What's happening
This bill exempts maintenance and repair services for trucks over 33,000 pounds from New York State sales and use tax.
Why it matters
Reduces operational costs for trucking companies. by eliminating state sales and use tax on maintenance and repairs for large trucks, which could help lower overall expenses for freight and logistics businesses operating in New York.
Targets only the largest commercial vehicles. (over 33,000 pounds gross weight), focusing the tax benefit on heavy-duty trucks that are essential for long-haul transportation and major goods movement.
Does not apply in certain local jurisdictions. including the Metropolitan Commuter Transportation District and areas with local sales taxes—meaning some city or regional taxes may still be charged, so the exemption is not universal across all NYS locations.
May indirectly impact consumer prices and supply chains. by potentially lowering transportation costs for goods, which could help stabilize or reduce prices for products moved by these heavy trucks, benefiting businesses and consumers.
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Who cares
Headline styles
End Truck Repair Sales Tax
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to finance
- Referred to finance
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 Truck Maintenance Tax
In Assembly Committee · Ways And Means · Sponsor David DiPietro
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
836
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. GALLIVAN -- 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 sales and use tax exemption for services rendered with respect to the maintenance and repair of trucks having a gross weight exceeding 33,000 pounds
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 a new subparagraph (xii) to read as follows:
(xii) such services rendered with respect to the maintenance and repair of trucks and property used by or purchased for such trucks, as such trucks and property are specified 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 paragraph forty-five of subdivision (a) and subdivision (c) of section eleven hundred fifteen of this article and the exception provided for in subparagraph (xii) 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.
§ 3. Subdivision (b) of section 1108 of the tax law is amended by adding a new paragraph 6 to read as follows:
(6) The exemption provided for in paragraph forty-five of subdivision (a) of section eleven hundred fifteen of this article and the exception provided for in subparagraph (xii) of paragraph three of subdivision (c) of section eleven hundred five of this part shall not apply.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02859-01-9
S. 836 2
§ 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 exemption provided for in paragraph forty-five of subdivision (a) of section eleven hundred fifteen of this article and the exception provided for in subparagraph (xii) 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 of this part 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 a new paragraph 45 to read as follows:
(45) Trucks, as such term is defined in section one hundred fiftyeight of the vehicle and traffic law, whether purchased or leased, and property installed on such vehicles for their equipping, maintenance or repair, provided such vehicles have a gross vehicle weight which exceeds thirty-three thousand pounds.
§ 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 that the exemption provided in paragraph forty-five of subdivision (a) of section eleven hundred fifteen of this chapter and the exception provided for in subparagraph (xii) 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 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, 2020; provided however, that the exemption and exception provided for in sections one through six of this act shall apply to retail sales or uses occurring on or after December 1, 2020.
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 sales and use tax exemption for services rendered with respect to the maintenance and repair of trucks having a gross weight exceeding 33,000 pounds
Purpose
To provide a sales and use tax exemption from the State portion of such tax to the sales, lease, maintenance and repair of trucks.
Summary of provisions
Section 1 exempts maintenance and repair services performed on certain trucks from the state sales tax.
Sections 2 through 4 provide that the exception added by Section 1 and Section 5 of this act do not apply to any local sales tax imposed to retire MAC bonds pursuant to sections 1107 and 1108 of the Tax Law, nor to the additional sales tax for a metropolitan commuter transportation district imposed pursuant to section 1109 of the Tax Law.
Section 5 adds a new paragraph 44 to subdivision (a) of section 1115 of the Tax Law to exempt from the State portion of the sales and use tax the purchase or lease of trucks in excess of 33,000 pounds, and the parts, equipment and other property used to maintain or repair such trucks.
Section 6 provides that the exception added by Section 1 and Section 5 of this act does not apply to city and county taxes imposed pursuant to section 1210 of the Tax Law.
Section 7 sets forth the effective date.
Justification
Chapter 755 of 1987 exempted the purchase, lease and repair of heavy tractors, trailers and semitrailers from State and local sales and use taxes, used in combinations with gross vehicle weights of over 26,000 pounds, and the property installed thereon for their equipping, mainte- nance or repair. The purposes of Chapter 755 were to increase the competitiveness of New York's interstate trucking industry by providing a sales tax exemption similar to that given in large neighboring states, to remove the incentive for performing maintenance outside New York and to encourage the purchase and use of newer, more productive and safer equipment in New York. Chapter 755 did not, however, provide these exemptions for other heavy trucks that are not tractor-trailer combina- tions.
These trucks, such as heavy delivery or dump trucks or vehicles engaged in a roll off business, pay the same road and fuel taxes, are subject to the same permits as all tractor and trailer combinations and otherwise are treated the same as tractor and trailer combinations, but do not enjoy the same sales tax exempt status. The arguments in support of Chapter 755 apply equally to all trucks in New York. This bill levels the competitive playing field for New York State-based truck operators and thereby will encourage the development and expansion of the trucking industry in this State.
Legislative history
2017-18: S.3664-A/A.5051-A Reported to Finance/Held in Ways and Means Committee 2015-16: A.3567 Held for consideration in Ways and Means 2013-14: A.6476 Died in Ways and Means Committee 2011-12: A.5984 Held for consideration in Ways and Means 2009-10: A.6617 Died in Ways and Means Committee 2007-08: A.5130 Died in Ways and Means Committee 2005-06: A.6313 Died in Ways and Means Committee 2003-04: A.3690 Died in Ways and Means Committee 2001-02: A.4480 Died in Ways and Means Committee 1999-00: A.4820 Died in Ways and Means Committee
Fiscal implications
To be determined.
Effective date
This act shall take effect December 1, 2020; provided however, that the exemption and exception provided for in sections one through six of this act shall apply to retail sales or uses occurring on or after December 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.