Bill Text: NY A09128 | 2015-2016 | General Assembly | Amended
Bill Title: Provides an exemption for the sale and installation of residential and commercial geothermal heat pump systems equipment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-04-22 - print number 9128a [A09128 Detail]
Download: New_York-2015-A09128-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9128--A IN ASSEMBLY January 29, 2016 ___________ Introduced by M. of A. JAFFEE -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing an exemption for geothermal heat pump systems equipment 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 (ll) to read as follows: 3 (ll) Receipts from the retail sale of residential geothermal heat pump 4 systems equipment and of the service of installing such systems shall be 5 exempt from tax under this article. For purposes of this subdivision, 6 "residential geothermal heat pump system equipment" shall mean an 7 arrangement or combination of components installed in and around a resi- 8 dential building that uses the ground or ground water as a thermal ener- 9 gy source or as a thermal energy sink designed to provide and distribute 10 heating, and/or cooling, and/or hot water, also commonly referred to as 11 ground source heat pump systems. Such arrangement or components shall 12 not include any sort of recreational facility or equipment used as a 13 storage medium. 14 § 2. Section 1115 of the tax law is amended by adding a new subdivi- 15 sion (mm) to read as follows: 16 (mm) Receipts from the retail sale of commercial geothermal heat pump 17 systems equipment and of the service of installing such systems shall be 18 exempt from taxes imposed by sections eleven hundred five and eleven 19 hundred ten of this article. For purposes of this subdivision, "commer- 20 cial geothermal heat pump system equipment" shall mean an arrangement or 21 combination of components installed in and around a commercial building 22 that uses the ground or ground water as a thermal energy source or as a 23 thermal energy sink designed to provide and distribute heating, and/or 24 cooling, and/or hot water, also commonly referred to as ground source 25 heat pump systems. Such arrangement or components shall not include any 26 sort of recreational facility or equipment used as a storage medium. 27 § 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax 28 law, as amended by section 2 of part WW of chapter 60 of the laws of 29 2016, are amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13225-05-6A. 9128--A 2 1 (1) Either, all of the taxes described in article twenty-eight of this 2 chapter, at the same uniform rate, as to which taxes all provisions of 3 the local laws, ordinances or resolutions imposing such taxes shall be 4 identical, except as to rate and except as otherwise provided, with the 5 corresponding provisions in such article twenty-eight, including the 6 definition and exemption provisions of such article, so far as the 7 provisions of such article twenty-eight can be made applicable to the 8 taxes imposed by such city or county and with such limitations and 9 special provisions as are set forth in this article. The taxes author- 10 ized under this subdivision may not be imposed by a city or county 11 unless the local law, ordinance or resolution imposes such taxes so as 12 to include all portions and all types of receipts, charges or rents, 13 subject to state tax under sections eleven hundred five and eleven 14 hundred ten of this chapter, except as otherwise provided. (i) Any local 15 law, ordinance or resolution enacted by any city of less than one 16 million or by any county or school district, imposing the taxes author- 17 ized by this subdivision, shall, notwithstanding any provision of law to 18 the contrary, exclude from the operation of such local taxes all sales 19 of tangible personal property for use or consumption directly and 20 predominantly in the production of tangible personal property, gas, 21 electricity, refrigeration or steam, for sale, by manufacturing, proc- 22 essing, generating, assembly, refining, mining or extracting; and all 23 sales of tangible personal property for use or consumption predominantly 24 either in the production of tangible personal property, for sale, by 25 farming or in a commercial horse boarding operation, or in both; and, 26 unless such city, county or school district elects otherwise, shall omit 27 the provision for credit or refund contained in clause six of subdivi- 28 sion (a) or subdivision (d) of section eleven hundred nineteen of this 29 chapter. (ii) Any local law, ordinance or resolution enacted by any 30 city, county or school district, imposing the taxes authorized by this 31 subdivision, shall omit the residential solar energy systems equipment 32 and electricity exemption provided for in subdivision (ee), the commer- 33 cial solar energy systems equipment and electricity exemption provided 34 for in subdivision (ii), the commercial fuel cell electricity generating 35 systems equipment and electricity generated by such equipment exemption 36 provided for in subdivision (kk), the residential geothermal heat pump 37 systems equipment and installation exemption provided for in subdivision 38 (ll), the commercial geothermal heat pump systems equipment and instal- 39 lation exemption provided for in subdivision (mm) and the clothing and 40 footwear exemption provided for in paragraph thirty of subdivision (a) 41 of section eleven hundred fifteen of this chapter, unless such city, 42 county or school district elects otherwise as to such residential solar 43 energy systems equipment and electricity exemption, such commercial 44 solar energy systems equipment and electricity exemption, commercial 45 fuel cell electricity generating systems equipment and electricity 46 generated by such equipment exemption, such residential geothermal heat 47 pump systems equipment and installation exemption, such commercial 48 geothermal heat pump systems equipment and installation exemption or 49 such clothing and footwear exemption. 