Regulations

New York Limo Operators Gain First Win In Sales Tax Fight

Posted on December 11, 2013

Former New York Gov. George Pataki, Gov. Andrew Cuomo and former state Comptroller Carl McCall pose at Manhattanville College in Purchase, N.Y., on Oct. 2 upon the establishment of the new Tax Relief Commission. (AP Photo/Jim Fitzgerald)
Former New York Gov. George Pataki, Gov. Andrew Cuomo and former state Comptroller Carl McCall pose at Manhattanville College in Purchase, N.Y., on Oct. 2 upon the establishment of the new Tax Relief Commission. (AP Photo/Jim Fitzgerald)

NEW YORK — Limousine operators this week won a major first step in the fight to overturn a 2009 sales tax on transportation services. In its final report released this week, a Special Tax Relief Commission, formed by Gov. Andrew Cuomo, recommended elimination of all nuisance taxes.

“It appears that our emails, letters and petitions directed to the commission got their attention,” said David Bastian, a member of the Limousine, Bus & Taxi Operators of Upstate New York (LBTONY). “It was the combined efforts of our industry, small business groups, chambers of commerce, and state associations that support the repeal of this nuisance tax,” he added.

In its report to the governor, the commission stated “one of the greatest challenges facing state policy makers is to change the perception to simplify the structure of New York’s tax system by eliminating nuisance taxes.”

The report is viewed as a guide to sway the governor and the legislature to enact major tax reform measures during upcoming 2014 budget discussions.

Bastian said previously that every limousine association in New York worked together in a unified front to fight the tax, in addition to joining forces with other statewide pro-business organizations and associations that wanted the tax repealed.

Although the commission’s recommendation to kill the tax is significant, Bastian urged association members and supporters to keep up the pressure on state government during budget discussions.

LCT background article: Petition Seeks To Overturn New York Transportation Sales Tax

— Tom Halligan, LCT East Coast Editor

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