senate Bill S782

Amended

Provides motor fuel tax exemption for sales of diesel motor fuel made to commercial fishermen

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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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 24 / May / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 24 / May / 2013
    • PRINT NUMBER 782A
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / May / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 12 / May / 2014
    • PRINT NUMBER 782B

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A138
Versions:
S782
S782A
S782B
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยงยง282-a, 301-b & 1115, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S6879A, A7271A
2009-2010: A1903A, A1903A, S6879
2007-2008: A989, A989

Votes

Sponsor Memo

BILL NUMBER:S782

TITLE OF BILL:
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

PURPOSE:
Provides a motor fuel tax exemption for sales of diesel motor fuel
made to commercial fishermen.

SUMMARY OF PROVISIONS:
This bill amends the tax law in order to eliminate the statute that
requires the payment and subsequent refund of the eight cent diesel
excise tax and the sales tax on diesel fuel when sold to operators of
commercial fishing vessels. Under the current law, both taxes must be
paid by commercial fishermen, notwithstanding their exempt status
from these taxes. The commercial fishermen are then allowed to file
for a refund of these taxes from the Department of Taxation and
Finance.

JUSTIFICATION:
The original intent of this policy, as it relates to commercial
fishing vessels, was to prevent tax evasion in the diesel fuel
industry. However, it was not intended to be burdensome to many of
the state's industries such as commercial fishermen and their fuel
distributors.

The implementation of this law has caused a great deal of hardship for
commercial fishermen. A fisherman, operating a trawler vessel burning
85,000 gallons per year, must advance approximately $13,600 annually
in taxes to the State. The negative financial consequences of this
cash flow are a large burden for the commercial fishermen of this
state.

The negative impacts of this law have also been carried over to the
fuel distributors of the commercial fishermen. Because of the payment
requirement, many fishermen are now purchasing their fuel at ports
outside of New York. This will result in the loss of thousands of
dollars in revenue for the state's fuel distributors. This
legislation would no longer require commercial fishermen to pay any
excise or state sales taxes for the purchase of diesel motor fuel.

LEGISLATIVE HISTORY:
2012 S.6879; 2009-10 A.1903A; 2007-08 A.989; 2005-06 A.3854; 2003-04
A.1416; 2001-02 A.2289; 1999-00 A.2840A.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period, as described in subdivision (b) of Section 1136 of the tax
law, next commencing at least ninety days after this act shall have
become law, sections four and five of this act shall apply to sales


made under and uses occurring on or after the dates such sections
four and five shall have taken effect, respectively, although made or
occurring under a prior contract; and provided further that the
amendments made by section four of this act shall be subject to the
expiration and reversion of such subdivision pursuant to Section 19
of part W-1 of Chapter 109 of the laws of 2006, as amended, when
upon such date the provisions of section five of this act shall take
effect.

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

    S. 782                                                    A. 138

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

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:

  Section 1.  Paragraph (b) of subdivision 3 of section 282-a of the tax
law, as amended by section 2 of part E of chapter  59  of  the  laws  of
2012, is amended to read as follows:
  (b) The tax on the incidence of sale or use imposed by subdivision one
of  this  section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed  other  than
on  the  public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel  motor
fuel which involves a delivery at a filling station or into a repository
which  is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for  delivery
at  a  farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale  to  the
consumer consisting of not more than twenty gallons of water-white kero-
sene  to be used and consumed exclusively for heating purposes; or (iii)
the sale to or delivery at a filling station or other retail  vendor  of
water-white  kerosene  provided  such  filling  station  or other retail
vendor only sells such  water-white  kerosene  exclusively  for  heating

