BILL NUMBER: S9440

SPONSOR: COONEY
 
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:ò 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 high-
ways 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 rucking businesses. The tax also increases the cost of
shipping and the cost of doing business in New York State. The elimi-
nation of the tax would benefit truckers, manufacturers, shippers and
consumers.

 
LEGISLATIVE HISTORY:

1999-2000: A.10374

2001-2002: A.1448

2003-2004: A.1.842

2005-2006: A.9453

2007-2008: A.421

2009-2010: A.298

2011-2012: A.606

2013-2014: A.474

2015-2016: A.1628

2017-2018: A.1601

2019-2.020: A.1830

2021-2022: A.854

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.