STATE OF NEW YORK ________________________________________________________________________ 3228 2025-2026 Regular Sessions IN SENATE January 24, 2025 ___________ Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to eliminating state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizing localities to eliminate such taxes at the local level; and providing for the repeal of such provisions upon expiration thereof (Part A); to amend the tax law, in relation to exemptions from sales and use taxes; and providing for the repeal of such provisions upon expiration thereof (Part B); to amend the tax law, in relation to providing a sales tax exemption for housekeeping supplies; and provid- ing for the repeal of such provisions upon expiration thereof (Part C); and to amend the tax law, in relation to providing a sales tax exemption for ready-to-eat foods; and providing for the repeal of such provisions upon expiration thereof (Part D) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law components of legislation relating 2 to establishing various exemptions from New York's sales and compensat- 3 ing use tax. Each component is wholly contained within a Part identi- 4 fied as Parts A through D. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART A 13 Section 1. Subdivision (a) of section 1115 of the tax law is amended 14 by adding a new paragraph 47 to read as follows: 15 (47) Motor fuel and diesel motor fuel. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07042-01-5
S. 3228 2 1 § 2. Subdivision (b) of section 1107 of the tax law is amended by 2 adding a new clause 12 to read as follows: 3 (12) Except as otherwise provided by law, the exemption provided in 4 paragraph forty-seven of subdivision (a) of section eleven hundred 5 fifteen of this article relating to motor fuel and diesel motor fuel 6 shall be applicable pursuant to a local law, ordinance or resolution 7 adopted by a city subject to the provisions of this section. Such city 8 is empowered to adopt or repeal such a local law, ordinance or resol- 9 ution. Such adoption or repeal shall also be deemed to amend any local 10 law, ordinance or resolution enacted by such a city imposing taxes 11 pursuant to the authority of subdivision (a) of section twelve hundred 12 ten of this chapter. 13 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 14 amended by section 5 of part J of chapter 59 of the laws of 2021, is 15 amended to read as follows: 16 (1) Either, all of the taxes described in article twenty-eight of this 17 chapter, at the same uniform rate, as to which taxes all provisions of 18 the local laws, ordinances or resolutions imposing such taxes shall be 19 identical, except as to rate and except as otherwise provided, with the 20 corresponding provisions in such article twenty-eight, including the 21 definition and exemption provisions of such article, so far as the 22 provisions of such article twenty-eight can be made applicable to the 23 taxes imposed by such city or county and with such limitations and 24 special provisions as are set forth in this article. The taxes author- 25 ized under this subdivision may not be imposed by a city or county 26 unless the local law, ordinance or resolution imposes such taxes so as 27 to include all portions and all types of receipts, charges or rents, 28 subject to state tax under sections eleven hundred five and eleven 29 hundred ten of this chapter, except as otherwise provided. Notwith- 30 standing the foregoing, a tax imposed by a city or county authorized 31 under this subdivision shall not include the tax imposed on charges for 32 admission to race tracks and simulcast facilities under subdivision (f) 33 of section eleven hundred five of this chapter. (i) Any local law, ordi- 34 nance or resolution enacted by any city of less than one million or by 35 any county or school district, imposing the taxes authorized by this 36 subdivision, shall, notwithstanding any provision of law to the contra- 37 ry, exclude from the operation of such local taxes all sales of tangible 38 personal property for use or consumption directly and predominantly in 39 the production of tangible personal property, gas, electricity, refrig- 40 eration or steam, for sale, by manufacturing, processing, generating, 41 assembly, refining, mining or extracting; and all sales of tangible 42 personal property for use or consumption predominantly either in the 43 production of tangible personal property, for sale, by farming or in a 44 commercial horse boarding operation, or in both; and all sales of fuel 45 sold for use in commercial aircraft and general aviation aircraft; and, 46 unless such city, county or school district elects otherwise, shall omit 47 the provision for credit or refund contained in clause six of subdivi- 48 sion (a) or subdivision (d) of section eleven hundred nineteen of this 49 chapter. (ii) Any local law, ordinance or resolution enacted by any 50 city, county or school district, imposing the taxes authorized by this 51 subdivision, shall omit the residential solar energy systems equipment 52 and electricity exemption provided for in subdivision (ee), the commer- 53 cial solar energy systems equipment and electricity exemption provided 54 for in subdivision (ii), the commercial fuel cell electricity generating 55 systems equipment and electricity generated by such equipment exemption 56 provided for in subdivision (kk) and the clothing and footwear exemption
S. 3228 3 1 provided for in paragraph thirty of subdivision (a) of section eleven 2 hundred fifteen of this chapter, unless such city, county or school 3 district elects otherwise as to such residential solar energy systems 4 equipment and electricity exemption, such commercial solar energy 5 systems equipment and electricity exemption, commercial fuel cell elec- 6 tricity generating systems equipment and electricity generated by such 7 equipment exemption or such clothing and footwear exemption. (iii) Any 8 local law, ordinance or resolution enacted by any city, county or school 9 district, imposing the taxes authorized by this subdivision, shall omit 10 the motor fuel and diesel motor fuel exemption provided for in paragraph 11 forty-seven of subdivision (a) of section eleven hundred fifteen of this 12 chapter, unless such city, county or school district elects otherwise; 13 provided that if such a city having a population of one million or more 14 enacts the resolution