S T A T E O F N E W Y O R K
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4950
2017-2018 Regular Sessions
I N A S S E M B L Y
February 6, 2017
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Introduced by M. of A. ROSENTHAL, RAIA -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an exemption for
drugs and medicines for companion and farm animals
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 3-b to read as follows:
(3-B) DRUGS AND MEDICINES INTENDED FOR USE, INTERNALLY OR EXTERNALLY,
IN THE CURE, MITIGATION, TREATMENT OR PREVENTION OF ILLNESSES OR
DISEASES IN COMPANION ANIMALS, AS DEFINED BY SUBDIVISION FIVE OF SECTION
THREE HUNDRED FIFTY OF THE AGRICULTURE AND MARKETS LAW, AND FARM
ANIMALS, AS DEFINED BY SUBDIVISION FOUR OF SECTION THREE HUNDRED FIFTY
OF THE AGRICULTURE AND MARKETS LAW, MEDICAL EQUIPMENT (INCLUDING COMPO-
NENT PARTS THEREOF) AND SUPPLIES REQUIRED FOR SUCH USE OR TO CORRECT OR
ALLEVIATE PHYSICAL INCAPACITY.
§ 2. Subdivision (b) of section 1107 of the tax law is amended by
adding a new clause 12 to read as follows:
(12) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE EXEMPTION PROVIDED BY
PARAGRAPH THREE-B OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN
OF THIS ARTICLE RELATING TO DRUGS AND MEDICINES INTENDED FOR USE IN
COMPANION ANIMALS AND FARM ANIMALS SHALL BE APPLICABLE PURSUANT TO A
LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY A CITY SUBJECT TO THE
PROVISIONS OF THIS CLAUSE. SUCH CITY IS EMPOWERED TO ADOPT OR REPEAL
SUCH A LOCAL LAW, ORDINANCE OR RESOLUTION. SUCH ADOPTION OR REPEAL SHALL
ALSO BE DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED
BY SUCH A CITY IMPOSING TAXES PURSUANT TO THE AUTHORITY OF SUBDIVISION
(A) OF SECTION TWELVE HUNDRED TEN OF THIS CHAPTER.
§ 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section
1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06514-01-7
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the laws of 2016, is amended, and a new subparagraph (iii) is added to
read as follows:
(ii) Any local law, ordinance or resolution enacted by any city, coun-
ty or school district, imposing the taxes authorized by this subdivi-
sion, shall omit the residential solar energy systems equipment and
electricity exemption provided for in subdivision (ee) OF SECTION ELEVEN
HUNDRED FIFTEEN OF THIS CHAPTER, the commercial solar energy systems
equipment and electricity exemption provided for in subdivision (ii),
the commercial fuel cell electricity generating systems equipment and
electricity generated by such equipment exemption provided for in subdi-
vision (kk) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER and the
clothing and footwear exemption provided for in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter,
unless such city, county or school district elects otherwise as to such
residential solar energy systems equipment and electricity exemption,
such commercial solar energy systems equipment and electricity
exemption, commercial fuel cell electricity generating systems equipment
and electricity generated by such equipment exemption or such clothing
and footwear exemption. (III) ANY LOCAL LAW, ORDINANCE OR RESOLUTION
ENACTED BY ANY CITY, COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES
AUTHORIZED BY THIS SUBDIVISION, SHALL OMIT MEDICINES INTENDED FOR USE IN
COMPANION ANIMALS AND FARM ANIMALS EXEMPTION PROVIDED FOR IN PARAGRAPH
THREE-B OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
CHAPTER, UNLESS SUCH CITY, COUNTY OR SCHOOL DISTRICT ELECTS OTHERWISE;
PROVIDED THAT IF SUCH A CITY HAVING A POPULATION OF ONE MILLION OR MORE
ENACTS THE RESOLUTION DESCRIBED IN SUBDIVISION (Q) OF THIS SECTION OR
REPEALS SUCH RESOLUTION, SUCH RESOLUTION OR REPEAL SHALL ALSO BE DEEMED
TO AMEND ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A CITY
IMPOSING SUCH TAXES PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION,
WHETHER OR NOT SUCH TAXES ARE SUSPENDED AT THE TIME SUCH CITY ENACTS ITS
RESOLUTION PURSUANT TO SUBDIVISION (Q) OF THIS SECTION OR AT THE TIME OF
ANY SUCH REPEAL; PROVIDED, FURTHER, THAT ANY SUCH LOCAL LAW, ORDINANCE
OR RESOLUTION AND SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER, AS
DEEMED TO BE AMENDED IN THE EVENT A CITY OF ONE MILLION OR MORE ENACTS A
RESOLUTION PURSUANT TO THE AUTHORITY OF SUBDIVISION (Q) OF THIS SECTION,
SHALL BE FURTHER AMENDED, AS PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN
OF THIS SUBPART, SO THAT THE MEDICINES INTENDED FOR USE IN COMPANION
ANIMALS AND FARM ANIMALS EXEMPTION IN ANY SUCH LOCAL LAW, ORDINANCE OR
RESOLUTION OR IN SUCH SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER IS
THE SAME AS THE MEDICINES INTENDED FOR USE IN COMPANION ANIMALS AND FARM
ANIMALS IN PARAGRAPH THREE-B OF SUBDIVISION (A) OF SECTION ELEVEN
HUNDRED FIFTEEN OF THIS CHAPTER.
