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Monthly Reminders
May 2012
* Shut off any electric heat tapes, line elimination devices or other equipment designed to prevent freezing during the winter.....save on electricity!
*Run an ad for detailing
* Yard cleanup; leaf and debris pickup, rake and fertilize any grass areas, mulch and prepare flower beds for planting
* Order flowers they are a cost effective way to dress up any location. Tired of planting every year? Plant annuals they come back on their own year after year.
Do you have a reminder you would like us to post? Send it to us!
Tip: Have you started your saftey binder?.... check out the blog CarWash Safety 101 for more details
News | NYSCWA Legislative Update
NYSCWA Legislative Update - Spring 2011
Association to Set Legislative Direction
By William Y. Crowell, III
IAs the 2011 Legislature begins its session in earnest with Governor Cuomo having delivered his budget message, the New York State Car Wash Association (NYSCWA) should establish its legislative priorities.
Under existing law, the sales tax exemption for coin-operated carwash services applies only to currency-operated or coin-operated machines. It does not include debit or credit cards where the coin-operated equipment also accepts payment by a debit or credit card. A customer who uses an inbay automatic carwash and pays for the car ash using currency or coin pays no sales tax, where a consumer who uses their debit or credit card does pay sales tax. The current application of the sales tax effectively discriminates against carwash consumers based on their form of payment. Consumers often direct their frustration with this situation to carwash operators who bear no responsibility.
Legislation to correct this unfair treatment was vetoed by Governor
Paterson in 2008 based in large measure on the negative fiscal impact
ascribed to this change. It was calculated by the New York State Department
of Taxation & Finance to cost the state and local governments $4.6 million.
Despite the fact that the State’s fiscal condition worsened since 2008, this measure should be re-introduced to keep this consumer-oriented issue alive. Assemblyman Joseph Morelle has agreed to sponsor this legislation, and Senator Jim Seward is reviewing it for introduction.
Legislation was also included on the Association’s agenda in 2008 to
provide an exemption from sales tax for receipts from the services of
washing, waxing and vacuuming a car by full-service exterior carwash
operators. This bill would apply to situations where the carwash operator or
his employees assist the purchaser by washing, waxing or vacuuming the
vehicle. This proposal would not extend the exemption to full-out detailing.
The current distinctions for the application of sales tax create inequity
within the carwash industry. Payment to a person rather than an automated
machine should not be the basis for application of sales tax. In fact, when
the employment numbers in New York State are distressed, the State should
be evaluating the merits of a tax policy which encourages automation of
carwashes.
Carwashing is a manufacturing process and sales tax is paid on all
products and equipment used in connection with the carwash. The
application of sales tax on the service in addition to the products and
equipment represents double taxation. Tax policy should support an industry
dominated by small businesses which are producing an environmentally
friendly product.
Even though the passage of such a sales tax exemption proposal will be
extremely difficult to achieve with the current budget crisis, this important
issue should be continued as part of the Association’s legislative agenda.
Introduction of this legislative proposal keeps these tax issues on the table.
As this industry appreciates, changes in tax policy are incremental and
require continued effort until conditions are ripe for change.
The dire fiscal situation in New York State, with at least a $10 billion
shortfall, requires the carwash industry to be vigilant as to an elimination of
current sales tax exemptions. We only need to look to our border state of
Connecticut, where there is an effort to re-impose the sales tax on carwash
services. In New York, despite pledges of no new taxes, there have been
distinctions made based on “loophole closers.” The thirst for revenues in
New York State will be great so at this point, nothing is impossible.
William Y. Crowell is a partner with the Albany-based law firm of Whiteman Osterman & Hanna LLP. He can be reached at 518/487-7677.