What's happening
This bill exempts cemetery corporations from certain sales taxes and establishes a tax amnesty program for past liabilities.
Why it matters
Aims to reduce financial burdens on cemetery corporations. , potentially helping them maintain and preserve burial grounds and avoid abandonment, which could otherwise shift maintenance costs to local governments and taxpayers.
Clarifies and expands sales tax exemptions. for tangible property and services sold by cemeteries, ensuring that goods and services used exclusively on cemetery grounds are not subject to sales tax—this could make cemetery operations more financially sustainable.
Establishes a targeted tax amnesty program. for cemetery corporations with past sales tax liabilities, allowing them to settle outstanding taxes (for periods before December 31, 2018) without penalties or interest, and protecting them from related civil or criminal proceedings—this encourages compliance without punitive consequences.
Requires transparency and legislative review. by mandating a report to lawmakers on the amnesty program's outcomes, including revenue collected and costs incurred, which could inform future policy decisions on nonprofit and cemetery taxation.
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Who cares
Headline styles
End Cemetery Sales Tax
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.1833
- Committee discharged and committed to rules
- Print number 4623a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
Show 4 earlier actions
- Passed senateVote 62–0
- Ordered to third reading cal.2158
- Committee discharged and committed to rules
- 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 Cemetery Sales
In Assembly Committee · Ways And Means · Sponsor Jeffrey Dinowitz
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4623--A
2017-2018 Regular Sessions
IN SENATE
February 23, 2017
Introduced by Sens. RANZENHOFER, AMEDORE, CROCI, FELDER, GALLIVAN, HANNON, HELMING, RITCHIE, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to providing an exemption for tangible personal property and services sold by a cemetery; in relation to establishing an amnesty program for cemetery corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Declaration of policy. The people of this state have a vital interest in the maintenance and preservation of cemetery corporations to prevent them from becoming a burden upon local governments and the community. The preservation of cemetery funds is vital to the long-term maintenance and preservation of these burial grounds to prevent abandonment and dilapidation. In order to preserve this order, and the uniqueness of cemetery corporations, clarifications of cemetery sales tax collections are necessary.
§ 2. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 7-a to read as follows:
(7-a) Tangible personal property and services sold by a cemetery for the exclusive use on the grounds and in the buildings of the cemetery corporation including but not limited to the additional services provided by a cemetery as defined in paragraph (b) of section fifteen hundred nine of the not-for-profit corporation law and for the maintenance and preservation of lots, plots and parts thereof.
§ 3. Subdivision (a) of section 1116 of the tax law is amended by adding a new paragraph 10 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09591-02-8
S. 4623--A 2
(10) A cemetery corporation, as defined in paragraph (a) of section fifteen hundred two of the not-for-profit corporation law, including but not limited to those cemeteries regulated by the religious corporations law where it is the purchaser, user, or consumer, or where it is the vendor of services or property exclusively to be used on the grounds or buildings of the corporation.
§ 4. The tax law is amended by adding a new section 1149 to read as follows:
§ 1149. Amnesty program. (a) Notwithstanding the provisions of any other law to the contrary, there is hereby established an amnesty program as described herein, to be administered by the commissioner, to be effective for the period as prescribed by such commissioner, for all eligible taxpayers as described herein, owing any tax or surcharge imposed or formerly imposed by sections eleven hundred five and eleven hundred ten of this article, and administered by such commissioner.
(b) Such amnesty program shall apply to tax liabilities for the taxes set forth in sections eleven hundred five and eleven hundred ten of this article for taxable periods ending or transactions or uses occurring on or before December thirty first, two thousand eighteen.
(c) For purposes of the amnesty program established under this section, an eligible taxpayer is a cemetery corporation as defined by paragraph (a) of section fifteen hundred two of the not-for-profit corporation law who or which has a tax liability with regard to one or more of the designated taxes for the period of time described in subdivision (b) of this section.
(d) The amnesty program established herein shall provide, that upon application, including applicable returns, which application and returns shall be in such form and submitted in such manner as prescribed by the commissioner, by an eligible taxpayer, and upon payment in such form and in such manner as prescribed by such commissioner, which payment shall either accompany such application or be made within the time stated on a bill issued by such commissioner to such taxpayer, of the amount of a tax liability under one or more of the designated taxes with respect to which amnesty is sought, such commissioner shall waive any applicable penalties and interest (including the additional rate of interest prescribed under section eleven hundred forty-five of this part). In addition, no civil, administrative or criminal action or proceeding shall be brought against such an eligible taxpayer relating to the tax liability covered by such waiver. Failure to pay all such taxes by the later of March fifteenth, two thousand nineteen, or the date prescribed therefor on a bill issued by such commissioner, shall invalidate any amnesty granted pursuant to the amnesty program established under this section.
