A08429 Summary:

BILL NOA08429
 
SAME ASSAME AS S01895
 
SPONSORBraunstein
 
COSPNSR
 
MLTSPNSR
 
Amd §1115, Tax L
 
Exempts certain dry cleaning equipment or machinery certified by the department of environmental conservation from sales and use taxes.
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A08429 Actions:

BILL NOA08429
 
12/29/2023referred to ways and means
01/03/2024referred to ways and means
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A08429 Committee Votes:

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A08429 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8429
 
SPONSOR: Braunstein
  TITLE OF BILL: An act to amend the tax law, in relation to exempting certain dry clean- ing equipment or machinery certified by the department of environmental conservation from sales and use taxes   PURPOSE OR GENERAL IDEA OF BILL: Exempts certain dry cleaning equipment or machinery certified by the Department of Environmental Conservation from sales and use taxes.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends subdivision (a) of Section 1115 of the tax law, by adding a new paragraph 45. Paragraph 45 exempts equipment or machinery from sales and use taxes if it is certified by the Department of Environmental Conservation for pollution prevention or control, which includes any process, facility, device, fixture, equipment or machinery used primarily for the control, prevention, or abatement of pollution or contaminants from the operation of a dry cleaning plant, including any structure, machinery or equipment installed in the reconstruction or replacement of such process, facility, device, fixture, equipment or machinery. This paragraph applies only to professional cleaning systems that do not rely on EPA Classified Hazardous Air Pollutants and qualify for or are exempt from air facility registration with the Department of Environ- mental Conservation.   JUSTIFICATION: In 1997, the New York State Department of Environmental Conservation adopted regulation Part 232, governing dry cleaners using perchloroethy- lene. According to the National Cleaners Association, Part 232 is the nation's most stringent dry cleaning regulation, making New York State dry cleaning operations the safest in relation to the environment and the workplace. However, the adoption of Part 232 has had a devastating impact on small business owners, since over half the cleaners in New York have gone out of business, along with the commensurate loss of jobs. In 1997 when Part 232 was adopted, over 4,000 dry cleaning facilities were registered statewide with the Department of Environmental Conserva- tion. As of 2017, the department has slightly less than 2,000 regis- tered. A financial incentive for those cleaners that remain in business, to help them invest in more modern eco-friendly operations, is the best way to encourage environmentally friendly choices. An exemption from sales tax would encourage and incentivize cleaners to make the more ecofriend- ly and expensive choice when purchasing new cleaning equipment. The cost of this equipment is estimated to be in excess of $65,000. According to the National Cleaners Association, a sales tax exemption would provide at least a $3,000 benefit to each dry cleaner. Therefore, this legislation would not only help to protect our environment, but will also help keep, dry cleaners in business and stem the major loss of jobs in the dry cleaning industry over the last 20 years.   PRIOR LEGISLATIVE HISTORY: 2017-2018: A.6914-A/S.5456-A - Amend and Recommit to Ways and Means. 2019-2020: A.565/S.4051 - Referred to Ways and Means. 2021-2022: A.495/S.4228 - Referred to Ways and Means.   FISCAL IMPACT: To be determined.   EFFECTIVE DATE: First day of the sales tax quarterly period, as designated in subdivi- sion (b) of Section 1136 of the tax law, next commencing after this act shall have become a law and shall apply to sales made on or after the effective date of this act; provided, however that effective immediate- ly, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of the foregoing provisions 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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A08429 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8429
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    December 29, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to exempting certain dry clean-
          ing equipment or machinery certified by  the  department  of  environ-
          mental conservation from sales and use taxes

          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)  Equipment  or  machinery certified by the department of environ-
     4  mental conservation, pursuant to regulations promulgated by such depart-
     5  ment, for pollution prevention or control which, for  purposes  of  this
     6  paragraph,  shall mean any process, facility, device, fixture, equipment
     7  or machinery used primarily for the control, prevention or abatement  of
     8  pollution  or  contaminants  from the operation of a dry cleaning plant,
     9  including any structure, machinery or equipment installed in the  recon-
    10  struction  or  replacement  of  such process, facility, device, fixture,
    11  equipment or machinery. This paragraph shall apply only to  professional
    12  cleaning systems that do not rely on EPA Classified Hazardous Air Pollu-
    13  tants  and qualify for or are exempt from air facility registration with
    14  the department of environmental conservation.
    15    § 2. This act shall take effect on the first  day  of  the  sales  tax
    16  quarterly  period,  as  designated in subdivision (b) of section 1136 of
    17  the tax law, next commencing after this act shall have become a law  and
    18  shall  apply  to  sales made on or after the effective date of this act.
    19  Effective immediately, the addition, amendment and/or repeal of any rule
    20  or regulation necessary for the implementation of this act on its effec-
    21  tive date are authorized to be made and  completed  on  or  before  such
    22  effective date.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05584-01-3
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