NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3057A
SPONSOR: Carroll R TITLE OF BILL:
An act to repeal subdivision (jj) of section 1115 of the tax law relat-
ing to sales and compensating use taxes imposed with respect to vessels;
and to repeal subdivision 13 of section 1118 of the tax law relating to
sales and compensating use taxes imposed with respect to vessels
PURPOSE OF BILL:
The purpose of this legislation is to reinstate the sales tax on luxury
yachts costing more than $230,000.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill repeals subdivision (jj) of section 1115 of the
tax law, as added by section 1 of part SS of chapter 59 of the laws of
2015.
Section 2 of the bill repeals subdivision 13 of section 1118 of the tax
law, as added by section 2 of part SS of chapter 59 of the laws of 2015.
Section 3 of the bill is the effective date.
JUSTIFICATION:
The 2015 state budget created an exemption from sales and compensating
use taxes for luxury yachts and other vessels with a value of over
$230,000. This exemption is an unnecessary giveaway to wealthy individ-
uals.
PRIOR LEGISLATIVE HISTORY:
A.9045/S.7136 of 2019-20; A.555/S.430 of 2021-22; A.1464/S.2557
FISCAL IMPLICATIONS:
Would result in revenue generated for the state.
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to taxable
years beginning on or after such date.
