Regulations

NY Operators To Pursue Sales Tax Repeal

Posted on November 11, 2011

LBOA President Sergio Sanchez told members Monday that there are a lot of positive things happening with business picking up, but operators still face the challenge of getting the NY sales tax repealed.
LBOA President Sergio Sanchez told members Monday that there are a lot of positive things happening with business picking up, but operators still face the challenge of getting the NY sales tax repealed.

NEW YORK — Limousine operators in New York must contend with an 8.75% tax on chauffeured service sales, spurring calls for new legislation to reverse it.

The effort is priority one for the Luxury Base Operators Association, the leading industry association representing operators in New York City. During a LBOA meeting Monday at the Limousine Digest Show in Atlantic City, N.J., president Sergio Sanchez told members once the state of New York realized the revenue loss from a proposed repeal, an earlier sales tax repeal measure did not go forward in the state legislature.

LBOA now is working to get multiple legislative sponsors, particularly among Democrats, for a new bill to go forward. Republicans so far have been more receptive to it, but they are far outnumbered by Democrats 109-42 in the New York State Assembly while Republicans have an ultra-thin operational majority in the State Senate. Sanchez urged members to meet with representatives and contact them for their support to repeal the tax.

During a Limousine Associations of New Jersey meeting the following morning, LBOA and LANJ general counsel Matt Daus said New York operators clearly were being overtaxed, and that the sales tax applies to some ground transportation sectors and not to others. Daus told LCT afterward that he is working with New York State Sen. Martin J. Golden (R) in introducing a sales tax measure repeal.

LBOA eventually hopes to emulate the legislative success of LANJ in getting the New Jersey legislature to repeal the 7% sales tax on limousine service in that state. But that bill is languishing on the desk of Gov. Chris Christie due to political maneuvering unrelated to the sales tax bill.

“We’re going to take a page out of the LANJ playbook,” Daus told New Jersey operators Tuesday morning.

Meanwhile, operators must contend with some of the highest ground transportation taxes in the U.S. The sales taxes in New York and New Jersey only apply to point-to-point (intrastate) transportation within each respective state, and not to interstate chauffeured runs that cross state lines between New York and New Jersey.

— Martin Romjue, LCT editor

View comments or post a comment on this story. (0 Comments)

More News

Florida Operator Explains How Uber, Lyft Get Free Ride

“What they are doing is undercutting everybody on pricing and therefore knocking us out of business."

Proposed Law Would Dismantle Nevada’s Limo Cartel

Commentary: Uber was able to get a bill passed that exempted TNCs from competitor vetoes, but other companies were left in the dust.

Uber, Lyft Now Regulated Under Michigan Law

Before, the TNCs did not have to pay state application and registration fees taxi and limo companies had to pay.

Judge Approves Big Settlement For Lyft Drivers

A $12.25 million settlement offer had previously been rejected because it "short-changed" independent contractors.

Most Consumers Say TNCs Should Ride By The Rules

A National Limousine Association commissioned Harris Poll shows strong public support for stricter TNC business practices.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close