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.
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.
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
