Relates to the sale of monuments

2 Co-sponsors

• Joseph P. Addabbo Jr.
• Greg Ball

BILL NUMBER:S4178

Title of bill

An act to amend the religious corporations law, in relation to the sale of monuments

Purpose

To prohibit religious corporations owning, managing or controlling a cemetery from selling monuments.

Provisions

Section 1 states that no religious corporation owning, managing or controlling a cemetery shall, directly or indirectly, engage in the sale of monuments, not including flush bronze markers, nor shall monuments be displayed for sale on the property of a religious corporation, whether such property is located on cemetery grounds or elsewhere.

Further, no such religious corporation may authorize or permit any employee or trustee or director thereof to advertise or make known his or her relationship to such religious corporation or cemetery if such person is engaged in the sale of monuments outside of his or her employment by or affiliation with the religious corporation or the cemetery.

Section 2 states that this act shall take effect on the thirtieth day after it shall have become a law.

Justification

This bill helps to protect a vital industry in New York. The monument industry in New York is comprised of roughly 400 small businesses located across the State. Each business is independently owned and operated, in most cases by families that have provided custom memorials for generations. Monument companies compete with one another for the honor of memorializing the loss of loved ones, providing fair competition that benefits consumers who are able to shop around for a reasonable price. All monument builders pay taxes to the State of New York on their properties, equipment, office supplies, payrolls, etc. These small businesses are also required to collect a use tax on every monument they sell. Monument builders must take into account the taxes their company must pay when they set the price of their monuments in order to ensure their companies remain profitable and continue employing their workers.

For any small business to be successful there needs to be a level playing field in terms of competition in their product's market. Due to the tax burdens that are inherent in operating a for-profit monument business in New York, it is crucial to the survival of this industry that they not be forced to compete with tax exempt cemeteries for the sale of memorials. All cemeteries in New York are tax exempt, allowing them to set their prices without consideration for the same overhead costs as the taxpaying monument industry. While a portion of these tax exempt cemeteries have been prohibited from selling monuments for more than 60 years, others that currently sell monuments have an unfair competitive advantage that has resulted in a loss of revenue for the tax-paying monument industry. The industry estimates a loss of 20-30 percent of their market share to tax-exempt cemeteries, resulting in a loss of roughly $10 million in tax revenue to the

State. This bill is vital to ensure the monument industry's continued presence in New York.

Prior legislative history

S. 3380 of 2011/2012: Held in Committee S. 5410 of 2009/2010: Passed Senate in 2010.

Fiscal implications

To be determined.

Effective date

This act shall take effect 30 days after it shall have become a law.