S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9933
 
                           I N  A S S E M B L Y
 
                              April 19, 2022
                                ___________
 
 Introduced  by M. of A. WALCZYK -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing limitations  on
   excise  and  sales  taxes  on  diesel motor fuel and motor fuel and to
   authorize cities having a population of one million or more and  coun-
   ties to adopt local laws limiting taxes on diesel motor fuel and motor
   fuel

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Subdivision 1 of section 282-a of the tax law, as  amended
 by section 2 of part W of chapter 59 of the laws of 2013, is amended and
 a new subdivision 1-a is added to read as follows:
   1.  [There]  SUBJECT  TO  THE  PROVISIONS OF SUBDIVISION ONE-A OF THIS
 SECTION, THERE is hereby levied and imposed with respect to Diesel motor
 fuel an excise tax of four cents per gallon upon  the  sale  or  use  of
 Diesel motor fuel in this state.
   The  excise  tax  is  imposed on the first sale or use of Diesel motor
 fuel to occur which is not exempt from tax under this article. Provided,
 however, if the tax has not been imposed  prior  thereto,  it  shall  be
 imposed  on  the  removal  of highway Diesel motor fuel from a terminal,
 other than by pipeline, barge, tanker or other vessel, or  the  delivery
 of Diesel motor fuel to a filling station or into the fuel tank connect-
 ing  with the engine of a motor vehicle for use in the operation thereof
 whichever event shall be first to occur. The tax shall be computed based
 upon the number of gallons of Diesel motor fuel sold, removed or used or
 the number of gallons of Diesel fuel delivered into the fuel tank  of  a
 motor  vehicle,  as  the  case  may be. Nothing in this article shall be
 construed to require the payment of such excise tax more than once  upon
 the same Diesel motor fuel. Nor shall the collection of such tax be made
 applicable  to  the sale or use of Diesel motor fuel under circumstances
 which preclude the collection of such tax by reason of the United States
 constitution and of laws of the United States enacted pursuant  thereto.
 Provided, further, no Diesel motor fuel shall be included in the measure
 of the tax unless it shall have previously come to rest within the mean-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15269-02-2
 A. 9933                             2
 
 ing  of  federal decisional law interpreting the United States constitu-
 tion. All tax for the period for which a return is required to be  filed
 shall  be  due on the date limited for the filing of the return for such
 period,  regardless  of  whether  a  return is filed as required by this
 article or whether the return which is filed correctly shows the  amount
 of tax due.
   1-A. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
 SALES  OF  MOTOR  FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
 PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS  TWO
 DOLLARS  AND  TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
 THIS SECTION SHALL BE REDUCED  BY  ONE-QUARTER  OF  A  PERCENTAGE  POINT
 (.0025)  FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR
 FUEL PER GALLON. THE TAX IMPOSED BY  THIS  SECTION  SHALL  BE  SUSPENDED
 ENTIRELY  IF  THE  AVERAGE  PRICE  OF  MOTOR FUEL IN THE STATE EQUALS OR
 EXCEEDS THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL  IN
 THE  STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS
 SECTION SHALL BE ASSESSED IN INCREASES OF ONE-QUARTER  OF  A  PERCENTAGE
 POINT  (.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
 MOTOR FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
 DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
 THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO  SALES  OF
 MOTOR FUEL.
   §  2. Section 282-b of the tax law, as amended by section 1 of part EE
 of chapter 63 of the laws of 2000, is amended to read as follows:
   § 282-b. Additional Diesel motor fuel tax. 1. In addition to  the  tax
 imposed by section two hundred eighty-two-a of this [chapter] ARTICLE, a
 like  tax  shall  be  imposed at the rate of three cents per gallon upon
 sale or use within the state of Diesel motor fuel or upon  the  delivery
 of  Diesel  motor  fuel  to a filling station or into the fuel tank of a
 motor vehicle for use in the  operation  thereof.  Except  as  otherwise
 provided  in  this  section, all of the provisions of this article shall
 apply with respect to the additional tax imposed by this section to  the
 same  extent  as  if it were imposed by said section two hundred eighty-
 two-a. Beginning on April first, nineteen hundred ninety-one,  four  and
 one-sixth  per  centum of the moneys received by the department pursuant
 to the provisions of this section shall be deposited to  the  credit  of
 the  emergency  highway  reconditioning  and  preservation  fund reserve
 account established pursuant to  the  provisions  of  paragraph  (b)  of
 subdivision  two of FORMER section eighty-nine of the state finance law.
 Beginning on April first, nineteen hundred  ninety-one,  four  and  one-
 sixth  per  centum  of the moneys received by the department pursuant to
 the provisions of this section shall be deposited to the credit  of  the
 emergency  highway  construction and reconstruction fund reserve account
 established pursuant to the provisions of paragraph (b)  of  subdivision
 two  of FORMER section eighty-nine-a of the state finance law. Beginning
 on April first, nineteen hundred ninety-two,  an  additional  eight  and
 one-third  per  centum of the moneys received by the department pursuant
 to the provisions of this section shall be deposited to  the  credit  of
 the  emergency  highway  reconditioning  and  preservation  fund reserve
 account established pursuant to  the  provisions  of  paragraph  (b)  of
 subdivision  two of FORMER section eighty-nine of the state finance law.
 Beginning on April first, nineteen  hundred  ninety-two,  an  additional
 eight  and one-third per centum of the moneys received by the department
 pursuant to the provisions of this section shall  be  deposited  to  the
 credit  of  the  emergency  highway construction and reconstruction fund
 reserve account established pursuant to the provisions of paragraph  (b)
 A. 9933                             3
 
