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A03612 Summary:

BILL NOA03612
 
SAME ASNo Same As
 
SPONSORJones
 
COSPNSR
 
MLTSPNSR
 
Amd §1115, Tax L
 
Grants an exemption for the purchase of energy efficient snow making equipment, ski lift equipment, snow grooming equipment, and the production of snow by a recreational ski facility from state sales and compensating use tax.
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A03612 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3612
 
SPONSOR: Jones
  TITLE OF BILL: An act to amend the tax law, in relation to granting sales and compen- sating use tax exemptions for certain tangible personal property and services used in the operation of recreational skiing facilities   PURPOSE: This legislation, if enacted, would amend section 1115 of the Tax Law to state the purchase of energy efficient snow making equipment, ski lift equipment, snow grooming equipment, and the production of snow by a recreational ski facility are exempt from the New York State sales and compensating use tax.   SUMMARY OF PROVISIONS: Section 1- Amends subdivision (a) of section 1115 of the tax law by adding paragraph (47) to exempt the production of snow, uphill transpor- tation of skiers, and/or the grooming and maintenance of snow from sales and compensating use tax. Section 2 - Amends section 1115 of the tax law by,adding a new subdivi- sion (11) to exempt the production of snow by any person engaged in the business of operating a recreational facility for skiing and to groom snow by any recreational ski area from sales and compensating use tax. Section 3.- Contains the effective Date.   JUSTIFICATION: New York State ranks fifth in the nation in skier visits per year despite the fact that the state is the second highest when compared to the percentage of their population that skis. New York State currently exports a number of skiers and their families to the New England states. In order to remain competitive with our neighbors to the east which aggressively campaigns for our skiers and those whom visit New York, this state needs to upgrade equipment and maintain state of the art snowmaking systems, and this legislation will greatly assist them in the purchase of new equipment and upgrading of snowmaking systems. The ski industry employs over 10,000 New York State residents serving on average 4 million skier visits per year with an economic impact of over $1 billion. With over 40 ski areas, New York State has more ski areas than any other state with over $4.8 million in sales tax paid each year. Local property taxes paid amount to over $3.5 million. Snow making is critical to the ski industry and this legislation will provide energy tax relief, which is one of the highest expenses faced each winter season. The three state owned ski areas in New York State are exempt from the state sales tax, while privately owned ski areas are not. This has created an unfair business environment for these privately owned ski areas, many of which are located in upstate New York. This bill would provide that all ski areas that purchase energy efficient snow making equipment and make snow shall be exempt from this tax. The fuel, gas, electricity, and refrigeration, and gas, electric, and refrigeration services used directly for the production of snow would now be exempt from the state sales tax as will the energy efficient equipment. The manufacture of snow is not eligible for a tax exemption under the defi- nition of manufacturing because snow is not sold as a product. The climate and business environment has changed such that ski areas must make snow to remain viable in this industry. This legislation would eliminate the sales tax on the purchase of quali- fying energy efficient lift and grooming equipment. New safer equipment to transport skiers has become available that will move more people with less energy and manpower required. Grooming equipment is powered by diesel fuel, and advancements in such technology has made the newer machines much more energy efficient with less emission and more horse- power. Wisconsin, Minnesota, Utah and Colorado have enacted similar laws that apply not only to the purchase of new energy efficient equipment but also for the use and compensating tax on snowmaking energy.   LEGISLATIVE HISTORY: 03/23/23 referred to ways and means 01/03/24 referred to ways and means   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
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A03612 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3612
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2025
                                       ___________
 
        Introduced  by M. of A. JONES -- read once and referred to the Committee
          on Ways and Means
 
        AN ACT to amend the tax law, in relation to granting sales  and  compen-
          sating  use  tax exemptions for certain tangible personal property and
          services used in the operation of recreational skiing facilities

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision (a) of section 1115 of the tax law is amended
     2  by adding a new paragraph 47 to read as follows:
     3    (47) Energy efficient tangible personal property  of  whatever  nature
     4  for  use  or consumption directly and exclusively: (i) in the production
     5  of snow; (ii) in the uphill transportation of skiers; or  (iii)  in  the
     6  grooming  and  maintenance of snow by any person engaged in the business
     7  of operating a recreational facility for skiing.
     8    § 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
     9  sion (mm) to read as follows:
    10    (mm)  Fuel,  gas, electricity and refrigeration, and gas, electric and
    11  refrigeration service of whatever nature for use or consumption directly
    12  and exclusively in the production of snow by any person engaged  in  the
    13  business  of  operating  a  recreational  facility  for skiing, shall be
    14  exempt from the taxes imposed under subdivisions (a) and (b) of  section
    15  eleven  hundred  five and the compensating use tax imposed under section
    16  eleven hundred ten of this article.
    17    § 3. This act shall take effect on the first of July  next  succeeding
    18  the date on which it shall have become a law.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07683-01-5
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