What's happening
This bill exempts school buses and their parts, equipment, lubricants, and fuel from New York sales and use tax.
Why it matters
Reduces operating costs for school districts and bus operators. by exempting school buses and all related parts, equipment, lubricants, and fuel from state sales and use tax, which could help keep transportation budgets lower or allow funds to be redirected to other educational needs.
Could encourage investment in fleet upgrades and maintenance. by lowering the overall cost of purchasing new buses and maintaining existing ones, potentially improving safety and environmental standards if schools can more easily afford newer or better equipment.
May impact state and local tax revenues. by removing a source of tax collection, which could affect public budgets, though it may be offset by potential savings or efficiencies for school districts.
Promotes uniformity and clarity. by specifically defining school bus-related purchases as tax-exempt, which simplifies compliance for both school districts and suppliers and reduces administrative burdens.
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Who cares
Headline styles
No Tax on School Buses
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
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End School Bus Sales Tax
In Assembly Committee · Ways And Means · Sponsor Joseph Lentol
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1331
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. GALLIVAN -- 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 a sales and use tax exemption for school buses and related items
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) School buses as such term is defined in section one hundred forty-two of the vehicle and traffic law, and parts, equipment, lubricants and fuel purchased and used in their operation.
§ 2. This act shall take effect on the first day of a quarterly sales tax period, as set forth in subdivision (b) of section 1136 of the tax law, next succeeding April 1, 2020. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02965-01-9
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 a sales and use tax exemption for school buses and related items
Purpose
This legislation would exempt from sales and use taxes the purchase of a school bus and any parts, equipment, lubricants and fuel used for the exclusive purpose of transporting certain persons to or from school or school activities.
Summary of provisions
Section 1 of the bill would amend § 1115(a) of the Tax law governing exemptions from sales and use taxes by adding a new paragraph to author- ize school buses and related items to be exempt from said tax.
Section 2 establishes the effective date.
Justification
New York State currently requires pupil transportation contractors to pay state and local sales taxes on school buses and related items. Such a requirement inflates the cost of school transportation. Essentially, the associated costs related to the payment of said tax is incorporated into the pupil transportation contract between the transportation compa- ny and the applicable school district. Exempting the aforementioned items from the sales tax will reduce student transportation costs. Furthermore, this bill will correct a statutory deficiency by establish- ing parity with coach buses and transit buses, both of which have been previously afforded sales tax exemption status.
Legislative history
2017-18: S.8375/A.10932 Passed Senate/Referred to Ways and Means
Fiscal implications
Savings to the state.
Effective date
This Act shall take effect on the first day of a quarterly sales tax period, as set forth in subdivision (b) of section 1136 of the tax law, next succeeding April 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.