Bill Text: NY A04154 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to tax on sales of motor fuel and petroleum products; repeals certain provisions of law relating thereto.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A04154 Detail]
Download: New_York-2023-A04154-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4154 2023-2024 Regular Sessions IN ASSEMBLY February 10, 2023 ___________ Introduced by M. of A. KELLES, GONZALEZ-ROJAS, MITAYNES, SIMON, WILLIAMS, L. ROSENTHAL, MAMDANI -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to tax on sales of motor fuel and petroleum products; to repeal paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) of section 301-a of the tax law, relat- ing to manufacturing gallonage for purposes of the imposition of certain taxes; to repeal subdivisions (i), (j), and (l) of section 301-c of the tax law relating to reimbursement; to repeal section 301-d of the tax law relating to a utility credit or reimbursement; to repeal subdivision (f) of section 301-e of the tax law relating to an aviation fuel business which services four or more cities; to repeal subparagraph (xi) of paragraph 3 of subdivision (c) of section 1105 of the tax law relating to services rendered with respect to certain property; to repeal paragraph 9 of subdivision (a) of section 1115 of the tax law relating to fuel sold to an airline for use in its airplanes; and to amend the tax law, in relation to making conforming technical changes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (m) of section 301-a of the tax law, as added 2 by section 20 of part K of chapter 61 of the laws of 2011, is amended to 3 read as follows: 4 (m) Special rate adjustment for certain vessels. Notwithstanding any 5 provision of this section to the contrary, the use of non-highway diesel 6 motor fuel in the engine of a vessel to propel such vessel shall be 7 subject to tax at the motor fuel and highway diesel motor fuel rate 8 provided for in this section, and shall be subject to the provisions of 9 section three hundred one-j of this article, including the adjustment 10 set forth in paragraph [four] three of subdivision (a) of such section 11 three hundred one-j. A credit or refund shall be available to the extent EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07826-01-3A. 4154 2 1 tax paid on gallonage used to propel any such vessel exceeds the amount 2 of tax due based on the tax rate set forth herein. Provided, however, 3 that the commissioner shall require such documentary proof to qualify 4 for any credit or reimbursement provided hereunder as the commissioner 5 deems appropriate. 6 § 2. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) 7 of section 301-a of the tax law are REPEALED. 8 § 3. Subdivisions (a) and (d) of section 301-b of the tax law, subdi- 9 vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of 10 subdivision (a) as amended by section 3 of part E of chapter 59 of the 11 laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by 12 section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi- 13 sion (d) as amended by section 21 of part K of chapter 61 of the laws of 14 2011, are amended to read as follows: 15 (a) Products. (1) [Kerosene sold or used by a petroleum business which16is registered under article twelve-A of this chapter as a distributor of17diesel motor fuel so long as (i) such product has not been blended or18mixed with any other product constituting diesel motor fuel or motor19fuel or a residual petroleum product and (ii) such product is not used20by the petroleum business as fuel to operate a motor vehicle or sold by21such petroleum business to a consumer for use as fuel to operate a motor22vehicle.23(2) Kero-jet fuel (i) sold by a petroleum business which is registered24under article twelve-A of this chapter as a distributor of diesel motor25fuel to a consumer for use exclusively as jet aircraft fuel or to a26petroleum business registered under such article twelve-A as a "distrib-27utor of kero-jet fuel only" where such fixed base operator is engaged28solely in making or offering to make retail sales not in bulk of kero-29jet fuel directly into the fuel tank of an airplane for the purpose of30operating such airplane, (ii) used by a petroleum business, registered31under article twelve-A of this chapter as a distributor of diesel motor32fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in33bulk by a petroleum business registered under article twelve-A of this34chapter as a "distributor of kero-jet fuel only" where such fuel is35delivered directly into the fuel tank of a jet airplane for use in the36operation of such airplane.37(3) Aviation gasoline, meeting the specifications set forth in Ameri-38can Standard Testing Material Specification D910 or Military Specifica-39tion