Bill Text: NY A05845 | 2019-2020 | General Assembly | Introduced


Bill Title: Limits the state tax on motor and diesel fuels to the national average.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-02-20 - referred to ways and means [A05845 Detail]

Download: New_York-2019-A05845-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5845
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 20, 2019
                                       ___________
        Introduced  by M. of A. LALOR -- read once and referred to the Committee
          on Ways and Means
        AN ACT to amend the tax law, the public authorities law and the  highway
          law,  in  relation  to limiting the tax on motor fuels to the national
          average; and to repeal sections 282-b, 282-c, 284-a and 284-c  of  the
          tax law relating to additional and supplemental fuel taxes
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 1 of section 284 of the tax law, as amended  by
     2  chapter  276  of the laws of 1986, is amended and a new subdivision 3 is
     3  added to read as follows:
     4    1. There is hereby levied and imposed an excise tax [of four cents per
     5  gallon] as determined annually by a majority of the legislature no later
     6  than April first, not to exceed the national average of taxes  on  motor
     7  fuel  by  states  and  the district of Columbia, including any taxes and
     8  fees imposed by local governments, as compiled annually by  the  depart-
     9  ment,  upon  motor  fuel (a) imported into or caused to be imported into
    10  the state by a distributor for use, distribution, storage or sale in the
    11  state or upon motor fuel which is  produced,  refined,  manufactured  or
    12  compounded  by  a distributor in the state (which acts shall hereinafter
    13  in this subdivision be encompassed by the phrase "imported  or  manufac-
    14  tured") or (b) if the tax has not been imposed prior to its sale in this
    15  state,  which  is  sold by a distributor (which act, in conjunction with
    16  the acts described in paragraph (a) of this subdivision,  shall  herein-
    17  after  in  this article be encompassed by the phrase "imported, manufac-
    18  tured or sold"),  except  when  imported,  manufactured  or  sold  under
    19  circumstances which preclude the collection of such tax by reason of the
    20  United  States  constitution  and  of  laws of the United States enacted
    21  pursuant thereto or when imported or  manufactured  by  an  organization
    22  described  in  paragraph one or two of subdivision (a) of section eleven
    23  hundred sixteen of this chapter or a hospital included in the  organiza-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01079-01-9

        A. 5845                             2
     1  tions described in paragraph four of such subdivision for its own use or
     2  consumption and except kero-jet fuel when imported or manufactured by an
     3  airline for use in its airplanes. Provided, further, no motor fuel shall
     4  be  included  in  the measure of the tax unless it shall have previously
     5  come to rest within the meaning of federal decisional  law  interpreting
     6  the  United  States  constitution.  All  tax  for the period for which a
     7  return is required to be filed shall be due on the date limited for  the
     8  filing  of the return for such period, regardless of whether a return is
     9  filed by such distributor as required by this  article  or  whether  the
    10  return which is filed correctly shows the amount of tax due.
    11    3. The methodology by which the department computes the national aver-
    12  age  of  sales taxes imposed on motor fuel by states and the district of
    13  Columbia for the purposes of limiting the annual excise tax  imposed  by
    14  subdivision  one  of  this  section  shall  be subject to the review and
    15  approval of a majority of the legislature every four years no later than
    16  April first.
    17    § 2. Subdivision 1 of section 282-a of the  tax  law,  as  amended  by
    18  section  2 of part W of chapter 59 of the laws of 2013, is amended and a
    19  new subdivision 1-a is added to read as follows:
    20    1. There is hereby levied and imposed with  respect  to  Diesel  motor
    21  fuel  an excise tax [of four cents per gallon] as determined annually by
    22  a majority of the legislature no later than April first, not  to  exceed
    23  the  national average of taxes on Diesel fuel by states and the district
    24  of Columbia including any taxes and fees imposed by local governments as
    25  compiled annually by the department, upon the  sale  or  use  of  Diesel
    26  motor fuel in this state.
    27    The  excise  tax  is  imposed on the first sale or use of Diesel motor
    28  fuel to occur which is not exempt from tax under this article. Provided,
    29  however, if the tax has not been imposed  prior  thereto,  it  shall  be
    30  imposed  on  the  removal  of highway Diesel motor fuel from a terminal,
    31  other than by pipeline, barge, tanker or other vessel, or  the  delivery
    32  of Diesel motor fuel to a filling station or into the fuel tank connect-
    33  ing  with the engine of a motor vehicle for use in the operation thereof
    34  whichever event shall be first to occur. The tax shall be computed based
    35  upon the number of gallons of Diesel motor fuel sold, removed or used or
    36  the number of gallons of Diesel fuel delivered into the fuel tank  of  a
    37  motor  vehicle,  as  the  case  may be. Nothing in this article shall be
    38  construed to require the payment of such excise tax more than once  upon
    39  the same Diesel motor fuel. Nor shall the collection of such tax be made
    40  applicable  to  the sale or use of Diesel motor fuel under circumstances
    41  which preclude the collection of such tax by reason of the United States
    42  constitution and of laws of the United States enacted pursuant  thereto.
    43  Provided, further, no Diesel motor fuel shall be included in the measure
    44  of the tax unless it shall have previously come to rest within the mean-
    45  ing  of  federal decisional law interpreting the United States constitu-
    46  tion. All tax for the period for which a return is required to be  filed
    47  shall  be  due on the date limited for the filing of the return for such
    48  period, regardless of whether a return is  filed  as  required  by  this
    49  article  or whether the return which is filed correctly shows the amount
    50  of tax due.
    51    1-a. The methodology by which the  department  computes  the  national
    52  average of sales taxes imposed on Diesel fuel by states and the district
    53  of  Columbia  for the purposes of limiting the annual excise tax imposed
    54  by subdivision one of this section shall be subject to  the  review  and
    55  approval of a majority of the legislature every four years no later than
    56  April first.

