Relates to enacting the "New York State Go Green Season Act"

10 Co-sponsors

• Patty Ritchie
• Fredrick J. Akshar II
• George Amedore
• Phil Boyle
• Patrick M. Gallivan
• Kemp Hannon
• Kathleen A. Marchione
• Joseph E. Robach
• Diane J. Savino
• James L. Seward

Title of bill

An act to amend the tax law, in relation to enacting the "New York State Go Green Season Act" and creating a limited sales tax exemption for the sale of fresh cut evergreen trees from state sales and compensating use taxes and granting municipalities the option to grant such limited exemption

Summary of bill

This bill creates the New York State Green Season Act. Subdivision (a) of section 1115 of the Tax Law is amended by adding a new paragraphs 44, to exempt Fresh cut Evergreen Trees from sales and use taxes during the two month period each year, commencing on the first day of November and last day of December.

A local option is provided.

Justification

This legislation will provide sales tax relief to consumers during the holiday seasons in winter where consumers typically spend more of their discretionary income on gifts for their families and friends.

According to the National Retail Federation, winter holidays accounts for the largest gift-giving holidays that account for nearly 20% of total annual retail sales for all retailers. In 2013, holiday celebrants spent an average of $730 on gifts, food, decorations and more.

According to Statista; one of the world's largest statistics portals providing relevant data from over 18,000 sources, The United States' retail industry generated over three trillion U.S. dollars during the holidays in 2013. These holiday sales reflected about 19.2 percent of the retail industries total sales that year. As a result, just over 768 thousand employees were hired throughout the United States to compensate for the holiday rush.

According to the Christmas Tree Farmers Association of New York, in 2012 - 275,000 Christmas Trees were sold in New York for an average of $30 per tree. With New York State Christmas Tree Farmers competing with tree farmers in other states, along with large corporations importing trees from out of state, providing a sales tax exemption on Christmas Trees will help New York's Agri-market. This legislation will encourage more consumers to shop locally because they will not be faced with the financial burden of State sales tax. The loss in state tax revenue is extremely insignificant, with potential to actually increase sales tax revenue through additional spending on advertisements and promotional materials that correlate with the exemption.

With all of the consumer spending taking place around the holidays, this legislation will provide minor relief in the taxation customers are faced with in decorating their homes and getting in the `spirit' of the holiday season.

Prior legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first day of a sales tax quarterly period, as described in subdivision (b) of section 1136 of the Tax Law, beginning at least 90 days after the date this act shall have become a law and shall apply in accordance with the applicable transitional provisions of section 1106 and 1217 of the tax law; provided, further, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations necessary to implement this act on its effective date.