Bill Text: NY S03183 | 2019-2020 | General Assembly | Introduced
Bill Title: Eliminates provisions of law that require the payment and subsequent refund of the ten cent diesel excise tax and sales tax on diesel motor fuel when sold to operators of commercial fishing vessels for use in the operation of such vessels.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S03183 Detail]
Download: New_York-2019-S03183-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 3183 A. 4478 2019-2020 Regular Sessions SENATE - ASSEMBLY February 4, 2019 ___________ IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Budget and Revenue IN ASSEMBLY -- 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 providing an exemption from the payment of the motor fuels tax and the sales tax on motor fuels used in the operation of commercial fishing vessels The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (b) of subdivision 3 of section 282-a of the tax 2 law, as amended by section 3 of part W of chapter 59 of the laws of 3 2013, is amended to read as follows: 4 (b) The tax on the incidence of sale or use imposed by subdivision one 5 of this section shall not apply to: (i) the sale or use of non-highway 6 Diesel motor fuel, but only if all of such fuel is consumed other than 7 on the public highways of this state (except for the use of the public 8 highway by farmers to reach adjacent farmlands); provided, however, this 9 exemption shall in no event apply to a sale of non-highway Diesel motor 10 fuel which involves a delivery at a filling station or into a repository 11 which is equipped with a hose or other apparatus by which such fuel can 12 be dispensed into the fuel tank of a motor vehicle (except for delivery 13 at a farm site which qualifies for the exemption under subdivision (g) 14 of section three hundred one-b of this chapter); or (ii) a sale to the 15 consumer consisting of not more than twenty gallons of water-white kero- 16 sene to be used and consumed exclusively for heating purposes; or (iii) 17 the sale to or delivery at a filling station or other retail vendor of 18 water-white kerosene provided such filling station or other retail 19 vendor only sells such water-white kerosene exclusively for heating 20 purposes in containers of no more than twenty gallons; or (iv) a sale of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03163-01-9S. 3183 2 A. 4478 1 kero-jet fuel to an airline for use in its airplanes or a use of kero- 2 jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel 3 by a registered distributor of Diesel motor fuel to a fixed base opera- 4 tor registered under this article as a distributor of kero-jet fuel only 5 where such fixed base operator is engaged solely in making or offering 6 to make retail sales not in bulk of kero-jet fuel directly into the fuel 7 tank of an airplane for the purpose of operating such airplane; or (vi) 8 a retail sale not in bulk of kero-jet fuel by a fixed base operator 9 registered under this article as a distributor of kero-jet fuel only 10 where such fuel is delivered directly into the fuel tank of an airplane 11 for use in the operation of such airplane; or (vii) the sale of previ- 12 ously untaxed qualified biodiesel to a person registered under this 13 article as a distributor of Diesel motor fuel other than (A) a retail 14 sale to such person or (B) a sale to such person which involves a deliv- 15 ery at a filling station or into a repository which is equipped with a 16 hose or other apparatus by which such qualified biodiesel can be 17 dispensed into the fuel tank of a motor vehicle; or (viii) the sale of 18 previously untaxed highway Diesel motor fuel by a person registered 19 under this article as a distributor of Diesel motor fuel to a person 20 registered under this article as a distributor of Diesel motor fuel 21 where the highway Diesel motor fuel is either: (A) being delivered by 22 pipeline, railcar, barge, tanker or other vessel to a terminal, the 23 operator of which terminal is registered under section two hundred 24 eighty-three-b of this article, or (B) within such a terminal where it 25 has been so delivered. Provided, however, that the exemption set forth 26 in this subparagraph shall not apply to any highway Diesel motor fuel if 27 it is removed from a terminal, other than by pipeline, barge, tanker or 28 other vessel; or (ix) a sale of Diesel motor fuel to a "commercial fish- 29 erman", as such term is defined in subdivision (i) of section three 30 hundred of this chapter, at retail under the circumstances set forth in 31 paragraph one of subdivision (g) of section three hundred one-c of this 32 chapter, and where such commercial fishing vessel is operated by a 33 commercial fisherman. 34 § 2. Subdivision 4 of section 282-a of the tax law, as amended by 35 section 5 of part K of chapter 61 of the laws of 2011, is amended to 36 read as follows: 37 4. The tax imposed by this section on Diesel motor fuel shall be 38 passed through by the seller and included as part of the selling price 39 to each purchaser of such fuel. Provided, however, the amount of the tax 40 imposed by this section may be excluded from the selling price of Diesel 41 motor fuel where (i) a sale of Diesel motor fuel is made to an organiza- 42 tion described in paragraph (a) of subdivision three of this section 43 solely for the purpose stated therein; (ii) a sale of non-highway Diesel 44 motor fuel is made to a consumer but only if such non-highway Diesel 45 motor fuel is not delivered to a filling station, nor delivered into a 46 storage tank which is equipped with a hose or other apparatus by which 47 such fuel can be dispensed into the fuel tank of a motor vehicle; or 48 (iii) the sale to or delivery at a filling station or other retail 49 vendor of water-white kerosene provided such filling station or other 50 retail vendor only sells such water-white kerosene exclusively for heat- 51 ing purposes in containers of no more than twenty gallons; or (iv) a 52 sale of kero-jet fuel is made to an airline for use in its airplanes; or 