 of  subdivision two of FORMER section eighty-nine-a of the state finance
 law. Beginning on April first, two thousand one, seventy-five per centum
 of the moneys received by the department pursuant to the  provisions  of
 this  section shall be deposited in the dedicated fund accounts pursuant
 to subdivision (d) of section  three  hundred  one-j  of  this  chapter.
 Beginning on April first, two thousand three, all of the moneys received
 by  the  department  pursuant to the provisions of this section shall be
 deposited in the dedicated fund accounts pursuant to subdivision (d)  of
 section three hundred one-j of this chapter.
   2.  THE  FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
 SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS  AND  TWENTY-FIVE  CENTS
 PER  GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
 DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX  IMPOSED  BY
 THIS SECTION SHALL BE REDUCED BY TWO-TENTHS OF A PERCENTAGE POINT (.002)
 FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER
 GALLON.  THE  TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF
 THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE  EQUALS  OR  EXCEEDS  THREE
 DOLLARS  PER  GALLON.  IF  THE  AVERAGE PRICE OF MOTOR FUEL IN THE STATE
 FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED  BY  THIS  SECTION
 SHALL  BE  ASSESSED  IN  INCREASES OF   TWO-TENTHS OF A PERCENTAGE POINT
 (.002) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST  OF  MOTOR
 FUEL  PER  GALLON  UNTIL  THE  AVERAGE  PRICE OF MOTOR FUEL IN THE STATE
 DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
 THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO  SALES  OF
 MOTOR FUEL.
   §  3. Section 282-c of the tax law, as amended by section 2 of part EE
 of chapter 63 of the laws of 2000, is amended to read as follows:
   § 282-c. Supplemental Diesel motor fuel tax. 1.  In  addition  to  the
 taxes  imposed  by  sections  two  hundred  eighty-two-a and two hundred
 eighty-two-b of this [chapter] ARTICLE, a like tax shall be  imposed  at
 the rate of one cent per gallon upon the sale or use within the state of
 Diesel motor fuel or upon the delivery of Diesel motor fuel to a filling
 station  or  into the fuel tank of a motor vehicle for use in the opera-
 tion thereof. Except for paragraph (b) of subdivision three  of  section
 two  hundred  eighty-nine-c  OF THIS ARTICLE, all the provisions of this
 article shall apply with respect to the supplemental tax imposed by this
 section to the same extent as if it were imposed  by  said  section  two
 hundred  eighty-two-a.  On  and after the first day of October, nineteen
 hundred seventy-two, twenty-five per centum of the  monies  received  by
 the  department  pursuant  to  the  provisions  of this section shall be
 deposited to the credit of  the  emergency  highway  reconditioning  and
 preservation  fund  established  pursuant  to  the  provisions of FORMER
 section eighty-nine of the state finance law. Beginning on April  first,
 nineteen  hundred  eighty-three,  twenty-five  per  centum of the monies
 received by the department pursuant to the provisions  of  this  section
 shall  be  deposited to the credit of the emergency highway construction
 and reconstruction fund established pursuant to the provisions of FORMER
 section eighty-nine-a of the  state  finance  law.  Beginning  on  April
 first,  nineteen  hundred  ninety, an additional twelve and one-half per
 centum of  the  moneys  received  by  the  department  pursuant  to  the
 provisions of this section shall be deposited to the credit of the emer-
 gency  highway  reconditioning  and  preservation  fund  reserve account
 established pursuant to the provisions of paragraph (b)  of  subdivision
 two of FORMER section eighty-nine of the state finance law. Beginning on
 April  first, nineteen hundred ninety, an additional twelve and one-half
 per centum of the moneys received by  the  department  pursuant  to  the
 A. 9933                             4
 