MIL-G-5572, which is imported or caused to be imported into this40state by a petroleum business which is registered under article twelve-A41of this chapter as a distributor of motor fuel or produced, refined,42manufactured or compounded in this state by such a petroleum business.43(4) Residual petroleum product sold by a petroleum business registered44under this article as a residual petroleum product business if such45product is sold by such petroleum business to a consumer for use exclu-46sively as bunker fuel for vessels or if such product is used by such47petroleum business exclusively as bunker fuel in its own vessels.48(5) Liquefied petroleum gases, such as butane, ethane or propane.49(6)] E85 imported or caused to be imported into this state or 50 produced, refined, manufactured or compounded in this state by a petro- 51 leum business registered under article twelve-A of this chapter, as a 52 distributor of motor fuel, and then sold by such petroleum business and 53 delivered to a filling station and placed in a storage tank of such 54 filling station for such E85 to be dispensed directly into a motor vehi- 55 cle for use in the operation of such vehicle.A. 4154 3 1 [(7)] (i) Partial B20 exemption. B20 imported or caused to be imported 2 into this state or produced, refined, manufactured or compounded in this 3 state by a petroleum business registered under article twelve-A of this 4 chapter, as a distributor of diesel motor fuel, and then sold by such 5 petroleum business. 6 (ii) Calculation of partial exemption. The amount of the partial 7 exemption under this paragraph shall be determined by multiplying the 8 quantity of B20 times twenty percent of the applicable taxes otherwise 9 imposed by this article on such fuel. 10 [(8)] (2) CNG or hydrogen. 11 (d) Sales to consumers for heating purposes. [(1)] Total residential 12 heating exemption. Non-highway diesel motor fuel sold by a petroleum 13 business registered under article twelve-A of this chapter as a distrib- 14 utor of diesel motor fuel or residual petroleum product sold by a petro- 15 leum business registered under this article as a residual petroleum 16 product business to the consumer exclusively for residential heating 17 purposes only if such non-highway diesel motor fuel is delivered into a 18 storage tank which is not equipped with a hose or other apparatus by 19 which such fuel can be dispensed into the fuel tank of a motor vehicle 20 and such storage tank is attached to the heating unit burning such fuel. 21 [(2) Partial non-residential heating exemption. (A) Non-highway diesel22motor fuel sold by a petroleum business registered under article23twelve-A of this chapter as a distributor of diesel motor fuel or resi-24dual petroleum product sold by a petroleum business registered under25this article as a residual petroleum product business to the consumer26exclusively for heating, other than residential heating purposes only if27such non-highway diesel motor fuel is delivered into a storage tank28which is not equipped with a hose or other apparatus by which such fuel29can be dispensed into the fuel tank of a motor vehicle and such storage30tank is attached to the heating unit burning such fuel (B) Calculation31of partial exemption. The partial exemption under this paragraph shall32be determined by multiplying the quantity of non-highway diesel motor33fuel and residual petroleum product eligible for the exemption times the34sum of the then current rate of the supplemental tax imposed by section35three hundred one-j of this article and forty-six percent of the then36current rate of the tax imposed by section three hundred one-a of this37article, with respect to the specific non-highway diesel motor fuel or38residual petroleum product rate, as the case may be.] 39 § 4. The subdivision heading and paragraph 1 of subdivision (c) of 40 section 301-b of the tax law, as added by chapter 190 of the laws of 41 1990, are amended to read as follows: 42 Sales to [New York state and] the federal government. (1) Motor fuel 43 imported or caused to be imported into this state or produced, refined, 44 manufactured or compounded in this state by a petroleum business regis- 45 tered under article twelve-A of this chapter, as a distributor of motor 46 fuel, and then sold by such petroleum business to an organization 47 described in paragraph [one or] two of subdivision (a) of section eleven 48 hundred sixteen of this chapter where such motor fuel is used by such 49 organization for its own use or consumption. 