Bill Text: NY A01690 | 2023-2024 | General Assembly | Introduced
Bill Title: Eliminates state sales and compensating use taxes on motor fuels and diesel motor fuels; authorizes localities to eliminate such taxes at the local level; establishes various exemptions from New York's sales and use tax; provides for a sales tax exemption for housekeeping supplies and for ready-to-eat foods.
Spectrum: Partisan Bill (Republican 38-1)
Status: (Introduced) 2024-01-03 - referred to ways and means [A01690 Detail]
Download: New_York-2023-A01690-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1690 2023-2024 Regular Sessions IN ASSEMBLY January 17, 2023 ___________ Introduced by M. of A. BARCLAY, RA, TANNOUSIS, J. M. GIGLIO, BRABENEC, BLANKENBUSH, GANDOLFO, TAGUE, WALSH, SMULLEN, SMITH, SIMPSON, NORRIS, PALMESANO, REILLY, MANKTELOW, LEMONDES, HAWLEY, GOODELL, J. A. GIGLIO, GALLAHAN, FRIEND, FITZPATRICK, DURSO, DeSTEFANO, ANGELINO, K. BROWN, JENSEN, MIKULIN, MORINELLO, MILLER, BYRNES, McDONOUGH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to eliminating state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizing localities to eliminate such taxes at the local level; and providing for the repeal of such provisions upon expiration thereof (Part A); to amend the tax law, in relation to exemptions from sales and use taxes; and providing for the repeal of such provisions upon expiration thereof (Part B); to amend the tax law, in relation to providing a sales tax exemption for housekeeping supplies; and provid- ing for the repeal of such provisions upon expiration thereof (Part C); and to amend the tax law, in relation to providing a sales tax exemption for ready-to-eat foods; and providing for the repeal of such provisions upon expiration thereof (Part D) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law components of legislation relating 2 to establishing various exemptions from New York's sales and compensat- 3 ing use tax. Each component is wholly contained within a Part identi- 4 fied as Parts A through D. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05328-01-3A. 1690 2 1 PART A 2 Section 1. Subdivision (a) of section 1115 of the tax law is amended 3 by adding a new paragraph 47 to read as follows: 4 (47) Motor fuel and diesel motor fuel. 5 § 2. Subdivision (b) of section 1107 of the tax law is amended by 6 adding a new clause 12 to read as follows: 7 (12) Except as otherwise provided by law, the exemption provided in 8 paragraph forty-seven of subdivision (a) of section eleven hundred 9 fifteen of this article relating to motor fuel and diesel motor fuel 10 shall be applicable pursuant to a local law, ordinance or resolution 11 adopted by a city subject to the provisions of this section. Such city 12 is empowered to adopt or repeal such a local law, ordinance or resol- 13 ution. Such adoption or repeal shall also be deemed to amend any local 14 law, ordinance or resolution enacted by such a city imposing taxes 15 pursuant to the authority of subdivision (a) of section twelve hundred 16 ten of this chapter. 17 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 18 amended by section 5 of part J of chapter 59 of the laws of 2021, is 19 amended to read as follows: 20 (1) Either, all of the taxes described in article twenty-eight of this 21 chapter, at the same uniform rate, as to which taxes all provisions of 22 the local laws, ordinances or resolutions imposing such taxes shall be 23 identical, except as to rate and except as otherwise provided, with the 24 corresponding provisions in such article twenty-eight, including the 25 definition and exemption provisions of such article, so far as the 26 provisions of such article twenty-eight can be made applicable to the 27 taxes imposed by such city or county and with such limitations and 28 special provisions as are set forth in this article. The taxes author- 29 ized under this subdivision may not be imposed by a city or county 30 unless the local law, ordinance or resolution imposes such taxes so as 31 to include all portions and all types of receipts, charges or rents, 32 subject to state tax under sections eleven hundred five and eleven 33 hundred ten of this chapter, except as otherwise provided. Notwith- 34 standing the foregoing, a tax imposed by a city or county authorized 35 under this subdivision shall not include the tax imposed on charges for 36 admission to race tracks and simulcast facilities under subdivision (f) 37 of section eleven hundred five of this chapter. (i) Any local law, ordi- 38 nance or resolution enacted by any city of less than one million or by 39 any county or school district, imposing the taxes authorized by this 40 subdivision, shall, notwithstanding any provision of law to the contra- 41 ry, exclude from the operation of such local taxes all sales of tangible 42 personal property for use or consumption directly and predominantly in 43 the production of tangible personal property, gas, electricity, refrig- 44 eration or steam, for sale, by manufacturing, processing, generating, 45 assembly, refining, mining or extracting; and all sales of tangible 46 personal property for use or consumption predominantly either in the 47 production of tangible personal property, for sale, by farming or in a 48 commercial horse boarding operation, or in both; and all sales of fuel 49 sold for use in commercial aircraft and general aviation aircraft; and, 50 unless such city, county or school district elects otherwise, shall omit 51 the provision for credit or refund contained in clause six of subdivi- 52 sion (a) or subdivision (d) of section eleven hundred nineteen of this 53 chapter. (ii) Any local law, ordinance or resolution enacted by any 54 city, county or school district, imposing the taxes authorized by this 55 subdivision, shall omit the residential solar energy systems equipmentA. 