S T A T E   O F   N E W   Y O R K
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                                  1325

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by M. of A. ORTIZ, PEOPLES-STOKES, BOYLAND, SCHROEDER, JAFFEE
  --  Multi-Sponsored  by  --  M. of A. BROOK-KRASNY, MAISEL, MAYERSOHN,
  SWEENEY, TOWNS, WEISENBERG -- read once and referred to the  Committee
  on Ways and Means

AN  ACT to amend the tax law, in relation to exempting medical equipment
  and supplies purchased by a health care facility located in an  empire
  zone from the sales and compensating use tax

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

  Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
by adding a new paragraph 44 to read as follows:
  (44)  (I)  MEDICAL EQUIPMENT AND MEDICAL SUPPLIES PURCHASED FOR USE BY
HEALTH CARE FACILITIES THAT SERVE UNINSURED PATIENTS LOCATED IN AN  AREA
DESIGNATED  AS  AN  EMPIRE  ZONE  PURSUANT  TO ARTICLE EIGHTEEN-B OF THE
GENERAL MUNICIPAL LAW. SUCH EXEMPTION SHALL  APPLY  TO  THE  FIRST  FIVE
HUNDRED  THOUSAND  DOLLARS  OF  MEDICAL  EQUIPMENT  AND MEDICAL SUPPLIES
PURCHASED BY THE TAXPAYER.
  (II) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL  HAVE
THE FOLLOWING MEANINGS:
  (A)  "MEDICAL EQUIPMENT" SHALL MEAN DURABLE MEDICAL EQUIPMENT THAT CAN
BE USED REPEATEDLY AND THAT SERVES A MEDICAL PURPOSE IN  THE  DIAGNOSIS,
TREATMENT OR CARE OF AN INDIVIDUAL;
  (B)  "MEDICAL SUPPLIES" SHALL MEAN ITEMS THAT ARE CONSUMABLE, EXPENDA-
BLE, DISPOSABLE OR NONDURABLE, AND THAT SERVE A MEDICAL PURPOSE  IN  THE
DIAGNOSIS, TREATMENT OR CARE OF AN INDIVIDUAL; AND
  (C) "HEALTH CARE FACILITY" SHALL MEAN A HOSPITAL AS DEFINED IN ARTICLE
TWENTY-EIGHT OF THE PUBLIC HEALTH LAW.
  S  2. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, next commencing at least sixty  days  after  this  act  shall  have

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

                                                           LBD04093-01-1

A. 1325                             2

become  law  and  shall  apply in accordance with the applicable transi-
tional provisions of sections 1106 and 1217 of the  tax  law;  provided,
further,  that the commissioner of taxation and finance shall be author-
ized  on  and  after  the  date this act shall have become a law to take
steps necessary to implement the provisions of this act on its effective
date.