        A. 5845                             3
     1    §  3.  Sections  282-b,  282-c,  284-a  and  284-c  of the tax law are
     2  REPEALED.
     3    §  4.  Subdivision  1  of  section 289-e of the tax law, as amended by
     4  section 15 of part K of chapter 61 of the laws of 2011,  is  amended  to
     5  read as follows:
     6    1.  All  taxes,  interest, penalties and fees collected or received by
     7  the commissioner under the taxes imposed  by  this  article,  except  as
     8  provided  otherwise  in  subdivision  two  and subdivision three of this
     9  section  [and   sections   two   hundred   eighty-two-b,   two   hundred
    10  eighty-two-c,  two hundred eighty-four-a and two hundred eighty-four-c,]
    11  other than the fee imposed by  section  two  hundred  eighty-four-d  and
    12  penalties  and  interest on such fee, shall be deposited and disposed of
    13  pursuant to the provisions of section one hundred seventy-one-a of  this
    14  chapter;  provided that an amount equal to thirty-seven and one-half per
    15  centum of the moneys collected under section two hundred eighty-four  of
    16  this  [chapter]  article shall be appropriated and used for the acquisi-
    17  tion of property necessary for the construction  and  reconstruction  of
    18  highways  and  bridges  or culverts on the state highway system, and for
    19  the construction, maintenance and repair of such highways and bridges or
    20  culverts, all under the direction of the commissioner of transportation.
    21    § 5. Paragraphs (b), (d) and (e) of subdivision 3 of section 289-c  of
    22  the  tax  law,  paragraph  (b)  as amended by chapter 411 of the laws of
    23  1971, paragraph (d) as amended by chapter 836 of the laws  of  1974  and
    24  paragraph  (e)  as added by chapter 756 of the laws of 1974, are amended
    25  to read as follows:
    26    (b) Any omnibus carrier which shall buy any motor fuel  on  which  the
    27  [aggregate]  tax imposed by section two hundred eighty-four [and section
    28  two hundred eighty-four-a] of this  [chapter]  article,  or  any  diesel
    29  motor  fuel  on which the [aggregate] tax imposed by section two hundred
    30  eighty-two-a [and section two hundred eighty-two-b]  of  this  [chapter]
    31  article,  shall have been paid, shall be reimbursed, in the case of such
    32  motor fuel, the amount paid pursuant  to  such  [sections]  section  two
    33  hundred  eighty-four  [and  two hundred eighty-four-a] in excess of four
    34  cents per gallon, and in the case of diesel motor fuel, the amount  paid
    35  pursuant  to  such  [sections] section two hundred eighty-two-a [and two
    36  hundred eighty-two-b] in excess of six cents per gallon,  provided  such
    37  motor fuel or diesel motor fuel has been consumed by such carrier in the
    38  operation  of an omnibus in this state. Any taxicab licensee, as defined
    39  by subdivision ten of section two hundred eighty-two of  this  [chapter]
    40  article,  who or which shall buy any motor fuel on which the [aggregate]
    41  tax imposed by section two hundred eighty-four [and section two  hundred
    42  eighty-four-a]  of  this  [chapter]  article or any diesel motor fuel on
    43  which the [aggregate] tax imposed by section  two  hundred  eighty-two-a
    44  [and  section two hundred eighty-two-b] of this [chapter] article, shall
    45  have been paid, shall be reimbursed, in the case of such motor fuel, the
    46  amount paid pursuant to such [sections] section two hundred  eighty-four
    47  [and  two hundred eighty-four-a] in excess of four cents per gallon, and
    48  in the case of diesel motor fuel,  the  amount  paid  pursuant  to  such
    49  [sections]   section   two   hundred   eighty-two-a   [and  two  hundred
    50  eighty-two-b] in excess of six cents per  gallon,  provided  such  motor
    51  fuel  or diesel fuel has been consumed by such licensee in the operation
    52  of a taxicab in this state.
    53    (d) Any omnibus carrier which  shall  buy  motor  fuel  on  which  the
    54  [aggregate] tax imposed by section two hundred eighty-four[, section two
    55  hundred  eighty-four-a  and  section  two hundred eighty-four-c] of this
    56  [chapter] article or any diesel motor fuel on which the [aggregate]  tax

