NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5216A
SPONSOR: Kolb (MS) TITLE OF BILL: An act to amend the tax law, in relation to eliminat-
ing state sales and compensating use taxes on motor fuels and diesel
motor fuels and authorizing localities to eliminate such taxes at the
local level (Part A); to amend the tax law, in relation to exemptions
from sales and use taxes (Part B); to amend the tax law, in relation to
providing a sales tax exemption for child restraint systems (Part C); to
amend the tax law, in relation to exemptions from sales and use taxes
(Part D); to amend the tax law, in relation to providing a sales tax
exemption for household cleaning products (Part E); and to amend the tax
law, in relation to providing a sales tax exemption for certain ready-
to-eat foods at grocery stores (Part F)
PURPOSE:
This bill enacts the Shop-NY Act that would:
Part A: This part would eliminate the State sales and compensating use
taxes on motor fuels and diesel motor fuels and authorizes localities to
eliminate their portion of such tax.
Part B: This part would eliminate State sales and compensating use taxes
on bicycle helmets, motorcycle helmets, snowmobile helmets, equestrian
helmets and sports helmets. It also authorizes localities to eliminate
their portion of such tax.
Part C: This part would eliminate the State sales and compensating use
taxes on child restraint systems and authorizes localities to eliminate
their portion of such tax.
Part D: This bill would eliminate State sales and compensating use taxes
on hygiene products and authorizes localities to eliminate their portion
of such tax.
Part E: This bill would eliminate the State sales and compensating use
taxes on household cleaning products and authorizes localities to elimi-
nate their portion of such tax.
Part F: This bill would eliminate the State sales and compensating use
taxes on certain ready-to-eat foods at grocery stores and authorize
localities to eliminate their portion of such tax.
SUMMARY OF PROVISIONS:
Section 1 creates the Shop-NY Act,
Part A:
Section 1 amends Subdivision (a) of section 1115 of the Tax Law by
adding a new paragraph (49) to exempt Motor Fuel and Diesel Motor Fuel
from New York State sales tax.
Section 2 through Section 6 amends the tax law to provide for the local
option to eliminate their portion of sales tax imposed on motor fuels
and diesel motor fuels.
Section 7 provides the effective date.
Part B:
Section 1 amends Subdivision (a) of section 1115 of the Tax Law is
amended by adding a new paragraph (44) to exempt Bicycle helmets, a new
paragraph (45) to exempt Motorcycle helmets, a new paragraph (46) to
exempt Snowmobile helmets, a new paragraph (47) to exempt Equestrian
helmets, and a new paragraph (48) to exempt Sports helmets, all from New
York State sales tax.
Section 2 through Section 6 amends the tax law to provide for the local
option to eliminate their portion of sales tax imposed on bicycle
helmets, motorcycle helmets, snowmobile helmets, equestrian helmets, and
sports helmets.
Section 7 provides the effective date.
Part C:
Section 1 amends Subdivision (a) of section 1115 of the Tax Law by
adding a new paragraph (50) to exempt Child Restraint Systems from New
York State sales tax.
Section 2 through Section 6 amends the tax law to provide for the local
option to eliminate their portion of sales tax imposed on child
restraint systems.
Section 7 provides the effective date.
Part D:
Section 1 and 2 amends Subdivision (a) of section 1115 of the Tax Law by
adding a new paragraph (51) to exempt hygiene products from New York
State sales tax.
Section 3 through Section 7 amends the tax law to provide for the local
option to eliminate their portion of sales tax imposed on hygiene
products.
Section 8 provides the effective date.
Part E:
Section 1 Subdivision (a) of section 1115 of the Tax Law by adding a new
paragraph (52) to exempt Household Cleaning Products from New York State
sales tax.
Section 2 through 6 amends the tax law to provide for the local option
to eliminate their portion of sales tax imposed on household cleaning
products.
Section 7 provides the effective date.
Part F:
Section 1 amends Subdivision (a) of section 1115 of the Tax Law by
adding a new paragraph (1-a) to exempt certain ready-to-eat foods sold
at grocery stores from New York State sales tax.
Section 2 through 7 amends the tax law to provide for the local option
to eliminate their portion of the sales and compensating use tax imposed
on certain ready-to-eat food items.
Section 8 provides the effective date.
JUSTIFICATION:
Part A:
The price of gasoline in New York State has a devastating effect on the
budgets of families across New York State. Currently, the State sales
tax is 8 cents/gallon and 8.75 cents/gallon in the MTA region on both
motor fuel and diesel motor fuel. Local governments impose their portion
of sales tax on motor fuel and diesel motor fuel at their authorized
local sales tax rate ranging from 3% to 4.75% or 8 cents to 10 cents per
gallon.
