NY State Senate Bill 2019-S549

Senate Bill S549

2019-2020 Legislative Session

Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to investigations and government operations
Jan 09, 2019	referred to investigations and government operations

2019-S549 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1148, Tax L; amd §89-b, St Fin L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S1052
2021-2022: S2049

2019-S549 (ACTIVE) - Summary

Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail; increases the amount to be deposited over time.

2019-S549 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S549

SPONSOR: AKSHAR
 
TITLE OF BILL:  An act to amend the tax law and the state finance law,
in relation to providing for the deposit into the dedicated highway and
bridge trust fund of a portion of the sales tax revenue from the sale of
motor fuel

 
PURPOSE:

The purpose of this bill is to dedicate a portion of funds brought in
through sales tax revenue on gasoline and place them in the Dedicated
Highway and Bridge Trust Fund.

 
SUMMARY OF PROVISIONS:

Section 1. Amends Section 1148 of the Tax Law, to read that one cent of
the taxes collected or received by the Commissioner under Section 1148
for the retail sale of each gallon of motor fuel shall be deposited in
the Dedicated Highway and Bridge Trust Fund.

Section 2. Section 4. Allows for an increase in the amount of dedication
to the Highway and Bridge Trust Fund at a rate of $0.01/year as set by
the effective dates in Section 6.

Section 5 and 6. This section allows for sales tax revenue from gasoline
to be directed to the Highway and Bridge Trust Fund.

Section 7. Sets the effective date for the act as April 1, 2019,
provided that § 2 of the act takes effect on April 1, 2020 § 3 of the
act takes effect on April 1, 2021, § 4 of the act takes effect on April
1, 2022.

 
JUSTIFICATION:

In 2007, the New York State Department of Transportation released a
20-year transportation capital needs analysis. The report showed a
transportation system in decline. In October 2009, the New York State
Department of Transportation proposed a $25.8 billion five-year capital
plan that would merely hold conditions steady. Based on available money,
research estimates a funding gap of $8 billion over the 5 years.

There is currently a state sales tax on motor fuels that generates $413
million annually, none of which is dedicated to transportation.  The
dedication of $0.01/gallon, increasing $0.01/year for 4 years, would
create $51 million for highway and bridge use in 2016 and would dedicate
a total of $516 million for highway and bridge use by the end of 2019.
Every year thereafter, based on the same usage, there would be an
expected dedication of $206 million/year. This bill does not increase
sales tax on gasoline.

 
LEGISLATIVE HISTORY

2018: S1052 - Referred to Investigations and Government Operations
2017: S1052 - Referred to Investigations and Government Operations
2014: A8876 -Held for consideration in Ways and Means and S1350 Investi-
gation and Government Operations

 
FISCAL IMPLICATIONS:
None.

 
EFFECTIVE DATE:
This act shall take effect on April 1, 2019, with provisions.

2019-S549 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    549
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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 and the state finance law,  in  relation  to
   providing  for the deposit into the dedicated highway and bridge trust
   fund of a portion of the sales tax revenue from the sale of motor fuel
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1148 of the tax law, as amended by section 57 of
 part HH of chapter 57 of the  laws  of  2013,  is  amended  to  read  as
 follows:
   § 1148. Deposit and disposition of revenue. [All] (A) EXCEPT AS OTHER-
 WISE  PROVIDED  IN  SUBDIVISION (B) OF THIS SECTION, ALL taxes, interest
 and penalties collected or received by the commissioner under this arti-
 cle shall be deposited and disposed of pursuant  to  the  provisions  of
 section one hundred seventy-one-a of this chapter; provided however, the
 comptroller  shall  on  or before the twelfth day of each month, pay all
 such taxes, interest and penalties  collected  under  this  article  and
 remaining  to  the comptroller's credit in such banks, banking houses or
 trust companies at the close of business on the last day of the  preced-
 ing month, into the general fund of the state treasury, except as other-
 wise  provided  in sections ninety-two-d, ninety-two-h, and ninety-two-r
 of the state finance law and sections eleven hundred two, eleven hundred
 four and eleven hundred nine of this article.
   (B) ONE CENT OF THE TAXES COLLECTED OR RECEIVED  BY  THE  COMMISSIONER
 UNDER  THIS  ARTICLE  FOR  THE  RETAIL SALE OF EACH GALLON OF MOTOR FUEL
 SHALL BE DEPOSITED IN THE SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT
 OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED  BY  SECTION
 EIGHTY-NINE-B OF THE STATE FINANCE LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05133-01-9

