Senate Bill S5422

                                 
BILL NUMBER: S5422

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting from sales and use
tax zero-emission school buses

 
PURPOSE:

This legislation exempts zero-emission school buses and the parts and
equipment purchased and used in their operation from sales and compen-
sating use taxes.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new subdivision (mm) to Section 1115 of the tax law to
exempt zero-emission school buses and parts and equipment purchased and
used in their operation.

Section 2: Sets Effective Date

              

 
JUSTIFICATION:

New York's enacted State Budget for Fiscal Year 2023 requires that all
new school bus purchases made after July 1, 2027, be zero-emissions and
all school buses on the road be zero-emissions by 2035. Private trans-
portation companies that provide contract transportation are also
subject to the mandate for any vehicle that transports students.

Despite the significant environmental advantages of zero-emission school
buses, the upfront purchase price has emerged as the greatest obstacle
to their widespread use. New zero-emission school buses can cost two to
three times more than a traditional new diesel school bus. Many private
student transportation companies operating in the state cannot afford
the upfront cost, even with the grants and other subsidies offered.

Eliminating the sales tax on new zero-emission school buses would
provide much-needed financial relief to private student transportation
contractors that must purchase and replace their fleet with zero-emis-
sion school buses by 2035. Eliminating sales tax may also accelerate the
conversion of school buses to zero emission.

 
LEGISLATIVE HISTORY:

Senate

2023: S5524, Referred to Budget and Revenue

2024: S5524, Referred to Budget and Revenue

Assembly

2023: A8010, Referred to Ways and Means

2024: AS010, Referred to Ways and Means

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first day of a quarterly sales tax
period, as set forth in subdivision (b) of section 1136 of the tax law,
next succeeding the thirtieth day after it shall have become a law.