Source: https://www.nysenate.gov/legislation/bills/2017/s4623/amendment/a
Timestamp: 2019-09-21 00:32:38
Document Index: 363936358

Matched Legal Cases: ['§1115', '§1149', '§  3', '§  4', '§ 1149', '§ 5', '§ 4', '§  1149', '§ 5']

NY State Senate Bill S4623A
senate Bill S4623A
Provides an exemption for tangible personal property and services sold by a cemetery
Get Status Alerts for S4623A
Jun 18, 2018 ordered to third reading cal.1833
Feb 08, 2018 print number 4623a
Feb 08, 2018 amend and recommit to investigations and government operations
ordered to third reading cal.2158
Feb 23, 2017 referred to investigations and government operations
S4623 - Details
Amd §§1115 & 1116, add §1149, Tax L
S3701, A3726
S4623 - Summary
Provides an exemption for tangible personal property and services sold by a cemetery; establishes an amnesty program for cemetery corporations.
S4623 - Sponsor Memo
BILL NUMBER:  S4623
providing an exemption for tangible personal property and services
sold by a cemetery; in relation to establishing an amnesty program for
To clarify and provide that sales of tangible property and services by
cemetery corporations for exclusive use on the grounds of the cemetery
Section 2 - amends subdivision (a) of section 1115 of the Tax Law to
add a new paragraph (7-a) to exclude from sales tax tangible personal
property and services sold by a cemetery for exclusive use on the
grounds and in the buildings of the cemetery corporation including,
but not limited to, the additional services provided by a cemetery as
defined in paragraph (b) of section 1509 of the Not For Profit
Corporation Law and for the maintenance and preservation of lots,
plots and parts thereof.
Section 3 - amends subdivision (a) of section 116 of the Tax Law by
adding a new paragraph (10) to add as organizations exempt from sales
tax cemetery corporations as defined in paragraph (a) of section 1502
of the Not For Profit Law, including, but not limited to, cemeteries
regulated by the Religious Corporations Law, where it is the
purchaser, user or consumer, or where it is the vendor of services or
property exclusively to be used on the grounds or buildings of the
Section 4 - adds a new section 1149 to the Tax Law creating an amnesty
program to waive interest and penalties for previous sales taxes for
periods prior to December 31, 2017 if returns are timely filed and
payment is made by March 15, 2018, or such date as set forth in a bill
previously sent by the Department of Taxation.
Tax Law section 1115 lists certain activities and sales that are
exempt from sales taxes; Tax Law section 1116 lists certain entities
that are exempt from sales taxes.
Cemeteries in New York are not-for-profit entities.  Regulated
cemeteries in the state become the responsibility of local governments
should they become insolvent or face serious financial distress.
Recently the Department of Taxation and Finance has conducted audits
and has determined based upon its interpretation of current statutes
that sales of certain goods and services by cemeteries for use within
the cemeteries are subject to sales taxes, even though cemeteries have
not regularly, if ever, been collecting such sales tax. The reviews
for such sales have gone back years to determine sales tax liability.
The Department has also unofficially opined that certain cemetery
services may also be taxable even though those services only relate to
the care of cemetery property. The cemeteries, not believing that
sales tax was due on such sales, have not been collecting sales taxes
from purchasers, and find themselves with unexpected liabilities with
no reasonable way to pay them.
It is well recognized that many cemeteries across the state are facing
financial difficulties. Underfunded endowment funds, coupled with low
rates of return because of continuing low interest rates, have meant
that cemeteries are struggling and the failed cemetery operations must
be assumed by the localities where they are located. Unexpected
imposition of sales taxes coupled with high penalties and interest
will jeopardize the fiscal wellbeing of additional cemeteries. Such
costs then become a continuing burden and unfunded mandate on local
taxpayers. This bill clarifies what New York's not-for-profit
cemeteries generally understood to be the law.
S4623 - Bill Text download pdf
tangible personal  property  and  services  sold  by  a  cemetery;  in
relation to establishing an amnesty program for cemetery corporations
Section 1. Declaration of policy. The people  of  this  state  have  a
vital  interest  in  the maintenance and preservation of cemetery corpo-
rations to prevent them from becoming a burden  upon  local  governments
and  the  community.  The preservation of cemetery funds is vital to the
long-term maintenance  and  preservation  of  these  burial  grounds  to
prevent  abandonment  and dilapidation. In order to preserve this order,
and the uniqueness of cemetery corporations, clarifications of  cemetery
sales tax collections are necessary.
adding a new paragraph 7-a to read as follows:
(7-A) TANGIBLE PERSONAL PROPERTY AND SERVICES SOLD BY A  CEMETERY  FOR
THE  EXCLUSIVE  USE  ON THE GROUNDS AND IN THE BUILDINGS OF THE CEMETERY
CORPORATION  INCLUDING  BUT  NOT  LIMITED  TO  THE  ADDITIONAL  SERVICES
PROVIDED  BY  A  CEMETERY AS DEFINED IN PARAGRAPH (B) OF SECTION FIFTEEN
HUNDRED NINE OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR  THE  MAINTE-
NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF.