described in subdivision (q) of this section or 15 repeals such resolution, such resolution or repeal shall also be deemed 16 to amend any local law, ordinance or resolution enacted by such a city 17 imposing such taxes pursuant to the authority of this subdivision, 18 whether or not such taxes are suspended at the time such city enacts its 19 resolution pursuant to subdivision (q) of this section or at the time of 20 any such repeal; provided, further, that any such local law, ordinance 21 or resolution and section eleven hundred seven of this chapter, as 22 deemed to be amended in the event a city of one million or more enacts a 23 resolution pursuant to the authority of subdivision (q) of this section, 24 shall be further amended, as provided in section twelve hundred eighteen 25 of this subpart, so that the motor fuel and diesel motor fuel exemption 26 in any such local law, ordinance or resolution or in such section eleven 27 hundred seven of this chapter is the same as the motor fuel and diesel 28 motor fuel exemption in paragraph forty-seven of subdivision (a) of 29 section eleven hundred fifteen of this chapter. 30 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 31 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 32 read as follows: 33 (d) A local law, ordinance or resolution imposing any tax pursuant to 34 this section, increasing or decreasing the rate of such tax, repealing 35 or suspending such tax, exempting from such tax the energy sources and 36 services described in paragraph three of subdivision (a) or of subdivi- 37 sion (b) of this section or changing the rate of tax imposed on such 38 energy sources and services or providing for the credit or refund 39 described in clause six of subdivision (a) of section eleven hundred 40 nineteen of this chapter, or electing or repealing the exemption for 41 residential solar equipment and electricity in subdivision (ee) of 42 section eleven hundred fifteen of this article, or the exemption for 43 commercial solar equipment and electricity in subdivision (ii) of 44 section eleven hundred fifteen of this article, or electing or repealing 45 the exemption for commercial fuel cell electricity generating systems 46 equipment and electricity generated by such equipment in subdivision 47 (kk) of section eleven hundred fifteen of this article must go into 48 effect only on one of the following dates: March first, June first, 49 September first or December first; provided, that a local law, ordinance 50 or resolution providing for the exemption described in paragraph thirty 51 of subdivision (a) of section eleven hundred fifteen of this chapter or 52 repealing any such exemption or a local law, ordinance or resolution 53 providing for a refund or credit described in subdivision (d) of section 54 eleven hundred nineteen of this chapter or repealing such provision so 55 provided must go into effect only on March first; provided, further, 56 that a local law, ordinance or resolution providing for the exemption
S. 3228 4 1 described in paragraph forty-seven of subdivision (a) of section eleven 2 hundred fifteen of this chapter or repealing any such exemption so 3 provided and a resolution enacted pursuant to the authority of subdivi- 4 sion (q) of this section providing such exemption or repealing such 5 exemption so provided may go into effect immediately. No such local law, 6 ordinance or resolution shall be effective unless a certified copy of 7 such law, ordinance or resolution is mailed by registered or certified 8 mail to the commissioner at the commissioner's office in Albany at least 9 ninety days prior to the date it is to become effective. However, the 10 commissioner may waive and reduce such ninety-day minimum notice 11 requirement to a mailing of such certified copy by registered or certi- 12 fied mail within a period of not less than thirty days prior to such 13 effective date if the commissioner deems such action to be consistent 14 with the commissioner's duties under section twelve hundred fifty of 15 this article and the commissioner acts by resolution. Where the 16 restriction provided for in section twelve hundred twenty-three of this 17 article as to the effective date of a tax and the notice requirement 18 provided for therein are applicable and have not been waived, the 19 restriction and notice requirement in section twelve hundred twenty- 20 three of this article shall also apply. 21 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 22 sion (q) to read as follows: 23 (q) Notwithstanding any other provision of state or local law, ordi- 24 nance or resolution to the contrary: 25 (1) Any city having a population of one million or more in which the 26 taxes imposed by section eleven hundred seven of this chapter are in 27 effect, acting through its local legislative body, is hereby authorized 28 and empowered to elect to provide the exemption from such taxes for the 29 same motor fuel and diesel motor fuel exempt from state sales and 30 compensating use taxes described in paragraph forty-seven of subdivision 31 (a) of section eleven hundred fifteen of this chapter by enacting a 32 resolution in the form set forth in paragraph two of this subdivision; 33 whereupon, upon compliance with the provisions of subdivisions (d) and 34 (e) of this section, such enactment of such resolution shall be deemed 35 to be an amendment to such section eleven hundred seven and such section 36 eleven hundred seven shall be deemed to incorporate such exemption as if 37 it had been duly enacted by the state legislature and approved by the 38 governor. 39 (2) Form of Resolution: Be it enacted by the (insert proper title of 40 local legislative body) as follows: 41 Section one. Receipts from sales of and consideration given or 42 contracted to be given for purchases of motor fuel and diesel motor fuel 43 exempt from state sales and compensating use taxes pursuant to paragraph 44 forty-seven of subdivision (a) of section eleven hundred fifteen of the 45 tax law shall also be exempt from sales and compensating use taxes 46 imposed in this jurisdiction. 47 Section two. This resolution shall take effect, (insert the date) and 48 shall apply to sales made and uses occurring on and after that date 49 although made or occurring under a prior contract. 50 § 6. The commissioner of taxation and finance is hereby authorized to 51 implement the provisions of this act with respect to the elimination of 52 the imposition of sales tax, additional taxes, and supplemental taxes on 53 diesel motor fuel and motor fuel and all other taxes so addressed by 54 this act. 55 § 7. This act shall take effect on the first day of the sales tax 56 quarterly period, as described in subdivision (b) of section 1136 of the
