NY State Senate Bill 2023-S5454

Senate Bill S5454

2023-2024 Legislative Session

Imposes a special tax on artwork, antique furniture, and antique jewelry sold at auction and establishes the art education fund

download bill text pdf

Current 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 03, 2024	referred to budget and revenue
Mar 06, 2023	referred to budget and revenue

2023-S5454 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add Art 28-E §§1199 - 1199-d, Tax L; add §97-uuuu, St Fin L
Versions Introduced in 2021-2022 Legislative Session:: S5317

2023-S5454 (ACTIVE) - Summary

Imposes a special tax of three-tenths of one percent or one dollar, whichever is greater, on the receipts from the sale of art, antique furniture or antique jewelry at auction; establishes the art education fund to provide assistance for art education and art supplies at the kindergarten through twelfth grade levels at Title I public schools.

2023-S5454 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5454

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the tax law, in relation to imposing a special tax on
artwork, antique furniture, and antique jewelry sold at auction; and to
amend the state finance law, in relation to establishing the art educa-
tion fund

 
PURPOSE:

Click here

 
SUMMARY OF PROVISIONS:

Section 1 adds a new Article 28-E to the Tax Law that creates a special
tax on artwork, antique furniture, and antique jewelry sold at auction.

Section 2 adds a new Section 97-UUUU to the State Finance Law that
creates an art education fund whereby the revenues received from the
special tax under Section 1 of this act shall be deposited in the art

education fund. These funds shall be made available to the New York
State Council on the Arts ("NYSCA") for the purpose of providing assist-
ance for art education and art supplies for grades K-12 at public
schools that receive federal funds under Title 1 of the Elementary and
Secondary Act of 1965. Art education includes activities such as paint-
ing, visual arts, field trips to museums or other institutions recog-
nized by NYSCA, and stipends for artists in residence. Any funds not
spent at the end of each fiscal year in the art education fund shall be
deposited into the state's general fund.  NYSCA shall establish guide-
lines necessary to administer the fund, and shall provide by September
1st of each year a report to the governor, the temporary president of
the Senate, the speaker of the Assembly, the chair of the Senate finance
committee, and the chair of the Assembly ways and means committee
detailing the guidelines established by NYSCA and a complete financial
statement.

Section 3 is the effective date.

 
JUSTIFICATION:

New York is considered by many as the cultural capital of the world and
one of the major art marketplaces of the world, yet our schools can
barely provide basic levels of art education due to budgetary
constraints.

By creating an "art education fund" administered by NYSCA and funded by
a special tax on artwork, antique furniture, and antique jewelry sold at
auction, many more of the children of our great state will be able to
access and learn about the arts and in some cases become the arts enthu-
siasts and collectors of tomorrow.

 
LEGISLATIVE HISTORY:

2021-2022: S.5317 - Referred to Budget and Revenue/A.7262 - Referred to
Ways and Means

 
STATE AND LOCAL FISCAL IMPLICATIONS:
To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law. Effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
to be made and completed on or before such effective date.

2023-S5454 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5454
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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 imposing a  special  tax  on
   artwork,  antique  furniture, and antique jewelry sold at auction; and
   to amend the state finance law, in relation to  establishing  the  art
   education fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 28-E to read
 as follows:
                               ARTICLE 28-E
      SPECIAL TAX ON ARTWORK, ANTIQUE FURNITURE, AND ANTIQUE JEWELRY
                              SOLD AT AUCTION
 SECTION 1199. DEFINITIONS.
         1199-A. IMPOSITION OF SPECIAL TAX.
         1199-B. ADMINISTRATIVE PROVISIONS.
         1199-C. DEPOSIT AND DISPOSITION OF REVENUE.
         1199-D. RULES AND REGULATIONS.
   § 1199. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ART" SHALL BE A WORK OF ART, ARTWORK, ART PIECE, PIECE OF ART OR
 ART OBJECT THAT IS AN AESTHETIC PHYSICAL ITEM OR ARTISTIC CREATION.
   (B) "ANTIQUE FURNITURE" SHALL BE FURNITURE CREATED  OVER  ONE  HUNDRED
 TWENTY-FIVE YEARS AGO.
   (C)  "ANTIQUE JEWELRY" SHALL BE JEWELRY CREATED OVER ONE HUNDRED TWEN-
 TY-FIVE YEARS AGO.
   (D) "AUCTION" INCLUDES ANY AUCTION TAKING PLACE IN THE STATE OR  BEING
 MANAGED  BY  AN ENTITY THAT HAS A NEW YORK TAX RESALE CERTIFICATE OR HAS
 AN AUCTIONEER'S LICENSE IN ANY LOCALITY  THAT  REQUIRES  IT  WITHIN  THE
 STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07400-01-3
 S. 5454                             2