§  3.  Subdivision  (a)  of  section 1116 of the tax law is amended by
(10) A CEMETERY CORPORATION, AS DEFINED IN PARAGRAPH  (A)  OF  SECTION
FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
NOT  LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS CORPORATIONS
LAW WHERE IT IS THE PURCHASER, USER, OR CONSUMER, OR  WHERE  IT  IS  THE
LBD09591-01-7
S. 4623                             2
VENDOR  OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS OR
BUILDINGS OF THE CORPORATION.
§  4.  The  tax law is amended by adding a new section 1149 to read as
§ 1149. AMNESTY PROGRAM. (A) NOTWITHSTANDING  THE  PROVISIONS  OF  ANY
OTHER  LAW  TO  THE  CONTRARY,  THERE  IS  HEREBY ESTABLISHED AN AMNESTY
PROGRAM AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER,  TO
BE  EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR ALL
ELIGIBLE TAXPAYERS AS DESCRIBED  HEREIN,  OWING  ANY  TAX  OR  SURCHARGE
IMPOSED  OR  FORMERLY IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN
HUNDRED TEN OF THIS ARTICLE, AND ADMINISTERED BY SUCH COMMISSIONER.
(B) SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE  TAXES
SET FORTH IN SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS
ARTICLE  FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON
OR BEFORE DECEMBER THIRTY FIRST, TWO THOUSAND SEVENTEEN.
(C) FOR  PURPOSES  OF  THE  AMNESTY  PROGRAM  ESTABLISHED  UNDER  THIS
SECTION,  AN  ELIGIBLE  TAXPAYER IS A CEMETERY CORPORATION AS DEFINED BY
PARAGRAPH (A) OF SECTION  FIFTEEN  HUNDRED  TWO  OF  THE  NOT-FOR-PROFIT
CORPORATION  LAW  WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO ONE OR
MORE OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN  SUBDI-
VISION (B) OF THIS SECTION.
(D)  THE  AMNESTY  PROGRAM ESTABLISHED HEREIN SHALL PROVIDE, THAT UPON
APPLICATION, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS
SHALL BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY  THE
COMMISSIONER  OF TAXATION AND FINANCE, BY AN ELIGIBLE TAXPAYER, AND UPON
PAYMENT IN SUCH FORM AND IN SUCH MANNER AS PRESCRIBED  BY  SUCH  COMMIS-
SIONER, WHICH PAYMENT SHALL EITHER ACCOMPANY SUCH APPLICATION OR BE MADE
WITHIN  THE  TIME  STATED  ON A BILL ISSUED BY SUCH COMMISSIONER TO SUCH
TAXPAYER, OF THE AMOUNT OF A TAX LIABILITY UNDER  ONE  OR  MORE  OF  THE
DESIGNATED  TAXES  WITH RESPECT TO WHICH AMNESTY IS SOUGHT, SUCH COMMIS-
SIONER SHALL WAIVE ANY APPLICABLE PENALTIES AND INTEREST (INCLUDING  THE
ADDITIONAL  RATE  OF  INTEREST  PRESCRIBED  UNDER SECTION ELEVEN HUNDRED
FORTY-FIVE OF THIS PART). IN ADDITION, NO CIVIL, ADMINISTRATIVE OR CRIM-
INAL ACTION OR PROCEEDING SHALL BE  BROUGHT  AGAINST  SUCH  AN  ELIGIBLE
TAXPAYER  RELATING  TO THE TAX LIABILITY COVERED BY SUCH WAIVER. FAILURE
TO PAY ALL SUCH TAXES BY THE LATER  OF  MARCH  FIFTEENTH,  TWO  THOUSAND
EIGHTEEN,  OR  THE  DATE  PRESCRIBED  THEREFOR  ON A BILL ISSUED BY SUCH
COMMISSIONER, SHALL INVALIDATE  ANY  AMNESTY  GRANTED  PURSUANT  TO  THE
AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
(E) AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA-
TION  AND  BE  SUBMITTED  AS  PRESCRIBED  BY  THE COMMISSIONER AND SHALL
PROVIDE FOR SPECIFICATIONS BY THE APPLICANT OF THE  TAX  LIABILITY  WITH
RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH
ADDITIONAL  INFORMATION  AS  IS  REQUIRED BY SUCH COMMISSIONER.  AMNESTY
SHALL BE GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES  SPECIFIED  BY
THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY
PROGRAM  ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT AS
PROVIDED BY STATUTE. IF THE APPLICANT FILES A FALSE  OR  FRAUDULENT  TAX
RETURN  OR  REPORT,  OR  ATTEMPTS IN ANY MANNER TO DEFEAT OR EVADE A TAX
UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED.
