Bill Text: NY S04949 | 2023-2024 | General Assembly | Introduced
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 structures to improve energy efficiency; defines relevant terms; authorizes municipalities to adopt the exemption.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S04949 Detail]
Download: New_York-2023-S04949-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4949 2023-2024 Regular Sessions IN SENATE February 17, 2023 ___________ Introduced by Sen. PARKER -- 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 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 18 department of energy; and (iii) tangible personal property that improves 19 the energy efficiency of residential and non-residential heating and 20 cooling systems, including but not limited to, insulation and weather EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06345-01-3S. 4949 2 1 stripping and products, such as roofing, windows, doors and skylights 2 approved by the Energy Star program. 3 § 2. Subdivision (a) of section 1115 of the tax law is amended by 4 adding a new paragraph 47 to read as follows: 5 (47) Alternative energy systems, new Energy Star appliances and tangi- 6 ble personal property used in or on habitable residential and non-resi- 7 dential structures for the purpose of improving the energy efficiency of 8 such structures, as defined in paragraph thirty-nine of subdivision (b) 9 of section eleven hundred one of this article. 10 § 3. Clause 9 of subdivision (b) of section 1107 of the tax law, as 11 amended by section 78 of part A of chapter 56 of the laws of 1998, is 12 amended to read as follows: 13 (9) Except as otherwise provided by law, the [exemption] exemptions 14 provided for in paragraph thirty of subdivision (a) of section eleven 15 hundred fifteen of this article relating to clothing and footwear and 16 paragraph forty-seven of subdivision (a) of section eleven hundred 17 fifteen of this article relating to alternative energy systems shall not 18 apply. 19 § 4. Subdivision (f) of section 1109 of the tax law, as added by 20 section 118-a of part A of chapter 389 of the laws of 1997, is amended 21 to read as follows: 22 (f) The [exemption] exemptions contained in [paragraph] paragraphs 23 thirty and forty-seven of subdivision (a) of section eleven hundred 24 fifteen of this article shall not apply. 25 § 5. Section 1109 of the tax law is amended by adding a new subdivi- 26 sion (i) to read as follows: 27 (i) Notwithstanding any other provision of state or local law, ordi- 28 nance or resolution to the contrary: (1) In the event that a county, 29 city or school district located in the metropolitan commuter transporta- 30 tion district imposes taxes pursuant to the authority of subpart B of 31 part I of article twenty-nine of this chapter and elects to provide the 32 alternative energy systems exemption authorized in paragraph one of 33 subdivision (a) of section twelve hundred ten of this chapter, or a city 34 located in such district in which the taxes provided for in section 35 eleven hundred seven of this part are in effect elects to provide such 36 alternative energy systems exemption from such taxes pursuant to the 37 authority of subdivision (p) of section twelve hundred ten of this chap- 38 ter, or the taxes provided for in section eleven hundred eight of this 39 part are in effect in a city located in such district, the exemption 40 provided by paragraph forty-seven of subdivision (a) of section eleven 41 hundred fifteen of this article shall be applicable in such portion of 42 the metropolitan commuter transportation district in which such county, 43 city or school district is located. The commissioner shall determine and 44 certify to the comptroller the amount of revenue forgone at the rate of 45 one-quarter of one percent under this section in such county, city or 46 school district on account of sales of alternative energy systems in 47 such county, city or school district. 48 (2) Commencing with the sales tax quarterly period which commences on 49 June first, two thousand twenty-three, the commissioner shall make such 50 determinations and certifications on the twelfth day of the month 51 following the month in which sales tax quarterly returns are due under 52 section eleven hundred thirty-six of this article with respect to such 53 quarterly period for as long as such alternative energy systems 54 exemptions from such taxes imposed pursuant to the authority of article 55 twenty-nine of this chapter or by section eleven hundred seven or eleven 56 hundred eight of this part are in effect. Neither the commissioner norS. 4949 3 1 the comptroller shall be held liable for any inaccuracy in such determi- 2 nations and certifications. Such determinations and certifications may 3 be based on such information as may be available to the commissioner at 4 the time such determinations and certifications must be made under this 5 subdivision and may be estimated on the basis of percentages or other 6 indices calculated from distributions from prior periods. The commis- 7 sioner shall be authorized to require such information as the commis- 8 sioner deems necessary to comply with the requirements of this subdivi- 9 sion from persons required to file returns under section eleven hundred 10 thirty-six of this article. 