Relates to providing an exemption for drugs and medicines for companion and farm animals

Section 2: Allows a city with a population of one million or more, subject to the provisions of Section 1107 of the tax, to adopt or repeal the tax exemption.

Section 3: States that any local law, ordinance, or resolution enacted by any city, county or school district imposing taxes authorized by subdivision (a) of section 1210 of the tax law shall omit medicines intended for use in companion animals and farm animals unless such city, county, or school district elects otherwise. It also states that if a city having a population of one million or more passes or repeals the resolution described in subdivision (q) of section 1210 of the tax law, it shall be deemed to amend any local law, ordinance, or resolution enacted by such a city.

Section 4: Provides that, rather than only being able to take effect on specific dates, a local law, ordinance or resolution providing for the exemption in paragraph 3-a of subdivision (a) of section 1115 of the tax law or for the repeal of such an exemption may go into effect immediately.

Section 5: Amends section 1210 of the tax law by adding a new subdivision (q) which authorizes a city with a population of one million or more in which taxes imposed by section 1107 are in effect to elect to provide the exemption from such taxes as described in paragraph 3-a of subdivision (a) of section 1115 of the tax law by enacting a resolution. The form in which the resolution shall be is established in this section.

Section 6: Authorizes the commissioner of taxation and finance to implement the provisions of this act.

Section 7: Provides the effective date.

Justification

The state of New York provides tax exemptions for medicines and medical equipment used in the treatment of people, as well as an exemption for the services rendered by a veterinarian, however the current law overlooks the occasional necessity for drugs, medicines, and medical equipment for companion animals and farm animals. Just as medicine is critical for the health and quality life of people, so too is it essential for the well-being of animals. An Associated Press-Petside poll found that half of pet owners in the country consider their pets to be a full member of the family. For this reason, the burden for providing medical care to companion animals and farm animals, which can already be prohibitively expensive, should not be exacerbated by including a sales tax on the already high costs of drugs and medicines.

Furthermore, the state of New York recognizes the importance of farming and helping promote the agriculture industry by omitting taxes on tangible personal property used for farming. Given that a single farm can host a great number of animals, it is easy to see how costs could quickly add up and grow out of control if multiple animals require medical attention. New York's farmers would greatly benefit by providing additional relief in the form of this tax exemption on medicines and medical equipment they require in order to run their farms and care for their animals.

Legislative history

New bill.

Fiscal implications

Relief to the consumer.

Effective date

This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least 90 days after this act shall have become a law and shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.