S. 3228 5 1 tax law, next commencing at least 90 days after this act shall have 2 become a law and shall apply in accordance with the applicable transi- 3 tional provisions of sections 1106 and 1217 of the tax law and shall 4 expire and be deemed repealed two years after such date. 5 PART B 6 Section 1. Paragraph 3 of subdivision (a) of section 1115 of the tax 7 law, as amended by chapter 201 of the laws of 1976, is amended to read 8 as follows: 9 (3) Drugs and medicines intended for use, internally or externally, in 10 the cure, mitigation, treatment or prevention of illnesses or diseases 11 in human beings, medical equipment (including component parts thereof) 12 and supplies required for such use or to correct or alleviate physical 13 incapacity, and products consumed by humans for the preservation of 14 health but not including cosmetics [or toilet articles] notwithstanding 15 the presence of medicinal ingredients therein or medical equipment 16 (including component parts thereof) and supplies, other than such drugs 17 and medicines, purchased at retail for use in performing medical and 18 similar services for compensation. 19 § 2. Subdivision (a) of section 1115 of the tax law is amended by 20 adding a new paragraph 48 to read as follows: 21 (48) Personal care products as determined by the commissioner. 22 § 3. Subdivision (b) of section 1107 of the tax law is amended by 23 adding a new clause 13 to read as follows: 24 (13) Except as otherwise provided by law, the exemption provided in 25 paragraph forty-eight of subdivision (a) of section eleven hundred 26 fifteen of this article relating to personal care products shall be 27 applicable pursuant to a local law, ordinance or resolution adopted by a 28 city subject to the provisions of this section. Such city is empowered 29 to adopt or repeal such a local law, ordinance or resolution. Such 30 adoption or repeal shall also be deemed to amend any local law, ordi- 31 nance or resolution enacted by such a city imposing taxes pursuant to 32 the authority of subdivision (a) of section twelve hundred ten of this 33 chapter. 34 § 4. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 35 amended by section 5 of part J of chapter 59 of the laws of 2021, is 36 amended to read as follows: 37 (1) Either, all of the taxes described in article twenty-eight of this 38 chapter, at the same uniform rate, as to which taxes all provisions of 39 the local laws, ordinances or resolutions imposing such taxes shall be 40 identical, except as to rate and except as otherwise provided, with the 41 corresponding provisions in such article twenty-eight, including the 42 definition and exemption provisions of such article, so far as the 43 provisions of such article twenty-eight can be made applicable to the 44 taxes imposed by such city or county and with such limitations and 45 special provisions as are set forth in this article. The taxes author- 46 ized under this subdivision may not be imposed by a city or county 47 unless the local law, ordinance or resolution imposes such taxes so as 48 to include all portions and all types of receipts, charges or rents, 49 subject to state tax under sections eleven hundred five and eleven 50 hundred ten of this chapter, except as otherwise provided. Notwith- 51 standing the foregoing, a tax imposed by a city or county authorized 52 under this subdivision shall not include the tax imposed on charges for 53 admission to race tracks and simulcast facilities under subdivision (f) 54 of section eleven hundred five of this chapter. (i) Any local law, ordi-
S. 3228 6 1 nance or resolution enacted by any city of less than one million or by 2 any county or school district, imposing the taxes authorized by this 3 subdivision, shall, notwithstanding any provision of law to the contra- 4 ry, exclude from the operation of such local taxes all sales of tangible 5 personal property for use or consumption directly and predominantly in 6 the production of tangible personal property, gas, electricity, refrig- 7 eration or steam, for sale, by manufacturing, processing, generating, 8 assembly, refining, mining or extracting; and all sales of tangible 9 personal property for use or consumption predominantly either in the 10 production of tangible personal property, for sale, by farming or in a 11 commercial horse boarding operation, or in both; and all sales of fuel 12 sold for use in commercial aircraft and general aviation aircraft; and, 13 unless such city, county or school district elects otherwise, shall omit 14 the provision for credit or refund contained in clause six of subdivi- 15 sion (a) or subdivision (d) of section eleven hundred nineteen of this 16 chapter. (ii) Any local law, ordinance or resolution enacted by any 17 city, county or school district, imposing the taxes authorized by this 18 subdivision, shall omit the residential solar energy systems equipment 19 and electricity exemption provided for in subdivision (ee), the commer- 20 cial solar energy systems equipment and electricity exemption provided 21 for in subdivision (ii), the commercial fuel cell electricity generating 22 systems equipment and electricity generated by such equipment exemption 23 provided for in subdivision (kk) and the clothing and footwear exemption 24 provided for in paragraph thirty of subdivision (a) of section eleven 25 hundred fifteen of this chapter, unless such city, county or school 26 district elects otherwise as to such residential solar energy systems 27 equipment and electricity exemption, such commercial solar energy 28 systems equipment and electricity exemption, commercial fuel cell elec- 29 tricity generating systems equipment and electricity generated by such 30 equipment exemption or such clothing and footwear exemption. (iii) Any 31 local law, ordinance or resolution enacted by any city, county or school 32 district, imposing the taxes authorized by this subdivision, shall omit 33 the personal care products exemption provided for in paragraph forty- 34 eight of subdivision (a) of section eleven hundred fifteen of this chap- 35 ter, unless such city, county or school