Bill Text: NY S09491 | 2021-2022 | General Assembly | Introduced
Bill Title: Enacts the "New York Oil Windfall Profits Tax Act"; establishes an excise tax on barrels of taxable crude oil at a rate of fifty percent times the excess of the average price of crude oil in the taxable year and the average price of crude oil between 2015 and 2019.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-06-29 - REFERRED TO RULES [S09491 Detail]
Download: New_York-2021-S09491-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9491 IN SENATE June 29, 2022 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law and the state finance law, in relation to enacting the "New York Oil Windfall Profits Tax Act of 2023" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act may be cited as the "New York Oil Windfall Profits 2 Tax Act of 2023". 3 § 2. The tax law is amended by adding a new section 301-n to read as 4 follows: 5 § 301-n. Windfall profits tax. (a) Imposition of tax. Notwithstanding 6 any other provision of law, rule or regulation to the contrary, in addi- 7 tion to any other tax imposed under this article, in each calendar quar- 8 ter there is hereby imposed on any covered taxpayer an excise tax at the 9 rate determined under subdivision (b) of this section on: 10 (1) Each barrel of taxable crude oil extracted by the taxpayer within 11 the state and removed from the property of such taxpayer during the 12 calendar quarter, and 13 (2) Each barrel of taxable crude oil entered into the state during the 14 calendar quarter by the taxpayer for consumption, use or warehousing. 15 (b) Rate of tax. The rate of tax imposed by this section on any barrel 16 of taxable crude oil for any calendar quarter is the product of: 17 (1) Fifty percent, and 18 (2) The excess, if any, of: 19 (A) the average price of a barrel of Brent crude oil over the covered 20 calendar quarter, over 21 (B) the average price of a barrel of Brent crude oil over the period 22 beginning on January first, two thousand fifteen, and ending on December 23 thirty-first, two thousand nineteen. 24 (c) Withholding and deposit of tax. The commissioner shall provide 25 such rules as are necessary for the withholding and deposit of the tax 26 imposed under this section on any taxable crude oil. 27 (d) Records and information. Each taxpayer liable for tax under this 28 section shall keep such records, make such returns, and furnish such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16063-02-2S. 9491 2 1 information to the commissioner and to such other persons having an 2 interest in the taxable crude oil with respect to such oil as the 3 commissioner may by regulations prescribe. 4 (e) Return of windfall profit tax. The commissioner shall provide for 5 the filing and the time of such filing of the return of the tax imposed 6 under this section. 7 (f) Regulations. The commissioner shall prescribe such rules and regu- 8 lations as may be necessary or appropriate to carry out the purposes of 9 this section. 10 (g) Inflation adjustment. (1) In general. In the case of a calendar 11 quarter in any taxable year beginning after two thousand twenty-two, the 12 amount determined under subdivision (b) of this section shall be 13 increased by an amount equal to: (i) such dollar amount, multiplied by 14 (ii) the cost-of-living adjustment determined under subsection (f) of 15 section one of the internal revenue code for the calendar year in which 16 the taxable year begins, determined by substituting two thousand twen- 17 ty-one for "2016" in section 1 (f)(3)(A)(ii) of the internal revenue 18 code. 19 (2) Rounding. If any dollar amount after being increased under para- 20 graph one of this subdivision, is not a multiple of fifty cents, such 21 dollar amount shall be rounded to the next lowest multiple of one cent. 22 (h) Fractional part of barrel. In the case of a fraction of a barrel, 23 the tax imposed by this section shall be the same fraction of the amount 24 of such tax imposed on the whole barrel. 25 (i) Definitions and special rules. As used in this section, the 26 following terms shall have the following meanings: 27 (1) "Applicable period" shall mean from the first of the month next 28 succeeding the effective date of this section until December thirty- 29 first, two thousand twenty-three. 30 (2) "Covered taxpayer" shall mean: 31 (A) Any taxpayer if, with respect to any calendar quarter: 32 (i) the average daily number of barrels of taxable crude oil extracted 33 and imported by such taxpayer for calendar year two thousand nineteen 34 exceeded three hundred thousand barrels, or 35 (ii) the average daily number of barrels of taxable crude oil 36 extracted and imported by the taxpayer for the calendar quarter exceeds 37 three hundred thousand barrels; and 38 (B) Every petroleum business subject to the tax imposed pursuant to 39 section three hundred one-a of this article for the privilege of engag- 40 ing in business, doing business, employing capital, owning or leasing 41 property, or maintaining an office in this state. 42 (3) "Taxable crude oil" shall include crude oil and crude oil conden- 43 sates. 44 (4) "Barrel" shall mean forty-two United States gallons. 45 (5) "Sale" shall have the same meaning as such term is defined in 46 section two hundred eighty-two of this chapter. 47 (j) Rebates and credits. (1) Income tax credit. In the case of an 48 eligible individual, there shall be allowed an income tax credit for 49 each taxable year beginning after the date of the enactment of this 50 section, an amount equal to the sum of the gasoline price rebate amount 51 for calendar quarters beginning in such taxable year. 52 (2) Rebate amount. For the purposes of this subdivision, "gasoline 53 price rebate amount" means, with respect to any taxpayer for any calen- 54 dar quarter beginning in a taxable year, an amount determined by the 55 commissioner not later than thirty days after the end of such calendar 56 quarter taking into account the number of eligible individuals and theS. 9491 3 1 amount of revenue in the "protect New Yorkers from gas price surges 2 fund" established pursuant to section ninety-nine-pp of the state 3 finance law and resulting from the tax imposed by this section for the 4 preceding calendar quarter. 