Bill Text: NY S00642 | 2021-2022 | 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 15-0)
Status: (Introduced - Dead) 2022-03-07 - REPORTED AND COMMITTED TO FINANCE [S00642 Detail]
Download: New_York-2021-S00642-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 642--A 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- reported favorably from said committee and committed to the Committee on Finance -- 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. Subdivision (a) of section 1115 of the tax law is amended 2 by adding a new paragraph 47 to read as follows: 3 (47) 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 paragraph, 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 (ll) to read as follows: 16 (ll) 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05816-02-1S. 642--A 2 1 that uses the ground or ground water as a thermal energy source or as a 2 thermal energy sink designed to provide and distribute heating, and/or 3 cooling, and/or hot water, also commonly referred to as ground source 4 heat pump systems. Such arrangement or components shall not include any 5 sort of recreational facility or equipment used as a storage medium. 6 § 3. Subparagraph (ii) of paragraph 1 and subparagraph (xiv) of para- 7 graph 4 of subdivision (a) of section 1210 of the tax law, subparagraph 8 (ii) of paragraph 1 as amended and subparagraph (xiv) of paragraph 4 as 9 added by section 2 of part WW of chapter 60 of the laws of 2016, are 10 amended and a new subparagraph (xvi) is added to paragraph 4 to read as 11 follows: 12 (ii) Any local law, ordinance or resolution enacted by any city, coun- 13 ty or school district, imposing the taxes authorized by this subdivi- 14 sion, shall omit the residential solar energy systems equipment and 15 electricity exemption provided for in subdivision (ee), the commercial 16 solar energy systems equipment and electricity exemption provided for in 17 subdivision (ii), the commercial fuel cell electricity generating 18 systems equipment and electricity generated by such equipment exemption 19 provided for in subdivision (kk), the residential geothermal heat pump 20 systems equipment and installation exemption provided for in paragraph 21 forty-seven of subdivision (a), the commercial geothermal heat pump 22 systems equipment and installation exemption provided for in subdivision 23 (ll) and the clothing and footwear exemption provided for in paragraph 24 thirty of subdivision (a) of section eleven hundred fifteen of this 25 chapter, unless such city, county or school district elects otherwise as 26 to such residential solar energy systems equipment and electricity 27 exemption, such commercial solar energy systems equipment and electric- 28 ity exemption, commercial fuel cell electricity generating systems 29 equipment and electricity generated by such equipment exemption, such 30 residential geothermal heat pump systems equipment and installation 31 exemption, such commercial geothermal heat pump systems equipment and 32 installation exemption or such clothing and footwear exemption. 33 [(xiv)] (xv) shall omit, unless such city elects otherwise, the 34 exemption for commercial fuel cell electricity generating systems equip- 35 ment and electricity generated by such equipment provided in subdivision 36 (kk) of section eleven hundred fifteen of this chapter[.]; and (xvi) 37 shall omit unless such city elects otherwise, the residential geothermal 38 heat pump systems equipment and installation exemption provided for in 39 paragraph forty-seven of subdivision (a) of section eleven hundred 40 fifteen of this chapter; and shall omit unless such city elects other- 41 wise, the commercial geothermal heat pump systems equipment and instal- 42 lation exemption provided for in subdivision (ll) of section eleven 43 hundred fifteen of this chapter. 44 § 4. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 45 1210 of the tax law, as amended by section 5 of part J of chapter 59 of 46 the laws of 2021, is amended to read as follows: 47 (ii) Any local law, ordinance or resolution enacted by any city, coun- 48 ty or school district, imposing the taxes authorized by this subdivi- 49 sion, shall omit the residential solar energy systems equipment and 50 electricity exemption provided for in subdivision (ee), the commercial 51 solar energy systems equipment and electricity exemption provided for in 52 subdivision (ii), the commercial fuel cell electricity generating 53 systems equipment and electricity generated by such equipment exemption 54 provided for in subdivision (kk), the residential geothermal heat pump 55 systems equipment and installation exemption provided for in paragraph 56 forty-seven of subdivision (a), the commercial geothermal heat pumpS. 