Rpld §1115 sub (a) ¶29, §1118 subs 9 & 10, amd §1118, Tax L
Repeals certain provisions relating to use tax exemptions for certain race horses; prevents nonresident race horse owners from avoiding use tax in certain situations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3063
SPONSOR: Rosenthal TITLE OF BILL:
An act to amend the tax law, in relation to use tax exemptions for
certain race horses; and to repeal certain provisions of such law relat-
ing thereto
PURPOSE:
This bill would eliminate certain tax exemptions for horse racing in New
York State.
SUMMARY OF SPECIFIC PROVISIONS:
Section one repeals paragraph 29 of subdivision (a) of section 1115 of
the tax law.
Section two repeals subdivisions 9 and 10 of section 1118 of the tax
law.
Section three amends paragraph (b) of subdivision 2 of section 1118 of
the tax law.
Section four establishes the effective date.
JUSTIFICATION:
Horse racing attendance in New York State has sharply declined over the
years. While the summer racing season at Saratoga remains popular,
stands at Yonkers Raceway, Aqueduct Racetrack and others have become
practically empty. The decline in the popularity of horse racing in
recent years has been partly attributed to the public's increasing
disapproval of cruelty within the industry, evidenced by doping scandals
and high numbers of injuries and deaths. Despite horse racing's dimin-
ishing attraction, New York State continues to provide millions of
dollars in subsidies each year to prop up the industry. Other states,
including Kentucky, California, Illinois, and Texas do not provide state
subsidies to their racing industry' as New York does.
New York State also exempts the purchase of race horses from state sales
and use taxes. These horses, which cost tens of thousands of dollars,
are purchased by wealthy individuals who can afford to pay the tax. By
beginning to eliminate the tax exemptions and subsidies provided to the
racing industry, New York can make greater investments in education,
housing and other underfunded areas.
LEGISLATIVE HISTORY:
2023-24: A.1438 - Referred to Ways and Means; S.481 - Committed to
Finance
2021-22: A.7745 - Referred to Ways and Means; S.7260 - Referred to Budg-
et and Revenue
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
3063
2025-2026 Regular Sessions
IN ASSEMBLY
January 23, 2025
___________
Introduced by M. of A. ROSENTHAL, SIMON, KIM, MAMDANI, SEAWRIGHT, GLICK,
FORREST, GALLAGHER, GONZALEZ-ROJAS, KELLES, REYES, BORES, SHRESTHA,
SIMONE, COLTON, DAVILA, BICHOTTE HERMELYN, EPSTEIN -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to use tax exemptions for
certain race horses; and to repeal certain provisions of such law
relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 29 of subdivision (a) of section 1115 of the tax
2 law is REPEALED.
3 § 2. Subdivisions 9 and 10 of section 1118 of the tax law are
4 REPEALED.
5 § 3. Paragraph (b) of subdivision 2 of section 1118 of the tax law, as
6 added by section 2 of part CC of chapter 59 of the laws of 2017, is
7 amended to read as follows:
8 (b) Notwithstanding any provision of this article to the contrary, the
9 exclusion in paragraph (a) of this subdivision shall not apply to the
10 use within the state of property or a service purchased outside this
11 state by a nonresident that is not an individual, unless such nonresi-
12 dent has been doing business outside the state for at least six months
13 prior to the date such nonresident brought such property or service into
14 this state. For purposes of this paragraph, the exclusion in paragraph
15 (a) of this subdivision shall not apply to any nonresident that is not
16 an individual when the property purchased by such nonresident is a horse
17 or horses brought into the state for racing, regardless of whether such
18 nonresident has been doing business outside the state for at least six
19 months prior to the date such horse or horses were brought into the
20 state for racing.
21 § 4. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00596-01-5
