Bill > A04823

This bill amends the New York State tax law to create new sales and use tax exemptions for motor vehicles and railroad rolling stock. Specifically, the bill exempts motor vehicles (as defined in state law), their parts, and maintenance services from sales and use taxes. Similarly, it exempts railroad rolling stock, including parts and structural components like rails, bridges, crossing arms, and traffic signals, along with their maintenance services from sales and use taxes. These exemptions apply to vehicles and equipment purchased or leased by businesses engaged in intrastate or interstate commerce. The bill modifies several sections of the tax law to implement these exemptions and ensures that the new tax breaks will apply to retail sales and uses occurring on and after January 1, 2026, with the act taking effect on December 1, 2025. The exemptions will apply across state and local tax jurisdictions, potentially providing significant tax relief for transportation and railroad businesses operating in New York State.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4823