district elects otherwise; 36 provided that if such a city having a population of one million or more 37 enacts the resolution described in subdivision (r) of this section or 38 repeals such resolution, such resolution or repeal shall also be deemed 39 to amend any local law, ordinance or resolution enacted by such a city 40 imposing such taxes pursuant to the authority of this subdivision, 41 whether or not such taxes are suspended at the time such city enacts its 42 resolution pursuant to subdivision (r) of this section or at the time of 43 such repeal; provided, further, that any such local law, ordinance or 44 resolution and section eleven hundred seven of this chapter, as deemed 45 to be amended in the event a city of one million or more enacts a resol- 46 ution pursuant to the authority of subdivision (r) of this section, 47 shall be further amended, as provided in section twelve hundred eighteen 48 of this subpart, so that the personal care products exemption in any 49 such local law, ordinance or resolution or in such section eleven 50 hundred seven of this chapter is the same as the personal care products 51 exemption in paragraph forty-eight of subdivision (a) of section eleven 52 hundred fifteen of this chapter. 53 § 5. Subdivision (d) of section 1210 of the tax law, as amended by 54 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 55 read as follows:
S. 3228 7 1 (d) A local law, ordinance or resolution imposing any tax pursuant to 2 this section, increasing or decreasing the rate of such tax, repealing 3 or suspending such tax, exempting from such tax the energy sources and 4 services described in paragraph three of subdivision (a) or of subdivi- 5 sion (b) of this section or changing the rate of tax imposed on such 6 energy sources and services or providing for the credit or refund 7 described in clause six of subdivision (a) of section eleven hundred 8 nineteen of this chapter, or electing or repealing the exemption for 9 residential solar equipment and electricity in subdivision (ee) of 10 section eleven hundred fifteen of this article, or the exemption for 11 commercial solar equipment and electricity in subdivision (ii) of 12 section eleven hundred fifteen of this article, or electing or repealing 13 the exemption for commercial fuel cell electricity generating systems 14 equipment and electricity generated by such equipment in subdivision 15 (kk) of section eleven hundred fifteen of this article must go into 16 effect only on one of the following dates: March first, June first, 17 September first or December first; provided, that a local law, ordinance 18 or resolution providing for the exemption described in paragraph thirty 19 of subdivision (a) of section eleven hundred fifteen of this chapter or 20 repealing any such exemption or a local law, ordinance or resolution 21 providing for a refund or credit described in subdivision (d) of section 22 eleven hundred nineteen of this chapter or repealing such provision so 23 provided must go into effect only on March first; provided, further, 24 that a local law, ordinance or resolution providing for the exemption 25 described in paragraph forty-eight of subdivision (a) of section eleven 26 hundred fifteen of this chapter or repealing any such exemption so 27 provided and a resolution enacted pursuant to the authority of subdivi- 28 sion (r) of this section providing such exemption or repealing such 29 exemption so provided may go into effect immediately. No such local law, 30 ordinance or resolution shall be effective unless a certified copy of 31 such law, ordinance or resolution is mailed by registered or certified 32 mail to the commissioner at the commissioner's office in Albany at least 33 ninety days prior to the date it is to become effective. However, the 34 commissioner may waive and reduce such ninety-day minimum notice 35 requirement to a mailing of such certified copy by registered or certi- 36 fied mail within a period of not less than thirty days prior to such 37 effective date if the commissioner deems such action to be consistent 38 with the commissioner's duties under section twelve hundred fifty of 39 this article and the commissioner acts by resolution. Where the 40 restriction provided for in section twelve hundred twenty-three of this 41 article as to the effective date of a tax and the notice requirement 42 provided for therein are applicable and have not been waived, the 43 restriction and notice requirement in section twelve hundred twenty- 44 three of this article shall also apply. 45 § 6. Section 1210 of the tax law is amended by adding a new subdivi- 46 sion (r) to read as follows: 47 (r) Notwithstanding any other provision of state or local law, ordi- 48 nance or resolution to the contrary: (1) Any city having a population of 49 one million or more in which the taxes imposed by section eleven hundred 50 seven of this chapter are in effect, acting through its local legisla- 51 tive body, is hereby authorized and empowered to elect to provide the 52 exemption from such taxes for the same personal care products exempt 53 from state sales and compensating use taxes described in paragraph 54 forty-eight of subdivision (a) of section eleven hundred fifteen of this 55 chapter by enacting a resolution in the form set forth in paragraph two 56 of this subdivision; whereupon, upon compliance with the provisions of
S. 3228 8 1 subdivisions (d) and (e) of this section, such enactment of such resol- 2 ution shall be deemed to be an amendment to such section eleven hundred 3 seven and such section eleven hundred seven shall be deemed to incorpo- 4 rate such exemption as if it had been duly enacted by the state legisla- 5 ture and approved by the governor. 6 (2) Form of resolution: Be it enacted by the (insert proper title of 7 local legislative body) as follows: 8 Section one. Receipts from sales of and consideration given or 9 contracted to be given for purchases of personal care products exempt 10 from state sales and compensating use taxes pursuant to paragraph 11 forty-eight of subdivision (a) of section eleven hundred fifteen of the 12 tax law shall also be exempt from sales and compensating use taxes 13 imposed in this jurisdiction. 14 Section two. This resolution shall take effect, (insert the date) and 15 shall apply to sales made and uses occurring on and after that date 16 although made or occurring under a prior contract. 