SFY 2009-10 Executive Budget Revenue Actions
December 29, 2008
Governor Paterson's proposed SFY 2009-10 Executive Budget contains tax increases and construction spending reductions which may be of interest to you. The Business Council's Transportation Committee has identified the following budget proposals as problematic for businesses.
SFY 2009-10 Executive Budget
The Executive Budget raises $4.2 billion in new taxes. The following list is of transportation specific tax increases.
- Impose a state sales tax on taxis, limousines, buses and other transportation services. ($45-60 million)
- Eliminate the state sales tax cap of eight cents per gallon on fuel. ($90-120 million)
- Raise auto rental taxes from 5 percent to 6 percent. ($8-10 million)
- Raise motor vehicle registration fees for distinctive license plates by 25 percent and vehicle registration fees from $44 to $55. ($60.5-104 million)
- Raise original and renewal driver license fees by 25 percent. ($22-38 million)
- Raise license plate fees from $15 to $25. ($129 million)
- Raise surcharge on auto insurance policies from $5 to $10. ($49-65 million)
- Raise highway use tax renewal fee for a replacement registration certificate from $4 to $15 for a motor vehicle and $2 to $15 for a trailer, semi-trailer, dolly or other drawn device. ($5 million)
Reduced Construction Funding
- Reduced annual construction funding on state-owned roads and bridges from $1.9 billion to $1.6 billion.
- Reduced rail funding from $42 million to $32 million and aviation funding from $24 to $4 million.
- Reduced capital funding for highway and bridge projects under the Consolidated Highway Improvement Program (CHIPS) from $310 million to $251 million.