53 (v) a sale of Diesel motor fuel is made to a "commercial fisherman", as 54 such term is defined in subdivision (i) of section three hundred of this 55 chapter, at retail under the circumstances set forth in paragraph one of 56 subdivision (g) of section three hundred one-c of this chapter, andS. 3183 3 A. 4478 1 where such commercial fishing vessel is operated by a commercial fisher- 2 man. 3 § 3. Section 301-b of the tax law is amended by adding a new subdivi- 4 sion (j) to read as follows: 5 (j) Sales or uses of diesel motor fuel and residual petroleum product 6 for commercial fishing. Diesel motor fuel or residual petroleum product 7 sold to or used by a "commercial fisherman", as such term is defined in 8 subdivision (i) of section three hundred of this article, at retail 9 under the circumstances set forth in paragraph one of subdivision (g) of 10 section three hundred one-c of this article, and where such commercial 11 fishing vessel is operated by a commercial fisherman. 12 § 4. Subdivision (j) of section 1115 of the tax law, as amended by 13 section 41 of part K of chapter 61 of the laws of 2011, is amended to 14 read as follows: 15 (j) The exemptions provided in this section shall not apply to the tax 16 required to be prepaid pursuant to the provisions of section eleven 17 hundred two of this article nor to the taxes imposed by sections eleven 18 hundred five and eleven hundred ten of this article with respect to 19 receipts from sales and uses of motor fuel or diesel motor fuel, except 20 that the exemptions provided in paragraphs nine and forty-two of subdi- 21 vision (a) of this section shall apply to the tax required to be prepaid 22 pursuant to the provisions of section eleven hundred two of this article 23 and to the taxes imposed by sections eleven hundred five and eleven 24 hundred ten of this article with respect to sales and uses of kero-jet 25 fuel, CNG, hydrogen and E85, provided, however, the exemption allowed 26 for E85 shall be subject to the additional requirements provided in 27 section eleven hundred two of this article with respect to E85 and 28 except that the exemption provided in paragraph twenty-four of subdivi- 29 sion (a) of this section shall apply to the taxes imposed by sections 30 eleven hundred five and eleven hundred ten of this article with respect 31 to sales and uses of diesel motor fuel used in the operation of a fish- 32 ing vessel as described in paragraph twenty-four of subdivision (a) of 33 this section. The exemption provided in subdivision (c) of this section 34 shall apply to sales and uses of non-highway diesel motor fuel but only 35 if all of such fuel is consumed other than on the public highways of 36 this state. The exemption provided in subdivision (c) of this section 37 shall apply to sales and uses of non-highway diesel motor fuel for use 38 or consumption either in the production for sale of tangible personal 39 property by farming or in a commercial horse boarding operation, or in 40 both but only if all of such fuel is consumed other than on the public 41 highways of this state (except for the use of the public highways to 42 reach adjacent farmlands or adjacent lands used in a commercial horse 43 boarding operation, or both). 44 § 5. Subdivision (j) of section 1115 of the tax law, as amended by 45 section 41-a of part K of chapter 61 of the laws of 2011, is amended to 46 read as follows: 47 (j) The exemptions provided in this section shall not apply to the tax 48 required to be prepaid pursuant to the provisions of section eleven 49 hundred two of this article nor to the taxes imposed by sections eleven 50 hundred five and eleven hundred ten of this article with respect to 51 receipts from sales and uses of motor fuel or diesel motor fuel, except 52 that the exemption provided in paragraph nine of subdivision (a) of this 53 section shall apply to the tax required to be prepaid pursuant to the 54 provisions of section eleven hundred two of this article and to the 55 taxes imposed by sections eleven hundred five and eleven hundred ten of 56 this article with respect to sales and uses of kero-jet fuel and exceptS. 3183 4 A. 4478 1 that the exemption provided in paragraph twenty-four of subdivision (a) 2 of this section shall apply to the taxes imposed by sections eleven 3 hundred five and eleven hundred ten of this article with respect to 4 sales and uses of diesel motor fuel used in the operation of a fishing 5 vessel as described in paragraph twenty-four of subdivision (a) of this 6 section. The exemption provided in subdivision (c) of this section 7 shall apply to sales and uses of non-highway diesel motor fuel but only 8 if all of such fuel is consumed other than on the public highways of 9 this state. The exemption provided in subdivision (c) of this section 10 shall apply to sales and uses of non-highway diesel motor fuel for use 11 or consumption either in the production for sale of tangible personal 12 property by farming or in a commercial horse boarding operation, or in 13 both but only if all of such fuel is consumed other than on the public 14 highways of this state (except for the use of the public highways to 15 reach adjacent farmlands or adjacent lands used in a commercial horse 16 boarding operation, or both). 17 § 6. This act shall take effect on the first day of a sales tax quar- 18 terly period, as described in subdivision (b) of section 1136 of the tax 19 law, next commencing at least ninety days after this act shall have 20 become a law; sections four and five of this act shall apply to sales 21 made under and uses occurring on or after the dates such sections four 22 and five shall have taken effect, respectively, although made or occur- 23 ring under a prior contract; and provided further that such amendments 24 made by section four of this act shall be subject to the expiration and 25 reversion of such subdivision pursuant to section 19 of part W-1 of 26 chapter 109 of the laws of 2006, as amended, when upon such date the 27 provisions of section five of this act shall take effect.