Bill Text: NY A09827 | 2021-2022 | General Assembly | Introduced


Bill Title: Requires the deposit, into the dedicated highway and bridge trust fund, of a portion of the sales tax collected on each gallon of motor fuel sold at retail; increases the amount to be deposited over time; establishes a temporary fuel tax holiday until September.

Spectrum: Partisan Bill (Republican 14-0)

Status: (Introduced) 2022-04-19 - referred to ways and means [A09827 Detail]

Download: New_York-2021-A09827-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9827

                   IN ASSEMBLY

                                     April 19, 2022
                                       ___________

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

        AN ACT to amend the tax law, the general  business  law  and  the  state
          finance  law,  in relation to providing for the deposit into the dedi-
          cated highway and bridge trust fund of a  portion  of  the  sales  tax
          revenue  from the sale of motor fuel and establishing a temporary fuel
          tax holiday; and to repeal certain provisions of the state finance law
          relating thereto

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

     1    Section  1.  Section 1148 of the tax law, as amended by section 6-a of
     2  part G of chapter 59 of the laws of 2019, is amended to read as follows:
     3    § 1148. Deposit and disposition of revenue. (a)  All  taxes,  interest
     4  and penalties collected or received by the commissioner under this arti-
     5  cle  shall  be  deposited  and disposed of pursuant to the provisions of
     6  section one hundred seventy-one-a of this chapter; provided however, the
     7  comptroller shall on or before the twelfth day of each  month,  pay  all
     8  such  taxes,  interest  and  penalties  collected under this article and
     9  remaining to the comptroller's credit in such banks, banking  houses  or
    10  trust  companies at the close of business on the last day of the preced-
    11  ing month, into the general fund of the state treasury.
    12    (a-1) Provided however, before the funds may be  distributed  pursuant
    13  to  subdivision  (a) of this section, one cent of the taxes collected or
    14  received by the commissioner under this article for the retail  sale  of
    15  each  gallon  of motor fuel shall be deposited in the special obligation
    16  reserve and payment account of the dedicated highway  and  bridge  trust
    17  fund, established by section eighty-nine-b of the state finance law.
    18    (b)  Provided  however, [before] after the funds [may be] are distrib-
    19  uted pursuant to subdivision [(a)] (a-1) of this section but before such
    20  funds are distributed pursuant to subdivision (a) of this section,  such
    21  funds   shall   be   distributed   as  otherwise  provided  in  sections
    22  ninety-two-d, ninety-two-h, and ninety-two-r of the  state  finance  law
    23  and  sections eleven hundred two, eleven hundred four and eleven hundred
    24  nine of this article.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05248-04-2

