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A09033 Summary:

BILL NOA09033
 
SAME ASSAME AS S08049
 
SPONSORLupardo
 
COSPNSRStirpe, McDonald, Dickens, Gottfried, Woerner, Fahy, Gibbs, Jacobson, Zebrowski, Jackson
 
MLTSPNSRGunther, Simon
 
Amd §1115, Tax L
 
Exempts certain property and services used in the cultivation of cannabis for adult-use from sales and compensating use taxes.
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A09033 Actions:

BILL NOA09033
 
01/21/2022referred to ways and means
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A09033 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9033
 
SPONSOR: Lupardo
  TITLE OF BILL: An act to amend the tax law, in relation to exempting certain property and services used in the cultivation of cannabis for adult-use from sales and compensating use taxes   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to include licensed cannabis cultiva- tors in the category of farming operations which receive exemptions of certain sales and use taxes.   SUMMARY OF PROVISIONS: Section 1: Paragraph 6 of subdivision (a) of section 1115 of the tax law is amended. This paragraph exempts sales tax on tangible personal prop- erty which is used for the production for sale of tangible personal property by farming or commercial horse boarding. Section 2: Establishes the effective date. JUSTIFICATION: Currently, farming and commercial horse boarding operations are allowed exemptions from certain sales and use taxes when the tangible personal property is used or consumed predominately in the production of farming products. The current law also includes the exemption of paying sales taxes on motor vehicles that are used predominately on the farm: This legislation seeks to clarify that cannabis cultivation is a farming activity that qualifies for the same sales and use tax exemptions.   PRIOR LEGISLATIVE HISTORY: This is new legislation.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: The fiscal implications are unknown at this time as the Office of Canna- bis Management has not issued any cannabis cultivators licenses.   EFFECTIVE DATE: This act shall take effect immediately.
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A09033 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9033
 
                   IN ASSEMBLY
 
                                    January 21, 2022
                                       ___________
 
        Introduced  by M. of A. LUPARDO -- read once and referred to the Commit-
          tee on Ways and Means
 
        AN ACT to amend the tax law, in relation to exempting  certain  property
          and  services  used  in the cultivation of cannabis for adult-use from
          sales and compensating use taxes
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph 6 of subdivision (a) of section 1115 of the tax
     2  law, as amended by section 5 of part B of chapter  63  of  the  laws  of
     3  2000, is amended to read as follows:
     4    (6)  (A)  Tangible personal property, whether or not incorporated in a
     5  building or structure, for use or consumption predominantly [either]  in
     6  the  production  for sale of tangible personal property by farming [or],
     7  in a commercial horse boarding operation, or [in  both]  in  the  culti-
     8  vation  of  cannabis  for  adult-use pursuant to an adult-use cultivator
     9  license, an adult-use cooperative license, or  a  microbusiness  license
    10  pursuant to article four of the cannabis law.
    11    (B)  With  respect to the exemption of motor vehicles under this para-
    12  graph, (i) use of a motor vehicle [either] in the  production  phase  of
    13  farming [or], in a commercial horse boarding operation, or [in both,] in
    14  the  cultivation  of  cannabis  for  adult-use  pursuant to an adult-use
    15  cultivator license, an adult-use cooperative license, or a microbusiness
    16  license pursuant to article four of the cannabis law shall be defined as
    17  any use of the motor vehicle on property [either] farmed [or], used in a
    18  commercial horse boarding operation, or [both] used in  the  cultivation
    19  of  cannabis  for adult-use pursuant to an adult-use cultivator license,
    20  an adult-use cooperative license, or a microbusiness license pursuant to
    21  article four of the cannabis law, by the motor vehicle purchaser or user
    22  or in direct and uninterrupted trips between properties farmed  or  used
    23  in  such  operation[,  or  both,]  or  cultivation  by the motor vehicle
    24  purchaser or user, and (ii) "predominantly" shall mean  that  more  than
    25  fifty  percent  of  the  motor vehicle's use is either in the production
    26  phase of farming [or], in a commercial horse boarding operation,  or  in
    27  [both]  the  cultivation of cannabis for adult-use pursuant to an adult-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14079-01-1

        A. 9033                             2
 
     1  use cultivator license, an adult-use cooperative license,  or  a  micro-
     2  business  license  pursuant  to  article  four  of the cannabis law. The
     3  percentage of such vehicle's use [either] in  the  production  phase  of
     4  farming [or], in a commercial horse boarding operation, or in [both] the
     5  cultivation  of cannabis for adult-use pursuant to an adult-use cultiva-
     6  tor license,  an  adult-use  cooperative  license,  or  a  microbusiness
     7  license  pursuant  to  article four of the cannabis law, may be computed
     8  either on the basis of mileage or hours of use, at the discretion of the
     9  motor vehicle purchaser or user. A person may purchase a  motor  vehicle
    10  qualifying  for  exemption  under  this paragraph without payment of tax
    11  imposed by section eleven hundred five or eleven  hundred  ten  of  this
    12  article  by furnishing the vendor a properly completed exemption certif-
    13  icate promulgated by the commissioner; and such purchaser  may  register
    14  such  vehicle  or apply for a certificate of title for such vehicle with
    15  the commissioner of motor vehicles or a county clerk, without payment of
    16  such taxes, by furnishing such a properly completed certificate to  such
    17  commissioner or clerk.
    18    § 2.  This act shall take effect immediately.
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