senate Bill S2194

Amended

Eliminates state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizes localities to eliminate such taxes

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / Jan / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 29 / Jan / 2014
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 29 / Jan / 2014
    • PRINT NUMBER 2194A

Summary

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.

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Bill Details

Versions:
S2194
S2194A
Legislative Cycle:
2013-2014
Current Committee:
Senate Energy And Telecommunications
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1115, 1107 & 1210, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S749
2009-2010: S3419A
2007-2008: S395

Sponsor Memo

BILL NUMBER:S2194

TITLE OF BILL: An act to amend the tax law, in relation to eliminating
state sales and compensating use taxes on motor fuels and diesel motor
fuels and authorizing localities to eliminate such taxes at the local
level

PURPOSE: This bill would eliminate state sales and compensating use
taxes on motor fuels and diesel motor fuels and authorizes localities to
eliminate such tax.

SUMMARY OF PROVISIONS: Subdivision (a) of section 1115 of the Tax Law
is amended by adding a new paragraph (44) titled Motor Fuel and Diesel
Motor Fuel.

Subdivision (b) of section 1107 of the Tax Law is amended by adding a
new clause 12.

Subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 is
amended to allow local governments the option of eliminating or altering
the local sales and compensating use tax on motor fuel.

Section 1210 is amended by adding a new subdivision (p) to eliminate the
state sales and compensating use tax on motor fuels.

JUSTIFICATION: The price of gasoline has risen dramatically. This
excessive price growth has had a devastating effect on the budgets of
families across New York. This high price of gasoline also threatens to
damage the economic climate of New York State as the cost of transporta-
tion, tourism and agricultural production are forced to deal with exor-
bitant costs. Ultimately these costs will be passed on to the consumer
thus providing an additional drain on family budgets.

Faced with such a situation it is incumbent on the New York State Legis-
lature to look for remedies. Currently, federal, state and local taxes
on the production, distribution, and sale of motor fuel account for
approximately 54% of the price of gasoline at the pump. This tax burden
unnecessarily inflates the price of gasoline, It is therefore reasonable
and responsible to lower these taxes as a means of keeping the cost of
gasoline to a minimum. Also, it is known that tax cuts spur economic
growth. Therefore this legislation can not only ease financial burdens
faced by our families, but also help to create the jobs New York needs
to grow.

LEGISLATIVE HISTORY: 2011,2012: S.749 Referred to Energy and Telecommu-
nications 2009,2010: S.3419A Referred to Energy and Telecommunications
2007,2008: S.395 Referred to Energy and Telecommunications 2006: S.6495
Referred to Energy and Telecommunications 2005: A.5728 Referred to Ways
and Means 2003,2004: A.4680 Held in Ways and Means 2001,2002: A.7479
Held in Ways and Means

FISCAL IMPLICATIONS: Undetermined.

EFFECTIVE DATE: This act shall take effect on the first day of the
sales tax quarterly period next commencing at least 90 days after this
act shall have become law in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2194

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 14, 2013
                               ___________

Introduced  by  Sens.  YOUNG,  MAZIARZ,  RANZENHOFER  --  read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Energy and Telecommunications

AN  ACT to amend the tax law, in relation to eliminating state sales and
  compensating use taxes on motor  fuels  and  diesel  motor  fuels  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:

  Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
by adding a new paragraph 44 to read as follows:
  (44) MOTOR FUEL AND DIESEL MOTOR FUEL.
  S  2.  Subdivision  (b)  of  section 1107 of the tax law is amended by
adding a new clause 12 to read as follows:
  (12) EXCEPT AS OTHERWISE PROVIDED BY LAW, THE  EXEMPTION  PROVIDED  IN
PARAGRAPH  FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED
FIFTEEN OF THIS ARTICLE RELATING TO MOTOR FUEL  AND  DIESEL  MOTOR  FUEL
SHALL  BE  APPLICABLE  PURSUANT  TO A LOCAL LAW, ORDINANCE OR RESOLUTION
ADOPTED BY A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION.  SUCH  CITY
IS  EMPOWERED  TO  ADOPT OR REPEAL SUCH A LOCAL LAW, ORDINANCE OR RESOL-
UTION. SUCH ADOPTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND  ANY  LOCAL
LAW,  ORDINANCE  OR  RESOLUTION  ENACTED  BY  SUCH A CITY IMPOSING TAXES
PURSUANT TO THE AUTHORITY OF SUBDIVISION (A) OF SECTION  TWELVE  HUNDRED
TEN OF THIS CHAPTER.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  chapter  406  of  the  laws  of 2012, is amended to read as
follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06495-01-3