50 § 5. The opening paragraph and subdivisions (a) and (b) of section 51 301-c of the tax law, the opening paragraph as amended by section 2 of 52 part T of chapter 59 of the laws of 2022, subdivision (a) as amended by 53 section 23 of part K of chapter 61 of the laws of 2011, and subdivision 54 (b) as amended by chapter 330 of the laws of 1991, are amended to read 55 as follows:A. 4154 4 1 A subsequent purchaser shall be eligible for reimbursement of tax with 2 respect to the following gallonage, subsequently sold by such purchaser 3 in accordance with subdivision (a), (b), (e), (h), [(j), (k), (n) or4(o)] (i), (k) or (l) of this section or used by such purchaser in 5 accordance with subdivision (c), (d), (f), (g), [(i), (l), (m)] (j) or 6 (q) of this section, which gallonage has been included in the measure of 7 the tax imposed by this article on a petroleum business: 8 (a) [Non-highway Diesel motor fuel used for heating purposes. (1)] 9 Total residential heating reimbursement. Non-highway Diesel motor fuel 10 purchased in this state and sold by such purchaser to a consumer for use 11 exclusively for residential heating purposes but only where (i) such 12 non-highway diesel motor fuel is delivered into a storage tank which is 13 not equipped with a hose or other apparatus by which such non-highway 14 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle 15 and such storage tank is attached to the heating unit burning such non- 16 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article 17 has been paid with respect to such non-highway diesel motor fuel and the 18 entire amount of such tax has been absorbed by such purchaser, and (iii) 19 such purchaser possesses documentary proof satisfactory to the commis- 20 sioner evidencing the absorption by it of the entire amount of the tax 21 imposed pursuant to this article. Provided, however, that the commis- 22 sioner is authorized, in the event that the commissioner determines that 23 it would not threaten the integrity of the administration and enforce- 24 ment of the tax imposed by this article, to provide a reimbursement with 25 respect to a retail sale to a consumer for residential heating purposes 26 of less than ten gallons of non-highway diesel motor fuel provided such 27 fuel is not dispensed into the tank of a motor vehicle. 28 [(2) Partial non-residential heating reimbursement. (A) Non-highway29Diesel motor fuel purchased in this state and sold by such purchaser to30a consumer for use exclusively for heating, other than for residential31heating purposes, but only where (i) such non-highway diesel motor fuel32is delivered into a storage tank which is not equipped with a hose or33other apparatus by which such non-highway Diesel motor fuel can be34dispensed into the fuel tank of a motor vehicle and such storage tank is35attached to the heating unit burning such non-highway Diesel motor fuel,36(ii) the tax imposed pursuant to this article has been paid with respect37to such non-highway diesel motor fuel and the entire amount of such tax38has been absorbed by such purchaser, and (iii) such purchaser possesses39documentary proof satisfactory to the commissioner evidencing the40absorption by it of the entire amount of the tax imposed pursuant to41this article.42(B) Calculation of partial reimbursement. Notwithstanding any other43provision of this article, the amount of the reimbursement under this44paragraph shall be determined by multiplying the quantity of non-highway45diesel motor fuel eligible for the reimbursement times the sum of the46then current rate of the supplemental tax imposed by section three47hundred one-j of this article and forty-six percent of the then current48rate of the tax imposed by section three hundred one-a of this article,49with respect to the non-highway diesel motor fuel rate, as the case may50be.] 51 (b) Sales to [New York state and] the federal government. Motor fuel 52 and diesel motor fuel purchased in this state and sold by such purchaser 53 in this state to an organization described in paragraph [one or] two of 54 subdivision (a) of section eleven hundred sixteen of this chapter where 55 (i) such motor fuel or diesel motor fuel is for such organization's own 56 use or consumption, (ii) the tax imposed pursuant to this article hasA. 4154 5 1 been paid with respect to such motor fuel or diesel motor fuel and the 2 entire amount of such tax has been absorbed by such purchaser and, (iii) 3 such purchaser possesses documentary proof satisfactory to the commis- 4 sioner of taxation and finance evidencing the absorption by it of the 5 entire amount of the tax imposed pursuant to this article. Provided, 6 however, that the commissioner [of taxation and finance] shall require 7 such documentary proof to qualify for any reimbursement of tax provided 8 by this section as the commissioner deems appropriate, including the 9 expansion of any certification required pursuant to section two hundred 10 eighty-five-a or two hundred eighty-five-b of this chapter to cover the 11 taxes imposed pursuant to this article. 