        A. 9827                             2

     1    (c) Provided however, after funds are distributed pursuant to  [subdi-
     2  vision] subdivisions (a-1) and (b) of this section but before such funds
     3  are distributed pursuant to subdivision (a) of this section, funds shall
     4  be  deposited  by  the  comptroller  into  the New York central business
     5  district  trust  fund  established pursuant to section ninety-nine-ff of
     6  the state finance law in accordance with the following schedule: (1)  in
     7  state  fiscal  year  two  thousand  nineteen  - two thousand twenty, one
     8  hundred twelve million five  hundred  thousand  dollars;  (2)  in  state
     9  fiscal  year  two thousand twenty - two thousand twenty-one, one hundred
    10  fifty million dollars; and (3) in state fiscal year two  thousand  twen-
    11  ty-one - two thousand twenty-two and every succeeding state fiscal year,
    12  an  amount  equal  to one hundred one percent of the amount deposited in
    13  the immediately preceding state fiscal year. The  funds  deposited  into
    14  the  New  York  central  business district trust fund shall be deposited
    15  monthly in equal installments.
    16    § 2. Subdivision (a-1) of section 1148 of the tax  law,  as  added  by
    17  section one of this act, is amended to read as follows:
    18    (a-1)  Provided  however, before the funds may be distributed pursuant
    19  to subdivision (a) of this section, [one cent] two cents  of  the  taxes
    20  collected  or  received  by  the commissioner under this article for the
    21  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    22  special  obligation reserve and payment account of the dedicated highway
    23  and bridge trust fund, established by section eighty-nine-b of the state
    24  finance law.
    25    § 3. Subdivision (a-1) of section 1148 of the tax law, as  amended  by
    26  section two of this act, is amended to read as follows:
    27    (a-1)  Provided  however, before the funds may be distributed pursuant
    28  to subdivision (a) of this section,  [two]  three  cents  of  the  taxes
    29  collected  or  received  by  the commissioner under this article for the
    30  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    31  special  obligation reserve and payment account of the dedicated highway
    32  and bridge trust fund, established by section eighty-nine-b of the state
    33  finance law.
    34    § 4. Subdivision (a-1) of section 1148 of the tax law, as  amended  by
    35  section three of this act, is amended to read as follows:
    36    (a-1)  Provided  however, before the funds may be distributed pursuant
    37  to subdivision (a) of this section, [three]  four  cents  of  the  taxes
    38  collected  or  received  by  the commissioner under this article for the
    39  retail sale of each gallon of motor  fuel  shall  be  deposited  in  the
    40  special  obligation reserve and payment account of the dedicated highway
    41  and bridge trust fund, established by section eighty-nine-b of the state
    42  finance law.
    43    § 5. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
    44  finance law, as amended by section 4 of chapter 368 of the laws of 2019,
    45  is amended to read as follows:
    46    (a)  The  special obligation reserve and payment account shall consist
    47  (i) of all moneys required to be deposited in the dedicated highway  and
    48  bridge  trust  fund  pursuant  to the provisions of sections two hundred
    49  five, two hundred  eighty-nine-e,  three  hundred  one-j,  five  hundred
    50  fifteen,  eleven  hundred  forty-eight and eleven hundred sixty-seven of
    51  the tax law, section four hundred one and article [twelve-d] twelve-D of
    52  the vehicle and traffic law, and section thirty-one of chapter fifty-six
    53  of the laws of nineteen hundred ninety-three, (ii) all  fees,  fines  or
    54  penalties  collected  by  the  commissioner  of  transportation  and the
    55  commissioner of motor vehicles pursuant to  section  fifty-two,  section
    56  three  hundred  twenty-six,  section  eighty-eight  of  the highway law,

