Bill Text: NY A05780 | 2015-2016 | General Assembly | Amended
Bill Title: Provides a tax exemption from sales and compensating use taxes on alternative energy systems including alternative energy systems, new Energy Star appliances and tangible personal property used in or on habitable residential and non-residential structure to improve energy efficiency; and defines relevant terms; authorizes municipalities to adopt the exemption.
Spectrum: Moderate Partisan Bill (Democrat 7-2)
Status: (Introduced - Dead) 2016-04-25 - print number 5780a [A05780 Detail]
Download: New_York-2015-A05780-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5780--A 2015-2016 Regular Sessions IN ASSEMBLY March 4, 2015 ___________ Introduced by M. of A. KAVANAGH, COLTON, HOOPER, RAMOS -- Multi-Spon- sored by -- M. of A. CROUCH, McLAUGHLIN, PEOPLES-STOKES, SCHIMEL, TITONE -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing an exemption for alternative energy systems from the state's sales and compensating use taxes and authorizing counties and cities to elect such exemption from their sales and use taxes imposed by or pursuant to the authority of such law; and providing for the repeal of such provisions upon expira- tion thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (b) of section 1101 of the tax law is amended 2 by adding a new paragraph 39 to read as follows: 3 (39) Alternative energy systems. New Energy Star appliances and tangi- 4 ble personal property used in or on habitable residential and non-resi- 5 dential structures for the purpose of improving the energy efficiency of 6 such structures consist of: (i) systems which do not rely on petroleum 7 products or natural gas as their energy source or fuel cell electric 8 generation equipment as described in paragraph two of subsection (g-2) 9 of section six hundred six of this chapter; (ii) new Energy Star appli- 10 ances, including residential refrigerators, freezers, clothing washers 11 (but not a combination washer/dryer unless the clothing is washed and 12 dried in the same compartment), light fixtures which use a pin-based 13 compact fluorescent bulb, non-commercial ceiling fans or ceiling fan and 14 light kits, dishwasher or air conditioners, sold at retail, provided 15 such appliances qualify for and are labeled with, an Energy Star label 16 by the manufacturer, pursuant to an agreement among the manufacturer, 17 the United States environmental protection agency and the United States EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04884-05-6A. 5780--A 2 1 department of energy; and (iii) tangible personal property that improves 2 the energy efficiency of residential and non-residential heating and 3 cooling systems, including but not limited to, insulation and weather 4 stripping and products, such as roofing, windows, doors and skylights 5 approved by the Energy Star program. 6 § 2. Subdivision (a) of section 1115 of the tax law is amended by 7 adding a new paragraph 44 to read as follows: 8 (44) Alternative energy systems, new Energy Star appliances and tangi- 9 ble personal property used in or on habitable residential and non-resi- 10 dential structures for the purpose of improving the energy efficiency of 11 such structures, as defined in paragraph thirty-nine of subdivision (b) 12 of section eleven hundred one of this article. 13 § 3. Clause 9 of subdivision (b) of section 1107 of the tax law, as 14 amended by section 78 of part A of chapter 56 of the laws of 1998, is 15 amended to read as follows: 16 (9) Except as otherwise provided by law, the [exemption] exemptions 17 provided for in paragraph thirty of subdivision (a) of section eleven 18 hundred fifteen of this article relating to clothing and footwear and 19 paragraph forty-four of subdivision (a) of section eleven hundred 20 fifteen of this article relating to alternative energy systems shall not 21 apply. 22 § 4. Subdivision (f) of section 1109 of the tax law, as added by 23 section 118-a of part A of chapter 389 of the laws of 1997, is amended 24 to read as follows: 25 (f) The [exemption] exemptions contained in [paragraph] paragraphs 26 thirty and forty-four of subdivision (a) of section eleven hundred 27 fifteen of this article shall not apply. 