Bill > S03856

This bill modifies New York State tax law to change how sales and use taxes are applied to certain aircraft. Specifically, the bill adds noncommercial aircraft with less than 20 passenger seats and a maximum capacity under 6,000 pounds to the categories of vehicles subject to sales and use tax when leased for one year or more. The bill also removes an existing tax exemption for general aviation aircraft by repealing paragraph 21-a of section 1115 of the tax law. For transfers or distributions of aircraft, the bill establishes that sales tax will be computed based on the original purchase price or current market value, and provides provisions for potential tax credits or refunds related to previously paid sales or use taxes. The changes will take effect on June 1, 2025, which gives businesses and taxpayers time to prepare for the new tax treatment. The primary impact is to eliminate previous tax exemptions for certain types of aircraft and ensure that more aircraft transactions are subject to state sales and use taxes.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3856