Authorizes the county of Putnam to grant exemption from county sales and use taxes during the period August 15-24, 2015 for certain clothing and footwear

1 Co-sponsor

• Susan Serino

Title of bill

An act to amend the tax law, in relation to authorizing the county of Putnam to exempt from county sales and compensating use taxes certain clothing and footwear, during the period commencing on August fifteenth and through August twenty-fourth, two thousand sixteen

Purpose

The purpose of this legislation is to authorize the County of Putnam to grant exemption from all county sales and use taxes from August 15th 24th for clothing and footwear.

Summary of provisions

Section one amends section 1210 of the tax law by adding a new subdivision (q) which authorizes the county of Putnam to exempt from the taxes it imposes clothing and footwear for the period beginning August 15th - 24th of 2016 by enacting a resolution no later than July 1, 2016. The resolution will not be effective unless the county mails a certified copy of the resolution to the Commissioner of Taxation and Finance no later than July 1, 2016. Additionally, the county must send a certified copy of the resolution with the county clerk of the county of Putnam, the secretary of state and the state comptroller within 5 days after the date the resolution is enacted.

Paragraph 2 of section one establishes the format of the resolution.

Paragraph 3 of section one establishes that if the county of Putnam adopts the resolution authorized by the subdivision, the taxes imposed by section eleven hundred nine of this chapter in such county shall not be affected and the provisions of subdivision (g) of such section eleven hundred nine shall not apply to the exemption authorized in this subdivision.

Section two establishes the effective date.

Justification

Many States provide taxpayers with tax free events ranging from a weekend to one week. Such tax free events are popular with taxpayers, and to local retailers who welcome the additional business. In Tennessee, the increase in retail sales has been so high that many stores have extended their hours. States such as Maryland, Tennessee, South Carolina, Florida and Alabama empower their counties to exempt county sales tax from certain items.

This legislation provides the County of Putnam with the legal authority to exempt taxes as described in the summary above. The timing is designed to provide sorely needed financial relief for parents of school-aged children who are purchasing clothing and footwear for the approaching school year.

Legislative history

2015: S.4809, referred to Investigations and Government Operations Committee and unanimously passed the Senate

2014: S.3878-B, referred to Investigations and Government Operations Committee

2013: S.3878-B, referred to Investigations and Government Operations Committee and passed the Senate

2012: S.7359-A, referred to Investigations and Government Operations Committee and passed the Senate

Fiscal implications

None

Effective date

This act shall take effect immediately.