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Legislative Memo

518.465.7511

BILL:

S.4721 (Nozzolio) / A.5521 (Schimminger)

Support

SUBJECT:

Receipt Tax Exemption for Coin-Operated or Fully Automated Car Washes

 

DATE:

June 21, 2005

 

The Business Council of New York State, Inc., a statewide association of more than 3,600 companies, chambers of commerce, and trade associations which employ more than one million individuals, has reviewed the aforementioned legislation and supports its enactment.

This bill would implement a measure to clarify existing tax law passed in 1997 to exempt receipts from coin-operated or fully automated car washing, waxing or vacuuming facilities from sales and compensating use taxes. This legislation, drafted by the Department of Taxation and Finance, has a fiscal impact of $300,000.

The state's car wash and small business communities have worked with the Department of Taxation and Finance, Senate Finance staff, and Assembly Ways and Means staff for years attempting to clarify the existing law regarding the definition of “in-bay automatic car washes” - as they are known in the industry - so they are exempt from sales tax as they were originally intended. This bill would provide clarity and help resolve the conflict between the car wash industry and the Department of Taxation and Finance on this issue. By doing so, it further ensures continuation of the many benefits New York small businesses provide the citizens of the state.

For all the above stated reasons, The Business Council strongly supports passage of S.4721/A.5521.