BILL NUMBER:S1553

TITLE OF BILL:  An act to amend the tax law, in relation to granting a
sales and compensating use tax exemption for goods sold at school book
fairs

PURPOSE:  This bill provides that books, magazines, pamphlets and
other items sold at school sponsored book fairs shall be exempt from
the collection of sales taxes.

SUMMARY OF PROVISIONS:

Section 1: Adds a new Tax Law section 1115(a) (44) to exempt from the
collection of sales taxes items such as books, magazines, and other
items sold at a school or library sponsored hook fair such as, science
project kits and posters. The book fair would need to he conducted at
a primary or secondary school or library and be sponsored by a
parent-teacher association or organization or at a location sponsored
by a library friends group or foundation.

EXISTING LAW: None.

JUSTIFICATION:  School book fairs are generally conducted by
school-based volunteer organizations that are not sophisticated in
organization and in ascertaining the proper sales tax on low cost
items such as books and other book sale items. Compounding the
              

confusion of such sales transactions is the high number of customers
who are excited children under the age of 12 who are concentrated in a
school hallway or class room (where the sales are generally
conducted). To simplify book transactions at such book or library
fairs, eliminating the sales tax would reduce the time needed to
arrive at the final sales price for the books purchased. In addition,
many times, children at such fairs, are allocated a set monetary sum
to purchase their books.  However, in arriving at the cashier, the
child has not computed the additional sales tax cost, hence, the child
is over budget and needs to select and return one of the items before
conducting the final sale. This adds additional confusion to an
already confusing situation.

This bill would simplify the conduct of school book and library fairs.
Further, it would encourage children to purchase more books, heighten
their exposure to books and learning, and minimize administrative
burdens placed on those volunteers that conduct book fairs.

LEGISLATIVE HISTORY:  2011-12 5.1260; 2009-10 S.2465; 2007-08,
S.1722-A; 2005-06, S.1633.

FISCAL IMPLICATIONS: Minimal.

LOCAL FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE:  The first of July next succeeding the date on which
this bill shall have become law.