S T A T E O F N E W Y O R K
________________________________________________________________________
10526
I N A S S E M B L Y
April 2, 2010
___________
Introduced by M. of A. TEDISCO -- Multi-Sponsored by -- M. of A. ALFANO,
BACALLES, BALL, BARCLAY, BARRA, BOYLE, BURLING, BUTLER, CALHOUN,
CONTE, CROUCH, DUPREY, FINCH, FITZPATRICK, GIGLIO, HAWLEY, HAYES,
KOLB, P. LOPEZ, McDONOUGH, McKEVITT, MOLINARO, OAKS, O'MARA, QUINN,
RABBITT, RAIA, REILICH, SALADINO, SAYWARD, SCOZZAFAVA, SPANO, THIELE,
TOBACCO, TOWNSEND -- read once and referred to the Committee on Ways
and Means
AN ACT to amend the tax law, in relation to reducing the tax on petrole-
um businesses and the sales and compensating use taxes on the retail
sales of motor fuel and diesel motor fuel
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (a) of section 301 of the tax law, as amended
by chapter 190 of the laws of 1990, is amended to read as follows:
(a)(1) General.--Notwithstanding any other provision of this chapter,
or of any other law, for taxable years commencing on or after the first
day of April, nineteen hundred eighty-four, but including that portion
of any taxable year commencing prior thereto to the extent of that
portion of such year which includes the period which commences with the
first day of April, nineteen hundred eighty-four, and ending with (but
not including) taxable years commencing on and after the first day of
September, nineteen hundred ninety, but including that portion of any
taxable year commencing prior thereto to the extent of that portion of
such year which includes the period which terminates with the thirty-
first day of August, nineteen hundred ninety, there is hereby imposed
upon every petroleum business, for the privilege of engaging in busi-
ness, doing business, employing capital, owning or leasing property, or
maintaining an office in this state, for all or any part of each of its
taxable years, an annual tax equal to two and three-quarters per centum,
provided that for taxable years commencing on or after the first day of
June, nineteen hundred ninety, but including that portion of any taxable
year commencing prior thereto to the extent of that portion of such year
which includes the period which commences with the first day of June,
nineteen hundred ninety, the annual tax shall be equal to [seven and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09706-02-9
A. 10526 2
two-tenths] THREE AND THREE-FIFTHS per centum, of (i) its gross receipts
from sales of petroleum where shipments are made to points within the
state, (ii) the consideration given or contracted to be given by it for
petroleum (other than aviation fuel) which it imported or caused to be
imported (by a person other than one which is subject to tax under this
article) into this state for consumption by it in this state, and (iii)
the consideration given or contracted to be given by it for aviation
fuel consumed by it in this state. In no event shall the tax imposed by
this article be less than [two hundred fifty] ONE HUNDRED TWENTY-FIVE
dollars. For the purpose of the tax imposed by this section, any taxable
year commencing prior to the first day of September, nineteen hundred
ninety but ending after the thirty-first day of August, nineteen hundred
ninety shall be deemed terminated as of such thirty-first day of August
and such year shall be brought to a close as of such thirty-first day of
August.
(2) Credit, refund or reimbursement. (A) An electric corporation, as
defined in subdivision thirteen of section two of the public service
[service] law, subject to the supervision of the department of public
service shall be allowed a credit against the tax imposed by this
section, or a refund or reimbursement, with respect to residual petrole-
um product or diesel motor fuel (which is not enhanced diesel motor
fuel) used by such electric corporation to fuel generators for the
purpose of manufacturing or producing electricity. Such credit or refund
shall be applicable only to gallonage which is included in the return of
such electric corporation and the consideration for which has been
subjected to tax under this section on and after June first, nineteen
hundred ninety at the rate of [seven and two-tenths] THREE AND
THREE-FIFTHS per centum; such reimbursement shall apply only to gallo-
nage purchased in this state by such electric corporation on and after
June first, nineteen hundred ninety wherein (i) with respect to such
gallonage so purchased a tax under this section has been imposed at the
rate of [seven and two-tenths] THREE AND THREE-FIFTHS per centum and
(ii) such electric corporation absorbed the entire amount of such tax in
the purchase price of such fuel. The amount of such credit or refund
shall be determined by multiplying the consideration given with respect
to such eligible gallons of residual petroleum product and diesel prod-
uct times four and forty-five hundredths percent. The amount of such
reimbursement shall be equal to the result obtained by subtracting from
the entire amount of the tax absorbed by such electric corporation the
product of such entire amount of tax absorbed times two and seventy-five
hundredths divided by [seven and two-tenths] THREE AND THREE-FIFTHS.
