What's happening
This bill exempts certain motor vehicles, their parts and services, and railroad rolling stock, parts, and services from New York State sales and use tax.
Why it matters
Reduces costs for businesses and individuals. by eliminating state sales and use tax on the purchase, lease, maintenance, and repair of motor vehicles and railroad rolling stock, as well as their parts and certain related services, which could benefit transportation companies, logistics, and everyday vehicle owners.
Excludes these exemptions from local and regional taxes. , meaning cities, counties, and the Metropolitan Commuter Transportation District (MCTD) can still apply their own sales taxes to these items and services, potentially limiting the total tax savings for consumers in certain areas.
May incentivize investment. in vehicle and rail infrastructure by lowering the tax burden on maintenance and upgrades, which could encourage fleet modernization, safety improvements, and expanded service—especially for railroads operating in both intrastate and interstate commerce.
Impacts state tax revenue. by removing a source of income from sales taxes on a broad category of transportation goods and services, which could affect funding for state programs unless offset by increased economic activity or other revenue sources.
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Who cares
Headline styles
No Sales Tax for Carriers
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
3 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5597
2019-2020 Regular Sessions
IN ASSEMBLY
February 13, 2019
Introduced by M. of A. MANKTELOW -- Multi-Sponsored by -- M. of A. HAWLEY, McDONOUGH, STEC -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting certain motor vehicles, parts and services therefor and railroad rolling stock, parts and services therefor from the sales and use tax imposed by the state
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 3 of subdivision (c) of section 1105 of the tax law is amended by adding two new subparagraphs (xii) and (xiii) to read as follows:
(xii) services rendered with respect to the maintenance and repair of railroad and rolling stock, parts thereof and the structural components of the railroad as defined in paragraph forty-six of subdivision (a) of section eleven hundred fifteen of this article.
(xiii) services rendered with respect to the maintenance and repair of motor vehicles and the parts thereof as defined in paragraph forty-five of subdivision (a) of section eleven hundred fifteen of this article.
§ 2. Clause 1 of subdivision (b) of section 1107 of the tax law, as amended by chapter 472 of the laws of 2000, is amended to read as follows:
(1) The exemptions provided for in paragraphs forty-five and forty-six of subdivision (a) and subdivision (c) of section eleven hundred fifteen of this article and the exceptions provided for in subparagraphs (xii) and (xiii) of paragraph three of subdivision (c) of section eleven hundred five of this part shall not apply to fuel, gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature for use or consumption directly and exclusively in the production of gas, electricity, refrigeration or steam.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08938-01-9
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§ 3. Subdivision (b) of section 1108 of the tax law is amended by adding a new paragraph 6 to read as follows:
(6) The exemptions provided for in paragraphs forty-five and forty-six of subdivision (a) of section eleven hundred fifteen of this article and the exceptions provided for in subparagraphs (xii) and (xiii) of paragraph three of subdivision (c) of section eleven hundred five of this part shall not apply.
§ 4. Subdivision (a) of section 1109 of the tax law, as amended by section 1 of part BB of chapter 61 of the laws of 2005, is amended to read as follows:
(a) General. In addition to the taxes imposed by sections eleven hundred five and eleven hundred ten of this [article] part, there is hereby imposed within the territorial limits of the metropolitan commuter transportation district created and established pursuant to section twelve hundred sixty-two of the public authorities law, and there shall be paid, additional taxes, at the rate of three-eighths of one percent, which shall be identical to the taxes imposed by sections eleven hundred five and eleven hundred ten of this [article] part, except that with respect to the tax imposed by this section the exemptions provided for in paragraphs forty-five and forty-six of subdivision (a) of section eleven hundred fifteen of this article and the exceptions provided for in subparagraphs (xii) and (xiii) of paragraph three of subdivision (c) of section eleven hundred five of this part shall not apply. Such sections eleven hundred five and eleven hundred ten and the other sections of this article, including the definition and the other exemption provisions, shall apply for purposes of the taxes imposed by this section in the same manner and with the same force and effect as if the language of those sections had been incorporated in full into this section and had expressly referred to the taxes imposed by this section.
§ 5. Subdivision (a) of section 1115 of the tax law is amended by adding two new paragraphs 45 and 46 to read as follows:
(45) Motor vehicles as defined in subdivision two of section five hundred one of this chapter whether purchased or leased and parts thereof and the services rendered with respect to the maintenance of such motor vehicles and parts.
(46) Railroad rolling stock whether purchased or leased by a railroad which is engaged in intrastate or interstate commerce, parts thereof, structural components relating to the right of way of the railroad, services rendered with respect to the maintenance of such vehicles, parts and structural components. The term "structural components" shall include but is not limited to rail, bridges, crossing arms and traffic signals.
§ 6. The opening paragraph 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:
Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, except the exemptions provided for in paragraphs forty-five and forty-six of subdivision (a) of section eleven hundred fifteen of this chapter and the exceptions provided for in subparagraphs (xii) and (xiii) of paragraph three of subdivision (c) of section eleven hundred five of this chapter shall not apply so far as the provisions of such article twenty-eight
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can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes authorized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided.
§ 7. This act shall take effect December 1, 2019; provided, however, that the exemptions and exceptions provided for in sections one through six of this act shall apply to retail sales or uses occurring on and after January 1, 2020.
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