Exempts low-emission and energy efficient vehicles from retail sales and compensating use taxes.
BILL NUMBER:S1637 REVISED 3/28/13
TITLE OF BILL: An act to amend the tax law, in relation to exempting low-emission and energy efficient vehicles from retail sales and compensating use taxes; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL: This bill provides an incentive in the State of New York for individuals and commercial entities to purchase vehicles identified by the United States Environmental Protection Agency as clean and energy efficient.
SUMMARY OF SPECIFIC PROVISIONS: This legislation amends the Tax Law to exempt receipts from the retail sale or use of low-emission and energy-efficient vehicles from sales and compensating use taxes imposed in or by the State of New York.
JUSTIFICATION: This bill would provide an incentive for residents of New York State to purchase cleaner, more efficient vehicles. This bill would encourage individuals and commercial entities to purchase hybrid vehicles by making them exempt from the 4% sales and compensating use taxes set forth by the state. About 33% of U.S carbon dioxide emissions comes from the burning of gasoline in internal-combustion engines of cars and light trucks. For each gallon of gas a vehicle consumes, 19.6 pounds of carbon dioxide are emitted into the air. This exemption would be in place for five years. This legislation would be a great step in achieving better air quality in New York State as well as a reduction in the use of gasoline because hybrid vehicles get better mileage per gallon of gasoline.
PRIOR LEGISLATIVE HISTORY: 2011-12: S.1054/A.2539 - Referred to Energy & Telecommunication 2009-10: S.1783A/A.4022A - Finance 2008-09:S.7547
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: This bill is estimated to reduce state and local sales tax revenues by approximately $27.8 million. The State portion of this loss would be approximately $13.1 million. This loss will be offset by proceeds collected from the auction of any emissions allowances for air contaminants pursuant to article nineteen of the environmental conservation law and proceeds collected but not allocated by the New York State Energy Research and Development Authority. The offset is capped at $27 million.
EFFECTIVE DATE: This act shall take effect on the first day of the sales tax quarter that begins at least 90 days after the day on which it shall have become a law and shall expire and be deemed repealed December 31, 2016.
STATE OF NEW YORK ________________________________________________________________________ 1637 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the tax law, in relation to exempting low-emission and energy efficient vehicles from retail sales and compensating use taxes; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) LOW-EMISSION AND ENERGY EFFICIENT VEHICLES. FOR PURPOSES OF THIS PARAGRAPH, A "LOW-EMISSION AND ENERGY EFFICIENT VEHICLE" SHALL MEAN A VEHICLE CERTIFIED BY THE ADMINISTRATOR OF THE UNITED STATES ENVIRON- MENTAL PROTECTION AGENCY PURSUANT TO 23 U.S.C. S 166(F)(3). IF THE ADMINISTRATOR OF THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY HAS NOT SO CERTIFIED ANY VEHICLE AS A LOW-EMISSION AND ENERGY EFFICIENT VEHICLE, THEN, UNTIL SUCH CERTIFICATION OCCURS, "LOW-EMISSION AND ENERGY EFFICIENT VEHICLE" SHALL MEAN ANY VEHICLE THAT HAS ACHIEVED AN AIR POLLUTION SCORE OF NINE OR BETTER AND A GREENHOUSE GAS SCORE OF NINE OR BETTER ON THE GREEN VEHICLE GUIDE MAINTAINED BY THE UNITED STATES ENVI- RONMENTAL PROTECTION AGENCY. THE DEPARTMENT SHALL POST ON ITS WEB SITE A LIST OF LOW-EMISSION AND ENERGY EFFICIENT VEHICLES BY MAKE AND MODEL YEAR AND SUCH OTHER SPECIFICATIONS AS MAY BE NECESSARY TO IDENTIFY A LOW-EMISSION AND ENERGY EFFICIENT VEHICLE, AND SHALL UPDATE SUCH LIST AS NECESSARY TO PROVIDE A COMPLETE LIST OF LOW-EMISSION AND ENERGY EFFI- CIENT VEHICLES. S 2. This act shall take effect on the first day of the sales tax quarter that begins at least ninety days after the day on which it shall have become a law and shall expire and be deemed repealed December 31, 2016.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02360-01-3