Bill Text: NY A03853 | 2023-2024 | General Assembly | Introduced


Bill Title: Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities for hire to the general public from the tax on petroleum businesses and from sales and compensating use taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A03853 Detail]

Download: New_York-2023-A03853-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3853

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2023
                                       ___________

        Introduced by M. of A. THIELE -- read once and referred to the Committee
          on Ways and Means

        AN  ACT  to  amend  the  tax  law, in relation to exempting fuel used in
          vessels used directly and predominantly in a business providing  sport
          fishing  opportunities  for hire to the general public from the tax on
          petroleum businesses and from sales and compensating use taxes

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.    Section  300  of the tax law is amended by adding a new
     2  subdivision (j-1) to read as follows:
     3    (j-1) "commercial sport fishing vessel" means  a  vessel  owned  by  a
     4  person,  who  has  been  issued  and holds a marine and coastal district
     5  party and charter boat license pursuant to section 13-0336 of the  envi-
     6  ronmental conservation law.
     7    §  2.  Paragraph 2 of subdivision (b) of section 301-a of the tax law,
     8  as added by section 154 of part A of chapter 389 of the laws of 1997, is
     9  amended to read as follows:
    10    (2) Motor fuel brought into this state in  the  fuel  tank  connecting
    11  with  the  engine  of  a  vessel propelled by the use of such motor fuel
    12  shall be deemed to constitute a  taxable  use  of  motor  fuel  for  the
    13  purposes  of this subdivision to the extent that the fuel is consumed in
    14  the operation of the vessel in this state. Provided, however, that  this
    15  paragraph  shall  not  apply  to  (i)  a recreational motor boat or (ii)
    16  subsequent to  August  thirty-first,  nineteen  hundred  ninety-four,  a
    17  commercial  fishing  vessel  (as  defined  in subdivision (j) of section
    18  three hundred of this article) if the motor fuel imported  and  consumed
    19  in  this state is used to operate such vessel while it is engaged in the
    20  harvesting of fish for sale or (iii) a commercial sport fishing  vessel,
    21  if  such vessel provides its owner with at least fifty percent of his or
    22  her total annual income.   Provided, further,  that  tax  liability  for
    23  gallonage that a vessel consumes shall be the tax liability with respect

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03826-01-3

        A. 3853                             2

     1  to  the positive difference between the gallonage consumed in this state
     2  during the reporting period and the gallonage purchased  in  this  state
     3  (upon  which  the tax imposed by this section has been paid) during such
     4  period.  A  credit  or  refund  shall be available for any excess of tax
     5  liability for gallonage purchased in this state during the  period  over
     6  tax liability on gallonage so consumed in this state during such period,
     7  which excess shall be presumed to have been used outside this state.
     8    §  3.  Subparagraph  (B)  of paragraph 1 of subdivision (c) of section
     9  301-a of the tax law, as amended by section 19 of part K of  chapter  61
    10  of the laws of 2011, is amended to read as follows:
    11    (B) Highway diesel motor fuel brought into this state in the fuel tank
    12  connecting  with  the  engine  of  a vessel propelled by the use of such
    13  diesel motor fuel shall be deemed to constitute a taxable use of  diesel
    14  motor  fuel  for the purpose of this paragraph to the extent of the fuel
    15  that is consumed in the operation of the vessel in this state. Provided,
    16  however, this paragraph shall not apply to (i) a recreational motor boat
    17  or (ii) a commercial fishing vessel (as defined in  subdivision  (j)  of
    18  section  three hundred of this article) if the highway diesel motor fuel
    19  imported into and consumed in this state is used to operate such commer-
    20  cial fishing vessel while it is engaged in the harvesting  of  fish  for
    21  sale or (iii) a commercial sport fishing vessel, if such vessel provides
    22  its owner with at least fifty percent of his or her total annual income.
    23  Provided,  further,  that  tax  liability  for  gallonage  that a vessel
    24  consumes in this state shall be the tax liability with  respect  to  the
    25  positive  difference between the gallonage consumed in this state during
    26  the reporting period and the gallonage purchased  in  this  state  (upon
    27  which the tax imposed by this section has been paid) during such period.
    28  A  credit  or  refund shall be available for any excess of tax liability
    29  for gallonage purchased in this state during the period over tax liabil-
    30  ity on gallonage so consumed in this state  during  such  period,  which
    31  excess shall be presumed to have been used outside this state.
    32    § 4. The opening paragraph of section 301-c of the tax law, as amended
    33  by  section 2 of part T of chapter 59 of the laws of 2022, is amended to
    34  read as follows:
    35    A subsequent purchaser shall be eligible for reimbursement of tax with
    36  respect to the following gallonage, subsequently sold by such  purchaser
    37  in  accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or (o)
    38  of this section or used by such purchaser in accordance with subdivision
    39  (c), (d), (f), (g), (g-1), (i), (l), (m) or (q) of this  section,  which
    40  gallonage  has  been  included in the measure of the tax imposed by this
    41  article on a petroleum business:
    42    § 5. The opening paragraph of section 301-c of the tax law, as amended
    43  by section 3 of part T of chapter 59 of the laws of 2022, is amended  to
    44  read as follows:
    45    A subsequent purchaser shall be eligible for reimbursement of tax with
    46  respect  to the following gallonage, subsequently sold by such purchaser
    47  in accordance with subdivision (a), (b), (e), (h), (j) or  (k)  of  this
    48  section  or  used  by such purchaser in accordance with subdivision (c),
    49  (d), (f), (g), (g-1), (i), (l), (m) or (q) of this section, which gallo-
    50  nage has been included in the measure of the tax imposed by this article
    51  on a petroleum business:
    52    § 6. Section 301-c of the tax law is amended by adding a new  subdivi-
    53  sion (g-1) to read as follows:
    54    (g-1)  Diesel  motor  fuel  and  motor  fuel  used in the operation of
    55  commercial sport fishing  vessels.  Diesel  motor  fuel  or  motor  fuel
    56  purchased  in  this  state by the operator of a commercial sport fishing

