What's happening
This bill exempts the sale of new plug-in hybrid electric vehicles from New York State sales tax and allows local governments to also grant the exemption.
Why it matters
Encourages adoption of plug-in hybrid vehicles. by making them more affordable to New Yorkers, potentially accelerating the shift away from conventional gasoline cars and supporting state climate goals.
Defines eligibility for the tax exemption. with specific criteria, ensuring only new, manufacturer-made plug-in hybrids (with at least a 4 kWh battery, first owned by the buyer, not bought for resale) qualify, preventing abuse or loopholes.
Empowers local governments. to decide whether to offer the same tax break at the city or county level, allowing for tailored implementation based on local priorities and fiscal considerations.
Signals policy support for hybrid technology. (not just fully electric vehicles), which may appeal to consumers who are not yet ready to transition to all-electric cars but are interested in reducing emissions and fuel costs.
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Who cares
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No Tax on Hybrid Cars
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to finance
- Referred to finance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1291
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the tax law, in relation to exempting the sale of plugin hybrid electric 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 45 to read as follows:
(45) The receipts from the retail sale of new plug-in hybrid electric vehicles. For purposes of this paragraph the term "plug-in hybrid electric vehicle" means a motor vehicle, as defined in section one hundred twenty-five of the vehicle and traffic law, that:
(i) draws propulsion using a traction battery with at least four kilowatt hours of capacity;
(ii) uses an external source of energy to recharge such battery;
(iii) the original use of which commences with the taxpayer;
(iv) is acquired for use or lease by the taxpayer and not for resale; and
(v) is made by a manufacturer.
§ 2. Section 1160 of the tax law is amended by adding a new subdivision (c) to read as follows:
(c) The new plug-in hybrid electric vehicles exemption provided for in paragraph forty-five of subdivision (a) of 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 subdivi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02299-01-9
S. 1291 2
sion, 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 plug-in hybrid electric vehicles exemption provided for in paragraph forty-five 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 plug-in hybrid electric vehicle exemption.
§ 4. Section 1210 of the tax law is amended by adding a new subdivision (p) to read as follows:
(p) 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 plug-in hybrid electric vehicles exemption from state sales and compensating use taxes described in paragraph forty-five 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 forty-five of subdivision (a) of section 1115 of the New York tax law shall also be exempt from sales and compensating use taxes imposed in this jurisdiction.
Section two. This resolution shall take effect (insert date) 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 on the one hundred twentieth day after 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 exempting the sale of plug- in hybrid electric vehicles from state sales and compensating use taxes, and to authorize cities and counties to grant such exemption
Purpose
This legislation would exempt qualifying plug-in electric vehicles from sales tax.
Summary of provisions
Section 1 defines the term plug-in hybrid. electric vehicle and creates a state sales tax exemption.
Section 2 states that the tax break is not applicable to car rentals.
Section 3 states that new plug-in hybrid vehicles exemptions may be exempted by Counties.
Section 4 allows for a sales tax break if opted into by New York City.
Section 5 is the effective date.
Justification
Incentives to encourage the purchase of new plug-in hybrid electric vehicles afford a means for the State to encourage consumers to consider the purchase of clean fuel vehicles, by overcoming the initially greater cost of such technologies compared to other vehicles and accelerate their adoption in the market. While growing slowly over time, broad consumer acceptance of hybrid vehicles - remains very limited.
Since their inception in 1999, an estimated total of 2.157.723 hybrid electric automobiles and SUVs by various manufacturers have been sold in the United States through December 2011.
According to a recent report from Pike Research, hybrid electric vehi- cles (HEVs) and plug-in electric vehicles (PEVs) combined will represent only 3.1% of worldwide auto sales by 2017.
Despite higher rates of acceptance in the United States, HEVs and PEVs will account for only 5.1% of total U.S. vehicle sales by 2017.
According to Experian Automotive - New York State ranks 4th in total hybrid sales in the 50 states, with 4.68% of new car sales in 2011. New York lawmakers have enacted similar incentives in prior years to encour- age consumers to consider purchase of hybrid and other alternative fuel vehicles. These were of limited duration, and phased out over several years after consumer acceptance began to rise. Plug-in hybrid vehicles offer several benefits simultaneously:
*Dramatic improvements in fuel economy,
*Significant reductions in emissions, and *Encouraging the sales of these vehicles is consistent with New York's drive towards cleaner air.
Prior legislative history
S.4775/A.1243 of 2015-2016; referred to Energy and Telecommunications
S.1665 of 2013-14; referred to Investigations and Government Operations
S.7192A of 2012; referred to Investigations and Government Operations
Fiscal implications
To be determined.
Effective date
This bill shall take effect on the 180th day after 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.