BILL NUMBER: S5524
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting from sales and use
tax zero-emission school buses
 
PURPOSE:
This legislation exempts from sales and compensating use taxes zero-em-
ission school buses and parts and equipment purchased and used in their
operation.
 
SUMMARY OF PROVISIONS:
Section 1 Adds a new subdivision 11 to Section 1115 of the tax law to
exempt zero-emission school buses and parts and equipment purchased and
used in their operation.
Section 2 is the effective date.
 
JUSTIFICATION:
New York's enacted State Budget for Fiscal Year 2023 requires that all
new school bus purchases made after July 1, 2027, be zero-emission and
all school buses on the road be zero-emissions by 2035. Private trans-
portation companies that provide contract transportation are also
subject to the mandate for any vehicle that transports students.
Despite the significant environmental advantages of zero emission school
buses, the upfront purchase price has emerged as the greatest obstacle
to their widespread use. New zero emission school buses can cost two to
three times more compared to purchasing a traditional new diesel school
bus. Many private student transportation companies operating in state
simply cannot afford the upfront cost to purchase new zero emission
school buses, even with the grants and other subsidies offered.
Eliminating the sales tax on the purchase of new zero emission school
buses would provide much needed financial relief to private student
transportation contractors that are required to purchase and replace
their fleet with zero emission school buses by 2035. Eliminating the
sales tax may also help to accelerate the conversion to zero emission
school buses.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period next commencing.

Statutes affected:
S5524: 1115 tax law