642--A 3 1 systems equipment and installation exemption provided for in subdivision 2 (ll) and the clothing and footwear exemption provided for in paragraph 3 thirty of subdivision (a) of section eleven hundred fifteen of this 4 chapter, unless such city, county or school district elects otherwise as 5 to such residential solar energy systems equipment and electricity 6 exemption, such commercial solar energy systems equipment and electric- 7 ity exemption, commercial fuel cell electricity generating systems 8 equipment and electricity generated by such equipment exemption or such 9 clothing and footwear exemption, such residential geothermal heat pump 10 systems equipment and installation exemption, such commercial geothermal 11 heat pump systems equipment and installation exemption or such clothing 12 and footwear exemption. 13 § 5. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as 14 amended by section 3 of part WW of chapter 60 of the laws of 2016, is 15 amended to read as follows: 16 (1) Or, one or more of the taxes described in subdivisions (b), (d), 17 (e) and (f) of section eleven hundred five of this chapter, at the same 18 uniform rate, including the transitional provisions in section eleven 19 hundred six of this chapter covering such taxes, but not the taxes 20 described in subdivisions (a) and (c) of section eleven hundred five of 21 this chapter. Provided, further, that where the tax described in subdi- 22 vision (b) of section eleven hundred five of this chapter is imposed, 23 the compensating use taxes described in clauses (E), (G) and (H) of 24 subdivision (a) of section eleven hundred ten of this chapter shall also 25 be imposed. Provided, further, that where the taxes described in subdi- 26 vision (b) of section eleven hundred five are imposed, such taxes shall 27 omit: (A) the provision for refund or credit contained in subdivision 28 (d) of section eleven hundred nineteen of this chapter with respect to 29 such taxes described in such subdivision (b) of section eleven hundred 30 five unless such city or county elects to provide such provision or, if 31 so elected, to repeal such provision; (B) the exemption provided in 32 paragraph two of subdivision (ee) of section eleven hundred fifteen of 33 this chapter unless such county or city elects otherwise; (C) the 34 exemption provided in paragraph two of subdivision (ii) of section elev- 35 en hundred fifteen of this chapter, unless such county or city elects 36 otherwise; [and] (D) the exemption provided in paragraph two of subdivi- 37 sion (kk) of section eleven hundred fifteen of this chapter, unless such 38 county or city elects otherwise; (E) the exemption provided in paragraph 39 forty-seven of subdivision (a) of section eleven hundred fifteen of this 40 chapter, unless such county or city elects otherwise; and (F) the 41 exemption provided in subdivision (ll) of section eleven hundred fifteen 42 of this chapter, unless such county or city elects otherwise. 43 § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as 44 amended by section 6 of part J of chapter 59 of the laws of 2021, is 45 amended to read as follows: 46 (1) Or, one or more of the taxes described in subdivisions (b), (d), 47 (e) and (f) of section eleven hundred five of this chapter, at the same 48 uniform rate, including the transitional provisions in section eleven 49 hundred six of this chapter covering such taxes, but not the taxes 50 described in subdivisions (a) and (c) of section eleven hundred five of 51 this chapter. Provided, further, that where the tax described in subdi- 52 vision (b) of section eleven hundred five of this chapter is imposed, 53 the compensating use taxes described in clauses (E), (G) and (H) of 54 subdivision (a) of section eleven hundred ten of this chapter shall also 55 be imposed. Provided, further, that where the taxes described in subdi- 56 vision (b) of section eleven hundred five of this chapter are imposed,S. 642--A 4 1 such taxes shall omit: (A) the provision for refund or credit contained 2 in subdivision (d) of section eleven hundred nineteen of this chapter 3 with respect to such taxes described in such subdivision (b) of section 4 eleven hundred five unless such city or county elects to provide such 5 provision or, if so elected, to repeal such provision; (B) the exemption 6 provided in paragraph two of subdivision (ee) of section eleven hundred 7 fifteen of this chapter unless such county or city elects otherwise; (C) 8 the exemption provided in paragraph two of subdivision (ii) of section 9 eleven hundred fifteen of this chapter, unless