5 (3) Identification requirements. Notwithstanding any contrary 6 provision of this subdivision, the rebate amount authorized hereunder 7 shall be treated as being zero unless the taxpayer includes such taxpay- 8 er's full valid identification number on the return filed for the taxa- 9 ble year. 10 (4) Filing. Solely for purposes of this subdivision, a return of tax 11 shall not be treated as filed until such return has been processed by 12 the internal revenue service. 13 (5) Special rule for joint returns. In the case of an eligible indi- 14 vidual filing a joint return, the gasoline price rebate amount shall be 15 one hundred fifty percent of the amount determined under paragraph two 16 of this subdivision with respect to other taxpayers. 17 (6) Application to certain individuals. In the case of any individual 18 who, at the time of any determination made pursuant to paragraph three 19 of this subdivision, has not filed a tax return for the applicable taxa- 20 ble year or for the year following the applicable taxable year the 21 commissioner shall determine the rebate amount on the basis of informa- 22 tion available to the commissioner, and shall, on the basis of such 23 information, determine the advance refund amount with respect to such 24 individual without regard to paragraph two of subdivision (b) of this 25 section, unless the commissioner has reason to know that such amount 26 would otherwise be reduced by reason of such subdivision. 27 (7) Limitation based on adjusted gross income. The amount of the cred- 28 it allowed by this subdivision shall be reduced, but not below zero, by 29 five percent of so much of the eligible individual's adjusted gross 30 income as exceeds: 31 (A) $160,000 in the case of a joint return; 32 (B) $115,000 in the case of a head of household; and 33 (C) $80,000 in any other case. 34 (8) Eligible individuals. (A) For the purposes of this section, the 35 term "eligible individual" shall mean any individual state resident 36 other than: (i) a nonresident alien individual, (ii) an individual who 37 is a dependent of another taxpayer for a taxable year beginning in the 38 calendar year in which the individual's taxable year begins, and (iii) 39 an estate or trust. 40 (B) The term "dependent" shall have the same as such term is defined 41 in section one hundred fifty-two of the internal revenue code. 42 (k) Special rules; credit treated as refundable. The credit allowed by 43 subdivision (m) of this section shall be treated as refundable pursuant 44 to the applicable provisions of subpart C of part IV of subchapter A of 45 chapter 1 of subtitle A of title twenty-six of the internal revenue 46 code. 47 (l) Joint returns. Except as provided by the commissioner, in the case 48 of a refund or credit made or allowed pursuant to subdivision (m) of 49 this section with respect to a joint return, half of such refund or 50 credit shall be treated as having been made or allowed to each individ- 51 ual filing such return. 52 (m) Advance refunds and credits. (1) Subject to paragraph four of this 53 subdivision, for any rebate taxable year, each individual who was an 54 eligible individual for the applicable taxable year shall be treated as 55 having made a payment against the tax imposed by article twenty-two ofS. 9491 4 1 this chapter for such applicable taxable year in an amount equal to the 2 advance refund amount for such rebate taxable year. 3 (2) Advance refund amount. For purposes of paragraph one of this 4 subdivision, the advance refund amount for any rebate taxable year is 5 the amount that would be allowed as a credit under this section for the 6 applicable taxable year if this section were applied to such applicable 7 taxable year, without regard to any effective date, using the gasoline 8 price rebate amount for the refund taxable year. 9 (3) Timing and manner of payments. The commissioner shall, subject to 10 the provisions of this section, refund or credit any overpayment attrib- 11 utable to this section and determined with respect to any calendar quar- 12 ter not later than ninety days after the end of such calendar quarter. 13 No refund or credit shall be made or allowed under this subdivision with 14 respect to any applicable taxable year after the last day of the rebate 15 taxable year. 16 (4) Application to individuals who have filed a return of tax for the 17 year after the applicable taxable year. (A) Returns filed at time of 18 initial determination. If, at the time of any determination made pursu- 19 ant to paragraph three of this subdivision, the individual referred to 20 in paragraph one of this subdivision has filed a return of tax for the 21 individual's first taxable year beginning after the applicable taxable 22 year, the provisions of paragraph one of this subdivision shall be 23 applied with respect to such individual by substituting "taxable year 24 following the applicable taxable year" for "applicable taxable year". 25 (B) Additional payment. (i) In the case of any individual who files, 26 before the additional payment determination date, a return of tax for 27 such individual's first taxable year beginning after the applicable 28 taxable year, the commissioner shall make a payment, in addition to any 29 payment made under paragraph one of this subdivision, to such individual 30 equal to the excess, if any, of: 31 a. the amount which would be determined under paragraph one of this 32 subdivision, after the application of subparagraph (A) of this paragraph 33 by applying paragraph one of this subdivision as of the additional 34 payment determination date, over 35 b. the amount of any payment made with respect to such individual 36 under paragraph one of this subdivision. 