New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 534 - Refunds And Credits › Section 534.4 - Refunds and credits for omnibus carriers engaged in local transit service

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 1119(b)
(a)
Definitions.
(1)
Omnibus carrier.
For
				  purposes of this section, an
omnibus carrier
is a carrier that
				  provides local transit service in this State and that operates pursuant to a
				  certificate of public convenience and necessity issued by the Commissioner of
				  Transportation of this State or by a like officer or agency of the United
				  States or pursuant to a contract, franchise, or consent between the carrier and
				  a city in this State having a population of more than one million inhabitants,
				  or any agency of such city.
(2)
Omnibus.
For purposes of this section, an
omnibus
is a motor vehicle with a seating capacity of more
				  than seven passengers used for the transportation of passengers for hire. Such
				  term does not include a taxicab.
(3)
Local transit service.
For the purposes of this section,
local transit service
means
				  a mass transit service (as distinguished from a charter, contract, school bus,
				  sight-seeing or other service) provided by an omnibus carrier in which
				  passengers are carried by omnibuses from one point in this State to another
				  point in this State and in performance of which the omnibuses either:
(i) regularly pick up or discharge passengers
				  at their convenience or at bus stops on the street or highway, as distinguished
				  from buildings or facilities used for bus terminals or stations; or
(ii) pick up and discharge passengers at bus
				  terminals or stations, the distance between which is not more than 75 miles,
				  measured along the route traveled by the bus.
Example 1:
Buses of the X Company operate, pursuant to a certificate
					 of convenience and necessity from the Commissioner of Transportation, from a
					 terminal in the city of A to a station in the city of B, proceed to a station
					 in the city of C and continue to a terminal in the city of D. All of the cities
					 and all of the mileage are within the State of New York. The distance along the
					 route traveled from A to B is 80 miles, from B to C is 80 miles and from C to D
					 is 60 miles. Between A and B these buses pick up and discharge passengers at
					 stops along the highway, but they do not do this between B and C and C and D.
					 Between A and B and C and D these buses are operated in local transit service,
					 but not between B and C.
Example 2:
Buses of the Y Company operate from a terminal in A, a city
					 within the State of New York, to a terminal in B, a city outside the State of
					 New York. Between the terminal in A and the State boundary, the buses do not
					 pick up or discharge any passengers. These buses are not being operated in
					 local transit service because they are not carrying passengers from one point
					 in this State to another point in this State.
Example 3:
Buses of the Z Company operate from a terminal in A to a
					 station in B and proceed to a terminal in C. Cities A and C are in New York
					 State and city B is outside of New York State. The distance between each of the
					 cities along the route traveled is 20 miles. The company carries passengers
					 from city A to cities B and C. The buses will be considered as operating in
					 local transit service since the total distance between points A and C is less
					 than 75 miles, even though the distance from A to C includes some mileage
					 outside of the State.
Example 4:
Assume the facts in example 3, except that the distance
					 between each of the cities is 40 miles. The buses will not be considered as
					 operating in local transit service, since the total distance between points A
					 and C is greater than 75 miles. The fact that the company carries passengers
					 from city A to city B, a distance of 40 miles does not qualify such carriage as
					 a local transit service because it is not between two points within the State
					 of New York.
(4)
Vehicle mileage.
Vehicle mileage
means the
				  number of miles run by all omnibuses operated by a carrier in the performance
				  of local transit service plus the number of idle miles run to the point at
				  which service begins and from the point at which such service terminates. Such
				  mileage includes only miles operated within New York State.
(5)
Total mileage operated.
Total mileage operated
includes the vehicle mileage computed
				  in paragraph (4) of this subdivision, plus the number of miles operated in
				  charter service, school contract service, other contract service, excursion
				  service, sight-seeing service, and all other passenger service which is not
				  included within the meaning of vehicle mileage. Such mileage includes only
				  miles operated within New York State.
(6) Local transit service percentage.
(i) The
local transit service
				  percentage
is the proportion that the carrier's vehicle mileage
				  operated in local transit service, as defined in paragraph (4) of this
				  subdivision, bears to the carrier's total mileage operated in this State, as
				  defined in paragraph (5) of this subdivision, for the calendar year immediately
				  preceding the end of the quarterly return period to which such refund or credit
				  relates.
(ii) Special computation
				  for the first four quarterly returns of an omnibus carrier not engaged in local
				  transit service in the preceding calendar year. Such a carrier shall compute
				  the local transit service percentage by determining the proportion that the
				  vehicle mileage operated in local transit service in this State in the first
				  three months of operation bears to the total mileage operated in this State in
				  such period.
Example 5:
Under the facts of Example 3 set forth in paragraph (3) of
					 this subdivision, omnibus carrier Z operates its buses for 65,000 miles. Of
					 this number of miles, 17,500 miles are between the terminal in city A and the
					 station in city B, of which 1,000 miles are operated outside of New York State.
					 17,500 miles are operated between the station in city B and the terminal in
					 city C, of which 4,000 miles are operated outside of the State. 15,000 miles
					 are operated in school bus contract service in New York State and 15,000 miles
					 are operated in charter service in New York State. Vehicle mileage consists of
					 30,000 miles which is composed of the 16,500 miles traveled in New York State
					 between cities A and B and the 13,500 miles traveled in New York State between
					 cities B and C. Total mileage consists of 60,000 miles which is all of the
					 miles operated except the 5,000 miles operated out of the State. The local
					 transit service percentage is 50 percent (the percentage that 30,000 miles
					 bears to 60,000 miles).