Amd §1148, Tax L; amd §89-b, rpld §89-b sub 3 ¶(a), St Fin L
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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6431
SPONSOR: Palmesano (MS) 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;
and to repeal certain provisions of the state finance law relating ther-
eto
PURPOSE OR GENERAL IDEA OF BILL:
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
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, 2016,
provided that § 2 of the act takes effect on April 1, 2017 § 3 of the
act takes effect on April 1, 2018, § 4 of the act takes effect on April
1, 2019.
JUSTIFICATION:
In 2007, the New York State Department of Transportation released a•20
year transportation capital needs analysis. The report showed a trans-
portation system in decline. In October 2009, the New York State Depart-
ment 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 S516 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.
PRIOR LEGISLATIVE HISTORY:
A.5089 of 2023-24 - held for consideration in Ways and Means
A.4944 of 2021 - held for consideration in Ways and Means
A.3699 of 2019-2020 - held for consideration in Ways and Means
A.3871 of 2017-2018, Held for consideration in ways and means
A.4369 of 2015-2016, Held for consideration in ways and means
A.8876 of 2014, Held for consideration in ways and means
S.1350 of 2014, Referred to investigation and Government Operations
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
none to the state.
EFFECTIVE DATE:
This act shall take effect on April 1, 2025, with provisions.