§ 4. Subdivision (d) of section 1210 of the tax law, as amended by
section 4 of part WW of chapter 60 of the laws of 2016, is amended to
read as follows:
(d) A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of tax imposed on such
energy sources and services or providing for the credit or refund
described in clause six of subdivision (a) of section eleven hundred
nineteen of this chapter, or electing or repealing the exemption for
residential solar equipment and electricity in subdivision (ee) of
section eleven hundred fifteen of this [article] CHAPTER, or the
exemption for commercial solar equipment and electricity in subdivision
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(ii) of section eleven hundred fifteen of this [article] CHAPTER, or
electing or repealing the exemption for commercial fuel cell electricity
generating systems equipment and electricity generated by such equipment
in subdivision (kk) of section eleven hundred fifteen of this article
must go into effect only on one of the following dates: March first,
June first, September first or December first; provided, that a local
law, ordinance or resolution providing for the exemption described in
paragraph thirty of subdivision (a) of section eleven hundred fifteen of
this chapter or repealing any such exemption or a local law, ordinance
or resolution providing for a refund or credit described in subdivision
(d) of section eleven hundred nineteen of this chapter or repealing such
provision so provided must go into effect only on March first; PROVIDED,
FURTHER, THAT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING FOR THE
EXEMPTION DESCRIBED IN PARAGRAPH THREE-B OF SUBDIVISION (A) OF SECTION
ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR REPEALING ANY SUCH EXEMPTION
SO PROVIDED AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF SUBDI-
VISION (Q) OF THIS SECTION PROVIDING SUCH EXEMPTION OR REPEALING SUCH
EXEMPTION SO PROVIDED MAY GO INTO EFFECT IMMEDIATELY. No such local
law, ordinance or resolution shall be effective unless a certified copy
of such law, ordinance or resolution is mailed by registered or certi-
fied mail to the commissioner at the commissioner's office in Albany at
least ninety days prior to the date it is to become effective. However,
the commissioner may waive and reduce such ninety-day minimum notice
requirement to a mailing of such certified copy by registered or certi-
fied mail within a period of not less than thirty days prior to such
effective date if the commissioner deems such action to be consistent
with the commissioner's duties under section twelve hundred fifty of
this article and the commissioner acts by resolution. Where the
restriction provided for in section twelve hundred twenty-three of this
article as to the effective date of a tax and the notice requirement
provided for therein are applicable and have not been waived, the
restriction and notice requirement in section twelve hundred twenty-
three of this article shall also apply.
§ 5. Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
(Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
(1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR THE
SAME MEDICINES INTENDED FOR USE IN COMPANION ANIMALS AND FARM ANIMALS
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN PARA-
GRAPH THREE-B OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH
TWO OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS
OF SUBDIVISIONS (D) AND (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH
RESOLUTION SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN
HUNDRED SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO
INCORPORATE SUCH EXEMPTION AS IF IT HAD BEEN DULY ENACTED BY THE STATE
LEGISLATURE AND APPROVED BY THE GOVERNOR.
(2) THE RESOLUTION DESCRIBED IN PARAGRAPH (1) OF THIS SUBDIVISION
SHALL READ AS FOLLOWS: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR
CONTRACTED TO BE GIVEN FOR PURCHASES OF MEDICINES INTENDED FOR USE IN
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COMPANION ANIMALS AND FARM ANIMALS EXEMPT FROM STATE SALES AND COMPEN-
SATING USE TAXES PURSUANT TO PARAGRAPH THREE-B OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW SHALL ALSO BE EXEMPT FROM
SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE) AND
SHALL APPLY TO SALES MADE AND USES OCCURRING ON AND AFTER THAT DATE
ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
§ 6. The commissioner of taxation and finance is hereby authorized to
implement the provisions of this act with respect to the elimination of
the imposition of sales tax, additional taxes, and supplemental taxes on
medicines intended for use in companion animals and farm animals and all
other taxes so addressed by this act.
§ 7. This act shall take effect on the first day of the sales tax
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing at least 90 days after this act shall have
become a law and shall apply in accordance with the applicable transi-
tional provisions of sections 1106 and 1217 of the tax law.