Provides that the use tax on heating fuels shall be suspended during winter months for certain low income senior citizens

Title of bill

An act to amend the tax law, in relation to suspending imposition of the compensating use tax on heating fuels for certain senior citizens

Purpose or general idea of bill

To extend a tax exemption to Senior Citizens who do not qualify for energy assistance programs, and whose income does not exceed the qualifying income by five hundred dollars.

Summary of specific provisions

This bill amends Section 1115 of the tax law by adding a new subdivision (kk). This bill exempts persons sixty-five years or older who do not qualify for the energy assistance program established by section ninety-seven of the social services law, whose income does not exceed the qualifying income by five hundred dollars, from the tax on retail sales imposed under section eleven hundred ten of this article, during the months of December, January, and February.

Justification

In the Winter of 2013, energy costs increased by unprecedented amounts. In some utility service areas heating bills went up by several hundred percent, in others the increase was only in the neighborhood of fifty to seventy percent over average billing. The impact upon consumers was immediate and catastrophic.

This Winter heating costs are projected to rise by lesser amounts than 2013, but the Winter is forecast to be far colder and prices will still increase over last year's prices, according to the Energy Information Administration. The increase in prices will significantly impact the poor and those on fixed incomes. This bill will extend tax credit to those who are sixty-five and older and missed the qualifying income levels by five hundred dollars or less. This will ensure that the impact of the projected price increase is minimized, and it will protect the elderly who are financially vulnerable from enduring increased hardship this winter.

Prior legislative history

2013-2014: 2011-2012: S.1082/A.10663 Died in Energy & Telecom 2009-2010: S.2547/A.5266 - Energy & Telecommunications/Ways & Means 2008-2009: S.2647 2006-2007: S.6401

Fiscal implications

There will be a minimal loss of revenue from qualifying seniors. Due to the higher cost of fuel, the revenues will remain constant or increase with the difference in revenue paid by non-qualifying persons.

Effective date

This act shall take effect immediately.