Repeals the sales tax on transportation service

1 Co-sponsor

• Timothy M. Kennedy

BILL NUMBER:S4464 REVISED 10/22/14

Title of bill

An act to amend the tax law, in relation to the imposition of sales tax upon transportation service; and to repeal certain provisions of such law relating thereto

Purpose

To repeal the sales tax on transportation services

Summary of provisions

Sections 1 through 6 of the bill repeal and amend those sections of law which deal with the definition, computation, imposition and administration of sales taxes on certain transportation services by black cars, limousines, and community car services.

Section 7 establishes the effective date.

Justification

New York City's For-Hire Vehicle industry plays a crucial role in the transportation of the City's residents. The 2010 state budget imposed a sales tax on the use of black car services which has bled the black car industry and created unnecessary costs for businesses across the city. Black Car drivers are overwhelmingly New York City residents and taxpayers and putting them out of work likely harms the state's bottom line more than the tax helps it. In order to keep the black car industry viable, this sales tax should be repealed.

Legislative history

This is a new bill

Fiscal implications

To be determined.

Effective date

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