Relates to exempting the sale of motor vehicles which will be modified for operation by, or for the transportation of, a person with a disability from state sales and compensating use taxes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6942
SPONSOR: Sillitti TITLE OF BILL:
An act to amend the tax law, in relation to exempting the sale of motor
vehicles which will be modified for operation by, or for the transporta-
tion of, a person with a disability from state sales and compensating
use taxes
PURPOSE:
To exempt the purchase of a new or certain used vehicles that require
modifications to permit use by a person with a disability.
SUMMARY OF PROVISIONS:
Section one includes eligibility criteria for the exemption:
1. Applies to vehicles purchased new, or used vehicles that are less
than five years old, with fewer than 50,000 miles;
2. Directs commissioner to create a certificate that must be filed at
time of purchase to confirm eligibility;
3. Vehicle must be owned by the person with a disability or an immediate
family member;
4. Vehicle must primarily be operated by the person with a disability or
used for transportation of said person;
5. Vehicle must be -inspected, registered and insured.
Section two is the effective date.
EXISTING LAW:
None.
JUSTIFICATION:
"V-Mods" are motor vehicles, typically cars or vans, that are altered
prior to sale or after market to permit operation by a person with a
disability, or to accommodate the transportation needs of such an indi-
vidual.
Alterations may include installation of adaptive equipment, such as hand
and foot controls, wheelchair lifts and lock downs, parking brake exten-
sions, or changes to a vehicle's original structural or internal
designs, like floor cut-outs, replacement fiberglass tops, extended
steering column, raised door, repositioned seats and dashboard adaptions
that can add thousands of dollars to a vehicle's purchase price.
The actual cost of such modifications is already exempt from sales tax,
but a purchaser is still liable for the tax on the purchase of the
original vehicle. In many cases, a person in need of a vehicle with
substantial modifications may find it necessary to purchase a larger
vehicle, such as a van, at substantially higher personal cost. The
NHTSA estimates the cost of vehicles and modifications averages about
$80,000, which is nearly twice the average cost of a new car in 2022.
This measure would enhance accessibility and mobility for many more
disabled New Yorkers, allowing them to more fully participate in work
and other activities and enjoy a more fulfilling life.
LEGISLATIVE HISTORY:
2022: S9537 Rules Committee
FISCAL IMPLICATIONS:
Slight decrease in sales tax revenue from purchases of certain modified
vehicles.
EFFECTIVE DATE:
90 days after becoming law.
STATE OF NEW YORK
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6942
2023-2024 Regular Sessions
IN ASSEMBLY
May 9, 2023
___________
Introduced by M. of A. SILLITTI -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to exempting the sale of motor
vehicles which will be modified for operation by, or for the transpor-
tation of, a person with a disability from state sales and compensat-
ing use taxes
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 1115 of the tax law is amended
2 by adding a new paragraph 14-b to read as follows:
3 (14-b)(i) Motor vehicles, as such term is defined in section one
4 hundred twenty-five of the vehicle and traffic law, that:
5 (A) Have been or will be modified for operation by, or for the trans-
6 portation of, a person with a disability; and
7 (B) Are primarily driven by, or primarily used for the transportation
8 of, a person with a disability.
9 (ii) In order to receive the exemption provided for under this para-
10 graph, the purchaser of the motor vehicle shall furnish to the seller a
11 certificate attesting to the purchaser's or an immediate family member's
12 disability which requires a motor vehicle modification. The certificate
13 shall be in such form, contain such information and be filed as
14 prescribed by the commissioner.
15 (iii) As used in this paragraph:
16 (A) A "motor vehicle modified for operation by a person with a disa-
17 bility":
18 (1) shall be owned by the person with a disability or by such person's
19 immediate family member;
20 (2) shall be inspected, registered and insured as required by law;
21 (3) may be a new or used vehicle which is not more than five years old
22 and has been driven less than fifty thousand miles;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08778-01-3
A. 6942 2
1 (4) includes adaptive equipment to enable an individual to operate the
2 vehicle, including but not limited to, hand controls, a deep dish steer-
3 ing wheel, spinner knobs, wheelchair lock downs, parking brake exten-
4 sions, foot controls, wheelchair lifts (including maintenance
5 contracts), and left foot gas pedals;
6 (5) includes modifications to the structure and internal design of the
7 existing equipment of the vehicle including but not limited to, floor
8 cut-outs, replacement of a roof with a fiberglass top, extension of the
9 steering column, raised doors, repositioning of seats, wheelchair floor,
10 and dashboard adaptions; and
11 (6) does not include routine maintenance of the vehicle after sale;
12 (B) "Person with a disability" means any person with a disability as
13 that term is defined in subdivision twenty-one of section two hundred
14 ninety-two of the executive law; and
15 (C) "Primarily driven by, or primarily used for the transportation of,
16 a person with a disability" means the motor vehicle is driven by, or
17 used for the transportation of, a person with a disability at least
18 eighty percent of the motor vehicle's operating time.
19 § 2. This act shall take effect on the ninetieth day after it shall
20 have become a law. Effective immediately, the addition, amendment and/or
21 repeal of any rule or regulation necessary for the implementation of
22 this act on its effective date are authorized to be made and completed
23 on or before such effective date.
