Bill Text: NY A04930 | 2019-2020 | General Assembly | Introduced
Bill Title: Eliminates state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizes localities to eliminate such taxes at the local level.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A04930 Detail]
Download: New_York-2019-A04930-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4930 2019-2020 Regular Sessions IN ASSEMBLY February 5, 2019 ___________ Introduced by M. of A. TAGUE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to eliminating state sales and compensating use taxes on biodiesel products produced, processed and/or distributed in New York state and authorizing localities to eliminate such taxes at the local level The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1-a of section 289-c of the tax law is amended 2 by adding a new paragraph (e) to read as follows: 3 (e) (i) Any person may exclude the amount of the tax or taxes imposed 4 by this article on biodiesel products produced, processed and/or 5 distributed in New York state from the selling price thereof if such 6 biodiesel product is delivered to a filling station and placed in a 7 storage tank of such filling station for such biodiesel product to be 8 dispensed directly into a motor vehicle for use in the operation of such 9 vehicle. Any person making a sale of such biodiesel product under the 10 circumstances described herein, whereby the tax or taxes otherwise 11 imposed by this article have not been passed through to the purchaser, 12 shall be allowed a refund or credit of the taxes imposed by this article 13 in the amount of such tax or taxes paid by such person on such biodiesel 14 product being sold or included in the price paid by such person for such 15 fuel. Claims for refunds or credits shall be presented, and refunds or 16 credits shall be made, only as authorized by the commissioner under such 17 rules and regulations as the commissioner may prescribe. 18 (ii) Any person may exclude the amount of the tax or taxes imposed by 19 this article from the selling price with respect to any sale of such 20 biodiesel product. Any person making a sale of such biodiesel product 21 upon which such person does not pass on more than eighty percent of the 22 taxes otherwise imposed by this article, where such person has purchased 23 such biodiesel product with the entire amount of the taxes imposed by EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06397-01-9A. 4930 2 1 this article included in such person's purchase price, shall be entitled 2 to a refund or credit equal to the amount of the tax or taxes paid under 3 this article on such biodiesel product in excess of eighty percent of 4 the tax or taxes imposed by this article on diesel motor fuel. Claims 5 for refunds or credits shall be presented, and refunds or credits shall 6 be made, only as authorized by the commissioner under such rules and 7 regulations as the commissioner may prescribe. 8 (iii) Any person may exclude the amount of the tax or taxes imposed by 9 this article on such biodiesel product from the selling price thereof. 10 Any person making a sale of such biodiesel product, whereby the tax or 11 taxes otherwise imposed by this article have not been passed through to 12 the purchaser, shall be allowed a refund or credit of any taxes imposed 13 by this article in the amount of such tax or taxes paid by such person 14 on such biodiesel product being sold or included in the price paid by 15 such person for such biodiesel product. Claims for refunds or credits 16 shall be presented, and refunds or credits shall be made, only as 17 authorized by the commissioner under such rules and regulations as the 18 commissioner may prescribe. 19 § 2. Section 300 of the tax law is amended by adding a new subdivision 20 (t) to read as follows: 21 (t) The term "biodiesel" shall mean a diesel motor fuel substitute 22 produced from nonpetroleum renewable resources that meets the registra- 23 tion requirements for fuels and fuel additives established by the Envi- 24 ronmental Protection Agency under section 211 of the Clean Air Act (42 25 U.S.C. 7545) and that meets the American Society for Testing and Materi- 26 als D6751-02a Standard Specification for Biodiesel Fuel (B100) Blend 27 Stock for Distillate Fuels that has been produced, processed and/or 28 distributed in New York state. 29 § 3. Subdivision (a) of section 301-b of the tax law is amended by 30 adding a new paragraph 9 to read as follows: 31 (9)(i) Biodiesel exemption. Biodiesel products imported or caused to 32 be imported into this state or produced, refined, manufactured or 33 compounded in this state by a petroleum business registered under arti- 34 cle twelve-A of this chapter, as a distributor of diesel motor fuel, and 35 then sold by such petroleum business. 