NY State Senate Bill 2013-S3281A

Senate Bill S3281A

2013-2014 Legislative Session

Grants sales and use tax exemption for certain tangible personal property and services used in the operation of recreational skiing facilities

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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 17, 2014	print number 3281a
Jan 17, 2014	amend and recommit to investigations and government operations
Jan 08, 2014	referred to investigations and government operations
Jan 31, 2013	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2013-S3281 - Details

See Assembly Version of this Bill:: A2145
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6266, A9991
2015-2016: S1683, A7012
2017-2018: S2645, A6622
2019-2020: S1964

2013-S3281 - Summary

Grants sales and use tax exempt for certain tangible personal property and services used in the operation of recreational skiing facilities.

2013-S3281 - Sponsor Memo

                                BILL NUMBER:S3281

TITLE  OF BILL:   An act to amend the tax law, in relation to granting
sales  and  compensating  use  tax  exemptions  for  certain  tangible
personal  property  and services used in the operation of recreational
skiing facilities

PURPOSE:  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 PROVISIONS:

Section 1 - Amends subdivision (a) of section 1115 of the tax  law  by
adding  paragraph  (44)  to  exempt  the  production  of  snow, uphill
transportation of skiers. and/or the grooming and maintenance of  snow
from sales and compensating use tax.

Section  2  -  Amends  section  1115  of  the  tax law by adding a new
subdivision (ii) to exempt the production  of  snow  as  well  as  the
equipment  to  transport  skiers  uphill  and  to  groom  snow  by any
recreational ski area from sales and compensating use tax.

Section 3 - Contains the effective Date.

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 S4.8 million in  sales  tax  paid
each year. Local property taxes paid amount to over S3.5 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.

LEGISLATIVE  HISTORY:   2011-12 S.6266 Passed Senate; A. 9991 Referred
to   Ways   &   Means   2009-10:   S.836   Referred   to   Energy    &
Telecommunications; A. 519 Referred to Ways & Means 2008: S.2343-A; A.
5392-A Ways &s. 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 on the first of July next
succeeding the date on which it shall have become a law.

2013-S3281 - Bill Text download pdf

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

                                  3281

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to granting sales  and  compen-
  sating  use  tax exemptions for certain tangible personal property and
  services used in the operation of recreational skiing facilities

  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) ENERGY EFFICIENT TANGIBLE PERSONAL PROPERTY  OF  WHATEVER  NATURE
FOR  USE  OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN THE PRODUCTION
OF SNOW; (II) IN THE UPHILL TRANSPORTATION OF SKIERS; OR  (III)  IN  THE
GROOMING  AND  MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS
OF OPERATING A RECREATIONAL FACILITY FOR SKIING.
  S 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
sion (ii) to read as follows:
  (II)  FUEL,  GAS, ELECTRICITY AND REFRIGERATION, AND GAS, ELECTRIC AND
REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY
AND EXCLUSIVELY IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED  IN  THE
BUSINESS  OF  OPERATING  A  RECREATIONAL  FACILITY  FOR SKIING, SHALL BE
EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF  SECTION
ELEVEN  HUNDRED  FIVE AND THE COMPENSATING USE TAX IMPOSED UNDER SECTION
ELEVEN HUNDRED TEN OF THIS ARTICLE.
  S 3. This act shall take effect on the first of July  next  succeeding
the date on which it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01201-01-3

2013-S3281A (ACTIVE) - Details

See Assembly Version of this Bill:: A2145
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6266, A9991
2015-2016: S1683, A7012
2017-2018: S2645, A6622
2019-2020: S1964

2013-S3281A (ACTIVE) - Summary

Grants sales and use tax exempt for certain tangible personal property and services used in the operation of recreational skiing facilities.

2013-S3281A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3281A

TITLE OF BILL:  An act to amend the tax law, in relation to granting
sales and compensating use tax exemptions for certain tangible personal
property and services used in the operation of recreational skiing
facilities

PURPOSE:

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 PROVISIONS:

Section 1 - Amends subdivision (a) of section 1115 of the tax law by
adding paragraph (44) to exempt the production of snow, uphill transpor-
tation of skiers and/or the grooming and maintenance of snow from sales
and compensating use tax.

Section 2 - Amends section 1115 of the tax law by adding a new subdivi-
sion (jj)to exempt the production of snow as well as the equipment to
transport skiers uphill and to groom snow by any recreational ski area
from sales and compensating use tax.

Section 3 - Contains the effective Date.

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 defi-
nition 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 quali-
fying 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 horse-
power. 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.

LEGISLATIVE HISTORY:  2011-12 S.6266 Passed Senate; A.9991 Referred to
Ways & Means
2009-10: S.836 Referred to Energy & Telecommunications; A. 519 Referred
to Ways & Means
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 on the first of July next succeeding the date
on which it shall have become a law.

2013-S3281A (ACTIVE) - Bill Text download pdf

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

                                 3281--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the tax law, in relation to granting sales and compen-
  sating use tax exemptions for certain tangible personal  property  and
  services used in the operation of recreational skiing facilities

  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)  ENERGY  EFFICIENT  TANGIBLE PERSONAL PROPERTY OF WHATEVER NATURE
FOR USE OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN  THE  PRODUCTION
OF  SNOW;  (II)  IN THE UPHILL TRANSPORTATION OF SKIERS; OR (III) IN THE
GROOMING AND MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN  THE  BUSINESS
OF OPERATING A RECREATIONAL FACILITY FOR SKIING.
  S  2.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (jj) to read as follows:
  (JJ) FUEL, GAS, ELECTRICITY AND REFRIGERATION, AND GAS,  ELECTRIC  AND
REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY
AND  EXCLUSIVELY  IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED IN THE
BUSINESS OF OPERATING A  RECREATIONAL  FACILITY  FOR  SKIING,  SHALL  BE
EXEMPT  FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF SECTION
ELEVEN HUNDRED FIVE AND THE COMPENSATING USE TAX IMPOSED  UNDER  SECTION
ELEVEN HUNDRED TEN OF THIS ARTICLE.
  S  3.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01201-02-4

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