BILL NUMBER: S1166

SPONSOR: KAMINSKY
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a sales tax
holiday for water-conserving and WaterSense products

 
PURPOSE OR GENERAL IDEA OF BILL:

Establishes a tax holiday to promote the usage of water-conserving
products and appliances by making them more affordable.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new paragraph 46 to Section 1115 of the tax law, which
establishes a tax-free period on Memorial Day weekend for the purchase
of water-conserving and WaterSense products.

Section 2 of this bill is the effective date.

              

 
JUSTIFICATION:

Water is a limited resource and it is of vital importance. New York
continues to take strides to promote water efficiency to conserve our
water resources for future generations. Reducing water use will help New
Yorkers save money on their water bills, the Environmental Protection
Agency has found the average family spends $1,000 per year in water
costs, but through the installation of more efficient fixtures and
appliances, a family can reduce their bill by approximately $380 a year.
Studies have also found that if just one of every 10 households replaced
its inefficient toilets with WaterSense toilets, New York would save
nearly 8 billion gallons and more than $46 million in water bills annu-
ally.

However, the high cost of these fixtures and appliances continues to act
as a barrier to many families who are looking to invest in these types
of products. This legislation will address this issue through the
creation of a sales tax holiday on Memorial Day weekend for the purchase
of water-conserving products and WaterSense appliances, which includes
weather-based irrigation controllers. These special sprinkler control-
lers use weather data and site information such as the type of plants
and soil to automatically adjust watering times for hotter or cooler
weather. They also stop watering when it rains.  Nationwide, landscape
irrigation is estimated to account for almost one-third of residential
water use, totaling more than 7 billion gallons per day. The EPA has
calculated that replacing a standard sprinkler clock timer with a smart
or WaterSense labeled irrigation controller can reduce an average home's
irrigation water use by 15 percent, saving an average home nearly 7,600
gallons of water annually. Through the creation of a tax-free holiday,
families will now be able to afford these systems, which will only help
promote the usage of these important water conservation products and
appliances.

 
PRIOR LEGISLATIVE HISTORY:

2020: S6791, Kaminsky. Referred to Budget and Revenue. 2019: S6791,
Kaminsky. Referred to Rules.

 
FISCAL IMPLICATIONS:

Approximately $2.7 million for the first taxable year.

 
EFFECTIVE DATE:
This act shall take effect immediately.