 provisions of this section shall be deposited to the credit of the emer-
 gency  highway  construction  and  reconstruction  fund  reserve account
 established pursuant to the provisions of paragraph (b)  of  subdivision
 two  of FORMER section eighty-nine-a of the state finance law. Beginning
 on April first, nineteen hundred ninety-one, an  additional  twelve  and
 one-half per centum of the moneys received by the department pursuant to
 the  provisions  of this section shall be deposited to the credit of the
 emergency highway reconditioning and preservation fund  reserve  account
 established  pursuant  to the provisions of paragraph (b) of subdivision
 two of FORMER section eighty-nine of the state finance law. Beginning on
 April first, nineteen hundred ninety-one, an additional twelve and  one-
 half per centum of the moneys received by the department pursuant to the
 provisions of this section shall be deposited to the credit of the emer-
 gency  construction  and reconstruction fund reserve account established
 pursuant to the provisions of paragraph (b) of subdivision two of FORMER
 section eighty-nine-a of the  state  finance  law.  Beginning  on  April
 first,  two thousand three, all of the moneys received by the department
 pursuant to the provisions of this section shall  be  deposited  in  the
 dedicated  fund  accounts  pursuant  to subdivision (d) of section three
 hundred one-j of this chapter.
   2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL  APPLY  TO
 SALES  OF  MOTOR  FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
 PER GALLON.  IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
 DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX  IMPOSED  BY
 THIS  SECTION  SHALL  BE REDUCED BY SIXTY-SIX HUNDREDTHS OF A PERCENTAGE
 POINT (.0066) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST  OF
 MOTOR  FUEL  PER  GALLON.  THE  TAX  IMPOSED  BY  THIS  SECTION SHALL BE
 SUSPENDED ENTIRELY IF THE AVERAGE PRICE  OF  MOTOR  FUEL  IN  THE  STATE
 EQUALS  OR  EXCEEDS  THREE  DOLLARS  PER GALLON. IF THE AVERAGE PRICE OF
 MOTOR FUEL IN THE STATE FALLS BELOW THREE DOLLARS PER  GALLON,  THE  TAX
 IMPOSED  BY  THIS  SECTION  SHALL  BE ASSESSED IN INCREASES OF SIXTY-SIX
 HUNDREDTHS OF A PERCENTAGE POINT (.0066) FOR  EVERY  INCREMENT  OF  FIVE
 CENTS  INCREASE  IN  THE COST OF MOTOR FUEL PER GALLON UNTIL THE AVERAGE
 PRICE OF MOTOR FUEL IN THE STATE DECREASES TO TWO  DOLLARS  AND  TWENTY-
 FIVE  CENTS  PER GALLON, AT WHICH TIME THE FULL AMOUNT OF TAX IMPOSED BY
 THIS SECTION SHALL APPLY TO SALES OF MOTOR FUEL.
   § 4. Subdivision 1 of section 284 of the tax law, as amended by  chap-
 ter 276 of the laws of 1986, is amended and a new subdivision 3 is added
 to read as follows:
   1.  [There]  SUBJECT  TO  THE  PROVISIONS OF SUBDIVISION THREE OF THIS
 SECTION, THERE is hereby levied and imposed an excise tax of four  cents
 per  gallon  upon  motor fuel (a) imported into or caused to be imported
 into the state by a distributor for use, distribution, storage  or  sale
 in the state or upon motor fuel which is produced, refined, manufactured
 or compounded by a distributor in the state (which acts shall hereinaft-
 er  in  this subdivision be encompassed by the phrase "imported or manu-
 factured") or (b) if the tax has not been imposed prior to its  sale  in
 this  state,  which  is sold by a distributor (which act, in conjunction
 with the acts described in paragraph  (a)  of  this  subdivision,  shall
 hereinafter  in  this  article  be  encompassed by the phrase "imported,
 manufactured or sold"), except when imported, manufactured or sold under
 circumstances which preclude the collection of such tax by reason of the
 United States constitution and of laws  of  the  United  States  enacted
 pursuant  thereto  or  when  imported or manufactured by an organization
 described in paragraph one or two of subdivision (a) of  section  eleven
 hundred  sixteen of this chapter or a hospital included in the organiza-
 A. 9933                             5
 
