Bill Text: NY A07512 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides that excise taxes imposed on motor fuel pursuant to certain provisions of the tax law shall not be imposed during prescribed periods and requires retail dealers of motor fuel and diesel motor fuel to reduce prices for such fuel.
Spectrum: Strong Partisan Bill (Democrat 18-1)
Status: (Introduced - Dead) 2012-01-04 - referred to ways and means [A07512 Detail]
Download: New_York-2011-A07512-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7512
2011-2012 Regular Sessions
I N A S S E M B L Y
May 6, 2011
___________
Introduced by M. of A. CAHILL -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to computing sales and compen-
sating use tax on motor fuel and diesel motor fuel; and to amend the
tax law and the general business law, in relation to requiring retail
dealers of motor fuel and diesel motor fuel to reduce prices for such
fuel
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The tax law is amended by adding a new section 282-d to
2 read as follows:
3 S 282-D. EXEMPT RETAIL SALES PERIODS. NOTWITHSTANDING ANY PROVISION
4 OF THE LAW TO THE CONTRARY, EXCISE TAXES IMPOSED ON DIESEL MOTOR FUEL
5 PURSUANT TO SECTIONS TWO HUNDRED EIGHTY-TWO-A, TWO HUNDRED EIGHTY-TWO-B,
6 AND TWO HUNDRED EIGHTY-TWO-C OF THIS ARTICLE SHALL NOT BE IMPOSED ON
7 RETAIL SALES MADE DURING THE PERIOD COMMENCING FRIDAY, MAY TWENTY-SEV-
8 ENTH, TWO THOUSAND ELEVEN THROUGH MONDAY, MAY THIRTIETH, TWO THOUSAND
9 ELEVEN, FRIDAY, JULY FIRST, TWO THOUSAND ELEVEN THROUGH MONDAY, JULY
10 FOURTH, TWO THOUSAND ELEVEN, AND FRIDAY, SEPTEMBER SECOND, TWO THOUSAND
11 ELEVEN THROUGH MONDAY, SEPTEMBER FIFTH, TWO THOUSAND ELEVEN TO THE
12 EXTENT SUCH RETAIL SALES OF SUCH DIESEL MOTOR FUEL WAS MADE PURSUANT TO
13 SUBDIVISION (R) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER.
14 PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL NOT INCLUDE SALES MADE TO
15 VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER ARTICLE TWENTY-ONE OF THIS
16 CHAPTER.
17 S 2. The tax law is amended by adding a new section 284-f to read as
18 follows:
19 S 284-F. EXEMPT RETAIL SALES PERIODS. NOTWITHSTANDING ANY PROVISION
20 OF THE LAW TO THE CONTRARY, EXCISE TAXES IMPOSED ON MOTOR FUEL PURSUANT
21 TO SECTIONS TWO HUNDRED EIGHTY-FOUR, TWO HUNDRED EIGHTY-FOUR-A, AND TWO
22 HUNDRED EIGHTY-FOUR-C OF THIS ARTICLE SHALL NOT BE IMPOSED ON RETAIL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11502-03-1
