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History
- Referred to investigations and government operations
- Print number 2411a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Exempts from sales and compensating use taxes waste containers, compactors and portable toilets sold to persons performing waste removal or portable toilet services
In Assembly Committee · Ways And Means · Sponsor Herman D. Farrell
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to exempting containers, compactors and portable toilets sold to persons performing waste removal or portable toilet service from sales and compensating use taxes
Purpose
To exclude waste containers, waste compactors and portable toilets sold to persons performing waste removal and portable toilet services from sales and compensating use taxes.
Summary of provisions
Section 1 of the bill adds a new subdivision (hh) to section 1115 of the Tax Law to exempt containers, compactors and portable toilets sold to persons performing waste removal or portable toilet services from sales and compensating use taxes. Paragraph (2) of this subdivision defines the terms "compactors" and "containers".
Section 2 of the bill provides for the effective date.
Existing law
Under current law, a waste hauler and portable toilet service provider must pay sales tax when purchasing this equipment and then must charge tax on the full charges to its customers, including any portion of the charges for the equipment usage.
Justification
A waste hauler provides its customers with containers and/or compactors so that the customer can easily accumulate their trash. Depending on a customer's needs, the waste hauler transfers the container and/or compactor to the customer for the period needed. In some cases, the container and/or compactor may be provided to a particular customer for an indefinite period of time, while in other cases a customer may only require a container for a few days. Similarly, a portable toilet provider will transfer a portable toilet unit to a customer for the period of time required.
The Department of Taxation and Finance has taken the position, which has been supported by the courts, that containers, compactors and portable toilets are not considered "actually transferred" to a purchaser of waste or portable toilet services, and thus do not qualify for exemption from tax to the service provider under TAX §1101(b)(4)(i)(B). Their view has been that the piece of equipment is only "actually transferred" if it is permanently transferred to one customer or the title is legally transferred to one customer.
The effect of the current interpretation of this section is double taxation. The waste hauler and portable toilet service provider must pay sales tax when purchasing this equipment and then must charge tax on the full charges to its customers, including any portion of the charges for the equipment usage.
This proposal is intended to prevent double taxation on the equipment usage and clarify the purpose of the statute.
Legislative history
New Legislation in 2005-06, 2007-2008 Ways & Means in Assembly, Investigations Committee in the Senate.
Fiscal implications
To be determined.
Effective date
This act shall take effect September 1, 2009; provided, however, that the amendment to subdivision (gg) of section 1115 of the tax law made by section one of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.