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Senate approves substitute to restore taxi fare sales-tax exemption, sponsor says fiscal impact much smaller than earlier estimate
Summary
First substitute Senate Bill 50, which would reinstate a sales-tax exemption for taxi fares to ease costs for seniors, disabled riders and low-income residents, passed the Senate'floor advancement vote after the sponsor said a substitute changed the fiscal note from about $500,000 to roughly $134,000 in lost revenue.
Senator Stewart introduced the first substitute to Senate Bill 50, arguing lawmakers previously removed a taxi fare exemption in an effort to broaden tax bases, but that the burden fell disproportionately on elderly, disabled and low'income riders. "About 75% of the people that use taxi service in this state are elderly and handicapped people and people of low means," the sponsor said, and the substitute would restore the exemption to reduce that burden.
The sponsor said the substitute altered the fiscal note substantially: the version in senators' folders showed a fiscal impact around $500,000, but the first substitute reduced that to approximately $134,000 in the first year. Senators and staff noted the fiscal note was missing from some folders on the floor; staff located the substitute and confirmed the lower estimate. Supporters, including a senator who said he had been a taxi driver, stressed the exemption helps vulnerable riders and reduces administrative burdens on drivers who must collect sales tax.
The Senate called the question and the roll call showed 22 ayes, 5 nays and 2 absent, advancing the substitute bill to the bottom of the third'reading calendar. The sponsor said even if the bill passes the Senate, it will still require consideration in the House and prioritization at the end of the session.
