Bill Text: NY A08626 | 2021-2022 | General Assembly | Introduced


Bill Title: Provides that commercial tugboats, barges and other commercial towboats are exempt from payment of the petroleum business tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2022-01-10 - referred to ways and means [A08626 Detail]

Download: New_York-2021-A08626-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8626

                   IN ASSEMBLY

                                    January 10, 2022
                                       ___________

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

        AN  ACT to amend the tax law, in relation to providing an exemption from
          the payments of the petroleum business tax on the operation of commer-
          cial tugboats, barges and other commercial towboats

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

     1    Section  1.  Legislative  findings  and  declarations. The legislature
     2  hereby finds that commercial tugboat, barge and other commercial towboat
     3  operators are subject to the petroleum business tax when  their  vessels
     4  are used in commercial tugboat, barge and other commercial towboat oper-
     5  ations.  The  legislature  further  finds  that such commercial tugboat,
     6  barge and other commercial towboat operators  endure  an  administrative
     7  and  unexpected  financial  burden  as  a result of such law that is not
     8  warranted by the minimal amounts to be  collected  from  the  commercial
     9  tugboat, barge and other commercial towboat operators under such law, as
    10  determined by the state of New York.
    11    The  legislature,  therefore, declares that it is in the best interest
    12  of the commercial tugboat, barge and other commercial  towboat  industry
    13  of  the  state  of  New York to exempt the commercial tugboat, barge and
    14  other commercial towboat industry from this tax.
    15    § 2. Paragraph 2 of subdivision (b) of section 301-a of the  tax  law,
    16  as added by section 154 of part A of chapter 389 of the laws of 1997, is
    17  amended to read as follows:
    18    (2)  Motor  fuel  brought  into this state in the fuel tank connecting
    19  with the engine of a vessel propelled by the  use  of  such  motor  fuel
    20  shall  be  deemed  to  constitute  a  taxable  use of motor fuel for the
    21  purposes of this subdivision to the extent that the fuel is consumed  in
    22  the  operation of the vessel in this state. Provided, however, that this
    23  paragraph shall not apply to (i)  a  recreational  motor  boat  or  (ii)
    24  subsequent  to  August  thirty-first,  nineteen  hundred  ninety-four, a
    25  commercial fishing vessel (as defined  in  subdivision  (j)  of  section
    26  three  hundred  of this article) if the motor fuel imported and consumed
    27  in this state is used to operate such vessel while it is engaged in  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13954-03-1

        A. 8626                             2

     1  harvesting of fish for sale  or (iii) subsequent to August thirty-first,
     2  two thousand twenty-two, a commercial tugboat, barge or other commercial
     3  towboat  operator  if the motor fuel imported and consumed in this state
     4  is  used  to  operate  vessels  of such operators while such operator is
     5  engaged in commercial tugboat, barge or other commercial  towboat  oper-
     6  ations in the state. Provided, further, that tax liability for gallonage
     7  that  a  vessel  consumes shall be the tax liability with respect to the
     8  positive difference between the gallonage consumed in this state  during
     9  the  reporting  period  and  the gallonage purchased in this state (upon
    10  which the tax imposed by this section has been paid) during such period.
    11  A credit or refund shall be available for any excess  of  tax  liability
    12  for gallonage purchased in this state during the period over tax liabil-
    13  ity  on  gallonage  so  consumed in this state during such period, which
    14  excess shall be presumed to have been used outside this state.
    15    § 3. Subparagraph (B) of paragraph 1 of  subdivision  (c)  of  section
    16  301-a  of  the tax law, as amended by section 19 of part K of chapter 61
    17  of the laws of 2011, is amended to read as follows:
    18    (B) Highway diesel motor fuel brought into this state in the fuel tank
    19  connecting with the engine of a vessel propelled  by  the  use  of  such
    20  diesel  motor fuel shall be deemed to constitute a taxable use of diesel
    21  motor fuel for the purpose of this paragraph to the extent of  the  fuel
    22  that is consumed in the operation of the vessel in this state. Provided,
    23  however, this paragraph shall not apply to (i) a recreational motor boat
    24  or  (ii)  a  commercial fishing vessel (as defined in subdivision (j) of
    25  section three hundred of this article) if the highway diesel motor  fuel
    26  imported into and consumed in this state is used to operate such commer-
    27  cial  fishing  vessel  while it is engaged in the harvesting of fish for
    28  sale or (iii) subsequent to August thirty-first,  two  thousand  twenty-
    29  two, a commercial tugboat, barge or other commercial towboat operator if
    30  the  highway  diesel  motor  fuel imported and consumed in this state is
    31  used to operate vessels of such operator while such operator is  engaged
    32  in  commercial  tugboat, barge or other commercial towboat operations in
    33  this state. Provided, further, that tax liability for gallonage  that  a
    34  vessel consumes in this state shall be the tax liability with respect to
    35  the  positive  difference  between  the gallonage consumed in this state
    36  during the reporting period and the gallonage purchased  in  this  state
    37  (upon  which  the tax imposed by this section has been paid) during such
    38  period. A credit or refund shall be available  for  any  excess  of  tax
    39  liability  for  gallonage purchased in this state during the period over
    40  tax liability on gallonage so consumed in this state during such period,
    41  which excess shall be presumed to have been used outside this state.
    42    § 4. Section 301-b of the tax law is amended by adding a new  subdivi-
    43  sion (j) to read as follows:
    44    (j)  Exemption  for  commercial  tugboat,  barge,  or other commercial
    45  towboat operators. A use  by  a  commercial  tugboat,  barge,  or  other
    46  commercial towboat operator of non-highway diesel motor fuel or residual
    47  petroleum  product  where such non-highway diesel motor fuel or residual
    48  petroleum product was used and consumed by a commercial tugboat,  barge,
    49  or  other  commercial  towboat operator in commercial tugboat, barge, or
    50  other commercial towboat operations in the state.
    51    § 5. This act shall take effect August 31, 2022.
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