Assembly Bill A10177

2009-2010 Legislative Session

Directs the department to issue the tax-exemption coupons contemplated by section 284-e of the tax law no later than 60 days after enactment

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 09, 2010	referred to ways and means

2009-A10177 (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §284-e, Tax L

2009-A10177 (ACTIVE) - Summary

Directs the department to issue the tax-exemption coupons contemplated by section 284-e of the tax law no later than 60 days after enactment.

2009-A10177 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A10177

TITLE  OF  BILL:   An act to amend the tax law, in relation to issuing
coupons for tax exempt fuel sales on Indian reservations

PURPOSE OR GENERAL IDEA OF BILL: Directs the department to  issue  the
tax-exemption  coupons contemplated by section 284-e of the tax law no
later than 60 days after enactment.

SUMMARY OF SPECIFIC PROVISIONS: Section 1:  Amends  paragraph  (b)  of
subdivision  1  and paragraph (d) of subdivision 3 of section 284-e of
the tax law, as added by section 4 of part k of chapter 61 of the laws
of 2005, are amended and a new subdivision 6 is added to provide  that
a  distributor  shall  sell  only motor fuel or Diesel motor fuel upon
which the motor fuel tax or Diesel motor fuel tax has been  previously
paid  or assumed by such distributor to Indian nations or tribes or to
reservation motor fuel sellers and other purchasers, but that the  tax
shall  not  be  collected  on  any  purchase  for  which the purchaser
presents a valid Indian tax-exemption coupon.

Section 2: Provides that this bill shall take effect on  the  sixtieth
day after it shall have become a law.

JUSTIFICATION:  Tax  Law Section 284-e took effect in 2006 in order to
establish a mechanism  for  the  State  to  collect  excise  tax  from
distributors  on  motor fuel and Diesel motor fuel sold through Native

American outlets to non-tribal members, while also providing  a  means
for  qualified  Indians  to  purchase tax-exempt motor fuel and Diesel
motor fuel for tribal use and/or consumption. That legislation did not
specify a deadline for the Department of  Taxation  and  Finance  (the
Department)  to  issue  tax-exemption  coupons.  Since Section 284-e's
enactment, the Department has not issued the  requisite  tax-exemption
coupons  and  has not enforced other aspects of the Tax Law that would
otherwise require distributors to sell motor  fuel  and  Diesel  motor
fuel  on  which  the  tax  has been previously paid or assumed by such
distributors to tribal outlets for resale to non-tribal members.

This  legislation  would  direct   the   Department   to   issue   the
tax-exemption  coupons  contemplated by Section 284-e no later than 60
days after enactment, which would allow more than sufficient time  for
the  Department  to issue the requisite coupons. If enacted, this bill
would remove the Department's discretion with  regard  to  whether  to
issue  tax-exemption  coupons,  and would mandate the issuance of such
coupons within sixty days. The bill makes clear that the  Department's
failure  to  issue  such  coupons  would not relieve the distributors'
obligation to sell only motor fuel or Diesel motor fuel on  which  the
tax has been previously paid or assumed by such distributors as of the
60  day  deadline.  However, the bill also specifies that in the event
the Department fails to issue the requisite  coupons,  the  Department
would be subject to an action for injunctive relief directing that the
coupons be issued as contemplated, as well as for refunds to qualified
Indians for tax-exempt sales that occur after the 60 day deadline.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATION: Revenue generating.


EFFECTIVE  DATE:  This act shall take effect on the sixtieth day after
it shall have become a law.

2009-A10177 (ACTIVE) - Bill Text download pdf

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

                                  10177

                          I N  A S S E M B L Y

                              March 9, 2010
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation  to  issuing  coupons  for  tax
  exempt fuel sales on Indian reservations

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

  Section 1. Paragraph (b) of subdivision 1 and paragraph (d) of  subdi-
vision  3 of section 284-e of the tax law, as added by section 4 of part
K of chapter 61 of the laws of 2005, are amended and a new subdivision 6
is added to read as follows:
  (b) In order to ensure an adequate quantity of motor fuel  and  Diesel
motor  fuel  on  Indian reservations which may be purchased by qualified
Indians exempt from the motor fuel tax and Diesel motor  fuel  tax,  the
department  shall  provide  Indian  nations and tribes within this state
with Indian tax exemption coupons as set  forth  in  this  section,  AND
SHALL PROVIDE SUCH COUPONS NO LATER THAN SIXTY DAYS AFTER THIS ACT SHALL
HAVE  BECOME  A  LAW.  A  reservation motor fuel seller shall be able to
present such Indian tax exemption  coupons  to  a  distributor  licensed
pursuant to this article in order to purchase motor fuel or Diesel motor
fuel  exempt  from  the imposition of the motor fuel tax or Diesel motor
fuel tax. Qualified Indians may purchase motor fuel or Diesel motor fuel
from a reservation motor fuel seller exempt from the motor fuel  tax  or
Diesel  motor  fuel  tax  even though the motor fuel tax or Diesel motor
fuel tax on such motor fuel or Diesel motor fuel will have  been  previ-
ously paid or assumed by, or passed through to such distributor.
  (d)  [A]  UPON  ISSUANCE  OF THE COUPONS, BUT NO LATER THAN SIXTY DAYS
AFTER THIS ACT SHALL HAVE BECOME A LAW, A DISTRIBUTOR  SHALL  SELL  ONLY
MOTOR  FUEL OR DIESEL MOTOR FUEL UPON WHICH THE MOTOR FUEL TAX OR DIESEL
MOTOR FUEL TAX HAS BEEN PREVIOUSLY PAID OR ASSUMED BY  SUCH  DISTRIBUTOR
TO  INDIAN  NATIONS  OR  TRIBES OR TO RESERVATION MOTOR FUEL SELLERS AND
OTHER PURCHASERS, BUT A distributor shall not collect or  pass  through,
as the case may be, the motor fuel tax or Diesel motor fuel tax from any
purchaser  to the extent the purchaser gives such distributor Indian tax
exemption coupons entitling the purchaser to purchase such quantities of

