BILL NUMBER: S636
SPONSOR: GALLIVAN
 
TITLE OF BILL:
An act to amend the tax law, in relation to a sales and use tax
exemption for school buses and related items
 
PURPOSE:
This legislation would exempt from sales and use taxes the purchase of a
school bus and any parts, equipment, lubricants and.fuel used for the
exclusive purpose of transporting certain persons to or from school or
school activities.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill would amend § 1115(a) of the Tax law governing
exemptions from sales and use taxes by adding a new paragraph to author-
ize school buses and related items to be exempt from said tax.
Section 2 establishes the effective date.
 
JUSTIFICATION:
New York State currently requires pupil transportation contractors to
pay state and local sales taxes on school buses and related items. Such
a requirement inflates the cost of school transportation. Essentially,
the associated costs related to the payment of said tax is incorporated
into the pupil transportation contract between the transportation compa-
ny and the applicable school district. Exempting the aforementioned
items from the sales tax will reduce student transportation costs.
Furthermore, this bill will correct a statutory deficiency by establish-
ing parity with coach buses and transit buses, both of which have been
previously afforded sales tax exemption status.
 
LEGISLATIVE HISTORY:
2023-24: S.247 Referred to Budget and Revenue
2021-22: S.2271 Referred to Budget and Revenue
2019-20: S.1331/A.2697 Referred to Investigations and Government
Operations/Referred to Ways and Means
2017-18: S.8375/A.10932 Passed Senate/Referred to Ways and Means
 
FISCAL IMPLICATIONS:
Savings to the state.
 
EFFECTIVE DATE:
This Act shall take effect on the first day of a quarterly sales tax
period, as set forth in subdivision (b) of section 1136 of the tax law,
next succeeding April 1, 2024.

Statutes affected:
S636: 1115 tax law