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S 3874

Repeals subdivision (jj) of section 1115 of the tax law and subdivision 13 of section 1118 of the tax law relating to sales and compensating use taxes imposed with respect to vessels

2025 Regular Session Introduced by Pat Fahy and 2 co-sponsors

Bill S 3874 eliminates sales and use taxes on vessels in New York, easing costs for owners and boosting maritime commerce while potentially reducing state revenue.

REPORTED AND COMMITTED TO FINANCE
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WeVote Research Nonpartisan
Bill Summary · S 3874

Summary of Bill S 3874

Bill Overview

  • Bill Number: S 3874
  • Title: Repeals subdivision (jj) of section 1115 of the tax law and subdivision 13 of section 1118 of the tax law relating to sales and compensating use taxes imposed with respect to vessels
  • Status: Reported and Committed to Finance
  • Introduced: January 30, 2025
  • Classification: Bill

Purpose and Intent

The primary purpose of Bill S 3874 is to repeal specific provisions of the New York tax law that impose sales and compensating use taxes on vessels. By eliminating these tax obligations, the bill aims to reduce the financial burden on vessel owners and promote maritime commerce within the state.

Key Provisions

  • Repeal of Tax Provisions:
    • The bill specifically targets and repeals:
    • Subdivision (jj) of Section 1115: This subdivision currently outlines the sales tax exemptions for certain transactions involving vessels.
    • Subdivision 13 of Section 1118: This subdivision pertains to the compensating use tax applicable to vessels.

By removing these provisions, the bill effectively eliminates the sales and use tax liabilities associated with the purchase and use of vessels in New York.

Impact

  • Affected Parties:

    • Vessel Owners: Individuals and businesses that own vessels will benefit from the repeal, as they will no longer be subject to sales and compensating use taxes on their purchases.
    • Maritime Industry: The bill is expected to stimulate growth in the maritime sector by making vessel ownership more financially accessible, potentially leading to increased sales and usage of vessels.

  • State Revenue: The repeal may result in a decrease in tax revenue for the state, as it removes a source of income derived from vessel-related transactions.

Legislative Timeline

  • January 30, 2025: Bill S 3874 was introduced and referred to the Budget and Revenue Committee.
  • May 28, 2025: The bill was reported and committed to the Finance Committee for further consideration.

Related Bills

  • S 7136 (prior-session)
  • S 430 (prior-session)
  • S 2557 (prior-session)
  • A 3057 (companion bill)

These related bills may provide additional context or alternative approaches to the taxation of vessels and could be relevant for stakeholders monitoring legislative developments in this area.

Conclusion

Bill S 3874 seeks to repeal certain tax provisions affecting vessel owners in New York, aiming to alleviate financial burdens and promote maritime activities. As it progresses through the legislative process, stakeholders in the maritime industry and vessel ownership should stay informed about its potential implications.

Compiled from official sources — confirm details with the bill’s official record.

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