Senate Bill S3200

                                 BILL NUMBER:  S3200

 TITLE OF BILL :
An act to amend the tax law, in relation to exemption of new and used
ambulance vehicles and equipment from state sales and compensating use
taxes


 PURPOSE :
To remove the sales tax burden on the purchase of new and used
ambulance vehicles when purchased by commercial ambulance companies
certified to provide emergency care and medical transportation under
Article 30 of the Public Health law.

 SUMMARY OF PROVISIONS :
Section one of the bill amends section 1115 of the Tax law to exempt
from the imposition of State sales tax the purchase of new and used
ambulance vehicles purchased by commercial ambulance companies
certified to provide emergency care and medical transportation
pursuant to Article 30 of the Public Health Law. Similarly,
subparagraph (3-b) would provide for a similar exemption for the
purchase of medical equipment and supplies by commercial ambulance
companies certified under Article 30 of the Public Health Law.

 EXISTING LAW :
Section 1115 of the Tax Law provides for exemptions from sales and use
              

taxes. Such exemptions are from the tax on retail sales imposed under
Subdivision (a) of Section 1105 of the Tax Law and the compensating
use tax imposed under Section 1110 of the Tax Law.  Exemptions include
the receipts for drugs and medicine, used mobile homes, commercial
fishing vessels, racehorses, and omnibuses used to transport persons
for hire.

 JUSTIFICATION :
The commercial ambulance industry provides approximately one-half of
all of the emergency medical transports in New York State, delivering
high quality medical care and transportation to patients. All
ambulance service providers are required to treat and transport
patients, regardless of their ability to pay, and commercial services
have built into their corporate cultures the ethic of always
delivering the highest level of care, notwithstanding reimbursement.
The reality is however, that ambulance services often go
un-reimbursed, and ambulance services have no access to bad debt and
charity pools to help offset the cost of this care. The tax relief
provided for in this bill is being sought in order to maintain and
improve the high quality of service delivery and patient care
characteristic of commercial ambulance services across the State.

Similar tax exemptions are currently in law. For example, receipts
from the sale of omnibuses used to transport persons for hire enjoy a
sales tax exemption. Extending a similar exemption to ambulance
services certified under Article 30 of the Public Health law will
provide critical relief and help ensure that these ambulance services
can continue to compete and deliver high-quality health care.

 LEGISLATIVE HISTORY :
2001-02: A.7425/S.3407 (Senate Finance Committee)
2002-03: A.5069/S.3389 (Senate Finance Committee)
2005-06:  A.1139-A/S.3024-A (Senate Investigations Committee)
2007-08:  A.7170/S.3021 (Passed Senate)

 FISCAL IMPLICATIONS :
Based on estimates by the commercial ambulance industry, this proposal
would cost New York State approximately $1.3 million in lost State
sales tax revenues per year.

 EFFECTIVE DATE :
This act shall take effect the first of September next succeeding the
date on which it shall have become law.