S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    876
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2017
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the tax law, in relation to providing an exemption for
   geothermal heat pump systems equipment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1115  of  the tax law is amended by adding a new
 subdivision (ll) to read as follows:
   (LL) RECEIPTS FROM THE RETAIL SALE OF RESIDENTIAL GEOTHERMAL HEAT PUMP
 SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
 EXEMPT FROM TAX UNDER THIS ARTICLE. FOR PURPOSES  OF  THIS  SUBDIVISION,
 "RESIDENTIAL  GEOTHERMAL  HEAT  PUMP  SYSTEM  EQUIPMENT"  SHALL  MEAN AN
 ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED IN AND AROUND A RESI-
 DENTIAL BUILDING THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENER-
 GY SOURCE OR AS A THERMAL ENERGY SINK DESIGNED TO PROVIDE AND DISTRIBUTE
 HEATING, AND/OR COOLING, AND/OR HOT WATER, ALSO COMMONLY REFERRED TO  AS
 GROUND  SOURCE  HEAT  PUMP SYSTEMS. SUCH ARRANGEMENT OR COMPONENTS SHALL
 NOT INCLUDE ANY SORT OF RECREATIONAL FACILITY OR  EQUIPMENT  USED  AS  A
 STORAGE MEDIUM.
   §  2.  Section 1115 of the tax law is amended by adding a new subdivi-
 sion (mm) to read as follows:
   (MM) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL GEOTHERMAL HEAT  PUMP
 SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
 EXEMPT  FROM  TAXES  IMPOSED  BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN
 HUNDRED TEN OF THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION,  "COMMER-
 CIAL GEOTHERMAL HEAT PUMP SYSTEM EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR
 COMBINATION  OF COMPONENTS INSTALLED IN AND AROUND A COMMERCIAL BUILDING
 THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE OR AS  A
 THERMAL  ENERGY  SINK DESIGNED TO PROVIDE AND DISTRIBUTE HEATING, AND/OR
 COOLING, AND/OR HOT WATER, ALSO COMMONLY REFERRED TO  AS  GROUND  SOURCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04821-01-7

 S. 876                              2
 
 HEAT  PUMP SYSTEMS. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE ANY
 SORT OF RECREATIONAL FACILITY OR EQUIPMENT USED AS A STORAGE MEDIUM.
   §  3. Subparagraph (ii) of paragraph 1 and subparagraph (xiv) of para-
 graph 4 of subdivision (a) of section 1210 of the tax law,  subparagraph
 (ii)  of  paragraph (a) as amended and subparagraph (xiv) of paragraph 4
 as added by section 2 of part WW of chapter 60 of the laws of 2016,  are
 amended  and  a new subparagraph (xv) is added to paragraph 4 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),  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 subdivision (kk), THE RESIDENTIAL GEOTHERMAL HEAT PUMP
 SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION
 (LL), THE COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND  INSTAL-
 LATION  EXEMPTION  PROVIDED FOR IN SUBDIVISION (MM) 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, SUCH RESIDENTIAL GEOTHERMAL  HEAT
 PUMP  SYSTEMS  EQUIPMENT  AND  INSTALLATION  EXEMPTION,  SUCH COMMERCIAL
 GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT  AND  INSTALLATION  EXEMPTION  or
 such clothing and footwear exemption.
   (xiv) shall omit, unless such city elects otherwise, the exemption for
 commercial  fuel cell electricity generating systems equipment and elec-
 tricity generated by such equipment  provided  in  subdivision  (kk)  of
 section  eleven  hundred fifteen of this chapter[.]; AND (XV) SHALL OMIT
 UNLESS SUCH CITY ELECTS OTHERWISE, THE RESIDENTIAL GEOTHERMAL HEAT  PUMP
 SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION
 (LL)  OF  SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER; AND SHALL OMIT
 UNLESS SUCH CITY ELECTS OTHERWISE, THE COMMERCIAL GEOTHERMAL  HEAT  PUMP
 SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION
 (MM) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER.
   § 4. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
 amended  by  section  3 of part WW of chapter 60 of the laws of 2016, is
 amended to read as follows:
   (1) Or, one or more of the taxes described in subdivisions  (b),  (d),
 (e)  and (f) of section eleven hundred five of this chapter, at the same
 uniform rate, including the transitional provisions  in  section  eleven
 hundred  six  of  this  chapter  covering  such taxes, but not the taxes
 described in subdivisions (a) and (c) of section eleven hundred five  of
 this  chapter. Provided, further, that where the tax described in subdi-
 vision (b) of section eleven hundred five of this  chapter  is  imposed,
 the  compensating  use  taxes  described  in clauses (E), (G) and (H) of
 subdivision (a) of section eleven hundred ten of this chapter shall also
 be imposed. Provided, further, that where the taxes described in  subdi-
 vision  (b) of section eleven hundred five are imposed, such taxes shall
 omit: (A) the provision for refund or credit  contained  in  subdivision
 (d)  of  section eleven hundred nineteen of this chapter with respect to
 such taxes described in such subdivision (b) of section  eleven  hundred

