BILL NUMBER: S730
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting railroad rolling
stock from sales and compensating use taxes
 
PURPOSE:
To amend the tax law, creating a sales and use tax exemption for
manufacturers of railroad rolling stock.
 
SUMMARY OF PROVISIONS:
Section 1. Provides for the amending of the tax law to create the sales
and use tax exemption and to define "railroad rolling stock" for the
purpose of this section.
Section two establishes the effective date.
 
JUSTIFICATION:
New York is the only state in the country with a railroad rolling stock
manufacturing plant that does not exempt such goods from sales and use
tax when sold directly by the manufacturer, placing them at a compet-
itive disadvantage. Importantly, this legislation provides that
exemption in anticipation of it promoting growth in the industry, there-
by increasing its workforce, by allowing it to compete fairly in the
interstate market with out-of-state manufacturers.
 
LEGISLATIVE HISTORY:
2023-24: S.5210/A.5823 Referred to Budget and Revenue/Referred to Ways
and Means
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Takes effect on the first day of a sales tax quarterly period next
commencing at least sixty days after this act shall have become a law.

Statutes affected:
S730: 1115 tax law