senate Bill S1350

Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail

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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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail.

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Bill Details

See Assembly Version of this Bill:
A8876
Versions:
S1350
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1148, Tax L; amd §89-b, St Fin L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2467B, S2467B
2009-2010: S7213, S7213

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S1350

TITLE OF BILL:
An act
to amend the tax law and the state finance law, in relation to providing
for the deposit into the dedicated highway and bridge trust fund of a
portion of the sales tax revenue from the sale of motor fuel

PURPOSE:
The purpose of this bill is to dedicate a portion of funds brought in
through sales tax revenue on gasoline and place them in the Dedicated
Highway and Bridge Trust Fund.

SUMMARY OF PROVISIONS:

Section 1. Amends Section 1148 of the Tax Law, to read that one cent
of the taxes collected or received by the Commissioner under Section
1148 for the retail sale of each gallon of motor fuel shall be
deposited in the Dedicated Highway and Bridge Trust Fund.

Section 2. Section 5. Allows for an increase in the amount of
dedication to the Highway and Bridge Trust Fund at a rate of
$0.02/year as set by the effective dates in Section 7.

Section 6 and 7. This section allows for sales tax revenue from
gasoline to be directed to the Highway and Bridge Trust Fund.

Section 8. Sets the effective date for the act as April 1, 2014,
provided that § 2 of the act takes effect on April 1, 2015 § 3 of the
act takes effect on April 1, 2016, § 4 of the act takes effect on
April 1, 2017, § 5 of the act takes effect on April 1, 2018.

JUSTIFICATION:
In 2007, the New York State Department of Transportation released a 20
year transportation capital needs analysis. The report showed a
transportation system in decline. In October 2009, the New York State
Department of Transportation proposed a $25.8 billion five year
capital plan that would merely hold conditions steady. Based on
available money, research estimates a funding gap of $8 billion over
the 5 years.

There is currently a sales tax on motor fuels that generates $947
million annually, none of which is dedicated to transportation. The
dedication of $0.01/gallon, increasing $0.01/year for 5 years, would
create $65.8 million for highway and bridge use in 2012 and would
dedicate a total of $987 million for highway and bridge use by the
end of 2016 (based on a usage of 6,579.5 million gallons/year). Every
year thereafter, based on the same usage, there would be an expected
dedication of $329 million/year.
This bill does not increase sales tax on gasoline.

LEGISLATIVE HISTORY:

2010: Referred to Investigation and Government Operations
2012: Passed Senate

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
This act shall take effect on April 1, 2014, with provisions.

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

                                  1350

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  LIBOUS -- 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 and the state finance law,  in  relation  to
  providing  for the deposit into the dedicated highway and bridge trust
  fund of a portion of the sales tax revenue from the sale of motor fuel

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

  Section 1. Section 1148 of the tax law, as amended by chapter 3 of the
laws of 2004, is amended to read as follows:
  S 1148. Deposit and disposition of revenue. [All] (A) EXCEPT AS OTHER-
WISE  PROVIDED  IN  SUBDIVISION (B) OF THIS SECTION, ALL taxes, interest
and penalties collected or received by the commissioner under this arti-
cle shall be deposited and disposed of pursuant  to  the  provisions  of
section one hundred seventy-one-a of this chapter; provided however, the
comptroller  shall  on  or before the twelfth day of each month, pay all
such taxes, interest and penalties  collected  under  this  article  and
remaining  to  the comptroller's credit in such banks, banking houses or
trust companies at the close of business on the last day of the  preced-
ing month, into the general fund of the state treasury, except as other-
wise  provided  in  sections  ninety-two-d and ninety-two-r of the state
finance law and sections eleven hundred two,  eleven  hundred  four  and
eleven hundred nine of this article.
  (B)  ONE  CENT  OF THE TAXES COLLECTED OR RECEIVED BY THE COMMISSIONER
UNDER THIS ARTICLE FOR THE RETAIL SALE OF  EACH  GALLON  OF  MOTOR  FUEL
SHALL BE DEPOSITED IN THE SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT
OF  THE  DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED BY SECTION
EIGHTY-NINE-B OF THE STATE FINANCE LAW.
  S 2. Subdivision (b) of section 1148 of  the  tax  law,  as  added  by
section one of this act, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05262-01-3

