  graph,  the  seller  or  purchaser shall not be eligible for a refund or
    34  credit pursuant to subdivision seven of section eleven hundred  eighteen
    35  of this article with regard to the same purchase or use.
    36    §  3. Paragraph 21-a of subdivision (a) of section 1115 of the tax law
    37  is REPEALED.
    38    § 4. This act shall take effect June 1, 2023.
Go to top