NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7290A
SPONSOR: Gunther TITLE OF BILL:
An act to amend the tax law, in relation to establishing an income tax
credit for certain metropolitan commuters
PURPOSE:
Establishes a tax credit for individuals who pay the metropolitan commu-
ter transportation district (MCTD) supplemental registration fee for
farm vehicles.
SUMMARY OF PROVISIONS:
Section one amends section 606 of the tax law by adding a new subsection
(ccc) which establishes the metropolitan commuter transportation
district (MCTD) fee tax credit. This is applicable to any person who
pays the registration fee required by section 499-A of the vehicle and
traffic law for a farm vehicle registered pursuant to subdivision 13 of
section 401 of the vehicle and traffic law. It sets the amount of the
credit at the cost equal to the MCTD supplemental registration fee and
provides for the credit to be one hundred percent refundable.
Section two amends subparagraph (B) of paragraph 1 of subsection (i) of
section 606 of the tax law by adding a new clause (xliii) relating to
the applicability of the tax credit to small corporations.
Section three amends section 210-B of the tax law by adding a new subdi-
vision (51) which establishes the corporations' credit base for the MCTD
fee tax credit.
Section four is the effective date.
JUSTIFICATION:
Currently, registrants of farm vehicles who reside in the Metropolitan
Commuter Transportation District (City of New York and the Counties of
Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester)
must pay to the Commissioner of Motor Vehicles a supplemental registra-
tion fee of $50 every two years.
According to State law, farm vehicles are only allowed to travel between
points within New York State on public highways connecting portions of a
farm or farms, municipal sanitary landfills and licensed motor vehicle
repair shops, and may travel only by the most direct route, but in no
event further than 25 miles one-way. However, despite these tight
restrictions, farm vehicles must pay the supplemental fee like any other
registered vehicle in the MCTD.
This fee places an undue burden on our downstate farmers, who by virtue
of where they live must pay the supplemental fee, though they receive no
supplemental services.
This bill seeks to reimburse registrants of farm vehicles while not
reducing revenue to the MTA.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
Minimal to State.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2016.
