NY State Senate Bill 2021-S522

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
Jan 06, 2021	referred to budget and revenue

co-Sponsors

2021-S522 (ACTIVE) - Details

See Assembly Version of this Bill:: A1200
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115, 1107 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6633, A9321
2017-2018: S6258, A4950
2019-2020: S2005, A602
2023-2024: S401, A756

2021-S522 (ACTIVE) - Summary

Relates to providing an exemption for drugs and medicines for companion and farm animals.

2021-S522 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S522

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing an exemption for
drugs and medicines for companion and farm animals

 
PURPOSE:

This bill eliminates sales tax collected on medicine for companion and
farm animals at the state level while still providing local governments
the option to forsake their portion of the tax, or to continue collect-
ing it.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subdivision (a) of section 1115 of the tax law by
adding a new paragraph 3-a.

Section two amends subdivision (b) of section 1107 of the tax law by

adding a new clause 12.

Sections three, four, and five amends Subdivision (a) of section 1210 of
the tax law, as amended by part ww of chapter 60 of the laws of 2016,
with a provision for a local law to adopt or repeal as it relates to a
city with a population of one million or more.

Section six authorizes the Commissioner of Taxation and Finance to
implement the provisions of this act.

Section seven sets forth the effective date.

 
JUSTIFICATION:

Less than one half of the states in the nation tax prescription drugs
and medications the same as any other retail sale. In some states, the
consumer ultimately pays the tax. Other states consider the veterinarian
to be the consumer who pays the taxes on prescriptions and medications.

While it would still be at the discretion of local governments to
continue to collect this tax or similarly repeal it, this initiative
will provide a 50% sales tax savings to pet owners even with no action
taken at the local level and will ultimately benefit the health and
well-being of companion and farm animals that have no voice. Lifesaving
equipment and medications for our pets should not be taxable or deemed
as miscellaneous retail items.

Furthermore, humans and service dogs currently carry this exemption.
This bill would provide both clarity and uniformity to the law and send
a clear message that our State values humans, service dogs, companion
and farm animals alike, and will not apply sales taxes on prescription
medications unequally.

 
LEGISLATIVE HISTORY:

02/02/16: S.6633 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
05/11/17: S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/03/18: S.6258 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
01/18/19: S.2005 REFERRED TO BUDGET AND REVENUE
01/08/20: S.2005 REFERRED TO BUDGET AND REVENUE

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This bill 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 transitional
provisions of sections 1106 and 1217 of the tax law.

2021-S522 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    522
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sens.  TEDISCO,  BOYLE, SERINO -- 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 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00851-01-1

 S. 522                              2
 
   §  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, 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)  OF
 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, the commercial fuel cell
 electricity  generating  systems  equipment and electricity generated by
 such equipment exemption provided for in  subdivision  (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 ener-
 gy 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 (P) 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  (P)  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 (P)  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

 S. 522                              3
 
 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
 (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  (P)  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 (p) to read as follows:
   (P) 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.

 S. 522                              4
 
   (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
 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.

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Senate Bill S522

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2021-S522 (ACTIVE) - Details

2021-S522 (ACTIVE) - Summary

2021-S522 (ACTIVE) - Sponsor Memo

2021-S522 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S522

Share this bill

Sponsored By

James Tedisco

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Phil Boyle

Susan Serino

2021-S522 (ACTIVE) - Details

2021-S522 (ACTIVE) - Summary

2021-S522 (ACTIVE) - Sponsor Memo

2021-S522 (ACTIVE) - Bill Text download pdf

Comments