Repeals provisions relating to imposition of a highway use tax for the privilege of operating any vehicular unit upon the public highways of the state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A25
SPONSOR: Magnarelli 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:
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 highways 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 tonmile 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 trucking 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.1842
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
2019-2020: A.1830
2021-2022: A.854
2023-2024: A.24
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
25
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. MAGNARELLI, LUPARDO, BRONSON, McMAHON -- read
once and referred to the Committee on Ways and Means
AN ACT to repeal article 21 of the tax law relating to the highway use
tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Article 21 of the tax law is REPEALED.
2 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00426-01-5
