NY State Senate Bill 2021-S4476

Senate Bill S4476

2021-2022 Legislative Session

Provides an exemption for the sale of the first $35,000 of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes

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Archive: Last Bill Status - In Senate Committee Finance 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 11, 2022	reported and committed to finance
Jan 05, 2022	referred to budget and revenue
Feb 05, 2021	referred to budget and revenue

Votes

- May 11, 2022 - Budget And Revenue Committee Vote
  S4476
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: May 11, 2022
      
      aye (6)
      
      Gounardes
      
      Kaminsky
      
      Liu
      
      Rath III
      
      Salazar
      
      Weik
      
      aye wr (1)
      
      Krueger

co-Sponsors

2021-S4476 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1160 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3827
2023-2024: S5455

2021-S4476 (ACTIVE) - Summary

Provides an exemption for the sale of the first $35,000 for a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes; authorizes local governments to elect such incentives; repeals the hybrid exemption after ten years.

2021-S4476 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4476

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting the sale of the
first thirty-five thousand dollars of a battery, electric, or plug-in
hybrid electric vehicle from state sales and compensating use taxes, and
to authorize cities and counties to elect such exemption

 
PURPOSE:

The purpose of this legislation is to encourage purchasers of motor
vehicles to choose battery, electric, or plug-in hybrid electric vehi-
cles.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new paragraph 46 to Section 1115 of the Tax Law to
exempt the first $35,000 of retail value of the sale or lease of a
battery, electric, or plug-in hybrid vehicle from sales tax.

Section 2 adds a new subdivision (c) to Section 1160 of the Tax Law to
clarify that the exemption provided for in Section 1115 of the Tax Law
does not limit the applicability of this section, which is the special
tax on passenger car rentals.

Section 3 amends Section 1210 of the Tax Law to authorize any city or
county imposing a tax under this section to exempt electric vehicles.

Section 4 is the same as Section 1 of the bill but removes "plug-in
hybrid."

Section 5 is the same as Section 2 of the bill but removes "plug-in
hybrid."

Section 6 is the same as Section 3 of the bill but removes "plug-in
hybrid."

Section 7 is the effective date.

 
JUSTIFICATION:

The incentives contained in this legislation are aimed at encouraging
the purchasers of motor vehicles to choose battery, electric, or plug-in
hybrid electric vehicles. The transportation sector is responsible for a
significant portion of greenhouse gas emissions.  The adoption of elec-
tric vehicles is a step consumers can take to decrease greenhouse gass-
es.

New York has a number of incentives to encourage the adoption of elec-
tric vehicles including a rebate for the purchase of electric vehicles
through the New York State Energy Research and Development Authority and
a reduction in tolling through the Clean Pass Program.  However, the tax
exemption in this legislation will provide a long-term incentive to
motorists to choose clean vehicles.

 
LEGISLATIVE HISTORY:

2019-2020: S.3827-B - Amend and Recommit to Budget and Revenue

 
STATE AND LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
beginning at least one hundred twenty days after the date this act shall
have become a law and shall apply to sales made on or after such date;
provided, however, that sections four, five and six of this act shall
take effect ten years after such effective date and shall apply to sales
made on and after such date.

2021-S4476 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4476
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2021
                                ___________
 
 Introduced  by Sens. JACKSON, LIU -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to exempting the  sale  of  the
   first  thirty-five thousand dollars of a battery, electric, or plug-in
   hybrid electric vehicle from state sales and compensating  use  taxes,
   and to authorize cities and counties to elect such exemption
 
   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 46 to read as follows:
   (46)  THE  RECEIPTS FROM THE FIRST THIRTY-FIVE THOUSAND DOLLARS OF THE
 RETAIL SALE OR LEASE OF A NEW BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELEC-
 TRIC VEHICLE. FOR PURPOSES OF THIS PARAGRAPH THE  TERM  "BATTERY,  ELEC-
 TRIC,  OR  PLUG-IN  HYBRID  ELECTRIC  VEHICLE" MEANS A MOTOR VEHICLE, AS
 DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE  VEHICLE  AND  TRAFFIC
 LAW, THAT:
   (I) HAS FOUR WHEELS;
   (II)  WAS  MANUFACTURED FOR USE PRIMARILY ON PUBLIC STREETS, ROADS AND
 HIGHWAYS;
   (III) THE POWERTRAIN OF WHICH HAS NOT BEEN MODIFIED FROM THE  ORIGINAL
 MANUFACTURER'S SPECIFICATIONS;
   (IV)  IS  RATED  AT  NOT  MORE THAN EIGHT THOUSAND FIVE HUNDRED POUNDS
 GROSS VEHICLE WEIGHT;
   (V) HAS A MAXIMUM SPEED CAPABILITY OF AT LEAST  FIFTY-FIVE  MILES  PER
 HOUR; AND
   (VI)  IS PROPELLED AT LEAST IN PART BY AN ELECTRONIC MOTOR AND ASSOCI-
 ATED POWER ELECTRONICS WHICH PROVIDE ACCELERATION TORQUE  TO  THE  DRIVE
 WHEELS  SOMETIME  DURING  NORMAL VEHICLE OPERATION, AND THAT DRAWS ELEC-
 TRICITY FROM A BATTERY THAT:
   (A) HAS A CAPACITY OF NOT LESS THAN FOUR KILOWATT HOURS; AND

