A06431 Summary:

BILL NOA06431
 
SAME ASNo Same As
 
SPONSORPalmesano (MS)
 
COSPNSRBarclay, Blankenbush, Brabenec, DeStefano, Lemondes, Manktelow, Morinello, Tague, Reilly
 
MLTSPNSRDiPietro, Fitzpatrick, Hawley, Miller, Ra, Walsh
 
Amd §1148, Tax L; amd §89-b, rpld §89-b sub 3 ¶(a), St Fin L
 
Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail; increases the amount to be deposited over time.
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A06431 Actions:

BILL NOA06431
 
03/04/2025referred to ways and means
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A06431 Committee Votes:

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A06431 Floor Votes:

There are no votes for this bill in this legislative session.
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A06431 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6431
 
SPONSOR: Palmesano (MS)
  TITLE OF BILL: An act to amend the tax law and the state finance law, in relation to providing for the deposit into the dedicated highway and bridge trust fund of a portion of the sales tax revenue from the sale of motor fuel; and to repeal certain provisions of the state finance law relating ther- eto   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to dedicate a portion of funds brought in through sales tax revenue on gasoline and place them in the Dedicated Highway and Bridge Trust Fund.   SUMMARY OF PROVISIONS: Section 1. Amends Section 1148 of the Tax Law, to read that one cent of taxes collected or received by the Commissioner under Section 1148 for the retail sale of each gallon of motor fuel shall be deposited in the Dedicated Highway and Bridge Trust. Fund. Section 2. Section 4. Allows for an increase in the amount of dedication to the Highway and Bridge.Trust Fund at a rate of $0.01/year as set. by the effective dates in Section 6. Section 5 and 6. This section allows for sales tax revenue from gasoline to be directed to the Highway and Bridge Trust Fund. Section 7. Sets the effective date for the act as April 1, 2016, provided that § 2 of the act takes effect on April 1, 2017 § 3 of the act takes effect on April 1, 2018, § 4 of the act takes effect on April 1, 2019.   JUSTIFICATION: In 2007, the New York State Department of Transportation released a•20 year transportation capital needs analysis. The report showed a trans- portation system in decline. In October 2009, the New York State Depart- ment of Transportation proposed a $25.8 billion five year capital plan that would merely hold conditions steady. Based on available money, research estimates a funding gap of $8 billion over the 5 years. There is currently a state sales tax on motor fuels that generates $413 million annually, none of which is dedicated to transportation. The dedication of $0.01/gallon, increasing $0.01/year for 4 years, would create $51 million for highway and bridge use in 2016 and would dedicate a total of S516 million for highway and bridge use by the end of 2019. Every year thereafter, based on the same usage, there would be an • expected dedication of $206 million/year. This bill does not increase sales tax on gasoline.   PRIOR LEGISLATIVE HISTORY: A.5089 of 2023-24 - held for consideration in Ways and Means A.4944 of 2021 - held for consideration in Ways and Means A.3699 of 2019-2020 - held for consideration in Ways and Means A.3871 of 2017-2018, Held for consideration in ways and means A.4369 of 2015-2016, Held for consideration in ways and means A.8876 of 2014, Held for consideration in ways and means S.1350 of 2014, Referred to investigation and Government Operations   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: none to the state.   EFFECTIVE DATE: This act shall take effect on April 1, 2025, with provisions.
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A06431 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6431
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 4, 2025
                                       ___________
 
        Introduced by M. of A. PALMESANO, BARCLAY, BLANKENBUSH, BRABENEC, DeSTE-
          FANO, LEMONDES, MANKTELOW, MORINELLO, TAGUE, REILLY -- Multi-Sponsored
          by  --  M. of A.   DiPIETRO, FITZPATRICK, HAWLEY, MILLER, RA, WALSH --
          read once and referred to the Committee on Ways and Means
 
