Exempts low-emission and energy efficient vehicles from retail sales and compensating use taxes

1 Co-sponsor

• John L. Sampson

BILL NUMBER:S1637B REVISED MEMO 01/23/2014

Title of bill

An act to amend the tax law, in relation to exempting low-emission and energy efficient vehicles from retail sales and compensating use taxes; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

This bill provides an incentive in the State of New York for individuals and commercial entities to purchase vehicles identified by the United States Environmental Protection Agency as clean and energy efficient.

Summary of specific provisions

This legislation amends the Tax Law to exempt receipts from the retail sale or use of low-emission and energy-efficient vehicles from sales and compensating use taxes imposed in or by the State of New York.

Justification

This bill would provide an incentive for residents of New York State to purchase cleaner, more efficient vehicles. This bill would encourage individuals and commercial entities to purchase hybrid vehicles by making them exempt from the 4% sales and compensating use taxes set forth by the state. About 33% of U.S carbon dioxide emissions comes from the burning of gasoline in internal-combustion engines of cars and light trucks. For each gallon of gas a vehicle consumes, 19.6 pounds of carbon dioxide are emitted into the air. This exemption would be in place through the year 2017. This legislation would be a great step in achieving better air quality in New York State as well as a reduction in the use of gasoline because hybrid vehicles get better mileage per gallon of gasoline.

Prior legislative history

2013: S.1637 - Amended & recommitted to Finance/A.3846 - Amended & recommitted to Ways & Means 2012: S.1054 Energy & Telecommunications/A.2539 - referred to ways and means 2011: S.1054 - Finance /A.2539 - Ways and Means 2009-10: S.1783A - Finance/A.4022A - Ways & Means 2008-09: 5.7547 /A10447 referred to Ways and Means

Fiscal implications for state and local governments

To be determined.

Effective date

This act shall take effect on the first day of the sales tax quarter that begins at least ninety days after the day on which it shall have become a law and shall expire and be deemed repealed December 31, 2017.