What's happening
This bill exempts cemeteries from collecting sales tax on property and services sold for exclusive use on cemetery grounds.
Why it matters
Reduces financial burden on cemeteries. By exempting cemeteries from collecting sales tax on property and services sold for exclusive use on cemetery grounds, the bill helps preserve cemetery funds, which are critical for the long-term maintenance and upkeep of burial sites.
Aims to prevent cemetery abandonment. The policy seeks to ensure that cemeteries do not fall into disrepair or become financial burdens on local governments and communities by making their operation more financially sustainable.
Clarifies tax obligations for cemetery corporations. The legislation provides clear guidance for cemetery corporations regarding their sales tax responsibilities, reducing administrative confusion and potential compliance issues.
Supports consumers and grieving families. Exempting cemetery-related purchases from sales tax can help lower costs for families during times of loss, making essential services and property more affordable.
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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 14
2 Co-sponsors
History
- Referred to budget and revenue
- Print number 3701b
- Amend and recommit to budget and revenue
- Print number 3701a
- Amend (t) and recommit to budget and revenue
- Referred to budget and revenue
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.
End Cemetery Sales Tax
In Assembly Committee · Ways And Means · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3701--B
2019-2020 Regular Sessions
IN SENATE
February 13, 2019
Introduced by Sens. COMRIE, RANZENHOFER, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- 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
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 with charges and rates that have been submitted and approved by the state cemetery board and that are 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.
LBD01251-05-9
S. 3701--B 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. 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
Summary of provisions
Section 1 - declaration of,policy.
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 with rates already approved by the State Cemetery Board for exclusive use on the grounds and in the build- ings 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 main- tenance 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 - Effective date.
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 cemeteries in the state become the responsibility of local governments should they become insolvent or face serious financial distress. Recently the Department of Taxation and Finance has conducted audits and has deter- mined based upon its interpretation of current statues that sales of certain goods and services by cemeteries for use within the cemeteries are subject to sales taxes, even though cemeteries have not regularly, if ever, been collecting such sales tax. The reviews for such sales have gone back years to determine sales tax liability. The Department 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
2017-18 Similar Bill 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.