senate Bill S5982

Phases out the petroleum tax

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Sponsor

Bill Status


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

  • 13 / Nov / 2013
    • REFERRED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Phases out the petroleum tax in four year increments.

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Bill Details

See Assembly Version of this Bill:
A8276
Versions:
S5982
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §301-a, Tax L

Sponsor Memo

BILL NUMBER:S5982

TITLE OF BILL: An act to amend the tax law, in relation to the phase
out of the petroleum business tax

PURPOSE OF THE BILL:

To phase out the petroleum business tax ( PBT) on motor fuel over four
years.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1 through § 3- Amends subdivision (b), paragraph 1 of subdivision
(c) and the opening paragraph of paragraph 2 of subdivision (c) of
301-a of the Tax Law to phase out the PBT on motor fuel 25% each year
until 2018 when the PBT will no longer be levied.

§ 4- Effective date.

JUSTIFICATION:

Current state taxes on a gallon of gasoline include the petroleum
business tax (18.6 cents per gallon, adjusted annually), the motor
fuel excise tax (8.0 cents) and the state sales tax (capped at 8.0
cents), as well as a petroleum testing fee (0.5 cents). These taxes
total approximately 35 cents per gallon for gasoline, while the total
tax on highway diesel motor fuel is a few cents lower. Added to that
is the local sales tax, which varies by locality.

This legislation would phase out the petroleum business tax (PBT) on
all motor fuel sales over the next four years, to allow for a gradual
cutting in half of the overall state tax levy on gasoline and diesel
fuel. This would lower total state taxes on a gallon of gasoline or
diesel fuel to 16.05 cents and move New York State out of the top spot
for state gasoline taxes, and even out of the top ten states.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

An estimated reduction in state revenue of $550,000 for the 2015 tax
year, $1.1 million for the 2016 tax year, $1.65 million for the 2017
tax year, and $2.2 million for tax year 2018 and thereafter.

EFFECTIVE DATE:

This act shall take effect on the sixtieth day after it shall have
become a law; provided that the Commissioner of Taxation and Finance
is authorized to promulgate any and all rules and regulations and take
any other measures necessary to implement this act on its effective
date on or before such date.

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

                                  5982

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            November 13, 2013
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to the phase out of the  petro-
  leum business tax

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

  Section 1. Subdivision (b) of section 301-a of the tax law is  amended
by adding a new paragraph 3 to read as follows:
  (3)  COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL
COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL
BE MULTIPLIED BY A RATE OF SEVENTY-FIVE PERCENT. COMMENCING  ON  JANUARY
FIRST,  TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSU-
ANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY  A  RATE
OF  FIFTY  PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVENTEEN,
THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH  ONE  OF  THIS
SUBDIVISION  SHALL  BE  MULTIPLIED  BY  A  RATE  OF TWENTY-FIVE PERCENT.
COMMENCING ON JANUARY FIRST, TWO THOUSAND  EIGHTEEN,  NO  TAX  SHALL  BE
IMPOSED PURSUANT TO THIS SUBDIVISION.
  S 2. Paragraph 1 of subdivision (c) of section 301-a of the tax law is
amended by adding a new subparagraph (C) to read as follows:
  (C)  COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL
COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL
BE MULTIPLIED BY A RATE OF SEVENTY-FIVE PERCENT. COMMENCING  ON  JANUARY
FIRST,  TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSU-
ANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY  A  RATE
OF  FIFTY  PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVENTEEN,
THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH  ONE  OF  THIS
SUBDIVISION  SHALL  BE  MULTIPLIED  BY  A  RATE  OF TWENTY-FIVE PERCENT.
COMMENCING ON JANUARY FIRST, TWO THOUSAND  EIGHTEEN,  NO  TAX  SHALL  BE
IMPOSED PURSUANT TO THIS SUBDIVISION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11820-02-3

S. 5982                             2

  S  3.  The  opening  paragraph  of  paragraph  2 of subdivision (c) of
section 301-a of the tax law is designated subparagraph (A)  and  a  new
subparagraph (B) is added to read as follows:
  (B)  COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL
COMPONENT CALCULATED PURSUANT TO  SUBPARAGRAPH  (A)  OF  THIS  PARAGRAPH
SHALL  BE  MULTIPLIED  BY  A RATE OF SEVENTY-FIVE PERCENT. COMMENCING ON
JANUARY FIRST, TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED
PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE MULTIPLIED BY  A
RATE  OF FIFTY PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVEN-
TEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO  SUBPARAGRAPH  (A)
OF  THIS PARAGRAPH SHALL BE MULTIPLIED BY A RATE OF TWENTY-FIVE PERCENT.
COMMENCING ON JANUARY FIRST, TWO THOUSAND  EIGHTEEN,  NO  TAX  SHALL  BE
IMPOSED PURSUANT TO THIS SUBDIVISION.
  S  4.  This  act  shall take effect on the sixtieth day after it shall
have become a law;  provided  that  the  commissioner  of  taxation  and
finance  is  authorized  to promulgate any and all rules and regulations
and take any other measures necessary  to  implement  this  act  on  its
effective date on or before such date.

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