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

                                                           LBD16335-01-0

A. 10177                            2

motor fuel or Diesel motor fuel as allowed for on each such  Indian  tax
exemption  coupon without paying the motor fuel tax or Diesel motor fuel
tax.
  6.  FAILURE  TO ISSUE COUPONS OR DELAY. (A) THE FAILURE OF THE DEPART-
MENT TO ISSUE COUPONS AS PRESCRIBED BY THIS  SECTION  OR  TO  ISSUE  ANY
OTHER  IMPLEMENTING  REGULATIONS OR GUIDANCE SHALL NOT RELIEVE DISTRIBU-
TORS OF THE OBLIGATION TO SELL ONLY MOTOR FUEL OR DIESEL MOTOR  FUEL  ON
WHICH  THE  MOTOR  FUEL TAX OR DIESEL MOTOR FUEL TAX HAS BEEN PREVIOUSLY
PAID OR ASSUMED BY SUCH DISTRIBUTORS TO INDIAN NATIONS OR TRIBES  OR  TO
RESERVATION  MOTOR  FUEL SELLERS AS OF THE SIXTIETH DAY AFTER THE EFFEC-
TIVE DATE OF THIS SUBDIVISION. IN THE EVENT THAT THE DEPARTMENT FAILS TO
ISSUE COUPONS AS PRESCRIBED BY THIS SECTION, AN INDIAN NATION OR  TRIBE,
A  DISTRIBUTOR  REGISTERED PURSUANT TO THIS ARTICLE, OR OTHER INTERESTED
PARTY MAY BRING AN ACTION FOR INJUNCTIVE RELIEF DIRECTING THE DEPARTMENT
TO ISSUE THE PRESCRIBED COUPONS.
  (B) FOR MOTOR FUEL AND DIESEL  MOTOR  FUEL  SOLD  TO  INDIAN  NATIONS,
TRIBES OR TO RESERVATION MOTOR FUEL SELLERS BETWEEN SIXTY DAYS AFTER THE
EFFECTIVE  DATE  OF  THIS  SUBDIVISION AND SUCH DATE THAT THE DEPARTMENT
ISSUES THE PRESCRIBED COUPONS, A NATION, TRIBE OR RESERVATION MOTOR FUEL
SELLER SHALL BE ENTITLED TO A REFUND FROM THE DEPARTMENT FOR TAXES  PAID
UNDER  THIS ARTICLE ON THE QUANTITIES OF MOTOR FUEL OR DIESEL MOTOR FUEL
SOLD OR DISTRIBUTED TO QUALIFIED INDIANS OF THE SELLER'S OWN  TRIBE  FOR
TRIBAL  PURPOSES  OR FOR PERSONAL CONSUMPTION. SUCH REFUND SHALL BE PAID
THIRTY DAYS FOLLOWING SUBMISSION OF AN APPLICATION  FOR  A  REFUND.  THE
FAILURE  OF THE DEPARTMENT TO ISSUE REFUNDS OR TAKE OTHER ADMINISTRATIVE
ACTIONS FOR THE ISSUANCE OF REFUNDS SHALL NOT  RELIEVE  DISTRIBUTORS  OF
THE  OBLIGATION  TO COMPLY WITH THIS SECTION, BUT SHALL ENTITLE A PERSON
WITH A CLAIM FOR A REFUND  TO  FILE  AN  ACTION  FOR  INJUNCTIVE  RELIEF
DIRECTING THE DEPARTMENT TO ISSUE REFUNDS AS REQUIRED HEREIN.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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Assembly Bill A10177

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Actions

2009-A10177 (ACTIVE) - Details

2009-A10177 (ACTIVE) - Summary

2009-A10177 (ACTIVE) - Sponsor Memo

2009-A10177 (ACTIVE) - Bill Text download pdf

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Sponsored By

MAGEE

Archive: Last Bill Status - In Assembly Committee

Actions

2009-A10177 (ACTIVE) - Details

2009-A10177 (ACTIVE) - Summary

2009-A10177 (ACTIVE) - Sponsor Memo

2009-A10177 (ACTIVE) - Bill Text download pdf

Comments