Relates to exempting new and used ambulances purchased by an ambulance service from state sales and compensating use taxes

1 Co-sponsor

• William J. Larkin Jr.

BILL NUMBER:S3292 REVISED 5/29/13

Title of bill

An act to amend the tax law, in relation to exemption of new and used ambulance vehicles and equipment from state sales and compensating use taxes

Purpose

To remove the sales tax burden on the purchase of new and used ambulance vehicles when purchased by commercial ambulance companies certified to provide emergency care and medical transportation under Article 30 of the Public Health law.

Summary of provisions

Section one of the bill amends section 1115 of the Tax law to exempt from the imposition of State sales tax the purchase of new and used ambulance vehicles purchased by commercial ambulance companies certified to provide emergency care and medical transportation pursuant to Article 30 of the Public Health Law. Similarly, subparagraph (3-b) would provide for a similar exemption for the purchase of medical equipment and supplies by commercial ambulance companies certified under Article 30 of the Public Health Law.

Existing law

Section 1115 of the Tax Law provides for exemptions from sales and use taxes, Such exemptions are from the tax on retail sales imposed under Subdivision (a) of Section 1105 of the Tax Law and the compensating use tax imposed under Section 1110 of the Tax Law Exemptions include the receipts for drugs and medicine, used mobile homes, commercial fishing vessels, racehorses, and omnibuses used to transport persons for hire,

Justification

The commercial ambulance industry provides approximately one-half of all of the emergency medical transports in New York State, delivering high quality medical care and transportation to patients. All ambulance service providers are required to treat and transport patients, regardless of their ability to pay, and commercial services have built into their corporate cultures the ethic of always delivering the highest level of care, notwithstanding reimbursement The reality is however, that ambulance services often go un-reimbursed, and ambulance services have no access to bad debt and charity pools to help offset the cost of this care The tax relief provided for in this bill is being sought in order to maintain and improve the high quality of service delivery and patient care characteristic of commercial ambulance services across the State.

Similar tax exemptions are currently in law. For example, receipts from the sale of omnibuses used to transport persons for hire enjoy a sales tax exemption, Extending a similar exemption to ambulance services certified under Article 30 of the Public Health law will provide critical relief and help ensure that these ambulance services can continue to compete and deliver high-quality health care

Legislative history

S.2773/A.3398 of 2011-12; S.3200/A.4760 of 2009-10

Fiscal implications

This legislation would take effect on September 1, 2013 and would reduce State and local revenues by $4 million in SFY 2013-14 The State's share of this revenue reduction would equal approximately $2 million.

During its first full fiscal year of implementation, SFY 2014-15, this legislation would reduce State and local revenues by approximately $8 million. The State's share of this revenue reduction would equal approximately $4 million.

Effective date

This act shall take effect the first of September next succeeding the date on which it shall have become law.