        AN ACT to amend the tax law and the state finance law,  in  relation  to
          providing  for the deposit into the dedicated highway and bridge trust
          fund of a portion of the sales tax revenue  from  the  sale  of  motor
          fuel; and to repeal certain provisions of the state finance law relat-
          ing thereto
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1148 of the tax law, as amended by section  6-a  of
     2  part G of chapter 59 of the laws of 2019, is amended to read as follows:
     3    §  1148.  Deposit  and disposition of revenue. (a) All taxes, interest
     4  and penalties collected or received by the commissioner under this arti-
     5  cle shall be deposited and disposed of pursuant  to  the  provisions  of
     6  section one hundred seventy-one-a of this chapter; provided however, the
     7  comptroller  shall  on  or before the twelfth day of each month, pay all
     8  such taxes, interest and penalties  collected  under  this  article  and
     9  remaining  to  the comptroller's credit in such banks, banking houses or
    10  trust companies at the close of business on the last day of the  preced-
    11  ing month, into the general fund of the state treasury.
    12    (a-1)  Provided  however, before the funds may be distributed pursuant
    13  to subdivision (a) of this section, one cent of the taxes  collected  or
    14  received  by  the commissioner under this article for the retail sale of
    15  each gallon of motor fuel shall be deposited in the  special  obligation
    16  reserve  and  payment  account of the dedicated highway and bridge trust
    17  fund, established by section eighty-nine-b of the state finance law.
    18    (b) Provided however, [before] after the funds [may be]  are  distrib-
    19  uted pursuant to subdivision [(a)] (a-1) of this section but before such
    20  funds  are distributed pursuant to subdivision (a) of this section, such
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03752-01-5

        A. 6431                             2
 
     1  funds  shall  be  distributed  as   otherwise   provided   in   sections
     2  ninety-two-d,  ninety-two-h,  and  ninety-two-r of the state finance law
     3  and sections eleven hundred two, eleven hundred four and eleven  hundred
     4  nine of this article.
     5    (c)  Provided however, after funds are distributed pursuant to [subdi-
     6  vision] subdivisions (a-1) and (b) of this section but before such funds
     7  are distributed pursuant to subdivision (a) of this section, funds shall
     8  be deposited by the comptroller  into  the  New  York  central  business
     9  district  trust  fund  established pursuant to section ninety-nine-ff of
    10  the state finance law in accordance with the following schedule: (1)  in
    11  state  fiscal  year  two  thousand  nineteen  - two thousand twenty, one
    12  hundred twelve million five  hundred  thousand  dollars;  (2)  in  state
    13  fiscal  year  two thousand twenty - two thousand twenty-one, one hundred
    14  fifty million dollars; and (3) in state fiscal year two  thousand  twen-
    15  ty-one - two thousand twenty-two and every succeeding state fiscal year,
    16  an  amount  equal  to one hundred one percent of the amount deposited in
    17  the immediately preceding state fiscal year. The  funds  deposited  into
    18  the  New  York  central  business district trust fund shall be deposited
    19  monthly in equal installments.
    20    § 2. Subdivision (a-1) of section 1148 of the tax  law,  as  added  by
    21  section one of this act, is amended to read as follows:
    22    (a-1)  Provided  however, before the funds may be distributed pursuant
    23  to subdivision (a) of this section, [one cent] two cents  of  the  taxes
    24  collected  or  received  by  the commissioner under this article for the
    25  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    26  special  obligation reserve and payment account of the dedicated highway
    27  and bridge trust fund, established by section eighty-nine-b of the state
    28  finance law.
    29    § 3. Subdivision (a-1) of section 1148 of the tax law, as  amended  by
    30  section two of this act, is amended to read as follows:
    31    (a-1)  Provided  however, before the funds may be distributed pursuant
    32  to subdivision (a) of this section,  [two]  three  cents  of  the  taxes
    33  collected  or  received  by  the commissioner under this article for the
    34  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    35  special  obligation reserve and payment account of the dedicated highway
    36  and bridge trust fund, established by section eighty-nine-b of the state
    37  finance law.
    38    § 4. Subdivision (a-1) of section 1148 of the tax law, as  amended  by
    39  section three of this act, is amended to read as follows:
    40    (a-1)  Provided  however, before the funds may be distributed pursuant
    41  to subdivision (a) of this section, [three]  four  cents  of  the  taxes
    42  collected  or  received  by  the commissioner under this article for the
    43  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    44  special  obligation reserve and payment account of the dedicated highway
    45  and bridge trust fund, established by section eighty-nine-b of the state
    46  finance law.
    47    § 5. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
    48  finance law, as amended by section 4 of chapter 368 of the laws of 2019,
    49  is amended to read as follows:
    50    (a)  The  special obligation reserve and payment account shall consist
    51  (i) of all moneys required to be deposited in the dedicated highway  and
    52  bridge  trust  fund  pursuant  to the provisions of sections two hundred
    53  five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
    54  fifteen,  eleven  hundred  forty-eight and eleven hundred sixty-seven of
    55  the tax law, section four hundred one and article twelve-d of the  vehi-
    56  cle  and traffic law, and section thirty-one of chapter fifty-six of the