 tions described in paragraph four of such subdivision for its own use or
 consumption and except kero-jet fuel when imported or manufactured by an
 airline for use in its airplanes. Provided, further, no motor fuel shall
 be  included  in  the measure of the tax unless it shall have previously
 come to rest within the meaning of federal decisional  law  interpreting
 the  United  States  constitution.  All  tax  for the period for which a
 return is required to be filed shall be due on the date limited for  the
 filing  of the return for such period, regardless of whether a return is
 filed by such distributor as required by this  article  or  whether  the
 return which is filed correctly shows the amount of tax due.
   3.  THE  FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
 SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS  AND  TWENTY-FIVE  CENTS
 PER  GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
 DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX  IMPOSED  BY
 THIS  SECTION  SHALL  BE  REDUCED  BY  ONE-QUARTER OF A PERCENTAGE POINT
 (.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF  MOTOR
 FUEL  PER  GALLON.  THE  TAX  IMPOSED BY THIS SECTION SHALL BE SUSPENDED
 ENTIRELY IF THE AVERAGE PRICE OF MOTOR  FUEL  IN  THE  STATE  EQUALS  OR
 EXCEEDS  THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN
 THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY  THIS
 SECTION  SHALL  BE  ASSESSED IN INCREASES OF ONE-QUARTER OF A PERCENTAGE
 POINT (.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST  OF
 MOTOR FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
 DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
 THE  FULL  AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF
 MOTOR FUEL.
   § 5. Section 284-a of the tax law, as amended by section 3 of part  EE
 of chapter 63 of the laws of 2000, is amended to read as follows:
   §  284-a. Additional motor fuel tax. 1. In addition to the tax imposed
 by section two hundred eighty-four of this [chapter] ARTICLE, a like tax
 shall be imposed at the rate of three cents per gallon upon  motor  fuel
 imported,  manufactured  or  sold  within  this  state by a distributor.
 Except as otherwise provided in this section, all the provisions of this
 article except subdivision two of section two hundred  eighty-nine-e  of
 this  article  shall apply with respect to the additional tax imposed by
 this section to the same extent as if it were imposed  by  said  section
 two  hundred  eighty-four.  Beginning  on  April first, nineteen hundred
 ninety-one, four and one-sixth per centum of the moneys received by  the
 department pursuant to the provisions of this section shall be deposited
 to  the  credit of the emergency highway reconditioning and preservation
 fund reserve account established pursuant to the provisions of paragraph
 (b) of subdivision two  of  FORMER  section  eighty-nine  of  the  state
 finance  law.    Beginning  on April first, nineteen hundred ninety-one,
 four and one-sixth per centum of the moneys received by  the  department
 pursuant  to  the  provisions  of this section shall be deposited to the
 credit of the emergency highway  construction  and  reconstruction  fund
 reserve  account established pursuant to the provisions of paragraph (b)
 of subdivision two of FORMER section eighty-nine-a of the state  finance
 law.    Beginning  on April first, nineteen hundred ninety-two, an addi-
 tional eight and one-third per centum of  the  moneys  received  by  the
 department pursuant to the provisions of this section shall be deposited
 to  the  credit of the emergency highway reconditioning and preservation
 fund reserve account established pursuant to the provisions of paragraph
 (b) of subdivision two  of  FORMER  section  eighty-nine  of  the  state
 finance  law.  Beginning on April first, nineteen hundred ninety-two, an
 additional eight and one-third per centum of the moneys received by  the
 A. 9933                             6
 
