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

                                  4633

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              April 1, 2015
                               ___________

Introduced by Sen. MARCHIONE -- 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 eliminating sales tax on
  transportation services; and to repeal certain provisions of such  law
  relating thereto

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

  Section 1. Paragraph 34 of subdivision (b) of section 1101 of the  tax
law is REPEALED.
  S 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is
REPEALED.
  S 3. Subdivision (1) of section 1106 of the tax law is REPEALED.
  S 4. Subdivision (o) of section 1111 of the tax law is REPEALED.
  S  5.  Section 1213 of the tax law, as amended by section 2 of part WW
of chapter 57 of the laws of 2010, is amended to read as follows:
  S 1213. Deliveries outside the jurisdiction where sale is made.  Where
a  sale  of  tangible  personal  property or services, including prepaid
telephone calling services, but not including other  services  described
in  subdivision  (b)  of  section  eleven  hundred five of this chapter,
including an agreement therefor, is made in any city, county  or  school
district,  but  the  property sold, the property upon which the services
were performed or prepaid telephone calling or other service is or  will
be  delivered to the purchaser elsewhere, such sale shall not be subject
to tax by such city, county or school  district.  However,  if  delivery
occurs or will occur in a city, county or school district imposing a tax
on  the sale or use of such property, prepaid telephone calling or other
services, the vendor shall be required to collect from the purchaser, as
provided in section twelve  hundred  fifty-four  of  this  article,  the
aggregate  sales  or compensating use taxes imposed by the city, if any,
county and school district in which delivery occurs or will  occur,  for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02819-01-5
              

S. 4633                             2

distribution  by  the commissioner to such taxing jurisdiction or juris-
dictions. For the purposes of this section delivery shall be  deemed  to
include transfer of possession to the purchaser and the receiving of the
property or of the service, including prepaid telephone calling service,
by the purchaser. [Notwithstanding the foregoing, where a transportation
service  described in paragraph ten of subdivision (c) of section eleven
hundred five of this chapter begins in  one  jurisdiction  but  ends  in
another  jurisdiction, any tax imposed pursuant to the authority of this
article shall be due the jurisdiction or jurisdictions where the service
commenced.]
  S 6. This act shall take effect immediately and  shall  apply  to  the
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing September 1, 2017 and shall apply in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law.