LBD14194-02-4
S. 9375 2
4. "MILES PER GALLON GASOLINE EQUIVALENT" SHALL REFER TO THE MEASURE
OF DISTANCE THAT A COVERED VEHICLE RUNNING ON NON-LIQUID FUELS CAN TRAV-
EL PER UNIT OF ENERGY AS RATED BY THE ENVIRONMENTAL PROTECTION AGENCY.
5. "MOTOR FUEL" SHALL MEAN THE SAME AS DEFINED IN SUBDIVISION TWO OF
SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
6. "ON-BOARD UNIT" SHALL MEAN AN ELECTRONIC DEVICE INSTALLED IN A
COVERED VEHICLE THAT RECORDS TRAFFIC AND DRIVING DATA AND CAN CONNECT TO
ROADSIDE AND SATELLITE NAVIGATION SYSTEMS.
7. "PUBLIC HIGHWAY" SHALL MEAN ANY PUBLIC HIGHWAY, STREET, AVENUE,
ROAD, PUBLIC PLACE, PUBLIC DRIVEWAY, OR ANY OTHER PUBLIC WAY IN THIS
STATE.
§ 531. CREATION OF HIGHWAY USE TAX FOR COVERED VEHICLES. 1. THERE IS
HEREBY CREATED A HIGHWAY USE TAX FOR COVERED VEHICLES FOR THE PRIVILEGE
OF OPERATING A COVERED VEHICLE UPON THE PUBLIC HIGHWAYS OF THIS STATE
AND FOR THE PURPOSE OF RECOMPENSING THE STATE FOR THE PUBLIC EXPENDI-
TURES INCURRED BY REASON OF THE OPERATIONS OF SUCH COVERED VEHICLE ON
SUCH PUBLIC HIGHWAYS. THE TAX SHALL BE LEVIED UPON THE OWNER OF A
COVERED VEHICLE FOR MILES DRIVEN ON PUBLIC HIGHWAYS.
2. THE AMOUNT OF HIGHWAY USE TAX OWED SHALL BE EQUAL TO THE NUMBER OF
VEHICLE MILES TRAVELED, AS REPORTED BY THE ON-BOARD UNIT, TIMES A TAX
RATE OF 1.9 CENTS PER MILE.
§ 532. COLLECTION OF TAX. THE HIGHWAY USE TAX FOR COVERED VEHICLES
SHALL BE COLLECTED AS FOLLOWS:
1. AN ON-BOARD UNIT SHALL BE INSTALLED IN EVERY COVERED VEHICLE AT THE
POINT OF SUCH VEHICLE'S REGISTRATION, REREGISTRATION, OR RENEWAL PURSU-
ANT TO SECTION FOUR HUNDRED ONE OF THE VEHICLE AND TRAFFIC LAW. THE
ON-BOARD UNIT SHALL TRANSMIT TO THE DEPARTMENT THE NUMBER OF VEHICLE
MILES TRAVELED ON PUBLIC HIGHWAYS ON A REGULAR BASIS FOR THE PURPOSES OF
CALCULATING THE AMOUNT OF HIGHWAY USE TAX OWED BY THE OWNER OF THE
COVERED VEHICLE.
2. OWNERS OF A COVERED VEHICLE UNDER THIS ARTICLE SHALL BE REQUIRED TO
FILE A RETURN FOR THE HIGHWAY USE TAX NO LESS THAN FOUR TIMES THROUGHOUT
THE YEAR, ON OR BEFORE THE LAST DAY OF THE CALENDAR MONTH FOLLOWING EACH
OF THE CALENDAR QUARTERS: JANUARY THROUGH MARCH, APRIL THROUGH JUNE,
JULY THROUGH SEPTEMBER, AND OCTOBER THROUGH DECEMBER, PROVIDED, HOWEVER,
THAT OWNERS MAY FILE SUCH RETURNS ON A MORE FREQUENT BASIS THROUGH THE
CREATION OF A PREPAID ACCOUNT OR ANY OTHER METHOD PRESCRIBED BY THE
COMMISSIONER.
§ 533. DATA PRIVACY. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO
ENSURE THE PRIVACY AND INTEGRITY OF ALL DATA COLLECTED FROM COVERED
VEHICLES AND VEHICLE OWNERS UNDER THIS ARTICLE, PROVIDED THAT:
1. THE ON-BOARD UNITS, AS DEFINED IN THIS ARTICLE, SHALL BE PROGRAMMED
TO TRACK MILEAGE ON PUBLIC HIGHWAYS IN THIS STATE USING A GPS SYSTEM OR
OTHER COMPARABLE TECHNOLOGY, BUT SHALL NOT REPORT EXACT LOCATION COORDI-
NATES, TIMES OF TRAVEL, TRIP DATA, OR ANY OTHER GEOGRAPHIC INFORMATION
ABOUT THE USE OF A COVERED VEHICLE TO THE DEPARTMENT. SUCH ON-BOARD
UNITS SHALL REPORT MILEAGE AS AN AGGREGATE NUMBER FOR A GIVEN TIME PERI-
OD AS PRESCRIBED BY THE COMMISSIONER.