This bill will eliminate the State Sales and Compensating Use Taxes on
motor fuels and diesel motor fuels and authorizes localities to elimi-
nate their portion of such tax. Therefore, this bill would enact savings
ranging from 8 cents per gallon to 19 cents per gallon. Not only will
this ease the financial burden faced by families across New York State,
it will attract tourism, help businesses and create jobs.
Part B:
This bill would eliminate State sales and compensating use taxes on
bicycle helmets, motorcycle helmets, snow mobile helmets, equestrian
helmets and sports helmets. It also authorizes localities to eliminate
such tax.
Currently, State government requires helmets to be worn in various
riding and athletic activities. This is a common sense requirement;
however it places an unfunded mandate on individuals and groups across
the State. It is unfair for government to impose a tax on products that
are not only a necessity, but are also required by law. The State sales
tax is 4% and 4 3/8% in the MTA region. Local governments impose their
portion of sales tax ranging from 3% to 4.75%.
Part C:
This bill would exempt child restraint systems from State Sales and
Compensating Use Taxes and authorizes localities to eliminate their
portion of such tax. This would reduce the cost of these systems and
help young growing families.
Currently, the State and Federal government require children to be in
car seats. This is a common sense requirement; however it places an
unfunded mandate on families across the State. It is unfair for govern-
ment to impose a tax on a product that is not only a necessity for all
families with young children, but is also required by law. The State
sales tax is 4% and 4 3/8% in the MTA region. Local governments impose
their portion of sales tax ranging from 3% to 4.75%. Therefore, on a
$150 car seat families could save $12 in State and local Sales Tax.
Part D:
This amendment would exempt hygiene products from State Sales and
Compensating Use Taxes and authorizes localities to eliminate their
portion of such tax.
Hygiene products are a necessity for all individuals within New York
State, and it is unfair for governments to impose a tax on these
products. This would reduce the cost of hygiene products which are used
on a daily basis, for all New Yorkers. Personal hygiene products, as
determined by the Commissioner of Taxation and Finance, could include
but not be limited to: shampoo, conditioner, soap, body wash, dental
floss, tooth-brushes, toothpaste, mouthwash, deodorant, antiperspirant,
feminine hygiene products including sanitary napkins and tampons, toilet
paper, tissues, razors, shaving cream, cotton swabs, cotton balls,
disposable and non-disposable diapers, diaper rash ointments, baby
wipes.
The State sales tax is 4% and 4 3/8% in the MTA region. Local govern-
ments impose their portion of sales tax ranging from 3% to 4.75%.
Part E:
This amendment would exempt household cleaning products from State Sales
and Compensating Use Taxes and authorizes localities to eliminate their
portion of such tax.
Household cleaning products are another category of items which are a
necessity for all individuals within New York State. This would reduce
the cost of house hold cleaning products, which are used on a daily
basis for all New Yorkers. Household cleaning products as determined by
the Commissioner of Taxation and Finance could include but would not be
limited to: household cleaners, furniture polish, mopping and dusting
products, laundry detergent, bleach, paper towels, cleaning cloths, air
fresheners, and trash bags.
Part F:
This amendment would exempt certain ready-to-eat food items sold at
grocery stores from State Sales and Compensating Use Taxes and author-
izes localities to eliminate their portion of such tax.
Currently, any hot or ready-to-eat foods are subject to sales and
compensating use taxes in New York State. This bill seeks to make some
of these items when sold at a food store exempt from the State Sales and
Compensating Use Tax. This would provide immediate tax relief and
savings to all New Yorkers. Ready-to-eat food items would include: hot
rotisserie chicken, hot soup, cooked fish, food in store buffet's,
prepared and arranged food on a plate or plater.
LEGISLATIVE HISTORY:
A.1574 (2013-14), Held in Ways & Means;
A.10355 (2012), Referred to Ways & Means;
A.1574 (2014), Referred to Ways and Means;
A.5216 (2015), Referred to Ways and Means.
FISCAL IMPLICATIONS:
Part A: Approximately a loss of $490 million to the State General Fund.
Part B: To be determined. Part C: To be determined. Part D: To be deter-
mined. Part E: To be determined. Part F: To be determined.
EFFECTIVE DATE:
Part A: This act shall take effect on the first day of the sales tax
quarterly period next commencing at least 90 days after this act shall
have become law in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law. Part B: 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, beginning
at least 90 days after the date 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. Part C: 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, beginning at least 90
days after the date 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. Part D: 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, beginning at least 90 days after the
date 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. Part E: 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, beginning at least 90 days after the date this act
shall have become a law and shall apply in accordance with the applica-
ble transitional provisions of sections 1106 and 1217 of the tax law.
Part F: 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, beginning at least 90 days after the date 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.