1690 3 1 and electricity exemption provided for in subdivision (ee), the commer- 2 cial solar energy systems equipment and electricity exemption provided 3 for in subdivision (ii), the commercial fuel cell electricity generating 4 systems equipment and electricity generated by such equipment exemption 5 provided for in subdivision (kk) and the clothing and footwear exemption 6 provided for in paragraph thirty of subdivision (a) of section eleven 7 hundred fifteen of this chapter, unless such city, county or school 8 district elects otherwise as to such residential solar energy systems 9 equipment and electricity exemption, such commercial solar energy 10 systems equipment and electricity exemption, commercial fuel cell elec- 11 tricity generating systems equipment and electricity generated by such 12 equipment exemption or such clothing and footwear exemption. (iii) Any 13 local law, ordinance or resolution enacted by any city, county or school 14 district, imposing the taxes authorized by this subdivision, shall omit 15 the motor fuel and diesel motor fuel exemption provided for in paragraph 16 forty-seven of subdivision (a) of section eleven hundred fifteen of this 17 chapter, unless such city, county or school district elects otherwise; 18 provided that if such a city having a population of one million or more 19 enacts the resolution described in subdivision (q) of this section or 20 repeals such resolution, such resolution or repeal shall also be deemed 21 to amend any local law, ordinance or resolution enacted by such a city 22 imposing such taxes pursuant to the authority of this subdivision, 23 whether or not such taxes are suspended at the time such city enacts its 24 resolution pursuant to subdivision (q) of this section or at the time of 25 any such repeal; provided, further, that any such local law, ordinance 26 or resolution and section eleven hundred seven of this chapter, as 27 deemed to be amended in the event a city of one million or more enacts a 28 resolution pursuant to the authority of subdivision (q) of this section, 29 shall be further amended, as provided in section twelve hundred eighteen 30 of this subpart, so that the motor fuel and diesel motor fuel exemption 31 in any such local law, ordinance or resolution or in such section eleven 32 hundred seven of this chapter is the same as the motor fuel and diesel 33 motor fuel exemption in paragraph forty-seven of subdivision (a) of 34 section eleven hundred fifteen of this chapter. 35 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 36 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 37 read as follows: 38 (d) A local law, ordinance or resolution imposing any tax pursuant to 39 this section, increasing or decreasing the rate of such tax, repealing 40 or suspending such tax, exempting from such tax the energy sources and 41 services described in paragraph three of subdivision (a) or of subdivi- 42 sion (b) of this section or changing the rate of tax imposed on such 43 energy sources and services or providing for the credit or refund 44 described in clause six of subdivision (a) of section eleven hundred 45 nineteen of this chapter, or electing or repealing the exemption for 46 residential solar equipment and electricity in subdivision (ee) of 47 section eleven hundred fifteen of this article, or the exemption for 48 commercial solar equipment and electricity in subdivision (ii) of 49 section eleven hundred fifteen of this article, or electing or repealing 50 the exemption for commercial fuel cell electricity generating systems 51 equipment and electricity generated by such equipment in subdivision 52 (kk) of section eleven hundred fifteen of this article must go into 53 effect only on one of the following dates: March first, June first, 54 September first or December first; provided, that a local law, ordinance 55 or resolution providing for the exemption described in paragraph thirty 56 of subdivision (a) of section eleven hundred fifteen of this chapter orA. 1690 4 1 repealing any such exemption or a local law, ordinance or resolution 2 providing for a refund or credit described in subdivision (d) of section 3 eleven hundred nineteen of this chapter or repealing such provision so 4 provided must go into effect only on March first; provided, further, 5 that a local law, ordinance or resolution providing for the exemption 6 described in paragraph forty-seven of subdivision (a) of section eleven 7 hundred fifteen of this chapter or repealing any such exemption so 8 provided and a resolution enacted pursuant to the authority of subdivi- 9 sion (q) of this section providing such exemption or repealing such 10 exemption so provided may go into effect immediately. No such local law, 11 ordinance or resolution shall be effective unless a certified copy of 12 such law, ordinance or resolution is mailed by registered or certified 13 mail to the commissioner at the commissioner's office in Albany at least 14 ninety days prior to the date it is to become effective. However, the 15 commissioner may waive and reduce such ninety-day minimum notice 16 requirement to a mailing of such certified copy by registered or certi- 17 fied mail within a period of not less than thirty days prior to such 18 effective date if the commissioner deems such action to be consistent 19 with the commissioner's duties under section twelve hundred fifty of 20 this article and the commissioner acts by resolution. Where the 21 restriction provided for in section twelve hundred twenty-three of this 22 article as to the effective date of a tax and the notice requirement 23 provided for therein are applicable and have not been waived, the 24 restriction and notice requirement in section twelve hundred twenty- 25 three of this article shall also apply. 26 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 27 sion (q) to read as follows: 28 (q) Notwithstanding any other provision of state or local law, ordi- 29 nance or resolution to the contrary: 30 (1) Any city having a population of one million or more in which the 31 taxes imposed by section eleven hundred seven of this chapter are in 32 effect, acting through its local legislative body, is hereby authorized 33 and empowered to elect to provide the exemption from such taxes for the 34 same motor fuel and diesel motor fuel exempt from state sales and 35 compensating use taxes described in paragraph forty-seven of subdivision 36 (a) of section eleven hundred fifteen of this chapter by enacting a 37 resolution in the form set forth in paragraph two of this subdivision; 38 whereupon, upon compliance with the provisions of subdivisions (d) and 39 (e) of this section, such enactment of such resolution shall be deemed 40 to be an amendment to such section eleven hundred seven and such section 41 eleven hundred seven shall be deemed to incorporate such exemption as if 42 it had been duly enacted by the state legislature and approved by the 43 governor. 