(F) WITH RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT  OF  AN
ELIGIBLE  TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY WITH
RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY
TERMS OF SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS  A  CONDITION
OF  RECEIVING  AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY THE LATER
S. 4623                             3
OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED
THEREFOR ON A BILL ISSUED BY THE COMMISSIONER.
(G)  THE  COMMISSIONER  MAY  PROMULGATE  REGULATIONS,  ISSUE FORMS AND
INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY  TO  IMPLEMENT
THE  PROVISIONS  OF  THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
SUCH COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM  PROVIDED  FOR  IN
§ 5. On or before February 28, 2020, the commissioner of taxation  and
finance  shall  submit  a report to the chairperson of the assembly ways
and means committee, the ranking minority member of  the  assembly  ways
and  means  committee,  the chairperson of the senate finance committee,
the ranking minority member of the  senate  finance  committee  and  the
director  of the budget regarding the amnesty program established pursu-
ant to this act. The report shall contain the following  information  as
of  the  report cutoff date:  (i) the gross revenue collected under each
tax and the year or other applicable period  for  or  during  which  the
liability  was  incurred; (ii) the amount of money spent on advertising,
notification,  and  outreach  activities,  by  each  activity,   and   a
description  of  the form and content of such activities, by each activ-
ity; (iii) the amount paid by the department of taxation and finance for
services and expenses  related  to  the  establishment  of  the  amnesty
program;  and  (iv)  an  estimate  of the net revenue generated from the
S4623A (ACTIVE) - Details
S4623A (ACTIVE) - Summary
S4623A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4623A
an exemption for tangible personal property and services sold by a ceme-
tery; in relation to establishing an amnesty program for cemetery corpo-
Section 2 - amends subdivision (a) of section 1115 of the Tax Law to add
a new paragraph (7-a) to exclude from sales tax tangible personal prop-
erty and services sold by a cemetery for exclusive use on the grounds
and in the buildings of the cemetery corporation including, but not
limited to, the additional services provided by a cemetery as defined in
paragraph (b) of section 1509 of the Not For Profit Corporation Law and
for the maintenance and preservation of lots, plots and parts thereof.
tax cemetery corporations as defined in paragraph (a) of section 1502 of
the Not For Profit Law, including, but not limited to, cemeteries regu-
lated by the Religious Corporations Law, where it is the purchaser, user
or consumer, or where it is the vendor of services or property exclu-
sively to be used on the grounds or buildings of the corporation.
periods prior to December 31, 2018 if returns are timely filed and
payment is made by March 15, 2019, or such date as set forth in a bill
Tax Law section 1115 lists certain activities and sales that are exempt
from sales taxes; Tax Law section 1116 lists certain entities that are
exempt from sales taxes.
Cemeteries in New York are not-for-profit entities.  Regulated ceme-
teries in the state become the responsibility of local governments
should they become insolvent or face serious financial distress. Recent-
ly the Department of Taxation and Finance has conducted audits and has
determined based upon its interpretation of current statutes that sales
of certain goods and services by cemeteries for use within the ceme-
teries are subject to sales taxes, even though cemeteries have not regu-
larly, if ever, been collecting such sales tax. The reviews for such
sales have gone back years to determine sales tax liability. The Depart-
ment has also unofficially opined that certain cemetery services may
also be taxable even though those services only relate to the care of
cemetery property. The cemeteries, not believing that sales tax was due
on such sales, have not been collecting sales taxes from purchasers, and
find themselves with unexpected liabilities with no reasonable way to
be assumed by the localities where they are located. Unexpected imposi-
tion of sales taxes coupled with high penalties and interest will jeop-
ardize the fiscal wellbeing of additional cemeteries. Such costs then
become a continuing burden and unfunded mandate on local taxpayers. This
bill clarifies what New York's not-for-profit cemeteries generally
understood to be the law.
