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Albany, NY, April 10 – In a year when the Governor and Legislature were looking to close a $16 billion budget gap by increasing taxes on the private school bus transportation industry, among others, Capitol Group, LLC had a major lobbying victory by helping stop the Governor’s proposal to increase sales taxes on fuel above $2.00, capital improvements and a new sales tax on certain transportation-related services.

After months of lobbying and meetings with key members of the legislature, Capitol Group, LLC lobbyist were able to convince government leaders that increasing taxes on the school bus contractors would have a negative impact on property taxes and have a deleterious effect on an industry that employs over 30,000 people across the state. In the end, the Governor and legislative leaders agreed to remove the proposed tax on gas/diesel over $2.00, sales tax on capital improvements and sales tax on certain transportation-related services. All three of these proposals would have had a significant financial effect on the school bus industry had Capitol Group, LLC not lobbied to have them removed from the state budget.

Had the Governor’s budget passed as introduced, he would have removed the sales tax exemption on capital improvements. This provision would have negatively impacted any school bus contractor that made a capital improvement to their facility. In addition, had the Governor not backed away from his desire to repeal the sales tax cap on the purchase of fuel above $2.00, the industry would once again be forced to pay even more for fuel. The third proposal defeated by Capitol Group’s lobbying team was the Governor’s proposal to extend the sales tax to transportation-related spending. This proposal would have mandated the collection of sales tax on summer camp transportation services and other school-related services currently exempted.

Capitol Group, LLC is one of New York’s leading full-service public affairs firms providing lobbying, government affairs representation, strategic counsel, and communications services. The firm is recognized for its highly successful bi-partisan lobbying practice. Capitol Group, LLC represents clients ranging from small businesses to Fortune 500 Companies and small not-for profits to statewide associations.