Bill Text: NY A09053 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the imposition of sales and compensating use taxes with respect to certain aircraft; and repeals paragraph (21-a) of subdivision (a) of section 1115 of the tax law, relating to the exemption from sales and compensating use taxes of general aviation aircraft, and machinery or equipment to be installed on such aircraft.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2020-01-10 - referred to ways and means [A09053 Detail]
Download: New_York-2019-A09053-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9053 IN ASSEMBLY January 10, 2020 ___________ Introduced by M. of A. CARROLL -- read once and referred to the Commit- tee 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) 23 of this section or of section eleven hundred seventeen of this article 24 or of other law, for purposes of such a lease, option to renew or simi- 25 lar provision originally entered into outside this state, by a lessee 26 (1) who was a resident of this state, and leased such property for use EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14669-02-0A. 9053 2 1 outside the state and who subsequently brings such property into this 2 state for use here or (2) who was a nonresident and subsequently becomes 3 a resident and brings the property into this state for use here, any 4 remaining receipts due or consideration to be given after such lessee 5 brings such property into this state shall be subject to tax as if the 6 lessee had entered into or exercised such lease, option to renew or 7 similar provision, or combination thereof, for the first time in this 8 state and the relevant provisions of sections eleven hundred ten 9 concerning imposition and computation of tax, eleven hundred eighteen 10 concerning exemption from use tax for tax paid to another jurisdiction, 11 eleven hundred thirty-two concerning presumption of taxability and 12 conditions for registration and eleven hundred thirty-nine concerning 13 refunds, of this article, shall be applicable to any sales or compensat- 14 ing use tax paid by the lessee before the lessee brought the property 15 into this state, except to the extent that any such provision is incon- 16 sistent with a provision of this subdivision. For purposes of this 17 subdivision, (1) a lease for a term of one year or more shall include 18 any lease for a shorter term which includes an option to renew or other 19 like provision (or more than one of such option or other provision) 20 where the cumulative period that the lease, with or without such option 21 or provision, may be in effect upon exercise of such option or provision 22 is one year or more and (2) receipts due and consideration given or 23 contracted to be given under any such lease or other provision for 24 excess mileage charges shall be subject to tax as and when paid or due. 25 § 2. Subdivision (q) of section 1111 of the tax law, as added by 26 section 2 of part TT of chapter 59 of the laws of 2015, is amended to 27 read as follows: 28 (q) (1) The exclusions from the definition of retail sale in subpara- 29 graph (iv) of paragraph four of subdivision (b) of section eleven 30 hundred one of this article shall not apply to transfers, distributions, 31 or contributions of an aircraft or a vessel, except where, in the case 32 of the exclusion in subclause (I) of clause (A) of such subparagraph 33 (iv), the two corporations to be merged or consolidated are not affil- 34 iated persons with respect to each other. For purposes of this subdivi- 35 sion, corporations are affiliated persons with respect to each other 36 where (i) more than five percent of their combined shares are owned by 37 members of the same family, as defined by paragraph four of subsection 38 (c) of section two hundred sixty-seven of the internal revenue code of 39 nineteen hundred eighty-six; (ii) one of the corporations has an owner- 40 ship interest of more than five percent, whether direct or indirect, in 41 the other; or (iii) another person or a group of other persons that are 42 affiliated persons with respect to each other hold an ownership interest 43 of more than five percent, whether direct or indirect, in each of the 44 corporations. 45 (2) Notwithstanding any contrary provision of law, in relation to any 46 transfer, distribution, or contribution of an aircraft or a vessel that 47 qualifies as a retail sale as a result of paragraph one of this subdivi- 48 sion, the sales tax imposed by subdivision (a) of section eleven hundred 49 five of this part shall be computed based on the price at which the 50 seller purchased the tangible personal property, provided that where the 51 seller or purchaser affirmatively shows that the seller owned the prop- 52 erty for six months prior to making the transfer, distribution or 53 contribution covered by paragraph one of this subdivision, such aircraft 54 or vessel shall be taxed on the basis of the current market value of the 55 aircraft or vessel at the time of that transfer, distribution, or 56 contribution. For the purposes of the prior sentence, "current marketA. 9053 3 1 value" shall not exceed the cost of the aircraft or vessel. See subdivi- 2 sion (b) of this section for a similar rule on the computation of any 3 compensating use tax due under section eleven hundred ten of this part 4 on such transfers, distributions, or contributions. 5 (3) A purchaser of an aircraft or a vessel covered by paragraph one of 6 this subdivision will be entitled to a refund or credit against the 7 sales or compensating use tax due as a result of a transfer, distrib- 8 ution, or contribution of such aircraft or vessel in the amount of any 9 sales or use tax paid to this state or any other state on the seller's 10 purchase or use of the aircraft or vessel so transferred, distributed or 11 contributed, but not to exceed the tax due on the transfer, distrib- 12 ution, or contribution of the aircraft or vessel or on the purchaser's 13 use in the state of the aircraft or vessel so transferred, distributed 14 or contributed. An application for a refund or credit under this subdi- 15 vision must be filed and shall be in such form as the commissioner may 16 prescribe. Where an application for credit has been filed, the applicant 17 may immediately take such credit on the return which is due coincident 18 with or immediately subsequent to the time the application for credit is 19 filed. However, the taking of the credit on the return shall be deemed 20 to be part of the application for credit. Provided that the commissioner 21 may, in his or her discretion and notwithstanding any other law, waive 22 the application requirement for any or all classes of persons where the 23 amount of the credit or refund is equal to the amount of the tax due 24 from the purchaser. The provisions of subdivisions (a), (b), and (c) of 25 section eleven hundred thirty-nine of this article shall apply to appli- 26 cations for refund or credit under this subdivision. No interest shall 27 be allowed or paid on any refund made or credit allowed under this 28 subdivision. If a refund is granted or a credit allowed under this para- 29 graph, the seller or purchaser shall not be eligible for a refund or 30 credit pursuant to subdivision seven of section eleven hundred eighteen 31 of this article with regard to the same purchase or use. 32 § 3. Paragraph 21-a of subdivision (a) of section 1115 of the tax law 33 is REPEALED. 34 § 4. This act shall take effect June 1, 2020.
