NY State Senate Bill 2009-S671

Senate Bill S671

2009-2010 Legislative Session

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Jan 12, 2009	referred to investigations and government operations

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2009-S671 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L; amd Part L §2, Chap 60 of 2004
Versions Introduced in Other Legislative Sessions:: 2011-2012: S2678
2013-2014: S273
2015-2016: S815

2009-S671 (ACTIVE) - Summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof; makes permanent the sales and compensating use tax exemption for parts used exclusively to maintain, repair, overhaul or rebuild aircraft or services associated therewith.

2009-S671 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S671

 TITLE OF BILL :

An act to amend the tax law, in relation to providing an exemption
from sales and compensating use taxes for certain aircraft purchased
in the state; and to amend chapter 60 of the laws of 2004, amending
the tax law relating to exempting parts used exclusively to maintain,
repair, overhaul or rebuild aircraft or services associated therewith
from the sales and compensating use tax, in relation to eliminating
the expiration of the provisions thereof


 PURPOSE :

This bill would repeal the December 1, 2009 sunset of the sales tax
exemption on the maintenance, repair, overhaul or rebuilding of
aircraft and to exempt from sales and use taxes the purchase of
general aviation aircraft.

 SUMMARY OF PROVISIONS :

Section 1: Amends Tax Law section 1115(dd) by amending paragraph 1 to
exempt from sales and use taxation the purchase of general aviation
aircraft similar to the current exemption granted to commercial
service aircraft.

Section 2: The effective date provisions of the bill.

 EXISTING LAW :

There is currently no exemption for the sale of this type of
equipment.

 JUSTIFICATION :

Airports are one of the economic engines that fuel growth in the
communities that they serve,. The economic benefits of airports in
this state are quite large.

- Annual economic activity attributable to aviation is nearly $36
billion.
- Over 300,000 New York residents owe their jobs directly or
indirectly to airports. These jobs pay nearly $12 billion in payroll
on an annual basis.
- Airports and aviation industries pay over $2.7 billion in state and
local taxes each year.

New York air service is critical to the economic well being of this
state and to the traveling public. Airline commercial service is
provided at 18 airports located in urban and rural areas throughout
the state. In addition to commercial service airports, hundreds of
other general aviation airports are located throughout the state.
These airports provide services such as charter flights for businesses
and executives, quick access for medical emergencies and law
enforcement needs, flight training, and tourism & recreational flying.

This bill will make New York competitive with other states that
already exempt sales taxes related to aviation activities.
Connecticut, Massachusetts, New Jersey and New Hampshire are a few of
the regional states that exempt these aviation sales and use taxes.

Should New York exempt the purchase of general aviation aircraft, it
will further encourage existing aircraft maintenance facilities to
expand their operations. In addition, other companies would look to
New York to locate or relocate their operations within this state.
This would reduce the cost of providing services for other companies
that are located in New York. While this bill will reduce state
revenue by a relatively small amount, it will leverage significant
economic returns for local communities and the state.

 LEGISLATIVE HISTORY :

Similar to Senate Bill S.6114/A.9716 of 2004, S.3655-A of 2005/2006,
S.425-B of 2007/2008

 FISCAL IMPLICATIONS :

NYS Department of Taxation & Finance estimates that there will be some
loss in state and local sales taxes collected, however, state and
local governments will see an offset to this tax loss with an
increased amount of economic development, payroll taxes, property
taxes, and sales taxes in other ancillary services and increased fuel
tax collections from aircraft sales and maintenance.

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the December following the date it
becomes law.

2009-S671 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   671

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 12, 2009
                               ___________

Introduced  by  Sens.  LARKIN,  ALESI,  BONACIC,  FLANAGAN,  O. JOHNSON,
  LEIBELL, LITTLE, NOZZOLIO, VOLKER -- read twice and  ordered  printed,
  and  when  printed  to be committed to the Committee on Investigations
  and Government Operations

AN ACT to amend the tax law, in relation to providing an exemption  from
  sales and compensating use taxes for certain aircraft purchased in the
  state;  and  to amend chapter 60 of the laws of 2004, amending the tax
  law relating to exempting parts used exclusively to maintain,  repair,
  overhaul or rebuild aircraft or services associated therewith from the
  sales and compensating use tax, in relation to eliminating the expira-
  tion of the provisions thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subdivision (dd) of section 1115 of the  tax
law,  as added by section 1 of part L of chapter 60 of the laws of 2004,
is amended to read as follows:
  (1) Services otherwise taxable under paragraph  three  of  subdivision
(c)  of  section eleven hundred five or under section eleven hundred ten
of this article,  SALES  OF  GENERAL  AVIATION  AIRCRAFT,  and  tangible
personal  property  purchased  and  used  by  the  person who sells such
services in performing such services,  where  such  property  becomes  a
physical  component  part  of  the  property upon which the services are
performed or where such property is a  lubricant  applied  to  aircraft,
shall  be  exempt  from  tax  under this article where such services are
performed on aircraft.
  S 2. Section 2 of part L of chapter 60 of the laws of  2004,  amending
the  tax  law  relating to exempting parts used exclusively to maintain,
repair, overhaul or rebuild aircraft or  services  associated  therewith
from the sales and compensating use tax, is amended to read as follows:
  S  2.  This act shall take effect December 1, 2004, and shall apply to
sales made, services rendered and uses occurring on or after  that  date

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05313-01-9

S. 671                              2

in  accordance  with  the applicable transitional provisions of sections
1106 and 1217 of the tax law[, and shall expire and be  deemed  repealed
December  1,  2009];  the  commissioner of taxation and finance shall be
immediately  authorized  to adopt and amend any rules or regulations and
issue any procedure, forms or instructions necessary to  implement  this
act on its effective date; furthermore, the commissioner of taxation and
finance,  in  conjunction with the commissioner of transportation, shall
review and analyze all statistical data available for such  purposes  of
determining  the  economic  and  revenue impact of the sales and use tax
exemptions provided in this act; such report shall include, but  not  be
limited to, any increases in aviation related employment, airplane main-
tenance, and increases in hangaring in New York state; such report shall
be  transmitted,  ON OR BEFORE DECEMBER 1, 2010, to the governor, TEMPO-
RARY PRESIDENT OF THE senate [majority leader] and speaker of the assem-
bly.
  S 3. This act shall take effect immediately, except that  section  one
of  this  act shall take effect on the first of December next succeeding
the date on which it shall have become a law, and shall apply  to  sales
made,  services  rendered  and  uses  occurring on or after such date in
accordance with the applicable transitional provisions of sections  1106
and  1217  of  the  tax law; provided, however, that the commissioner of
taxation and finance shall be immediately authorized to adopt and  amend
any  rules or regulations and issue any procedure, forms or instructions
necessary to implement section one of this act on its effective date.

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