2. THE DEPARTMENT SHALL BE SUBJECT TO THE REQUIREMENTS OF ARTICLE
SIX-A OF THE PUBLIC OFFICERS LAW WHEN IMPLEMENTING ANY AND ALL
PROVISIONS OF THIS ARTICLE.
§ 534. REIMBURSEMENTS FOR GAS TAX. THE COMMISSIONER SHALL CREATE A
SYSTEM BY WHICH THE OWNER OF A COVERED VEHICLE MAY, ELECTRONICALLY OR
OTHERWISE, SUBMIT A RECORD OF PAYMENT FOR MOTOR FUEL IN THIS STATE. SUCH
COMMISSIONER SHALL THEN DETERMINE THE PORTION OF SUCH PAYMENT ATTRIBUT-
ABLE TO THE FUEL TAXES DESCRIBED IN THIS CHAPTER WHICH ARE LEVIED UPON
S. 9375 3
THE PURCHASE OF SUCH MOTOR FUEL AND SHALL APPLY SUCH PORTION AS A CREDIT
AGAINST THE AMOUNT OF HIGHWAY USE TAX OWED, PROVIDED, HOWEVER, THAT IF
THE AMOUNT OF THE CREDIT SHALL EXCEED THE AMOUNT OF TAX OWED, NO REFUND
SHALL BE ISSUED THEREOF.
§ 535. PENALTIES, INTEREST, AND TAX FRAUD ACTS. 1. ANY PERSON FAILING
TO FILE A RETURN OR TO PAY ANY TAX WITHIN THE TIME REQUIRED BY OR PURSU-
ANT TO THIS ARTICLE SHALL BE SUBJECT TO THE PENALTIES PRESCRIBED IN
SECTION FIVE HUNDRED TWELVE OF THIS CHAPTER, EXCEPTING, HOWEVER, SUCH
FAILURES WHICH ARE DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT AS
DETERMINED BY THE COMMISSIONER AND DESCRIBED IN SUCH SECTION.
2. ANY PERSON COMMITTING A TAX FRAUD ACT SHALL BE SUBJECT TO THE
PENALTIES PRESCRIBED IN SECTIONS EIGHTEEN HUNDRED ONE, EIGHTEEN HUNDRED
TWO, EIGHTEEN HUNDRED THREE, EIGHTEEN HUNDRED FOUR, EIGHTEEN HUNDRED
FIVE, EIGHTEEN HUNDRED SIX AND EIGHTEEN HUNDRED SEVEN OF THIS CHAPTER.
"TAX FRAUD ACT" AS USED IN THIS SUBDIVISION SHALL INCLUDE ANY INTEN-
TIONAL FRUSTRATION OF THE PROVISIONS OF THIS ARTICLE INCLUDING, BUT NOT
LIMITED TO, TAMPERING WITH, REPLACING, OR DISCONNECTING AN ON-BOARD UNIT
WITH THE INTENT TO DEFRAUD.
§ 536. DISPOSITION OF REVENUES. ALL TAXES, INTEREST, PENALTIES, AND
FEES COLLECTED OR RECEIVED PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED
DAILY IN ONE ACCOUNT WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES, OR
TRUST COMPANIES AS MAY BE DESIGNATED BY THE COMPTROLLER, AND TO THE
CREDIT OF THE COMPTROLLER ON ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE
TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE
FINANCE LAW. SUCH AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH
DEPOSITORIES AND SUCH DEPOSITS SHALL BE KEPT SEPARATE AND APART FROM ALL
OTHER MONEYS IN THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL
REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES.
§ 537. ANNUAL REPORT. NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE
OF THIS SECTION, AND EACH YEAR THEREAFTER, THE COMMISSIONER SHALL DELIV-
ER AN ANNUAL REPORT TO THE LEGISLATURE CONTAINING:
1. RECOMMENDED CHANGES, IF ANY, TO THE TAX RATE ESTABLISHED IN SUBDI-
VISION TWO OF SECTION FIVE HUNDRED THIRTY-ONE OF THIS ARTICLE;
2. RECOMMENDED CHANGES, IF ANY, TO THE MILES PER GALLON OR MILES PER
GALLON EQUIVALENT THRESHOLD FOR COVERED VEHICLES TO WHICH THIS ARTICLE
APPLIES;
3. THE TOTAL NUMBER OF COVERED VEHICLES IN THIS STATE WHICH ARE
SUBJECT TO THE PROVISIONS OF THIS ARTICLE;