 S. 549                              2
 
   §  2.  Subdivision  (b)  of  section  1148 of the tax law, as added by
 section one of this act, is amended to read as follows:
   (b)  [One  cent]  TWO  CENTS of the taxes collected or received by the
 commissioner under this article for the retail sale of  each  gallon  of
 motor  fuel  shall  be  deposited  in the special obligation reserve and
 payment account of the dedicated highway and bridge trust  fund,  estab-
 lished by section eighty-nine-b of the state finance law.
   §  3.  Subdivision  (b)  of section 1148 of the tax law, as amended by
 section two of this act, is amended to read as follows:
   (b) [Two] THREE cents of  the  taxes  collected  or  received  by  the
 commissioner  under  this  article for the retail sale of each gallon of
 motor fuel shall be deposited in  the  special  obligation  reserve  and
 payment  account  of the dedicated highway and bridge trust fund, estab-
 lished by section eighty-nine-b of the state finance law.
   § 4. Subdivision (b) of section 1148 of the tax  law,  as  amended  by
 section three of this act, is amended to read as follows:
   (b)  [Three]  FOUR  cents  of  the  taxes collected or received by the
 commissioner under this article for the retail sale of  each  gallon  of
 motor  fuel  shall  be  deposited  in the special obligation reserve and
 payment account of the dedicated highway and bridge trust  fund,  estab-
 lished by section eighty-nine-b of the state finance law.
   §  5.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
 finance law, as amended by section 7 of part UU of  chapter  59  of  the
 laws of 2018, is amended to read as follows:
   (a)  The  special obligation reserve and payment account shall consist
 (i) of all moneys required to be deposited in the dedicated highway  and
 bridge  trust  fund  pursuant  to the provisions of sections two hundred
 five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
 fifteen,  ELEVEN  HUNDRED  FORTY-EIGHT and eleven hundred sixty-seven of
 the tax law, section four hundred one of the vehicle  and  traffic  law,
 and  section  thirty-one  of  chapter  fifty-six of the laws of nineteen
 hundred ninety-three, (ii) all fees, fines or penalties collected by the
 commissioner of transportation and the commissioner  of  motor  vehicles
 pursuant to section fifty-two, section three hundred twenty-six, section
 eighty-eight  of  the  highway law, subdivision fifteen of section three
 hundred eighty-five of the vehicle and traffic law, section two of [the]
 PART U1 OF chapter SIXTY-TWO of the laws of  two  thousand  three  [that
 amended  this  paragraph],  subdivision  (d)  of  section  three hundred
 four-a, paragraph one of subdivision (a) and subdivision (d) of  section
 three  hundred  five,  subdivision six-a of section four hundred fifteen
 and subdivision (g) of section twenty-one  hundred  twenty-five  of  the
 vehicle  and  traffic  law,  section  fifteen of this chapter, excepting
 moneys deposited with the state  on  account  of  betterments  performed
 pursuant  to  subdivision  twenty-seven  or  subdivision  thirty-five of
 section ten of the highway law, and section one  hundred  forty-five  of
 the  transportation law, (iii) any moneys collected by the department of
 transportation for services provided pursuant to agreements entered into
 in accordance with section ninety-nine-r of the general  municipal  law,
 and  (iv) any other moneys collected therefor or credited or transferred
 thereto from any other fund, account or source.
   § 6. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
 finance  law,  as  amended  by section 8 of part UU of chapter 59 of the
 laws of 2018, is amended to read as follows:
   (a) The special obligation reserve and payment account  shall  consist
 (i)  of all moneys required to be deposited in the dedicated highway and
 bridge trust fund pursuant to the provisions  of  sections  two  hundred

 S. 549                              3
 
 eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
 FORTY-EIGHT  and eleven hundred sixty-seven of the tax law, section four
 hundred one of the vehicle and traffic law, and  section  thirty-one  of
 chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
 fees, fines or penalties collected by the commissioner of transportation
 and  the  commissioner  of motor vehicles pursuant to section fifty-two,
 section three hundred twenty-six, section eighty-eight  of  the  highway
 law,  subdivision  fifteen  of  section three hundred eighty-five of the
 vehicle and traffic law, section  fifteen  of  this  chapter,  excepting
 moneys  deposited  with  the  state  on account of betterments performed
 pursuant to  subdivision  twenty-seven  or  subdivision  thirty-five  of
 section  ten  of  the highway law, and section one hundred forty-five of
 the transportation law, (iii) any moneys collected by the department  of
 transportation for services provided pursuant to agreements entered into
 in  accordance  with section ninety-nine-r of the general municipal law,
 and (iv) any other moneys collected therefor or credited or  transferred
 thereto from any other fund, account or source.
   § 7. This act shall take effect April 1, 2019, provided, that:
   (a) section two of this act shall take effect April 1, 2020;
   (b) section three of this act shall take effect April 1, 2021;
   (c) section four of this act shall take effect April 1, 2022; and
   (d)  the  amendments to paragraph (a) of subdivision 3 of section 89-b
 of the state finance law, made by section five of  this  act,  shall  be
 subject  to  the  expiration and reversion of such paragraph pursuant to
 section 13 of part U1 of chapter 62 of the laws  of  2003,  as  amended,
 when upon such date the provisions of section six of this act shall take
 effect.

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