BILL NUMBER:  S836

 TITLE OF BILL :
An act to amend the tax law, in relation to exempting energy efficient
snow making equipment, ski lift equipment and snow grooming equipment,
and energy used to make snow from sales and compensating use tax


 PURPOSE OR GENERAL IDEA OF BILL :
This legislation, if enacted, would amend section 1115 of the Tax Law
to state the purchase of energy efficient snow making equipment, ski
lift equipment, snow grooming equipment, and the production of snow by
a recreational ski facility are exempt from the New York State sales
and compensating use tax.

 SUMMARY OF SPECIFIC PROVISIONS :
Amends section 1115 of the Tax Law and adds a new paragraph (43) and a
new subdivision (gg) which includes the production of snow as well as
the equipment to transport skiers uphill and to groom snow by any
recreational ski area from the NYS sales and compensating use tax.

 JUSTIFICATION :
New York State ranks fifth in the nation in skier visits per year
despite the fact that the state is the second highest when compared to
the percentage of their population that skis. New York State currently
exports a number of skiers and their families to the New England
              

states. In order to remain competitive with our neighbors to the east
which aggressively campaigns for our skiers and those whom visit New
York, this state needs to upgrade equipment and maintain state of the
art snowmaking systems, and this legislation will greatly assist them
in the purchase of new equipment and upgrading of snowmaking systems.

The ski industry employs over 10,000 New York State residents serving
on average 4 million skier visits per year with an economic impact of
Over $1 billion. With Over 40 ski areas, New York State has more ski
areas than any other state with over $4.8 million in sales tax paid
each year. Local property taxes paid amount to over $3.5 million.
Snow making is critical to the ski industry and this legislation will
provide energy tax relief which is one of the highest expenses faced
each winter season.

The three state owned ski areas in New York State are exempt from the
state sales tax while privately owned ski areas are not. This has
created an unfair business environment for these privately owned ski
areas, many of which are located in upstate New York. This bill would
provide that all ski areas that purchase energy efficient snow making
equipment and make snow shall be exempt from this tax. The fuel, gas,
electricity, and refrigeration, and gas, electric, and refrigeration
services used directly for the production of snow would now be exempt
from the state sales tax as will the energy efficient equipment. The
manufacture of snow is not eligible for a tax exemption under the
definition of manufacturing because snow is not sold as a product.
The climate and business environment has changed such that ski areas
must make snow to remain viable in this industry.

This legislation would eliminate the sales tax on the purchase of
qualifying energy efficient lift and grooming equipment. New safer
equipment to transport skiers has become available that will move more
people with less energy and manpower required. Grooming equipment is
powered by diesel fuel, and advancements in such technology has made
the newer machines much more energy efficient with less emissions and
more horsepower. Wisconsin, Minnesota, Utah and Colorado have enacted
similar laws that apply not only to the purchase of new energy
efficient equipment but also for the use and compensating tax on
snowmaking energy.

 PRIOR LEGISLATIVE HISTORY :
2008: S.2343-A; A.5392-A Ways & Means
2007: S.2343 Passed Senate; A.5392 Ways & Means
2005-06: S.720 Passed Senate; A.7995 Ways &Means

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.