S T A T E   O F   N E W   Y O R K
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                                  4831

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 27, 2011
                               ___________

Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to eliminating the  residential
  restriction for heating exemptions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (d) of section 301-b of the tax law, as amended
by section 21 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (d) Sales to consumers for heating purposes.  [(1)  Total  residential
heating]  HEATING  exemption.  Non-highway  diesel  motor fuel sold by a
petroleum business registered under article twelve-A of this chapter  as
a distributor of diesel motor fuel or residual petroleum product sold by
a  petroleum business registered under this article as a residual petro-
leum product business to  the  consumer  exclusively  for  [residential]
heating purposes only if such non-highway diesel motor fuel is delivered
into a storage tank which is not equipped with a hose or other apparatus
by  which such fuel can be dispensed into the fuel tank of a motor vehi-
cle and such storage tank is attached to the heating unit  burning  such
fuel.
  [(2) Partial non-residential heating exemption. (A) Non-highway diesel
motor  fuel  sold  by  a  petroleum  business  registered  under article
twelve-A of this chapter as a distributor of diesel motor fuel or  resi-
dual  petroleum  product  sold  by a petroleum business registered under
this article as a residual petroleum product business  to  the  consumer
exclusively for heating, other than residential heating purposes only if
such  non-highway  diesel  motor  fuel  is delivered into a storage tank
which is not equipped with a hose or other apparatus by which such  fuel
can  be dispensed into the fuel tank of a motor vehicle and such storage
tank is attached to the heating unit burning such fuel  (B)  Calculation

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09725-02-1
              

S. 4831                             2

of  partial  exemption. The partial exemption under this paragraph shall
be determined by multiplying the quantity of  non-highway  diesel  motor
fuel and residual petroleum product eligible for the exemption times the
sum  of the then current rate of the supplemental tax imposed by section
three hundred one-j of this article and forty-six percent  of  the  then
current  rate  of the tax imposed by section three hundred one-a of this
article, with respect to the specific non-highway diesel motor  fuel  or
residual petroleum product rate, as the case may be.]
  S  2.  Subdivision  (a) of section 301-c of the tax law, as amended by
section 23 of part K of chapter 61 of the laws of 2011,  is  amended  to
read as follows:
  (a)  Non-highway  Diesel  motor  fuel  used for heating purposes. [(1)
Total residential heating]  HEATING  reimbursement.  Non-highway  Diesel
motor  fuel  purchased  in  this  state  and sold by such purchaser to a
consumer for use exclusively for [residential] heating purposes but only
where (i) such non-highway diesel motor fuel is delivered into a storage
tank which is not equipped with a hose or other apparatus by which  such
non-highway  Diesel  motor fuel can be dispensed into the fuel tank of a
motor vehicle and such storage tank is  attached  to  the  heating  unit
burning  such non-highway Diesel motor fuel, (ii) the tax imposed pursu-
ant to this article has been  paid  with  respect  to  such  non-highway
diesel motor fuel and the entire amount of such tax has been absorbed by
such  purchaser,  and  (iii)  such purchaser possesses documentary proof
satisfactory to the commissioner evidencing the absorption by it of  the
entire  amount  of  the  tax imposed pursuant to this article. Provided,
however, that the commissioner is authorized,  in  the  event  that  the
commissioner  determines that it would not threaten the integrity of the
administration and enforcement of the tax imposed by  this  article,  to
provide  a reimbursement with respect to a retail sale to a consumer for
residential heating purposes of less than  ten  gallons  of  non-highway
diesel motor fuel provided such fuel is not dispensed into the tank of a
motor vehicle.
  [(2)  Partial  non-residential  heating reimbursement. (A) Non-highway
Diesel motor fuel purchased in this state and sold by such purchaser  to
a  consumer  for use exclusively for heating, other than for residential
heating purposes, but only where (i) such non-highway diesel motor  fuel
is  delivered  into  a storage tank which is not equipped with a hose or
other apparatus by which such  non-highway  Diesel  motor  fuel  can  be
dispensed into the fuel tank of a motor vehicle and such storage tank is
attached to the heating unit burning such non-highway Diesel motor fuel,
(ii) the tax imposed pursuant to this article has been paid with respect
to  such non-highway diesel motor fuel and the entire amount of such tax
has been absorbed by such purchaser, and (iii) such purchaser  possesses
documentary  proof  satisfactory  to  the  commissioner  evidencing  the
absorption by it of the entire amount of the  tax  imposed  pursuant  to
this article.
  (B)  Calculation  of  partial reimbursement. Notwithstanding any other
provision of this article, the amount of the  reimbursement  under  this
paragraph shall be determined by multiplying the quantity of non-highway
diesel  motor  fuel  eligible for the reimbursement times the sum of the
then current rate of the  supplemental  tax  imposed  by  section  three
hundred  one-j of this article and forty-six percent of the then current
rate of the tax imposed by section three hundred one-a of this  article,
with  respect to the non-highway diesel motor fuel rate, as the case may
be.]

S. 4831                             3

  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that if part K of chapter
61 of the laws of 2011 shall not have taken effect  on  or  before  such
date then sections one and two of this act shall take effect on the same
date  and  in  the same manner as such chapter of the laws of 2011 takes
effect.