17 § 7. The commissioner of taxation and finance is hereby authorized to 18 implement the provisions of this act with respect to the elimination of 19 the imposition of sales tax, additional taxes, and supplemental taxes on 20 personal care products and all other taxes so addressed by this act. 21 § 8. This act shall take effect on the first day of the sales tax 22 quarterly period, as described in subdivision (b) of section 1136 of the 23 tax law, beginning at least 90 days after the date this act shall have 24 become a law and shall apply in accordance with the applicable transi- 25 tional provisions of sections 1106 and 1217 of the tax law and shall 26 expire and be deemed repealed two years after such date. 27 PART C 28 Section 1. Subdivision (a) of section 1115 of the tax law is amended 29 by adding a new paragraph 49 to read as follows: 30 (49) Housekeeping supplies as determined by the commissioner. 31 § 2. Subdivision (b) of section 1107 of the tax law is amended by 32 adding a new clause 14 to read as follows: 33 (14) Except as otherwise provided by law, the exemption provided in 34 paragraph forty-nine of subdivision (a) of section eleven hundred 35 fifteen of this article relating to housekeeping supplies shall be 36 applicable pursuant to a local law, ordinance or resolution adopted by a 37 city subject to the provisions of this section. Such city is empowered 38 to adopt or repeal such a local law, ordinance or resolution. Such 39 adoption or repeal shall also be deemed to amend any local law, ordi- 40 nance or resolution enacted by such a city imposing taxes pursuant to 41 the authority of subdivision (a) of section twelve hundred ten of this 42 chapter. 43 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, 44 as amended by section 5 of part J of chapter 59 of the laws of 2021, is 45 amended to read as follows: 46 (1) Either, all of the taxes described in article twenty-eight of this 47 chapter, at the same uniform rate, as to which taxes all provisions of 48 the local laws, ordinances or resolutions imposing such taxes shall be 49 identical, except as to rate and except as otherwise provided, with the 50 corresponding provisions in such article twenty-eight, including the 51 definition and exemption provisions of such article, so far as the 52 provisions of such article twenty-eight can be made applicable to the 53 taxes imposed by such city or county and with such limitations and 54 special provisions as are set forth in this article. The taxes author-
S. 3228 9 1 ized under this subdivision may not be imposed by a city or county 2 unless the local law, ordinance or resolution imposes such taxes so as 3 to include all portions and all types of receipts, charges or rents, 4 subject to state tax under sections eleven hundred five and eleven 5 hundred ten of this chapter, except as otherwise provided. Notwith- 6 standing the foregoing, a tax imposed by a city or county authorized 7 under this subdivision shall not include the tax imposed on charges for 8 admission to race tracks and simulcast facilities under subdivision (f) 9 of section eleven hundred five of this chapter. (i) Any local law, ordi- 10 nance or resolution enacted by any city of less than one million or by 11 any county or school district, imposing the taxes authorized by this 12 subdivision, shall, notwithstanding any provision of law to the contra- 13 ry, exclude from the operation of such local taxes all sales of tangible 14 personal property for use or consumption directly and predominantly in 15 the production of tangible personal property, gas, electricity, refrig- 16 eration or steam, for sale, by manufacturing, processing, generating, 17 assembly, refining, mining or extracting; and all sales of tangible 18 personal property for use or consumption predominantly either in the 19 production of tangible personal property, for sale, by farming or in a 20 commercial horse boarding operation, or in both; and all sales of fuel 21 sold for use in commercial aircraft and general aviation aircraft; and, 22 unless such city, county or school district elects otherwise, shall omit 23 the provision for credit or refund contained in clause six of subdivi- 24 sion (a) or subdivision (d) of section eleven hundred nineteen of this 25 chapter. (ii) Any local law, ordinance or resolution enacted by any 26 city, county or school district, imposing the taxes authorized by this 27 subdivision, shall omit the residential solar energy systems equipment 28 and electricity exemption provided for in subdivision (ee), the commer- 29 cial solar energy systems equipment and electricity exemption provided 30 for in subdivision (ii), the commercial fuel cell electricity generating 31 systems equipment and electricity generated by such equipment exemption 32 provided for in subdivision (kk) and the clothing and footwear exemption 33 provided for in paragraph thirty of subdivision (a) of section eleven 34 hundred fifteen of this chapter, unless such city, county or school 35 district elects otherwise as to such residential solar energy systems 36 equipment and electricity exemption, such commercial solar energy 37 systems equipment and electricity exemption, commercial fuel cell elec- 38 tricity generating systems equipment and electricity generated by such 39 equipment exemption or such clothing and footwear exemption. (iii) Any 40 local law, ordinance or resolution enacted by any city, county or school 41 district, imposing the taxes authorized by this subdivision, shall omit 42 the housekeeping supplies exemption provided for in paragraph forty-nine 43 of subdivision (a) of section eleven hundred fifteen of this chapter, 44 unless such city, county or school district elects otherwise; provided 45 that if such a city having a population of one million or more enacts 46 the resolution described in subdivision (s) of this section or repeals 47 such resolution, such resolution or repeal shall also be deemed to amend 48 any local law, ordinance or resolution enacted by such a city imposing 49 such taxes pursuant to the authority of this subdivision, whether or not 50 such taxes are suspended at the time such city enacts its resolution 51 pursuant to subdivision (s) of this section or at the time of such 52 repeal; provided, further, that any such local law, ordinance or resol- 53 ution and section eleven hundred seven of this chapter, as deemed to be 54 amended in the event a city of one million or more enacts a resolution 55 pursuant to the authority of subdivision (s) of this section, shall be 56 further amended, as provided in section twelve hundred eighteen of this
