Monthly Reminders

July 2010

- To add a fresh look to your flower beds turn over the mulch. Keep up with the weeds.

- Check and clean the gutters, drains & catch basins.

- Are your trash barrels looking old or is your dumpster too small for the job? Replace them with new or bigger ones.

- Check your doors, doorknobs, locks and hinges, are they in good working order?

- Grease the springs of your overhead doors. Check their cables, wheels and hinges too!

Do you have a reminder you would like us to post? Send it to us!

News | NYSCWA Legislative Update - Spring 2009

Tax Appeals Court Finds in Hoffman's Favor

By William Y. Crowell, III

In a decision dated December 11, 2008, “In the Matter of the Petition of Hoffman Car Wash, Inc.,” the State of New York Tax Appeals Tribunal determined that the receipts from the sale of carwashes at in-bay automatic carwash facilities are exempt from the imposition of sales tax. The State Division of Taxation contended that the statutory exemption was limited to instances where the purchaser washed the car himself without assistance, and that the in-bay automatic wash was not within the contemplation of the 1997 sales tax exemption.

After a thorough and careful analysis, the Tax Appeals Court concluded that the statute was plain on its face and there was no requirement that the customer manually wash the car. For the sale to be exempt, the customer must wash the car by means of coin-operated equipment, without the assistance of the vendor. This straightforward interpretation of the statute is due to the persistence and commitment of Tom Hoffman, Jr., of Hoffman Car Washes, who took on the Division of Taxation — an expensive and daunting task. This decision benefits all members of the New York State Car Wash Association.

Senate Control Now in Dems Hands
The 2009 legislative session has been dominated by the transition of control
of the State Senate for the first time in 43 years from the Republicans to the Democrats, along with an historic economic situation — a $15 billion deficit facing the State for the 2009-2010 budget.

To date, entering the fifth week of the legislative session, the Senate Democrats have not passed any legislation. Their focus has been on organization of their new majority. Offices are still being transferred as Senate Democrats take over the larger offices formerly occupied by the Republicans. Senate Democrats have also begun hiring additional staff to assist in their increased responsibilities.

Against this backdrop, the budget remains the central focus. The State’s fiscal situation clearly impacts any opportunity to make legislative changes to expand the sales tax exemptions for the carwash industry. Although legislative proposals to treat credit or debit transactions the same as cash purchases for purpose of sales tax, or to exempt washing, waxing and vacuuming from sales tax should be introduced and discussed, the fiscal realities dictate limited opportunities to expand any sales tax exemptions. Your association will be looking for other legislative opportunities and carefully examining new legislation to ensure that the carwash industry in New York State is not negatively impacted as the State searches for additional revenue sources and expands regulation. This legislative session promises to bring a number of new challenges to small businesses throughout New York State.

On the regulatory front, the New York State Department of Labor (DOL) announced the “New York Wage Watch” initiative, modeled after the Neighborhood Watch Program, to establish partnerships between the Labor Department and community groups to monitor compliance and to distribute literature to workers on wage and other labor law violations. This program will begin as a pilot program in New York City and on Long Island. The press release announcing this program cited carwash violations on minimum wage and overtime. (available at http://www.labor.state.ny.us/pressreleases/2009/Jan26_2009.htm)

William Y. Crowell, III is a partner with the Albany-based law firm of Whiteman Osterman & Hanna LLP. He can be contacted at 518/487-7677, or at email him.

Top Stories

Monthly Reminders

Tax Appeals Court Finds in Hoffman's Favor