28 § 5. Section 1109 of the tax law is amended by adding a new subdivi- 29 sion (i) to read as follows: 30 (i) Notwithstanding any other provision of state or local law, ordi- 31 nance or resolution to the contrary: (1) In the event that a county, 32 city or school district located in the metropolitan commuter transporta- 33 tion district imposes taxes pursuant to the authority of subpart B of 34 part I of article twenty-nine of this chapter and elects to provide the 35 alternative energy systems exemption authorized in paragraph one of 36 subdivision (a) of section twelve hundred ten of this chapter, or a city 37 located in such district in which the taxes provided for in section 38 eleven hundred seven of this part are in effect elects to provide such 39 alternative energy systems exemption from such taxes pursuant to the 40 authority of subdivision (q) of section twelve hundred ten of this chap- 41 ter, or the taxes provided for in section eleven hundred eight of this 42 part are in effect in a city located in such district, the exemption 43 provided by paragraph forty-four of subdivision (a) of section eleven 44 hundred fifteen of this article shall be applicable in such portion of 45 the metropolitan commuter transportation district in which such county, 46 city or school district is located. The commissioner shall determine and 47 certify to the comptroller the amount of revenue forgone at the rate of 48 one-quarter of one percent under this section in such county, city or 49 school district on account of sales of alternative energy systems in 50 such county, city or school district. 51 (2) Commencing with the sales tax quarterly period which commences on 52 June first, two thousand sixteen, the commissioner shall make such 53 determinations and certifications on the twelfth day of the month 54 following the month in which sales tax quarterly returns are due under 55 section eleven hundred thirty-six of this article with respect to such 56 quarterly period for as long as such alternative energy systemsA. 5780--A 3 1 exemptions from such taxes imposed pursuant to the authority of article 2 twenty-nine of this chapter or by section eleven hundred seven or eleven 3 hundred eight of this part are in effect. Neither the commissioner nor 4 the comptroller shall be held liable for any inaccuracy in such determi- 5 nations and certifications. Such determinations and certifications may 6 be based on such information as may be available to the commissioner at 7 the time such determinations and certifications must be made under this 8 subdivision and may be estimated on the basis of percentages or other 9 indices calculated from distributions from prior periods. The commis- 10 sioner shall be authorized to require such information as the commis- 11 sioner deems necessary to comply with the requirements of this subdivi- 12 sion from persons required to file returns under section eleven hundred 13 thirty-six of this article. 14 (3) By the fifteenth day of the month in which the commissioner has 15 made the certifications to the comptroller described in paragraph two of 16 this subdivision, the comptroller shall bill any county, city or school 17 district in such metropolitan commuter transportation district which 18 provides such alternative energy systems exemption, and any city in such 19 district in which the taxes imposed by section eleven hundred seven of 20 this part are in effect which has elected to provide such alternative 21 energy systems exemption, and any city in such district in which the 22 taxes imposed by section eleven hundred eight of this part are in 23 effect, an amount equal to one-half of the amount certified to the comp- 24 troller by the commissioner in respect of such county, city or school 25 district; and such county, city or school district shall pay the amount 26 of such bill to the comptroller by the twenty-fifth day of such month. 27 The comptroller shall deposit any such amounts received in the mass 28 transportation operating assistance fund established by section eighty- 29 eight-a of the state finance law to the credit of the metropolitan mass 30 transportation operating assistance account therein. 31 (4) In the event that a county, city or school district imposing tax 32 pursuant to the authority of subpart B of part I of article twenty-nine 33 of this chapter does not pay in full a bill described in paragraph three 34 of this subdivision by the twenty-fifth day of the month described in 35 paragraphs two and three of this subdivision, the comptroller shall 36 deduct any amount not paid from the amount of the next payment or 37 payments due such county, city or school district pursuant to subdivi- 38 sion (c) of section twelve hundred sixty-one of this chapter until such 39 amount not paid has been recovered. The comptroller shall deposit the 40 amounts so deducted and recovered in the mass transportation operating 41 assistance fund to be credited as provided in paragraph three of this 42 subdivision. 