44 (2) Form of Resolution: Be it enacted by the (insert proper title of 45 local legislative body) as follows: 46 Section one. Receipts from sales of and consideration given or 47 contracted to be given for purchases of motor fuel and diesel motor fuel 48 exempt from state sales and compensating use taxes pursuant to paragraph 49 forty-seven of subdivision (a) of section eleven hundred fifteen of the 50 tax law shall also be exempt from sales and compensating use taxes 51 imposed in this jurisdiction. 52 Section two. This resolution shall take effect, (insert the date) and 53 shall apply to sales made and uses occurring on and after that date 54 although made or occurring under a prior contract. 55 § 6. The commissioner of taxation and finance is hereby authorized to 56 implement the provisions of this act with respect to the elimination ofA. 1690 5 1 the imposition of sales tax, additional taxes, and supplemental taxes on 2 diesel motor fuel and motor fuel and all other taxes so addressed by 3 this act. 4 § 7. This act shall take effect on the first day of the sales tax 5 quarterly period, as described in subdivision (b) of section 1136 of the 6 tax law, next commencing at least 90 days after this act shall have 7 become a law and shall apply in accordance with the applicable transi- 8 tional provisions of sections 1106 and 1217 of the tax law and shall 9 expire and be deemed repealed two years after such date. 10 PART B 11 Section 1. Paragraph 3 of subdivision (a) of section 1115 of the tax 12 law, as amended by chapter 201 of the laws of 1976, is amended to read 13 as follows: 14 (3) Drugs and medicines intended for use, internally or externally, in 15 the cure, mitigation, treatment or prevention of illnesses or diseases 16 in human beings, medical equipment (including component parts thereof) 17 and supplies required for such use or to correct or alleviate physical 18 incapacity, and products consumed by humans for the preservation of 19 health but not including cosmetics [or toilet articles] notwithstanding 20 the presence of medicinal ingredients therein or medical equipment 21 (including component parts thereof) and supplies, other than such drugs 22 and medicines, purchased at retail for use in performing medical and 23 similar services for compensation. 24 § 2. Subdivision (a) of section 1115 of the tax law is amended by 25 adding a new paragraph 48 to read as follows: 26 (48) Personal care products as determined by the commissioner. 27 § 3. Subdivision (b) of section 1107 of the tax law is amended by 28 adding a new clause 13 to read as follows: 29 (13) Except as otherwise provided by law, the exemption provided in 30 paragraph forty-eight of subdivision (a) of section eleven hundred 31 fifteen of this article relating to personal care products shall be 32 applicable pursuant to a local law, ordinance or resolution adopted by a 33 city subject to the provisions of this section. Such city is empowered 34 to adopt or repeal such a local law, ordinance or resolution. Such 35 adoption or repeal shall also be deemed to amend any local law, ordi- 36 nance or resolution enacted by such a city imposing taxes pursuant to 37 the authority of subdivision (a) of section twelve hundred ten of this 38 chapter. 39 § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 40 amended by section 5 of part J of chapter 59 of the laws of 2021, is 41 amended to read as follows: 42 (1) Either, all of the taxes described in article twenty-eight of this 43 chapter, at the same uniform rate, as to which taxes all provisions of 44 the local laws, ordinances or resolutions imposing such taxes shall be 45 identical, except as to rate and except as otherwise provided, with the 46 corresponding provisions in such article twenty-eight, including the 47 definition and exemption provisions of such article, so far as the 48 provisions of such article twenty-eight can be made applicable to the 49 taxes imposed by such city or county and with such limitations and 50 special provisions as are set forth in this article. The taxes author- 51 ized under this subdivision may not be imposed by a city or county 52 unless the local law, ordinance or resolution imposes such taxes so as 53 to include all portions and all types of receipts, charges or rents, 54 subject to state tax under sections eleven hundred five and elevenA. 1690 6 1 hundred ten of this chapter, except as otherwise provided. Notwith- 2 standing the foregoing, a tax imposed by a city or county authorized 3 under this subdivision shall not include the tax imposed on charges for 4 admission to race tracks and simulcast facilities under subdivision (f) 5 of section eleven hundred five of this chapter. (i) Any local law, ordi- 6 nance or resolution enacted by any city of less than one million or by 7 any county or school district, imposing the taxes authorized by this 8 subdivision, shall, notwithstanding any provision of law to the contra- 9 ry, exclude from the operation of such local taxes all sales of tangible 10 personal property for use or consumption directly and predominantly in 11 the production of tangible personal property, gas, electricity, refrig- 12 eration or steam, for sale, by manufacturing, processing, generating, 13 assembly, refining, mining or extracting; and all sales of tangible 14 personal property for use or consumption predominantly either in the 15 production of tangible personal property, for sale, by farming or in a 16 commercial horse boarding operation, or in both; and all sales of fuel 17 sold for use in commercial aircraft and general aviation aircraft; and, 18 unless such city, county or school district elects otherwise, shall omit 19 the provision for credit or refund contained in clause six of subdivi- 20 sion (a) or subdivision (d) of section eleven hundred nineteen of this 21 chapter. (ii) Any local law, ordinance or resolution enacted by any 22 city, county or school district, imposing the taxes authorized by this 23 subdivision, shall omit the residential solar energy systems equipment 24 and electricity exemption provided for in subdivision (ee), the commer- 25 cial solar energy systems equipment and electricity exemption provided 26 for in subdivision (ii), the commercial fuel cell electricity generating 27 systems equipment and electricity generated by such equipment exemption 28 provided for in subdivision (kk) and the clothing and footwear exemption 29 provided for in paragraph thirty of subdivision (a) of section eleven 30 hundred fifteen of this chapter, unless such city, county or school 31 district elects otherwise as to such residential solar energy systems 32 equipment and electricity exemption, such commercial solar energy 33 systems equipment and electricity exemption, commercial fuel