BILL NUMBER: S1864
SPONSOR: MARTINS
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting purchases made by
civic associations from sales and compensating use tax
 
PURPOSE:
To eliminate sales tax responsibilities for civic associations.
 
SUMMARY OF PROVISIONS:
Section 1. amends subsection (a) of section 1115 of the tax law.
Section 2. Sets the effective date which takes effect on the first day
of the sales tax quarterly period, as described in subdivision (b) of
section 1136 of the tax law, next commencing at least 90 days after this
act shave have become law and shall apply in accordance with the appli-
cable transitional provisions of sections 1106 and 1217 of the tax law.
 
JUSTIFICATION:
This bill would exempt civic associations in New York from sales taxes
in NYS. There is no doubt that the State's failure to grant civic asso-
ciations this exemption is an oversight that should be corrected. Most
expenditures made by civic associations are investments made to promote
a community's social welfare. While it could be argued that there would
be a minimal impact to New York State tax revenue, that would be more
than offset by the contributions that civic associations contribute to
the communities they serve.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first day of the sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
next commencing at least 90 days after this act shave have become law
and shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

Statutes affected:
S1864: 1115 tax law