N.Y. State Bill Proposed Requesting Elimination Of Sales Tax On Transportation Services
A few months ago I spoke with Senator Mark Grisanti’s office on behalf of the Limousine , Bus, Taxi ,Operators Of Upstate New York , regarding the 2009 law that went into affect, requiring the Limousine Livery Industry of New York to collect sales tax on transportation services.
My discussion with his office focused on the fact that we felt it was unfair that operators within the industry, had to collect sales tax, but do not gain tax benefits for doing so. Other industries within New York State that collect sales tax,are given sales tax exemption when they purchase or maintain their equipment that is used to generate sales tax revenue EXCEPT THIS INDUSTRY. The Bus, & Taxi industry are exempt, not Limousine, Livery. I asked for Senator Grisant’s office to look into it to see if anything could be done.
I received amazing news today!! Senator Grisanti not only researched the situation…he proposed a Bill S4920 on May 1st , 2013 repealing the 2009 law!
Senator Grisanti “took the ball” and ran with it! He needs our support! This needs to be a “grass roots ” effort!
I encourage every Limousine Livery operator in New YorK State to contact your Local Senator and ask them to support Senator Grisant’s Bill, S4920 to gain support and repeal this unfair 2009 Law!
Here is the proposed Bill….I hope the Limousine Livery Industry of New York stands together and supports Senator Grisanti’s efforts!
NEW YORK STATE SENATE
INTRODUCER’S MEMORANDUM IN SUPPORT
Submitted in accordance with Senate Rule VI. Sec 1
BILL NUMBER: S4920
TITLE OF BILL: An act to amend the tax law, in relation to eliminating sales tax on transportation services; and to repeal certain provisions of such law relating thereto
PURPOSE: The purpose of this bill is to repeal the sales tax and related expenses charged on certain transportation services.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 repeals: paragraph 34 of subdivision (b) of section 1101 of the tax law; paragraph 10 of subdivision (c) of section 1105 of the tax law; subdivision (1)of section 1106 of the tax law; subdivision (o) of section 111 of the tax law.
Further Section 1213 of the tax law amends current law to exclude certain transportation services from collecting sales tax on the services provided.
Finally, Section 1 provides the effective date.
JUSTIFICATION: In 2009 a hidden sales tax was imposed on the livery industry. This new tax was specifically aimed at services for sedans, vans, SUV’s and limos; leaving public transportation, taxi’s, and buses untaxed. This new responsibility caught the entire industry off guard, and creates an unfair disadvantage to the industry when purchasing tangible property.
This legislation would repeal several provisions that exist in current law in order to equalize the tax burden for the transportation industry.
This legislation will provide a much needed tax relief to small busi- nesses, as well as help to offset the rising costs that the livery industry faces.
PRIOR LEGISLATIVE HISTORY: None.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to the quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing September 1, 2014 and shall apply in accordance with the applicable transitional provisions in sections 1106 and 1217 of the tax law.