        A. 5845                             4
     1  imposed by section two hundred eighty-two-a[, section two hundred eight-
     2  y-two-b  and section two hundred eighty-two-c] of this [chapter] article
     3  shall have been paid, shall be reimbursed the amount paid provided  such
     4  motor fuel or diesel motor fuel has been consumed by such carrier in the
     5  operation  of an omnibus in local transit service in this state pursuant
     6  to a certificate of convenience and necessity issued by the commissioner
     7  of transportation of this state or by the interstate commerce commission
     8  of the United States or pursuant to a  contract,  franchise  or  consent
     9  between  such  carrier  and  a city having a population of more than one
    10  million inhabitants, or any agency of such city.
    11    (e) Any nonpublic school operator which shall buy motor fuel on  which
    12  the [aggregate] tax imposed by section two hundred eighty-four[, section
    13  two hundred eighty-four-a and section two hundred eighty-four-c] of this
    14  [chapter]  article or any diesel motor fuel on which the [aggregate] tax
    15  imposed by section two hundred eighty-two-a[, section two hundred eight-
    16  y-two-b and section two hundred eighty-two-c] of this [chapter]  article
    17  shall  have been paid, shall be reimbursed the amount paid provided such
    18  motor fuel or diesel motor fuel has  been  consumed  by  such  nonpublic
    19  school operator exclusively in educational related activities.
    20    §  6.  Paragraph  (b)  of  subdivision  5 of section 376 of the public
    21  authorities law, as amended by chapter  55  of  the  laws  of  1992,  is
    22  amended to read as follows:
    23    (b)  To  assure  the continued operation and solvency of the authority
    24  for the carrying out of the purposes relating to this section, provision
    25  is made in this section for the accumulation in the debt service reserve
    26  fund of an amount equal to the maximum amount of principal and  interest
    27  maturing  and  becoming due in any succeeding calendar year on all bonds
    28  of the authority then outstanding and  secured  by  such  reserve  fund;
    29  provided  however  for  such  bonds  issued by the authority after April
    30  first, nineteen hundred ninety-two, such debt service reserve  fund  may
    31  in  the  discretion  of  the authority and consistent with any covenants
    32  with any existing bondholders and without impairing the  rights  of  any
    33  existing  bondholders  be sized in an amount equal to not less than one-
    34  half of the maximum amount of principal and interest maturing and becom-
    35  ing due in any succeeding calendar year on such bonds of  the  authority
    36  then outstanding and secured by such debt service reserve fund. In order
    37  to  further  assure  the  maintenance of such debt service reserve fund,
    38  with respect to bonds of the authority issued pursuant  to  subdivisions
    39  two-a,  two-b  and  two-c  of  this  section after April first, nineteen
    40  hundred ninety, the authority shall create a special subaccount in  each
    41  revenue  fund  established  pursuant  to  any  resolution or resolutions
    42  authorizing such bonds. [Such subaccounts shall consist  of  the  moneys
    43  available  after  April  first,  nineteen  hundred  ninety,  pursuant to
    44  sections two hundred eighty-two-b, two hundred eighty-two-c, two hundred
    45  eighty-four-a and two hundred eighty-four-c of the tax law,  respective-
    46  ly,  in  the  emergency  highway  reconditioning  and  preservation fund
    47  reserve account established pursuant to paragraph (b) of subdivision two
    48  of section eighty-nine of the state finance law  and  in  the  emergency
    49  highway construction and reconstruction fund reserve account established
    50  pursuant to paragraph (b) of subdivision two of section eighty-nine-a of
    51  the state finance law, apportioned and paid to the authority for deposit
    52  in such subaccount of the revenue fund.] Amounts in each such subaccount
    53  shall be kept separate and shall not be commingled with any other moneys
    54  in  the custody of the authority.  Amounts in each such subaccount shall
    55  be applied solely to pay such sum, if any, as shall  semi-annually,  (on
    56  such dates as are established under the terms of any cooperative highway

