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History
- Print number 296b
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Print number 296a
- 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.
Relates to the collection of sales tax on abstracts of title and other public records searches
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
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 the collection of sales tax on abstracts of title and other public records searches
Purpose or general idea of bill
To relieve title insurance providers and agents from the expense, burden and complexities associated with collecting sales tax on information services that have been historically exempt from sales tax.
Summary of specific provisions
Section one amends paragraph one of subdivision c of section 1105 of the tax law by excluding information services such as abstracts of title, tax searches, searches for municipal records for violations, certificates of title and lien searches from sales tax.
Section two sets the effective date.
Justification
Due to the severe downturn in the real estate sector of the economy, the title insurance industry has suffered particularly hard and the slow recovery of the real estate market has forced many agents with depleted reserves to lay off employees or close their doors. The loss of these small businesses further prolongs the overall economic recovery.
Despite having been historically exempt from sales tax for their services, certain portions of title company services became subject to taxation in 2222.
Unfortunately, due to the variety of services and transactions; the identification of the end user of the services (from whom the tax should collected); the location of the closing (which affects tax rate and may not be known or change with little notice); or whether the transaction closes at all (in which case the "end user" is the title agency itself, liable for sales tax on unpaid work product destined for the shredder), and other complexities particular to a transaction, the proper implementation of this law has been exceedingly difficult. And reliable, sound and consistent advice on the matter has been nearly impossible to obtain.
All of this has been further compounded by the additional procedural, bookkeeping and accounting costs and time necessary for implementation of this convoluted system.
At a time when New York State has finally undertaken efforts to attract and retain businesses here, this recently enacted tax is inappropriate and should be eliminated.
Prior legislative history
S.3669-A (2014)
Fiscal implications
None to the state.
Effective date
This act shall take effect April 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.