Bill Text: NY S03067 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to terminal rental adjustment clauses in motor vehicle leases; provides that any increase in the consideration given pursuant to such clause upon termination of the lease shall be subject to tax, and that any decrease in the consideration given pursuant to such clause upon termination of the lease shall allow the lessor to claim a credit or refund of tax on such amount.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-28 - PRINT NUMBER 3067A [S03067 Detail]
Download: New_York-2019-S03067-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3067--A 2019-2020 Regular Sessions IN SENATE February 1, 2019 ___________ Introduced by Sens. BRESLIN, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to terminal rental adjustment clauses in motor vehicle leases The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (B) of subdivision (i) of section 1111 of the tax 2 law, as amended by chapter 20 of the laws of 1992, is amended to read as 3 follows: 4 (B) Notwithstanding any inconsistent provisions of this subdivision, 5 with respect to a lease of a motor vehicle described in paragraph (A) of 6 this subdivision for a term of one year or more (1) which includes an 7 indeterminate number of options to renew or other similar contractual 8 provisions or which includes thirty-six or more monthly options to renew 9 beyond the initial term, and (2) under which lease the lessee of such 10 motor vehicle has certified in the writing described in clause (i) of 11 subparagraph (C) of paragraph two of subsection (h) of section 7701 of 12 the internal revenue code of 1986, under penalty of perjury, that the 13 lessee intends that more than fifty percent of the use of such vehicle 14 is to be in a trade or business of the lessee, all receipts due or 15 consideration given or contracted to be given under such lease for the 16 first thirty-two months, or the period of the initial term if greater, 17 of such lease shall be deemed to have been paid or given and shall be 18 subject to tax in accordance with the provisions of this subdivision. 19 For each such option to renew, or similar provision, or combination of 20 them, exercised after the first thirty-two months, or the period of such 21 initial term, if longer, of any such lease, tax due under this article 22 shall be collected and paid or paid over without regard to this subdivi- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07642-02-0S. 3067--A 2 1 sion. If any such lease contains a "terminal rental adjustment clause" 2 as defined in paragraph three of subsection (h) of section 7701 of the 3 internal revenue code of 1986, (1) any increase in the consideration 4 given pursuant to such clause upon termination of the lease shall be 5 subject to tax, and (2) any decrease in the consideration given pursuant 6 to such clause upon termination of the lease shall allow the lessor to 7 exclude such amount from taxable receipts. No interest shall be allowed 8 or paid on the execution of amounts from taxable receipts under this 9 subdivision. 10 § 2. This act shall take effect immediately.
