Bill Text: NY A05512 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities for hire to the general public from the tax on petroleum businesses and from sales and compensating use taxes.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-02-13 - referred to ways and means [A05512 Detail]

Download: New_York-2019-A05512-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 3719                                                  A. 5512
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                    February 13, 2019
                                       ___________
        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed,  and  when  printed to be committed to the Committee on Budget and
          Revenue
        IN ASSEMBLY -- Introduced by M. of A. THIELE, GARBARINO -- read once and
          referred to the Committee on Ways and Means
        AN ACT to amend the tax law, in  relation  to  exempting  fuel  used  in
          vessels  used directly and predominantly in a business providing sport
          fishing opportunities for hire to the general public from the  tax  on
          petroleum businesses and from sales and compensating use taxes
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  Section 300 of the tax law is  amended  by  adding  a  new
     2  subdivision (j-1) to read as follows:
     3    (j-1)  "commercial  sport  fishing  vessel"  means a vessel owned by a
     4  person, who has been issued and holds  a  marine  and  coastal  district
     5  party  and charter boat license pursuant to section 13-0336 of the envi-
     6  ronmental conservation law.
     7    § 2. Paragraph 2 of subdivision (b) of section 301-a of the  tax  law,
     8  as added by section 154 of part A of chapter 389 of the laws of 1997, is
     9  amended to read as follows:
    10    (2)  Motor  fuel  brought  into this state in the fuel tank connecting
    11  with the engine of a vessel propelled by the  use  of  such  motor  fuel
    12  shall  be  deemed  to  constitute  a  taxable  use of motor fuel for the
    13  purposes of this subdivision to the extent that the fuel is consumed  in
    14  the  operation of the vessel in this state. Provided, however, that this
    15  paragraph shall not apply to (i)  a  recreational  motor  boat  or  (ii)
    16  subsequent  to  August  thirty-first,  nineteen  hundred  ninety-four, a
    17  commercial fishing vessel (as defined  in  subdivision  (j)  of  section
    18  three  hundred  of this article) if the motor fuel imported and consumed
    19  in this state is used to operate such vessel while it is engaged in  the
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03218-01-9

        S. 3719                             2                            A. 5512
     1  harvesting  of fish for sale or (iii) a commercial sport fishing vessel,
     2  if such vessel provides its owner with at least fifty percent of his  or
     3  her  total  annual  income.    Provided, further, that tax liability for
     4  gallonage that a vessel consumes shall be the tax liability with respect
     5  to  the positive difference between the gallonage consumed in this state
     6  during the reporting period and the gallonage purchased  in  this  state
     7  (upon  which  the tax imposed by this section has been paid) during such
     8  period. A credit or refund shall be available  for  any  excess  of  tax
     9  liability  for  gallonage purchased in this state during the period over
    10  tax liability on gallonage so consumed in this state during such period,
    11  which excess shall be presumed to have been used outside this state.
    12    § 3. Subparagraph (B) of paragraph 1 of  subdivision  (c)  of  section
    13  301-a  of  the tax law, as amended by section 19 of part K of chapter 61
    14  of the laws of 2011, is amended to read as follows:
    15    (B) Highway diesel motor fuel brought into this state in the fuel tank
    16  connecting with the engine of a vessel propelled  by  the  use  of  such
    17  diesel  motor fuel shall be deemed to constitute a taxable use of diesel
    18  motor fuel for the purpose of this paragraph to the extent of  the  fuel
    19  that is consumed in the operation of the vessel in this state. Provided,
    20  however, this paragraph shall not apply to (i) a recreational motor boat
    21  or  (ii)  a  commercial fishing vessel (as defined in subdivision (j) of
    22  section three hundred of this article) if the highway diesel motor  fuel
    23  imported into and consumed in this state is used to operate such commer-
    24  cial  fishing  vessel  while it is engaged in the harvesting of fish for
    25  sale or (iii) a commercial sport fishing vessel, if such vessel provides
    26  its owner with at least fifty percent of his or her total annual income.
