senate Bill S1999

Amended

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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Jan / 2014
    • PRINT NUMBER 1999A

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:
A1019
Versions:
S1999
S1999A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1119, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1647, A799
2009-2010: S1921, A3649
2007-2008: A1224B

Sponsor Memo

BILL NUMBER:S1999

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 feder-
al 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 trans-
portation 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 compet-
itive and help them extend existing contracts.

LEGISLATIVE HISTORY: 2011-12: S.1647: Referred to Investigations and
Operations 2009-10: S.1921 - Referred to Investigations and Operations
2008: S.2441-A Passed Senate and A.1224-15 (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: Needs to be determined. Effective Date: This act
shall take effect on the first day of the quarterly sales tax period
next commencing September 1, 2014.

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

                                  1999

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 (g) to read as follows:
  (G) 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03435-01-3

S. 1999                             2

OPERATOR  IN  SUCH A SCHOOL BUS FOR SUCH TRANSPORTATION PURSUANT TO SUCH
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
FOURTEEN TO AUGUST THIRTY-FIRST, TWO THOUSAND  FIFTEEN.  THE  REFUND  OR
CREDIT  SHALL  BE  ONE  HUNDRED  PERCENT COMMENCING SEPTEMBER FIRST, TWO
THOUSAND FIFTEEN.
  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, 2014 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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