Expands the imposition of sales tax on the sale of race horses made through claiming races to include the total sale price on each sale.
Impact
The modification in tax legislation would directly affect both buyers and sellers in the race horse industry by changing the tax liability during such transactions. By taxing the entire sale price, the bill aims to ensure that all sales are treated equally under New York tax law, thereby simplifying compliance for race tracks and horse sellers. This expansion of tax liabilities might influence buying patterns, potentially making races horses a more expensive investment compared to previous years where only portions of the selling price would be taxed.
Summary
Bill S07907 proposes an amendment to the New York tax law focusing on sales tax related to race horses sold through claiming races. The core component of the bill is the expansion of the sales tax imposition to encompass the total sale price of each horse, eliminating the previous provision that allowed for tax only on portions exceeding prior purchase prices. This change is intended to create a uniform tax structure for the sale of race horses, potentially increasing revenue from this sector.
Contention
Points of contention surrounding S07907 include concerns from stakeholders in the horse racing industry who may argue that the broadening of the tax to encompass the full sale price could deter buyers, leading to reduced market activity. Critics may label the bill a regressive tax that disproportionately affects small-scale buyers or independent sellers as opposed to larger entities within the racing circuit. Additionally, the implications for revenue generation will require careful consideration in terms of their real economic impact on the equine market and associated industries.
Relates to the taxable price for the sale of a motor vehicle; provides that rebates offered at the time of sale be excluded for purposes of calculating any local sales and compensating use tax and the state sales tax applicable to such sale.