Bill S1350-2013

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

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.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Apr 30, 2013: REPORTED AND COMMITTED TO FINANCE
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Apr 30, 2013
Ayes (7): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Diaz
Ayes W/R (2): Hoylman, Squadron

Memo

BILL NUMBER:S1350

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

PURPOSE: 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 the 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 5. Allows for an increase in the amount of dedication to the Highway and Bridge Trust Fund at a rate of $0.02/year as set by the effective dates in Section 7.

Section 6 and 7. This section allows for sales tax revenue from gasoline to be directed to the Highway and Bridge Trust Fund.

Section 8. Sets the effective date for the act as April 1, 2014, provided that § 2 of the act takes effect on April 1, 2015 § 3 of the act takes effect on April 1, 2016, § 4 of the act takes effect on April 1, 2017, § 5 of the act takes effect on April 1, 2018.

JUSTIFICATION: In 2007, the New York State Department of Transportation released a 20 year transportation capital needs analysis. The report showed a transportation system in decline. In October 2009, the New York State Department 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 sales tax on motor fuels that generates $947 million annually, none of which is dedicated to transportation. The dedication of $0.01/gallon, increasing $0.01/year for 5 years, would create $65.8 million for highway and bridge use in 2012 and would dedicate a total of $987 million for highway and bridge use by the end of 2016 (based on a usage of 6,579.5 million gallons/year). Every year thereafter, based on the same usage, there would be an expected dedication of $329 million/year. This bill does not increase sales tax on gasoline.

LEGISLATIVE HISTORY:

2010: Referred to Investigation and Government Operations 2012: Passed Senate

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on April 1, 2014, with provisions.


Text

STATE OF NEW YORK ________________________________________________________________________ 1350 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1148 of the tax law, as amended by chapter 3 of the laws of 2004, is amended to read as follows: S 1148. Deposit and disposition of revenue. [All] (A) EXCEPT AS OTHER- WISE PROVIDED IN SUBDIVISION (B) OF THIS SECTION, ALL taxes, interest and penalties collected or received by the commissioner under this arti- cle shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter; provided however, the comptroller shall on or before the twelfth day of each month, pay all such taxes, interest and penalties collected under this article and remaining to the comptroller's credit in such banks, banking houses or trust companies at the close of business on the last day of the preced- ing month, into the general fund of the state treasury, except as other- wise provided in sections ninety-two-d and ninety-two-r of the state finance law and sections eleven hundred two, eleven hundred four and eleven hundred nine of this article. (B) ONE CENT OF THE TAXES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE FOR THE RETAIL SALE OF EACH GALLON OF MOTOR FUEL SHALL BE DEPOSITED IN THE SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. S 2. Subdivision (b) of section 1148 of the tax law, as added by section one of this act, is amended to read as follows:
(b) [One cent] TWO CENTS of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, estab- lished by section eighty-nine-b of the state finance law. S 3. Subdivision (b) of section 1148 of the tax law, as amended by section two of this act, is amended to read as follows: (b) [Two] THREE cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, estab- lished by section eighty-nine-b of the state finance law. S 4. Subdivision (b) of section 1148 of the tax law, as amended by section three of this act, is amended to read as follows: (b) [Three] FOUR cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, estab- lished by section eighty-nine-b of the state finance law. S 5. Subdivision (b) of section 1148 of the tax law, as amended by section four of this act, is amended to read as follows: (b) [Four] FIVE cents of the taxes collected or received by the commissioner under this article for the retail sale of each gallon of motor fuel shall be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund, estab- lished by section eighty-nine-b of the state finance law. S 6. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 2 of part B of chapter 58 of the laws of 2012, is amended to read as follows: (a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred five, two hundred eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED FORTY-EIGHT and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation pursuant to section fifty-two, section three hundred twenty-six, and subdivisions five, eight and twelve of section eighty-eight of the highway law, subdivision fifteen of section three hundred eighty-five of the vehicle and traffic law, section [two] NINE of [the] PART U1 OF chapter SIXTY-TWO of the laws of two thousand three that amended this paragraph, subdivision (d) of section three hundred four-a, paragraph one of subdivision (a) and subdivision (d) of section three hundred five, subdivision six-a of section four hundred fifteen and subdivision (g) of section twenty-one hundred twenty-five of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty-five of section ten of the highway law, (iii) any moneys collected by the department of transportation for services provided pursuant to agree- ments entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source.
S 7. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 3 of part B of chapter 58 of the laws of 2012, is amended to read as follows: (a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED FORTY-EIGHT and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation pursuant to section fifty-two, section three hundred twenty-six, and subdivisions five, eight and twelve of section eighty-eight of the high- way law, subdivision fifteen of section three hundred eighty-five of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty-five of section ten of the highway law, (iii) any moneys collected by the department of transportation for services provided pursuant to agree- ments entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source. S 8. This act shall take effect April 1, 2014, provided, that: (a) section two of this act shall take effect April 1, 2015; (b) section three of this act shall take effect April 1, 2016; (c) section four of this act shall take effect April 1, 2017; (d) section five of this act shall take effect April 1, 2018; and (e) the amendments to paragraph (a) of subdivision 3 of section 89-b of the state finance law, made by section six of this act, shall not affect the expiration and reversion of such paragraph and shall expire therewith, when upon such date section seven of this act shall take effect.

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