|SAME AS||No Same As|
|COSPNSR||Galef, Kavanagh, Schimel, Paulin, Rosenthal, Rodriguez|
|Add §1113, Tax L|
|Imposes a five cent tax on plastic and paper shopping bags used to transport every sale of tangible personal property by consumers; provides for certain exemptions and imposes limitations on the size of plastic and paper bags used for the sale of tangible personal property.|
|10/09/2015||referred to ways and means|
|01/06/2016||referred to ways and means|
|06/02/2016||amend (t) and recommit to ways and means|
|06/02/2016||print number 8479a|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8479A SPONSOR: Ortiz (MS)
TITLE OF BILL: An act to amend the tax law, in relation to imposing a tax on plastic and paper shopping bags used to transport every sale of tangible personal property by consumers   PURPOSE OF THE BILL: This bill would encourage consumers to use long-lasting reusable shop- ping bags, thereby drastically reducing the amount of plastic and paper bags consumed and disposed of. These bags are hazardous to the environ- ment, contribute to the solid waste stream, and increase greenhouse gases which contribute to global warming.   SUMMARY OF SPECIFIC PROVISIONS: This bill amends the tax law by adding a new section 1113. This section calls for the imposition of a five cent tax on plastic and paper shop- ping bags used to transport every sale of tangible personal property by consumers. The tax imposed would apply at point of sale in shops, supermarkets, service stations and all sales outlets. Retailers pass on the full amount of such tax as a charge to the customer during checkout. The tax shall be itemized on all invoices, receipts, or dockets issued to customers at the point of sale. The following uses shall be still be allowed and not subject to the tax: plastic bags containing fresh meat, fish or poultry; non-packed fruit, nuts or vegetables, confectionery, dairy products, cooked food or ice; plastic bags used to store products sold on aircrafts or ships; reusable bags sold to customers for a sum not less than seventy-five cents; and any plastic bag brought to the store by the customer to be used during the sale of tangible personal property. * The amendments to this bill provide exemption to the tax for the following: o Purchases made with benefits from the supplemental nutrition assist- ance program (SNAP); o Purchases made under the special supplemental nutrition assistance program for women, infants, and children (WIC); and o Purchases by customers 65 years or older. *The bill is also amended to provide that all funds collected pursuant to this bill will go into the climate change mitigation and adaptation account of the environmental protection fund (EPF).   JUSTIFICATION: Research shows the average operating 'lifespan' of a plastic bag to be approximately 20 minutes, yet plastic bags can last in a landfill - an anaerobic environment - for up to 1,000 years. Plastic bags are respon- sible for massive disposal problems including unsightly litter, flood- ing, and the death of both sea and land animals that mistake them for food. Made of polyethylene, they are also hazardous to manufacture and take centuries to decompose. In many countries of the world, there has been a phase-out of light- weight plastic bags. Single-use plastic shopping bags, commonly made from high-density polyethylene (HOPE) plastic, have traditionally been given free to customers by stores when purchasing goods-a popular method considered a strong, cheap, and hygienic way of transporting items. Problems associated with plastic bags include use of non-renewable resources (such as crude oil, gas and coal), disposal, and environmental impacts. With lightweight reusable bags readily available at little cost, there is every reason for New York to join the rest of the world in making a greater effort to reduce the use and disposal of single use plastic bags. Governments all over the world have taken action to completely ban the sale of lightweight bags, charge customers for lightweight bags and/or generate taxes from the stores who sell them. The Bangladesh government was the first to do so in 2002, imposing a total ban on the bag. Such a ban has also been applied in countries such as Rwanda, China, Taiwan and Macedonia. Over ten countries in Western Europe impose a fee per bag. Bans, partial bans, and fees have been enacted by some local jurisdic- tions in Australia, the United Kingdom, and Myanmar. Concurrently with the reduction in lightweight plastic bags, many shops have introduced reusable shopping bags. As of July 2014, 20 states and 132 cities & counties across the U.S. had either plastic bag bans in place or pending. This means some 20 million U.S citizens are now living in an area where plastic bags are banned. The U.S alone uses 12 million barrels of oil every year to meet plastic bag demand. Every year in the U.S one hundred billion plastic bags are discarded. Paper bags are equally detrimental to the environ- ment and by some analysis have an even greater carbon footprint - that is, the amount of greenhouse gas that is produced during