        A. 9827                             3

     1  subdivision fifteen of section three hundred eighty-five of the  vehicle
     2  and traffic law, section two of part U1 of chapter sixty-two of the laws
     3  of  two thousand three, subdivision (d) of section three hundred four-a,
     4  paragraph  one  of  subdivision (a) and subdivision (d) of section three
     5  hundred five, subdivision six-a of  section  four  hundred  fifteen  and
     6  subdivision (g) of section twenty-one hundred twenty-five of the vehicle
     7  and  traffic  law,  section  fifteen  of  this chapter, excepting moneys
     8  deposited with the state on account of betterments performed pursuant to
     9  subdivision twenty-seven or subdivision thirty-five of  section  ten  of
    10  the  highway  law, and section one hundred forty-five of the transporta-
    11  tion law, (iii) any moneys collected by the department of transportation
    12  for services provided pursuant to agreements entered into in  accordance
    13  with  section  ninety-nine-r  of the general municipal law, and (iv) any
    14  other moneys collected therefor or credited or transferred thereto  from
    15  any other fund, account or source.
    16    §  6.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
    17  finance law, as amended by section 5 of chapter 368 of the laws of 2019,
    18  is amended to read as follows:
    19    (a) The special obligation reserve and payment account  shall  consist
    20  (i)  of all moneys required to be deposited in the dedicated highway and
    21  bridge trust fund pursuant to the provisions  of  sections  two  hundred
    22  eighty-nine-e, three hundred one-j, five hundred fifteen, eleven hundred
    23  forty-eight  and eleven hundred sixty-seven of the tax law, section four
    24  hundred one and article [twelve-d] twelve-D of the vehicle  and  traffic
    25  law, and section thirty-one of chapter fifty-six of the laws of nineteen
    26  hundred ninety-three, (ii) all fees, fines or penalties collected by the
    27  commissioner  of  transportation  and the commissioner of motor vehicles
    28  pursuant to section fifty-two, section three hundred twenty-six, section
    29  eighty-eight of the highway law, subdivision fifteen  of  section  three
    30  hundred  eighty-five  of the vehicle and traffic law, section fifteen of
    31  this chapter, excepting moneys deposited with the state  on  account  of
    32  betterments  performed  pursuant to subdivision twenty-seven or subdivi-
    33  sion thirty-five of section ten of the  highway  law,  and  section  one
    34  hundred forty-five of the transportation law, (iii) any moneys collected
    35  by  the  department  of transportation for services provided pursuant to
    36  agreements entered into in accordance with section ninety-nine-r of  the
    37  general  municipal  law, and (iv) any other moneys collected therefor or
    38  credited or transferred thereto from any other fund, account or source.
    39    § 7. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
    40  finance  law,  as  amended  by section 8 of part UU of chapter 59 of the
    41  laws of 2018, is REPEALED.
    42    § 8. The tax law is amended by adding a new  section  47  to  read  as
    43  follows:
    44    §  47.    Fuel  tax  holiday.  (a)  Definitions.  For purposes of this
    45  section,
    46    (1) "Applicable period" shall mean fourteen days after  the  effective
    47  date of this section through September first, two thousand twenty-two.
    48    (2)  "Diesel  motor fuel" and "motor fuel" shall have the same meaning
    49  as section two hundred eighty-two of this chapter.
    50    (3) "Filling station" shall have  the  same  meaning  as  section  two
    51  hundred eighty-two of this chapter.
    52    (4)  "Retail  sale"  and "sold at retail" shall mean any sale of motor
    53  fuel or diesel motor fuel at a filling station to a person for use in  a
    54  motor vehicle.
    55    (5)  "Retail  seller"  shall  mean  any person who sells motor fuel or
    56  diesel motor fuel at retail.

        A. 9827                             4

     1    (6) "Sale" shall have the same meaning as section two hundred  eighty-
     2  two of this chapter.
     3    (b)  Exemption  from  taxation. Notwithstanding any other provision of
     4  law, rule or regulation to the contrary, the  taxes  imposed  on  retail
     5  sales  of  motor  fuel  and diesel motor fuel made during the applicable
     6  period shall be exempt from the  taxes  imposed  by  articles  twelve-A,
     7  thirteen-A,  and  twenty-eight  of this chapter. If the retail seller is
     8  located within a municipality that has  elected  to  eliminate  the  tax
     9  imposed  pursuant  to  article  twenty-nine  of this chapter, such taxes
    10  shall not be imposed on the retail sale of motor fuel  or  diesel  motor
    11  fuel during the applicable period.
    12    (c)  Price reduction. During the applicable period, each retail seller
    13  shall reduce the price per gallon of motor fuel and  diesel  motor  fuel
    14  offered  for  sale  by  the  amount  of the taxes that the retail seller
    15  prepaid on the gallon of motor fuel and diesel motor fuel and the amount
    16  of tax in excess of the prepaid amount that would  have  been  collected
    17  from the consumer if the sale of the motor fuel or diesel motor fuel had
    18  not been exempt from tax pursuant to subdivision (b) of this section.
    19    (d)  Advertising.  Notwithstanding  any  other provision of law to the
    20  contrary, a retail seller may  advertise  that  the  motor  fuel  and/or
    21  diesel motor fuel is being or will be sold without the state taxes. Such
    22  advertisement  may commence no earlier than three days before the appli-
    23  cable period and must end by the end of the applicable period.
    24    (e) Refunds and credits. (1) Notwithstanding any  other  provision  of
    25  law  to  the  contrary, the retail seller shall be entitled to receive a
    26  credit against the taxes due pursuant to article  twenty-eight  of  this
    27  chapter for the amount of tax that the retail seller prepaid pursuant to
    28  articles  twelve-A, thirteen-A, twenty-eight and, if applicable, twenty-
    29  nine of this chapter. If the retail seller is located within  a  munici-
    30  pality that has elected to eliminate the tax imposed pursuant to article
    31  twenty-nine  of  this  chapter,  the  retail seller shall be entitled to
    32  claim a credit against the taxes due pursuant to article twenty-eight of
    33  this chapter for such prepaid taxes. The amount of  credit  shall  equal
    34  the  amount of tax that was prepaid pursuant to articles twelve-A, thir-
    35  teen-A, twenty-eight and, if applicable, twenty-nine of this chapter for
    36  each gallon of motor fuel and diesel motor fuel sold  at  retail  during
    37  the  applicable  period. Such credit shall not be allowed for sales that
    38  would have otherwise been exempt from tax.
    39    (2) A retail seller may claim the credit prescribed in  paragraph  one
    40  of  this  subdivision when the retail seller files its return of tax for
    41  the sales of motor fuel and  diesel  motor  fuel  for  the  period  that
    42  includes  the  applicable  period.  Notwithstanding  the foregoing, if a
    43  retailer seller is required to file its return  more  than  thirty  days
    44  after  the  close  of  the applicable period defined in paragraph one of
    45  subdivision (a) of this section, such retailer shall  be  authorized  to
    46  file  an amendment to its most recently filed return to claim such cred-
    47  it. No credit may be claimed for the taxes prepaid pursuant  to  article
    48  twelve-A,  thirteen-A,  twenty-eight  or,  if applicable, twenty-nine of
    49  this chapter pursuant to this section  if  the  claim  would  have  been
    50  barred  pursuant  to the article that required prepayment of such taxes.
    51  No interest shall be paid on any claims for credit made pursuant to this
    52  section.
    53    § 9. Section 88-a of the state finance law is amended by adding a  new
    54  subdivision 8 to read as follows:
    55    8.  By  March thirty-first, two thousand twenty-three, the comptroller
    56  shall transfer from the general fund to the mass transportation  operat-