2017 - S.4623/A.7647 - PASSED SENATE/Ways & Means
S4623A (ACTIVE) - Bill Text download pdf
4623--A
Introduced  by  Sens.  RANZENHOFER,  AMEDORE,  CROCI,  FELDER, GALLIVAN,
HANNON, HELMING, RITCHIE, SAVINO -- read twice  and  ordered  printed,
LBD09591-02-8
S. 4623--A                          2
§ 4. The tax law is amended by adding a new section 1149  to  read  as
§  1149.  AMNESTY  PROGRAM.  (A) NOTWITHSTANDING THE PROVISIONS OF ANY
OTHER LAW TO THE  CONTRARY,  THERE  IS  HEREBY  ESTABLISHED  AN  AMNESTY
PROGRAM  AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER, TO
BE EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR  ALL
ELIGIBLE  TAXPAYERS  AS  DESCRIBED  HEREIN,  OWING  ANY TAX OR SURCHARGE
IMPOSED OR FORMERLY IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE  AND  ELEVEN
(B)  SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE TAXES
ARTICLE FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING  ON
OR BEFORE DECEMBER THIRTY FIRST, TWO THOUSAND EIGHTEEN.
(C)  FOR  PURPOSES  OF  THE  AMNESTY  PROGRAM  ESTABLISHED  UNDER THIS
SECTION, AN ELIGIBLE TAXPAYER IS A CEMETERY CORPORATION  AS  DEFINED  BY
PARAGRAPH  (A)  OF  SECTION  FIFTEEN  HUNDRED  TWO OF THE NOT-FOR-PROFIT
CORPORATION LAW WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO  ONE  OR
MORE  OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN SUBDI-
(D) THE AMNESTY PROGRAM ESTABLISHED HEREIN SHALL  PROVIDE,  THAT  UPON
SHALL  BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY THE
COMMISSIONER, BY AN ELIGIBLE TAXPAYER, AND UPON PAYMENT IN SUCH FORM AND
IN SUCH MANNER AS PRESCRIBED BY SUCH COMMISSIONER, WHICH  PAYMENT  SHALL
EITHER ACCOMPANY SUCH APPLICATION OR BE MADE WITHIN THE TIME STATED ON A
BILL  ISSUED  BY  SUCH COMMISSIONER TO SUCH TAXPAYER, OF THE AMOUNT OF A
TAX LIABILITY UNDER ONE OR MORE OF THE DESIGNATED TAXES WITH RESPECT  TO
WHICH  AMNESTY  IS  SOUGHT, SUCH COMMISSIONER SHALL WAIVE ANY APPLICABLE
PENALTIES AND  INTEREST  (INCLUDING  THE  ADDITIONAL  RATE  OF  INTEREST
PRESCRIBED  UNDER  SECTION  ELEVEN  HUNDRED FORTY-FIVE OF THIS PART). IN
ADDITION, NO CIVIL, ADMINISTRATIVE  OR  CRIMINAL  ACTION  OR  PROCEEDING
SHALL  BE  BROUGHT AGAINST SUCH AN ELIGIBLE TAXPAYER RELATING TO THE TAX
LIABILITY COVERED BY SUCH WAIVER. FAILURE TO PAY ALL SUCH TAXES  BY  THE
LATER  OF MARCH FIFTEENTH, TWO THOUSAND NINETEEN, OR THE DATE PRESCRIBED
THEREFOR ON A BILL ISSUED BY SUCH  COMMISSIONER,  SHALL  INVALIDATE  ANY
AMNESTY  GRANTED  PURSUANT TO THE AMNESTY PROGRAM ESTABLISHED UNDER THIS
TION AND BE SUBMITTED  AS  PRESCRIBED  BY  THE  COMMISSIONER  AND  SHALL
PROVIDE  FOR  SPECIFICATIONS  BY THE APPLICANT OF THE TAX LIABILITY WITH
ADDITIONAL INFORMATION AS IS REQUIRED BY  SUCH  COMMISSIONER.    AMNESTY
SHALL  BE  GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES SPECIFIED BY
PROGRAM ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT  AS
PROVIDED  BY  STATUTE.  IF THE APPLICANT FILES A FALSE OR FRAUDULENT TAX
RETURN OR REPORT, OR ATTEMPTS IN ANY MANNER TO DEFEAT  OR  EVADE  A  TAX
(F)  WITH  RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT OF AN
ELIGIBLE TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY  WITH
S. 4623--A                          3
TERMS  OF  SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS A CONDITION
OF RECEIVING AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY  THE  LATER
§ 5. On or before February 28, 2021, the commissioner of taxation  and