 S. 876                              3
 
 five  unless such city or county elects to provide such provision or, if
 so elected, to repeal such provision;  (B)  the  exemption  provided  in
 paragraph  two  of subdivision (ee) of section eleven hundred fifteen of
 this  chapter  unless  such  county  or  city  elects otherwise; (C) the
 exemption provided in paragraph two of subdivision (ii) of section elev-
 en hundred fifteen of this chapter, unless such county  or  city  elects
 otherwise; [and] (D) the exemption provided in paragraph two of subdivi-
 sion (kk) of section eleven hundred fifteen of this chapter, unless such
 county or city elects otherwise; (E) THE EXEMPTION PROVIDED IN PARAGRAPH
 TWO  OF SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAP-
 TER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE; AND (F) THE  EXEMPTION
 PROVIDED  IN PARAGRAPH TWO OF SUBDIVISION (MM) OF SECTION ELEVEN HUNDRED
 FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE.
   § 5. 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, or the exemption for
 commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
 section eleven hundred fifteen of this article, 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, OR ELECTING OR
 REPEALING THE EXEMPTION FOR RESIDENTIAL  GEOTHERMAL  HEAT  PUMP  SYSTEMS
 EQUIPMENT AND INSTALLATION IN SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED
 FIFTEEN  OF  THIS  ARTICLE,  OR  ELECTING OR REPEALING THE EXEMPTION FOR
 COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT  AND  INSTALLATION  IN
 SUBDIVISION  (MM) 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  para-
 graph  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.  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
 certified mail to the commissioner at the commissioner's office in Alba-
 ny 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
 certified  mail  within  a  period of not less than thirty days prior to
 such effective date if the commissioner deems such action to be consist-
 ent 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