12 § 5-a. The opening paragraph of section 301-c of the tax law, as 13 amended by section 3 of part T of chapter 59 of the laws of 2022, is 14 amended to read as follows: 15 A subsequent purchaser shall be eligible for reimbursement of tax with 16 respect to the following gallonage, subsequently sold by such purchaser 17 in accordance with subdivision (a), (b), (e), (h)[, (j)] or [(k)] (i) of 18 this section or used by such purchaser in accordance with subdivision 19 (c), (d), (f), (g), [(i), (l), (m)] (j) or (q) of this section, which 20 gallonage has been included in the measure of the tax imposed by this 21 article on a petroleum business: 22 § 6. Subdivisions (i), (j) and (l) of section 301-c of the tax law are 23 REPEALED. 24 § 7. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c of 25 the tax law are redesignated subdivisions (i), (j), (k), (l), (m)and 26 (n). 27 § 8. Section 301-d of the tax law is REPEALED. 28 § 9. Paragraph 4 of subdivision (e) of section 301-e of the tax law, 29 as added by chapter 190 of the laws of 1990, is amended to read as 30 follows: 31 (4) "aviation fuel" means kero-jet fuel and aviation gasoline [(as32described in paragraph three of subdivision (a) of section three hundred33one-b of this article)] meeting the specifications set forth in American 34 Standard Testing Material Specification D910 or Military Specification 35 MIL-G-5572. Provided, further the term kero-jet shall not include naph- 36 tha based aviation fuel refined and used solely for propelling military 37 jet airplanes of the United States Armed Forces. 38 § 10. Subdivision (f) of section 301-e of the tax law is REPEALED. 39 § 11. Subdivision (a) of section 301-j of the tax law, as amended by 40 chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by 41 section 29 of part K of chapter 61 of the laws of 2011, is amended to 42 read as follows: 43 (a) Imposition of tax. (1) In addition to the taxes imposed by 44 sections three hundred one-a and three hundred one-e of this article, 45 there is hereby imposed upon every petroleum business subject to tax 46 imposed under section three hundred one-a of this article and every 47 aviation fuel business subject to the aviation gasoline component of the 48 tax imposed under section three hundred one-e of this article, a supple- 49 mental monthly tax for each or any part of a taxable month at a rate of 50 six and eight-tenths cents per gallon with respect to the products 51 included in each component of the taxes imposed by such section three 52 hundred one-a and the aviation gasoline component of the tax imposed by 53 such section three hundred one-e of this article. 54 (2) [Provided, however, "commercial gallonage," as such term is55defined in subdivision (k) of section three hundred of this article,56shall be exempt from the measure of the tax imposed under this section.A. 4154 6 1(3)] Provided, further, "railroad diesel," as such term is defined in 2 subdivision (l) of section three hundred of this article, shall be 3 exempt from the measure of the tax imposed under this section. 4 [(4)] (3) Provided, further, a separate per gallon rate shall apply 5 with respect to highway diesel motor fuel. Such rate shall be determined 6 by taking the adjusted rate per gallon of tax imposed under paragraph 7 one of this subdivision as adjusted in accordance with paragraph [five] 8 four of this subdivision and subtracting therefrom one and three-quar- 9 ters cents. Commencing January first, two thousand twelve, and each 10 January thereafter, the per gallon rate applicable to highway diesel 11 motor fuel shall be the adjusted rate under paragraph one of this subdi- 12 vision as adjusted in accordance with paragraph [five] four of this 13 subdivision which commences on such date minus one and three-quarters 14 cents. The resulting rate under this paragraph shall be expressed in 15 hundredths of a cent. 16 [(5)] (4) Except as herein provided, the tax imposed under this 17 section shall be calculated in the same respective manner as the taxes 18 imposed by section three hundred one-a and section three hundred one-e 19 of this article. Except [for section three hundred one-d and except] as 20 otherwise provided in this section, all the provisions of this article 21 applicable to the taxes imposed by sections three hundred one-a and 22 three hundred one-e of this article, shall apply with respect to the 23 supplemental tax imposed by this section to the same extent as if it 24 were respectively imposed by such sections. 25 § 12. