NY State Senate Bill 2015-S815

Senate Bill S815

2015-2016 Legislative Session

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft and for a report on the economic impact thereof

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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 06, 2016	referred to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

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2015-S815 (ACTIVE) - Details

See Assembly Version of this Bill:: A3431
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1115, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S671, S4551, A5960
2011-2012: S2678, A4818
2013-2014: S273, A3677

2015-S815 (ACTIVE) - Summary

Provides for an exemption from sales and use taxes on the sale of general aviation aircraft.

2015-S815 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S815

TITLE OF BILL:

An act to amend the tax law, in relation to exempting from sales and
compensating use taxes the purchase of general aviation aircraft; and
providing for the repeal of certain provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish a 5-year pilot program to exempt from sales
and use taxes the purchase of general aviation aircraft for a limited
time and require a study be conducted by the commissioner of taxation
and finance as to the economic and revenue impacts of the exemption.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Titles the act the "New York Aviation Jobs Act."

§ 2- Amends Tax Law § 1115 (dd) by amending paragraph 1 to exempt from
sales and use taxation the purchase of general aviation aircraft
similar to the current exemption granted to commercial service
aircraft.

§ 3- Requires a study be conducted by the commissioner of taxation and
finance as to the economic and revenue impacts of the exemption to be

submitted on or after November 1, 2020, to the Governor, temporary
president of the senate and the speaker of the assembly.

§ 4- Effective date is April 1, 2016 and shall apply to all sales of
general aviation aircraft on or after that date and until March 31,
2021.

JUSTIFICATION:

Airports are among the economic engines that fuel growth in the
economy of the state and in the communities which they serve. The
economic benefits of airports in this state are quite impressive.
Annual economic activity attributable to aviation is $50 billion. The
aviation sector employs more than 394,500 state residents and
generates $18 billion in payroll and $4.5 billion in State and local
tax revenue annually.

This bill will make New York competitive with other states that
already exempt sales taxes related to the purchase of general aviation
aircraft. Connecticut, Massachusetts, New Jersey, Maine and New
Hampshire are a few of the regional states that exempt these aviation
purchases from sales and use taxes or provide more favorable tax
treatment. NY has lost 700 such aircraft over a ten-year period since
2002.

Therefore, this bill establishes a 5-year tax exemption pilot program,
similar to what was successfully enacted to exempt maintenance and
repair of general aviation aircraft from the sales and use tax several
years ago. A NY Tax Department report-A Review of the Sales and Use
Tax Exemption for Private Aircraft Parts and Service-on that exemption
found that, since its enactment in 2004, New York has attracted


significant investment in aviation services, resulting in an expansion
of aviation maintenance and repair businesses, the creation of jobs
here in New York and an increase in state tax revenue. (FAA data
indicates the establishment of 23 such major aviation maintenance and
repair businesses and 686 new jobs in the state since 2004).

By adopting a 5 year exemption pilot program for the purchase of
general aviation aircraft, New York will encourage such aircraft and
business jets to locate here. Like the maintenance and repair
exemption, an exemption for the purchase of aircraft is expected to
increase state revenues and leverage significant economic returns for
local communities and the state.

LEGISLATIVE HISTORY:

2005-2006: S.3655 - Passed Senate/A.6819-A - Ways & Means
2007-2008: S.425-B - Passed Senate/A.3806-B - Ways & Means
2009-2010: S.4551-A - Investigations & Government Operations/A.5960 -
Ways & Means
2011-2012: S.2678 - Passed Senate/A.4818 - Ways & Means
2013-2014: S.273-B - Passed Senate/A.3677-B - Ways & Means

FISCAL IMPLICATIONS:

Estimated reduction of $7 million annually (a clear indication that
there is barely any new aircraft sales and basings activities
happening in New York) will be more than offset by increases in
economic activity, jobs and state and local tax revenue (the impact of
each business aircraft on average is 5 on airport jobs and $1 million
of economic activity according to DOT). The economic development
benefits at airports will generate payroll taxes, property taxes, and
sales taxes in other ancillary services and increased fuel tax
collections from the expected increase of in-state basing of general
aviation aircraft and the resulting increase in aviation activity.

EFFECTIVE DATE:

This act shall take effect April 1, 2016, and shall apply to sales of
general aviation aircraft made and uses occurring on or after that
date in accordance with the applicable transitional provisions of
section 1106 and 1107 of the tax law, but shall not apply to sales
occurring after March 31, 2021, and section one of this act shall
expire and be deemed repealed April 1, 2021. Provided, however, that
aircraft subject to exemption pursuant to paragraph 1 of subdivision
(dd) of section 1115 of the tax law, as amended by section two of this
act, shall remain so exempt after the expiration and repeal of section
two of this act, including instances where the aircraft is
subsequently sold or the ownership is transferred or assigned, for the
useful life of the aircraft.

2015-S815 (ACTIVE) - Bill Text download pdf

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

                                   815

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  BOYLE  -- 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  exempting  from  sales  and
  compensating  use taxes the purchase of general aviation aircraft; and
  providing for the repeal of certain provisions upon expiration thereof

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York aviation jobs act".
  S 2. Paragraph 1 of subdivision (dd) of section 1115 of the  tax  law,
as  added  by  section 1 of part L of chapter 60 of the laws of 2004, is
amended to read as follows:
  (1) Services otherwise taxable under paragraph  three  of  subdivision
(c)  of  section eleven hundred five or under section eleven hundred ten
of this article,  SALES  OF  GENERAL  AVIATION  AIRCRAFT,  and  tangible
personal  property  purchased  and  used  by  the  person who sells such
services in performing such services,  where  such  property  becomes  a
physical  component  part  of  the  property upon which the services are
performed or where such property is a  lubricant  applied  to  aircraft,
shall  be  exempt  from  tax  under this article where such services are
performed on aircraft.
  S 3. The commissioner of taxation and finance, in conjunction with the
commissioner of transportation, shall review and analyze all statistical
data available for the purpose of determining the economic  and  revenue
impact  of  the sales and compensating use tax exemption for the sale of
general aviation aircraft enacted by  section  two  of  this  act.  Such
review  and analysis shall include, but not be limited to, any increases
in aviation-related employment, aircraft  basing,  aircraft  maintenance
and  aircraft hangering within the state. The commissioner shall compile

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

                                                           LBD06332-01-5

S. 815                              2

his or her findings into a report,  which  shall  be  submitted,  on  or
before November 1, 2020, to the governor, the temporary president of the
senate and the speaker of the assembly.
  S  4.  This  act  shall  take effect April 1, 2016, and shall apply to
sales of general aviation aircraft made and uses occurring on  or  after
such  effective  date  in  accordance  with  the applicable transitional
provisions of sections 1106 and 1107 of the tax law, but shall not apply
to sales occurring after March 31, 2021, and section  two  of  this  act
shall  expire  and be deemed repealed April 1, 2021.  Provided, however,
that aircraft subject to exemption pursuant to paragraph 1  of  subdivi-
sion  (dd)  of section 1115 of the tax law, as amended by section two of
this act, shall remain so exempt after  the  expiration  and  repeal  of
section  two  of  this  act,  including  instances where the aircraft is
subsequently sold or the ownership is transferred or assigned,  for  the
useful life of the aircraft. Provided, further, that the commissioner of
taxation  and finance shall be immediately authorized to adopt and amend
any  rules  or  regulations  and  to  issue  any  procedure,  forms   or
instructions  necessary  to  implement  section  two  of this act on its
effective date.

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