SENATOR BRUNO URGES "TAX-FREE" SALES WEEK FOR COMPUTERS

Measure to Promote Sales of Home PCs to Make N.Y. a Tech Leader

Tuesday, January 30, 2001

Seeking to build on the Senate Majority's commitment to promoting bio- and high-technology and boosting New Yorkers' computer literacy, Senate Majority Leader Joseph L. Bruno today proposed creation of a "Sales Tax-Free PC Week" to encourage the purchase and use of home computers.

The proposal seeks a one-week waiver of the state and local sales tax on home computers, accessories and certain software during back-to-school shopping time in August as a way to entice individuals, families with children, and senior citizens to buy computers or replace outdated units.

The goal is to bring a quarter million or more new computers into New Yorkers' homes, and lift New York's ranking among states for home computer use from its current 34th in the nation.

"Over the past decade, personal computers have become a necessity in the household and knowledge of computers and their use is now considered essential for anyone seeking to excel in an increasingly technology-based economy," said Senator Bruno (R-C, Brunswick).

New York has been a national leader in bringing computers and Internet access into school classrooms, but recent studies showed students who also had computers at home were nine times more likely to use the technology.

An October 2000 report by the U.S. Commerce Department showed that New York lagged behind most states in the percentage of homes with computers. The study found that 48.7 percent of New York homes had computers, far behind states like Washington, California and neighboring New Jersey, Connecticut and Vermont, which each scored in the top third of states.

The biggest disparity in home computer ownership exists in rural communities and inner cities, the Commerce Department study found.

The Senate Majority proposal, valued at $20 million, would provide a one-week exemption from state and local sales tax for purchases in-store or over the Internet of:

* complete computer units, including laptops, desktops, or tower personal computers. A complete unit comprises a minimum of a central processing unit (CPU), storage drive, random access memory, keyboard and display monitor;

* peripherals such as printers, scanners, extra memory cards, cables, modems and CD-ROM drivers, when purchased within the same transaction as a complete PC unit;

* software when purchased as part of the same transaction as a new PC.

Counties would receive reimbursement from the state for lost sales tax revenue under the Senate Majority plan. Expected retailer promotions and the Senate Majority initiative could save consumers hundreds of dollars on the purchase of new home computer equipment.

"Promoting high-technology knowledge, skill and opportunity is the top economic development priority for the Senate Majority. This proposal seeks to build on our high-tech accomplishments and make additional investments in New York's high-tech future," Senator Bruno said.

Last year, Pennsylvania pioneered the idea of a sales tax-free PC week, resulting in a threefold increase in computer sales by retailers in that state. New York would be only the second state to offer such a tax break.

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