the life cycle of the bag - than plastic because of the greater resources needed to produce them. The bill recently passed by the New York City Council (May 2016) would require most stores to charge a 5-cent fee for any plastic or paper bags provided to consumers at check-out. Low-income consumers paying for any part of their purchase with SNAP or WIC are exempt from the charge. The City will also undertake a large-scale giveaway of reusable bags and extensive outreach, particularly targeting low-income communities. The purpose of the fee is not to raise money, but to encourage a change in behavior so that people will switch to reusable bags. Assembly bill A8479A would make such a tax, at the same rate of 5 cents per bag, apply also to both plastic and paper bags and would be state- wide. It significantly mirrors the provisions of the City Council bill with the same exemptions for seniors and low income families. One nota- ble difference is that this bill would place revenue generated by the tax into the climate change and adaptation fund within the EPF.   PRIOR LEGISLATIVE HISTORY: 2007/08: A7173 Referred to Ways and Means 2009/10: A6537 Held in Ways and Means 2011/12: A1142 Held in Ways and Means 2013/14: A3113 Referred to Ways and Means 2015: Referred to Ways and Means   FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENT: Revenue generated for the state by the tax would be deposited in the climate change and mitigation adaptation account of the environmental protection fund (EPF).   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law; provided, however that effec- tive 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 and directed to be made and completed on or before such effective date.
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STATE OF NEW YORK ________________________________________________________________________ 8479--A 2015-2016 Regular Sessions IN ASSEMBLY October 9, 2015 ___________ Introduced by M. of A. ORTIZ, GALEF, KAVANAGH, SCHIMEL, PAULIN, ROSEN- THAL -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to imposing a tax on plastic and paper shopping bags used to transport every sale of tangible personal property by consumers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 1113 to read 2 as follows: 3 § 1113. Imposition of tax; plastic and paper shopping bags. (a) There 4 is hereby imposed and there shall be paid a tax of five cents upon plas- 5 tic and paper shopping bags used to transport every sale of tangible 6 personal property by consumers. 7 (b)(1) The tax imposed, pursuant to subdivision (a) of this section, 8 shall apply at the point of sale in shops, supermarkets, service 9 stations and all sales outlets. Retailers shall pass on the full amount 10 of such tax as a charge to the customer during his or her checkout. 11 (2) Such tax shall be itemized on all invoices, receipts or dockets 12 issued to customers at the point of sale. 13 (c) The following shall be exempt from the tax imposed pursuant to 14 subdivision (a) of this section: 15 (1) Plastic and paper bags containing fresh meat, fish or poultry; 16 (2) Plastic and paper bags containing non-packed fruit, nuts or vege- 17 tables, confectionery, dairy products, cooked food or ice; 18 (3) Plastic and paper bags used to store products sold on board 19 aircraft or ships; 20 (4) Reuseable bags sold to customers for a sum not less than seventy- 21 five cents; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04085-04-6A. 8479--A 2 1 (5) Any plastic or paper bag brought to the store by the customer to 2 be used during the sale of tangible personal property; 3 (6) Plastic and paper bags containing products purchased with benefits 4 received by the customer under the supplemental nutrition assistance 5 program (SNAP), the special supplemental nutrition program for women, 6 infants and children (WIC), or any successor programs; and 7 (7) Plastic and paper bags containing products purchased by a customer 8 sixty-five years of age or older. 9 (d) If any other item is placed in a plastic or paper bag exempted by 10 subdivision (c) of this section, such customer shall be charged the five 11 cent tax during his or her checkout. 12 (e) Plastic and paper bags used for every sale of tangible personal 13 property shall not be larger than two hundred fifty millimeters by three 14 hundred forty-five millimeters by four hundred fifty millimeters. 15 (f) All funds collected pursuant to the tax imposed by this section 16 shall be deposited into the climate change mitigation and adaptation 17 account of the environmental protection fund established pursuant to 18 subparagraph (iv) of paragraph a of subdivision two of section ninety- 19 two-s of the state finance law. 20 § 2. This act shall take effect on the first of January next succeed- 21 ing the date on which it shall have become a law. Effective immediate- 22 ly, the addition, amendment and/or repeal of any rule or regulation 23 necessary for the implementation of this act on its effective date are 24 authorized and directed to be made and completed on or before such 25 effective date.