Repeals article 21 of the tax law relating to imposition of a highway use tax for the privilege of operating any vehicular unit upon the public highways

BILL NUMBER:A298

Title of bill

An act to repeal article 21 of the tax law relating to the highway use tax

Purpose

This bill repeals the highway use tax.

Summary of provisions

Repeals article 21 of the tax law relating to imposition of a highway use tax for the privilege of operating any vehicular unit upon the public highways of the state.

Justification

The highway use tax, also known as the ton-mile tax, reduces the ability of New York trucking companies to compete with out- of-state companies because it places a higher cost burden on the New York-based trucking industry as compared with truckers from other states that travel through New York. Other states have eliminated the highway use tax and have instead opted for simpler tax collection methods, such as registration fees and fuel taxes, over the ton-mile tax. Calculating the ton-mile tax payment requires substantial paperwork and is easily evaded by out-of-state companies. This tax causes New York to lose its competitive edge in attracting trucking businesses. The tax also increases the cost of shipping and the cost of doing business in New York State. The elimination of the tax would benefit truckers, manufac- turers, shippers and consumers.

Legislative history

1999-2000, A. 10374, Referred to Ways and Means; 2001-2002, A.l448, Held for consideration in Ways and Means; 2003-2004, A 1842, Referred to Ways and Means; 2005-2006, A.9453, Referred to Ways and Means, 2007-2008, A.421, Held for consideration Ways and Means;

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.