Albany, NY – A new proposal before the New York State Assembly would repeal the long-standing highway use tax, a fee imposed on trucking companies for operating vehicles on public roads. Supporters say eliminating the tax would make the state more competitive and reduce costs for local transportation businesses.
Assembly Bill A00025, sponsored by Assemblymember William Magnarelli and co-sponsored by Donna Lupardo, Harry Bronson, and Pamela Hunter McMahon, seeks to repeal Article 21 of the state’s Tax Law, which authorizes the so-called “ton-mile tax.” The measure has been introduced in multiple sessions over the past two decades but has yet to become law.
The tax, originally created to fund road maintenance, requires trucking companies to calculate fees based on vehicle weight and miles driven in New York. According to the bill memo, proponents argue the tax burdens New York-based carriers while out-of-state operators often evade payment. The additional paperwork and compliance costs, lawmakers say, make the state less attractive for freight companies compared to neighboring states that rely on simpler revenue systems such as registration fees and fuel taxes.
“The highway use tax reduces the ability of New York trucking companies to compete with out-of-state companies because it places a higher cost burden on the New York-based trucking industry,” Magnarelli said in his legislative justification. “Elimination of the tax would benefit truckers, manufacturers, shippers, and consumers.”
The measure has no immediate fiscal estimate but would take effect as soon as it is signed into law. Industry groups have long advocated for repeal, calling the ton-mile tax outdated and unfairly applied.
Key Points: New York lawmakers seek to repeal state’s highway use tax on trucking industry – Albany
- Assembly Bill A00025, sponsored by William Magnarelli, would repeal the highway use tax under Article 21 of the state’s Tax Law.
- Supporters argue the “ton-mile” fee hurts New York trucking companies and raises shipping costs for businesses.
- The bill would take effect immediately upon enactment, ending decades of debate over the trucking industry levy.
