Bill Text: NY S03183 | 2019-2020 | General Assembly | Introduced


Bill Title: Eliminates provisions of law that require the payment and subsequent refund of the ten cent diesel excise tax and sales tax on diesel motor fuel when sold to operators of commercial fishing vessels for use in the operation of such vessels.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S03183 Detail]

Download: New_York-2019-S03183-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 3183                                                  A. 4478
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                    February 4, 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 -- read once  and  referred
          to the Committee on Ways and Means
        AN  ACT to amend the tax law, in relation to providing an exemption from
          the payment of the motor fuels tax and the sales tax  on  motor  fuels
          used in the operation of commercial fishing vessels
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  Paragraph (b) of subdivision 3 of section 282-a of the tax
     2  law, as amended by section 3 of part W of chapter  59  of  the  laws  of
     3  2013, is amended to read as follows:
     4    (b) The tax on the incidence of sale or use imposed by subdivision one
     5  of  this  section shall not apply to: (i) the sale or use of non-highway
     6  Diesel motor fuel, but only if all of such fuel is consumed  other  than
     7  on  the  public highways of this state (except for the use of the public
     8  highway by farmers to reach adjacent farmlands); provided, however, this
     9  exemption shall in no event apply to a sale of non-highway Diesel  motor
    10  fuel which involves a delivery at a filling station or into a repository
    11  which  is equipped with a hose or other apparatus by which such fuel can
    12  be dispensed into the fuel tank of a motor vehicle (except for  delivery
    13  at  a  farm site which qualifies for the exemption under subdivision (g)
    14  of section three hundred one-b of this chapter); or (ii) a sale  to  the
    15  consumer consisting of not more than twenty gallons of water-white kero-
    16  sene  to be used and consumed exclusively for heating purposes; or (iii)
    17  the sale to or delivery at a filling station or other retail  vendor  of
    18  water-white  kerosene  provided  such  filling  station  or other retail
    19  vendor only sells such  water-white  kerosene  exclusively  for  heating
    20  purposes in containers of no more than twenty gallons; or (iv) a sale of
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03163-01-9

