Offers certain refunds or credits to school bus operators from sales tax for certain school buses and equipment and fuel used in operation of a school bus.
TITLE OF BILL: An act to amend the tax law, in relation to providing certain school bus operators with a refund or credit of sales and compensating use taxes on the purchase of school buses and equipment and fuel used in the operation of a school bus
PURPOSE: To create an incentive for the private school bus operators to quickly phase-in the use of new clean-fuel school buses with near zero harmful emissions and ease the escalating financial burden on school bus operators and property tax payers attributed to various state and federal mandates, out-of-control insurance premiums and skyrocketing fuel prices.
SUMMARY OF PROVISIONS: The bill amends section 1119 of the tax law by phasing in a refund or credit from state sales and use tax on the sale or use by a school bus operator of any school bus (used for the transportation of students to and from school or school related events) and of parts, equipment, lubricants, motor fuel, maintenance, servicing and repairs.
JUSTIFICATION: In recent years, school bus contractors have been hit with enormous increases in costs associated with new clean-fuel school bus regulations, rising insurance premiums, various state and federal mandates and skyrocketing fuel prices yet they have received very small increases in compensation for their long term contracts because the Consumer price Index, which those increases are based, has not risen at a rate commensurate with those costs. The financial pinch has forced many contractors to decide not to extend existing pupil transportation contracts. Those districts that have had to go out to RFP or bid in the last few years have found that their costs have gone up significantly. Exemption from sales tax would ease the financial strain on contractors, help them conform to new federal clean-fuel regulations, remain competitive and help them extend existing contracts.
LEGISLATIVE HISTORY: 2008: S.2441-A Passed Senate and A.1224-B (Passed Ways & Means and Went to Rules) 2007: S.2441-A Passed Senate and A.1224 - Ways & Means 2006: S.2523 Finance and A.9621 - Ways & Means 2005: S.2523 Finance and A.9621 - Ways & Means 2004: S.5890 Finance and A.9652-B - Rules
FISCAL IMPLICATIONS: No fiscal impact to the State's 2008-2009 fiscal plan/budget. Based on the effective date of September 1, 2009 it is estimated that this legislation would reduce state and local sales tax revenues by $2.5 million in SFY 2009-2010. The state portion of this reduction would be $1.2 million. In SFY 2011-2012, the first full year of implementation, it is estimated that this legislation would reduce
state and local sales tax revenues by $10 million with the state portion being $4.6 million.
EFFECTIVE DATE: This act shall take effect on the first day of the sales tax quarterly period next commencing September 1, 2012 after this act shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 1647 2011-2012 Regular Sessions IN SENATE January 11, 2011 ___________Introduced by Sen. CARLUCCI -- 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, in relation to providing certain school bus operators with a refund or credit of sales and compensating use taxes on the purchase of school buses and equipment and fuel used in the operation of a school bus THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1119 of the tax law is amended by adding a new subdivision (f) to read as follows: (F) SUBJECT TO THE CONDITIONS AND LIMITATIONS PROVIDED IN THIS SUBDI- VISION, A REFUND OR CREDIT SHALL BE ALLOWED FOR TAX PAID PURSUANT TO SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE, PARAGRAPH THREE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE, OR SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE AND ANY TAX IMPOSED PURSUANT TO THE