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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
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Reduces the tax on aviation fuel businesses under article 13-A of the tax law; repealer
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
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Sponsor's memo
Title of bill
An act to amend the tax law, in relation to reducing the tax on aviation fuel businesses under article 13-A thereof; and to repeal section 301-e of the tax law relating to aviation fuel taxes
Purpose
To reduce the tax on aviation fuel under Article 13-A by repealing the kero-jet fuel tax.
Summary of provisions
§ 1- Repeals §301-e of the Tax Law. This section eliminates the kero-jet fuel tax. § 2-§ 6- Amend various sections of the Tax Law to remove references to § 301-e of the Tax Law which is being repealed by § 1 of the bill. § 7- Effective date.
Justification
The financial distress of the airline industry is a matter of public record, particularly as it affects major carriers serving New York State. Four major airlines are in bankruptcy and other major airlines are in the midst of financial crises. Fuel costs exacerbate the industry's problems and threaten retention of service levels, particularly in marginal markets. Last year, the current aggregate tax rate on kero-jet fuel was $0.06 per gallon (N.Y.S. Dept. Taxation and Finance, Publication 908). The rate has progressively increased since January 1, 2000, as the cost of petroleum rose over $120 a barrel in 2008. By most indicators, the upstate New York economy still lags the economic growth rates of downstate New York and the nation. A region's ability to attract investment and jobs is directly related to the quality and cost of passenger air service. In addition, efforts to bring conventions, conferences, other events and tourists to a region are impacted by the cost of air travel. Air fares paid by consumers flying to and from many of our upstate New York airports are still among the highest in the nation. The taxation of kero-jet fuel adds to the cost of every flight taking off from a New York State airport. This added cost of doing business is a disincentive for airlines to provide affordable and quality service, particularly for the smaller, low-cost airlines. Their overall revenues are far less than those of their larger counterparts and, consequently, they are less able to absorb such costs. Elimination of the kero-jet fuel tax would reduce a major operating expense for airlines, translating into greater air transportation access for businesses and residents throughout the state.
Legislative history
2008: S.2177 - Passed Senate/A.4897 - Referred to Ways & Means. 2007: S.2177 - Passed Senate/A.4897 - Referred to Ways & Means.
Fiscal implications
$6 million to the State.
Effective date
This act shall take effect April 1, 2010.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.