NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5901
SPONSOR: Jean-Pierre TITLE OF BILL:
An act to amend the tax law, in relation to exempting zero-emission
school buses from sales and use taxes
PURPOSE:
This legislation exempts from sales and compensating use taxes zero-em-
ission school buses and parts and equipment purchased and used in their
operation.
SUMMARY OF PROVISIONS:
Section 1 Adds a new paragraph 11 to Section 1115 of the tax law to
exempt zero-emission school buses and parts and equipment purchased and
used in their operation.
Section 2 is the effective date.
JUSTIFICATION:
New York's enacted State Budget for Fiscal Year 2023 requires that all
new school bus purchases made after July 1, 2027, be zero-emission and
all school buses on the road be zero-emissions by 2035. Private trans-
portation companies that provide contract transportation are also
subject to the mandate for any vehicle that transports students.
Despite the significant environmental advantages of zero emission school
buses, the upfront purchase price has emerged as the greatest obstacle
to their widespread use. New zero emission school buses can cost two to
three times more compared to purchasing a traditional new diesel school
bus. Many private student transportation companies operating in state
simply cannot afford the upfront cost to purchase new zero emission
school buses, even with the grants and other subsidies offered.
Eliminating the sales tax on the purchase of new zero emission school
buses would provide much needed financial relief to private student
transportation contractors that are required to purchase and replace
their fleet with zero emission school buses by 2035. Eliminating the
sales tax may also help to accelerate the conversion to zero emission
school buses.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period next commencing.
STATE OF NEW YORK
________________________________________________________________________
5901
2023-2024 Regular Sessions
IN ASSEMBLY
March 24, 2023
___________
Introduced by M. of A. JEAN-PIERRE -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting zero-emission
school buses from sales and use taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1115 of the tax law is amended by adding a new
2 subdivision (ll) to read as follows:
3 (ll) Notwithstanding any other provision of law to the contrary,
4 receipts from the sale of zero-emission school buses, as such term is
5 defined in section thirty-six hundred thirty-eight of the education law
6 and parts or equipment purchased and used in the operation of such buses
7 shall be exempt from taxes imposed by this article.
8 § 2. This act shall take effect on the first day of a quarterly sales
9 tax period, as set forth in subdivision (b) of section 1136 of the tax
10 law, next commencing at least thirty days after this act shall have
11 become a law and shall apply in accordance with the applicable transi-
12 tional provisions of section 1106 of the tax law. Effective immediately,
13 the addition, amendment and/or repeal of any rule or regulation neces-
14 sary for the implementation of this act on its effective date are
15 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.
LBD09918-01-3