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of 26 subdivision (c) of section 1105 of the tax law, subparagraph (ix) of 27 paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph 28 (x) of paragraph 3 as added by section 1 of part FF of chapter 407 of 29 the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws 30 of 2005, are amended to read as follows: 31 (ix) [such services rendered with respect to tangible property used or32consumed directly and predominantly in the production for sale of gas or33oil by manufacturing, processing, generating, assembling, refining,34mining, or extracting.35(x)] such services rendered with respect to property described in 36 paragraph twelve-a of subdivision (a) of section eleven hundred fifteen 37 of this article. 38 (5) Maintaining, servicing or repairing real property, property or 39 land, as such terms are defined in the real property tax law, whether 40 the services are performed in or outside of a building, as distinguished 41 from adding to or improving such real property, property or land, by a 42 capital improvement as such term capital improvement is defined in para- 43 graph nine of subdivision (b) of section eleven hundred one of this 44 article, but excluding (i) services rendered by an individual who is not 45 in a regular trade or business offering his services to the public, (ii) 46 [services rendered directly with respect to real property, property or47land used or consumed directly and predominantly in the production for48sale of gas or oil by manufacturing, processing, generating, assembling,49refining, mining, or extracting, (iii)] services rendered with respect 50 to real property, property or land used or consumed predominantly either 51 in the production of tangible personal property, for sale, by farming or 52 in a commercial horse boarding operation, or in both and [(iv)] (iii) 53 services of removal of waste material from a facility regulated as a 54 transfer station or construction and demolition debris processing facil- 55 ity by the department of environmental conservation, provided that the 56 waste material to be removed was not generated by the facility.A. 4154 7 1 § 13. Subparagraph (xi) of paragraph 3 of subdivision (c) of section 2 1105 of the tax law is REPEALED. 3 § 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is 4 REPEALED. 5 § 15. Paragraph (ii) of subdivision (b) of section 1115 of the tax 6 law, as amended by section 30 of part Y of chapter 63 of the laws of 7 2000, is amended to read as follows: 8 (ii) [Gas, electricity] Electricity, refrigeration and steam, and 9 [gas,] electric, refrigeration and steam service of whatever nature for 10 use or consumption directly and exclusively in research and development 11 in the experimental or laboratory sense shall be exempt from the tax 12 imposed under subdivision (b) of section eleven hundred five and the 13 compensating use tax imposed under section eleven hundred ten of this 14 article. Such research and development shall not be deemed to include 15 the ordinary testing or inspection of materials or products for quality 16 control, efficiency surveys, management studies, consumer surveys, 17 advertising, promotions or research in connection with literary, histor- 18 ical or similar projects. 19 § 16. Paragraph 1 of subdivision (c) of section 1115 of the tax law, 20 as amended by section 7 of part B of chapter 63 of the laws of 2000, is 21 amended to read as follows: 22 (1) [Fuel, gas, electricity] Electricity, refrigeration and steam, and 23 [gas,] electric, refrigeration and steam service of whatever nature for 24 use or consumption directly and exclusively in the production of tangi- 25 ble personal property, [gas,] electricity, refrigeration or steam, for 26 sale, by manufacturing, processing, assembling, generating, refining, 27 mining or extracting shall be exempt from the taxes imposed under subdi- 28 visions (a) and (b) of section eleven hundred five and the compensating 29 use tax imposed under section eleven hundred ten of this article. 30 § 17. Subdivision (j) of section 1115 of the tax law, as amended by 31 section 41 of part K of chapter 61 of the laws of 2011, is amended to 32 read as follows: 33 (j) The exemptions provided in this section shall not apply to the tax 34 required to be prepaid pursuant to the provisions of section eleven 35 hundred two of this article nor to the taxes imposed by sections eleven 36 hundred five and eleven hundred ten of this article with respect to 37 receipts from sales and uses of motor fuel or diesel motor fuel, [except38that the exemptions provided in paragraphs nine and forty-two of subdi-39vision (a) of this section shall apply to the tax required to be prepaid40pursuant to the provisions of section eleven hundred two of this article41and to the taxes imposed by sections eleven hundred five and eleven42hundred ten of this article with respect to sales and uses of kero-jet43fuel,] CNG, hydrogen and E85, provided, however, the exemption allowed 44 for E85 shall be subject to the additional