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     1  ing assistance fund an amount no greater than the amount that would have
     2  otherwise been deposited in the mass transportation operating assistance
     3  fund  pursuant  to  this section if the exemption defined in subdivision
     4  (b)  of  section  forty-seven  of  the  tax law had not been authorized;
     5  provided however that the comptroller  shall  make  such  transfer  only
     6  after the director of the budget has determined in his or her discretion
     7  that  the transfer is necessary to ensure a positive fund balance of the
     8  mass transportation operating assistance fund at  the  end  of  the  two
     9  thousand eleven-two thousand twelve state fiscal year.
    10    §  10.  Subdivision  3  of  section  89-b  of the state finance law is
    11  amended by adding a new paragraph (g) to read as follows:
    12    (g) Within forty-five days after an applicable period  as  defined  by
    13  subdivision  (a) of section forty-seven of the tax law, the comptroller,
    14  in consultation with the director of the division of the  budget,  shall
    15  transfer  from  the  general  fund to the special obligation reserve and
    16  payment account an amount equal to the amount that would have  otherwise
    17  been  deposited  in  the  special obligation reserve and payment account
    18  pursuant to this section if the exemption defined in subdivision (b)  of
    19  section forty-seven of the tax law had not been authorized.
    20    § 11. Section 89-c of the state finance law is amended by adding a new
    21  subdivision 4 to read as follows:
    22    4.  Within  forty-five  days  after an applicable period as defined by
    23  subdivision (a) of section forty-seven of the tax law, the  comptroller,
    24  in  consultation  with the director of the division of the budget, shall
    25  transfer from the general fund  to  the  dedicated  mass  transportation
    26  trust  fund an amount equal to the amount that would have otherwise been
    27  deposited in the dedicated mass transportation trust  fund  pursuant  to
    28  this  section  if  the  exemption  defined in subdivision (b) of section
    29  forty-seven of the tax law had not been authorized.
    30    § 12. Section 392-i of the general business law, as amended by section
    31  5 of part M-1 of chapter 109 of the laws of 2006, is amended to read  as
    32  follows:
    33    §  392-i.  Prices  reduced to reflect change in sales tax computation.
    34  Every person engaged in the retail sale  of  motor  fuel  and/or  diesel
    35  motor  fuel  or  a  distributor  of  such  fuels,  as defined in article
    36  twelve-A of the tax law, shall reduce the price such person charges  for
    37  motor  fuel and/or diesel motor fuel in an amount equal to any reduction
    38  in taxes prepaid by the distributor, credit  for  the  amount  of  taxes
    39  prepaid  by  the retail seller allowable pursuant to section forty-seven
    40  of the tax law, exemption from taxation pursuant to section  forty-seven
    41  of the tax law to the extent that the tax that would have been otherwise
    42  due  exceeds  the  amount  of  tax  prepaid, or paid by retail customers
    43  resulting from computing sales and compensating use and other taxes at a
    44  cents per gallon rate pursuant to the provisions  of  paragraph  two  of
    45  subdivision  (e) and subdivision (m) of section eleven hundred eleven of
    46  the tax law.
    47    § 13. Paragraph 1 of subdivision (n) of section 1817 of the  tax  law,
    48  as  amended  by section 30 of subpart I of part V-1 of chapter 57 of the
    49  laws of 2009, is amended to read as follows:
    50    (1) Every person engaged in the  retail  sale  of  motor  fuel  and/or
    51  diesel  motor fuel or a distributor of such fuels, as defined in article
    52  twelve-A of this chapter, shall comply with the  provisions  of  section
    53  three  hundred  ninety-two-i of the general business law by reducing the
    54  prices charged for motor fuel and diesel motor fuel in an  amount  equal
    55  to  any  reduction  in  taxes prepaid by the distributor, credit for the
    56  amount of taxes prepaid by  the  retail  seller  allowable  pursuant  to

