What's happening
This bill amends the tax law to change the sales tax treatment of transportation services and repeals certain related provisions.
Why it matters
Changes which transportation services are subject to sales tax. The bill redefines what counts as taxable "livery service," clarifying and narrowing exemptions, especially for certain for-hire vehicles (like those mostly dispatched via electronic hail in large cities).
Repeals several specific tax provisions related to transportation. By removing entire sections and paragraphs, the bill eliminates special sales tax rules that previously applied to transportation services, which could alter how these services are taxed across different localities.
Alters tax jurisdiction rules for transportation services. The bill removes language that determined which locality gets the sales tax when a transportation service crosses city or county lines, potentially affecting local tax revenues and simplifying compliance for transportation providers.
Could impact pricing and competition among ride services. By changing which services are taxed and how, the bill might influence the cost structure for taxis, limos, and app-based ride services, possibly affecting consumer prices and competition in the transportation sector.
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Who cares
Headline styles
End Transportation Sales Tax
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
345
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 34 of subdivision (b) of section 1101 of the tax law, as amended by section 1 of part WW of chapter 57 of the laws of 2010, is amended to read as follows:
(34) Transportation service. The service of transporting, carrying or conveying a person or persons by livery service; whether to a single destination or to multiple destinations; and whether the compensation paid by or on behalf of the passenger is based on mileage, trip, time consumed or any other basis. A service that begins and ends in this state is deemed intra-state even if it passes outside this state during a portion of the trip. However, transportation service does not include transportation of persons in connection with funerals. Transportation service includes transporting, carrying, or conveying property of the person being transported, whether owned by or in the care of such person. In addition to what is included in the definition of "receipt" in paragraph three of this subdivision, receipts from the sale of transportation service subject to tax include any handling, carrying, baggage, booking service, administrative, mark-up, additional, or other charge, of any nature, made in conjunction with the transportation service. Livery service means service provided by limousine, black car or other motor vehicle, with a driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of one million or more in this state, an affiliated livery vehicle, and excluding any scheduled public service.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00072-01-7
S. 345 2
Limousine means a vehicle with a seating capacity of up to fourteen persons, excluding the driver. Black car means a for-hire vehicle dispatched from a central facility. "Affiliated livery vehicle" means a for-hire motor vehicle with a seating capacity of up to six persons, including the driver, [other than a black car or luxury limousine,] that is authorized and licensed by the taxi and limousine commission of a city of one million or more to be dispatched by a base station located in such a city and regulated by such taxi and limousine commission; and the charges for service provided by an affiliated livery vehicle are on the basis of flat rate, time, mileage, or zones and not on a garage to garage basis. An affiliated livery vehicle shall not include a for-hire vehicle dispatched from a central facility which has certified to the satisfaction of the taxi and limousine commission of a city with a population of one million or more that more than ninety percent of its forhire business is conducted by electronic hail.
§ 2. Paragraph 10 of subdivision (c) of section 1105 of the tax law is REPEALED.
§ 3. Subdivision (o) of section 1111 of the tax law is REPEALED.
§ 4. Subdivision (hh) of section 1115 of the tax law is REPEALED.
§ 5. Section 1213 of the tax law, as amended by section 2 of part WW of chapter 57 of the laws of 2010, is amended to read as follow:
§ 1213. Deliveries outside the jurisdiction where sale is made. Where a sale of tangible personal property or services, including prepaid telephone calling services, but not including other services described in subdivision (b) of section eleven hundred five of this chapter, including an agreement therefor, is made in any city, county or school district, but the property sold, the property upon which the services were performed or prepaid telephone calling or other service is or will be delivered to the purchaser elsewhere, such sale shall not be subject to tax by such city, county or school district. However, if delivery occurs or will occur in a city, county or school district imposing a tax on the sale or use of such property, prepaid telephone calling or other services, the vendor shall be required to collect from the purchaser, as provided in section twelve hundred fifty-four of this article, the aggregate sales or compensating use taxes imposed by the city, if any, county and school district in which delivery occurs or will occur, for distribution by the commissioner to such taxing jurisdiction or jurisdictions. For the purposes of this section delivery shall be deemed to include transfer of possession to the purchaser and the receiving of the property or of the service, including prepaid telephone calling service, by the purchaser. [Notwithstanding the foregoing, where a transportation service described in paragraph ten of subdivision (c) of section eleven hundred five of this chapter begins in one jurisdiction but ends in another jurisdiction, any tax imposed pursuant to the authority of this article shall be due the jurisdiction or jurisdictions where the service commenced.]
§ 6. Section 1283 of the tax law is REPEALED.
§ 7. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2015-2016--S1282 2013-2014: S.4464
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.