A. 7512 2
1 SALES MADE DURING THE PERIOD COMMENCING FRIDAY, MAY TWENTY-SEVENTH, TWO
2 THOUSAND ELEVEN THROUGH MONDAY, MAY THIRTIETH, TWO THOUSAND ELEVEN,
3 FRIDAY, JULY FIRST, TWO THOUSAND ELEVEN THROUGH MONDAY, JULY FOURTH, TWO
4 THOUSAND ELEVEN AND FRIDAY, SEPTEMBER SECOND, TWO THOUSAND ELEVEN
5 THROUGH MONDAY, SEPTEMBER FIFTH, TWO THOUSAND ELEVEN TO THE EXTENT SUCH
6 SALES OF MOTOR FUEL WAS MADE PURSUANT TO SUBDIVISION (R) OF SECTION
7 ELEVEN HUNDRED ELEVEN OF THIS CHAPTER. PROVIDED, HOWEVER, SUCH RETAIL
8 SALES SHALL NOT INCLUDE SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE
9 TAX UNDER ARTICLE TWENTY-ONE OF THIS CHAPTER.
10 S 3. Section 301-a of the tax law is amended by adding a new subdivi-
11 sion (n) to read as follows:
12 (N) NOTWITHSTANDING ANY PROVISION OF THE LAW TO THE CONTRARY, TAXES
13 IMPOSED ON DIESEL MOTOR FUEL AND MOTOR FUEL FOR THE PRIVILEGE OF ENGAG-
14 ING IN BUSINESS, DOING BUSINESS, EMPLOYING CAPITAL, OWNING OR LEASING
15 PROPERTY, OR MAINTAINING AN OFFICE IN THIS STATE UNDER THIS SECTION
16 SHALL NOT BE IMPOSED ON RETAIL SALES MADE DURING THE PERIOD COMMENCING
17 FRIDAY, MAY TWENTY-SEVENTH, TWO THOUSAND ELEVEN THROUGH MONDAY, MAY
18 THIRTIETH, TWO THOUSAND ELEVEN, FRIDAY, JULY FIRST, TWO THOUSAND ELEVEN
19 THROUGH MONDAY, JULY FOURTH, TWO THOUSAND ELEVEN AND FRIDAY, SEPTEMBER
20 SECOND, TWO THOUSAND ELEVEN THROUGH MONDAY, SEPTEMBER FIFTH, TWO THOU-
21 SAND ELEVEN TO THE EXTENT SUCH SALES OF DIESEL MOTOR FUEL OR MOTOR FUEL
22 WAS MADE PURSUANT TO SUBDIVISION (R) OF SECTION ELEVEN HUNDRED ELEVEN OF
23 THIS CHAPTER. PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL NOT INCLUDE
24 SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER ARTICLE TWENTY-
25 ONE OF THIS CHAPTER.
26 S 4. Section 1111 of the tax law is amended by adding a new subdivi-
27 sion (r) to read as follows:
