senate Bill S1647

Relates to exempting school bus operators from sales tax for equipment and fuel used in operation of a school bus

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 11 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Offers certain refunds or credits to school bus operators from sales tax for certain school buses and equipment and fuel used in operation of a school bus.

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Bill Details

See Assembly Version of this Bill:
A799
Versions:
S1647
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1119, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1921, A3649
2007-2008: A1224B

Sponsor Memo

BILL NUMBER:S1647

TITLE OF BILL:
An act
to amend the tax law, in relation to providing certain school bus
operators with a refund or credit of
sales and compensating use taxes on the purchase of school
buses and equipment and fuel used in the operation of a school bus

PURPOSE:
To create an incentive for the private school bus operators to quickly
phase-in the use of new clean-fuel school buses with near zero
harmful emissions and ease the escalating financial burden on school
bus operators and property tax payers attributed to various state and
federal mandates, out-of-control insurance premiums and skyrocketing
fuel prices.

SUMMARY OF PROVISIONS:
The bill amends section 1119 of the tax law by phasing in a refund or
credit from state sales and use tax on the sale or use by a school
bus operator of any school bus (used for the transportation of
students to and from school or school related events) and of parts,
equipment, lubricants, motor fuel, maintenance, servicing and repairs.

JUSTIFICATION:
In recent years, school bus contractors have been hit with enormous
increases in costs associated with new clean-fuel school bus
regulations, rising insurance premiums, various state and federal
mandates and skyrocketing fuel prices yet they have received very
small increases in compensation for their long term contracts because
the Consumer price Index, which those increases are based, has not
risen at a rate commensurate with those costs. The financial pinch
has forced many contractors to decide not to extend existing pupil
transportation contracts. Those districts that have had to go out to
RFP or bid in the last few years have found that their costs have
gone up significantly. Exemption from sales tax would ease the
financial strain on contractors, help them conform to new federal
clean-fuel regulations, remain competitive and help them extend
existing contracts.

LEGISLATIVE HISTORY:
2008: S.2441-A Passed Senate and A.1224-B (Passed Ways & Means and
Went to Rules)
2007: S.2441-A Passed Senate and A.1224 - Ways & Means
2006: S.2523 Finance and A.9621 - Ways & Means
2005: S.2523 Finance and A.9621 - Ways & Means
2004: S.5890 Finance and A.9652-B - Rules

FISCAL IMPLICATIONS:
No fiscal impact to the State's 2008-2009 fiscal plan/budget. Based on
the effective date of September 1, 2009 it is estimated that this
legislation would reduce state and local sales tax revenues by $2.5
million in SFY 2009-2010. The state portion of this reduction would
be $1.2 million. In SFY 2011-2012, the first full year of
implementation, it is estimated that this legislation would reduce


state and local sales tax revenues by $10 million with the state
portion being $4.6 million.

EFFECTIVE DATE:
This act shall take effect on the first day of the
sales tax quarterly period next commencing September 1, 2012 after
this act shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1647

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 11, 2011
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to providing certain school bus
  operators with a refund or credit of sales and compensating use  taxes
  on  the  purchase  of  school buses and equipment and fuel used in the
  operation of a school bus

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  1119  of  the tax law is amended by adding a new
subdivision (f) to read as follows:
  (F) SUBJECT TO THE CONDITIONS AND LIMITATIONS PROVIDED IN THIS  SUBDI-
VISION,  A  REFUND  OR  CREDIT SHALL BE ALLOWED FOR TAX PAID PURSUANT TO
SUBDIVISION (A) OF SECTION  ELEVEN  HUNDRED  FIVE,  PARAGRAPH  THREE  OF
SUBDIVISION  (C)  OF  SECTION  ELEVEN  HUNDRED  FIVE,  OR SECTION ELEVEN
HUNDRED TEN OF THIS ARTICLE AND ANY TAX IMPOSED PURSUANT TO THE AUTHORI-
TY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, ON THE SALE TO OR PURCHASE BY
A SCHOOL BUS OPERATOR OF (I) A SCHOOL BUS, AS  DEFINED  IN  SECTION  ONE
HUNDRED  FORTY-TWO  OF  THE  VEHICLE  AND  TRAFFIC LAW, AT LEAST SEVENTY
PERCENT OF THE USE OF WHICH IS FOR THE TRANSPORTATION, BY SUCH OPERATOR,
OF SCHOOL STUDENTS TO OR FROM SCHOOL OR SCHOOL RELATED EVENTS,  PURSUANT
TO  A  CONTRACT  MADE  UNDER  THE  PROVISIONS OF THE EDUCATION LAW, (II)
PARTS, EQUIPMENT AND LUBRICANTS WHEN SUCH PARTS,  EQUIPMENT  AND  LUBRI-
CANTS ARE INSTALLED IN OR ON SUCH A SCHOOL BUS, AT LEAST SEVENTY PERCENT
OF THE USE OF WHICH IS FOR SUCH TRANSPORTATION, BY SUCH OPERATOR, PURSU-
ANT TO SUCH CONTRACT, (III) THE SERVICES DESCRIBED IN PARAGRAPH THREE OF
SUBDIVISION  (C)  OF  SECTION  ELEVEN  HUNDRED FIVE OF THIS ARTICLE WHEN
RENDERED WITH RESPECT TO SUCH A SCHOOL BUS SO USED OR  WITH  RESPECT  TO
PARTS,  EQUIPMENT AND LUBRICANTS INSTALLED IN OR ON SUCH A SCHOOL BUS SO
USED, AND (IV) MOTOR FUEL OR DIESEL MOTOR FUEL USED EXCLUSIVELY BY  SUCH
OPERATOR  IN  SUCH A SCHOOL BUS FOR SUCH TRANSPORTATION PURSUANT TO SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03493-01-1