11 (3) By the fifteenth day of the month in which the commissioner has 12 made the certifications to the comptroller described in paragraph two of 13 this subdivision, the comptroller shall bill any county, city or school 14 district in such metropolitan commuter transportation district which 15 provides such alternative energy systems exemption, and any city in such 16 district in which the taxes imposed by section eleven hundred seven of 17 this part are in effect which has elected to provide such alternative 18 energy systems exemption, and any city in such district in which the 19 taxes imposed by section eleven hundred eight of this part are in 20 effect, an amount equal to one-half of the amount certified to the comp- 21 troller by the commissioner in respect of such county, city or school 22 district; and such county, city or school district shall pay the amount 23 of such bill to the comptroller by the twenty-fifth day of such month. 24 The comptroller shall deposit any such amounts received in the mass 25 transportation operating assistance fund established by section eighty- 26 eight-a of the state finance law to the credit of the metropolitan mass 27 transportation operating assistance account therein. 28 (4) In the event that a county, city or school district imposing tax 29 pursuant to the authority of subpart B of part I of article twenty-nine 30 of this chapter does not pay in full a bill described in paragraph three 31 of this subdivision by the twenty-fifth day of the month described in 32 paragraphs two and three of this subdivision, the comptroller shall 33 deduct any amount not paid from the amount of the next payment or 34 payments due such county, city or school district pursuant to subdivi- 35 sion (c) of section twelve hundred sixty-one of this chapter until such 36 amount not paid has been recovered. The comptroller shall deposit the 37 amounts so deducted and recovered in the mass transportation operating 38 assistance fund to be credited as provided in paragraph three of this 39 subdivision. 40 (5) In the event that a city in which the taxes imposed by section 41 eleven hundred seven of this part are in effect does not pay in full a 42 bill described in paragraph three of this subdivision by the twenty- 43 fifth day of the month described in paragraphs two and three of this 44 subdivision, the comptroller shall deduct any amount not paid from the 45 amount of the next payment or payments due such city, with respect to 46 taxes, penalty and interest imposed pursuant to the authority of section 47 twelve hundred twelve-a of this chapter, pursuant to subdivision (c) of 48 section twelve hundred sixty-one of this chapter, until such amount not 49 paid has been recovered. The comptroller shall deposit the amounts so 50 deducted and recovered in the mass transportation operating assistance 51 fund to be credited as provided in paragraph three of this subdivision. 52 (6) In the event that a city in which the taxes imposed by section 53 eleven hundred eight of this part are in effect does not pay in full a 54 bill described in paragraph three of this subdivision by the twenty- 55 fifth day of the month described in paragraphs two and three of this 56 subdivision, the comptroller shall deduct any amount not paid from theS. 4949 4 1 amount of any other moneys due such city from the comptroller, not 2 otherwise pledged, dedicated or encumbered pursuant to other state law, 3 until such amount not paid has been recovered. The comptroller shall 4 deposit the amounts so deducted and recovered in the mass transportation 5 operating assistance fund to be credited as provided in paragraph three 6 of this subdivision. 7 (7) The commissioner shall certify the amount of any over calculation 8 or under calculation of any certification required to be made to the 9 comptroller under paragraph three of this subdivision as soon after its 10 discovery as reasonably possible and subsequent bills to a city, county 11 or school district to which the over calculation or under calculation 12 relates shall be adjusted accordingly, provided that the comptroller may 13 adjust such number of subsequent bills as the comptroller shall consider 14 reasonable in view of the amount of the adjustment and all other facts 15 and circumstances. 16 (8) On the same date that the comptroller is required to bill a coun- 17 ty, city or school district an amount as provided in paragraph three of 18 this subdivision, the comptroller shall, after having first made any 19 deposits required by section ninety-two-r of the state finance law and 20 only to the extent that there are moneys remaining after having made 21 such required deposits, withdraw from the state treasury, to the debit 22 of the general fund, an amount equal to the total of the amounts 23 required to be billed to counties, cities and school districts pursuant 24 to such paragraph three and deposit such total amount in the mass trans- 25 portation operating assistance fund to be credited as provided in such 26 paragraph three. The amount of any over calculation or under calculation 27 determined in paragraph seven of this subdivision shall likewise be 28 applied to the amounts required to be deposited under this paragraph, so 29 that the amounts deposited under this paragraph equal the total of the 30 amounts required to be billed to counties, cities and school districts 31 under such paragraph three, as adjusted, pursuant to paragraph seven of 32 this subdivision. 