What's happening
This bill exempts new and used hybrid and high-efficiency vehicles from state sales tax and allows local governments to do the same.
Why it matters
Encourages cleaner vehicle adoption. By removing sales tax from hybrid and high-efficiency vehicles, the bill lowers the upfront cost barrier, making it more financially attractive for consumers to choose environmentally friendly cars, which could accelerate the shift away from traditional gasoline vehicles.
Local flexibility for tailored policy. The bill allows cities and counties to decide if they want to offer the same tax exemption locally, enabling communities to align incentives with their own environmental goals and budgetary needs rather than imposing a one-size-fits-all mandate.
Defines qualifying vehicles clearly. The legislation specifies what counts as a “hybrid” or “high-efficiency” vehicle, including stringent fuel economy requirements (35 mpg highway or better, or vehicles using no fuel), ensuring the tax break targets genuinely impactful technologies.
Potential budget and infrastructure impact. While spurring green vehicle adoption, the bill may reduce tax revenues for the state and participating localities, which could impact funding for programs (including those related to transportation), highlighting a tradeoff between environmental incentives and public budgets.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Buyers of new and used hybrid vehicles
Qualifying hybrids would be exempt from state sales and compensating use taxes, without a model-year restriction.
Buyers of high-efficiency vehicles
Model year 2008 or later vehicles would qualify if they meet the specified EPA highway fuel economy standard of at least 35 miles per gallon or use no motor fuel or diesel fuel.
New and used vehicle dealers
Retail sales of qualifying vehicles would receive the state tax exemption, while local exemptions would depend on local action.
City, county and school district officials
They could elect to extend the exemption to their local sales and compensating use taxes.
Headline styles
No Tax on Hybrid Cars
Plain English, a few words. Used as the page title.
Sponsors
12 Co-sponsors
3 Multi-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6269
2017-2018 Regular Sessions
IN ASSEMBLY
March 1, 2017
Introduced by M. of A. ENGLEBRIGHT, HOOPER, MAGNARELLI, LUPARDO, GALEF, ORTIZ, SCHIMMINGER, ROSENTHAL, O'DONNELL, TITUS, CAHILL, JAFFEE, BENE- DETTO -- Multi-Sponsored by -- M. of A. ABBATE, PEOPLES-STOKES, TITONE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting the sale of hybrid vehicles and certain high-efficiency vehicles from state sales and compensating use taxes, and to authorize cities and counties to grant such exemption
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows:
(44)(i) The receipts from the retail sale of new or used hybrid vehicles and high-efficiency vehicles.
(ii) As used in this paragraph:
(A) "High-efficiency vehicle" means a model year two thousand eight or later motor vehicle, as defined in section one hundred twenty-five of the vehicle and traffic law, that is certified in the two thousand eight or later fuel economy guide of the federal Environmental Protection Agency to have a highway fuel economy estimate of thirty-five miles per gallon or better, or which uses no motor fuel or diesel fuel.
(B) "Hybrid vehicle" means a motor vehicle, as defined in section one hundred twenty-five of the vehicle and traffic law, that:
(i) draws propulsion energy from both:
(a) an internal combustion engine (or heat engine that uses combustible fuel), and
(b) an energy source device; and
(ii) employs a regenerative vehicle braking system that recovers waste energy to charge such energy storage device.
§ 2. Section 1160 of the tax law is amended by adding a new subdivision (c) to read as follows:
(c) The new and used hybrid vehicles and high-efficiency vehicles exemption provided for in paragraph forty-four of subdivision (a) of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03864-01-7
A. 6269 2
section eleven hundred fifteen of this chapter shall not apply to or limit the imposition of the tax imposed pursuant to this article.
§ 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows:
(ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commercial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty and the new and used hybrid vehicles and high-efficiency vehicles exemption provided for in paragraph fortyfour of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption or such new and used hybrid vehicles or high-efficiency vehicles exemption.
§ 4. Section 1210 of the tax law is amended by adding a new subdivision (q) to read as follows:
(q) Notwithstanding any other provision of state or local law, ordinance or resolution to the contrary:
(1) Any city having a population of one million or more in which the taxes imposed by section eleven hundred seven of this chapter are in effect, acting through its local legislative body, is hereby authorized and empowered to elect to provide the same exemptions from such taxes as the new and used hybrid vehicles and high-efficiency vehicles exemption from state sales and compensating use taxes described in paragraph forty-four of subdivision (a) of section eleven hundred fifteen of this chapter by enacting a resolution in the form set forth in paragraph two of this subdivision; whereupon, upon compliance with the provisions of subdivisions (d) and (e) of this section, such enactment of such resolution shall be deemed to be an amendment to such section eleven hundred seven and such section eleven hundred seven shall be deemed to incorporate such exemptions as if they had been duly enacted by the state legislature and approved by the governor.
(2) Form of Resolution: Be it enacted by the (insert proper title of local legislative body) as follows:
Section one. Receipts from sales of and consideration given or contracted to be given for, or for the use of, property and services exempt from state sales and compensating use taxes pursuant to paragraph 44 of subdivision (a) of section 1115 of the tax law shall also be exempt from sales and compensating use taxes imposed in this jurisdiction.
Section two. This resolution shall take effect March 1, (insert the year, but not earlier than the year 2019) and shall apply to sales made, services rendered and uses occurring on and after that date in accordance with the applicable transitional provisions in sections 1106, 1216 and 1217 of the New York tax law.
§ 5. This act shall take effect October 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.