BILL NUMBER: S2246
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting from the tax on
retail sales the portion of a receipt from the purchase of a motor vehi-
cle which is reduced due to a rebate or discount provided by a manufac-
turer to the purchaser
 
PURPOSE OR GENERAL IDEA OF BILL:
To eliminate the sales tax on instant rebates given from the manufactur-
er to the purchaser of a vehicle
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - Adds subdivision 14-b to the tax law to allow for the
exemption of sales tax on an instant rebate given to a purchaser from a
manufacturer of a motor vehicle.
Section 2 - Effective date.
 
JUSTIFICATION:
When people are shopping for new cars, they are often offered an instant
rebate from the manufacturer to incentivize them to purchase a vehicle.
Even though the purchaser is not paying for the full price of the vehi-
cle they are still required to pay sales tax on the full purchase amount
before the instant rebate was deducted. The purchaser is then paying
sales tax on money they did not spend. This bill would exempt from sales
tax instant rebates given from a manufacturer to a purchaser.
 
PRIOR LEGISLATIVE HISTORY:
2024: S1259 Comrie/ A3805 Gunther
2022: S3549
 
FISCAL IMPLICATIONS:
Minimal.
 
EFFECTIVE DATE:
This act shall take effect immediately

Statutes affected:
S2246: 1115 tax law