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) 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.
                                                                   LBD13954-03-1

        S. 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.
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