requirements provided in 45 section eleven hundred two of this article with respect to E85. The 46 exemption provided in subdivision (c) of this section shall apply to 47 sales and uses of non-highway diesel motor fuel but only if all of such 48 fuel is consumed other than on the public highways of this state. The 49 exemption provided in subdivision (c) of this section shall apply to 50 sales and uses of non-highway diesel motor fuel for use or consumption 51 either in the production for sale of tangible personal property by farm- 52 ing or in a commercial horse boarding operation, or in both but only if 53 all of such fuel is consumed other than on the public highways of this 54 state (except for the use of the public highways to reach adjacent farm- 55 lands or adjacent lands used in a commercial horse boarding operation, 56 or both).A. 4154 8 1 § 17-a. Subdivision (j) of section 1115 of the tax law, as amended by 2 section 41-a of part K of chapter 61 of the laws of 2011, is amended to 3 read as follows: 4 (j) The exemptions provided in this section shall not apply to the tax 5 required to be prepaid pursuant to the provisions of section eleven 6 hundred two of this article nor to the taxes imposed by sections eleven 7 hundred five and eleven hundred ten of this article with respect to 8 receipts from sales and uses of motor fuel or diesel motor fuel[, except9that the exemption provided in paragraph nine of subdivision (a) of this10section shall apply to the tax required to be prepaid pursuant to the11provisions of section eleven hundred two of this article and to the12taxes imposed by sections eleven hundred five and eleven hundred ten of13this article with respect to sales and uses of kero-jet fuel]. The 14 exemption provided in subdivision (c) of this section shall apply to 15 sales and uses of non-highway diesel motor fuel but only if all of such 16 fuel is consumed other than on the public highways of this state. The 17 exemption provided in subdivision (c) of this section shall apply to 18 sales and uses of non-highway diesel motor fuel for use or consumption 19 either in the production for sale of tangible personal property by farm- 20 ing or in a commercial horse boarding operation, or in both but only if 21 all of such fuel is consumed other than on the public highways of this 22 state (except for the use of the public highways to reach adjacent farm- 23 lands or adjacent lands used in a commercial horse boarding operation, 24 or both). 25 § 18. Subdivision (s) of section 1115 of the tax law, as added by 26 chapter 201 of the laws of 1995, is redesignated subdivision (p). 27 § 19. Subdivision (w) of section 1115 of the tax law, as added by 28 section 32 of part Y of chapter 63 of the laws of 2000, is amended to 29 read as follows: 30 (w) Receipts from the sale of [gas or] electricity or [gas or] elec- 31 tric service of whatever nature and consideration given or contracted to 32 be given for, or for the use of, [gas or] electricity or [gas or] elec- 33 tric service of whatever nature purchased for use or consumption direct- 34 ly and exclusively to provide [gas or] electric service of whatever 35 nature consisting of operating [a gas pipeline or gas distribution line36or] an electric transmission or distribution line [and ensuring the37necessary working pressure in an underground gas storage facility] shall 38 be exempt from sales and compensating use taxes imposed by this article. 39 Such exempt [gas or] electricity or [gas or] electric service of whatev- 40 er nature shall include, but shall not be limited to, such [gas or] 41 electricity or [gas or] electric service of whatever nature used or 42 consumed directly and exclusively to (1) [ensure necessary working pres-43sure in a gas pipeline used to transport, transmit or distribute gas,44(2) operate compressors used to transport, transmit or distribute gas45through such a gas pipeline or distribution line or used to ensure46necessary working pressure in such a storage facility, (3) operate heat-47ers to prevent gas in such a pipeline or distribution line from freez-48ing, (4) operate equipment which removes impurities and moisture from49gas in such a pipeline or distribution line, (5)] operate substations 50 and equipment related to electric transmission and distribution lines 51 such as transformers, capacitors, meters, switches, communication 52 devices and heating and cooling equipment, and [(6)] (2) ensure the 53 reliability of electricity or electric service transmitted or distrib- 54 uted through such lines, for example, by operating reserve capacity 55 machinery and equipment.A. 4154 9 1 § 20. Subdivision (k) of section 300 of the tax law, as amended by 2 section 17 of part K of chapter 61 of the laws of 2011, is amended to 3 read as follows: 4 (k) "Commercial