How the New New York Budget Affects Sales Tax
- Apr 17, 2015 | Gail Cole
Included in the final budget
- Create sales tax exemptions for the purchase or lease of vessels costing more than $230,000 (think yachts), and for the purchase or lease of private aircraft. Effective June 1, 2015.
- Expand the existing sales tax exemptions for solar energy system equipment to include electricity generated by such equipment that is sold under a power purchase agreement. Effective December 1, 2015.
- Extend the wine tasting sales and use tax exemption to other alcoholic beverages (beer, cider, liquor). Effective June 1, 2015.
- Amend the imposition of the sales and compensating use tax on prepaid mobile calling services.
Not included in the final budget
These proposed changes didn't make the cut.
- Expand sales tax collections for online sellers: The proposed budget sought to require marketplace providers such as Amazon and eBay to collect New York sales tax whenever they facilitate a sale to a New York consumer, even if the seller is located out-of-state. Currently “such outside sellers are required to collect sales tax from New York residents if the seller is in New York.” This was expected to add $60 million to annual sales tax revenue.
- Reform the Industrial Development Authority (IDA) program so that approval of future IDA projects that contain State sales tax benefits is based on job and/or investment targets. If targets are not met, participating businesses will be subject to a clawback of State sales tax benefits.
This list is by no means a comprehensive. The courageous – and patient – are invited to read Assembly Bill 3009.
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