43 (5) In the event that a city in which the taxes imposed by section 44 eleven hundred seven of this part are in effect does not pay in full a 45 bill described in paragraph three of this subdivision by the twenty- 46 fifth day of the month described in paragraphs two and three of this 47 subdivision, the comptroller shall deduct any amount not paid from the 48 amount of the next payment or payments due such city, with respect to 49 taxes, penalty and interest imposed pursuant to the authority of section 50 twelve hundred twelve-a of this chapter, pursuant to subdivision (c) of 51 section twelve hundred sixty-one of this chapter, until such amount not 52 paid has been recovered. The comptroller shall deposit the amounts so 53 deducted and recovered in the mass transportation operating assistance 54 fund to be credited as provided in paragraph three of this subdivision. 55 (6) In the event that a city in which the taxes imposed by section 56 eleven hundred eight of this part are in effect does not pay in full aA. 5780--A 4 1 bill described in paragraph three of this subdivision by the twenty- 2 fifth day of the month described in paragraphs two and three of this 3 subdivision, the comptroller shall deduct any amount not paid from the 4 amount of any other moneys due such city from the comptroller, not 5 otherwise pledged, dedicated or encumbered pursuant to other state law, 6 until such amount not paid has been recovered. The comptroller shall 7 deposit the amounts so deducted and recovered in the mass transportation 8 operating assistance fund to be credited as provided in paragraph three 9 of this subdivision. 10 (7) The commissioner shall certify the amount of any over calculation 11 or under calculation of any certification required to be made to the 12 comptroller under paragraph three of this subdivision as soon after its 13 discovery as reasonably possible and subsequent bills to a city, county 14 or school district to which the over calculation or under calculation 15 relates shall be adjusted accordingly, provided that the comptroller may 16 adjust such number of subsequent bills as the comptroller shall consider 17 reasonable in view of the amount of the adjustment and all other facts 18 and circumstances. 19 (8) On the same date that the comptroller is required to bill a coun- 20 ty, city or school district an amount as provided in paragraph three of 21 this subdivision, the comptroller shall, after having first made any 22 deposits required by section ninety-two-r of the state finance law and 23 only to the extent that there are moneys remaining after having made 24 such required deposits, withdraw from the state treasury, to the debit 25 of the general fund, an amount equal to the total of the amounts 26 required to be billed to counties, cities and school districts pursuant 27 to such paragraph three and deposit such total amount in the mass trans- 28 portation operating assistance fund to be credited as provided in such 29 paragraph three. The amount of any over calculation or under calculation 30 determined in paragraph seven of this subdivision shall likewise be 31 applied to the amounts required to be deposited under this paragraph, so 32 that the amounts deposited under this paragraph equal the total of the 33 amounts required to be billed to counties, cities and school districts 34 under such paragraph three, as adjusted, pursuant to paragraph seven of 35 this subdivision. 36 § 6. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 37 amended by section 3 of part Z of chapter 59 of the laws of 2015, is 38 amended to read as follows: 39 (1) Either, all of the taxes described in article twenty-eight of this 40 chapter, at the same uniform rate, as to which taxes all provisions of 41 the local laws, ordinances or resolutions imposing such taxes shall be 42 identical, except as to rate and except as otherwise provided, with the 43 corresponding provisions in such article twenty-eight, including the 44 definition and exemption provisions of such article, so far as the 45 provisions of such article twenty-eight can be made applicable to the 46 taxes imposed by such city or county and with such limitations and 47 special provisions as are set forth in this article. The taxes author- 48 ized under this subdivision may not be imposed by a city or county 49 unless the local law, ordinance or resolution imposes such taxes so as 50 to include all portions and all types of receipts, charges or rents, 51 subject to state tax under sections eleven hundred five and eleven 52 hundred ten of this chapter, except as otherwise provided. (i) Any local 53 law, ordinance or resolution enacted by any city of less than one 54 million or by any county or school district, imposing the taxes author- 55 ized by this subdivision, shall, notwithstanding any provision of law to 56 the contrary, exclude from the operation of such local taxes all salesA. 