gallonage" means gallonage (1) which is non-highway 5 diesel motor fuel or residual petroleum product, (2) [which is included6in the full measure of the non-highway diesel motor fuel component or7the residual petroleum product component of the tax imposed under8section three hundred one-a of this article, (3)] which does not (and 9 will not) qualify [(A) for the utility credit or reimbursement provided10for in section three hundred one-d of this article, (B)] (A) as "manu- 11 facturing gallonage", as such term is defined in subdivision (m) of this 12 section, [(C)] or (B) for the not-for-profit organization exemption 13 provided for in subdivision (h) of section three hundred one-b of this 14 article, [or (D) for the heating exemption provided for in paragraph two15of subdivision (d) of section three hundred one-b of this article or the16heating reimbursement provided for in paragraph two of subdivision (a)17of section three hundred one-c of this article,] and [(4)] (3) which 18 will not be used nor has been used in the fuel tank connecting with the 19 engine of a vessel. No gallonage shall qualify as "commercial gallonage" 20 where such gallonage is eligible for the [(i) utility credit or21reimbursement under such section three hundred one-d of this article,22(ii) "manufacturing exemption" under paragraph three of subdivision (f)23of section three hundred one-a of this article, (iii)] not-for-profit 24 organization exemption under subdivision (h) of section three hundred 25 one-b of this article[, or (iv) heating exemption provided for in para-26graph two of subdivision (d) of section three hundred one-b of this27article or the heating reimbursement provided for in paragraph two of28subdivision (a) of section three hundred one-c of this article]. The 29 commissioner shall require such documentary proof to substantiate the 30 classification of product as "commercial gallonage" as the commissioner 31 deems appropriate. 32 § 21. Paragraph 1 of subdivision (f) of section 301-b of the tax law, 33 as amended by section 21 of part K of chapter 61 of the laws of 2011, is 34 amended to read as follows: 35 (1) Residual petroleum product and non-highway diesel motor fuel sold 36 to an electric corporation, [as described in subdivision (a) of section37three hundred one-d of this article,] as defined in subdivision thirteen 38 of section two of the public service law, subject to the supervision of 39 the department of public service, which is registered with the depart- 40 ment as a petroleum business tax direct pay permittee, and used by such 41 electric corporation to fuel generators for the purpose of manufacturing 42 or producing electricity where such electric corporation provides a copy 43 of a direct pay permit authorized and issued by the commissioner, to the 44 petroleum business making such sale. If so registered, such corporation 45 shall be a taxpayer under this article and (i) such electric corporation 46 shall file a return monthly and pay the applicable tax under this arti- 47 cle, after the application of allowable credits, on all such purchases 48 directly to the commissioner, (ii) such electric corporation shall be 49 subject to all of the provisions of this article relating to the respon- 50 sibilities and liabilities of taxpayers under this article with respect 51 to such residual petroleum product and non-highway diesel motor fuel. 52 § 22. This act shall take effect immediately and shall apply to all 53 tax years commencing on or after the first of January next succeeding 54 the date on which it shall have become a law; provided, however, that: 55 (a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of 56 section 301-b made by section three of this act shall not affect theA. 4154 10 1 expiration and repeal of such paragraphs and shall expire and be deemed 2 repealed therewith; 3 (b) the amendments to the opening paragraph of section 301-c of the 4 tax law as made by section five of this act shall be subject to the 5 expiration and reversion of such paragraph pursuant to section 19 of 6 part W-1 of chapter 109 of the laws of 2006, as amended, when upon such 7 date the provisions of section five-a of this act shall take effect; 8 (c) the amendments to subdivisions (n) and (o) of section 301-c made 9 by section seven of this act shall not affect the expiration and repeal 10 of such subdivisions and shall expire and be deemed repealed therewith; 11 and 12 (d) the amendments to subdivision (j) of section 1115 of the tax law 13 made by section seventeen of this act shall be subject to the expiration 14 and reversion of such subdivision pursuant to section 19 of part W-1 of 15 chapter 109 of the laws of 2006, as amended, when upon such date the 16 provisions of section seventeen-a of this act shall take effect.