S. 1350                             2

  (b)  [One  cent]  TWO  CENTS of the taxes collected or received by the
commissioner under this article for the retail sale of  each  gallon  of
motor  fuel  shall  be  deposited  in the special obligation reserve and
payment account of the dedicated highway and bridge trust  fund,  estab-
lished by section eighty-nine-b of the state finance law.
  S  3.  Subdivision  (b)  of section 1148 of the tax law, as amended by
section two of this act, is amended to read as follows:
  (b) [Two] THREE cents of  the  taxes  collected  or  received  by  the
commissioner  under  this  article for the retail sale of each gallon of
motor fuel shall be deposited in  the  special  obligation  reserve  and
payment  account  of the dedicated highway and bridge trust fund, estab-
lished by section eighty-nine-b of the state finance law.
  S 4. Subdivision (b) of section 1148 of the tax  law,  as  amended  by
section three of this act, is amended to read as follows:
  (b)  [Three]  FOUR  cents  of  the  taxes collected or received by the
commissioner under this article for the retail sale of  each  gallon  of
motor  fuel  shall  be  deposited  in the special obligation reserve and
payment account of the dedicated highway and bridge trust  fund,  estab-
lished by section eighty-nine-b of the state finance law.
  S  5.  Subdivision  (b)  of section 1148 of the tax law, as amended by
section four of this act, is amended to read as follows:
  (b) [Four] FIVE cents of  the  taxes  collected  or  received  by  the
commissioner  under  this  article for the retail sale of each gallon of
motor fuel shall be deposited in  the  special  obligation  reserve  and
payment  account  of the dedicated highway and bridge trust fund, estab-
lished by section eighty-nine-b of the state finance law.
  S 6. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
finance law, as amended by section 2 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a)  The  special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway  and
bridge  trust  fund  pursuant  to the provisions of sections two hundred
five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
fifteen,  ELEVEN  HUNDRED  FORTY-EIGHT and eleven hundred sixty-seven of
the tax law, section four hundred one of the vehicle  and  traffic  law,
and  section  thirty-one  of  chapter  fifty-six of the laws of nineteen
hundred ninety-three, (ii) all fees, fines or penalties collected by the
commissioner of transportation pursuant to  section  fifty-two,  section
three  hundred  twenty-six,  and  subdivisions five, eight and twelve of
section eighty-eight of the highway law, subdivision fifteen of  section
three  hundred eighty-five of the vehicle and traffic law, section [two]
NINE of [the] PART U1 OF chapter SIXTY-TWO of the laws of  two  thousand
three  that  amended  this  paragraph,  subdivision (d) of section three
hundred four-a, paragraph one of subdivision (a) and subdivision (d)  of
section  three  hundred  five, subdivision six-a of section four hundred
fifteen and subdivision (g) of section twenty-one hundred twenty-five of
the vehicle and traffic law, section fifteen of this chapter,  excepting
moneys  deposited  with  the  state  on account of betterments performed
pursuant to  subdivision  twenty-seven  or  subdivision  thirty-five  of
section  ten  of  the  highway  law,  (iii)  any moneys collected by the
department of transportation for services provided  pursuant  to  agree-
ments  entered  into  in  accordance  with  section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected  therefor  or
credited or transferred thereto from any other fund, account or source.

S. 1350                             3

  S  7.    Paragraph  (a)  of subdivision 3 of section 89-b of the state
finance law, as amended by section 3 of part B of chapter 58 of the laws
of 2012, is amended to read as follows:
  (a)  The  special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway  and
bridge  trust  fund  pursuant  to the provisions of sections two hundred
eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
FORTY-EIGHT and eleven hundred sixty-seven of the tax law, section  four
hundred  one  of  the vehicle and traffic law, and section thirty-one of
chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
fees, fines or penalties collected by the commissioner of transportation
pursuant to section fifty-two, section  three  hundred  twenty-six,  and
subdivisions five, eight and twelve of section eighty-eight of the high-
way law, subdivision fifteen of section three hundred eighty-five of the
vehicle  and  traffic  law,  section  fifteen of this chapter, excepting
moneys deposited with the state  on  account  of  betterments  performed
pursuant  to  subdivision  twenty-seven  or  subdivision  thirty-five of
section ten of the highway  law,  (iii)  any  moneys  collected  by  the
department  of  transportation  for services provided pursuant to agree-
ments entered into in  accordance  with  section  ninety-nine-r  of  the
general  municipal  law, and (iv) any other moneys collected therefor or
credited or transferred thereto from any other fund, account or source.
  S 8. This act shall take effect April 1, 2014, provided, that:
  (a) section two of this act shall take effect April 1, 2015;
  (b) section three of this act shall take effect April 1, 2016;
  (c) section four of this act shall take effect April 1, 2017;
  (d) section five of this act shall take effect April 1, 2018; and
  (e) the amendments to paragraph (a) of subdivision 3 of  section  89-b
of  the  state  finance  law, made by section six of this act, shall not
affect the expiration and reversion of such paragraph and  shall  expire
therewith,  when  upon  such  date  section seven of this act shall take
effect.

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