Bill Text: NY S07875 | 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 - Dead) 2022-01-18 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07875 Detail]
Download: New_York-2021-S07875-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7875 IN SENATE January 18, 2022 ___________ Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13954-03-1S. 7875 2 1 in this state is used to operate such vessel while it is engaged in the 2 harvesting of fish for sale or (iii) subsequent to August thirty-first, 3 two thousand twenty-two, a commercial tugboat, barge or other commercial 4 towboat operator if the motor fuel imported and consumed in this state 5 is used to operate vessels of such operators while such operator is 6 engaged in commercial tugboat, barge or other commercial towboat oper- 7 ations in the state. Provided, further, that tax liability for gallonage 8 that a vessel consumes shall be the tax liability with respect to the 9 positive difference between the gallonage consumed in this state during 10 the reporting period and the gallonage purchased in this state (upon 11 which the tax imposed by this section has been paid) during such period. 12 A credit or refund shall be available for any excess of tax liability 13 for gallonage purchased in this state during the period over tax liabil- 14 ity on gallonage so consumed in this state during such period, which 15 excess shall be presumed to have been used outside this state. 16 § 3. Subparagraph (B) of paragraph 1 of subdivision (c) of section 17 301-a of the tax law, as amended by section 19 of part K of chapter 61 18 of the laws of 2011, is amended to read as follows: 19 (B) Highway diesel motor fuel brought into this state in the fuel tank 20 connecting with the engine of a vessel propelled by the use of such 21 diesel motor fuel shall be deemed to constitute a taxable use of diesel 22 motor fuel for the purpose of this paragraph to the extent of the fuel 23 that is consumed in the operation of the vessel in this state. Provided, 24 however, this paragraph shall not apply to (i) a recreational motor boat 25 or (ii) a commercial fishing vessel (as defined in subdivision (j) of 26 section three hundred of this article) if the highway diesel motor fuel 27 imported into and consumed in this state is used to operate such commer- 28 cial fishing vessel while it is engaged in the harvesting of fish for 29 sale or (iii) subsequent to August thirty-first, two thousand twenty- 30 two, a commercial tugboat, barge or other commercial towboat operator if 31 the highway diesel motor fuel imported and consumed in this state is 32 used to operate vessels of such operator while such operator is engaged 33 in commercial tugboat, barge or other commercial towboat operations in 34 this state. Provided, further, that tax liability for gallonage that a 35 vessel consumes in this state shall be the tax liability with respect to 36 the positive difference between the gallonage consumed in this state 37 during the reporting period and the gallonage purchased in this state 38 (upon which the tax imposed by this section has been paid) during such 39 period. A credit or refund shall be available for any excess of tax 40 liability for gallonage purchased in this state during the period over 41 tax liability on gallonage so consumed in this state during such period, 42 which excess shall be presumed to have been used outside this state. 43 § 4. Section 301-b of the tax law is amended by adding a new subdivi- 44 sion (j) to read as follows: 45 (j) Exemption for commercial tugboat, barge, or other commercial 46 towboat operators. A use by a commercial tugboat, barge, or other 47 commercial towboat operator of non-highway diesel motor fuel or residual 48 petroleum product where such non-highway diesel motor fuel or residual 49 petroleum product was used and consumed by a commercial tugboat, barge, 50 or other commercial towboat operator in commercial tugboat, barge, or 51 other commercial towboat operations in the state. 52 § 5. This act shall take effect August 31, 2022.