5780--A 5 1 of tangible personal property for use or consumption directly and 2 predominantly in the production of tangible personal property, gas, 3 electricity, refrigeration or steam, for sale, by manufacturing, proc- 4 essing, generating, assembly, refining, mining or extracting; and all 5 sales of tangible personal property for use or consumption predominantly 6 either in the production of tangible personal property, for sale, by 7 farming or in a commercial horse boarding operation, or in both; and, 8 unless such city, county or school district elects otherwise, shall omit 9 the provision for credit or refund contained in clause six of subdivi- 10 sion (a) or subdivision (d) of section eleven hundred nineteen of this 11 chapter. (ii) Any local law, ordinance or resolution enacted by any 12 city, county or school district, imposing the taxes authorized by this 13 subdivision, shall omit the residential solar energy systems equipment 14 and electricity exemption provided for in subdivision (ee), the commer- 15 cial solar energy systems equipment and electricity exemption provided 16 for in subdivision (ii) and the clothing and footwear exemption provided 17 for in paragraph thirty of subdivision (a) of section eleven hundred 18 fifteen of this chapter and the alternative energy systems exemption 19 provided for in paragraph forty-four of subdivision (a) of section elev- 20 en hundred fifteen of this chapter, unless such city, county or school 21 district elects otherwise as to either such residential solar energy 22 systems equipment and electricity exemption, such commercial solar ener- 23 gy systems equipment and electricity exemption [or], such clothing and 24 footwear exemption or such alternative energy systems exemption. 25 § 7. Subdivision (d) of section 1210 of the tax law, as amended by 26 section 4-a of part Z of chapter 59 of the laws of 2015, is amended to 27 read as follows: 28 (d) A local law, ordinance or resolution imposing any tax pursuant to 29 this section, increasing or decreasing the rate of such tax, repealing 30 or suspending such tax, exempting from such tax the energy sources and 31 services described in paragraph three of subdivision (a) or of subdivi- 32 sion (b) of this section or changing the rate of tax imposed on such 33 energy sources and services or providing for the credit or refund 34 described in clause six of subdivision (a) of section eleven hundred 35 nineteen of this chapter, or electing or repealing the exemption for 36 residential solar equipment and electricity in subdivision (ee) of 37 section eleven hundred fifteen of this article, or the exemption for 38 commercial solar equipment and electricity in subdivision (ii) of 39 section eleven hundred fifteen of this article must go into effect only 40 on one of the following dates: March first, June first, September first 41 or December first; provided, that a local law, ordinance or resolution 42 providing for the exemption described in paragraph thirty or forty-four 43 of subdivision (a) of section eleven hundred fifteen of this chapter or 44 repealing any such exemption or a local law, ordinance or resolution 45 providing for a refund or credit described in subdivision (d) of section 46 eleven hundred nineteen of this chapter or repealing such provision so 47 provided must go into effect only on March first. No such local law, 48 ordinance or resolution shall be effective unless a certified copy of 49 such law, ordinance or resolution is mailed by registered or certified 50 mail to the commissioner at the commissioner's office in Albany at least 51 ninety days prior to the date it is to become effective. However, the 52 commissioner may waive and reduce such ninety-day minimum notice 53 requirement to a mailing of such certified copy by registered or certi- 54 fied mail within a period of not less than thirty days prior to such 55 effective date if the commissioner deems such action to be consistent 56 with the commissioner's duties under section twelve hundred fifty ofA. 5780--A 6 1 this article and the commissioner acts by resolution. Where the 2 restriction provided for in section twelve hundred twenty-three of this 3 article as to the effective date of a tax and the notice requirement 4 provided for therein are applicable and have not been waived, the 5 restriction and notice requirement in section twelve hundred twenty- 6 three of this article shall also apply. 7 § 8. Section 1210 of the tax law is amended by adding a new subdivi- 8 sion (q) to read as follows: 9 (q) Notwithstanding any other provision of state or local law, ordi- 10 nance or resolution to the contrary: 11 (1) Any city having a population of one million or more in which the 12 taxes imposed by section eleven hundred seven of this chapter are in 13 effect, acting through its local legislative body, is hereby authorized 14 and empowered to elect to provide the exemption from such taxes for the 15 same alternative energy systems exempt from state sales and compensating 16 use taxes described in paragraph forty-four of subdivision (a) of 17 section eleven hundred fifteen of this chapter by enacting a resolution 18 exactly in the form set forth in paragraph two of this subdivision; 19 whereupon, upon compliance with the provisions of subdivisions (d) and 20 (e) of this section, such enactment of such resolution shall be deemed 21 to be an amendment to such section eleven hundred seven and such section 22 eleven hundred seven shall be deemed to incorporate such exemption as if 23 it had been duly enacted by the state legislature and approved by the 24 governor. 