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08165-02-1

 S. 4476                             2
 
   (B) IS CAPABLE OF BEING RECHARGED FROM AN EXTERNAL SOURCE OF ELECTRIC-
 ITY.
   §  2.  Section 1160 of the tax law is amended by adding a new subdivi-
 sion (c) to read as follows:
   (C) THE NEW BATTERY, ELECTRIC, OR  PLUG-IN  HYBRID  ELECTRIC  VEHICLES
 EXEMPTION  PROVIDED  FOR  IN  PARAGRAPH  FORTY-SIX OF SUBDIVISION (A) OF
 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER SHALL  NOT  APPLY  TO  OR
 LIMIT THE IMPOSITION OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE.
   §  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
 the laws of 2016, is amended 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)  [and],  the  clothing and footwear
 exemption provided for in paragraph thirty of subdivision (a) of section
 eleven hundred fifteen of this chapter, AND THE  BATTERY,  ELECTRIC,  OR
 PLUG-IN  HYBRID  ELECTRIC  VEHICLE  EXEMPTION  PROVIDED FOR IN PARAGRAPH
 FORTY-SIX 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 electric-
 ity exemption,  commercial  fuel  cell  electricity  generating  systems
 equipment  and  electricity  generated by such equipment exemption [or],
 such clothing and footwear exemption OR SUCH BATTERY, ELECTRIC, OR PLUG-
 IN HYBRID ELECTRIC VEHICLE EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-SIX
 OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER.
   § 4.  Paragraph 46 of subdivision (a) of section 1115 of the tax  law,
 as added by section one of this act, is amended to read as follows:
   (46)  The  receipts from the first thirty-five thousand dollars of the
 retail sale or lease of a new battery[,] OR electric[, or plug-in hybrid
 electric] vehicle. For purposes of this paragraph the  term  "battery[,]
 OR  electric[,  or plug-in hybrid electric] vehicle" means a motor vehi-
 cle, as defined in section one hundred twenty-five of  the  vehicle  and
 traffic law, that:
   (i) has four wheels;
   (ii)  was  manufactured for use primarily on public streets, roads and
 highways;
   (iii) the powertrain of which has not been modified from the  original
 manufacturer's specifications;
   (iv)  is  rated  at  not  more than eight thousand five hundred pounds
 gross vehicle weight;
   (v) has a maximum speed capability of at least  fifty-five  miles  per
 hour; and
   (vi)  is propelled [at least in part] by an electronic motor and asso-
 ciated power electronics which provide acceleration torque to the  drive
 wheels  sometime  during  normal vehicle operation, and that draws elec-
 tricity from a battery that:
   (A) has a capacity of not less than four kilowatt hours; and
   (B) is capable of being recharged from an external source of electric-
 ity.

 S. 4476                             3
 
   § 5. Subdivision (c) of section 1160 of  the  tax  law,  as  added  by
 section two of this act, is amended to read as follows:
   (c) The new battery[,] OR electric[, or plug-in hybrid electric] vehi-
 cles exemption provided for in paragraph forty-six of subdivision (a) of
 section  eleven  hundred  fifteen  of this chapter shall not apply to or
 limit the imposition of the tax imposed pursuant to this article.
   § 6. Subparagraph (ii) of paragraph 1 of subdivision  (a)  of  section
 1210 of the tax law, as amended by section three of this act, is amended
 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 clothing  and  footwear  exemption
 provided  for  in  paragraph thirty of subdivision (a) of section eleven
 hundred fifteen of this chapter, and the  battery[,]  OR  electric[,  or
 plug-in  hybrid  electric]  vehicle  exemption provided for in paragraph
 forty-six 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 electric-
 ity exemption,  commercial  fuel  cell  electricity  generating  systems
 equipment  and  electricity  generated by such equipment exemption, such
 clothing and footwear exemption or  such  battery[,]  OR  electric[,  or
 plug-in  hybrid  electric]  vehicle  exemption provided for in paragraph
 forty-six of subdivision (a) of section eleven hundred fifteen  of  this
 chapter.
   §  7. This act shall take effect on the first day of a sales tax quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law, beginning at least one hundred twenty days after the date this  act
 shall  have  become a law and shall apply to sales made on or after such
 date; provided, however, that sections four, five and six  of  this  act
 shall take effect ten years after such effective date and shall apply to
 sales made on and after such date.

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Senate Bill S4476

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Sponsored By

Robert Jackson