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     1  section  forty-seven of the tax law, exemption from taxation pursuant to
     2  section forty-seven of the tax law to the extent that the tax that would
     3  have been otherwise due exceeds the amount of tax prepaid, or imposed on
     4  retail  customers  resulting  from  computing sales and compensating use
     5  taxes at a cents per gallon rate pursuant to the provisions of paragraph
     6  two of subdivision (e) and subdivision (m) of section one  thousand  one
     7  hundred eleven of this chapter.
     8    § 14. Notwithstanding any law to the contrary, a municipality may make
     9  the  election to eliminate all taxes on motor fuel and diesel motor fuel
    10  pursuant to sections eleven hundred seven and eleven  hundred  eight  of
    11  the  tax  law  or article twenty-nine of the tax law fourteen days after
    12  the effective date of this section through September first, two thousand
    13  twenty-two, by local law, ordinance or resolution, if such  municipality
    14  mails,  by  certified or registered mail, a certified copy of such local
    15  law, ordinance or resolution to the commissioner of taxation and finance
    16  at his or her office in Albany no later than the  Wednesday  immediately
    17  preceding  the applicable period as defined by paragraph one of subdivi-
    18  sion (a) of section forty-seven of the tax law.
    19    § 15. The commissioner of taxation and finance shall (a) on  an  emer-
    20  gency basis, promulgate and/or amend any rules and regulations necessary
    21  to  provide  for  the tax free sales of motor fuel and diesel motor fuel
    22  and refunds of prepaid tax to retail sellers; and
    23    (b) immediately make provisions for retail sellers to apply for credit
    24  for the taxes prepaid pursuant    to  articles  twelve-A,    thirteen-A,
    25  twenty-eight, and, if applicable, twenty-nine of the tax law.
    26    § 16. This act shall take effect immediately; provided, however, that:
    27    (a) section one of this act shall take effect April 1, 2022;
    28    (b) section two of this act shall take effect April 1, 2023;
    29    (c) section three of this act shall take effect April 1, 2024;
    30    (d) section four of this act shall take effect April 1, 2025; and
    31    (e)  the  amendments to paragraph (a) of subdivision 3 of section 89-b
    32  of the state finance law, made by section five of  this  act,  shall  be
    33  subject  to  the  expiration and reversion of such paragraph pursuant to
    34  section 13 of part U1 of chapter 62 of the laws  of  2003,  as  amended,
    35  when upon such date the provisions of section six of this act shall take
    36  effect.
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