S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4775
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                    April 15, 2015
                                      ___________
       Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       AN  ACT to amend the tax law, in relation to exempting the sale of plug-
         in hybrid electric vehicles from  state  sales  and  compensating  use
         taxes, and to authorize cities and counties 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. Subdivision (a) of section 1115 of the tax law  is  amended
    2  by adding a new paragraph 44 to read as follows:
    3    (44)  THE RECEIPTS FROM THE RETAIL SALE OF NEW PLUG-IN HYBRID ELECTRIC
    4  VEHICLES. FOR PURPOSES OF THIS PARAGRAPH THE TERM "PLUG-IN HYBRID  ELEC-
    5  TRIC  VEHICLE"  MEANS A MOTOR VEHICLE, AS DEFINED IN SECTION ONE HUNDRED
    6  TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, THAT:
    7    (I) DRAWS PROPULSION USING A TRACTION BATTERY WITH AT LEAST FOUR KILO-
    8  WATT HOURS OF CAPACITY;
    9    (II) USES AN EXTERNAL SOURCE OF ENERGY TO RECHARGE SUCH BATTERY;
   10    (III) THE ORIGINAL USE OF WHICH COMMENCES WITH THE TAXPAYER;
   11    (IV) IS ACQUIRED FOR USE OR LEASE BY THE TAXPAYER AND NOT FOR  RESALE;
   12  AND
   13    (V) IS MADE BY A MANUFACTURER.
   14    S  2.  Section 1160 of the tax law is amended by adding a new subdivi-
   15  sion (c) to read as follows:
   16    (C) THE NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN
   17  PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
   18  FIFTEEN  OF  THIS  CHAPTER SHALL NOT APPLY TO OR LIMIT THE IMPOSITION OF
   19  THE TAX IMPOSED PURSUANT TO THIS ARTICLE.
   20    S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
   21  amended by chapter 13 of the  laws  of  2013,  is  amended  to  read  as
   22  follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06235-01-5
       S. 4775                             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  exemption provided for in subdivision (ee), the commercial solar  energy
   33  systems  equipment  exemption  provided  for in subdivision (ii) and the
   34  clothing and footwear exemption provided for in paragraph thirty AND THE
   35  NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH
   36  FORTY-FOUR of subdivision (a) of section eleven hundred fifteen of  this
   37  chapter, unless such city, county or school district elects otherwise as
   38  to  either  such  residential  solar energy systems equipment exemption,
   39  such commercial solar energy systems equipment exemption or such  cloth-
   40  ing  and  footwear exemption OR SUCH NEW PLUG-IN HYBRID ELECTRIC VEHICLE
   41  EXEMPTION.
   42    S 4. Section 1210 of the tax law is amended by adding a  new  subdivi-
   43  sion (q) to read as follows:
   44    (Q)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
   45  NANCE OR RESOLUTION TO THE CONTRARY:
   46    (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
   47  TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
   48  EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
   49  AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
   50  THE  NEW PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION FROM STATE SALES AND
   51  COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF  SUBDIVISION
   52  (A)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A
   53  RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;
   54  WHEREUPON,  UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND
   55  (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED
   56  TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
       S. 4775                             3
    1  ELEVEN  HUNDRED  SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS
    2  IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND  APPROVED  BY
    3  THE GOVERNOR.
    4    (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
    5  LOCAL LEGISLATIVE BODY) AS FOLLOWS:
    6    SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
    7  CONTRACTED  TO  BE  GIVEN  FOR, OR FOR THE USE OF, PROPERTY AND SERVICES
    8  EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
    9  44 OF SUBDIVISION (A) OF SECTION 1115 OF THE NEW YORK TAX LAW SHALL ALSO
   10  BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN  THIS  JURIS-
   11  DICTION.
   12    SECTION  TWO.  THIS  RESOLUTION SHALL TAKE EFFECT MARCH 1, (INSERT THE
   13  YEAR, BUT NOT EARLIER THAN THE YEAR 2015) AND SHALL APPLY TO SALES MADE,
   14  SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE  IN  ACCORD-
   15  ANCE  WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216
   16  AND 1217 OF THE NEW YORK TAX LAW.
   17    S 5. This act shall take effect October 1, 2015.