AUTHORI- TY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, ON THE SALE TO OR PURCHASE BY A SCHOOL BUS OPERATOR OF (I) A SCHOOL BUS, AS DEFINED IN SECTION ONE HUNDRED FORTY-TWO OF THE VEHICLE AND TRAFFIC LAW, AT LEAST SEVENTY PERCENT OF THE USE OF WHICH IS FOR THE TRANSPORTATION, BY SUCH OPERATOR, OF SCHOOL STUDENTS TO OR FROM SCHOOL OR SCHOOL RELATED EVENTS, PURSUANT TO A CONTRACT MADE UNDER THE PROVISIONS OF THE EDUCATION LAW, (II) PARTS, EQUIPMENT AND LUBRICANTS WHEN SUCH PARTS, EQUIPMENT AND LUBRI- CANTS ARE INSTALLED IN OR ON SUCH A SCHOOL BUS, AT LEAST SEVENTY PERCENT OF THE USE OF WHICH IS FOR SUCH TRANSPORTATION, BY SUCH OPERATOR, PURSU- ANT TO SUCH CONTRACT, (III) THE SERVICES DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE WHEN RENDERED WITH RESPECT TO SUCH A SCHOOL BUS SO USED OR WITH RESPECT TO PARTS, EQUIPMENT AND LUBRICANTS INSTALLED IN OR ON SUCH A SCHOOL BUS SO USED, AND (IV) MOTOR FUEL OR DIESEL MOTOR FUEL USED EXCLUSIVELY BY SUCH OPERATOR IN SUCH A SCHOOL BUS FOR SUCH TRANSPORTATION PURSUANT TO SUCHEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03493-01-1 S. 1647 2
CONTRACT. NO REFUND OR CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION UNLESS ALL OF THE REQUIREMENTS FOR SUCH REFUND OR CREDIT HAVE BEEN MET FOR AT LEAST A TWELVE MONTH PERIOD AFTER THE SCHOOL BUS OPERATOR'S PURCHASE OF SUCH SCHOOL BUS; HOWEVER, SUCH REFUND OR CREDIT SHALL BE ALLOWED FOR A SCHOOL BUS THAT IS PAINTED "NATIONAL SCHOOL BUS CHROME" PURSUANT TO SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED SEVENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW AND LABELED AS A "SCHOOL BUS" PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SUBDIVISION TWENTY OF SUCH SECTION THREE HUNDRED SEVENTY-FIVE IF ALL OF THE REQUIREMENTS FOR SUCH REFUND OR CREDIT HAVE BEEN MET IN THE PREVIOUS QUARTERLY REPORTING PERIOD AS DESCRIBED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS ARTICLE. AN APPLICATION FOR A REFUND OR CREDIT PURSUANT TO THIS SUBDIVISION MUST BE FILED WITH THE COMMISSIONER WITHIN THE TIME PROVIDED BY SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS ARTICLE AND NO MORE FREQUENTLY THAN QUARTERLY. SUCH APPLICATION SHALL BE IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE. WHERE AN APPLICATION FOR CREDIT HAS BEEN FILED, THE SCHOOL BUS OPERATOR MAY TAKE SUCH CREDIT ON THE RETURN WHICH IS DUE COINCIDENT WITH OR IMMEDIATELY SUBSEQUENT TO THE TIME THE SCHOOL BUS OPERATOR FILES SUCH APPLICATION FOR CREDIT. HOWEV- ER, THE TAKING OF THE CREDIT ON THE RETURN SHALL BE DEEMED TO BE PART OF THE APPLICATION FOR CREDIT AND SHALL BE SUBJECT TO THE PROVISIONS IN RESPECT TO APPLICATIONS FOR CREDIT IN SUCH SECTION ELEVEN HUNDRED THIR- TY-NINE AS PROVIDED IN SUBDIVISION (E) OF SUCH SECTION. THE ALLOWANCE OF THE CREDIT OR REFUND SHALL ALSO BE SUBJECT TO THE SCHOOL BUS OPERATOR MAINTAINING RECORDS SATISFACTORY TO THE COMMISSIONER DEMONSTRATING COMPLIANCE WITH ALL THE REQUIREMENTS OF THIS SUBDIVISION. THE PERCENT- AGE OF SUCH SCHOOL BUS USE MAY BE COMPUTED EITHER ON THE BASIS OF MILE- AGE OR HOURS OF USE, AT THE DISCRETION OF THE PURCHASER OR USER. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "SCHOOL" SHALL MEAN A PRE-KINDER- GARTEN OR KINDERGARTEN PROGRAM, A PRESCHOOL, NURSERY SCHOOL OR ELEMENTA- RY, INTERMEDIATE OR SECONDARY SCHOOL. THE REFUND OR CREDIT SHALL BE FIFTY PERCENT FOR THE PERIOD COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWELVE TO AUGUST THIRTY-FIRST, TWO THOUSAND THIRTEEN. THE REFUND OR CREDIT SHALL BE ONE HUNDRED PERCENT COMMENCING SEPTEMBER FIRST, TWO THOUSAND THIRTEEN. S 2. This act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing September 1, 2012 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law; provided, further, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and issue any procedure, forms or instructions necessary to implement this act on its effective date.