Bill Text: NY A06017 | 2015-2016 | General Assembly | Introduced
Bill Title: Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-05-06 - enacting clause stricken [A06017 Detail]
Download: New_York-2015-A06017-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6017 2015-2016 Regular Sessions I N A S S E M B L Y March 10, 2015 ___________ Introduced by M. of A. SIMOTAS -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to exempting the sale or lease and installation of commercial fuel cell electric generating equipment or the sale of electricity generated by such equipment from state sales and compensating use tax and granting municipalities the option to grant such exemption THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1.Section 1115 of the tax law is amended by adding a new 2 subdivision (jj) to read as follows: 3 (JJ) (1) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL FUEL CELL ELEC- 4 TRIC GENERATING SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH 5 SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED 6 FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. 7 (2) RECEIPTS FROM THE LEASE OF FUEL CELL ELECTRICITY GENERATING 8 SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS UNDER A 9 WRITTEN AGREEMENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT 10 OWNED BY A PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION 11 WITH A COMMERCIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) 12 WHICH IS USED BY THE TAXPAYER AT HIS OR HER COMMERCIAL PREMISES AT THE 13 TIME THE FUEL CELL ELECTRICITY GENERATING SYSTEM IS PLACED INTO SERVICE 14 SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND 15 ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. 16 (3) RECEIPTS FROM PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT 17 SPANS AT LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IN GENERATED BY 18 FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT OWNED BY A PERSON 19 OTHER THAN THE TAXPAYER WHICH IS INSTALLED IN CONNECTION WITH COMMERCIAL 20 PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) USED BY THE TAXPAY- 21 ER FOR COMMERCIAL PURPOSES SHALL BE EXEMPT FROM THE TAXES IMPOSED BY 22 SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08744-01-5 A. 6017 2 1 (4) FOR THE PURPOSES OF THIS SUBDIVISION, "FUEL CELL ELECTRICITY 2 GENERATING SYSTEMS EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION 3 OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL PREMISES THAT UTILIZE A 4 SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC 5 ACID FUEL CELL THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORD- 6 ANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS. SUCH ARRANGEMENT 7 OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-FUEL 8 CELL ENERGY SYSTEM. 9 S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 10 amended by chapter 13 of the laws of 2013, is amended to read as 11 follows: 12 (1) Either, all of the taxes described in article twenty-eight of this 13 chapter, at the same uniform rate, as to which taxes all provisions of 14 the local laws, ordinances or resolutions imposing such taxes shall be 15 identical, except as to rate and except as otherwise provided, with the 16 corresponding provisions in such article twenty-eight, including the 17 definition and exemption provisions of such article, so far as the 18 provisions of such article twenty-eight can be made applicable to the 19 taxes imposed by such city or county and with such limitations and 20 special provisions as are set forth in this article. The taxes author- 21 ized under this subdivision may not be imposed by a city or county 22 unless the local law, ordinance or resolution imposes such taxes so as 23 to include all portions and all types of receipts, charges or rents, 24 subject to state tax under sections eleven hundred five and eleven 25 hundred ten of this chapter, except as otherwise provided. (i) Any local 26 law, ordinance or resolution enacted by any city of less than one 27 million or by any county or school district, imposing the taxes author- 28 ized by this subdivision, shall, notwithstanding any provision of law to 29 the contrary, exclude from the operation of such local taxes all sales 30 of tangible personal property for use or consumption directly and 31 predominantly in the production of tangible personal property, gas, 32 electricity, refrigeration or steam, for sale, by manufacturing, proc- 33 essing, generating, assembly, refining, mining or extracting; and all 34 sales of tangible personal property for use or consumption predominantly 35 either in the production of tangible personal property, for sale, by 36 farming or in a commercial horse boarding operation, or in both; 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 exemption provided for in subdivision (ee), the commercial solar energy 44 systems equipment exemption provided for in subdivision (ii), THE 45 COMMERCIAL FUEL CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED 46 FOR IN SUBDIVISION (JJ), and the clothing and footwear exemption 47 provided for in paragraph thirty of subdivision (a) of section eleven 48 hundred fifteen of this chapter, unless such city, county or school 49 district elects otherwise as to either such residential solar energy 50 systems equipment exemption, such commercial solar energy systems equip- 51 ment exemption, SUCH COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION, 52 or such clothing and footwear exemption. 53 S 3. Section 1210 of the tax law is amended by adding a new subdivi- 54 sion (q) to read as follows: 55 (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI- 56 NANCE OR RESOLUTION TO THE CONTRARY: A. 6017 3 1 (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE 2 TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN 3 EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED 4 AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS 5 THE COMMERCIAL FUEL CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION FROM 6 STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (JJ) OF 7 SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION 8 IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON, 9 UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS 10 SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL BE DEEMED TO BE AN 11 AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN 12 HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF THEY 13 HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE 14 GOVERNOR. 15 (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF 16 LOCAL LEGISLATIVE BODY) AS FOLLOWS: 17 SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR 18 CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, PROPERTY AND SERVICES 19 EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVI- 20 SION (JJ) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES 21 AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION. 22 SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT THE 23 YEAR, BUT NOT EARLIER THAN THE YEAR 2016) AND SHALL APPLY TO SALES MADE, 24 SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE 25 WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216 AND 26 1217 OF THE NEW YORK TAX LAW. 27 S 4. This act shall take effect immediately, provided that section one 28 of this act shall take effect on the first of January next succeeding 29 the date on which this act shall have become a law.