 department pursuant to the provisions of this section shall be deposited
 to  the  credit of the emergency highway construction and reconstruction
 fund reserve account established pursuant to the provisions of paragraph
 (b)  of  subdivision  two  of  FORMER section eighty-nine-a of the state
 finance law.  Beginning on April first, two thousand,  seventy-five  per
 centum  of  the  moneys  received  by  the  department  pursuant  to the
 provisions of this section shall be  deposited  in  the  dedicated  fund
 accounts  pursuant  to subdivision (d) of section three hundred one-j of
 this chapter.  Beginning on April first, two thousand three, all of  the
 moneys  received  by  the  department pursuant to the provisions of this
 section shall be deposited in the dedicated fund  accounts  pursuant  to
 subdivision (d) of section three hundred one-j of this chapter.
   2.  THE  FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
 SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS  AND  TWENTY-FIVE  CENTS
 PER  GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
 DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX  IMPOSED  BY
 THIS SECTION SHALL BE REDUCED BY TWO-TENTHS OF A PERCENTAGE POINT (.002)
 FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER
 GALLON.  THE  TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF
 THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE  EQUALS  OR  EXCEEDS  THREE
 DOLLARS  PER  GALLON.    IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
 FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED  BY  THIS  SECTION
 SHALL  BE  ASSESSED  IN  INCREASES OF   TWO-TENTHS OF A PERCENTAGE POINT
 (.002) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST  OF  MOTOR
 FUEL  PER  GALLON  UNTIL  THE  AVERAGE  PRICE OF MOTOR FUEL IN THE STATE
 DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
 THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO  SALES  OF
 MOTOR FUEL.
   §  6. Section 284-c of the tax law, as amended by section 4 of part EE
 of chapter 63 of the laws of 2000, is amended to read as follows:
   § 284-c. Supplemental motor fuel tax. 1.  In  addition  to  the  taxes
 imposed   by   sections   two   hundred   eighty-four  and  two  hundred
 eighty-four-a of this [chapter] ARTICLE, a like tax shall be imposed  at
 the  rate  of one cent per gallon upon motor fuel imported, manufactured
 or sold within this state by a distributor. Except for paragraph (b)  of
 subdivision  three of section two hundred eighty-nine-c OF THIS ARTICLE,
 all the provisions of this article  shall  apply  with  respect  to  the
 supplemental  tax  imposed  by  this section to the same extent as if it
 were imposed by said section two hundred eighty-four. On and  after  the
 first  day  of  October,  nineteen  hundred seventy-two, twenty-five per
 centum of  the  monies  received  by  the  department  pursuant  to  the
 provisions of this section shall be deposited to the credit of the emer-
 gency  highway reconditioning and preservation fund established pursuant
 to the provisions of FORMER section eighty-nine  of  the  state  finance
 law.  Beginning  on  April first, nineteen hundred eighty-three, twenty-
 five per centum of the monies received by the department pursuant to the
 provisions of this section shall be deposited to the credit of the emer-
 gency highway construction and reconstruction fund established  pursuant
 to  the  provisions of FORMER section eighty-nine-a of the state finance
 law. Beginning on April first, nineteen hundred  ninety,  an  additional
 twelve  and one-half per centum of the monies received by the department
 pursuant to the provisions of this section shall  be  deposited  to  the
 credit  of  the  emergency  highway reconditioning and preservation fund
 reserve account established pursuant to the provisions of paragraph  (b)
 of  subdivision  two  of FORMER section eighty-nine of the state finance
 law. Beginning on April first, nineteen hundred  ninety,  an  additional
 A. 9933                             7
 