33 § 6. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 34 1210 of the tax law, as amended by section 5 of part J of chapter 59 of 35 the laws of 2021, is amended to read as follows: 36 (ii) Any local law, ordinance or resolution enacted by any city, coun- 37 ty or school district, imposing the taxes authorized by this subdivi- 38 sion, shall omit the residential solar energy systems equipment and 39 electricity exemption provided for in subdivision (ee), the commercial 40 solar energy systems equipment and electricity exemption provided for in 41 subdivision (ii), the commercial fuel cell electricity generating 42 systems equipment and electricity generated by such equipment exemption 43 provided for in subdivision (kk) and the clothing and footwear exemption 44 provided for in paragraph thirty of subdivision (a) of section eleven 45 hundred fifteen of this chapter and the alternative energy systems 46 exemption provided for in paragraph forty-seven of subdivision (a) of 47 section eleven hundred fifteen of this chapter, unless such city, county 48 or school district elects otherwise as to such residential solar energy 49 systems equipment and electricity exemption, such commercial solar ener- 50 gy systems equipment and electricity exemption, commercial fuel cell 51 electricity generating systems equipment and electricity generated by 52 such equipment exemption or such clothing and footwear exemption. 53 § 7. Subdivision (d) of section 1210 of the tax law, as amended by 54 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 55 read as follows:S. 4949 5 1 (d) A local law, ordinance or resolution imposing any tax pursuant to 2 this section, increasing or decreasing the rate of such tax, repealing 3 or suspending such tax, exempting from such tax the energy sources and 4 services described in paragraph three of subdivision (a) or of subdivi- 5 sion (b) of this section or changing the rate of tax imposed on such 6 energy sources and services or providing for the credit or refund 7 described in clause six of subdivision (a) of section eleven hundred 8 nineteen of this chapter, or electing or repealing the exemption for 9 residential solar equipment and electricity in subdivision (ee) of 10 section eleven hundred fifteen of this article, or the exemption for 11 commercial solar equipment and electricity in subdivision (ii) of 12 section eleven hundred fifteen of this article, or electing or repealing 13 the exemption for commercial fuel cell electricity generating systems 14 equipment and electricity generated by such equipment in subdivision 15 (kk) of section eleven hundred fifteen of this article must go into 16 effect only on one of the following dates: March first, June first, 17 September first or December first; provided, that a local law, ordinance 18 or resolution providing for the exemption described in paragraph thirty 19 or forty-seven of subdivision (a) of section eleven hundred fifteen of 20 this chapter or repealing any such exemption or a local law, ordinance 21 or resolution providing for a refund or credit described in subdivision 22 (d) of section eleven hundred nineteen of this chapter or repealing such 23 provision so provided must go into effect only on March first. No such 24 local law, ordinance or resolution shall be effective unless a certified 25 copy of such law, ordinance or resolution is mailed by registered or 26 certified mail to the commissioner at the commissioner's office in Alba- 27 ny at least ninety days prior to the date it is to become effective. 28 However, the commissioner may waive and reduce such ninety-day minimum 29 notice requirement to a mailing of such certified copy by registered or 30 certified mail within a period of not less than thirty days prior to 31 such effective date if the commissioner deems such action to be consist- 32 ent with the commissioner's duties under section twelve hundred fifty of 33 this article and the commissioner acts by resolution. Where the 34 restriction provided for in section twelve hundred twenty-three of this 35 article as to the effective date of a tax and the notice requirement 36 provided for therein are applicable and have not been waived, the 37 restriction and notice requirement in section twelve hundred twenty- 38 three of this article shall also apply. 