NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8010
SPONSOR: Benedetto TITLE OF BILL:
An act to amend the tax law, in relation to exempting from sales and use
tax zero-emission school buses
PURPOSE OR GENERAL IDEA OF BILL:
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 subdivision 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.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
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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.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
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
________________________________________________________________________
8010
2023-2024 Regular Sessions
IN ASSEMBLY
September 1, 2023
___________
Introduced by M. of A. BENEDETTO -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting from sales and use
tax zero-emission school buses
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) All zero-emissions school buses, as such term is defined in
4 section thirty-six hundred thirty-eight of the education law, and any
5 and all parts and pieces of equipment used in their operation.
6 § 2. This act shall take effect on the first day of a quarterly sales
7 tax period, as set forth in subdivision (b) of section 1136 of the tax
8 law, next succeeding the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10046-01-3
