What's happening
This bill gradually increases the portion of motor fuel sales tax deposited into New York's dedicated highway and bridge trust fund.
Why it matters
Shifts more motor fuel sales tax revenue into infrastructure investment. By gradually increasing the amount of sales tax from each gallon of motor fuel that goes directly to the Dedicated Highway and Bridge Trust Fund, the bill boosts a reliable funding stream for critical transportation projects.
Creates a predictable, phased increase in funding. The bill raises the earmarked deposit by one cent per gallon each year, from one cent starting in 2019 up to four cents by 2022. This planned ramp-up helps state and local agencies plan multi-year road and bridge improvements with greater certainty.
Reduces flexibility of general fund spending. Allocating more sales tax revenue to a specific purpose (in this case, transportation infrastructure) means less of that revenue is available for other general state priorities, potentially impacting funding for other public services.
Strengthens dedicated fund accountability. By explicitly tying more revenue sources to the Dedicated Highway and Bridge Trust Fund in state finance law, the bill may help ensure that transportation taxes are used for their intended purpose, addressing concerns about diversion of funds away from infrastructure needs.
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Fund Roads With Gas Tax
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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
549
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. AKSHAR -- 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 and the state finance law, in relation to providing for the deposit into the dedicated highway and bridge trust fund of a portion of the sales tax revenue from the sale of motor fuel
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1148 of the tax law, as amended by section 57 of part HH of chapter 57 of the laws of 2013, is amended to read as follows:
§ 1148. Deposit and disposition of revenue. [All] (a) Except as otherwise provided in subdivision (b) of this section, all taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter; provided however, the comptroller shall on or before the twelfth day of each month, pay all such taxes, interest and penalties collected under this article and remaining to the comptroller's credit in such banks, banking houses or trust companies at the close of business on the last day of the preceding month, into the general fund of the state treasury, except as otherwise provided in sections ninety-two-d, ninety-two-h, and ninety-two-r of the state finance law and sections eleven hundred two, eleven hundred four and eleven hundred nine of this article.
(b) One cent of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, established by section eighty-nine-b of the state finance law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05133-01-9
S. 549 2
§ 2. Subdivision (b) of section 1148 of the tax law, as added by section one of this act, is amended to read as follows:
(b) [One cent] Two cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, established by section eighty-nine-b of the state finance law.
§ 3. Subdivision (b) of section 1148 of the tax law, as amended by section two of this act, is amended to read as follows:
(b) [Two] Three cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, established by section eighty-nine-b of the state finance law.
§ 4. Subdivision (b) of section 1148 of the tax law, as amended by section three of this act, is amended to read as follows:
(b) [Three] Four cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, established by section eighty-nine-b of the state finance law.
§ 5. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 7 of part UU of chapter 59 of the laws of 2018, is amended to read as follows:
(a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred five, two hundred eighty-nine-e, three hundred one-j, five hundred fifteen, eleven hundred forty-eight and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation and the commissioner of motor vehicles pursuant to section fifty-two, section three hundred twenty-six, section eighty-eight of the highway law, subdivision fifteen of section three hundred eighty-five of the vehicle and traffic law, section two of [the] part U1 of chapter sixty-two of the laws of two thousand three [that amended this paragraph], subdivision (d) of section three hundred four-a, paragraph one of subdivision (a) and subdivision (d) of section three hundred five, subdivision six-a of section four hundred fifteen and subdivision (g) of section twenty-one hundred twenty-five of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty-five of section ten of the highway law, and section one hundred forty-five of the transportation law, (iii) any moneys collected by the department of transportation for services provided pursuant to agreements entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source.
§ 6. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 8 of part UU of chapter 59 of the laws of 2018, is amended to read as follows:
(a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred
S. 549 3
eighty-nine-e, three hundred one-j, five hundred fifteen, eleven hundred forty-eight and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation and the commissioner of motor vehicles pursuant to section fifty-two, section three hundred twenty-six, section eighty-eight of the highway law, subdivision fifteen of section three hundred eighty-five of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty-five of section ten of the highway law, and section one hundred forty-five of the transportation law, (iii) any moneys collected by the department of transportation for services provided pursuant to agreements entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source.
§ 7. This act shall take effect April 1, 2019, provided, that:
(a) section two of this act shall take effect April 1, 2020;
(b) section three of this act shall take effect April 1, 2021;
(c) section four of this act shall take effect April 1, 2022; and
(d) the amendments to paragraph (a) of subdivision 3 of section 89-b of the state finance law, made by section five of this act, shall be subject to the expiration and reversion of such paragraph pursuant to section 13 of part U1 of chapter 62 of the laws of 2003, as amended, when upon such date the provisions of section six of this act shall take effect.
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 and the state finance law, in relation to providing for the deposit into the dedicated highway and bridge trust fund of a portion of the sales tax revenue from the sale of motor fuel
Purpose
The purpose of this bill is to dedicate a portion of funds brought in through sales tax revenue on gasoline and place them in the Dedicated Highway and Bridge Trust Fund.
Summary of provisions
Section 1. Amends Section 1148 of the Tax Law, to read that one cent of the taxes collected or received by the Commissioner under Section 1148 for the retail sale of each gallon of motor fuel shall be deposited in the Dedicated Highway and Bridge Trust Fund.
Section 2. Section 4. Allows for an increase in the amount of dedication to the Highway and Bridge Trust Fund at a rate of $0.01/year as set by the effective dates in Section 6.
Section 5 and 6. This section allows for sales tax revenue from gasoline to be directed to the Highway and Bridge Trust Fund.
Section 7. Sets the effective date for the act as April 1, 2019, provided that § 2 of the act takes effect on April 1, 2020 § 3 of the act takes effect on April 1, 2021, § 4 of the act takes effect on April 1, 2022.
Justification
In 2007, the New York State Department of Transportation released a 20-year transportation capital needs analysis. The report showed a transportation system in decline. In October 2009, the New York State Department of Transportation proposed a $25.8 billion five-year capital plan that would merely hold conditions steady. Based on available money, research estimates a funding gap of $8 billion over the 5 years.
There is currently a state sales tax on motor fuels that generates $413 million annually, none of which is dedicated to transportation. The dedication of $0.01/gallon, increasing $0.01/year for 4 years, would create $51 million for highway and bridge use in 2016 and would dedicate a total of $516 million for highway and bridge use by the end of 2019. Every year thereafter, based on the same usage, there would be an expected dedication of $206 million/year. This bill does not increase sales tax on gasoline.
LEGISLATIVE HISTORY
2018: S1052 - Referred to Investigations and Government Operations 2017: S1052 - Referred to Investigations and Government Operations 2014: A8876 -Held for consideration in Ways and Means and S1350 Investi- gation and Government Operations
Fiscal implications
None.
Effective date
This act shall take effect on April 1, 2019, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.