S. 2194                             2

definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision,  shall  omit the residential solar energy systems equipment
exemption provided for in subdivision (ee), the commercial solar  energy
systems  equipment  exemption  provided  for in subdivision (hh) and the
clothing and footwear exemption provided  for  in  paragraph  thirty  of
subdivision  (a)  of  section  eleven  hundred  fifteen of this chapter,
unless such city, county or  school  district  elects  otherwise  as  to
either  such  residential solar energy systems equipment exemption, such
commercial solar energy systems equipment exemption or such clothing and
footwear exemption.  ANY LOCAL LAW, ORDINANCE OR RESOLUTION  ENACTED  BY
ANY  CITY,  COUNTY  OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY
THIS SUBDIVISION, SHALL OMIT  THE  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL
EXEMPTION  PROVIDED  FOR  IN  PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY
OR SCHOOL DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY HAVING
A POPULATION OF ONE MILLION OR MORE ENACTS THE RESOLUTION  DESCRIBED  IN
SUBDIVISION  (Q) OF THIS SECTION OR REPEALS SUCH RESOLUTION, SUCH RESOL-
UTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY LOCAL  LAW,  ORDINANCE
OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING SUCH TAXES PURSUANT TO THE
AUTHORITY  OF  THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES ARE SUSPENDED
AT THE TIME SUCH CITY ENACTS ITS RESOLUTION PURSUANT TO SUBDIVISION  (Q)
OF  THIS  SECTION  OR AT THE TIME OF ANY SUCH REPEAL; PROVIDED, FURTHER,
THAT ANY SUCH LOCAL LAW, ORDINANCE  OR  RESOLUTION  AND  SECTION  ELEVEN
HUNDRED  SEVEN  OF  THIS CHAPTER, AS DEEMED TO BE AMENDED IN THE EVENT A
CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION PURSUANT TO THE AUTHORI-
TY OF SUBDIVISION (Q) OF THIS SECTION,  SHALL  BE  FURTHER  AMENDED,  AS
PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS SUBPART, SO THAT THE
MOTOR  FUEL AND DIESEL MOTOR FUEL EXEMPTION IN ANY SUCH LOCAL LAW, ORDI-
NANCE OR RESOLUTION OR IN SUCH SECTION  ELEVEN  HUNDRED  SEVEN  OF  THIS
CHAPTER IS THE SAME AS THE MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION IN
PARAGRAPH  FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER.

S. 2194                             3

  S 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
section  37 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (d)  A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such  tax,  repealing
or  suspending  such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of  subdivi-
sion  (b)  of  this  section or changing the rate of tax imposed on such
energy sources and services  or  providing  for  the  credit  or  refund
described  in  clause  six  of subdivision (a) of section eleven hundred
nineteen of this chapter must go into effect only on one of the  follow-
ing  dates:  March first, June first, September first or December first;
provided, that a local law, ordinance or resolution  providing  for  the
exemption  described  in  paragraph thirty of subdivision (a) of section
eleven hundred fifteen of this chapter or repealing any  such  exemption
or a local law, ordinance or resolution providing for a refund or credit
described  in subdivision (d) of section eleven hundred nineteen of this
chapter or repealing such provision so provided must go into effect only
on March first; PROVIDED, FURTHER, THAT A LOCAL LAW, ORDINANCE OR RESOL-
UTION PROVIDING FOR THE EXEMPTION DESCRIBED IN PARAGRAPH  FORTY-FOUR  OF
SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR
REPEALING ANY SUCH EXEMPTION SO PROVIDED AND A RESOLUTION ENACTED PURSU-
ANT TO THE AUTHORITY OF SUBDIVISION (Q) OF THIS SECTION  PROVIDING  SUCH
EXEMPTION  OR  REPEALING  SUCH  EXEMPTION SO PROVIDED MAY GO INTO EFFECT
IMMEDIATELY.  No such local law, ordinance or resolution shall be effec-
tive unless a certified copy of such law,  ordinance  or  resolution  is
mailed  by  registered  or  certified  mail  to  the commissioner at the
commissioner's office in Albany at least ninety days prior to  the  date
it  is  to  become  effective.  However,  the commissioner may waive and
reduce such ninety-day minimum notice requirement to a mailing  of  such
certified  copy  by  registered or certified mail within a period of not
less than thirty days prior to such effective date if  the  commissioner
deems  such action to be consistent with the commissioner's duties under
section twelve hundred fifty of this article and the  commissioner  acts
by  resolution.  Where  the  restriction  provided for in section twelve
hundred twenty-three of this article as to the effective date of  a  tax
and  the notice requirement provided for therein are applicable and have
not been waived, the  restriction  and  notice  requirement  in  section
twelve hundred twenty-three of this article shall also apply.
  S  5.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR  THE
SAME  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL  EXEMPT FROM STATE SALES AND
COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF  SUBDIVISION
(A)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A
RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;
WHEREUPON,  UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND
(E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED
TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTION AS IF

S. 2194                             4

IT  HAD  BEEN  DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.
  (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
CONTRACTED TO BE GIVEN FOR PURCHASES OF MOTOR FUEL AND DIESEL MOTOR FUEL
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
FORTY-FOUR  OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THE
TAX LAW SHALL ALSO BE EXEMPT  FROM  SALES  AND  COMPENSATING  USE  TAXES
IMPOSED IN THIS JURISDICTION.
  SECTION  TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE) AND
SHALL APPLY TO SALES MADE AND USES OCCURRING  ON  AND  AFTER  THAT  DATE
ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
  S  6. The commissioner of taxation and finance is hereby authorized to
implement the provisions of this act with respect to the elimination  of
the imposition of sales tax, additional taxes, and supplemental taxes on
diesel  motor  fuel  and  motor fuel and all other taxes so addressed by
this act.
  S 7. This act shall take effect on the first  day  of  the  sales  tax
quarterly period, as described in subdivision (b) of section 1136 of the
tax  law,  next  commencing  at  least 90 days after this act shall have
become a law and shall apply in accordance with the  applicable  transi-
tional provisions of sections 1106 and 1217 of the tax law.

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