Bill > S00636

This bill amends the New York State tax law to create a sales and use tax exemption for school buses and related items. Specifically, the bill adds a new paragraph to section 1115 of the tax law that exempts school buses, as defined in section 142 of the vehicle and traffic law, from sales and use taxes. The exemption also covers parts, equipment, lubricants, and fuel purchased and used in the operation of these school buses. This means that schools, school districts, and potentially other entities purchasing school buses will no longer have to pay sales tax on the vehicles or their associated operational expenses. The bill is set to take effect on the first day of a quarterly sales tax period following April 1, 2026, giving administrators and tax authorities time to prepare for the new exemption. The goal appears to be reducing the financial burden on schools by lowering the cost of purchasing and maintaining school transportation.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S636