such county or city 10 elects otherwise; and (D) the exemption provided in paragraph two of 11 subdivision (kk) of section eleven hundred fifteen of this chapter, 12 unless such county or city elects otherwise; and provided further that 13 where the tax described in subdivision (f) of such section eleven 14 hundred five is imposed, such tax shall not apply to charges for admis- 15 sion to race tracks and simulcast facilities; (E) the exemption provided 16 in paragraph forty-seven of subdivision (a) of section eleven hundred 17 fifteen of this chapter, unless such county or city elects otherwise; 18 and (F) the exemption provided in subdivision (ll) of section eleven 19 hundred fifteen of this chapter, unless such county or city elects 20 otherwise. 21 § 7. 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, or electing or 39 repealing the exemption for residential geothermal heat pump systems 40 equipment and installation in paragraph forty-seven of subdivision (a) 41 of section eleven hundred fifteen of this article, or electing or 42 repealing the exemption for commercial geothermal heat pump systems 43 equipment and installation in subdivision (ll) of section eleven hundred 44 fifteen of this article must go into effect only on one of the following 45 dates: March first, June first, September first or December first; 46 provided, that a local law, ordinance or resolution providing for the 47 exemption described in paragraph thirty of subdivision (a) of section 48 eleven hundred fifteen of this chapter or repealing any such exemption 49 or a local law, ordinance or resolution providing for a refund or credit 50 described in subdivision (d) of section eleven hundred nineteen of this 51 chapter or repealing such provision so provided must go into effect only 52 on March first. No such local law, ordinance or resolution shall be 53 effective unless a certified copy of such law, ordinance or resolution 54 is mailed by registered or certified mail to the commissioner at the 55 commissioner's office in Albany at least ninety days prior to the date 56 it is to become effective. However, the commissioner may waive andS. 642--A 5 1 reduce such ninety-day minimum notice requirement to a mailing of such 2 certified copy by registered or certified mail within a period of not 3 less than thirty days prior to such effective date if the commissioner 4 deems such action to be consistent with the commissioner's duties under 5 section twelve hundred fifty of this article and the commissioner acts 6 by resolution. Where the restriction provided for in section twelve 7 hundred twenty-three of this article as to the effective date of a tax 8 and the notice requirement provided for therein are applicable and have 9 not been waived, the restriction and notice requirement in section 10 twelve hundred twenty-three of this article shall also apply. 11 § 8. Subdivision (a) of section 1212 of the tax law, as amended by 12 section 5 of part WW of chapter 60 of the laws of 2016, is amended to 13 read as follows: 14 (a) Any school district which is coterminous with, partly within or 15 wholly within a city having a population of less than one hundred twen- 16 ty-five thousand, is hereby authorized and empowered, by majority vote 17 of the whole number of its school authorities, to impose for school 18 district purposes, within the territorial limits of such school district 19 and without discrimination between residents and nonresidents thereof, 20 the taxes described in subdivision (b) of section eleven hundred five 21 (but excluding the tax on prepaid telephone calling services) and the 22 taxes described in clauses (E) and (H) of subdivision (a) of section 23 eleven hundred ten, including the transitional provisions in subdivision 24 (b) of section eleven hundred six of this chapter, so far as such 25 provisions can be made applicable to the taxes imposed by such school 26 district and with such limitations and special provisions as are set 27 forth in this article, such taxes to be imposed at the rate of one-half, 28 one, one and one-half, two, two and one-half or three percent which rate 29 shall be uniform for all portions and all types of receipts and uses 30 subject to such taxes. In respect to such taxes, all provisions of the 31 resolution imposing them, except as to rate and except as otherwise 32 provided herein, shall be identical with the corresponding provisions in 33 [such] article twenty-eight of this chapter, including the applicable 34 definition and exemption provisions of such article, so far as the 35 provisions of such article twenty-eight of this chapter can be made 36 applicable to the taxes imposed