28 (R)(1) THE SALES TAX IMPOSED BY SUBDIVISION (A) OF SECTION ELEVEN
29 HUNDRED FIVE OF THIS ARTICLE AND THE COMPENSATING USE TAX IMPOSED BY
30 SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, IN REGARD TO RETAIL SALES OF
31 MOTOR FUEL AND DIESEL MOTOR FUEL SHALL NOT BE IMPOSED DURING THE PERIOD
32 COMMENCING FRIDAY, MAY TWENTY-SEVENTH, TWO THOUSAND ELEVEN THROUGH
33 MONDAY, MAY THIRTIETH, TWO THOUSAND ELEVEN, FRIDAY, JULY FIRST, TWO
34 THOUSAND ELEVEN THROUGH MONDAY, JULY FOURTH, TWO THOUSAND ELEVEN AND
35 FRIDAY, SEPTEMBER SECOND, TWO THOUSAND ELEVEN THROUGH MONDAY, SEPTEMBER
36 FIFTH, TWO THOUSAND ELEVEN. PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL
37 NOT INCLUDE SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER
38 ARTICLE TWENTY-ONE OF THIS CHAPTER.
39 (2) THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBDIVISION (A) OF
40 SECTION ELEVEN HUNDRED NINE OF THIS ARTICLE, IN REGARD TO RETAIL SALES
41 OF MOTOR FUEL AND DIESEL MOTOR FUEL SHALL NOT BE IMPOSED DURING THE
42 PERIOD COMMENCING FRIDAY, MAY TWENTY-SEVENTH, TWO THOUSAND ELEVEN
43 THROUGH MONDAY, MAY THIRTIETH, TWO THOUSAND ELEVEN, FRIDAY, JULY FIRST,
44 TWO THOUSAND ELEVEN THROUGH MONDAY, JULY FOURTH, TWO THOUSAND ELEVEN AND
45 FRIDAY, SEPTEMBER SECOND, TWO THOUSAND ELEVEN THROUGH MONDAY, SEPTEMBER
46 FIFTH, TWO THOUSAND ELEVEN. PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL
47 NOT INCLUDE SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER
48 ARTICLE TWENTY-ONE OF THIS CHAPTER.
49 (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL APPLY TO THE SALE AND
50 COMPENSATING USE TAXES IMPOSED UNDER LOCAL LAWS, ORDINANCES OR RESOL-
51 UTIONS BY A MUNICIPALITY OR CITY PURSUANT TO AUTHORIZATION UNDER THIS
52 CHAPTER, IN REGARD TO MOTOR FUEL AND DIESEL MOTOR FUEL. PROVIDED,
53 HOWEVER, THE LOCAL LEGISLATIVE BODY OF A MUNICIPALITY OR CITY PURSUANT
54 TO AUTHORIZATION UNDER THIS CHAPTER, BY LOCAL LAW, ORDINANCE OR RESOL-
55 UTION IN THE FORM PREPARED BY THE COMMISSIONER, MAY ELECT NOT TO EXEMPT
56 TAXES IMPOSED ON RETAIL SALES OF MOTOR AND DIESEL MOTOR FUEL PURSUANT TO
A. 7512 3
1 SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF
2 THIS ARTICLE.
3 S 5. Section 1817 of the tax law is amended by adding a new subdivi-
4 sion (o) to read as follows:
