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S02005 Summary:

BILL NOS02005
 
SAME ASNo Same As
 
SPONSORTEDISCO
 
COSPNSRBOYLE, SERINO
 
MLTSPNSR
 
Amd 1115, 1107 & 1210, Tax L
 
Relates to providing an exemption for drugs and medicines for companion and farm animals.
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S02005 Actions:

BILL NOS02005
 
01/18/2019REFERRED TO BUDGET AND REVENUE
01/08/2020REFERRED TO BUDGET AND REVENUE
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S02005 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2005
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                    January 18, 2019
                                       ___________
 
        Introduced  by  Sens.  TEDISCO,  BOYLE, SERINO -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Budget
          and Revenue
 
        AN  ACT  to amend the tax law, in relation to providing an exemption for
          drugs and medicines for companion and farm animals

          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 3-b to read as follows:
     3    (3-b) Drugs and medicines intended for use, internally or  externally,
     4  in  the  cure,  mitigation,  treatment  or  prevention  of  illnesses or
     5  diseases in companion animals, as defined by subdivision five of section
     6  three hundred fifty  of  the  agriculture  and  markets  law,  and  farm
     7  animals,  as  defined by subdivision four of section three hundred fifty
     8  of the agriculture and markets law, medical equipment (including  compo-
     9  nent  parts thereof) and supplies required for such use or to correct or
    10  alleviate physical incapacity.
    11    § 2. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
    12  adding a new clause 12 to read as follows:
    13    (12)  Except  as  otherwise provided by law, the exemption provided by
    14  paragraph three-b of subdivision (a) of section eleven  hundred  fifteen
    15  of  this  article  relating  to  drugs and medicines intended for use in
    16  companion animals and farm animals shall be  applicable  pursuant  to  a
    17  local  law,  ordinance  or  resolution  adopted by a city subject to the
    18  provisions of this clause. Such city is empowered  to  adopt  or  repeal
    19  such a local law, ordinance or resolution. Such adoption or repeal shall
    20  also  be  deemed to amend any local law, ordinance or resolution enacted
    21  by such a city imposing taxes pursuant to the authority  of  subdivision
    22  (a) of section twelve hundred ten of this chapter.
    23    §  3.  Subparagraph  (ii) of paragraph 1 of subdivision (a) of section
    24  1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03590-02-9

        S. 2005                             2
 
     1  the laws of 2016, is amended, and a new subparagraph (iii) is  added  to
     2  read as follows:
     3    (ii) Any local law, ordinance or resolution enacted by any city, coun-
     4  ty  or  school  district, imposing the taxes authorized by this subdivi-
     5  sion, shall omit the residential  solar  energy  systems  equipment  and
     6  electricity exemption provided for in subdivision (ee) of section eleven
     7  hundred  fifteen  of  this  chapter, the commercial solar energy systems
     8  equipment and electricity exemption provided for in subdivision (ii)  of
     9  section eleven hundred fifteen of this chapter, the commercial fuel cell
    10  electricity  generating  systems  equipment and electricity generated by
    11  such equipment exemption provided for in  subdivision  (kk)  of  section
    12  eleven  hundred  fifteen  of  this chapter and the clothing and footwear
    13  exemption provided for in paragraph thirty of subdivision (a) of section
    14  eleven hundred fifteen of this chapter,  unless  such  city,  county  or
    15  school  district  elects  otherwise  as to such residential solar energy
    16  systems equipment and electricity exemption, such commercial solar ener-
    17  gy systems equipment and electricity  exemption,  commercial  fuel  cell
    18  electricity  generating  systems  equipment and electricity generated by
    19  such equipment exemption or such clothing and footwear exemption.  (iii)
    20  Any local law, ordinance or resolution enacted by any  city,  county  or
    21  school  district,  imposing  the  taxes  authorized by this subdivision,
    22  shall omit medicines intended for use  in  companion  animals  and  farm
    23  animals  exemption  provided for in paragraph three-b of subdivision (a)
    24  of section eleven hundred fifteen of this  chapter,  unless  such  city,
    25  county or school district elects otherwise; provided that if such a city
    26  having  a  population  of  one  million  or  more  enacts the resolution
    27  described in subdivision (p) of this section or repeals such resolution,
    28  such resolution or repeal shall also be deemed to amend any  local  law,
    29  ordinance  or  resolution  enacted  by  such  a city imposing such taxes
    30  pursuant to the authority of this subdivision, whether or not such taxes
    31  are suspended at the time such city enacts its  resolution  pursuant  to
    32  subdivision  (p)  of  this  section  or  at the time of any such repeal;
    33  provided, further, that any such local law, ordinance or resolution  and
    34  section eleven hundred seven of this chapter, as deemed to be amended in
    35  the  event a city of one million or more enacts a resolution pursuant to
    36  the authority of subdivision (p)  of  this  section,  shall  be  further
    37  amended, as provided in section twelve hundred eighteen of this subpart,
    38  so  that  the  medicines  intended for use in companion animals and farm
    39  animals exemption in any such local law, ordinance or resolution  or  in
    40  such  section  eleven  hundred  seven of this chapter is the same as the
    41  medicines intended for use in companion  animals  and  farm  animals  in
    42  paragraph  three-b  of subdivision (a) of section eleven hundred fifteen
    43  of this chapter.
    44    § 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
    45  section  4  of  part WW of chapter 60 of the laws of 2016, is amended to
    46  read as follows:
    47    (d) A local law, ordinance or resolution imposing any tax pursuant  to
    48  this  section,  increasing or decreasing the rate of such tax, repealing
    49  or suspending such tax, exempting from such tax the energy  sources  and
    50  services  described in paragraph three of subdivision (a) or of subdivi-
    51  sion (b) of this section or changing the rate of  tax  imposed  on  such
    52  energy  sources  and  services  or  providing  for  the credit or refund
    53  described in clause six of subdivision (a)  of  section  eleven  hundred
    54  nineteen  of  this  chapter,  or electing or repealing the exemption for
    55  residential solar equipment  and  electricity  in  subdivision  (ee)  of
    56  section  eleven  hundred  fifteen  of  this  [article]  chapter,  or the

