What's happening
This bill exempts vehicles owned or operated by certain organizations, first responders, military, veterans, and essential workers from the metropolitan commuter transportation mobility tax.
Why it matters
Reduces financial burden on essential workers and organizations. By exempting vehicles used by first responders, healthcare workers, military personnel, veterans, and public employees from the tax, the bill aims to support those providing critical services, potentially improving their job retention and morale.
Benefits not-for-profits and delivery sectors. Not-for-profit organizations, wholesale food distributors, and delivery vehicles gain exemptions, which could lower operational costs and improve service delivery—especially important for those serving vulnerable populations or maintaining supply chains.
Potential impact on MTA funding. The metropolitan commuter transportation mobility tax is a funding source for regional transit. Exempting a broad swath of vehicles could reduce revenue available for public transportation projects, possibly shifting costs elsewhere or affecting transit services.
Acknowledges the role of essential travel. By specifically targeting vehicles used for essential work, the bill recognizes the importance of uninterrupted, affordable mobility for those whose jobs are vital to public safety, health, and infrastructure, especially during emergencies or crises.
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Who cares
Not-for-profit corporations, workers and volunteers
The bill would exempt vehicles owned or operated by nonprofits and private vehicles operated by workers or volunteers acting on their behalf from the metropolitan commuter transportation mobility tax.
First responders, military personnel and veterans
The bill names these groups in its proposed vehicle exemption from the tax.
Healthcare workers, critical infrastructure workers and public employees
The proposed exemption would cover vehicles associated with these workers, specifying that public employees must be traveling in an official capacity.
Wholesale food distributors and delivery businesses
The bill would extend the vehicle exemption to wholesale food distributors and wholesale or retail delivery vehicles.
Headline styles
Exempt Some Vehicles from Tax
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
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1238
2025-2026 Regular Sessions
IN SENATE
January 8, 2025
Introduced by Sen. RHOADS -- 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 the exemption of any vehicles owned and/or operated by certain persons, vendors, organizations or not-for-profit corporations from the imposition of the metropolitan commuter transportation mobility tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the tax law, paragraph 3 as amended by section 1 of part B of chapter 56 of the laws of 2011, paragraph 4 as amended by section 1 of part YY of chapter 59 of the laws of 2015, are amended and a new paragraph 5 is added to read as follows:
(3) an interstate agency or public corporation created pursuant to an agreement or compact with another state or the Dominion of Canada; [or]
(4) [Any] any eligible educational institution. An "eligible educational institution" shall mean any public school district, a board of cooperative educational services, a public elementary or secondary school, a school approved pursuant to article eighty-five or eighty-nine of the education law to serve students with disabilities of school age, or a nonpublic elementary or secondary school that provides instruction in grade one or above, all public library systems as defined in subdivision one of section two hundred seventy-two of the education law, and all public and free association libraries as such terms are defined in subdivision two of section two hundred fifty-three of the education law[.]; or
(5) any vehicles owned and/or operated by a not-for-profit corporation, any private vehicle operated by a worker or volunteer acting on behalf of such organization, first responders, military personnel, veterans, healthcare workers, critical infrastructure workers, public employees traveling in official capacity, wholesale food distributors or wholesale or retail delivery vehicles.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04066-01-5
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 the exemption of any vehi- cles owned and/or operated by certain persons, vendors, organizations or not-for-profit corporations from the imposition of the metropolitan commuter transportation mobility tax
Purpose
Exempt vehicles owned and/or operated by certain persons, vendors, organizations or not-for-profit corporation from the imposition of the metropolitan commuter tax.
Summary of provisions
Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the tax law, paragraph 3 as amended by section 1 of part B of chapter 56 of the laws of 2011, paragraph 4 is added to read as follows: (4)any eligi- ble educational institution. (5) any vehicles owned and/or operated by a not-for-profit corporation, any private vehicle operated by a worker or volunteer acting on behalf of such organization, first responders, mili- tary personnel, veterans, healthcare workers, critical infrastructure workers, public employees traveling in official capacity, wholesale food distributors or delivery vehicles.
§ 2. This act shall take effect immediately.
Justification
Justification for Senate Bill to Amend the Tax Law in Relation to the Exemption of Certain Vehicles from the Metropolitan Commuter Transporta- tion Mobility Tax
This bill seeks to amend the tax law to exempt vehicles owned and/or operated by certain persons, vendors, organizations, or not-for-profit corporations from the imposition of the Metropolitan Commuter Transpor- tation Mobility Tax (MCTMT). The aim is to alleviate the financial burden on these entities, which play crucial roles in providing essen- tial services and supporting community well-being.
The MCTMT is a tax imposed on certain employers and self-employed indi- viduals conducting business within the Metropolitan Commuter Transporta- tion District. While the tax is intended to fund the region's public transportation infrastructure, it places a financial strain on various entities, particularly those engaged in essential services and community support. Not-for-profit organizations, small vendors, and other qualify- ing entities often operate on tight budgets and are disproportionately affected by such taxes.
This bill addresses the need to support these vital sectors by providing them with tax relief.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.