(B) An aviation fuel business shall be allowed a credit against the tax
imposed by clause (iii) of paragraph (1) of this subdivision on and
after June first, nineteen hundred ninety with respect to kero-jet fuel
with respect to which a tax has been imposed at the rate of [seven and
two-tenths] THREE AND THREE-FIFTHS per centum and which was consumed in
this state by such business in the operation of its aircraft. The amount
of such credit shall be four and forty-five hundredths percent of the
consideration given or contracted to be given by such business for such
kero-jet fuel consumed by it in this state.
S 2. Subdivision (a) of section 301-f of the tax law, as added by
chapter 190 of the laws of 1990, is amended to read as follows:
(a) Imposition of tax surcharge. In addition to the tax imposed by
section three hundred one of this article, for taxable years commencing
on or after June first, nineteen hundred ninety, but including that
portion of any taxable year commencing prior thereto to the extent of
A. 10526 3
that portion of such year which includes the period which commences with
June first, nineteen hundred ninety, and ending with (but not including)
taxable years commencing on and after September first, nineteen hundred
ninety, but including that portion of any taxable year commencing prior
thereto to the extent of that portion of such year which included the
period which terminates with August thirty-first, nineteen hundred nine-
ty, there is hereby imposed upon every petroleum business, for all or
any part of each of its taxable years, a tax surcharge equal to
[fifteen] SEVEN AND ONE-HALF percent of the rate of tax imposed by
section three hundred one of this article on (i) its gross receipts from
sales of petroleum where shipments are made to points within the state,
(ii) the consideration given or contracted to be given by it for petro-
leum (other than aviation fuel) which it imported or caused to be
imported (by a person other than one which is subject to tax under this
article) into this state for consumption by it in this state, and (iii)
the consideration given or contracted to be given by it for aviation
fuel consumed by it in this state. The tax surcharge shall be applicable
to receipts from or consideration given with respect to all deliveries
on and after June first, nineteen hundred ninety. For purposes of the
tax surcharge imposed by this section, any taxable year commencing prior
to September first, nineteen hundred ninety but ending after August
thirty-first, nineteen hundred ninety shall be deemed terminated as of
such August thirty-first and such year shall be brought to a close as of
such August thirty-first. Except as provided in subdivision (c) of this
section, all of the provisions of this article applicable to the tax
imposed by section three hundred one of this article shall apply with
respect to the tax surcharge imposed by this section to the same extent
as if it were imposed by such section three hundred one, insofar as such
provisions can be made applicable to the tax surcharge imposed by this
section, with such modification as may be necessary to adapt such
provisions to the tax surcharge imposed by this section.
S 3. Paragraph 1 of subdivision (a) of section 301-j of the tax law,
as amended by chapter 309 of the laws of 1996, is amended to read as
follows:
(1) In addition to the taxes imposed by sections three hundred one-a
and three hundred one-e of this article, for taxable months commencing
on or after July first, nineteen hundred ninety-one there is hereby
imposed upon every petroleum business subject to tax imposed under
section three hundred one-a of this article and every aviation fuel
business subject to the aviation gasoline component of the tax imposed
under section three hundred one-e of this article, a supplemental month-
ly tax for each or any part of a taxable month at a rate of [four and
one-half] TWO AND ONE-QUARTER cents per gallon with respect to the
products included in each component of the taxes imposed by such
[sections] SECTION three hundred one-a and the aviation gasoline compo-
nent of the tax imposed by such section three hundred one-e of this
article.
S 4. Paragraph 1 of subdivision (m) of section 1111 of the tax law, as
amended by section 1 of part M1 of chapter 109 of the laws of 2006, is
amended to read as follows:
(1) The sales tax imposed by subdivision (a) of section eleven hundred
five of this article and the compensating use tax imposed by section
eleven hundred ten of this article, in regard to retail sales of motor
fuel and diesel motor fuel, shall be [eight] FOUR cents per gallon.
S 5. This act shall take effect immediately.