 twelve  and one-half per centum of the moneys received by the department
 pursuant to the provisions of this section shall  be  deposited  to  the
 credit  of  the  emergency  highway construction and reconstruction fund
 reserve  account established pursuant to the provisions of paragraph (b)
 of subdivision two of FORMER section eighty-nine-a of the state  finance
 law.  Beginning  on  April  first, nineteen hundred ninety-one, an addi-
 tional twelve and one-half per centum of  the  moneys  received  by  the
 department pursuant to the provisions of this section shall be deposited
 to  the  credit of the emergency highway reconditioning and preservation
 fund reserve account established pursuant to the provisions of paragraph
 (b) of subdivision two  of  FORMER  section  eighty-nine  of  the  state
 finance  law.  Beginning on April first, nineteen hundred ninety-one, an
 additional twelve and one-half per centum of the moneys received by  the
 department pursuant to the provisions of this section shall be deposited
 to  the  credit of the emergency highway construction and reconstruction
 fund reserve account established pursuant to the provisions of paragraph
 (b) of subdivision two of FORMER  section  eighty-nine-a  of  the  state
 finance  law.  Beginning  on April first, two thousand three, all of the
 moneys received by the department pursuant to  the  provisions  of  this
 section  shall  be  deposited in the dedicated fund accounts pursuant to
 subdivision (d) of section three hundred one-j of this chapter.
   2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL  APPLY  TO
 SALES  OF  MOTOR  FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
 PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS  TWO
 DOLLARS  AND  TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
 THIS SECTION SHALL BE REDUCED BY SIXTY-SIX HUNDREDTHS  OF  A  PERCENTAGE
 POINT  (.0066) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
 MOTOR FUEL PER  GALLON.  THE  TAX  IMPOSED  BY  THIS  SECTION  SHALL  BE
 SUSPENDED  ENTIRELY  IF  THE  AVERAGE  PRICE  OF MOTOR FUEL IN THE STATE
 EQUALS OR EXCEEDS THREE DOLLARS PER GALLON.  IF  THE  AVERAGE  PRICE  OF
 MOTOR  FUEL  IN  THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX
 IMPOSED BY THIS SECTION SHALL BE ASSESSED IN  INCREASES  OF    SIXTY-SIX
 HUNDREDTHS  OF  A  PERCENTAGE  POINT (.0066) FOR EVERY INCREMENT OF FIVE
 CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON  UNTIL  THE  AVERAGE
 PRICE  OF  MOTOR  FUEL IN THE STATE DECREASES TO TWO DOLLARS AND TWENTY-
 FIVE CENTS PER GALLON, AT WHICH TIME THE FULL AMOUNT OF TAX  IMPOSED  BY
 THIS SECTION SHALL APPLY TO SALES OF MOTOR FUEL.
   §  7.  Subdivision  (b)  of  section 1105 of the tax law is amended by
 adding a new paragraph 5 to read as follows:
   (5) NOTWITHSTANDING THE PROVISIONS OF OF THIS  SUBDIVISION,  THE  FULL
 AMOUNT  OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF MOTOR
 FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON.    IF
 THE  AVERAGE  PRICE  OF  MOTOR FUEL IN THE STATE EXCEEDS TWO DOLLARS AND
 TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY THIS  SECTION
 SHALL  BE REDUCED BY ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR EVERY
 INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL  PER  GALLON.
 THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF THE AVER-
 AGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR EXCEEDS THREE DOLLARS PER
 GALLON.  IF  THE  AVERAGE  PRICE  OF MOTOR FUEL IN THE STATE FALLS BELOW
 THREE DOLLARS PER GALLON, THE TAX  IMPOSED  BY  THIS  SECTION  SHALL  BE
 ASSESSED  IN  INCREASES OF ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR
 EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST  OF  MOTOR  FUEL  PER
 GALLON  UNTIL  THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE DECREASES TO
 TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT  WHICH  TIME  THE  FULL
 AMOUNT  OF  TAX  IMPOSED  BY  THIS SECTION SHALL APPLY TO SALES OF MOTOR
 FUEL.
 A. 9933                             8

   § 8. Section 1201 of the tax law is amended by adding a  new  subdivi-
 sion (n) to read as follows:
   (N) ANY CITY IN THIS STATE HAVING A POPULATION OF ONE MILLION OR MORE,
 ACTING  THROUGH  ITS  LOCAL  LEGISLATIVE BODY, MAY IMPOSE LIMITATIONS ON
 TAXES ON DIESEL MOTOR  FUEL  AND  MOTOR  FUEL  IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF    SUBDIVISION (B) OF SECTION ELEVEN HUNDRED FIVE OF THIS
 CHAPTER.
   § 9. Section 1202 of the tax law is amended by adding a  new  subdivi-
 sion (h) to read as follows:
   (H)  ANY  COUNTY IN THIS STATE, EXCEPT A COUNTY  WHOLLY WITHIN A CITY,
 ACTING THROUGH ITS LOCAL LEGISLATIVE BODY,  MAY  IMPOSE  LIMITATIONS  ON
 TAXES  ON  DIESEL  MOTOR  FUEL  AND  MOTOR  FUEL  IN ACCORDANCE WITH THE
 PROVISIONS OF SUBDIVISION (B) OF SECTION ELEVEN  HUNDRED  FIVE  OF  THIS
 CHAPTER.
   §  10.  This act shall take effect on the ninetieth day after it shall
 have become a law and shall apply to sales  of  diesel  motor  fuel  and
 motor fuel occurring on and after such date.