Friday, 10 May 2013 00:00
Senator Charles J. Fuschillo, Jr. recently announced that he is cosponsoring legislation to protect military servicemen and women from double taxation when they return home from service. The legislation would exempt veterans from a state law, which requires them to pay New York State sales tax on a vehicle purchased out of state during their service, even if they paid sales tax on it already.
“One of the first things a veteran sees when returning home to New York should not be an enormous bill to pay sales tax on a vehicle they already paid sales tax on once before. Eliminating this duplicative tax for veterans will help further ease their transition from military to civilian life and is another way to show our appreciation for their service to our nation,” said Senator Fuschillo.
Many New Yorkers keep their residency and driver’s licenses here while they are serving in the military because they intend to return when they are discharged. Because they maintain their New York residency, they are subjected to a law, which requires residents who purchase a vehicle outside the state to pay sales and use tax to the State of New York upon registering the vehicle in New York.
As a result, New York veterans who purchased a vehicle and paid sales tax on it while stationed in another state during their service must pay sales tax again when they return to New York. This requirement costs veterans hundreds or even thousands of dollars in added expenses when they return home.
The legislation Senator Fuschillo is cosponsoring (S4170) would exempt veterans who purchased a vehicle in another state while on active military service and paid sales tax on that vehicle from having to pay sales tax again when registering the vehicle in New York.