        A. 3853                             3

     1  vessel at retail wherein such diesel motor fuel or such  motor  fuel  is
     2  delivered  by a pump equipped with a hose directly into the fuel tank of
     3  a commercial sport fishing vessel to be used as fuel in the operation of
     4  such vessel for the purpose of providing sport fishing opportunities for
     5  hire  to the general public; but only where (1) the tax imposed pursuant
     6  to this article has been paid with respect to such diesel motor fuel  or
     7  such  motor  fuel and the entire amount of such tax has been absorbed by
     8  such purchaser, (2) such purchaser possesses documentary proof satisfac-
     9  tory to the commissioner evidencing the absorption by it of  the  entire
    10  amount  of  the tax imposed pursuant to this article, and (3) the vessel
    11  provides its owner with at least fifty percent of his or her total annu-
    12  al income. Provided, however, that the commissioner shall  require  such
    13  documentary  proof  to  qualify for any reimbursement of tax provided by
    14  this section as the commissioner deems appropriate.
    15    § 7. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
    16  adding a new paragraph 24-a to read as follows:
    17    (24-a) Fuel used in vessels used directly and predominantly in a busi-
    18  ness  providing  sport  fishing  opportunities  for  hire to the general
    19  public; provided that such vessel provides its owner with at least fifty
    20  percent of his or her total annual income.
    21    § 8. Subparagraph (i) of paragraph 1 of  subdivision  (a)  of  section
    22  1210  of the tax law, as amended by section 5 of part J of chapter 59 of
    23  the laws of 2021, is amended to read as follows:
    24    (i) Any local law, ordinance or resolution enacted by any city of less
    25  than one million or by any county or school district, imposing the taxes
    26  authorized by this subdivision, shall, notwithstanding any provision  of
    27  law  to the contrary, exclude from the operation of such local taxes all
    28  sales of tangible personal property for use or consumption directly  and
    29  predominantly  in  the  production  of  tangible personal property, gas,
    30  electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
    31  essing,  generating,  assembly,  refining, mining or extracting; and all
    32  sales of tangible personal property for use or consumption predominantly
    33  either in the production of tangible personal  property,  for  sale,  by
    34  farming or in a commercial horse boarding operation, or in both; and all
    35  sales  of  fuel sold for use in commercial aircraft and general aviation
    36  aircraft; and  the  fuel  used  in  commercial  sport   fishing  vessels
    37  exemption  provided for in paragraph twenty-four-a of subdivision (a) of
    38  section eleven hundred fifteen of this chapter; and, unless  such  city,
    39  county or school district elects otherwise, shall omit the provision for
    40  credit  or refund contained in clause six of subdivision (a) or subdivi-
    41  sion (d) of section eleven hundred nineteen of this chapter.
    42    § 9. Section 1210 of the tax law is amended by adding a  new  subdivi-
    43  sion (n) to read as follows:
    44    (n)  Notwithstanding  any other provision of state or local law, ordi-
    45  nance or resolution to the contrary:
    46    (1) Any city having a population of one million or more in  which  the
    47  taxes  imposed  by  section  eleven hundred seven of this chapter are in
    48  effect, acting through its local legislative body, is hereby  authorized
    49  and empowered to elect to provide the same exemptions from such taxes as
    50  the  fuel  used in commercial sport fishing vessels exemption from state
    51  sales and compensating use taxes described in paragraph twenty-four-a of
    52  subdivision (a) of section eleven hundred fifteen  of  this  chapter  by
    53  enacting  a  resolution  in  the form set forth in paragraph two of this
    54  subdivision; whereupon, upon compliance with the provisions of  subdivi-
    55  sions  (d)  and  (e)  of this section, such enactment of such resolution
    56  shall be deemed to be an amendment to such section eleven hundred  seven

        A. 3853                             4

     1  and  such  section  eleven  hundred seven shall be deemed to incorporate
     2  such exemptions as if they had been duly enacted by the  state  legisla-
     3  ture and approved by the governor.
     4    (2)  Form  of Resolution: Be it enacted by the (insert proper title of
     5  local legislative body) as follows:
     6    Section one.  Receipts  from  sales  of  and  consideration  given  or
     7  contracted  to  be  given  for, or for the use of, property and services
     8  exempt from state sales and compensating use taxes pursuant to paragraph
     9  twenty-four-a of subdivision (a) of section 1115 of the  tax  law  shall
    10  also  be  exempt  from  sales and compensating use taxes imposed in this
    11  jurisdiction.
    12    Section two. This resolution shall take effect  June  1,  (insert  the
    13  year, but not earlier than the year 2023) and shall apply to sales made,
    14  services  rendered  and uses occurring on and after that date in accord-
    15  ance with the applicable transitional provisions in sections 1106,  1216
    16  and 1217 of the New York tax law.
    17    §  10.  This act shall take effect on the ninetieth day after it shall
    18  have become a law; provided, that the amendments to  the  opening  para-
    19  graph  of section 301-c of the tax law, made by section four of this act
    20  shall not affect the repeal of such paragraph pursuant to section 19  of
    21  part  W-1  of  chapter 109 of the laws of 2006, as amended, and shall be
    22  deemed repealed therewith, when upon such date the provisions of section
    23  five of this act shall take effect.
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