What's happening
This bill exempts sales tax on coin-operated tire inflation services where the customer inflates the tires themselves without assistance.
Why it matters
Encourages self-service and automation. By exempting sales tax only when customers inflate their own tires using coin-operated equipment without employee assistance, the bill incentivizes businesses to offer more self-service, potentially reducing labor costs and increasing convenience for consumers.
Targets small, everyday consumer expenses. This exemption applies to a low-cost, routine service often used by drivers, so it could offer minor financial relief to individuals, especially those who frequently maintain their own vehicles.
May impact local businesses' operations. Gas stations and convenience stores might see a small boost in usage of their coin-operated air pumps, as the exemption makes these services slightly more attractive compared to assisted or bundled tire services that remain taxable.
Sets a precedent for other micro-transactions. By specifying an exemption for a particular, small-scale, coin-operated service, the bill could open the door for similar requests from other automated or unattended services looking to reduce administrative and tax burdens.
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Who cares
Operators of coin-operated air stands
The bill would exempt self-service inflation charges from sales and use taxes when neither the vendor nor an employee helps inflate the property.
Motorists using coin-operated tire inflators
Money or token payments for qualifying do-it-yourself tire inflation would be tax-exempt.
Customers inflating other personal property
The exemption would also cover qualifying coin-operated self-service inflation of inflatable property other than tires.
New York State Department of Taxation and Finance
The commissioner would be authorized to issue rules, procedures, forms and instructions to implement the exemption.
Headline styles
No Tax on Air Pumps
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 4
No co-sponsors yet.
History
- Referred 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.
No Tax on Air Pumps
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3975
2017-2018 Regular Sessions
IN SENATE
January 31, 2017
Introduced by Sen. BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to exempting coin-operated tire inflation equipment from sales and use taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 3 of subdivision (t) of section 1115 of the tax law is renumbered paragraph 4 and a new paragraph 3 is added to read as follows:
(3) Receipts from every sale, except for resale, of the service of inflating of tires and other inflatable tangible personal property and consideration given or contracted to be given for such service, where the purchaser or user of the service inflates the tires or other such tangible personal property at the facility where the air stand or tire inflation equipment is located, by means exclusively of coin-operated equipment and neither the vendor operating the facility nor any employee of the vendor assists the purchaser in inflating the tires or other property, shall be exempt from tax under this article, to the extent of the amount of money or value, in money, of tokens deposited in such coin-operated equipment by the purchaser of the service.
§ 2. 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 sixty days after this act shall have become a law and shall apply to services rendered on or after such date in accordance with the applicable transitional provisions in sections 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 and issue any procedure, forms or instructions necessary to implement this act on its effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09466-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to exempting coin-operated tire inflation equipment from sales and use taxes
Purpose
The purpose of this bill is to exempt small businesses that operate coin-operated air machines from sales and use taxes. These taxes, and the corresponding paperwork associated with them, are onerous on the small businesses that generally operate these machines and exempting them will aid those businesses to grow and prosper.
Summary of provisions
Section one of the bill adds a new paragraph (3) to subdivision (t) of § 1115 of the Tax Law to exempt coin operated tire inflation machines used in gas stations or elsewhere from sales and compensating use taxes. Section one of the bill also renumbers existing paragraph (3) to paragraph (4).
Justification
Under Chapter 389 of the Laws of 1997 (Part A, § 93), the Tax Law was amended to require that coin-operated vacuum machines in car wash businesses be exempt from sales and use taxes. Chapter 489 of the laws of 2003 added coin-operated vacuum machines in all other businesses be exempt from sales and use taxes. For similar reasons, financial hardship as well as an extraordinary paperwork burden for many small businesses that provide these services, this bill seeks to exempt coin-operated air machines from sales and use taxes.
Prior legislative history
2004: Passed Senate/Assembly Ways & Means Cmte. 2005-06: Passed Senate/Assembly Ways & Means Cmte. 2007-08: Passed Senate/Assembly Ways & Means Cmte. 2009-10: S.3230 Senate Investigations & Government Operations Cmte.
Fiscal impact
To be determined.
Effective date
This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of § 1136 of the Tax Law, next commencing at least sixty days after this act shall have become a law and shall apply to services rendered on or after such date in accordance with the applicable transitional provisions in §§ 1106 and 1217 of the Tax Law; provided further, that the commissioner shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and issue any procedure, forms or instructions necessary to implement this act on its effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.