S. 3228 10 1 subpart, so that the housekeeping supplies exemption in any such local 2 law, ordinance or resolution or in such section eleven hundred seven of 3 this chapter is the same as the housekeeping supplies exemption in para- 4 graph forty-nine of subdivision (a) of section eleven hundred fifteen of 5 this chapter. 6 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 7 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 8 read as follows: 9 (d) A local law, ordinance or resolution imposing any tax pursuant to 10 this section, increasing or decreasing the rate of such tax, repealing 11 or suspending such tax, exempting from such tax the energy sources and 12 services described in paragraph three of subdivision (a) or of subdivi- 13 sion (b) of this section or changing the rate of tax imposed on such 14 energy sources and services or providing for the credit or refund 15 described in clause six of subdivision (a) of section eleven hundred 16 nineteen of this chapter, or electing or repealing the exemption for 17 residential solar equipment and electricity in subdivision (ee) of 18 section eleven hundred fifteen of this article, or the exemption for 19 commercial solar equipment and electricity in subdivision (ii) of 20 section eleven hundred fifteen of this article, or electing or repealing 21 the exemption for commercial fuel cell electricity generating systems 22 equipment and electricity generated by such equipment in subdivision 23 (kk) of section eleven hundred fifteen of this article must go into 24 effect only on one of the following dates: March first, June first, 25 September first or December first; provided, that a local law, ordinance 26 or resolution providing for the exemption described in paragraph thirty 27 of subdivision (a) of section eleven hundred fifteen of this chapter or 28 repealing any such exemption or a local law, ordinance or resolution 29 providing for a refund or credit described in subdivision (d) of section 30 eleven hundred nineteen of this chapter or repealing such provision so 31 provided must go into effect only on March first; provided, further, 32 that a local law, ordinance or resolution providing for the exemption 33 described in paragraph forty-nine of subdivision (a) of section eleven 34 hundred fifteen of this chapter or repealing any such exemption so 35 provided and a resolution enacted pursuant to the authority of subdivi- 36 sion (s) of this section providing such exemption or repealing such 37 exemption so provided may go into effect immediately. No such local law, 38 ordinance or resolution shall be effective unless a certified copy of 39 such law, ordinance or resolution is mailed by registered or certified 40 mail to the commissioner at the commissioner's office in Albany at least 41 ninety days prior to the date it is to become effective. However, the 42 commissioner may waive and reduce such ninety-day minimum notice 43 requirement to a mailing of such certified copy by registered or certi- 44 fied mail within a period of not less than thirty days prior to such 45 effective date if the commissioner deems such action to be consistent 46 with the commissioner's duties under section twelve hundred fifty of 47 this article and the commissioner acts by resolution. Where the 48 restriction provided for in section twelve hundred twenty-three of this 49 article as to the effective date of a tax and the notice requirement 50 provided for therein are applicable and have not been waived, the 51 restriction and notice requirement in section twelve hundred twenty- 52 three of this article shall also apply. 53 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 54 sion (s) to read as follows: 55 (s) Notwithstanding any other provision of state or local law, ordi- 56 nance or resolution to the contrary: (1) Any city having a population of
S. 3228 11 1 one million or more in which the taxes imposed by section eleven hundred 2 seven of this chapter are in effect, acting through its local legisla- 3 tive body, is hereby authorized and empowered to elect to provide the 4 exemption from such taxes for the same housekeeping supplies exempt from 5 state sales and compensating use taxes described in paragraph forty-nine 6 of subdivision (a) of section eleven hundred fifteen of this chapter by 7 enacting a resolution in the form set forth in paragraph two of this 8 subdivision; whereupon, upon compliance with the provisions of subdivi- 9 sions (d) and (e) of this section, such enactment of such resolution 10 shall be deemed to be an amendment to such section eleven hundred seven 11 and such section eleven hundred seven shall be deemed to incorporate 12 such exemption as if it had been duly enacted by the state legislature 13 and approved by the governor. 14 (2) Form of resolution: Be it enacted by the (insert proper title of 15 local legislative body) as follows: 16 Section one. Receipts from sales of and consideration given or 17 contracted to be given for purchases of housekeeping supplies exempt 18 from state sales and compensating use taxes pursuant to paragraph 19 forty-nine of subdivision (a) of section eleven hundred fifteen of the 20 tax law shall also be exempt from sales and compensating use taxes 21 imposed in this jurisdiction. 22 Section two. This resolution shall take effect, (insert the date) and 23 shall apply to sales made and uses occurring on and after that date 24 although made or occurring under a prior contract. 25 § 6. The commissioner of taxation and finance is hereby authorized to 26 implement the provisions of this act with respect to the elimination of 27 the imposition of sales tax, additional taxes, and supplemental taxes on 28 housekeeping supplies and all other taxes so addressed by this act. 29 § 7. This act shall take effect on the first day of the sales tax 30 quarterly period, as described in subdivision (b) of section 1136 of the 31 tax law, beginning at least 90 days after the date this act shall have 32 become a law and shall apply in accordance with the applicable transi- 33 tional provisions of sections 1106 and 1217 of the tax law and shall 34 expire and be deemed repealed two years after such date. 35 PART D 36 Section 1. Subdivision (a) of section 1115 of the tax law is amended 37 by adding a new paragraph (1-a) to read as follows: 38 (1-a) Food which is sold heated or prepared, including food sold at 39 grocery stores, restaurants, diners, taverns, food trucks, and food 40 courts at a mall and food that is catered. 