Agency Activities

Board Members

Calendar

Directory

Home

Industry News

Legislation

Links

Membership

Security

Supporting Points You Should Use when
Communicating with your Local Legislator

Regarding the Sales Tax Exemption

Regarding the Removal of the RFP Sunset Provision

Supporting Arguments for Passage of the Tax Exemption Bill for New School Buses and Related Parts - and for Fuel Used for School Buses (S-02523, A9621)

• School bus operators have been hit with enormous cost increases in recent years in the areas of fuel, new buses and insurance but are limited in contract extensions to increases in the CPI only which have been far below actual cost increases. Fuel costs will go up significantly again with the mandatory use of ultra low sulfur Diesel fuel after January 1, 2007.
• These cost increases have resulted in many contractors being unable to extend existing contracts which has resulted in districts being required to issue new bids or RFP's. In every case, the new contracts resulted in significant increases in transportation costs to the districts. Exemption from sales tax would ease the financial pressure on contractors and allow them to extend contracts within the limits of the CPI this saving school districts transportation costs.
• Legislative mandates for new school buses including pollution control devices, fire suppressant equipment and child restraining devices will increase the cost of a new school bus by 15 to 20% over the next several years.
• The State suffers a very small net loss by exempting school buses from sales tax because the cost of that tax is included in the bid or proposal price submitted to a school district by a contractor so it becomes part of that district's transportation costs that are requested from the State.
• New Jersey, New Hampshire and a number of other states exempt new school buses and related parts from state sales tax.
• In New York, new coaches are exempted from sales tax. There is no Federal tax on fuel used for school buses.
• Exempting school bus contractors from sales tax would level the playing field between contractor operated buses and those run by districts. It should be noted that more than half of all pupil transportation in New York is now provided by contractor owned buses.
  

Supporting Arguments for Repealing the Sunset Profision of the RFP Law(A-9511)

• The RFP provision of the Education Law has been in place for nine years and has worked as predicted by helping to eliminate the unqualified or marginal school bus contractors.
• The RFP provision is no longer experimental but is now used by dozens of school districts all over the State.
• It has the support of the New York Association for Pupil Transportation and the State Education Department. Consequently, the sunset provision is not needed and could actually eliminate the very popular RFP provision in the future if not eliminated
  

© 2008 New York School Bus Contractors Association
677 Broadway, 9th Floor, Albany, NY 12207 ~ Phone: (877) 699-7222 ~Fax: (518) 220-9906
E-Mail info@nysbca.com