        S. 3183                             2                            A. 4478
     1  kero-jet  fuel  to an airline for use in its airplanes or a use of kero-
     2  jet fuel by an airline in its airplanes; or (v) a sale of kero-jet  fuel
     3  by  a registered distributor of Diesel motor fuel to a fixed base opera-
     4  tor registered under this article as a distributor of kero-jet fuel only
     5  where  such  fixed base operator is engaged solely in making or offering
     6  to make retail sales not in bulk of kero-jet fuel directly into the fuel
     7  tank of an airplane for the purpose of operating such airplane; or  (vi)
     8  a  retail  sale  not  in  bulk of kero-jet fuel by a fixed base operator
     9  registered under this article as a distributor  of  kero-jet  fuel  only
    10  where  such fuel is delivered directly into the fuel tank of an airplane
    11  for use in the operation of such airplane; or (vii) the sale  of  previ-
    12  ously  untaxed  qualified  biodiesel  to  a person registered under this
    13  article as a distributor of Diesel motor fuel other than  (A)  a  retail
    14  sale to such person or (B) a sale to such person which involves a deliv-
    15  ery  at  a filling station or into a repository which is equipped with a
    16  hose or other  apparatus  by  which  such  qualified  biodiesel  can  be
    17  dispensed  into  the fuel tank of a motor vehicle; or (viii) the sale of
    18  previously untaxed highway Diesel motor  fuel  by  a  person  registered
    19  under  this  article  as  a distributor of Diesel motor fuel to a person
    20  registered under this article as a  distributor  of  Diesel  motor  fuel
    21  where  the  highway  Diesel motor fuel is either: (A) being delivered by
    22  pipeline, railcar, barge, tanker or other  vessel  to  a  terminal,  the
    23  operator  of  which  terminal  is  registered  under section two hundred
    24  eighty-three-b of this article, or (B) within such a terminal  where  it
    25  has  been  so delivered. Provided, however, that the exemption set forth
    26  in this subparagraph shall not apply to any highway Diesel motor fuel if
    27  it is removed from a terminal, other than by pipeline, barge, tanker  or
    28  other vessel; or (ix) a sale of Diesel motor fuel to a "commercial fish-
    29  erman",  as  such  term  is  defined in subdivision (i) of section three
    30  hundred of this chapter, at retail under the circumstances set forth  in
    31  paragraph  one of subdivision (g) of section three hundred one-c of this
    32  chapter, and where such commercial  fishing  vessel  is  operated  by  a
    33  commercial fisherman.
    34    §  2.  Subdivision  4  of  section 282-a of the tax law, as amended by
    35  section 5 of part K of chapter 61 of the laws of  2011,  is  amended  to
    36  read as follows:
    37    4.  The  tax  imposed  by  this  section on Diesel motor fuel shall be
    38  passed through by the seller and included as part of the  selling  price
    39  to each purchaser of such fuel. Provided, however, the amount of the tax
    40  imposed by this section may be excluded from the selling price of Diesel
    41  motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
    42  tion  described  in  paragraph  (a) of subdivision three of this section
    43  solely for the purpose stated therein; (ii) a sale of non-highway Diesel
    44  motor fuel is made to a consumer but only  if  such  non-highway  Diesel
    45  motor  fuel  is not delivered to a filling station, nor delivered into a
    46  storage tank which is equipped with a hose or other apparatus  by  which
    47  such  fuel  can  be  dispensed into the fuel tank of a motor vehicle; or
    48  (iii) the sale to or delivery at  a  filling  station  or  other  retail
    49  vendor  of  water-white  kerosene provided such filling station or other
    50  retail vendor only sells such water-white kerosene exclusively for heat-
    51  ing purposes in containers of no more than twenty  gallons;  or  (iv)  a
    52  sale of kero-jet fuel is made to an airline for use in its airplanes; or
    53  (v)  a sale of Diesel motor fuel is made to a "commercial fisherman", as
    54  such term is defined in subdivision (i) of section three hundred of this
    55  chapter, at retail under the circumstances set forth in paragraph one of
    56  subdivision (g) of section three hundred  one-c  of  this  chapter,  and