        A. 5845                             5
     1  contractual  agreement  of the department of transportation with the New
     2  York state thruway authority entered into on or after April first, nine-
     3  teen hundred ninety which is then in effect), be certified by the chair-
     4  man of the authority to the governor and state director of the budget as
     5  necessary  to  provide funds in an amount sufficient together with other
     6  moneys available to the authority for such purpose, to pay  one-half  of
     7  the total annual principal and interest maturing and becoming due during
     8  the next succeeding twelve calendar months on all bonds of the authority
     9  issued  pursuant  to subdivisions two-a, two-b and two-c of this section
    10  after April first, nineteen hundred ninety and  maintaining  or  funding
    11  debt  service reserve funds therefor. [Any surplus of funds in excess of
    12  such certified amounts remaining in  each  such  subaccount  after  such
    13  payments,  if  any,  have been made shall on the dates established under
    14  the terms of such cooperative  highway  agreements,  be  paid  over  for
    15  deposit, respectively, in the emergency highway reconditioning and pres-
    16  ervation  fund  reserve account established pursuant to paragraph (b) of
    17  subdivision two of section eighty-nine of the state finance law  and  in
    18  the  emergency  highway  construction  and  reconstruction  fund reserve
    19  account established pursuant to paragraph  (b)  of  subdivision  two  of
    20  section eighty-nine-a of the state finance law.]
    21    §  7.  Subdivision 5 of section 10-c of the highway law, as amended by
    22  chapter 20 of the laws of 1983, is amended to read as follows:
    23    5. For amounts to be distributed pursuant to this  section  above  the
    24  funding  level,  as defined in this subdivision, received by any munici-
    25  pality, such municipality shall use at  least  seventy-five  percent  of
    26  such apportioned moneys for the construction, reconstruction or improve-
    27  ment  of  local  highways,  bridges  and/or  highway-railroad crossings,
    28  including  right  of  way  acquisition,  preliminary  engineering,   and
    29  construction  supervision  and inspection, where the service life of the
    30  project is at least ten years. Such moneys made available may be used to
    31  match other state and federal funds made  available  for  such  projects
    32  under  federal-aid highway acts. The remainder of the apportionment, may
    33  be used for any highway purposes, except debt service, including but not
    34  limited to, the acquisition of materials and equipment devoted to opera-
    35  tion and maintenance of local highways, bridges and/or  highway-railroad
    36  crossings  and  the payment of any costs directly attributable to opera-
    37  tion and maintenance of local highways, bridges and/or  highway-railroad
    38  crossings. At the discretion of the commissioner, the requirement speci-
    39  fied  in  this  subdivision  may  be  waived  for assistance payments in
    40  amounts of less than five thousand dollars. For purposes of this section
    41  "funding level" shall mean the  average  amounts,  calculated  for  each
    42  municipality,  received  over two years ending March thirty-first, nine-
    43  teen hundred eighty-two from the provisions of the town highway improve-
    44  ment program, the distribution made by former section one hundred twelve
    45  of this chapter, as repealed by section twenty-one of the transportation
    46  systems assistance and financing act of 1981 of amounts  collected  from
    47  taxes  on  motor  fuel imposed by [sections] section two hundred eighty-
    48  four [and two hundred eighty-four-a] of the tax law and on Diesel  motor
    49  fuel  imposed  by  [sections]  section two hundred eighty-two-a [and two
    50  hundred eighty-two-b] of the  tax  law,  and  from  motor  vehicle  fees
    51  collected  from residents pursuant to the vehicle and traffic law, [and]
    52  the distribution made by former section two hundred seventy-nine of this
    53  chapter, as repealed by section twenty-one of the transportation systems
    54  assistance and financing act of 1981,  and  the  distributions  made  by
    55  former sections two hundred eighty-two-b and two hundred eight-four-a of

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     1  the  tax  law,  as  repealed  by the chapter of the laws of two thousand
     2  nineteen which amended this subdivision.
     3    §  8.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.
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