cell elec- 34 tricity generating systems equipment and electricity generated by such 35 equipment exemption or such clothing and footwear exemption. (iii) Any 36 local law, ordinance or resolution enacted by any city, county or school 37 district, imposing the taxes authorized by this subdivision, shall omit 38 the personal care products exemption provided for in paragraph forty- 39 eight of subdivision (a) of section eleven hundred fifteen of this chap- 40 ter, unless such city, county or school district elects otherwise; 41 provided that if such a city having a population of one million or more 42 enacts the resolution described in subdivision (r) of this section or 43 repeals such resolution, such resolution or repeal shall also be deemed 44 to amend any local law, ordinance or resolution enacted by such a city 45 imposing such taxes pursuant to the authority of this subdivision, 46 whether or not such taxes are suspended at the time such city enacts its 47 resolution pursuant to subdivision (r) of this section or at the time of 48 such repeal; provided, further, that any such local law, ordinance or 49 resolution and section eleven hundred seven of this chapter, as deemed 50 to be amended in the event a city of one million or more enacts a resol- 51 ution pursuant to the authority of subdivision (r) of this section, 52 shall be further amended, as provided in section twelve hundred eighteen 53 of this subpart, so that the personal care products exemption in any 54 such local law, ordinance or resolution or in such section eleven 55 hundred seven of this chapter is the same as the personal care productsA. 1690 7 1 exemption in paragraph forty-eight of subdivision (a) of section eleven 2 hundred fifteen of this chapter. 3 § 5. Subdivision (d) of section 1210 of the tax law, as amended by 4 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 5 read as follows: 6 (d) A local law, ordinance or resolution imposing any tax pursuant to 7 this section, increasing or decreasing the rate of such tax, repealing 8 or suspending such tax, exempting from such tax the energy sources and 9 services described in paragraph three of subdivision (a) or of subdivi- 10 sion (b) of this section or changing the rate of tax imposed on such 11 energy sources and services or providing for the credit or refund 12 described in clause six of subdivision (a) of section eleven hundred 13 nineteen of this chapter, or electing or repealing the exemption for 14 residential solar equipment and electricity in subdivision (ee) of 15 section eleven hundred fifteen of this article, or the exemption for 16 commercial solar equipment and electricity in subdivision (ii) of 17 section eleven hundred fifteen of this article, or electing or repealing 18 the exemption for commercial fuel cell electricity generating systems 19 equipment and electricity generated by such equipment in subdivision 20 (kk) of section eleven hundred fifteen of this article must go into 21 effect only on one of the following dates: March first, June first, 22 September first or December first; provided, that a local law, ordinance 23 or resolution providing for the exemption described in paragraph thirty 24 of subdivision (a) of section eleven hundred fifteen of this chapter or 25 repealing any such exemption or a local law, ordinance or resolution 26 providing for a refund or credit described in subdivision (d) of section 27 eleven hundred nineteen of this chapter or repealing such provision so 28 provided must go into effect only on March first; provided, further, 29 that a local law, ordinance or resolution providing for the exemption 30 described in paragraph forty-eight of subdivision (a) of section eleven 31 hundred fifteen of this chapter or repealing any such exemption so 32 provided and a resolution enacted pursuant to the authority of subdivi- 33 sion (r) of this section providing such exemption or repealing such 34 exemption so provided may go into effect immediately. No such local law, 35 ordinance or resolution shall be effective unless a certified copy of 36 such law, ordinance or resolution is mailed by registered or certified 37 mail to the commissioner at the commissioner's office in Albany at least 38 ninety days prior to the date it is to become effective. However, the 39 commissioner may waive and reduce such ninety-day minimum notice 40 requirement to a mailing of such certified copy by registered or certi- 41 fied mail within a period of not less than thirty days prior to such 42 effective date if the commissioner deems such action to be consistent 43 with the commissioner's duties under section twelve hundred fifty of 44 this article and the commissioner acts by resolution. Where the 45 restriction provided for in section twelve hundred twenty-three of this 46 article as to the effective date of a tax and the notice requirement 47 provided for therein are applicable and have not been waived, the 48 restriction and notice requirement in section twelve hundred twenty- 49 three of this article shall also apply. 50 § 6. Section 1210 of the tax law is amended by adding a new subdivi- 51 sion (r) to read as follows: 52 (r) Notwithstanding any other provision of state or local law, ordi- 53 nance or resolution to the contrary: (1) Any city having a population of 54 one million or more in which the taxes imposed by section eleven hundred 55 seven of this chapter are in effect, acting through its local legisla- 56 tive body, is hereby authorized and empowered to elect to provide theA. 1690 8 1 exemption from such taxes for the same personal care products exempt 2 from state sales and compensating use taxes described in paragraph 3 forty-eight of subdivision (a) of section eleven hundred fifteen of this 4 chapter by enacting a resolution in the form set forth in paragraph two 5 of this subdivision; whereupon, upon compliance with the provisions of 6 subdivisions (d) and (e) of this section, such enactment of such resol- 7 ution shall be deemed to be an amendment to such section eleven hundred 8 seven and such section eleven hundred seven shall be deemed to incorpo- 9 rate such exemption as if it had been duly enacted by the state legisla- 10 ture and approved by the governor. 11 (2) Form of resolution: Be it enacted by the (insert proper title of 12 local legislative body) as follows: 13 Section one. Receipts from sales of and consideration given or 14 contracted to be given for purchases of personal care products exempt 15 from state sales and compensating use taxes pursuant to paragraph 16 forty-eight of subdivision (a) of section eleven hundred fifteen of the 17 tax law shall also be exempt from sales and compensating use taxes 18 imposed in this jurisdiction. 