Exempts certain non-profit car-sharing organizations from the supplemental tax on passenger car rentals outside of the metropolitan commuter transportation district.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1033
SPONSOR: Kelles TITLE OF BILL:
An act to amend the tax law, in relation to exempting certain car-shar-
ing organizations from the special supplemental tax on passenger car
rentals outside of the metropolitan commuter transportation district
PURPOSE OR GENERAL IDEA OF BILL:
To exempt car sharing organizations, which offer an alternative means to
car ownership through a membership program, to be exempt from the addi-
tional 6% tax on passenger car rentals outside of the metropolitan
commuter transportation district enacted in the 2019-20 budget.
SUMMARY OF SPECIFIC PROVISIONS:
Amends section 1166-b of the tax law, adding subdivision (c).
JUSTIFICATION:
Several communities across the state, notably Ithaca Car Share• and
Capital Car Share (based in Albany), operate "car sharing organiza-
tions." These transportation services are unique and offer memberships
to allow for short-term car rental, at need, with multiple vehicles
available in several locations in the cities they serve. They operate as
non-profit 501(c)(3) organizations and target their services toward
low-income residents who cannot otherwise afford car ownership. It is
important to note that they are not "ride-sharing" companies, such as
Uber or Lyft, and serve a very different function. For car sharing
organizations, which effectively provide a transit service in under-
served areas, the additional 6% tax levied upon passenger car rental in
the 2019-20 budget is onerous. This bill provides a necessary tax
exemption.
LEGISLATIVE HISTORY:
A9660 of 2022: referred to ways and means
FISCAL IMPLICATIONS:
Minimal.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
1033
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. KELLES -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to exempting certain car-shar-
ing organizations from the special supplemental tax on passenger car
rentals outside of the metropolitan commuter transportation district
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1166-b of the tax law, as added
2 by section 2 of part WW of chapter 59 of the laws of 2019, is amended
3 and a new subdivision (d) is added to read as follows:
4 (a) In addition to the tax imposed under section eleven hundred sixty
5 of this article and in addition to any tax imposed under any other arti-
6 cle of this chapter, there is hereby imposed and there shall be paid a
7 tax at the rate of six percent upon the receipts from every rental of a
8 passenger car that is not subject to the tax described in section eleven
9 hundred sixty-six-a of this article and not otherwise exempt pursuant to
10 subdivision (d) of this section, but which is a retail sale of such
11 passenger car within the state.
12 (d) The transfer of possession of a motor vehicle for a consideration
13 shall not be considered a rental for purposes of this section if such
14 transfer is operated by a car-sharing organization which primarily
15 engages in such operation outside of the metropolitan commuter transpor-
16 tation district where it sells service. For purposes of this section, a
17 "car-sharing organization" is an organization described in paragraph
18 four of subdivision (a) of section eleven hundred sixteen of this chap-
19 ter and offers an alternative means to car ownership under which the
20 members of such entity are permitted to use a motor vehicle for a
21 consideration. In addition, to the extent such services have already
22 been or will be subject to the tax under this section for a use of a
23 passenger car, a person who used such a passenger car as a member of
24 such car-sharing organization shall be exempt from such use tax.
25 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03483-01-3