        S. 3183                             3                            A. 4478
     1  where such commercial fishing vessel is operated by a commercial fisher-
     2  man.
     3    §  3. Section 301-b of the tax law is amended by adding a new subdivi-
     4  sion (j) to read as follows:
     5    (j) Sales or uses of diesel motor fuel and residual petroleum  product
     6  for  commercial fishing. Diesel motor fuel or residual petroleum product
     7  sold to or used by a "commercial fisherman", as such term is defined  in
     8  subdivision  (i)  of  section  three  hundred of this article, at retail
     9  under the circumstances set forth in paragraph one of subdivision (g) of
    10  section three hundred one-c of this article, and where  such  commercial
    11  fishing vessel is operated by a commercial fisherman.
    12    §  4.  Subdivision  (j)  of section 1115 of the tax law, as amended by
    13  section 41 of part K of chapter 61 of the laws of 2011,  is  amended  to
    14  read as follows:
    15    (j) The exemptions provided in this section shall not apply to the tax
    16  required  to  be  prepaid  pursuant  to the provisions of section eleven
    17  hundred two of this article nor to the taxes imposed by sections  eleven
    18  hundred  five  and  eleven  hundred  ten of this article with respect to
    19  receipts from sales and uses of motor fuel or diesel motor fuel,  except
    20  that  the exemptions provided in paragraphs nine and forty-two of subdi-
    21  vision (a) of this section shall apply to the tax required to be prepaid
    22  pursuant to the provisions of section eleven hundred two of this article
    23  and to the taxes imposed by sections  eleven  hundred  five  and  eleven
    24  hundred  ten  of this article with respect to sales and uses of kero-jet
    25  fuel, CNG, hydrogen and E85, provided, however,  the  exemption  allowed
    26  for  E85  shall  be  subject  to the additional requirements provided in
    27  section eleven hundred two of this  article  with  respect  to  E85  and
    28  except  that the exemption provided in paragraph twenty-four of subdivi-
    29  sion (a) of this section shall apply to the taxes  imposed  by  sections
    30  eleven  hundred five and eleven hundred ten of this article with respect
    31  to sales and uses of diesel motor fuel used in the operation of a  fish-
    32  ing  vessel  as described in paragraph twenty-four of subdivision (a) of
    33  this section.  The exemption provided in subdivision (c) of this section
    34  shall apply to sales and uses of non-highway diesel motor fuel but  only
    35  if  all  of  such  fuel is consumed other than on the public highways of
    36  this state.  The exemption provided in subdivision (c) of  this  section
    37  shall  apply  to sales and uses of non-highway diesel motor fuel for use
    38  or consumption either in the production for sale  of  tangible  personal
    39  property  by  farming or in a commercial horse boarding operation, or in
    40  both but only if all of such fuel is consumed other than on  the  public
    41  highways  of  this  state  (except for the use of the public highways to
    42  reach adjacent farmlands or adjacent lands used in  a  commercial  horse
    43  boarding operation, or both).
    44    §  5.  Subdivision  (j)  of section 1115 of the tax law, as amended by
    45  section 41-a of part K of chapter 61 of the laws of 2011, is amended  to
    46  read as follows:
    47    (j) The exemptions provided in this section shall not apply to the tax
    48  required  to  be  prepaid  pursuant  to the provisions of section eleven
    49  hundred two of this article nor to the taxes imposed by sections  eleven
    50  hundred  five  and  eleven  hundred  ten of this article with respect to
    51  receipts from sales and uses of motor fuel or diesel motor fuel,  except
    52  that the exemption provided in paragraph nine of subdivision (a) of this
    53  section  shall  apply  to the tax required to be prepaid pursuant to the
    54  provisions of section eleven hundred two of  this  article  and  to  the
    55  taxes  imposed by sections eleven hundred five and eleven hundred ten of
    56  this article with respect to sales and uses of kero-jet fuel and  except

        S. 3183                             4                            A. 4478
     1  that  the exemption provided in paragraph twenty-four of subdivision (a)
     2  of this section shall apply to the  taxes  imposed  by  sections  eleven
     3  hundred  five  and  eleven  hundred  ten of this article with respect to
     4  sales  and  uses of diesel motor fuel used in the operation of a fishing
     5  vessel as described in paragraph twenty-four of subdivision (a) of  this
     6  section.    The  exemption  provided  in subdivision (c) of this section
     7  shall apply to sales and uses of non-highway diesel motor fuel but  only
     8  if  all  of  such  fuel is consumed other than on the public highways of
     9  this state. The exemption provided in subdivision (c)  of  this  section
    10  shall  apply  to sales and uses of non-highway diesel motor fuel for use
    11  or consumption either in the production for sale  of  tangible  personal
    12  property  by  farming or in a commercial horse boarding operation, or in
    13  both but only if all of such fuel is consumed other than on  the  public
    14  highways  of  this  state  (except for the use of the public highways to
    15  reach adjacent farmlands or adjacent lands used in  a  commercial  horse
    16  boarding operation, or both).
    17    § 6.  This act shall take effect on the first day of a sales tax quar-
    18  terly period, as described in subdivision (b) of section 1136 of the tax
    19  law,  next  commencing  at  least  ninety days after this act shall have
    20  become a law; sections four and five of this act shall  apply  to  sales
    21  made  under  and uses occurring on or after the dates such sections four
    22  and five shall have taken effect, respectively, although made or  occur-
    23  ring  under  a prior contract; and provided further that such amendments
    24  made by section four of this act shall be subject to the expiration  and
    25  reversion  of  such  subdivision  pursuant  to section 19 of part W-1 of
    26  chapter 109 of the laws of 2006, as amended, when  upon  such  date  the
    27  provisions of section five of this act shall take effect.
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