39 § 8. Section 1210 of the tax law is amended by adding a new subdivi- 40 sion (p) to read as follows: 41 (p) Notwithstanding any other provision of state or local law, ordi- 42 nance or resolution to the contrary: 43 (1) Any city having a population of one million or more in which the 44 taxes imposed by section eleven hundred seven of this chapter are in 45 effect, acting through its local legislative body, is hereby authorized 46 and empowered to elect to provide the exemption from such taxes for the 47 same alternative energy systems exempt from state sales and compensating 48 use taxes described in paragraph forty-seven of subdivision (a) of 49 section eleven hundred fifteen of this chapter by enacting a resolution 50 exactly in the form set forth in paragraph two of this subdivision; 51 whereupon, upon compliance with the provisions of subdivisions (d) and 52 (e) of this section, such enactment of such resolution shall be deemed 53 to be an amendment to such section eleven hundred seven and such section 54 eleven hundred seven shall be deemed to incorporate such exemption as if 55 it had been duly enacted by the state legislature and approved by the 56 governor.S. 4949 6 1 (2) Form of Resolution: Be it enacted by the (insert proper title of 2 local legislative body) as follows: 3 Section one. Receipts from sales of and consideration given or 4 contracted to be given for, or for the use of, alternative energy 5 systems exempt from state sales and compensating use taxes pursuant to 6 paragraph forty-seven of subdivision (a) of section 1115 of the New York 7 tax law shall also be exempt from sales and compensating use taxes 8 imposed in this jurisdiction. 9 Section two. This resolution shall take effect March 1, (insert the 10 year, but not earlier than the year 2024) and shall apply to sales made 11 and uses occurring on or after such date in accordance with the applica- 12 ble transitional provisions of sections 1106 and 1217 of the New York 13 tax law. 14 § 9. Notwithstanding any other provision of state or local law, ordi- 15 nance or resolution to the contrary: (a) Any county or city imposing 16 sales and compensating use taxes pursuant to the authority of subpart B 17 of part 1 of article 29 of the tax law, acting through its local legis- 18 lative body, is hereby authorized and empowered to elect to provide the 19 exemption from such taxes for alternative energy systems exempt from 20 state sales and compensating use taxes described in paragraph 45 of 21 subdivision (a) of section 1115 of the tax law, whether such taxes are 22 imposed by local law, ordinance or resolution, by enacting a resolution 23 exactly in the form set forth in subdivision (c) of this section; where- 24 upon, upon compliance with the provisions of subdivision (d) of this 25 section, such enactment of such resolution shall be deemed to amend such 26 local law, ordinance or resolution imposing such taxes, and such local 27 law, ordinance or resolution shall thenceforth be deemed to incorporate 28 such exemption. 29 (b) Any city of one million or more in which the taxes imposed by 30 section 1107 of the tax law are in effect, acting through its local 31 legislative body, is hereby authorized and empowered to elect to provide 32 the exemption from such taxes for the same alternative energy systems 33 exempt from state sales and compensating use taxes described in para- 34 graph 45 of subdivision (a) of section 1115 of the tax law by enacting a 35 resolution exactly in the form set forth in subdivision (c) of this 36 section; whereupon, upon compliance with the provisions of subdivision 37 (d) of this section, such enactment of such resolution shall be deemed 38 to amend such section 1107 of the tax law and such section 1107 shall 39 thenceforth be deemed to incorporate such exemption as if it had been 40 duly enacted by the state legislature and approved by the governor and 41 such resolution shall also be deemed to amend any local law, ordinance 42 or resolution enacted by such a city imposing such taxes pursuant to the 43 authority of subdivision (a) of section 1210 of the tax law, whether or 44 not such taxes are suspended at the time such city enacts its resol- 45 ution. 46 (c) Form of Resolution: 47 Be it enacted by the (insert proper title of local legislative body) 48 as follows: 49 Section one: The (county or city) of (insert locality's name) hereby 50 elects the alternative energy systems exemption commencing in January of 51 2024. 52 Section two: This resolution shall take effect immediately and shall 53 apply to sales made and uses occurring on or after such date, in accord- 54 ance with applicable transitional provisions of the New York tax law. 55 (d) A resolution adopted pursuant to this section shall be effective 56 only if it is adopted exactly as set forth in subdivision (c) of thisS. 4949 7 1 section and such county or city adopts it by December 31, 2023, mails a 2 certified copy of it to the commissioner of taxation and finance by 3 certified mail by such date and otherwise complies with the requirements 4 of subdivisions (d) and (e) of section 1210 of the tax law. 5 § 10. This act shall take effect immediately and shall expire and be 6 deemed repealed two years after such date and shall apply to sales made 7 and uses occurring during exemption periods on or after that date in 8 accordance with the applicable transitional provisions of sections 1106 9 and 1217 of the tax law.
