Bill Text: NY S08479 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Enacts the "gas tax holiday act of 2022"; provides that from the first of the month after the effective date of the section until December 31, 2022 the taxes imposed on retail sales of fuel gas, motor fuel and diesel motor fuel shall be exempt from certain taxes.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-03-17 - PRINT NUMBER 8479A [S08479 Detail]

Download: New_York-2021-S08479-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8479

                    IN SENATE

                                      March 4, 2022
                                       ___________

        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue

        AN ACT to amend the tax law, the state  finance  law,  and  the  general
          business  law,  in  relation  to  enacting the "gas tax holiday act of
          2022"

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

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "gas tax holiday act of 2022".
     3    § 2. The tax law is amended by adding a new  section  45  to  read  as
     4  follows:
     5    § 45. Fuel tax holiday. (a) Definitions. For purposes of this section:
     6    (1)  "Applicable  period"  shall mean from the first of the month next
     7  succeeding the effective date of this  section  until  December  thirty-
     8  first, two thousand twenty-two.
     9    (2)  "Diesel  motor fuel" and "motor fuel" shall have the same meaning
    10  as section two hundred eighty-two of this chapter.
    11    (3) "Filling station" shall have  the  same  meaning  as  section  two
    12  hundred eighty-two of this chapter.
    13    (4)  "Retail  sale"  and "sold at retail" shall mean any sale of motor
    14  fuel or diesel motor fuel at a filling station to a person for use in  a
    15  motor vehicle.
    16    (5)  "Retail  seller"  shall  mean  any person who sells motor fuel or
    17  diesel motor fuel at retail.
    18    (6) "Sale" shall have the same meaning as section two hundred  eighty-
    19  two of this chapter.
    20    (b)  Exemption  from  taxation. Notwithstanding any other provision of
    21  law, rule or regulation to the contrary, the  taxes  imposed  on  retail
    22  sales  of  motor  fuel  and diesel motor fuel made during the applicable
    23  period shall be exempt from the  taxes  imposed  by  articles  twelve-A,
    24  thirteen-A,  and  twenty-eight  of this chapter. If the retail seller is
    25  located within a municipality that has  elected  to  eliminate  the  tax
    26  imposed  pursuant  to  article  twenty-nine  of this chapter, such taxes

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14876-01-2
        S. 8479                             2

     1  shall not be imposed on the retail sale of motor fuel  or  diesel  motor
     2  fuel during the applicable period.
     3    (c)  Price reduction. During the applicable period, each retail seller
     4  shall reduce the price per gallon of motor fuel and  diesel  motor  fuel
     5  offered  for  sale  by  the  amount  of the taxes that the retail seller
     6  prepaid on the gallon of motor fuel and diesel motor fuel and the amount
     7  of tax in excess of the prepaid amount that would  have  been  collected
     8  from the consumer if the sale of the motor fuel or diesel motor fuel had
     9  not been exempt from tax pursuant to subdivision (b) of this section.
    10    (d)  Advertising.  Notwithstanding  any  other provision of law to the
    11  contrary, a retail seller may  advertise  that  the  motor  fuel  and/or
    12  diesel motor fuel is being or will be sold without the state taxes. Such
    13  advertisement  may commence no earlier than three days before the appli-
    14  cable period and shall end by the end of the applicable period.
    15    (e) Refunds and credits. (1) Notwithstanding any  other  provision  of
    16  law  to  the  contrary, the retail seller shall be entitled to receive a
    17  credit against the taxes due pursuant to article  twenty-eight  of  this
    18  chapter for the amount of tax that the retail seller prepaid pursuant to
    19  articles  twelve-A, thirteen-A, twenty-eight and, if applicable, twenty-
    20  nine of this chapter. If the retail seller is located within  a  munici-
    21  pality that has elected to eliminate the tax imposed pursuant to article
    22  twenty-nine  of  this  chapter,  the  retail seller shall be entitled to
    23  claim a credit against the taxes due pursuant to article twenty-eight of
    24  this chapter for such prepaid taxes. The amount of  credit  shall  equal
    25  the  amount of tax that was prepaid pursuant to articles twelve-A, thir-
    26  teen-A, twenty-eight and, if applicable, twenty-nine of this chapter for
    27  each gallon of motor fuel and diesel motor fuel sold  at  retail  during
    28  the  applicable  period. Such credit shall not be allowed for sales that
    29  would have otherwise been exempt from tax.
    30    (2) A retail seller may claim the credit prescribed in  paragraph  one
    31  of  this  subdivision when the retail seller files its return of tax for
    32  the sales of motor fuel and  diesel  motor  fuel  for  the  period  that
    33  includes  the  applicable  period.  Notwithstanding  the foregoing, if a
    34  retail seller is required to file its return more than thirty days after
    35  the close of the applicable period defined in paragraph one of  subdivi-
    36  sion  (a)  of this section, such retailer shall be authorized to file an
    37  amendment to its most recently filed return to  claim  such  credit.  No
    38  credit  may  be  claimed  for  the  taxes  prepaid  pursuant  to article
    39  twelve-A, thirteen-A, twenty-eight or,  if  applicable,  twenty-nine  of
    40  this  chapter  pursuant  to  this  section  if the claim would have been
    41  barred pursuant to the article that required prepayment of  such  taxes.
    42  No interest shall be paid on any claims for credit made pursuant to this
    43  section.
    44    § 3. Subdivision 3 of section 89-b of the state finance law is amended
    45  by adding a new paragraph (g) to read as follows:
    46    (g)  Within  forty-five days after the applicable period as defined by
    47  subdivision (a) of section forty-five of the tax law,  the  comptroller,
    48  in  consultation  with the director of the division of the budget, shall
    49  transfer from the general fund to the  special  obligation  reserve  and
    50  payment  account an amount equal to the amount that would have otherwise
    51  been deposited in the special obligation  reserve  and  payment  account
    52  pursuant  to this section if the exemption defined in subdivision (b) of
    53  section forty-five of the tax law had not been authorized.
    54    § 4. Section 392-i of the general business law, as amended by  section
    55  5  of part M-1 of chapter 109 of the laws of 2006, is amended to read as
    56  follows:
        S. 8479                             3