 
   §  1199-A.  IMPOSITION  OF  SPECIAL  TAX. IN ADDITION TO ANY OTHER TAX
 IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A  TAX  OF
 THREE-TENTHS  OF ONE PERCENT OR ONE DOLLAR, WHICHEVER IS GREATER, ON THE
 RECEIPTS FROM THE SALE OF ART, ANTIQUE FURNITURE OR ANTIQUE  JEWELRY  AT
 AUCTION.  THE  TAX IS IMPOSED ON THE PURCHASER AND SHALL BE COLLECTED BY
 THE ENTITY CONDUCTING THE AUCTION AT THE TIME OF SALE, PROVIDED HOWEVER,
 THAT WHERE THE TAX IMPOSED PURSUANT TO THIS SECTION IS NOT COLLECTED  BY
 THE  ENTITY  CONDUCTING  THE  AUCTION THE PURCHASER SHALL REMIT SUCH TAX
 DIRECTLY TO THE COMMISSIONER.
   § 1199-B. ADMINISTRATIVE PROVISIONS. EVERY PERSON REQUIRED TO  COLLECT
 OR  PAY  THE  TAX  IMPOSED UNDER SECTION ELEVEN HUNDRED NINETY-NINE-A OF
 THIS ARTICLE SHALL FILE A  RETURN  AND  PAY  SUCH  TAX  REQUIRED  TO  BE
 COLLECTED  TO  THE COMMISSIONER OF TAXATION AND FINANCE ON OR BEFORE THE
 TWENTIETH DAY AFTER THE CLOSE OF THE QUARTERLY PERIOD IN WHICH THE  SALE
 TOOK PLACE, NOT DELIVERY OF OBJECT.
   §  1199-C.  DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES COLLECTED OR
 RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL  BE  DEPOSITED  IN
 THE ART EDUCATION FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-UUUU
 OF  THE  STATE FINANCE LAW AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
 SUCH SECTION.
   § 1199-D. RULES AND REGULATIONS. THE COMMISSIONER SHALL PROMULGATE ALL
 RULES AND REGULATIONS NECESSARY TO CARRY  OUT  THE  PROVISIONS  OF  THIS
 ARTICLE.
   §  2. The state finance law is amended by adding a new section 97-uuuu
 to read as follows:
   § 97-UUUU. ART EDUCATION FUND. 1. THERE IS HEREBY CREATED IN THE JOINT
 CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER  OF  TAXATION  AND
 FINANCE A FUND TO BE KNOWN AS THE "ART EDUCATION FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
 OF TAXATION AND FINANCE, PURSUANT TO THE PROVISIONS  OF  SECTION  ELEVEN
 HUNDRED  NINETY-NINE-B OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED,
 CREDITED, OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE  PURSUANT
 TO  LAW.  MONIES  IN  THE  FUND  SHALL BE KEPT SEPARATE AND SHALL NOT BE
 COMMINGLED WITH ANY OTHER  MONIES  OTHERWISE  APPROPRIATED  OR  RECEIVED
 EXCEPT AS HEREBY PROVIDED.
   3.  MONIES  OF THE FUND, WHEN ALLOCATED, SHALL BE AVAILABLE TO THE NEW
 YORK STATE COUNCIL ON THE ARTS FOR THE PURPOSE OF  PROVIDING  ASSISTANCE
 FOR  ART  EDUCATION AND ART SUPPLIES AT THE KINDERGARTEN THROUGH TWELFTH
 GRADE LEVELS AT PUBLIC SCHOOLS RECEIVING FEDERAL FUNDS PURSUANT TO TITLE
 I OF THE ELEMENTARY AND SECONDARY  EDUCATION  ACT  OF  NINETEEN  HUNDRED
 SIXTY-FIVE,  AS  AMENDED.  AS USED IN THIS SECTION, THE TERM "ART EDUCA-
 TION" SHALL INCLUDE THE FOLLOWING  ACTIVITIES:  PAINTING,  VISUAL  ARTS,
 CERAMICS, FIELD TRIPS TO MUSEUMS OR OTHER INSTITUTIONS RECOGNIZED BY THE
 NEW  YORK  STATE  COUNCIL ON THE ARTS, AND STIPENDS FOR ARTISTS IN RESI-
 DENCE. ANY MONIES REMAINING IN THE FUND AT THE END OF EACH  FISCAL  YEAR
 WHICH  HAVE NOT BEEN EXPENDED FOR ART EDUCATION OR ART SUPPLIES SHALL BE
 DEPOSITED INTO THE GENERAL FUND.
   4. THE STATE COUNCIL ON THE ARTS SHALL ESTABLISH GUIDELINES  NECESSARY
 TO ADMINISTER THE FUND. GUIDELINES SHALL INCLUDE, BUT NOT BE LIMITED TO,
 QUALIFICATIONS  AND  CONDITIONS  FOR  ASSISTANCE AND ANY OTHER TERMS AND
 CONDITIONS THE COUNCIL MAY REQUIRE AS NECESSARY TO  PROPERLY  EFFECTUATE
 THE PROVISIONS OF THIS SECTION.
   5.  THE  STATE COUNCIL ON THE ARTS SHALL PROVIDE BY SEPTEMBER FIRST OF
 EACH YEAR, TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
 SPEAKER  OF  THE  ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE
 AND THE CHAIRMAN OF THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE,  A  REPORT
 S. 5454                             3
 
 CONTAINING GUIDELINES AND AMENDMENTS ESTABLISHED BY THE STATE COUNCIL ON
 THE  ARTS  AND A COMPLETE FINANCIAL STATEMENT INCLUDING, BUT NOT LIMITED
 TO, MONIES ALLOCATED, COLLECTED, TRANSFERRED OR OTHERWISE PAID OR  CRED-
 ITED  TO THE FUND. A PROJECTED SCHEDULE OF DISBURSEMENTS AND RECEIPTS OF
 THE FUND FOR THE NEXT FISCAL YEAR SHALL BE INCLUDED IN EACH  REPORT.  IN
 ADDITION,  ANY  AMENDMENTS  TO  THE  GUIDELINES SHALL BE PROVIDED TO THE
 ABOVE LISTED INDIVIDUALS WITHIN THIRTY DAYS OF  THEIR  ESTABLISHMENT  BY
 THE STATE COUNCIL ON THE ARTS.
   6.  NO MONIES SHALL BE PAYABLE FROM THIS FUND, EXCEPT ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER ON VOUCHERS CERTIFIED AND  SUBMITTED  BY  THE
 CHAIRMAN OF THE STATE COUNCIL ON THE ARTS.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law. Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.

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