As a dealer in New York, I want to point out an underlying reason why the State Assembly adjourned without acting to amend the outdated vicarious liability laws. The reason is sales tax revenue.
For every vehicle purchased (as opposed to leased), New York increases its sales tax revenue. The state tax of 4.25 percent is collected on the total sale amount of a purchase and is nearly double the amount of tax collected on a lease. What incentive does this state have to change the law? None.
The state needs the money and, therefore, wants leases to end.
Also, New York requires dealers to use a form called an MV-50 when selling a vehicle. Before July 1, those forms were $1 each. Now they are $5 each.
New York has added its $2.50-per-tire recycling charge to new-car tires - that is $10 per new vehicle retailed. So, adding it all up, it means more revenue to the state, higher payments for consumers and increased costs to dealers.
All in all, it's a sad commentary on the state of a state struggling to find revenue in a declining business environment. When in doubt, put the load on the revenue producers instead of reducing government costs.
Only so much money can be extracted from so many people. New York should encourage leasing and reduce the costs of doing business for business owners. We then would produce the revenue the state needs through increased sales and job creation. What happened to a consumer-friendly and business-friendly government?