    27  Provided, further, that  tax  liability  for  gallonage  that  a  vessel
    28  consumes  in  this  state shall be the tax liability with respect to the
    29  positive difference between the gallonage consumed in this state  during
    30  the  reporting  period  and  the gallonage purchased in this state (upon
    31  which the tax imposed by this section has been paid) during such period.
    32  A credit or refund shall be available for any excess  of  tax  liability
    33  for gallonage purchased in this state during the period over tax liabil-
    34  ity  on  gallonage  so  consumed in this state during such period, which
    35  excess shall be presumed to have been used outside this state.
    36    § 4. The opening paragraph of section 301-c of the tax law, as amended
    37  by section 5 of part W-1 of chapter 109 of the laws of 2006, is  amended
    38  to read as follows:
    39    A subsequent purchaser shall be eligible for reimbursement of tax with
    40  respect  to the following gallonage, subsequently sold by such purchaser
    41  in accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or  (o)
    42  of this section or used by such purchaser in accordance with subdivision
    43  (c), (d), (f), (g), (g-1), (i), (l) or (m) of this section, which gallo-
    44  nage has been included in the measure of the tax imposed by this article
    45  on a petroleum business:
    46    § 5. The opening paragraph of section 301-c of the tax law, as amended
    47  by chapter 468 of the laws of 2000, is amended to read as follows:
    48    A subsequent purchaser shall be eligible for reimbursement of tax with
    49  respect  to the following gallonage, subsequently sold by such purchaser
    50  in accordance with subdivision (a), (b), (e), (h), (j) or  (k)  of  this
    51  section  or  used  by such purchaser in accordance with subdivision (c),
    52  (d), (f), (g), (g-1), (i), (l) or (m) of this section,  which  gallonage
    53  has been included in the measure of the tax imposed by this article on a
    54  petroleum business:
    55    §  6. Section 301-c of the tax law is amended by adding a new subdivi-
    56  sion (g-1) to read as follows:

        S. 3719                             3                            A. 5512
     1    (g-1) Diesel motor fuel and  motor  fuel  used  in  the  operation  of
     2  commercial  sport  fishing  vessels.  Diesel  motor  fuel  or motor fuel
     3  purchased in this state by the operator of a  commercial  sport  fishing
     4  vessel  at  retail  wherein such diesel motor fuel or such motor fuel is
     5  delivered  by a pump equipped with a hose directly into the fuel tank of
     6  a commercial sport fishing vessel to be used as fuel in the operation of
     7  such vessel for the purpose of providing sport fishing opportunities for
     8  hire to the general public; but only where (1) the tax imposed  pursuant
     9  to  this article has been paid with respect to such diesel motor fuel or
    10  such motor fuel and the entire amount of such tax has been  absorbed  by
    11  such purchaser, (2) such purchaser possesses documentary proof satisfac-
    12  tory  to  the commissioner evidencing the absorption by it of the entire
    13  amount of the tax imposed pursuant to this article, and (3)  the  vessel
    14  provides its owner with at least fifty percent of his or her total annu-
    15  al  income.  Provided, however, that the commissioner shall require such
    16  documentary proof to qualify for any reimbursement of  tax  provided  by
    17  this section as the commissioner deems appropriate.
    18    §  7.  Subdivision  (a)  of  section 1115 of the tax law is amended by
    19  adding a new paragraph 24-a to read as follows:
    20    (24-a) Fuel used in vessels used directly and predominantly in a busi-
    21  ness providing sport fishing  opportunities  for  hire  to  the  general
    22  public; provided that such vessel provides its owner with at least fifty
    23  percent of his or her total annual income.