(e) Amnesty tax return forms shall be in a form, contain such information and be submitted as prescribed by the commissioner and shall provide for specifications by the applicant of the tax liability with respect to which amnesty is sought. The applicant must also provide such additional information as is required by such commissioner. Amnesty shall be granted only with respect to the tax liabilities specified by the taxpayer on such forms. Any return or report filed under the amnesty program established herein is subject to verification and assessment as provided by statute. If the applicant files a false or fraudulent tax return or report, or attempts in any manner to defeat or evade a tax under the amnesty program, amnesty shall be denied or rescinded.
(f) With respect to any existing installment payment agreement of an eligible taxpayer, where such agreement applies to a tax liability with
S. 4623--A 3
respect to which amnesty is sought by such taxpayer, notwithstanding any terms of such agreement to the contrary, such taxpayer, as a condition of receiving amnesty, must pay any such liability in full by the later of the last day of the prescribed amnesty period, or the date prescribed therefor on a bill issued by the commissioner.
(g) The commissioner may promulgate regulations, issue forms and instructions and take any and all other actions necessary to implement the provisions of the amnesty program established under this section. Such commissioner shall publicize the amnesty program provided for in this section so as to maximize public awareness of and participation in such program.
§ 5. On or before February 28, 2021, the commissioner of taxation and finance shall submit a report to the chairperson of the assembly ways and means committee, the ranking minority member of the assembly ways and means committee, the chairperson of the senate finance committee, the ranking minority member of the senate finance committee and the director of the budget regarding the amnesty program established pursuant to this act. The report shall contain the following information as of the report cutoff date: (i) the gross revenue collected under each tax and the year or other applicable period for or during which the liability was incurred; (ii) the amount of money spent on advertising, notification, and outreach activities, by each activity, and a description of the form and content of such activities, by each activity; (iii) the amount paid by the department of taxation and finance for services and expenses related to the establishment of the amnesty program; and (iv) an estimate of the net revenue generated from the amnesty program.
§ 6. This act shall take effect immediately.
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 providing an exemption for tangible personal property and services sold by a ceme- tery; in relation to establishing an amnesty program for cemetery corpo- rations
Purpose
To clarify and provide that sales of tangible property and services by cemetery corporations for exclusive use on the grounds of the cemetery are not subject to sales tax.
Summary of provisions
Section 1 - declaration of policy
Read the full memo (621 words)
Section 2 - amends subdivision (a) of section 1115 of the Tax Law to add a new paragraph (7-a) to exclude from sales tax tangible personal prop- erty and services sold by a cemetery for exclusive use on the grounds and in the buildings of the cemetery corporation including, but not limited to, the additional services provided by a cemetery as defined in paragraph (b) of section 1509 of the Not For Profit Corporation Law and for the maintenance and preservation of lots, plots and parts thereof.
Section 3 - amends subdivision (a) of section 116 of the Tax Law by adding a new paragraph (10) to add as organizations exempt from sales tax cemetery corporations as defined in paragraph (a) of section 1502 of the Not For Profit Law, including, but not limited to, cemeteries regu- lated by the Religious Corporations Law, where it is the purchaser, user or consumer, or where it is the vendor of services or property exclu- sively to be used on the grounds or buildings of the corporation.
Section 4 - adds a new section 1149 to the Tax Law creating an amnesty program to waive interest and penalties for previous sales taxes for periods prior to December 31, 2018 if returns are timely filed and payment is made by March 15, 2019, or such date as set forth in a bill previously sent by the Department of Taxation.
Existing law
Tax Law section 1115 lists certain activities and sales that are exempt from sales taxes; Tax Law section 1116 lists certain entities that are exempt from sales taxes.
Justification
Cemeteries in New York are not-for-profit entities. Regulated ceme- teries in the state become the responsibility of local governments should they become insolvent or face serious financial distress. Recent- ly the Department of Taxation and Finance has conducted audits and has determined based upon its interpretation of current statutes that sales of certain goods and services by cemeteries for use within the ceme- teries are subject to sales taxes, even though cemeteries have not regu- larly, if ever, been collecting such sales tax. The reviews for such sales have gone back years to determine sales tax liability. The Depart- ment has also unofficially opined that certain cemetery services may also be taxable even though those services only relate to the care of cemetery property. The cemeteries, not believing that sales tax was due on such sales, have not been collecting sales taxes from purchasers, and find themselves with unexpected liabilities with no reasonable way to pay them.
It is well recognized that many cemeteries across the state are facing financial difficulties. Underfunded endowment funds, coupled with low rates of return because of continuing low interest rates, have meant that cemeteries are struggling and the failed cemetery operations must be assumed by the localities where they are located. Unexpected imposi- tion of sales taxes coupled with high penalties and interest will jeop- ardize the fiscal wellbeing of additional cemeteries. Such costs then become a continuing burden and unfunded mandate on local taxpayers. This bill clarifies what New York's not-for-profit cemeteries generally understood to be the law.
Legislative history
2017 - S.4623/A.7647 - PASSED SENATE/Ways & Means
Fiscal implications
To be determined.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.