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03501-01-3

S. 782                              2                             A. 138

purposes in containers of no more than twenty gallons; or (iv) a sale of
kero-jet  fuel  to an airline for use in its airplanes or a use of kero-
jet fuel by an airline in its airplanes; or (v) a sale of kero-jet  fuel
by  a registered distributor of Diesel motor fuel to a fixed base opera-
tor registered under this article as a distributor of kero-jet fuel only
where such fixed base operator is engaged solely in making  or  offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel
tank  of  an airplane for the purpose of operating such airplane; (vi) a
retail sale not in bulk of kero-jet fuel by a fixed base operator regis-
tered under this article as a distributor of kero-jet  fuel  only  where
such  fuel  is  delivered directly into the fuel tank of an airplane for
use in the operation of such airplane; or (vii) the sale  of  previously
untaxed qualified biodiesel to a person registered under this article as
a  distributor of Diesel motor fuel other than (A) a retail sale to such
person or (B) a sale to such person which involves a delivery at a fill-
ing station or into a repository which is equipped with a hose or  other
apparatus  by  which  such qualified biodiesel can be dispensed into the
fuel tank of a motor vehicle; OR (VIII) A SALE OF DIESEL MOTOR FUEL TO A
"COMMERCIAL FISHERMAN", AS SUCH TERM IS DEFINED IN  SUBDIVISION  (I)  OF
SECTION THREE HUNDRED OF THIS CHAPTER, AT RETAIL UNDER THE CIRCUMSTANCES
SET  FORTH  IN PARAGRAPH ONE OF SUBDIVISION (G) OF SECTION THREE HUNDRED
ONE-C OF THIS CHAPTER, AND WHERE SUCH COMMERCIAL FISHING VESSEL IS OPER-
ATED BY A COMMERCIAL FISHERMAN.
  S 2. Subdivision 4 of section 282-a of the  tax  law,  as  amended  by
section  5  of  part  K of chapter 61 of the laws of 2011, is amended to
read as follows:
  4. The tax imposed by this section  on  Diesel  motor  fuel  shall  be
passed  through  by the seller and included as part of the selling price
to each purchaser of such fuel. Provided, however, the amount of the tax
imposed by this section may be excluded from the selling price of Diesel
motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
tion described in paragraph (a) of subdivision  three  of  this  section
solely for the purpose stated therein; (ii) a sale of non-highway Diesel
motor  fuel  is  made  to a consumer but only if such non-highway Diesel
motor fuel is not delivered to a filling station, nor delivered  into  a
storage  tank  which is equipped with a hose or other apparatus by which
such fuel can be dispensed into the fuel tank of  a  motor  vehicle;  or
(iii)  the  sale  to  or  delivery  at a filling station or other retail
vendor of water-white kerosene provided such filling  station  or  other
retail vendor only sells such water-white kerosene exclusively for heat-
ing  purposes  in  containers  of no more than twenty gallons; or (iv) a
sale of kero-jet fuel is made to an airline for use in its airplanes; OR
(V) A SALE OF DIESEL MOTOR FUEL IS MADE TO A "COMMERCIAL FISHERMAN",  AS
SUCH TERM IS DEFINED IN SUBDIVISION (I) OF SECTION THREE HUNDRED OF THIS
CHAPTER, AT RETAIL UNDER THE CIRCUMSTANCES SET FORTH IN PARAGRAPH ONE OF
SUBDIVISION  (G)  OF  SECTION  THREE  HUNDRED ONE-C OF THIS CHAPTER, AND
WHERE SUCH COMMERCIAL FISHING VESSEL IS OPERATED BY A COMMERCIAL FISHER-
MAN.
  S 3. Section 301-b of the tax law is amended by adding a new  subdivi-
sion (j) to read as follows:
  (J)  SALES OR USES OF DIESEL MOTOR FUEL AND RESIDUAL PETROLEUM PRODUCT
FOR COMMERCIAL FISHING. DIESEL MOTOR FUEL OR RESIDUAL PETROLEUM  PRODUCT
SOLD  TO OR USED BY A "COMMERCIAL FISHERMAN", AS SUCH TERM IS DEFINED IN
SUBDIVISION (I) OF SECTION THREE HUNDRED  OF  THIS  ARTICLE,  AT  RETAIL
UNDER THE CIRCUMSTANCES SET FORTH IN PARAGRAPH ONE OF SUBDIVISION (G) OF

