ALBANY, N.Y. The Bus Association of New York reports that key state legislative leaders have agreed to remove bus charters from a proposed 4 percent sales tax on transportation services.

BANY, as the association is known, had lobbied the legislature for weeks to get bus charters and tours removed from the tax, which was one of a number of taxes proposed by New York Gov. David Patterson to help bail the state out of a huge financial deficit. (See Feb. 1 Bus & Motorcoach News.)

The proposed tax was considered particularly onerous because it would have applied to any service used after June 1, regardless of when the service was purchased. The effect of such a provision was to make the tax retroactive on bus charters that had been booked but not yet used.

BANY members also feared the sales and use tax on charter and tour operations would result in the loss of business to neighboring states that dont have such a tax.

"Great news!

"All of our hard work and efforts have paid off," said BANY President John Silvanie, who operates Suburban Charters of White Plains, N.Y.

Silvanie said three legislative leaders have agreed to remove the transportation tax on charters and other bus trips from the proposed state budget. However, the state still plans to tax executive cars.

"This is a great victory for BANY, and we appreciate the involvement of the American Bus Association, the United Motorcoach Association, the (New York State) Hospitality and Tourism Association, our members, and our supporters," said Silvanie.

BANY members and their supporters visited legislators, conducted a press conference and a post card-mailing campaign, turned its lobbyist loose, and urged members to make direct contact with legislators to push its effort.

"Many other nuisance taxes were included in the new budget but happily we have escaped this charge which would have been very harmful to our members and our industry," said Silvanie.