4. THE TOTAL AMOUNT OF MILEAGE RECORDED AND REPORTED FOR PURPOSES OF
THIS ARTICLE ON PUBLIC HIGHWAYS IN THIS STATE; AND
5. THE TOTAL AMOUNT OF ANNUAL REVENUES COLLECTED UNDER THIS ARTICLE.
§ 2. Subparagraph (a) of paragraph 1 of subdivision (c) of section 301
of the vehicle and traffic law, as amended by chapter 444 of the laws of
2016, is amended to read as follows:
(a) A safety inspection shall be made with respect to the brakes;
steering mechanism; wheel alignment; lights, including but not limited
to the lights which are designed and placed on a vehicle for the purpose
of illuminating the vehicle's license plates; odometer; tire pressure;
seat safety belts; shoulder harness safety belts; any window which is
composed of, covered by or treated with any material which has a light
transmittance of less than seventy percent pursuant to section three
hundred seventy-five of this title, AN ON-BOARD UNIT FOR COVERED VEHI-
CLES, AS SUCH TERMS ARE DEFINED IN SECTION FIVE HUNDRED THIRTY OF THE
TAX LAW, and such other mechanisms and equipment as shall be determined
by the commissioner to be necessary for proper and safe operations. Such
inspection shall also be made with respect to vehicle identification
S. 9375 4
number. Upon inspection, the mileage appearing on the odometer shall be
recorded upon the inspection sticker. FOR COVERED VEHICLES, AS DEFINED
IN SECTION FIVE HUNDRED THIRTY OF THE TAX LAW, BOTH THE MILEAGE APPEAR-
ING ON THE ODOMETER AND THE MILEAGE RECORDED BY AN ON-BOARD UNIT SHALL
BE RECORDED AND TRANSMITTED TO THE COMMISSIONER, IN A MANNER AND FORM
PRESCRIBED BY THE COMMISSIONER.
§ 3. Section 375 of the vehicle and traffic law is amended by adding a
new subdivision 55 to read as follows:
55. EVERY COVERED MOTOR VEHICLE SUBJECT TO THE PROVISIONS OF ARTICLE
TWENTY-ONE-B OF THE TAX LAW REGISTERED IN THIS STATE SHALL BE EQUIPPED
WITH AN ON-BOARD UNIT, AS DEFINED IN SECTION FIVE HUNDRED THIRTY OF THE
TAX LAW. SUCH ON-BOARD UNIT SHALL BE PROGRAMMED TO TRACK MILEAGE ON
PUBLIC HIGHWAYS IN THIS STATE USING A GPS SYSTEM OR OTHER COMPARABLE
TECHNOLOGY, BUT SHALL NOT REPORT EXACT LOCATION COORDINATES, TIMES OF
TRAVEL, TRIP DATA, OR ANY OTHER GEOGRAPHIC INFORMATION ABOUT THE USE OF
A COVERED VEHICLE TO THE TAX DEPARTMENT.
§ 4. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 4 of chapter 368 of the laws of 2019,
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, FIVE HUNDRED THIRTY-SIX and eleven hundred sixty-seven of the
tax law, section four hundred one and article twelve-d 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 and the commissioner of
motor vehicles pursuant to section fifty-two, section three hundred
twenty-six, section eighty-eight of the highway law, subdivision fifteen
of section three hundred eighty-five of the vehicle and traffic law,
section two of part U1 of chapter sixty-two of the laws of two thousand
three, 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 twen-
ty-seven or subdivision thirty-five of section ten of the highway law,
and section one hundred forty-five of the transportation law, (iii) any
moneys collected by the department of transportation for services
provided pursuant to agreements 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.
§ 5. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 5 of chapter 368 of the laws of 2019,
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, FIVE HUNDRED
THIRTY-SIX and eleven hundred sixty-seven of the tax law, section four
hundred one and article twelve-d 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 commis-
S. 9375 5
sioner of transportation and the commissioner of motor vehicles pursuant
to section fifty-two, section three hundred twenty-six, section eighty-
eight of the highway 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 better-
ments performed pursuant to subdivision twenty-seven or subdivision
thirty-five of section ten of the highway law, and section one hundred
forty-five of the transportation 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.
§ 6. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 8 of part UU of chapter 59 of the
laws of 2018, is REPEALED.
§ 7. This act shall take effect on the ninetieth day after it shall
have become a law and shall apply to all covered vehicles registered or
reregistered on or after such effective date; provided, however, that
the amendments to paragraph (a) of subdivision 3 of section 89-b of the
state finance law, made by section four of this act, shall be subject to
the expiration and reversion of such paragraph pursuant to section 6 of
chapter 368 of the laws of 2019, as amended, when upon such date the
provisions of section five of this act shall take effect. Effective
immediately, the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized to be made and completed on or before such effective
date.