5 (O) (1) EVERY PERSON ENGAGED IN THE RETAIL SALE OF MOTOR FUEL AND/OR
6 DIESEL MOTOR FUEL SHALL COMPLY WITH THE PROVISIONS OF SECTION THREE
7 HUNDRED NINETY-TWO-J OF THE GENERAL BUSINESS LAW BY REDUCING THE PRICES
8 CHARGED FOR MOTOR FUEL AND DIESEL MOTOR FUEL IN AN AMOUNT EQUAL TO ANY
9 REDUCTION IN TAXES IMPOSED ON RETAIL CUSTOMERS RESULTING FROM TAX
10 EXEMPTIONS PURSUANT TO SECTIONS TWO HUNDRED EIGHTY-TWO-D AND TWO HUNDRED
11 EIGHTY-FOUR-F, SUBDIVISION (N) OF SECTION THREE HUNDRED ONE-A AND PARA-
12 GRAPHS ONE, TWO, AND THREE OF SUBDIVISION (R) OF SECTION ONE THOUSAND
13 ONE HUNDRED ELEVEN OF THIS CHAPTER.
14 (2) THE COMMISSIONER, IN COOPERATION WITH THE STATE CONSUMER
15 PROTECTION BOARD, SHALL MONITOR THE PRICES CHARGED BY PERSONS ENGAGED IN
16 THE RETAIL SALE OR DISTRIBUTION OF MOTOR FUEL AND DIESEL MOTOR FUEL.
17 (3) UPON A FINDING BY THE COMMISSIONER THAT A PERSON ENGAGED IN THE
18 RETAIL SALE OF MOTOR FUEL AND/OR DIESEL MOTOR FUEL HAS VIOLATED THE
19 PROVISIONS OF SECTION THREE HUNDRED NINETY-TWO-J OF THE GENERAL BUSINESS
20 LAW, THE COMMISSIONER SHALL PROVIDE NOTICE OF SUCH VIOLATION TO SUCH
21 PERSON AND HOLD A HEARING ON SUCH VIOLATION, WITH AN OPPORTUNITY FOR THE
22 ACCUSED TO BE HEARD, NOT LESS THAN TEN DAYS AFTER NOTICE IS PROVIDED. A
23 VIOLATION OF SECTION THREE HUNDRED NINETY-TWO-J OF THE GENERAL BUSINESS
24 LAW SHALL SUBJECT THE PERSON VIOLATING SUCH SECTION TO A CIVIL PENALTY
25 OF UP TO FIVE THOUSAND DOLLARS FOR EACH DAY SUCH VIOLATION OCCURS.
26 S 6. The general business law is amended by adding a new section 392-j
27 to read as follows:
28 S 392-J. PRICES REDUCED TO REFLECT CHANGE IN TAX COMPUTATION. EVERY
29 PERSON ENGAGED IN THE RETAIL SALE OF MOTOR FUEL AND/OR DIESEL MOTOR FUEL
30 SHALL REDUCE THE PRICE SUCH PERSON CHARGES FOR MOTOR FUEL AND/OR DIESEL
31 MOTOR FUEL IN AN AMOUNT EQUAL TO ANY REDUCTION IN TAXES PAID BY RETAIL
32 CUSTOMERS RESULTING FROM TAX EXEMPTIONS PURSUANT TO SECTIONS TWO HUNDRED
33 EIGHTY-TWO-D AND TWO HUNDRED EIGHTY-FOUR-F, SUBDIVISION (N) OF SECTION
34 THREE HUNDRED ONE-A AND PARAGRAPHS ONE, TWO, AND THREE OF SUBDIVISION
35 (R) OF SECTION ONE THOUSAND ONE HUNDRED ELEVEN OF THE TAX LAW.
36 S 7. Notwithstanding any other provision of this act, exemptions
37 provided under this act shall apply only to (a) motor fuel or diesel
38 motor fuel sold for use directly and exclusively in the engine of a
39 motor vehicle and (b) motor fuel or diesel motor fuel sold by a retail
40 gas station. For purposes of this act and such other provisions of law,
41 "retail gas station" shall mean a filling station where such fuel is
42 stored primarily for sale by delivery directly into the ordinary fuel
43 tank connected with the engine of a motor vehicle to be consumed in the
44 operation of such motor vehicle or where such fuel is stored primarily
45 for sale by delivery directly into the ordinary fuel tank connected with
46 the engine of a vessel to be consumed in the operation of such vessel.
47 S 8. The commissioner of taxation and finance is hereby authorized to
48 require the use of certificates or other documents, and procedures
49 related thereto, to effect the purposes of this act. Provided, further,
50 such purpose shall include refunds of the taxes prepaid by vendors,
51 distributors, and petroleum businesses to the extent retail sales were
52 exempted under this act, and the commissioner shall be required to
53 administer such refund of taxes as soon as practicable. Notwithstanding
54 any other provisions of this act, the vendor shall not be required to
55 collect the taxes imposed on retail sales of motor fuel and diesel motor
56 fuel made to vehicles subject to highway use tax under article 21 of the
A. 7512 4
1 tax law, and the commissioner shall collect such taxes if such sales
2 made to vehicles subject to highway use tax under article 21 of the tax
3 law were not collected during the exempt sales period under this act.
4 S 9. A municipality may make the election pursuant to paragraph (3) of
5 subdivision (r) of section 1111 of the tax law, as the case may be, by
6 local law, ordinance or resolution. Provided, however, the minimum
7 notice requirements to the commissioner of taxation and finance shall be
8 deemed complied with if such municipality or city mails by certified or
9 registered mail, a certified copy of such local law, ordinance or resol-
10 ution to such commissioner prior to the retail sale period exempted
11 under this act. Notwithstanding any other provisions of law, the
12 commissioner shall establish emergency regulation to comply with the
13 notice requirements.
14 S 10. Notwithstanding any provision of law to the contrary, the
15 commissioner of taxation and finance shall determine and certify to the
16 comptroller the amount of revenue foregone as a result of tax exemptions
17 under this act and shall deposit the amounts certified by such commis-
18 sioner as such revenue foregone to the credit of the funds and accounts
19 affected by this act to the debit of the general fund. Provided, howev-
20 er, the commissioner shall not deposit the amount of revenue foregone in
21 regard to sales and use taxes exempted on motor fuel and diesel motor
22 fuel pursuant to paragraph (3) of subdivision (r) of section 1111 of the
23 tax law.
24 S 11. This act shall take effect immediately.