37 (ii) Determination date. The term additional payment determination 38 date means the earlier of: 39 a. the date which is ninety days after the date specified in section 40 6072 (a) of the internal revenue code with respect to returns for the 41 taxable year following the applicable taxable year, or 42 b. September first of the calendar year following the applicable taxa- 43 ble year as defined in subdivision (n) of this section. 44 (n) Applicable taxable year. For the purposes of this section: 45 (1) The term "rebate taxable year" means the taxable year for which a 46 credit is allowed under this section. 47 (2) The term "applicable taxable year" means the second taxable year 48 preceding the rebate taxable year. 49 (o) Regulations. The commissioner shall prescribe such regulations or 50 other guidance as may be necessary or appropriate to carry out the 51 purposes of this section, including, but not limited to: 52 (1) regulations or other guidance providing taxpayers the opportunity 53 to provide the commissioner information sufficient to allow the commis- 54 sioner to make payments to such taxpayers under subdivision (m) of this 55 section, including the determination of the amount of such payment, if 56 such information is not otherwise available to the commissioner; andS. 9491 5 1 (2) regulations or other guidance to ensure to the maximum extent 2 administratively practicable that, in determining the amount of any 3 credit under subdivision (j) of this section and any credit or refund 4 under subdivision (m) of this section, an individual is not taken into 5 account more than once, including by different taxpayers and including 6 by reason of a change in joint return status or dependent status between 7 the taxable year for which an advance refund amount is determined and 8 the taxable year for which a credit under this section is determined. 9 (p) Outreach. The commissioner shall carry out a robust and comprehen- 10 sive outreach program to ensure that all covered taxpayers, as defined 11 in subdivision (i) of this section learn of their eligibility for the 12 advance refunds and credits under subdivision (m) of this section, are 13 advised of the opportunity to receive such advance refunds and credits 14 as provided under subdivision (o) of this section, and are provided 15 assistance in applying for such advance refunds and credits. 16 (q) Protect New Yorkers from gas price surges fund. All taxes, and any 17 interest and penalties relating thereto, collected or received with 18 respect to the oil windfall profits tax imposed by this section shall be 19 deposited into the "protect New Yorkers from gas price surges fund" 20 established pursuant to section ninety-nine-pp of the state finance law 21 and shall be administered in accordance with the applicable provisions 22 thereof. 23 (r) Local option. Notwithstanding any contrary provision of law, a 24 municipality may make the election to impose an excise tax on any 25 covered taxpayer, for the applicable period, at the rate as determined 26 under subdivision (b) of this section by local law, ordinance or resol- 27 ution, if such municipality mails, by certified or registered mail, a 28 certified copy of such local law, ordinance or resolution to the commis- 29 sioner at his or her office in Albany no later than the Wednesday imme- 30 diately preceding the first day of the applicable period. 31 § 3. The state finance law is amended by adding a new section 99-pp to 32 read as follows: 33 § 99-pp. Protect New Yorkers from gas price surges fund. 1. There is 34 hereby established in the joint custody of the commissioner of taxation 35 and finance and the comptroller, a special fund to be known as the 36 "protect New Yorkers from gas price surges fund". 37 2. Such fund shall consist of all revenues received by the department 38 of taxation and finance, pursuant to the provisions of section three 39 hundred one-n of the tax law, and all other moneys appropriated, credit- 40 ed, or transferred thereto from any other fund or source pursuant to 41 law. For each state fiscal year, there shall be appropriated to the fund 42 by the state, in addition to all other moneys required to be deposited 43 into such fund, an amount equal to the amounts of moneys collected and 44 deposited into the fund pursuant to section three hundred one-n of the 45 tax law, and the amounts of moneys received and deposited into the fund 46 from grants, gifts and bequests during the preceding calendar year, as 47 certified by the comptroller. Nothing in this section shall prevent the 48 state from soliciting and receiving grants, gifts or bequests for the 49 purposes of the fund as defined in this section and depositing them into 50 the fund according to law. 51 3. Moneys shall be paid out of the fund on the audit and warrant of 52 the comptroller on vouchers approved and certified by the commissioner 53 of taxation and finance. Any interest received by the comptroller on 54 moneys on deposit in the "protect New Yorkers from gas price surges 55 fund" shall be retained in and become part of such fund.S. 9491 6 1 4. Notwithstanding any contrary provision of this section, the commis- 2 sioner of taxation and finance shall pay from time to time moneys of the 3 fund to the dedicated highway and bridge trust fund established pursuant 4 to section eighty-nine-b of this article in an amount equal to the 5 amount of refunds provided under section three hundred one-n of the tax 6 law. 7 § 4. This act shall take effect immediately and shall apply to calen- 8 dar quarters commencing on and after such date.