19 Section two. This resolution shall take effect, (insert the date) and 20 shall apply to sales made and uses occurring on and after that date 21 although made or occurring under a prior contract. 22 § 7. The commissioner of taxation and finance is hereby authorized to 23 implement the provisions of this act with respect to the elimination of 24 the imposition of sales tax, additional taxes, and supplemental taxes on 25 personal care products and all other taxes so addressed by this act. 26 § 8. This act shall take effect on the first day of the sales tax 27 quarterly period, as described in subdivision (b) of section 1136 of the 28 tax law, beginning at least 90 days after the date this act shall have 29 become a law and shall apply in accordance with the applicable transi- 30 tional provisions of sections 1106 and 1217 of the tax law and shall 31 expire and be deemed repealed two years after such date. 32 PART C 33 Section 1. Subdivision (a) of section 1115 of the tax law is amended 34 by adding a new paragraph 49 to read as follows: 35 (49) Housekeeping supplies as determined by the commissioner. 36 § 2. Subdivision (b) of section 1107 of the tax law is amended by 37 adding a new clause 14 to read as follows: 38 (14) Except as otherwise provided by law, the exemption provided in 39 paragraph forty-nine of subdivision (a) of section eleven hundred 40 fifteen of this article relating to housekeeping supplies shall be 41 applicable pursuant to a local law, ordinance or resolution adopted by a 42 city subject to the provisions of this section. Such city is empowered 43 to adopt or repeal such a local law, ordinance or resolution. Such 44 adoption or repeal shall also be deemed to amend any local law, ordi- 45 nance or resolution enacted by such a city imposing taxes pursuant to 46 the authority of subdivision (a) of section twelve hundred ten of this 47 chapter. 48 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, 49 as amended by section 5 of part J of chapter 59 of the laws of 2021, is 50 amended to read as follows: 51 (1) Either, all of the taxes described in article twenty-eight of this 52 chapter, at the same uniform rate, as to which taxes all provisions of 53 the local laws, ordinances or resolutions imposing such taxes shall be 54 identical, except as to rate and except as otherwise provided, with theA. 1690 9 1 corresponding provisions in such article twenty-eight, including the 2 definition and exemption provisions of such article, so far as the 3 provisions of such article twenty-eight can be made applicable to the 4 taxes imposed by such city or county and with such limitations and 5 special provisions as are set forth in this article. The taxes author- 6 ized under this subdivision may not be imposed by a city or county 7 unless the local law, ordinance or resolution imposes such taxes so as 8 to include all portions and all types of receipts, charges or rents, 9 subject to state tax under sections eleven hundred five and eleven 10 hundred ten of this chapter, except as otherwise provided. Notwith- 11 standing the foregoing, a tax imposed by a city or county authorized 12 under this subdivision shall not include the tax imposed on charges for 13 admission to race tracks and simulcast facilities under subdivision (f) 14 of section eleven hundred five of this chapter. (i) Any local law, ordi- 15 nance or resolution enacted by any city of less than one million or by 16 any county or school district, imposing the taxes authorized by this 17 subdivision, shall, notwithstanding any provision of law to the contra- 18 ry, exclude from the operation of such local taxes all sales of tangible 19 personal property for use or consumption directly and predominantly in 20 the production of tangible personal property, gas, electricity, refrig- 21 eration or steam, for sale, by manufacturing, processing, generating, 22 assembly, refining, mining or extracting; and all sales of tangible 23 personal property for use or consumption predominantly either in the 24 production of tangible personal property, for sale, by farming or in a 25 commercial horse boarding operation, or in both; and all sales of fuel 26 sold for use in commercial aircraft and general aviation aircraft; and, 27 unless such city, county or school district elects otherwise, shall omit 28 the provision for credit or refund contained in clause six of subdivi- 29 sion (a) or subdivision (d) of section eleven hundred nineteen of this 30 chapter. (ii) Any local law, ordinance or resolution enacted by any 31 city, county or school district, imposing the taxes authorized by this 32 subdivision, shall omit the residential solar energy systems equipment 33 and electricity exemption provided for in subdivision (ee), the commer- 34 cial solar energy systems equipment and electricity exemption provided 35 for in subdivision (ii), the commercial fuel cell electricity generating 36 systems equipment and electricity generated by such equipment exemption 37 provided for in subdivision (kk) and the clothing and footwear exemption 38 provided for in paragraph thirty of subdivision (a) of section eleven 39 hundred fifteen of this chapter, unless such city, county or school 40 district elects otherwise as to such residential solar energy systems 41 equipment and electricity exemption, such commercial solar energy 42 systems equipment and electricity exemption, commercial fuel cell elec- 43 tricity generating systems equipment and electricity generated by such 44 equipment exemption or such clothing and footwear exemption. (iii) Any 45 local law, ordinance or resolution enacted by any city, county or school 46 district, imposing the taxes authorized by this subdivision, shall omit 47 the housekeeping supplies exemption provided for in paragraph forty-nine 48 of subdivision (a) of section eleven hundred fifteen of this chapter, 49 unless such city, county or school district elects otherwise; provided 50 that if such a city having a population of one million or more enacts 51 the resolution described in subdivision (s) of this section or repeals 52 such resolution, such resolution or repeal shall also be deemed to amend 53 any local law, ordinance or resolution enacted by such a city imposing 54 such taxes pursuant to the authority of this subdivision, whether or not 55 such taxes are suspended at the time such city enacts its resolution 56 pursuant to subdivision (s) of this section or at the time of suchA. 