50 (4) Notwithstanding any other provision of law to the contrary, any 51 local law enacted by any city of one million or more that imposes the 52 taxes authorized by this subdivision (i) may omit the exception provided 53 in subparagraph (ii) of paragraph three of subdivision (c) of section 54 eleven hundred five of this chapter for receipts from laundering, dry- 55 cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining; 56 (ii) may impose the tax described in paragraph six of subdivision (c) ofA. 9128--A 3 1 section eleven hundred five of this chapter at a rate in addition to the 2 rate prescribed by this section not to exceed two percent in multiples 3 of one-half of one percent; (iii) shall provide that the tax described 4 in paragraph six of subdivision (c) of section eleven hundred five of 5 this chapter does not apply to facilities owned and operated by the city 6 or an agency or instrumentality of the city or a public corporation the 7 majority of whose members are appointed by the chief executive officer 8 of the city or the legislative body of the city or both of them; (iv) 9 shall not include any tax on receipts from, or the use of, the services 10 described in paragraph seven of subdivision (c) of section eleven 11 hundred five of this chapter; (v) shall provide that, for purposes of 12 the tax described in subdivision (e) of section eleven hundred five of 13 this chapter, "permanent resident" means any occupant of any room or 14 rooms in a hotel for at least one hundred eighty consecutive days with 15 regard to the period of such occupancy; (vi) may omit the exception 16 provided in paragraph one of subdivision (f) of section eleven hundred 17 five of this chapter for charges to a patron for admission to, or use 18 of, facilities for sporting activities in which the patron is to be a 19 participant, such as bowling alleys and swimming pools; (vii) may 20 provide the clothing and footwear exemption in paragraph thirty of 21 subdivision (a) of section eleven hundred fifteen of this chapter, and, 22 notwithstanding any provision of subdivision (d) of this section to the 23 contrary, any local law providing for such exemption or repealing such 24 exemption, may go into effect on any one of the following dates: March 25 first, June first, September first or December first; (viii) shall omit 26 the exemption provided in paragraph forty-one of subdivision (a) of 27 section eleven hundred fifteen of this chapter; (ix) shall omit the 28 exemption provided in subdivision (c) of section eleven hundred fifteen 29 of this chapter insofar as it applies to fuel, gas, electricity, refrig- 30 eration and steam, and gas, electric, refrigeration and steam service of 31 whatever nature for use or consumption directly and exclusively in the 32 production of gas, electricity, refrigeration or steam; (x) shall omit, 33 unless such city elects otherwise, the provision for refund or credit 34 contained in clause six of subdivision (a) or in subdivision (d) of 35 section eleven hundred nineteen of this chapter; (xi) shall provide that 36 section eleven hundred five-C of this chapter does not apply to such 37 taxes, and shall tax receipts from every sale, other than sales for 38 resale, of gas service or electric service of whatever nature, including 39 the transportation, transmission or distribution of gas or electricity, 40 even if sold separately, at the rate set forth in clause one of subpara- 41 graph (i) of the opening paragraph of this section; (xii) shall omit, 42 unless such city elects otherwise, the exemption for residential solar 43 energy systems equipment and electricity provided in subdivision (ee) of 44 section eleven hundred fifteen of this chapter; (xiii) shall omit, 45 unless such city elects otherwise, the exemption for commercial solar 46 energy systems equipment and electricity provided in subdivision (ii) of 47 section eleven hundred fifteen of this chapter; [and] (xiv) shall omit, 48 unless such city elects otherwise, the exemption for commercial fuel 49 cell electricity generating systems equipment and electricity generated 50 by such equipment provided in subdivision (kk) of section eleven hundred 51 fifteen of this chapter; and (xv) shall omit unless such city elects 52 otherwise, the residential geothermal heat pump systems equipment and 53 installation exemption provided for in subdivision (ll) of section elev- 54 en hundred fifteen of this chapter; and shall omit unless such city 55 elects otherwise, the commercial geothermal heat pump systems equipment 56 and installation exemption provided for in subdivision (mm) of sectionA. 9128--A 4 1 eleven hundred fifteen of this chapter. Any reference in this chapter 2 or in any local law, ordinance or resolution enacted pursuant to the 3 authority of this article to former subdivisions (n) or (p) of this 4 section shall be deemed to be a reference to clauses (xii) or (xiii) of 5 this paragraph, respectively, and any such local law, ordinance or 6 resolution that provides the exemptions provided in such former subdivi- 7 sions (n) and/or (p) shall be deemed instead to provide the exemptions 8 provided in clauses (xii) and/or (xiii) of this paragraph. 9 § 4. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as 10 amended by section 3 of part WW of chapter 60 of the laws of 2016, is 11 amended to read as follows: 12 (1) Or, one or more of the taxes described in subdivisions (b), (d), 13 (e) and (f) of section eleven hundred five of this chapter, at the same 14 uniform rate, including the transitional provisions in section eleven 15 hundred six of this chapter covering such taxes, but not the taxes 16 described in subdivisions (a) and (c) of section eleven hundred five of 17 this chapter. Provided, further, that where the tax described in subdi- 18 vision (b) of section eleven hundred five of this chapter is imposed, 19 the compensating use taxes described in clauses (E), (G) and (H) of 20 subdivision (a) of section eleven hundred ten of this chapter shall also 21 be imposed. Provided, further, that where the taxes described in subdi- 22 vision (b) of section eleven hundred five are imposed, such taxes shall 23 omit: (A) the provision for refund or credit contained in subdivision 24 (d) of section eleven hundred nineteen of this chapter with respect to 25 such taxes described in such subdivision (b) of section eleven hundred 26 five unless such city or county elects to provide such provision or, if 27 so elected, to repeal such provision; (B) the exemption provided in 28 paragraph two of subdivision (ee) of section eleven hundred fifteen of 29 this chapter unless such county or city elects otherwise; (C) the 30 exemption provided in paragraph two of subdivision (ii) of section elev- 31 en hundred fifteen of this chapter, unless such county or city elects 32 otherwise; [and] (D) the exemption provided in paragraph two of subdivi- 33 sion (kk) of section eleven hundred fifteen of this chapter, unless such 34 county or city elects otherwise; (E) the exemption provided in paragraph 35 two of subdivision (ll) of section eleven hundred fifteen of this chap- 36 ter, unless such county or city elects otherwise; and (F) the exemption 37 provided in paragraph two of subdivision (mm) of section eleven hundred 38 fifteen of this chapter, unless such county or city elects otherwise. 39 § 5. Subdivision (d) of section 1210 of the tax law, as amended by 40 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 41 read as follows: 42 (d) A local law, ordinance or resolution imposing any tax pursuant to 43 this section, increasing or decreasing the rate of such tax, repealing 44 or suspending such tax, exempting from such tax the energy sources and 45 services described in paragraph three of subdivision (a) or of subdivi- 46 sion (b) of this section or changing the rate of tax imposed on such 47 energy sources and services or providing for the credit or refund 48 described in clause six of subdivision (a) of section eleven hundred 49 nineteen of this chapter, or electing or repealing the exemption for 50 residential solar equipment and electricity in subdivision (ee) of 51 section eleven hundred fifteen of this article, or the exemption for 52 commercial solar equipment and electricity in subdivision (ii) of 53 section eleven hundred fifteen of this article, or electing or repealing 54 the exemption for commercial fuel cell electricity generating systems 55 equipment and electricity generated by such equipment in subdivision 56 (kk) of section eleven hundred fifteen of this article, or electing orA. 9128--A 5 1 repealing the exemption for residential geothermal heat pump systems 2 equipment and installation in subdivision (ll) of section eleven hundred 3 fifteen of this article, or electing or repealing the exemption for 4 commercial geothermal heat pump systems equipment and installation in 5 subdivision (mm) of section eleven hundred fifteen of this article must 6 go into effect only on one of the following dates: March first, June 7 first, September first or December first; provided, that a local law, 8 ordinance or resolution providing for the exemption described in para- 9 graph thirty of subdivision (a) of section eleven hundred fifteen of 10 this chapter or repealing any such exemption or a local law, ordinance 11 or resolution providing for a refund or credit described in subdivision 12 (d) of section eleven hundred nineteen of this chapter or repealing such 13 provision so provided must go into effect only on March first. No such 14 local law, ordinance or resolution shall be effective unless a certified 15 copy of such law, ordinance or resolution is mailed by registered or 16 certified mail to the commissioner at the commissioner's office in Alba- 17 ny at least ninety days prior to the date it is to become effective. 18 However, the commissioner may waive and reduce such ninety-day minimum 19 notice requirement to a mailing of such certified copy by registered or 20 certified mail within a period of not less than thirty days prior to 21 such effective date if the commissioner deems such action to be consist- 22 ent with the commissioner's duties under section twelve hundred fifty of 23 this article and the commissioner acts by resolution. Where the 24 restriction provided for in section twelve hundred twenty-three of this 25 article as to the effective date of a tax and the notice requirement 26 provided for therein are applicable and have not been waived, the 27 restriction and notice requirement in section twelve hundred twenty- 28 three of this article shall also apply. 