        S. 2005                             3
 
     1  exemption for commercial solar equipment and electricity in  subdivision
     2  (ii)  of  section  eleven  hundred fifteen of this [article] chapter, or
     3  electing or repealing the exemption for commercial fuel cell electricity
     4  generating systems equipment and electricity generated by such equipment
     5  in  subdivision (kk) of section eleven hundred fifteen of this [article]
     6  chapter must go into effect only on one of the  following  dates:  March
     7  first,  June  first, September first or December first; provided, that a
     8  local law, ordinance or resolution providing for the exemption described
     9  in paragraph thirty of subdivision (a) of section eleven hundred fifteen
    10  of this chapter or repealing any such exemption or a  local  law,  ordi-
    11  nance or resolution providing for a refund or credit described in subdi-
    12  vision (d) of section eleven hundred nineteen of this chapter or repeal-
    13  ing  such provision so provided must go into effect only on March first;
    14  provided, further, that a local law, ordinance or  resolution  providing
    15  for  the  exemption described in paragraph three-b of subdivision (a) of
    16  section eleven hundred fifteen of this chapter  or  repealing  any  such
    17  exemption so provided and a resolution enacted pursuant to the authority
    18  of subdivision (p) of this section providing such exemption or repealing
    19  such  exemption  so  provided  may go into effect immediately.   No such
    20  local law, ordinance or resolution shall be effective unless a certified
    21  copy of such law, ordinance or resolution is  mailed  by  registered  or
    22  certified mail to the commissioner at the commissioner's office in Alba-
    23  ny  at  least  ninety  days prior to the date it is to become effective.
    24  However, the commissioner may waive and reduce such  ninety-day  minimum
    25  notice  requirement to a mailing of such certified copy by registered or
    26  certified mail within a period of not less than  thirty  days  prior  to
    27  such effective date if the commissioner deems such action to be consist-
    28  ent with the commissioner's duties under section twelve hundred fifty of
    29  this  article  and  the  commissioner  acts  by  resolution.  Where  the
    30  restriction provided for in section twelve hundred twenty-three of  this
    31  article  as  to  the  effective date of a tax and the notice requirement
    32  provided for therein are  applicable  and  have  not  been  waived,  the
    33  restriction  and  notice  requirement  in section twelve hundred twenty-
    34  three of this article shall also apply.
    35    § 5. Section 1210 of the tax law is amended by adding a  new  subdivi-
    36  sion (p) to read as follows:
    37    (p)  Notwithstanding  any other provision of state or local law, ordi-
    38  nance or resolution to the contrary:
    39    (1) Any city having a population of one million or more in  which  the
    40  taxes  imposed  by  section  eleven hundred seven of this chapter are in
    41  effect, acting through its local legislative body, is hereby  authorized
    42  and  empowered to elect to provide the exemption from such taxes for the
    43  same medicines intended for use in companion animals  and  farm  animals
    44  exempt  from  state  sales and compensating use taxes described in para-
    45  graph three-b of subdivision (a) of section eleven  hundred  fifteen  of
    46  this chapter by enacting a resolution in the form set forth in paragraph
    47  two  of this subdivision; whereupon, upon compliance with the provisions
    48  of subdivisions (d) and (e) of this  section,  such  enactment  of  such
    49  resolution  shall  be  deemed  to be an amendment to such section eleven
    50  hundred seven and such section eleven hundred seven shall be  deemed  to
    51  incorporate  such  exemption as if it had been duly enacted by the state
    52  legislature and approved by the governor.
    53    (2) The resolution described in  paragraph  one  of  this  subdivision
    54  shall  read  as  follows:  Be  it enacted by the (insert proper title of
    55  local legislative body) as follows:

        S. 2005                             4
 
     1    Section one.  Receipts  from  sales  of  and  consideration  given  or
     2  contracted  to  be  given for purchases of medicines intended for use in
     3  companion animals and farm animals exempt from state sales  and  compen-
     4  sating  use  taxes  pursuant  to paragraph three-b of subdivision (a) of
     5  section  eleven hundred fifteen of the tax law shall also be exempt from
     6  sales and compensating use taxes imposed in this jurisdiction.
     7    Section two. This resolution shall take effect, (insert the date)  and
     8  shall  apply  to  sales  made  and uses occurring on and after that date
     9  although made or occurring under a prior contract.
    10    § 6. The commissioner of taxation and finance is hereby authorized  to
    11  implement  the provisions of this act with respect to the elimination of
    12  the imposition of sales tax, additional taxes, and supplemental taxes on
    13  medicines intended for use in companion animals and farm animals and all
    14  other taxes so addressed by this act.
    15    § 7. This act shall take effect on the first  day  of  the  sales  tax
    16  quarterly period, as described in subdivision (b) of section 1136 of the
    17  tax  law,  next  commencing  at  least 90 days after this act shall have
    18  become a law and shall apply in accordance with the  applicable  transi-
    19  tional provisions of sections 1106 and 1217 of the tax law.
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