BILL NUMBER:A298

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, manufac-
turers, shippers and consumers.

LEGISLATIVE HISTORY: 1999-2000, A. 10374, Referred to Ways and Means;