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.
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