1690 10 1 repeal; provided, further, that any such local law, ordinance or resol- 2 ution and section eleven hundred seven of this chapter, as deemed to be 3 amended in the event a city of one million or more enacts a resolution 4 pursuant to the authority of subdivision (s) of this section, shall be 5 further amended, as provided in section twelve hundred eighteen of this 6 subpart, so that the housekeeping supplies exemption in any such local 7 law, ordinance or resolution or in such section eleven hundred seven of 8 this chapter is the same as the housekeeping supplies exemption in para- 9 graph forty-nine of subdivision (a) of section eleven hundred fifteen of 10 this chapter. 11 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 12 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 13 read as follows: 14 (d) A local law, ordinance or resolution imposing any tax pursuant to 15 this section, increasing or decreasing the rate of such tax, repealing 16 or suspending such tax, exempting from such tax the energy sources and 17 services described in paragraph three of subdivision (a) or of subdivi- 18 sion (b) of this section or changing the rate of tax imposed on such 19 energy sources and services or providing for the credit or refund 20 described in clause six of subdivision (a) of section eleven hundred 21 nineteen of this chapter, or electing or repealing the exemption for 22 residential solar equipment and electricity in subdivision (ee) of 23 section eleven hundred fifteen of this article, or the exemption for 24 commercial solar equipment and electricity in subdivision (ii) of 25 section eleven hundred fifteen of this article, or electing or repealing 26 the exemption for commercial fuel cell electricity generating systems 27 equipment and electricity generated by such equipment in subdivision 28 (kk) of section eleven hundred fifteen of this article must go into 29 effect only on one of the following dates: March first, June first, 30 September first or December first; provided, that a local law, ordinance 31 or resolution providing for the exemption described in paragraph thirty 32 of subdivision (a) of section eleven hundred fifteen of this chapter or 33 repealing any such exemption or a local law, ordinance or resolution 34 providing for a refund or credit described in subdivision (d) of section 35 eleven hundred nineteen of this chapter or repealing such provision so 36 provided must go into effect only on March first; provided, further, 37 that a local law, ordinance or resolution providing for the exemption 38 described in paragraph forty-nine of subdivision (a) of section eleven 39 hundred fifteen of this chapter or repealing any such exemption so 40 provided and a resolution enacted pursuant to the authority of subdivi- 41 sion (s) of this section providing such exemption or repealing such 42 exemption so provided may go into effect immediately. No such local law, 43 ordinance or resolution shall be effective unless a certified copy of 44 such law, ordinance or resolution is mailed by registered or certified 45 mail to the commissioner at the commissioner's office in Albany at least 46 ninety days prior to the date it is to become effective. However, the 47 commissioner may waive and reduce such ninety-day minimum notice 48 requirement to a mailing of such certified copy by registered or certi- 49 fied mail within a period of not less than thirty days prior to such 50 effective date if the commissioner deems such action to be consistent 51 with the commissioner's duties under section twelve hundred fifty of 52 this article and the commissioner acts by resolution. Where the 53 restriction provided for in section twelve hundred twenty-three of this 54 article as to the effective date of a tax and the notice requirement 55 provided for therein are applicable and have not been waived, theA. 1690 11 1 restriction and notice requirement in section twelve hundred twenty- 2 three of this article shall also apply. 3 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 4 sion (s) to read as follows: 5 (s) Notwithstanding any other provision of state or local law, ordi- 6 nance or resolution to the contrary: (1) Any city having a population of 7 one million or more in which the taxes imposed by section eleven hundred 8 seven of this chapter are in effect, acting through its local legisla- 9 tive body, is hereby authorized and empowered to elect to provide the 10 exemption from such taxes for the same housekeeping supplies exempt from 11 state sales and compensating use taxes described in paragraph forty-nine 12 of subdivision (a) of section eleven hundred fifteen of this chapter by 13 enacting a resolution in the form set forth in paragraph two of this 14 subdivision; whereupon, upon compliance with the provisions of subdivi- 15 sions (d) and (e) of this section, such enactment of such resolution 16 shall be deemed to be an amendment to such section eleven hundred seven 17 and such section eleven hundred seven shall be deemed to incorporate 18 such exemption as if it had been duly enacted by the state legislature 19 and approved by the governor. 20 (2) Form of resolution: Be it enacted by the (insert proper title of 21 local legislative body) as follows: 22 Section one. Receipts from sales of and consideration given or 23 contracted to be given for purchases of housekeeping supplies exempt 24 from state sales and compensating use taxes pursuant to paragraph 25 forty-nine of subdivision (a) of section eleven hundred fifteen of the 26 tax law shall also be exempt from sales and compensating use taxes 27 imposed in this jurisdiction. 28 Section two. This resolution shall take effect, (insert the date) and 29 shall apply to sales made and uses occurring on and after that date 30 although made or occurring under a prior contract. 31 § 6. The commissioner of taxation and finance is hereby authorized to 32 implement the provisions of this act with respect to the elimination of 33 the imposition of sales tax, additional taxes, and supplemental taxes on 34 housekeeping supplies and all other taxes so addressed by this act. 35 § 7. This act shall take effect on the first day of the sales tax 36 quarterly period, as described in subdivision (b) of section 1136 of the 37 tax law, beginning at least 90 days after the date this act shall have 38 become a law and shall apply in accordance with the applicable transi- 39 tional provisions of sections 1106 and 1217 of the tax law and shall 40 expire and be deemed repealed two years after such date. 41 PART D 42 Section 1. Subdivision (a) of section 1115 of the tax law is amended 43 by adding a new paragraph (1-a) to read as follows: 44 (1-a) Food which is sold heated or prepared, including food sold at 45 grocery stores, restaurants, diners, taverns, food trucks, and food 46 courts at a mall and food that is catered. 