The newest New York state budget, approved late last week, exempts buses from its “transportation services tax” provision.

New York Gov. David Paterson’s budget, approved with “revenue bills” including the “transportation services tax,” had originally listed motorcoaches in its list of vehicles to which the tax would apply. Exemption of motorcoaches in the final bill is the function of recognition by state lawmakers that motorcoaches are critical to mobility.

“ABA thanks New York state legislative leaders for their willingness to listen to our perspective, and they deserve to be commended for recognizing that motorcoaches are part of the solution to revitalizing tourism in the state – as well as an answer to mitigating congestion, saving energy, and promoting green travel,” said American Bus Association (ABA) President/CEO Peter J. Pantuso, CTIS. “By exempting coaches from its ‘transportation services tax,’ New York has become as a model for other states.”

The exemption of motorcoaches from the tax is the result of work by several State Senators and Assembly Members, as well as New York-based operators and tourism and travel partners working with ABA. State Senate Finance Committee Chairman Carl Kruger, Commerce & Economic Development Committee Chairman William Stachowski and Transportation Committee Chairman Martin Dilan joined Assembly Ways & Means Committee Chairman Denny Farell and Economic Development Committee Chairman Robin Schimminger in opposing the motorcoach tax proposal from becoming part of the state budget.

ABA spent more than a year to elevate awareness among lawmakers of the important role the motorcoach, tour and travel industries play in contributing to New York tourism revenue.