36 (ii) Calculation of exemption. The amount of the exemption under this 37 paragraph shall be determined by the applicable taxes otherwise imposed 38 by this article on such fuel. 39 § 4. Section 301-c of the tax law is amended by adding a new subdivi- 40 sion (q) to read as follows: 41 (q) Reimbursement for biodiesel products. (1) Biodiesel products 42 purchased in this state and sold by such purchaser in this state where 43 (i) the tax imposed pursuant to this article has been paid with respect 44 to such biodiesel products and the entire amount of such tax has been 45 absorbed by such purchaser, and (ii) such purchaser possesses documenta- 46 ry proof satisfactory to the commissioner evidencing the absorption by 47 it of the entire amount of the tax imposed pursuant to this article. 48 Provided, that the commissioner shall require such documentary proof to 49 qualify for any reimbursement provided hereunder as the commissioner 50 deems appropriate. 51 (2) Calculation of reimbursement. The amount of the reimbursement 52 under this subdivision shall be determined by the amount of the applica- 53 ble taxes otherwise imposed by this article on such fuel. 54 § 5. Subdivision (b) of section 1101 of the tax law is amended by 55 adding a new paragraph 39 to read as follows:A. 4930 3 1 (39) Biodiesel. A diesel motor fuel substitute produced from nonpe- 2 troleum renewable resources that meets the registration requirements for 3 fuels and fuel additives established by the Environmental Protection 4 Agency under section 211 of the Clean Air Act (42 U.S.C. 7545) and that 5 meets the American Society for Testing and Materials D6751-02a Standard 6 Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels 7 that has been produced, processed and/or distributed in New York state. 8 § 6. Subdivision (b) of section 1107 of the tax law is amended by 9 adding a new clause 12 to read as follows: 10 (12) Except as otherwise provided by law, the exemption provided in 11 paragraph forty-five of subdivision (a) of section eleven hundred 12 fifteen of this article relating to biodiesel products produced, proc- 13 essed and/or distributed in New York state shall be applicable pursuant 14 to a local law, ordinance or resolution adopted by a city subject to the 15 provisions of this section. Such city is empowered to adopt or repeal 16 such a local law, ordinance or resolution. Such adoption or repeal shall 17 also be deemed to amend any local law, ordinance or resolution enacted 18 by such a city imposing taxes pursuant to the authority of subdivision 19 (a) of section twelve hundred ten of this chapter. 20 § 7. Subdivision (a) of section 1115 of the tax law is amended by 21 adding a new paragraph 45 to read as follows: 22 (45) Biodiesel products produced, processed and/or distributed in New 23 York state. 24 § 8. Paragraph 1 of subdivision (a) of section 1210 of the tax law is 25 amended by adding a new closing paragraph to read as follows: 26 Any local law, ordinance or resolution enacted by any city, county or 27 school district, imposing the taxes authorized by this subdivision, 28 shall omit the biodiesel products produced, processed and/or distributed 29 in New York state exemption provided for in paragraph forty-five of 30 subdivision (a) of section eleven hundred fifteen of this chapter, 31 unless such city, county or school district elects otherwise; provided 32 that if such a city having a population of one million or more enacts 33 the resolution described in subdivision (p) of this section or repeals 34 such resolution, such resolution or repeal shall also be deemed to amend 35 any local law, ordinance or resolution enacted by such a city imposing 36 such taxes pursuant to the authority of this subdivision, whether or not 37 such taxes are suspended at the time such city enacts its resolution 38 pursuant to subdivision (p) of this section or at the time of any such 39 repeal; provided, further, that any such local law, ordinance or resol- 40 ution and section eleven hundred seven of this chapter, as deemed to be 41 amended in the event a city of one million or more enacts a resolution 42 pursuant to the authority of subdivision (p) of this section, shall be 43 further amended, as provided in section twelve hundred eighteen of this 44 subpart, so that the biodiesel products produced, processed and/or 45 distributed in New York state exemption in any such local law, ordinance 46 or resolution or in such section eleven hundred seven is the same as the 47 biodiesel products produced, processed and/or distributed in New York 48 state exemption in paragraph forty-five of subdivision (a) of section 49 eleven hundred fifteen of this chapter. 