    24    §  8.  Subparagraph  (i)  of paragraph 1 of subdivision (a) of section
    25  1210 of the tax law, as separately amended by section 2 of part  WW  and
    26  section  5  of  part  Z of chapter 60 of the laws of 2016, is amended to
    27  read as follows:
    28    (i) Any local law, ordinance or resolution enacted by any city of less
    29  than one million or by any county or school district, imposing the taxes
    30  authorized by this subdivision, shall, notwithstanding any provision  of
    31  law  to the contrary, exclude from the operation of such local taxes all
    32  sales of tangible personal property for use or consumption directly  and
    33  predominantly  in  the  production  of  tangible personal property, gas,
    34  electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
    35  essing,  generating,  assembly,  refining, mining or extracting; and all
    36  sales of tangible personal property for use or consumption predominantly
    37  either in the production of tangible personal  property,  for  sale,  by
    38  farming or in a commercial horse boarding operation, or in both; and all
    39  sales  of  fuel sold for use in commercial aircraft and general aviation
    40  aircraft;  and  the  fuel  used  in  commercial  sport  fishing  vessels
    41  exemption  provided for in paragraph twenty-four-a of subdivision (a) of
    42  section eleven hundred fifteen of this chapter; and, unless  such  city,
    43  county or school district elects otherwise, shall omit the provision for
    44  credit  or refund contained in clause six of subdivision (a) or subdivi-
    45  sion (d) of section eleven hundred nineteen of this chapter.
    46    § 9. Section 1210 of the tax law is amended by adding a  new  subdivi-
    47  sion (q) to read as follows:
    48    (q)  Notwithstanding  any other provision of state or local law, ordi-
    49  nance or resolution to the contrary:
    50    (1) Any city having a population of one million or more in  which  the
    51  taxes  imposed  by  section  eleven hundred seven of this chapter are in
    52  effect, acting through its local legislative body, is hereby  authorized
    53  and empowered to elect to provide the same exemptions from such taxes as
    54  the  fuel  used in commercial sport fishing vessels exemption from state
    55  sales and compensating use taxes described in paragraph twenty-four-a of
    56  subdivision (a) of section eleven hundred fifteen  of  this  chapter  by

        S. 3719                             4                            A. 5512
     1  enacting  a  resolution  in  the form set forth in paragraph two of this
     2  subdivision; whereupon, upon compliance with the provisions of  subdivi-
     3  sions  (d)  and  (e)  of this section, such enactment of such resolution
     4  shall  be deemed to be an amendment to such section eleven hundred seven
     5  and such section eleven hundred seven shall  be  deemed  to  incorporate
     6  such  exemptions  as if they had been duly enacted by the state legisla-
     7  ture and approved by the governor.
     8    (2) Form of Resolution: Be it enacted by the (insert proper  title  of
     9  local legislative body) as follows:
    10    Section  one.  Receipts  from  sales  of  and  consideration  given or
    11  contracted to be given for, or for the use  of,  property  and  services
    12  exempt from state sales and compensating use taxes pursuant to paragraph
    13  twenty-four-a  of  subdivision  (a) of section 1115 of the tax law shall
    14  also be exempt from sales and compensating use  taxes  imposed  in  this
    15  jurisdiction.
    16    Section  two.  This  resolution  shall take effect June 1, (insert the
    17  year, but not earlier than the year 2010) and shall apply to sales made,
    18  services rendered and uses occurring on and after that date  in  accord-
    19  ance  with the applicable transitional provisions in sections 1106, 1216
    20  and 1217 of the New York tax law.
    21    § 10. This act shall take effect on the ninetieth day after  it  shall
    22  have  become  a  law; provided, that the amendments to the opening para-
    23  graph of section 301-c of the tax law, made by section four of this  act
    24  shall not affect the expiration and repeal of such paragraph pursuant to
    25  section  19  of part W-1 of chapter 109 of the laws of 2006, as amended,
    26  and shall expire and be deemed repealed therewith, when upon  such  date
    27  the provisions of section five of this act shall take effect.
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