New York Assembly Bill A03063

New York 2025-2026 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25
• Refer: 1/7/26

Caption

Repeals certain provisions relating to use tax exemptions for certain race horses; prevents nonresident race horse owners from avoiding use tax in certain situations.

Summary

This bill amends New York’s Tax Law to eliminate certain use tax exemptions and exclusions that currently apply to race horses brought into the state by nonresidents. It repeals a specific sales/use tax exemption for certain race horses and removes related provisions that had allowed some nonresident owners to avoid use tax when bringing horses into New York for racing. The bill also narrows an existing exclusion for nonresident entities that purchase property or services outside New York and bring them into the state. Under the amended language, that exclusion would not apply to horses brought into New York for racing, even if the nonresident owner has been doing business outside the state for at least six months. The act would take effect immediately.

Impact

The bill would change the Tax Law by repealing section 1115(a)(29) and subdivisions 9 and 10 of section 1118, while revising section 1118(2)(b) to specifically deny the nonresident use-tax exclusion for race horses. Its practical effect is to subject certain race horse purchases or uses to New York use tax where exemptions or exclusions may have previously applied, increasing tax liability for nonresident horse owners, trainers, and racing-related businesses. It would also reduce the ability to structure transactions to avoid New York use tax when horses are brought into the state for racing.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate or formal support/opposition in the materials supplied. Based on the bill’s text and caption, the measure appears to be aimed at closing a tax loophole and ensuring race horses used in New York are taxed consistently, which suggests a policy rationale focused on tax fairness and revenue protection. The absence of recorded discussion means the overall sentiment cannot be measured beyond the bill’s apparent anti-avoidance purpose.

Contention

The likely point of contention is whether race horses brought into New York for racing should receive special use-tax treatment, particularly when owned by nonresidents. Supporters would likely argue that the bill prevents tax avoidance and treats racing assets like other taxable property used in the state. Opponents, likely from the racing industry and nonresident horse owners, may argue that the change increases costs, could discourage investment or participation in New York racing, and removes a long-standing exemption or exclusion that helped support the industry.