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Sponsors
Senator · Senate District 5
2 Co-sponsors
History
- Referred to investigations and government operations
- Reported and committed to finance
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2553
Title of bill
An act to amend the tax law, in relation to exempting energy star products from sales and compensating use taxes; and granting credit or refund for taxes paid; and providing for reimbursement of such taxes
Purpose
To provide a statewide State and local sales tax exemption for one year for all energy star rated products to aid in structure rebuilding and refurbishing, and to promote the State economy during a period of storm related adverse economic impacts.
Read the full memo (723 words)
Summary of provisions
Section 1 of the bill would provide a business franchise tax credit for sales taxes paid on energy star rated products purchased or installations and servicing related to the purchase of energy star related products between October 31, 2012 and October 31, 2013.
Sections 2 and 3 of the bill create a corresponding credit for taxpayers filing under the State's Personal Income Tax.
Sections 4, 5 and 6 of the bill create a one year exemption from sales tax for the purchase of energy star rated products and related installation services.
Section 7 of the bill provides a similar credit for New York City imposed sales taxes.
Section 8 of the bill provides that the State of New York will reimburse local governments for foregone sales tax revenues that otherwise would have been collected on energy star rated products and related services.
Section 9 provides for an immediate effective date.
Existing law
No similar credits or exemption exist in statute at the present time.
Justification
Super-storm Sandy has become the largest natural disaster in New York State history. Current estimates are that at least $30 billion in damages have been inflicted upon the State. All of New York is facing an arduous road to recovery. In the immediate term, the State is facing at least a two economic quarter weather impact recession.
Best available estimates place the number of Sandy related residential structures that have encountered substantial to total flood or other storm related damage at at least 170,000. These homes will need new heating and electrical systems, appliances, insulation, lights, etc.
Meanwhile, recovery efforts are still underway for those New Yorkers that were heavily impacted by last year's storms of Irene and Lee.
Full rebuilding efforts in those communities are just now getting seriously underway.
New York State can provide a small leg up for these impacted citizens, and promote an advanced State energy policy by exempting energy star rated products from sales tax during an anticipated one year rebuilding and refurbishing period. Most New Yorkers will be able to save at least 8 percent during the year recovery period for replacing or upgrading furnaces, air conditioners, hot water heaters, washers, dryers, dishwashers, computers, televisions and lighting systems and conservation materials with energy efficient products designed to save both the purchaser money and save the State energy.
This bill would provide for this exemption, or a refundable credit for purchases made during the exemption period but before the enactment date, and also would have the State reimburse localities, who face an incredibly difficult fiscal period recovering from the storm's direct and longer range effects, for the forbearance of otherwise anticipated sales tax revenues.
However, over and above the incentive provided for those directly impacted and recovering from the storms, the bill would help provide a consumer driven impetus to the regional economies in the rest of the State. As the recovery from Katrina demonstrated, all the proximate shore areas suffered the most immediate and severe impacts, yet these areas also recovered more quickly because of the rapid influx of federal and insurance funds that lead to an eventual boom in construction and tangible good purchases. The more Upstate communities in these Gulf states in general have been much slower to recover.
Making the proposed sales tax exemption statewide will provide a much needed jolt to the rest of the State, and will hopefully, bring our neighbors into the State to make their energy star rated purchases.
Legislative history
New Bill
Fiscal implications
Total of between 5125 and $150 million in reduced currently required State and local Sales Tax collections spread among State Fiscal Years 2012-13 and 2013-14 (Senate Finance estimate).
Local fiscal implications
Slight delay in receipt of anticipated sales tax revenues from energy star rated product purchases counterbalanced by greater regional economic activity.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.