Exempts certain vehicles from sales and use tax

17 Co-sponsors

• John J. Bonacic
• Simcha Felder
• John J. Flanagan
• Martin J. Golden
• Mark Grisanti
• William J. Larkin Jr.
• Kenneth P. LaValle
• Kathleen A. Marchione
• George D. Maziarz
• Michael F. Nozzolio
• Thomas F. O'Mara
• Michael H. Ranzenhofer
• Patty Ritchie
• James L. Seward
• David J. Valesky
• Catharine Young
• Lee M. Zeldin

BILL NUMBER:S4170A REVISED 6/18/13

Title of bill

An act to amend the tax law, in relation to exemption of registration of certain motor vehicles from sales and use tax

Purpose or general idea of bill

This legislation exempts from sales and use tax motor vehicles purchased in other states by a person while in military service when such motor vehicles are registered upon the person's return to New York State.

Summary of specific provisions

Section 1 amends Subdivision (a) of section 1115 of the tax law by adding a new paragraph 14-a to exempt from sales and use tax a motor vehicle purchased in another state by a person while in military service when the motor vehicle is registered in New York State upon return so long as he or she can provide proof of payment of sales and use tax on such a motor vehicle from another state.

Section 2: Effective Date

Justification

Military service members often keep their residency and driver's license in their home state while serving because of their intention to someday return there. Unfortunately, in keeping residency in New York, service members upon return are subject to paying sales and use tax, excise usage or a highway use tax necessary to obtain title twice on any vehicle purchased while in another state. This is a result of the current tax law which requires the payment of New York Sales and Use Tax on all vehicles purchased out of state. While existing law is necessary in preventing individuals from purchasing a vehicle in another state to purposely avoid paying New York State Sales Tax, the circum- stances in which military personnel purchase their vehicles are quite different. Often, upon returning to the state, former military service members are shocked to learn the vehicle they purchased out of state cannot be registered in New York, unless they pay New York State Sales and Use Tax. Further, payment of this tax is required regardless of whether any of the aforementioned taxes was paid to another state. This has unfortunately placed undue financial hardship on many military service members returning to New York State. This legislation would correct this by providing an exemption, so long as the member can provide proof of payment of any of those taxes in the purchasing state.

Prior legislative history

2007-2008: A.10505 - Held for consideration in Ways and Means - Same as: S.7508. 2011-2012: A.5127 - Held for consideration in Ways and Means

Fiscal implications

Minimal.

Effective date

This act should take effect immediately.