50 § 9. Subdivision (d) of section 1210 of the tax law, as amended by 51 section 4 of part WW of chapter 60 of the laws of 2016, is amended to 52 read as follows: 53 (d) A local law, ordinance or resolution imposing any tax pursuant to 54 this section, increasing or decreasing the rate of such tax, repealing 55 or suspending such tax, exempting from such tax the energy sources and 56 services described in paragraph three of subdivision (a) or of subdivi-A. 4930 4 1 sion (b) of this section or changing the rate of tax imposed on such 2 energy sources and services or providing for the credit or refund 3 described in clause six of subdivision (a) of section eleven hundred 4 nineteen of this chapter, or electing or repealing the exemption for 5 residential solar equipment and electricity in subdivision (ee) of 6 section eleven hundred fifteen of this article, or the exemption for 7 commercial solar equipment and electricity in subdivision (ii) of 8 section eleven hundred fifteen of this article, or electing or repealing 9 the exemption for commercial fuel cell electricity generating systems 10 equipment and electricity generated by such equipment in subdivision 11 (kk) of section eleven hundred fifteen of this article must go into 12 effect only on one of the following dates: March first, June first, 13 September first or December first; provided, that a local law, ordinance 14 or resolution providing for the exemption described in paragraph thirty 15 of subdivision (a) of section eleven hundred fifteen of this chapter or 16 repealing any such exemption or a local law, ordinance or resolution 17 providing for a refund or credit described in subdivision (d) of section 18 eleven hundred nineteen of this chapter or repealing such provision so 19 provided must go into effect only on March first; provided, further, 20 that a local law, ordinance or resolution providing for the exemption 21 described in paragraph forty-five of subdivision (a) of section eleven 22 hundred fifteen of this chapter or repealing any such exemption so 23 provided and a resolution enacted pursuant to the authority of subdivi- 24 sion (p) of this section providing such exemption or repealing such 25 exemption so provided may go into effect immediately. No such local 26 law, ordinance or resolution shall be effective unless a certified copy 27 of such law, ordinance or resolution is mailed by registered or certi- 28 fied mail to the commissioner at the commissioner's office in Albany at 29 least ninety days prior to the date it is to become effective. However, 30 the commissioner may waive and reduce such ninety-day minimum notice 31 requirement to a mailing of such certified copy by registered or certi- 32 fied mail within a period of not less than thirty days prior to such 33 effective date if the commissioner deems such action to be consistent 34 with the commissioner's duties under section twelve hundred fifty of 35 this article and the commissioner acts by resolution. Where the 36 restriction provided for in section twelve hundred twenty-three of this 37 article as to the effective date of a tax and the notice requirement 38 provided for therein are applicable and have not been waived, the 39 restriction and notice requirement in section twelve hundred twenty- 40 three of this article shall also apply. 41 § 10. Section 1210 of the tax law is amended by adding a new subdivi- 42 sion (p) to read as follows: 43 (p) Notwithstanding any other provision of state or local law, ordi- 44 nance or resolution to the contrary: 45 (1) Any city having a population of one million or more in which the 46 taxes imposed by section eleven hundred seven of this chapter are in 47 effect, acting through its local legislative body, is hereby authorized 48 and empowered to elect to provide the exemption from such taxes for the 49 same biodiesel products produced, processed and/or distributed in New 50 York state exempt from state sales and compensating use taxes described 51 in paragraph forty-five of subdivision (a) of section eleven hundred 52 fifteen of this chapter by enacting a resolution in the form set forth 53 in paragraph two of this subdivision; whereupon, upon compliance with 54 the provisions of subdivisions (d) and (e) of this section, such enact- 55 ment of such resolution shall be deemed to be an amendment to such 56 section eleven hundred seven and such section eleven hundred seven shallA. 4930 5 1 be deemed to incorporate such exemption as if it had been duly enacted 2 by the state legislature and approved by the governor. 3 (2) Form of Resolution: Be it enacted by the (insert proper title of 4 local legislative body) as follows: 5 Section one. Receipts from sales of and consideration given or 6 contracted to be given for purchases of biodiesel products produced, 7 processed and/or distributed in New York state exempt from state sales 8 and compensating use taxes pursuant to paragraph forty-five of subdivi- 9 sion (a) of section eleven hundred fifteen of the tax law shall also be 10 exempt from sales and compensating use taxes imposed in this jurisdic- 11 tion. 12 Section two. This resolution shall take effect, (insert the date) and 13 shall apply to sales made and uses occurring on and after that date 14 although made or occurring under a prior contract. 15 § 11. The commissioner of taxation and finance is hereby authorized to 16 implement the provisions of this act with respect to the elimination of 17 the imposition of sales tax, additional taxes, and supplemental taxes on 18 biodiesel products produced, processed and/or distributed in New York 19 state and all other taxes so addressed by this act. 20 § 12. This act shall take effect April 1, 2020.
