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.