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Bill

S 10385

Establishes a sales tax exemption for the purchase of electric wheelchair accessible vehicles

2025 Regular Session Introduced by Pat Fahy

New York adds a sales tax exemption for qualifying electric wheelchair accessible vehicles to reduce purchase costs for wheelchair users.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 10385

Overview

  • Bill: S 10385
  • Session: 2025-2026
  • Jurisdiction: New York
  • Purpose: Establish a sales tax exemption in the New York tax law for the purchase of qualifying electric wheelchair accessible vehicles.

Main Purpose and Intent

The bill creates a state-level sales tax exemption for purchases of qualifying electric vehicles that are specifically designed to transport persons in wheelchairs or to provide access for wheelchair users. The aim is to reduce the cost barrier for obtaining electric wheelchair accessible vehicles (EWAVs) and support mobility for individuals who rely on such vehicles.

Key Provisions and Changes

  1. New tax exemption for EWAVs (Section 1115)

    • Adds subdivision (mm) to tax law section 1115.
    • Subparagraph (mm)(1): Receipts from the sale, or consideration given/contracted for, or use of a qualifying electric vehicle are exempt from sales tax.
    • Subparagraph (mm)(2): Defines “qualifying electric vehicle” as:
      • An electric vehicle (per Public Service Law section 66-s) designed for transporting persons in wheelchairs or containing any device/alteration enabling access for wheelchair transportation.

  2. Local option coordination (Section 1210)

    • Amends tax law section 1210(a)(1) to add a new subparagraph (iii) requiring localities (cities, counties, or school districts) to include the EWAV sales tax exemption in their local sales tax laws, unless they elect otherwise.
    • Special treatment for large cities (population 1,000,000+): If such a city enacts or repeals a resolution under subdivision (p) that affects local exemptions, it is deemed to amend existing local exemptions related to this tax, with certain implications for statutory exemptions and related provisions (including references to other sections and acts).

  3. Localities’ flexibility and existing tax provisions (Section 1210, subsection (a), paragraph 4)

    • Retains and reorganizes a broad set of amendments to allow a large city to tailor local tax provisions.
    • Includes specific language about removal or modification of various exemptions and rates, while explicitly preserving the EWAV exemption (subparagraph (xviii) and included in the new exemption options).
    • The amended subsection preserves the ability of large cities to adjust multiple local tax rules, subject to certain conditions, while ensuring EWAV exemption is included unless the locality elects otherwise.

  4. Effective date (Section 4)

    • The act takes effect immediately upon enactment.

Who and What Is Affected

  • Affected taxpayers: Purchasers of qualifying electric vehicles intended to transport wheelchair users, or vehicles with devices/alterations enabling wheelchair access.
  • Affected vehicle types: Electric vehicles meeting the defined criteria for wheelchair accessibility.
  • Local governments: Cities, counties, and school districts that levy local sales taxes; they would need to implement the EWAV exemption in their local tax ordinances unless they opt out.

Procedural and Timeline Aspects

  • Introduction and referral: Introduced May 15, 2026; referred to the Senate Budget and Revenue Committee.
  • Immediate effect: If enacted, the exemption would take effect immediately per Section 4.

Practical Implications

  • Financial impact: Potential reduction in sales tax paid on qualifying EWAVs, lowering ownership costs for wheelchair users and improving access to mobility.
  • Administrative considerations: Localities are prompted to incorporate the exemption into their local tax codes; states’ and localities’ coordination ensures uniform treatment of EWAVs across jurisdictions unless opted out.
  • Scope note: The exemption applies to receipts and consideration for the sale, use, or lease of qualifying EWAVs, as defined by the act.

Compiled from official sources — confirm details with the bill’s official record.

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