47 § 2. Subdivision (b) of section 1107 of the tax law is amended by 48 adding a new clause 15 to read as follows: 49 (15) Except as otherwise provided by law, the exemption provided in 50 paragraph one-a of subdivision (a) of section eleven hundred fifteen of 51 this article relating to heated or prepared foods shall be applicable 52 pursuant to a local law, ordinance or resolution adopted by a city 53 subject to the provisions of this section. Such city is empowered to 54 adopt or repeal such a local law, ordinance or resolution. Such adoptionA. 1690 12 1 or repeal shall also be deemed to amend any local law, ordinance or 2 resolution enacted by such a city imposing taxes pursuant to the author- 3 ity of subdivision (a) of section twelve hundred ten of this chapter. 4 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 5 amended by section 5 of part J of chapter 59 of the laws of 2021, is 6 amended to read as follows: 7 (1) Either, all of the taxes described in article twenty-eight of this 8 chapter, at the same uniform rate, as to which taxes all provisions of 9 the local laws, ordinances or resolutions imposing such taxes shall be 10 identical, except as to rate and except as otherwise provided, with the 11 corresponding provisions in such article twenty-eight, including the 12 definition and exemption provisions of such article, so far as the 13 provisions of such article twenty-eight can be made applicable to the 14 taxes imposed by such city or county and with such limitations and 15 special provisions as are set forth in this article. The taxes author- 16 ized under this subdivision may not be imposed by a city or county 17 unless the local law, ordinance or resolution imposes such taxes so as 18 to include all portions and all types of receipts, charges or rents, 19 subject to state tax under sections eleven hundred five and eleven 20 hundred ten of this chapter, except as otherwise provided. Notwith- 21 standing the foregoing, a tax imposed by a city or county authorized 22 under this subdivision shall not include the tax imposed on charges for 23 admission to race tracks and simulcast facilities under subdivision (f) 24 of section eleven hundred five of this chapter. (i) Any local law, ordi- 25 nance or resolution enacted by any city of less than one million or by 26 any county or school district, imposing the taxes authorized by this 27 subdivision, shall, notwithstanding any provision of law to the contra- 28 ry, exclude from the operation of such local taxes all sales of tangible 29 personal property for use or consumption directly and predominantly in 30 the production of tangible personal property, gas, electricity, refrig- 31 eration or steam, for sale, by manufacturing, processing, generating, 32 assembly, refining, mining or extracting; and all sales of tangible 33 personal property for use or consumption predominantly either in the 34 production of tangible personal property, for sale, by farming or in a 35 commercial horse boarding operation, or in both; and all sales of fuel 36 sold for use in commercial aircraft and general aviation aircraft; and, 37 unless such city, county or school district elects otherwise, shall omit 38 the provision for credit or refund contained in clause six of subdivi- 39 sion (a) or subdivision (d) of section eleven hundred nineteen of this 40 chapter. (ii) Any local law, ordinance or resolution enacted by any 41 city, county or school district, imposing the taxes authorized by this 42 subdivision, shall omit the residential solar energy systems equipment 43 and electricity exemption provided for in subdivision (ee), the commer- 44 cial solar energy systems equipment and electricity exemption provided 45 for in subdivision (ii), the commercial fuel cell electricity generating 46 systems equipment and electricity generated by such equipment exemption 47 provided for in subdivision (kk) and the clothing and footwear exemption 48 provided for in paragraph thirty of subdivision (a) of section eleven 49 hundred fifteen of this chapter, unless such city, county or school 50 district elects otherwise as to such residential solar energy systems 51 equipment and electricity exemption, such commercial solar energy 52 systems equipment and electricity exemption, commercial fuel cell elec- 53 tricity generating systems equipment and electricity generated by such 54 equipment exemption or such clothing and footwear exemption. (iii) Any 55 local law, ordinance or resolution enacted by any city, county or school 56 district, imposing the taxes authorized by this subdivision, shall omitA. 1690 13 1 the hot or prepared food items exemption provided for in paragraph one-a 2 of subdivision (a) of section eleven hundred fifteen of this chapter, 3 unless such city, county or school district elects otherwise; provided 4 that if such a city having a population of one million or more enacts 5 the resolution described in subdivision (t) of this section or repeals 6 such resolution, such resolution or repeal shall also be deemed to amend 7 any local law, ordinance or resolution enacted by such a city imposing 8 such taxes pursuant to the authority of this subdivision, whether or not 9 such taxes are suspended at the time such city enacts its resolution 10 pursuant to subdivision (t) of this section or at the time of such 11 repeal; provided, further, that any such local law, ordinance or resol- 12 ution and section eleven hundred seven of this chapter, as deemed to be 13 amended in the event a city of one million or more enacts a resolution 14 pursuant to the authority of subdivision (t) of this section, shall be 15 further amended, as provided in section twelve hundred eighteen of this 16 subpart, so that the hot or prepared food items exemption in any such 17 local law, ordinance or resolution or in such section eleven hundred 18 seven of this chapter is the same as the hot or prepared food items 19 exemption in paragraph one-a of subdivision (a) of section eleven 20 hundred fifteen of this chapter. 