     1    § 392-i. Prices reduced to reflect change in  sales  tax  computation.
     2  Every  person  engaged  in  the  retail sale of motor fuel and/or diesel
     3  motor fuel or a  distributor  of  such  fuels,  as  defined  in  article
     4  twelve-A  of the tax law, shall reduce the price such person charges for
     5  motor  fuel and/or diesel motor fuel in an amount equal to any reduction
     6  in taxes prepaid by the distributor, credit  for  the  amount  of  taxes
     7  prepaid by the retail seller allowable pursuant to section forty-five of
     8  the  tax  law, exemption from taxation pursuant to section forty-five of
     9  the tax law to the extent that the tax that would  have  been  otherwise
    10  due  exceeds  the  amount  of  tax  prepaid, or paid by retail customers
    11  resulting from computing sales and compensating use and other taxes at a
    12  cents per gallon rate pursuant to the provisions  of  paragraph  two  of
    13  subdivision  (e) and subdivision (m) of section eleven hundred eleven of
    14  the tax law.
    15    § 5. Paragraph 1 of subdivision (n) of section 1817 of the tax law, as
    16  amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
    17  of 2009, is amended to read as follows:
    18    (1) Every person engaged in the  retail  sale  of  motor  fuel  and/or
    19  diesel  motor fuel or a distributor of such fuels, as defined in article
    20  twelve-A of this chapter, shall comply with the  provisions  of  section
    21  three  hundred  ninety-two-i of the general business law by reducing the
    22  prices charged for motor fuel and diesel motor fuel in an  amount  equal
    23  to  any  reduction  in  taxes prepaid by the distributor, credit for the
    24  amount of taxes prepaid by  the  retail  seller  allowable  pursuant  to
    25  section  forty-five of this chapter, exemption from taxation pursuant to
    26  section forty-five of this chapter to the extent that the tax that would
    27  have been otherwise due exceeds the amount of tax prepaid, or imposed on
    28  retail customers resulting from computing sales and compensating use and
    29  other taxes at a cents per gallon rate pursuant  to  the  provisions  of
    30  paragraph  two  of  subdivision  (e)  and subdivision (m) of section one
    31  thousand one hundred eleven of this chapter.
    32    § 6. Notwithstanding any law to the contrary, a municipality may  make
    33  the  election to eliminate all taxes on motor fuel and diesel motor fuel
    34  pursuant to sections eleven hundred seven and eleven  hundred  eight  of
    35  the  tax  law  or  article twenty-nine of the tax law for the applicable
    36  period, as defined by subdivision (a) of section forty-five of  the  tax
    37  law,  as  added  by  section two of this act, by local law, ordinance or
    38  resolution, if such municipality mails, by certified or registered mail,
    39  a certified copy of such local  law,  ordinance  or  resolution  to  the
    40  commissioner  of  taxation and finance at his or her office in Albany no
    41  later than the Wednesday immediately preceding  the  first  day  of  the
    42  applicable period.
    43    §  7.  The commissioner of taxation and finance shall, on an emergency
    44  basis, promulgate and/or amend any rules and  regulations  necessary  to
    45  provide  for  the tax free sales of motor fuel and diesel motor fuel and
    46  refunds of prepaid tax to retail sellers.
    47    § 8. This act shall take effect immediately.