S. 782                              3                             A. 138

SECTION  THREE  HUNDRED ONE-C OF THIS ARTICLE, AND WHERE SUCH COMMERCIAL
FISHING VESSEL IS OPERATED BY A COMMERCIAL FISHERMAN.
  S  4.  Subdivision  (j)  of section 1115 of the tax law, as amended by
section 41 of part K of chapter 61 of the laws of 2011,  is  amended  to
read as follows:
  (j) The exemptions provided in this section shall not apply to the tax
required  to  be  prepaid  pursuant  to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections  eleven
hundred  five  and  eleven  hundred  ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel,  except
that  the exemptions provided in paragraphs nine and forty-two of subdi-
vision (a) of this section shall apply to the tax required to be prepaid
pursuant to the provisions of section eleven hundred two of this article
and to the taxes imposed by sections  eleven  hundred  five  and  eleven
hundred  ten  of this article with respect to sales and uses of kero-jet
fuel, CNG, hydrogen and E85, provided, however,  the  exemption  allowed
for  E85  shall  be  subject  to the additional requirements provided in
section eleven hundred two of this  article  with  respect  to  E85  AND
EXCEPT  THAT THE EXEMPTION PROVIDED IN PARAGRAPH TWENTY-FOUR OF SUBDIVI-
SION (A) OF THIS SECTION SHALL APPLY TO THE TAXES  IMPOSED  BY  SECTIONS
ELEVEN  HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE WITH RESPECT
TO SALES AND USES OF DIESEL MOTOR FUEL USED IN THE OPERATION OF A  FISH-
ING  VESSEL  AS DESCRIBED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A) OF
THIS SECTION.  The exemption provided in subdivision (c) of this section
shall apply to sales and uses of non-highway diesel motor fuel but  only
if  all  of  such  fuel is consumed other than on the public highways of
this state.  The exemption provided in subdivision (c) of  this  section
shall  apply  to sales and uses of non-highway diesel motor fuel for use
or consumption either in the production for sale  of  tangible  personal
property  by  farming or in a commercial horse boarding operation, or in
both but only if all of such fuel is consumed other than on  the  public
highways  of  this  state  (except for the use of the public highways to
reach adjacent farmlands or adjacent lands used in  a  commercial  horse
boarding operation, or both).
  S  5.  Subdivision  (j)  of section 1115 of the tax law, as amended by
section 41-a of part K of chapter 61 of the laws of 2011, is amended  to
read as follows:
  (j) The exemptions provided in this section shall not apply to the tax
required  to  be  prepaid  pursuant  to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections  eleven
hundred  five  and  eleven  hundred  ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel,  except
that the exemption provided in paragraph nine of subdivision (a) of this
section  shall  apply  to the tax required to be prepaid pursuant to the
provisions of section eleven hundred two of  this  article  and  to  the
taxes  imposed by sections eleven hundred five and eleven hundred ten of
this article with respect to sales and uses of kero-jet fuel AND  EXCEPT
THAT  THE EXEMPTION PROVIDED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A)
OF THIS SECTION SHALL APPLY TO THE  TAXES  IMPOSED  BY  SECTIONS  ELEVEN
HUNDRED  FIVE  AND  ELEVEN  HUNDRED  TEN OF THIS ARTICLE WITH RESPECT TO
SALES AND USES OF DIESEL MOTOR FUEL USED IN THE OPERATION OF  A  FISHING
VESSEL  AS DESCRIBED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A) OF THIS
SECTION.   The exemption provided in subdivision  (c)  of  this  section
shall  apply to sales and uses of non-highway diesel motor fuel but only
if all of such fuel is consumed other than on  the  public  highways  of
this  state.  The  exemption provided in subdivision (c) of this section

S. 782                              4                             A. 138

shall apply to sales and uses of non-highway diesel motor fuel  for  use
or  consumption  either  in the production for sale of tangible personal
property by farming or in a commercial horse boarding operation,  or  in
both  but  only if all of such fuel is consumed other than on the public
highways of this state (except for the use of  the  public  highways  to
reach  adjacent  farmlands  or adjacent lands used in a commercial horse
boarding operation, or both).
  S 6.  This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, next commencing at least ninety days  after  this  act  shall  have
become  a  law;  sections four and five of this act shall apply to sales
made under and uses occurring on or after the dates such  sections  four
and  five shall have taken effect, respectively, although made or occur-
ring under a prior contract; and provided further that  such  amendments
made  by section four of this act shall be subject to the expiration and
reversion of such subdivision pursuant to section  19  of  part  W-1  of
chapter  109  of  the  laws of 2006, as amended, when upon such date the
provisions of section five of this act shall take effect.

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