by such school district and with such 37 limitations and special provisions as are set forth in this article. The 38 taxes described in subdivision (b) of section eleven hundred five (but 39 excluding the tax on prepaid telephone calling service) and clauses (E) 40 and (H) of subdivision (a) of section eleven hundred ten, including the 41 transitional provision in subdivision (b) of such section eleven hundred 42 six of this chapter, may not be imposed by such school district unless 43 the resolution imposes such taxes so as to include all portions and all 44 types of receipts and uses subject to tax under such subdivision (but 45 excluding the tax on prepaid telephone calling service) and clauses. 46 Provided, however, that, where a school district imposes such taxes, 47 such taxes shall omit the provision for refund or credit contained in 48 subdivision (d) of section eleven hundred nineteen of this chapter with 49 respect to such taxes described in such subdivision (b) of section elev- 50 en hundred five unless such school district elects to provide such 51 provision or, if so elected, to repeal such provision, and shall omit 52 the exemptions provided in paragraph two of subdivision (ee) and para- 53 graph two of subdivision (ii) of section eleven hundred fifteen of this 54 chapter unless such school district elects otherwise, and shall omit the 55 exemption provided in paragraph two of subdivision (kk) of section elev- 56 en hundred fifteen of this chapter unless such school district electsS. 642--A 6 1 otherwise, and shall omit the exemption provided in paragraph forty-sev- 2 en of subdivision (a) of section eleven hundred fifteen of this chapter 3 unless such school district elects otherwise, and shall omit the 4 exemption provided in subdivision (ll) of section eleven hundred fifteen 5 of this chapter unless such school district elects otherwise. 6 § 9. Section 1224 of the tax law is amended by adding two new subdivi- 7 sions (c-3) and (c-4) to read as follows: 8 (c-3) Notwithstanding any other provision of law: (1) Where a county 9 containing one or more cities with a population of less than one million 10 has elected the exemption for residential geothermal heat pump systems 11 equipment and installation provided in paragraph forty-seven of subdivi- 12 sion (a) of section eleven hundred fifteen of this chapter, a city with- 13 in such county shall have the prior right to impose tax on such exempt 14 equipment and/or installation to the extent of one half of the maximum 15 rates authorized under subdivision (a) of section twelve hundred ten of 16 this article; 17 (2) Where a city of less than one million has elected the exemption 18 for residential geothermal heat pump systems equipment and installation 19 provided in paragraph forty-seven of subdivision (a) of section eleven 20 hundred fifteen of this chapter, the county in which such city is 21 located shall have the prior right to impose tax on such exempt equip- 22 ment and/or installation to the extent of one half of the maximum rates 23 authorized under subdivision (a) of section twelve hundred ten of this 24 article. 25 (c-4) Notwithstanding any other provision of law: (1) Where a county 26 containing one or more cities with a population of less than one million 27 has elected the exemption for commercial geothermal heat pump systems 28 equipment and installation provided in subdivision (ll) of section elev- 29 en hundred fifteen of this chapter, a city within such county shall have 30 the prior right to impose tax on such exempt equipment and/or installa- 31 tion to the extent of one half of the maximum rates authorized under 32 subdivision (a) of section twelve hundred ten of this article; 33 (2) Where a city of less than one million has elected the exemption 34 for commercial geothermal heat pump systems equipment and installation 35 provided in subdivision (ll) of section eleven hundred fifteen of this 36 chapter, the county in which such city is located shall have the prior 37 right to impose tax on such exempt equipment and/or installation to the 38 extent of one half of the maximum rates authorized under subdivision (a) 39 of section twelve hundred ten of this article. 40 § 10. This act shall take effect on the first day of a sales tax quar- 41 terly period, as described in subdivision (b) of section 1136 of the tax 42 law, beginning at least ninety days after the date this act shall have 43 become a law and shall apply to sales made on or after such date; 44 provided that sections four and six of this act shall take effect on the 45 same date and in the same manner as part J of chapter 59 of the laws of 46 2021 takes effect.