        A. 6431                             3
 
     1  laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties
     2  collected by the commissioner of transportation and the commissioner  of
     3  motor  vehicles  pursuant  to  section  fifty-two, section three hundred
     4  twenty-six, section eighty-eight of the highway law, subdivision fifteen
     5  of  section  three  hundred  eighty-five of the vehicle and traffic law,
     6  section two of part U1 of chapter sixty-two of the laws of two  thousand
     7  three, subdivision (d) of section three hundred four-a, paragraph one of
     8  subdivision  (a)  and  subdivision  (d)  of  section three hundred five,
     9  subdivision six-a of section four hundred fifteen and subdivision (g) of
    10  section twenty-one hundred twenty-five of the vehicle and  traffic  law,
    11  section  fifteen  of  this  chapter, excepting moneys deposited with the
    12  state on account of betterments performed pursuant to subdivision  twen-
    13  ty-seven  or  subdivision thirty-five of section ten of the highway law,
    14  and section one hundred forty-five of the transportation law, (iii)  any
    15  moneys  collected  by  the  department  of  transportation  for services
    16  provided pursuant to agreements entered into in accordance with  section
    17  ninety-nine-r  of  the  general municipal law, and (iv) any other moneys
    18  collected therefor or credited or transferred  thereto  from  any  other
    19  fund, account or source.
    20    §  6.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
    21  finance law, as amended by section 5 of chapter 368 of the laws of 2019,
    22  is amended to read as follows:
    23    (a) The special obligation reserve and payment account  shall  consist
    24  (i)  of all moneys required to be deposited in the dedicated highway and
    25  bridge trust fund pursuant to the provisions  of  sections  two  hundred
    26  eighty-nine-e, three hundred one-j, five hundred fifteen, eleven hundred
    27  forty-eight  and eleven hundred sixty-seven of the tax law, section four
    28  hundred one and article twelve-d of the vehicle  and  traffic  law,  and
    29  section  thirty-one of chapter fifty-six of the laws of nineteen hundred
    30  ninety-three, (ii) all fees, fines or penalties collected by the commis-
    31  sioner of transportation and the commissioner of motor vehicles pursuant
    32  to section fifty-two, section three hundred twenty-six, section  eighty-
    33  eight  of  the highway law, subdivision fifteen of section three hundred
    34  eighty-five of the vehicle and traffic  law,  section  fifteen  of  this
    35  chapter, excepting moneys deposited with the state on account of better-
    36  ments  performed  pursuant  to  subdivision  twenty-seven or subdivision
    37  thirty-five of section ten of the highway law, and section  one  hundred
    38  forty-five  of the transportation law, (iii) any moneys collected by the
    39  department of transportation for services provided  pursuant  to  agree-
    40  ments  entered  into  in  accordance  with  section ninety-nine-r of the
    41  general municipal law, and (iv) any other moneys collected  therefor  or
    42  credited or transferred thereto from any other fund, account or source.
    43    §  7.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
    44  finance law, as amended by section 8 of part UU of  chapter  59  of  the
    45  laws of 2018, is REPEALED.
    46    § 8. This act shall take effect April 1, 2025, provided, that:
    47    (a) section two of this act shall take effect April 1, 2026;
    48    (b) section three of this act shall take effect April 1, 2027;
    49    (c) section four of this act shall take effect April 1, 2028; and
    50    (d)  the  amendments to paragraph (a) of subdivision 3 of section 89-b
    51  of the state finance law, made by section five of  this  act,  shall  be
    52  subject  to  the  expiration and reversion of such paragraph pursuant to
    53  section 13 of part U1 of chapter 62 of the laws  of  2003,  as  amended,
    54  when upon such date the provisions of section six of this act shall take
    55  effect.
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