New York S 9065: Relates to terminal rental adjustment clauses in motor vehicle leases

Bill Text

STATE OF NEW YORK
        ________________________________________________________________________
                                          9065
                    IN SENATE
                                    October 23, 2020
                                       ___________
        Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        AN ACT to amend the tax law, in relation to terminal  rental  adjustment
          clauses in motor vehicle leases
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (B) of subdivision (i) of section 1111 of the tax
     2  law, as amended by chapter 20 of the laws of 1992, is amended to read as
     3  follows:
     4    (B)  Notwithstanding any inconsistent provisions of  this  subdivi-(1)
     5  sion,  with respect to a lease of a motor vehicle described in paragraph
     6  (A) of this subdivision for a term of  one  year  or  more  []  which(1)
     7  includes  an  indeterminate  number of options to renew or other similar
     8  contractual provisions or which  includes  thirty-six  or  more  monthly
     9  options  to  renew  beyond the initial term, and [] under which lease(2)
    10  the lessee of such motor vehicle has certified in the writing  described
    11  in  clause (i) of subparagraph (C) of paragraph two of subsection (h) of
    12  section 7701 of the internal revenue code  of  1986,  under  penalty  of
    13  perjury, that the lessee intends that more than fifty percent of the use
    14  of  such  vehicle  is  to  be  in a trade or business of the lessee, the
    15  lessor shall: (i) pay tax on the receipts from the sale of or  consider-
    16  ation  given  or contracted to be given for the purchase, as measured by
    17  subdivision (b) of section eleven hundred ten  of  this  part,  of  such
    18   allvehicle  for  lease;  or  (ii)  collect  and  pay tax as measured by
    19  receipts due or consideration given or contracted to be given under such
    20  lease for the first thirty-two months, or the period of the initial term
    21  if greater, of such lease shall be deemed to have  been  paid  or  given
    22  [and  shall  be subject to tax in accordance with the provisions of this
    23  ].subdivision
    24    [] For(2) If a lessor collects and pays tax as measured  under  clause
    25   each such option to(ii)  of  subparagraph  one  of  this paragraph, for
    26  renew, or similar provision, or combination of them, exercised after the
    27  first thirty-two months, or the period of such initial term, if  longer,
    28  of  any  such  lease,  tax due under this article shall be collected and
    29  paid or paid over without regard to this subdivision.
    30    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in  (underscored) is new; matter in bracketsitalics
                              [] is old law to be omitted. 
                                                                   LBD17514-01-0