S. 1647                             2

CONTRACT.  NO REFUND OR CREDIT SHALL BE ALLOWED UNDER  THIS  SUBDIVISION
UNLESS  ALL  OF THE REQUIREMENTS FOR SUCH REFUND OR CREDIT HAVE BEEN MET
FOR AT LEAST A TWELVE MONTH  PERIOD  AFTER  THE  SCHOOL  BUS  OPERATOR'S
PURCHASE  OF  SUCH  SCHOOL  BUS; HOWEVER, SUCH REFUND OR CREDIT SHALL BE
ALLOWED FOR A SCHOOL BUS THAT IS PAINTED "NATIONAL  SCHOOL  BUS  CHROME"
PURSUANT TO SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED SEVENTY-FIVE
OF THE VEHICLE AND TRAFFIC LAW AND LABELED AS A "SCHOOL BUS" PURSUANT TO
SUBPARAGRAPH  ONE OF PARAGRAPH (B) OF SUBDIVISION TWENTY OF SUCH SECTION
THREE HUNDRED SEVENTY-FIVE IF ALL OF THE REQUIREMENTS FOR SUCH REFUND OR
CREDIT HAVE BEEN MET IN  THE  PREVIOUS  QUARTERLY  REPORTING  PERIOD  AS
DESCRIBED  IN  SUBDIVISION  (B)  OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
THIS ARTICLE.  AN APPLICATION FOR A REFUND OR CREDIT  PURSUANT  TO  THIS
SUBDIVISION MUST BE FILED WITH THE COMMISSIONER WITHIN THE TIME PROVIDED
BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS ARTICLE
AND  NO  MORE  FREQUENTLY THAN QUARTERLY.   SUCH APPLICATION SHALL BE IN
SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE. WHERE  AN  APPLICATION  FOR
CREDIT  HAS  BEEN FILED, THE SCHOOL BUS OPERATOR MAY TAKE SUCH CREDIT ON
THE RETURN WHICH IS DUE COINCIDENT WITH OR IMMEDIATELY SUBSEQUENT TO THE
TIME THE SCHOOL BUS OPERATOR FILES SUCH APPLICATION FOR CREDIT.   HOWEV-
ER, THE TAKING OF THE CREDIT ON THE RETURN SHALL BE DEEMED TO BE PART OF
THE  APPLICATION  FOR  CREDIT  AND SHALL BE SUBJECT TO THE PROVISIONS IN
RESPECT TO APPLICATIONS FOR CREDIT IN SUCH SECTION ELEVEN HUNDRED  THIR-
TY-NINE  AS  PROVIDED IN SUBDIVISION (E) OF SUCH SECTION.  THE ALLOWANCE
OF THE CREDIT OR REFUND SHALL ALSO BE SUBJECT TO THE SCHOOL BUS OPERATOR
MAINTAINING  RECORDS  SATISFACTORY  TO  THE  COMMISSIONER  DEMONSTRATING
COMPLIANCE  WITH ALL THE REQUIREMENTS OF THIS SUBDIVISION.  THE PERCENT-
AGE OF SUCH SCHOOL BUS USE MAY BE COMPUTED EITHER ON THE BASIS OF  MILE-
AGE OR HOURS OF USE, AT THE DISCRETION OF THE PURCHASER OR USER. FOR THE
PURPOSES OF THIS SUBDIVISION, THE TERM "SCHOOL" SHALL MEAN A PRE-KINDER-
GARTEN OR KINDERGARTEN PROGRAM, A PRESCHOOL, NURSERY SCHOOL OR ELEMENTA-
RY,  INTERMEDIATE  OR  SECONDARY SCHOOL.   THE REFUND OR CREDIT SHALL BE
FIFTY PERCENT FOR THE PERIOD COMMENCING SEPTEMBER  FIRST,  TWO  THOUSAND
TWELVE  TO  AUGUST  THIRTY-FIRST,  TWO  THOUSAND THIRTEEN. THE REFUND OR
CREDIT SHALL BE ONE HUNDRED  PERCENT  COMMENCING  SEPTEMBER  FIRST,  TWO
THOUSAND THIRTEEN.
  S  2.  This  act  shall  take effect on the first day of the sales tax
quarterly period, as described in subdivision (b) of section 1136 of the
tax law, next commencing September 1, 2012 and shall apply in accordance
with the applicable transitional provisions in sections 1106 and 1217 of
the tax law; provided, further, that the commissioner  of  taxation  and
finance  shall  be  authorized on and after the date this act shall have
become a law to adopt and amend any rules or regulations and  issue  any
procedure,  forms or instructions necessary to implement this act on its
effective date.

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