25 (2) Form of Resolution: Be it enacted by the (insert proper title of 26 local legislative body) as follows: 27 Section one. Receipts from sales of and consideration given or 28 contracted to be given for, or for the use of, alternative energy 29 systems exempt from state sales and compensating use taxes pursuant to 30 paragraph forty-four of subdivision (a) of section 1115 of the New York 31 tax law shall also be exempt from sales and compensating use taxes 32 imposed in this jurisdiction. 33 Section two. This resolution shall take effect March 1, (insert the 34 year, but not earlier than the year 2017) and shall apply to sales made 35 and uses occurring on or after such date in accordance with the applica- 36 ble transitional provisions of sections 1106 and 1217 of the New York 37 tax law. 38 § 9. Notwithstanding any other provision of state or local law, ordi- 39 nance or resolution to the contrary: (a) Any county or city imposing 40 sales and compensating use taxes pursuant to the authority of subpart B 41 of part 1 of article 29 of the tax law, acting through its local legis- 42 lative body, is hereby authorized and empowered to elect to provide the 43 exemption from such taxes for alternative energy systems exempt from 44 state sales and compensating use taxes described in paragraph 44 of 45 subdivision (a) of section 1115 of the tax law, whether such taxes are 46 imposed by local law, ordinance or resolution, by enacting a resolution 47 exactly in the form set forth in subdivision (c) of this section; where- 48 upon, upon compliance with the provisions of subdivision (d) of this 49 section, such enactment of such resolution shall be deemed to amend such 50 local law, ordinance or resolution imposing such taxes, and such local 51 law, ordinance or resolution shall thenceforth be deemed to incorporate 52 such exemption. 53 (b) Any city of one million or more in which the taxes imposed by 54 section 1107 of the tax law are in effect, acting through its local 55 legislative body, is hereby authorized and empowered to elect to provide 56 the exemption from such taxes for the same alternative energy systemsA. 5780--A 7 1 exempt from state sales and compensating use taxes described in para- 2 graph 44 of subdivision (a) of section 1115 of the tax law by enacting a 3 resolution exactly in the form set forth in subdivision (c) of this 4 section; whereupon, upon compliance with the provisions of subdivision 5 (d) of this section, such enactment of such resolution shall be deemed 6 to amend such section 1107 of the tax law and such section 1107 shall 7 thenceforth be deemed to incorporate such exemption as if it had been 8 duly enacted by the state legislature and approved by the governor and 9 such resolution shall also be deemed to amend any local law, ordinance 10 or resolution enacted by such a city imposing such taxes pursuant to the 11 authority of subdivision (a) of section 1210 of the tax law, whether or 12 not such taxes are suspended at the time such city enacts its resol- 13 ution. 14 (c) Form of Resolution: 15 Be it enacted by the (insert proper title of local legislative body) 16 as follows: 17 Section one: The (county or city) of (insert locality's name) hereby 18 elects the alternative energy systems exemption commencing in January of 19 2017. 20 Section two: This resolution shall take effect immediately and shall 21 apply to sales made and uses occurring on or after such date, in accord- 22 ance with applicable transitional provisions of the New York tax law. 23 (d) A resolution adopted pursuant to this section shall be effective 24 only if it is adopted exactly as set forth in subdivision (c) of this 25 section and such county or city adopts it by December 31, 2016, mails a 26 certified copy of it to the commissioner of taxation and finance by 27 certified mail by such date and otherwise complies with the requirements 28 of subdivisions (d) and (e) of section 1210 of the tax law. 29 § 10. This act shall take effect immediately and shall expire and be 30 deemed repealed two years after such date and shall apply to sales made 31 and uses occurring during exemption periods on or after that date in 32 accordance with the applicable transitional provisions of sections 1106 33 and 1217 of the tax law.
