No Tax on Emergency Supplies

Section 2: Section 1210 of the tax law is amended by adding subdivision (n) which authorizes, at their own discretion, counties and cities in the State to provide an exemption from sales tax and compensating use tax on supplies for emergency preparedness by enacting a resolution in the form set forth in paragraph two of this subdivision.

Section 3: The division of homeland security and emergency services, in conjunction with the department of taxation and finance, shall estab- lish, publish and promote online a list of items eligible for the sales and use tax exemption for emergency preparedness supplies. Such list shall be derived from, but not limited to, information published by Federal Emergency Management Agency (FEMA) and the American Red Cross relating to supplies necessary for the preparation of homes and busi- nesses in the event of a natural or man-made emergency.

Section 4: Sets forth effective dates

Justification

A recent national survey on disaster preparedness commissioned by the Federal Emergency Management Administration (FEMA) has highlighted the lack of preparations for an emergency by families and individuals and the role family/individual income plays in being prepared with emergency supplies to cope with a potential natural or man-made emergency. The survey also revealed that there is an over-reliance on the belief that first-responders will be able to answer every call for help during an emergency.

In view of these findings, it becomes obvious that government must do more to help the citizenry be better prepared to deal with emergencies. Therefore, creating two, one-week sales and use tax free weeks for the purchase of emergency supplies will help promote emergency preparedness and make the items needed more affordable.

This legislation, like other fiscal policy, aims at using the tax code to shape positive behavior. The fact is that in the event of a major disaster it will be impossible for first responders to address the needs of countless citizens in need of immediate assistance. Government can help ensure citizens are better prepared and able to help themselves until first responders are able to assist victims of a disaster. By doing so, lives can be saved, vital resources can be assigned based on priorities dictated by the emergency/disaster, and first responders and their resources will not be placed under tremendous strains.

According to FEMA, of individuals feel that preparation, planning, and emergency supplies would help them handle a natural disaster, but that preparation has been made by roughly of the population, with the percentage dropping significantly based on age, demographics and income levels.

In measuring preparedness, FEMA found the data indicate a direct relationship between income level and preparedness: as income increased so did measures of preparedness.

Household incomes of $50,000 or more were more likely than those with a lesser income to have disaster supplies in their cars, a household disaster plan, communicated this plan with others, volunteered to help in a disaster, taken a preparedness training or CPR course, communicated the importance of preparing to someone else, and believe that prepared- ness would actually help them handle a disaster situation.

Conversely, those with lower household incomes were less likely to have taken preparedness measures and indicated an increased need for help in an evacuation. Individuals with lower household incomes were less likely to have been prepared during the past six months, and they were more likely to cite cost as a barrier to preparing than were those with high- er incomes.

Another finding that should be a wake-up call to policy makers is this: 40% of individuals in FEMA's survey think that a natural disaster would ever affect their community and only 14% of individuals felt a terrorist act would ever occur in their community. These low levels of perceived susceptibility were also echoed in the responses related to a severe disease outbreak and hazardous materials accident.

Obviously more needs to be done to promote disaster/emergency prepared- ness and to make more affordable some of the critical supplies needed to survive such events. This legislation aims to do both.

Legislative history

2017:S.6769 -Passed Senate / A.4207 - Referred to Ways& Means 2016:S.3736A- Died on Third Reading Calendar / A.9787- Referred to Ways & Means 2014:S.4773C- Referred to Investigations & Government Operations / A.6532B - Referred to Ways & Means

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately provided that the provisions required by section three shall be completed by April 1, 2019.