Repeals article 21 of the tax law relating to imposition of a highway use tax for the privilege of operating any vehicular unit upon the public highways of the state.
TITLE OF BILL: An act to repeal article 21 of the tax law relating to the highway use tax
PURPOSE: This bill repeals the highway use tax.
SUMMARY OF PROVISIONS: Repeals article 21 of the tax law relating to imposition of a highway use tax for the privilege of operating any vehicular unit upon the public highways of the state.
JUSTIFICATION: The highway use tax, also known as the ton-mile tax, reduces the ability of New York trucking companies to compete with out-of-state companies because it places a higher cost burden on the New York-based trucking industry as compared with truckers from other states that travel through New York. Other states have eliminated the highway use tax and have instead opted for simpler tax collection methods, such as registration fees and fuel taxes, over the ton-mile tax. Calculating the ton-mile tax payment requires substantial paperwork and is easily evaded by out-of-state companies. This tax causes New York to lose its competitive edge in attracting trucking businesses. The tax also increases the cost of shipping and the cost of doing business in New York State. The elimination of the tax would benefit truckers, manufacturers, shippers and consumers.
LEGISLATIVE HISTORY: 1999-2000: A.10374 Referred to Ways & Means 2001-2002: A.1448 Held for Consideration in Ways & Means 2003-2004: A.1842 Referred to Ways & Means 2005-2006: A.9453 Referred to Ways & Means 2007-2008: A.421 Held for Consideration in Ways & Means 2009-2010: A.298 Referred to Ways & Means
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4307 2011-2012 Regular Sessions IN SENATE March 28, 2011 ___________Introduced by Sens. DeFRANCISCO, BONACIC, GRIFFO, JOHNSON, LARKIN, RANZENHOFER, SEWARD -- read twice and ordered printed, and when print- ed to be committed to the Committee on Investigations and Government Operations AN ACT to repeal article 21 of the tax law relating to the highway use tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Article 21 of the tax law is REPEALED. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03155-01-1