Provides for funding for the consolidated local street and highway improvement program from a percentage of online sales taxes.
Summary
Bill S02374 aims to amend the New York tax law to allocate a portion of online retail sales tax revenue to the consolidated local street and highway improvement program (CHIPS). Specifically, it proposes that 4% of the funds collected from online retail sales, including those from marketplace providers, be deposited into a local infrastructure account within the general fund. This funding is intended to support local infrastructure projects, enhancing the quality and safety of streets and highways across New York State.
Impact
If enacted, this bill would create a new funding stream for local infrastructure projects by redirecting a portion of online sales tax revenue. This amendment to the tax law would not only provide financial support for the CHIPS program but also potentially encourage local governments to prioritize infrastructure improvements. The bill is set to take effect on January 1 of the year following its passage and will expire three years after that date unless renewed.
Sentiment
The sentiment surrounding Bill S02374 appears to be generally positive, as it addresses the pressing need for infrastructure funding in local communities. However, there may be concerns regarding the sustainability of relying on online sales tax revenue, especially given the bill's temporary nature with a three-year expiration.
Contention
Notable points of contention may arise from discussions about the reliance on online sales tax as a stable funding source. Some legislators may express concerns about the volatility of online sales and whether this funding will be sufficient to meet the infrastructure needs of local governments. Additionally, there may be differing opinions on the prioritization of funding for infrastructure versus other pressing budgetary needs.
Provides for funding for the consolidated local street and highway improvement program and the COVID-19 pandemic small business recovery grant program from a percentage of online sales taxes.
Requires the department of transportation to study the regional fairness of state funding for local roadway paving purposes, including but not limited to the Consolidated Local Street and Highway Improvement Program (CHIPS), State Touring Routes program, PAVE-NY, Pave Our Potholes (POP), and other existing local roadway aid programs, and to make recommendations concerning the reinstatement of the suburban highway improvement program (SHIPS) funding program.
Requires the department of transportation to study the regional fairness of state funding for local roadway paving purposes, including but not limited to the Consolidated Local Street and Highway Improvement Program (CHIPS), State Touring Routes program, PAVE-NY, Pave Our Potholes (POP), and other existing local roadway aid programs, and to make recommendations concerning the reinstatement of the suburban highway improvement program (SHIPS) funding program.
Lowers the required service life threshold for consolidated local street and highway improvement program capital projects from ten years to five years.