NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4645
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the tax law, in relation to exempting low-emission and
energy efficient vehicles from retail sales and compensating use taxes;
and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
This bill provides an incentive in the State of New York for individuals
and co entities to purchase vehicles identified by the United States
Environmental Protection Agency as clean and energy efficient.
SUMMARY OF SPECIFIC PROVISIONS:
This Legislation amend the tax Law to exempt receipts from the retail
sale or use of low-emission and vehicles from sales and compensating use
taxes imposed in or by the State of New York.
JUSTIFICATION:
This bill provides an incentive for residents of NYS to purchase clean-
er, more efficient vehicles. This bill would encourage individuals and
commercial entities to purchase hybrid vehicles by making them exempt
from 4% sales and compensating use taxes set forth by the state. About
33% of U.S carbon dioxide emissions come from the burning of gasoline in
internal-combustion engines of cars and light trucks. For each gallon of
gas a vehicle consumes, 19.6 pounds of carbon dioxide are emitted into
the air. This exemption would be in place for five years. This legis-
lation would be a great step in achieving better air quality in New York
State as well as a reduction in the use of gasoline because hybrid vehi-
cles get better mileage per gallon of gasoline.
PRIOR LEGISLATIVE HISTORY:
2021-2022 A1723 referred to ways & means
2019-2020 A2630 referred to ways & means
2017/2018 A1790 referred to ways and means
2013: A3846-13 amended and recommitted to ways and means
2012: A2539 referred to ways and means
2010: A4022-A amended and recommit to ways and means
2008: A10447 referred to ways and means
01/07/15 referred to insurance
01/06/16 referred to insurance
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This bill is estimated to reduce state and local sales tax revenues by
approximately $27.8 million. The State portion of this loss would be
approximately $13.1 million. This loss will be offset by proceeds
collected from the auction of any emissions allowances for air contam-
inants pursuant to article nineteen of the environmental conservation
law and proceeds collected but not allowed by the New York State Energy
Research and
EFFECTIVE DATE:
This act shall take effect on the first day of the sales tax quarter
that begins at least ninety days after the day on which it shall have
become a law and shall expire and be deemed repealed December 31, 2020.
STATE OF NEW YORK
________________________________________________________________________
4645
2023-2024 Regular Sessions
IN ASSEMBLY
February 21, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to exempting low-emission and
energy efficient vehicles from retail sales and compensating use
taxes; and providing for the repeal of such provisions upon expiration
thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1115 of the tax law is amended
2 by adding a new paragraph 47 to read as follows:
3 (47) Low-emission and energy efficient vehicles. For purposes of this
4 paragraph, a "low-emission and energy efficient vehicle" shall mean a
5 vehicle certified by the administrator of the United States environ-
6 mental protection agency pursuant to 23 U.S.C. § 166(f)(3). If the
7 administrator of the United States environmental protection agency has
8 not so certified any vehicle as a low-emission and energy efficient
9 vehicle, then, until such certification occurs, "low-emission and energy
10 efficient vehicle" shall mean any vehicle that has achieved an air
11 pollution score of nine or better and a greenhouse gas score of nine or
12 better on the green vehicle guide maintained by the United States envi-
13 ronmental protection agency. The department shall post on its web site a
14 list of low-emission and energy efficient vehicles by make and model
15 year and such other specifications as may be necessary to identify a
16 low-emission and energy efficient vehicle, and shall update such list as
17 necessary to provide a complete list of low-emission and energy effi-
18 cient vehicles. The exemptions provided by this section shall be offset
19 by the proceeds collected from the auction of any emissions allowances
20 for air contaminants as provided for in regulations adopted by the
21 department of environmental conservation pursuant to article nineteen of
22 the environmental conservation law and proceeds collected but not allo-
23 cated by the New York state energy research and development authority
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06477-01-3
A. 4645 2
1 from the auction, pursuant to regulations of such authority, of emission
2 allowances allocated by the department of environmental conservation to
3 such authority pursuant to regulations adopted by such department. The
4 offset shall not exceed twenty-seven million dollars.
5 § 2. This act shall take effect on the first day of the sales tax
6 quarter that begins at least ninety days after the day on which it shall
7 have become a law and shall expire and be deemed repealed December 31,
8 2026.
