Legislative Activity

Legislative Alerts & Updates

Through the strength of collective action PSBA has been able to accomplish great things for school bus safety and the school bus industry. We encourage Pennsylvania school bus contractors to get involved, voice their oppinions, and make a positive impact on their industry.

PSBA Accomplishments

PSBA helped pass legislation to exempt school buses, parts, and accessories from sales tax.

PSBA helped with the passage of the railroad crossing bill mandating that school buses must stop at railroad crossings.

PSBA surpassed federal requirements making Pennsylvania one of the first states in the nation to require side stop arms on school buses.

PSBA took the lead role in passing legislation that allows third party testers to continue CDL testing in Pennsylvania.

PSBA was at the forefront in working with lawmakers to require criminal history checks of school bus drivers.

PSBA was successful in implementing school bus vehicle license tags saving contractors 100's of dollars in registration fees.

PSBA was successful in negotiating a compromise on 4-year retesting that was favorable to the school transportation industry.

PSBA worked with PennDOT's Medical Advisory Board to establish the criteria for medical waivers for cardiovascular and hyperglycemic drivers.

PSBA's brochure "Think About School Bus Safety?" was the 1991 recipient of the governor's Highway Safety Award in Safety Education.

PSBA was successful in reducing the minimum amount of time a licensee must hold a permit to 15 days.

Proposed Sales and Use Tax Expansion

POSITION STATEMENT

Proposed Sales and Use Tax Expansion

Background:

Pennsylvania currently has a six percent sales and use tax that is placed on specific goods and services that are purchase or utilized with the state. Governor Rendell recently proposed reducing the sales tax rate from six percent to four percent while expanding the sales and use tax base by eliminating seventy-four tax exemptions for goods and services. The Governor's proposal would eliminate the tax exemption for "school buses" as one of the 74 exemptions.

Current Status for School Buses:

School buses are currently tax exempt for sales and parts comprising a school bus.

Reasons to Oppose:

The sales and use tax expansion will further burden the school bus industry with additional taxes and make Pennsylvania less competitive.

The expansion of the sales and use tax will increase the cost of doing business in Pennsylvania with additional taxes on:

º School Buses (average costs of $80,000) and related parts

º Services – Accounting/Administrative/Consulting/Legal

º Advertising/Public Relations

º Professional & Technical Services

º Custom programming

º Electrical, plumbing, heating & AC Service Fees

º Financial Institution Fees

º Parking lots & garages

º Services to Buildings & Dwellings

º Transit & Ground Transportation

º Truck Transportation

º Waste management & remediation services

º Water and Sewage Services

Summary:

Pennsylvania School Bus Association opposes the extension of the Sales Tax to seventy-four previously exempt items and services.

Plan of Action:

· Join with the PA Chamber's efforts to engage in opposition strategies.

· Contact legislators in school bus operators' districts and inform them of the increase in the cost of doing business as a result of this proposed tax increase.

Status:

Currently part of Governor's Budget Proposal; however, this initiative does not have to pass in order for the budget to pass. The Governor is proposing to put this in a "lock box" for future debt.

Date: March 20, 2010 PSBA Position: OPPOSE

Contact: Selina Pittenger