BILL NUMBER:  S4424

 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 without- 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;
2001-2002: A.1448;
2003-2004: A.1842;
2005-2006: A.9453
2007-2008: A.421;
2009-2010: A.298;
2011-2012: A.606;
2013-2014: A.474
2015-2016: A.1628

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.