 S. 876                              4
 
 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.
   §  6.  Subdivision  (a)  of section 1212 of the tax law, as amended by
 section 5 of part WW of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (a)  Any  school  district which is coterminous with, partly within or
 wholly within a city having a population of less than one hundred  twen-
 ty-five  thousand,  is hereby authorized and empowered, by majority vote
 of the whole number of its school  authorities,  to  impose  for  school
 district purposes, within the territorial limits of such school district
 and  without  discrimination between residents and nonresidents thereof,
 the taxes described in subdivision (b) of section  eleven  hundred  five
 (but  excluding  the  tax on prepaid telephone calling services) and the
 taxes described in clauses (E) and (H) of  subdivision  (a)  of  section
 eleven hundred ten, including the transitional provisions in subdivision
 (b)  of  section  eleven  hundred  six  of  this chapter, so far as such
 provisions can be made applicable to the taxes imposed  by  such  school
 district  and  with  such  limitations and special provisions as are set
 forth in this article, such taxes to be imposed at the rate of one-half,
 one, one and one-half, two, two and one-half or three percent which rate
 shall be uniform for all portions and all types  of  receipts  and  uses
 subject  to  such taxes. In respect to such taxes, all provisions of the
 resolution imposing them, except as to  rate  and  except  as  otherwise
 provided herein, shall be identical with the corresponding provisions in
 such  article  twenty-eight  of  this  chapter, including the applicable
 definition and exemption provisions of  such  article,  so  far  as  the
 provisions  of  such  article  twenty-eight  of this chapter can be made
 applicable to the taxes imposed by such school district  and  with  such
 limitations and special provisions as are set forth in this article. The
 taxes  described  in subdivision (b) of section eleven hundred five (but
 excluding the tax on prepaid telephone calling service) and clauses  (E)
 and  (H) of subdivision (a) of section eleven hundred ten, including the
 transitional provision in subdivision (b) of such section eleven hundred
 six of this chapter, may not be imposed by such school  district  unless
 the  resolution imposes such taxes so as to include all portions and all
 types of receipts and uses subject to tax under  such  subdivision  (but
 excluding  the  tax  on  prepaid telephone calling service) and clauses.
 Provided, however, that, where a school  district  imposes  such  taxes,
 such  taxes  shall  omit the provision for refund or credit contained in
 subdivision (d) of section eleven hundred nineteen of this chapter  with
 respect to such taxes described in such subdivision (b) of section elev-
 en  hundred  five  unless  such  school  district elects to provide such
 provision or, if so elected, to repeal such provision,  and  shall  omit
 the  exemptions  provided in paragraph two of subdivision (ee) and para-
 graph two of subdivision (ii) of section eleven hundred fifteen of  this
 chapter unless such school district elects otherwise, and shall omit the
 exemption provided in paragraph two of subdivision (kk) of section elev-
 en  hundred  fifteen  of this chapter unless such school district elects
 otherwise, AND SHALL OMIT THE EXEMPTION PROVIDED IN SUBDIVISION (11)  OF
 SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER  UNLESS SUCH SCHOOL
 DISTRICT ELECTS OTHERWISE, AND SHALL  OMIT  THE  EXEMPTION  PROVIDED  IN
 SUBDIVISION  (MM)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER
 UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE.
   § 7. Section 1224 of the tax law is amended by adding two new subdivi-
 sions (c-3) and (c-4) to read as follows:

 S. 876                              5
 
   (C-3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A  COUNTY
 CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
 HAS  ELECTED  THE EXEMPTION FOR RESIDENTIAL GEOTHERMAL HEAT PUMP SYSTEMS
 EQUIPMENT AND INSTALLATION PROVIDED IN SUBDIVISION (LL) OF SECTION ELEV-
 EN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITHIN SUCH COUNTY SHALL HAVE
 THE  PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLA-
 TION TO THE EXTENT OF ONE HALF OF THE  MAXIMUM  RATES  AUTHORIZED  UNDER
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE;
   (2)  WHERE  A  CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION
 FOR RESIDENTIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND  INSTALLATION
 PROVIDED  IN  SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
 CHAPTER, THE COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE  THE  PRIOR
 RIGHT  TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLATION TO THE
 EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A)
 OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
   (C-4) NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A  COUNTY
 CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
 HAS  ELECTED  THE  EXEMPTION FOR COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS
 EQUIPMENT AND INSTALLATION PROVIDED IN SUBDIVISION (MM) OF SECTION ELEV-
 EN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITHIN SUCH COUNTY SHALL HAVE
 THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR  INSTALLA-
 TION  TO  THE  EXTENT  OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE;
   (2) WHERE A CITY OF LESS THAN ONE MILLION HAS  ELECTED  THE  EXEMPTION
 FOR  COMMERCIAL  GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION
 PROVIDED IN SUBDIVISION (MM) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THIS
 CHAPTER,  THE  COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE THE PRIOR
 RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLATION TO  THE
 EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A)
 OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
   § 8. This act shall take effect immediately.