41 § 2. Subdivision (b) of section 1107 of the tax law is amended by 42 adding a new clause 15 to read as follows: 43 (15) Except as otherwise provided by law, the exemption provided in 44 paragraph one-a of subdivision (a) of section eleven hundred fifteen of 45 this article relating to heated or prepared foods shall be applicable 46 pursuant to a local law, ordinance or resolution adopted by a city 47 subject to the provisions of this section. Such city is empowered to 48 adopt or repeal such a local law, ordinance or resolution. Such adoption 49 or repeal shall also be deemed to amend any local law, ordinance or 50 resolution enacted by such a city imposing taxes pursuant to the author- 51 ity of subdivision (a) of section twelve hundred ten of this chapter. 52 § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as 53 amended by section 5 of part J of chapter 59 of the laws of 2021, is 54 amended to read as follows:
S. 3228 12 1 (1) Either, all of the taxes described in article twenty-eight of this 2 chapter, at the same uniform rate, as to which taxes all provisions of 3 the local laws, ordinances or resolutions imposing such taxes shall be 4 identical, except as to rate and except as otherwise provided, with the 5 corresponding provisions in such article twenty-eight, including the 6 definition and exemption provisions of such article, so far as the 7 provisions of such article twenty-eight can be made applicable to the 8 taxes imposed by such city or county and with such limitations and 9 special provisions as are set forth in this article. The taxes author- 10 ized under this subdivision may not be imposed by a city or county 11 unless the local law, ordinance or resolution imposes such taxes so as 12 to include all portions and all types of receipts, charges or rents, 13 subject to state tax under sections eleven hundred five and eleven 14 hundred ten of this chapter, except as otherwise provided. Notwith- 15 standing the foregoing, a tax imposed by a city or county authorized 16 under this subdivision shall not include the tax imposed on charges for 17 admission to race tracks and simulcast facilities under subdivision (f) 18 of section eleven hundred five of this chapter. (i) Any local law, ordi- 19 nance or resolution enacted by any city of less than one million or by 20 any county or school district, imposing the taxes authorized by this 21 subdivision, shall, notwithstanding any provision of law to the contra- 22 ry, exclude from the operation of such local taxes all sales of tangible 23 personal property for use or consumption directly and predominantly in 24 the production of tangible personal property, gas, electricity, refrig- 25 eration or steam, for sale, by manufacturing, processing, generating, 26 assembly, refining, mining or extracting; and all sales of tangible 27 personal property for use or consumption predominantly either in the 28 production of tangible personal property, for sale, by farming or in a 29 commercial horse boarding operation, or in both; and all sales of fuel 30 sold for use in commercial aircraft and general aviation aircraft; and, 31 unless such city, county or school district elects otherwise, shall omit 32 the provision for credit or refund contained in clause six of subdivi- 33 sion (a) or subdivision (d) of section eleven hundred nineteen of this 34 chapter. (ii) Any local law, ordinance or resolution enacted by any 35 city, county or school district, imposing the taxes authorized by this 36 subdivision, shall omit the residential solar energy systems equipment 37 and electricity exemption provided for in subdivision (ee), the commer- 38 cial solar energy systems equipment and electricity exemption provided 39 for in subdivision (ii), the commercial fuel cell electricity generating 40 systems equipment and electricity generated by such equipment exemption 41 provided for in subdivision (kk) and the clothing and footwear exemption 42 provided for in paragraph thirty of subdivision (a) of section eleven 43 hundred fifteen of this chapter, unless such city, county or school 44 district elects otherwise as to such residential solar energy systems 45 equipment and electricity exemption, such commercial solar energy 46 systems equipment and electricity exemption, commercial fuel cell elec- 47 tricity generating systems equipment and electricity generated by such 48 equipment exemption or such clothing and footwear exemption. (iii) Any 49 local law, ordinance or resolution enacted by any city, county or school 50 district, imposing the taxes authorized by this subdivision, shall omit 51 the hot or prepared food items exemption provided for in paragraph one-a 52 of subdivision (a) of section eleven hundred fifteen of this chapter, 53 unless such city, county or school district elects otherwise; provided 54 that if such a city having a population of one million or more enacts 55 the resolution described in subdivision (t) of this section or repeals 56 such resolution, such resolution or repeal shall also be deemed to amend
S. 3228 13 1 any local law, ordinance or resolution enacted by such a city imposing 2 such taxes pursuant to the authority of this subdivision, whether or not 3 such taxes are suspended at the time such city enacts its resolution 4 pursuant to subdivision (t) of this section or at the time of such 5 repeal; provided, further, that any such local law, ordinance or resol- 6 ution and section eleven hundred seven of this chapter, as deemed to be 7 amended in the event a city of one million or more enacts a resolution 8 pursuant to the authority of subdivision (t) of this section, shall be 9 further amended, as provided in section twelve hundred eighteen of this 10 subpart, so that the hot or prepared food items exemption in any such 11 local law, ordinance or resolution or in such section eleven hundred 12 seven of this chapter is the same as the hot or prepared food items 13 exemption in paragraph one-a of subdivision (a) of section eleven 14 hundred fifteen of this chapter. 