Relates to exempting school bus operators from sales tax for equipment and fuel used in operation of a school bus

2 Co-sponsors

• Diane J. Savino
• David J. Valesky

BILL NUMBER:S1999A

Title of bill

An act to amend the tax law, in relation to providing certain school bus operators with a refund or credit of sales and compensating use taxes on the purchase of school buses and equipment and fuel used in the operation of a school bus

Purpose

To create an incentive for the private school bus operators to quickly phase-in the use of new clean-fuel school buses with near zero harmful emissions and ease the escalating financial burden on school bus operators and property tax payers attributed to various state and federal mandates, out-of-control insurance premiums and skyrocketing fuel prices.

Summary of provisions

The bill amends section 1119 of the tax law by phasing in a refund or credit from state sales and use tax on the sale or use by a school bus operator of any school bus (used for the transportation of students to and from school or school related events) and of parts, equipment, lubricants, motor fuel, maintenance, servicing and repairs.

Justification

In recent years, school bus contractors have been hit with enormous increases in costs associated with new clean-fuel school bus regulations, rising insurance premiums, various state and federal mandates and skyrocketing fuel prices yet they have received very small increases in compensation for their long term contracts because the Consumer price Index, which those increases are based, has not risen at a rate commensurate with those costs. The financial pinch has forced many contractors to decide not to extend existing pupil transportation contracts. Those districts that have had to go out to RFP or bid in the last few years have found that their costs have gone up significantly. Exemption from sales tax would ease the financial strain on contractors, help them conform to new federal clean-fuel regulations, remain competitive and help them extend existing contracts.

Legislative history

2011-12: S.1647: Referred to Investigations and Operations 2009-10: S.1921 - Referred to Investigations and Operations 2008: S.2441-A Passed Senate/A.1224-15 (Passed Ways & Means and Went to Rules) 2007: S.2441-A Passed Senate/A.1224 - Ways & Means 2006: S.2523 Finance/A.9621 - Ways & Means 2005: S.2523 Finance/A.9621 - Ways & Means 2004: S 5890 Finance/A.9652-B - Rules

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first day of the sales tax quarterly period next commencing September 1, 2015.