S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    198
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by M. of A. GANTT -- read once and referred to the Committee
   on Ways and Means
 
 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
 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.
                                                            LBD01079-01-7

 A. 198                              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
 EIGHTEEN  TO  AUGUST  THIRTY-FIRST, TWO THOUSAND NINETEEN. THE REFUND OR
 CREDIT SHALL BE ONE HUNDRED  PERCENT  COMMENCING  SEPTEMBER  FIRST,  TWO
 THOUSAND NINETEEN.
   §  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, 2018 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.