15 § 4. Subdivision (d) of section 1210 of the tax law, as amended by 16 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 17 read as follows: 18 (d) A local law, ordinance or resolution imposing any tax pursuant to 19 this section, increasing or decreasing the rate of such tax, repealing 20 or suspending such tax, exempting from such tax the energy sources and 21 services described in paragraph three of subdivision (a) or of subdivi- 22 sion (b) of this section or changing the rate of tax imposed on such 23 energy sources and services or providing for the credit or refund 24 described in clause six of subdivision (a) of section eleven hundred 25 nineteen of this chapter, or electing or repealing the exemption for 26 residential solar equipment and electricity in subdivision (ee) of 27 section eleven hundred fifteen of this article, or the exemption for 28 commercial solar equipment and electricity in subdivision (ii) of 29 section eleven hundred fifteen of this article, or electing or repealing 30 the exemption for commercial fuel cell electricity generating systems 31 equipment and electricity generated by such equipment in subdivision 32 (kk) of section eleven hundred fifteen of this article must go into 33 effect only on one of the following dates: March first, June first, 34 September first or December first; provided, that a local law, ordinance 35 or resolution providing for the exemption described in paragraph thirty 36 of subdivision (a) of section eleven hundred fifteen of this chapter or 37 repealing any such exemption or a local law, ordinance or resolution 38 providing for a refund or credit described in subdivision (d) of section 39 eleven hundred nineteen of this chapter or repealing such provision so 40 provided must go into effect only on March first; provided, further, 41 that a local law, ordinance or resolution providing for the exemption 42 described in paragraph one-a of subdivision (a) of section eleven 43 hundred fifteen of this chapter or repealing any such exemption so 44 provided and a resolution enacted pursuant to the authority of subdivi- 45 sion (t) of this section providing such exemption or repealing such 46 exemption so provided may go into effect immediately. No such local law, 47 ordinance or resolution shall be effective unless a certified copy of 48 such law, ordinance or resolution is mailed by registered or certified 49 mail to the commissioner at the commissioner's office in Albany at least 50 ninety days prior to the date it is to become effective. However, the 51 commissioner may waive and reduce such ninety-day minimum notice 52 requirement to a mailing of such certified copy by registered or certi- 53 fied mail within a period of not less than thirty days prior to such 54 effective date if the commissioner deems such action to be consistent 55 with the commissioner's duties under section twelve hundred fifty of 56 this article and the commissioner acts by resolution. Where the
S. 3228 14 1 restriction provided for in section twelve hundred twenty-three of this 2 article as to the effective date of a tax and the notice requirement 3 provided for therein are applicable and have not been waived, the 4 restriction and notice requirement in section twelve hundred twenty- 5 three of this article shall also apply. 6 § 5. Section 1210 of the tax law is amended by adding a new subdivi- 7 sion (t) to read as follows: 8 (t) Notwithstanding any other provision of state or local law, ordi- 9 nance or resolution to the contrary: (1) Any city having a population of 10 one million or more in which the taxes imposed by section eleven hundred 11 seven of this chapter are in effect, acting through its local legisla- 12 tive body, is hereby authorized and empowered to elect to provide the 13 exemption from such taxes for the same hot or prepared food items exempt 14 from state sales and compensating use taxes described in paragraph one-a 15 of subdivision (a) of section eleven hundred fifteen of this chapter by 16 enacting a resolution in the form set forth in paragraph two of this 17 subdivision; whereupon, upon compliance with the provisions of subdivi- 18 sions (d) and (e) of this section, such enactment of such resolution 19 shall be deemed to be an amendment to such section eleven hundred seven 20 and such section eleven hundred seven shall be deemed to incorporate 21 such exemption as if it had been duly enacted by the state legislature 22 and approved by the governor. 23 (2) Form of resolution: Be it enacted by the (insert proper title of 24 local legislative body) as follows: 25 Section one. Receipts from sales of and consideration given or 26 contracted to be given for purchases of hot or prepared food items 27 exempt from state sales and compensating use taxes pursuant to paragraph 28 one-a of subdivision (a) of section eleven hundred fifteen of this chap- 29 ter shall also be exempt from sales and compensating use taxes imposed 30 in this jurisdiction. 31 Section two. This resolution shall take effect, (insert the date) and 32 shall apply to sales made and uses occurring on and after that date 33 although made or occurring under a prior contract. 34 § 6. The commissioner of taxation and finance is hereby authorized to 35 implement the provisions of this act with respect to the elimination of 36 the imposition of sales tax, additional taxes, and supplemental taxes on 37 hot and prepared food items and all other taxes so addressed by this 38 act. 39 § 7. This act shall take effect on the first day of the sales tax 40 quarterly period, as described in subdivision (b) of section 1136 of the 41 tax law, beginning at least 90 days after the date this act shall have 42 become a law and shall apply in accordance with the applicable transi- 43 tional provisions of sections 1106 and 1217 of the tax law and shall 44 expire and be deemed repealed two years after such date. 45 § 2. Severability. If any clause, sentence, paragraph, section or part 46 of this act shall be adjudged by any court of competent jurisdiction to 47 be invalid and after exhaustion of all further judicial review, the 48 judgment shall not affect, impair, or invalidate the remainder thereof, 49 but shall be confined in its operation to the clause, sentence, para- 50 graph, section or part of this act directly involved in the controversy 51 in which the judgment shall have been rendered. 52 § 3. This act shall take effect immediately provided, however, that 53 the applicable effective date of Parts A through D of this act shall be 54 as specifically set forth in the last section of such Parts.