21 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 22 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 23 read as follows: 24 (d) A local law, ordinance or resolution imposing any tax pursuant to 25 this section, increasing or decreasing the rate of such tax, repealing 26 or suspending such tax, exempting from such tax the energy sources and 27 services described in paragraph three of subdivision (a) or of subdivi- 28 sion (b) of this section or changing the rate of tax imposed on such 29 energy sources and services or providing for the credit or refund 30 described in clause six of subdivision (a) of section eleven hundred 31 nineteen of this chapter, or electing or repealing the exemption for 32 residential solar equipment and electricity in subdivision (ee) of 33 section eleven hundred fifteen of this article, or the exemption for 34 commercial solar equipment and electricity in subdivision (ii) of 35 section eleven hundred fifteen of this article, or electing or repealing 36 the exemption for commercial fuel cell electricity generating systems 37 equipment and electricity generated by such equipment in subdivision 38 (kk) of section eleven hundred fifteen of this article must go into 39 effect only on one of the following dates: March first, June first, 40 September first or December first; provided, that a local law, ordinance 41 or resolution providing for the exemption described in paragraph thirty 42 of subdivision (a) of section eleven hundred fifteen of this chapter or 43 repealing any such exemption or a local law, ordinance or resolution 44 providing for a refund or credit described in subdivision (d) of section 45 eleven hundred nineteen of this chapter or repealing such provision so 46 provided must go into effect only on March first; provided, further, 47 that a local law, ordinance or resolution providing for the exemption 48 described in paragraph one-a of subdivision (a) of section eleven 49 hundred fifteen of this chapter or repealing any such exemption so 50 provided and a resolution enacted pursuant to the authority of subdivi- 51 sion (t) of this section providing such exemption or repealing such 52 exemption so provided may go into effect immediately. No such local law, 53 ordinance or resolution shall be effective unless a certified copy of 54 such law, ordinance or resolution is mailed by registered or certified 55 mail to the commissioner at the commissioner's office in Albany at least 56 ninety days prior to the date it is to become effective. However, theA. 1690 14 1 commissioner may waive and reduce such ninety-day minimum notice 2 requirement to a mailing of such certified copy by registered or certi- 3 fied mail within a period of not less than thirty days prior to such 4 effective date if the commissioner deems such action to be consistent 5 with the commissioner's duties under section twelve hundred fifty of 6 this article and the commissioner acts by resolution. Where the 7 restriction provided for in section twelve hundred twenty-three of this 8 article as to the effective date of a tax and the notice requirement 9 provided for therein are applicable and have not been waived, the 10 restriction and notice requirement in section twelve hundred twenty- 11 three of this article shall also apply. 12 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 13 sion (t) to read as follows: 14 (t) Notwithstanding any other provision of state or local law, ordi- 15 nance or resolution to the contrary: (1) Any city having a population of 16 one million or more in which the taxes imposed by section eleven hundred 17 seven of this chapter are in effect, acting through its local legisla- 18 tive body, is hereby authorized and empowered to elect to provide the 19 exemption from such taxes for the same hot or prepared food items exempt 20 from state sales and compensating use taxes described in paragraph one-a 21 of subdivision (a) of section eleven hundred fifteen of this chapter by 22 enacting a resolution in the form set forth in paragraph two of this 23 subdivision; whereupon, upon compliance with the provisions of subdivi- 24 sions (d) and (e) of this section, such enactment of such resolution 25 shall be deemed to be an amendment to such section eleven hundred seven 26 and such section eleven hundred seven shall be deemed to incorporate 27 such exemption as if it had been duly enacted by the state legislature 28 and approved by the governor. 29 (2) Form of resolution: Be it enacted by the (insert proper title of 30 local legislative body) as follows: 31 Section one. Receipts from sales of and consideration given or 32 contracted to be given for purchases of hot or prepared food items 33 exempt from state sales and compensating use taxes pursuant to paragraph 34 one-a of subdivision (a) of section eleven hundred fifteen of this chap- 35 ter shall also be exempt from sales and compensating use taxes imposed 36 in this jurisdiction. 37 Section two. This resolution shall take effect, (insert the date) and 38 shall apply to sales made and uses occurring on and after that date 39 although made or occurring under a prior contract. 40 § 6. The commissioner of taxation and finance is hereby authorized to 41 implement the provisions of this act with respect to the elimination of 42 the imposition of sales tax, additional taxes, and supplemental taxes on 43 hot and prepared food items and all other taxes so addressed by this 44 act. 45 § 7. This act shall take effect on the first day of the sales tax 46 quarterly period, as described in subdivision (b) of section 1136 of the 47 tax law, beginning at least 90 days after the date this act shall have 48 become a law and shall apply in accordance with the applicable transi- 49 tional provisions of sections 1106 and 1217 of the tax law and shall 50 expire and be deemed repealed two years after such date. 51 § 2. Severability. If any clause, sentence, paragraph, section or part 52 of this act shall be adjudged by any court of competent jurisdiction to 53 be invalid and after exhaustion of all further judicial review, the 54 judgment shall not affect, impair, or invalidate the remainder thereof, 55 but shall be confined in its operation to the clause, sentence, para-A. 1690 15 1 graph, section or part of this act directly involved in the controversy 2 in which the judgment shall have been rendered. 3 § 3. This act shall take effect immediately provided, however, that 4 the applicable effective date of Parts A through D of this act shall be 5 as specifically set forth in the last section of such Parts.