29 § 6. Subdivision (a) of section 1212 of the tax law, as amended by 30 section 5 of part WW of chapter 60 of the laws of 2016, is amended to 31 read as follows: 32 (a) Any school district which is coterminous with, partly within or 33 wholly within a city having a population of less than one hundred twen- 34 ty-five thousand, is hereby authorized and empowered, by majority vote 35 of the whole number of its school authorities, to impose for school 36 district purposes, within the territorial limits of such school district 37 and without discrimination between residents and nonresidents thereof, 38 the taxes described in subdivision (b) of section eleven hundred five 39 (but excluding the tax on prepaid telephone calling services) and the 40 taxes described in clauses (E) and (H) of subdivision (a) of section 41 eleven hundred ten, including the transitional provisions in subdivision 42 (b) of section eleven hundred six of this chapter, so far as such 43 provisions can be made applicable to the taxes imposed by such school 44 district and with such limitations and special provisions as are set 45 forth in this article, such taxes to be imposed at the rate of one-half, 46 one, one and one-half, two, two and one-half or three percent which rate 47 shall be uniform for all portions and all types of receipts and uses 48 subject to such taxes. In respect to such taxes, all provisions of the 49 resolution imposing them, except as to rate and except as otherwise 50 provided herein, shall be identical with the corresponding provisions in 51 such article twenty-eight of this chapter, including the applicable 52 definition and exemption provisions of such article, so far as the 53 provisions of such article twenty-eight of this chapter can be made 54 applicable to the taxes imposed by such school district and with such 55 limitations and special provisions as are set forth in this article. The 56 taxes described in subdivision (b) of section eleven hundred five (butA. 9128--A 6 1 excluding the tax on prepaid telephone calling service) and clauses (E) 2 and (H) of subdivision (a) of section eleven hundred ten, including the 3 transitional provision in subdivision (b) of such section eleven hundred 4 six of this chapter, may not be imposed by such school district unless 5 the resolution imposes such taxes so as to include all portions and all 6 types of receipts and uses subject to tax under such subdivision (but 7 excluding the tax on prepaid telephone calling service) and clauses. 8 Provided, however, that, where a school district imposes such taxes, 9 such taxes shall omit the provision for refund or credit contained in 10 subdivision (d) of section eleven hundred nineteen of this chapter with 11 respect to such taxes described in such subdivision (b) of section elev- 12 en hundred five unless such school district elects to provide such 13 provision or, if so elected, to repeal such provision, and shall omit 14 the exemptions provided in paragraph two of subdivision (ee) and para- 15 graph two of subdivision (ii) of section eleven hundred fifteen of this 16 chapter unless such school district elects otherwise, and shall omit the 17 exemption provided in paragraph two of subdivision (kk) of section elev- 18 en hundred fifteen of this chapter unless such school district elects 19 otherwise, and shall omit the exemption provided in subdivision (11) of 20 section eleven hundred fifteen of this chapter unless such school 21 district elects otherwise, and shall omit the exemption provided in 22 subdivision (mm) of section eleven hundred fifteen of this chapter 23 unless such school district elects otherwise. 24 § 7. Section 1224 of the tax law is amended by adding two new subdivi- 25 sions (c-3) and (c-4) to read as follows: 26 (c-3) Notwithstanding any other provision of law: (1) Where a county 27 containing one or more cities with a population of less than one million 28 has elected the exemption for residential geothermal heat pump systems 29 equipment and installation provided in subdivision (ll) of section elev- 30 en hundred fifteen of this chapter, a city within such county shall have 31 the prior right to impose tax on such exempt equipment and/or installa- 32 tion to the extent of one half of the maximum rates authorized under 33 subdivision (a) of section twelve hundred ten of this article; 34 (2) Where a city of less than one million has elected the exemption 35 for residential geothermal heat pump systems equipment and installation 36 provided in subdivision (ll) of section eleven hundred fifteen of this 37 chapter, the county in which such city is located shall have the prior 38 right to impose tax on such exempt equipment and/or installation to the 39 extent of one half of the maximum rates authorized under subdivision (a) 40 of section twelve hundred ten of this article. 41 (c-4) Notwithstanding any other provision of law: (1) Where a county 42 containing one or more cities with a population of less than one million 43 has elected the exemption for commercial geothermal heat pump systems 44 equipment and installation provided in subdivision (mm) of section elev- 45 en hundred fifteen of this chapter, a city within such county shall have 46 the prior right to impose tax on such exempt equipment and/or installa- 47 tion to the extent of one half of the maximum rates authorized under 48 subdivision (a) of section twelve hundred ten of this article; 49 (2) Where a city of less than one million has elected the exemption 50 for commercial geothermal heat pump systems equipment and installation 51 provided in subdivision (mm) of section eleven hundred fifteen of this 52 chapter, the county in which such city is located shall have the prior 53 right to impose tax on such exempt equipment and/or installation to the 54 extent of one half of the maximum rates authorized under subdivision (a) 55 of section twelve hundred ten of this article. 56 § 8. This act shall take effect immediately.
