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

                                  2665

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

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

AN ACT to amend the tax law, in  relation  to  exempting  fuel  used  by
  providers  of  transportation  services  to  the transit disabled from
  certain taxes

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

  Section  1. Paragraph (a) of subdivision 3 of section 282-a of the tax
law, as added by chapter 261 of the laws of 1988, is amended to read  as
follows:
  (a)  The  tax  imposed  by this section shall not apply to the sale of
untaxed Diesel motor fuel to or the use of such fuel by an  organization
described  in  paragraph one or two of subdivision (a) of section eleven
hundred sixteen of this chapter, OR  TO  A  PROVIDER  OF  TRANSPORTATION
SERVICES  FOR  USE IN VEHICLES USED IN THE TRANSPORTATION OF THE TRANSIT
DISABLED where such Diesel motor fuel is used by such  organization  for
its  own  use  or  consumption. FOR PURPOSES OF THIS PARAGRAPH, "TRANSIT
DISABLED" SHALL MEAN INDIVIDUALS WHO, BY REASON OF ILLNESS, AGE, INJURY,
CONGENITAL MALFUNCTION OR OTHER PERMANENT  OR  TEMPORARY  INCAPACITY  OR
DISABILITY,  ARE UNABLE, WITHOUT SPECIAL FACILITIES, PLANNING OR DESIGN,
TO USE MASS TRANSPORTATION FACILITIES EFFECTIVELY.
  S 2. Paragraph (g) of subdivision 3 of section 289-c of the  tax  law,
as  amended  by  chapter  276 of the laws of 1986, is amended to read as
follows:
  (g) 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 organizations described in paragraph four of such subdi-
vision, or a fire company or fire  department,  as  defined  in  section
three  of the volunteer firefighters' benefit law, or a volunteer rescue
squad supported in whole or in part by  tax  money,  OR  A  PROVIDER  OF
TRANSPORTATION  SERVICES  FOR  THE TRANSIT DISABLED DESCRIBED IN SECTION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05635-01-9
              

A. 2665                             2

TWO HUNDRED EIGHTY-TWO-A OF THIS ARTICLE where any such  entity  is  the
purchaser,  user  or  consumer  of  motor fuel or diesel motor fuel in a
vehicle owned and operated by it and used exclusively for its  purposes,
or  an  airline  where  it  has  purchased  kero-jet fuel for use in its
airplanes shall be reimbursed the amount of the taxes on motor fuel  and
diesel  motor fuel imposed by or pursuant to the authority of this arti-
cle included in the price paid for such motor fuel or diesel motor fuel.
  S 3. Section 301-b of the tax law is amended by adding a new  subdivi-
sion (k) to read as follows:
  (K)  EXEMPTION FOR PROVIDERS OF TRANSPORTATION SERVICES TO THE TRANSIT
DISABLED. A USE BY A PROVIDER OF TRANSPORTATION SERVICES TO THE DISABLED
AS DESCRIBED IN SECTION TWO HUNDRED  EIGHTY-TWO-A  OF  THIS  CHAPTER  OF
DIESEL  MOTOR FUEL OR RESIDUAL PETROLEUM PRODUCT WHERE SUCH DIESEL MOTOR
FUEL OR RESIDUAL PETROLEUM PRODUCT WAS USED AND CONSUMED EXCLUSIVELY  IN
PROVIDING TRANSPORTATION SERVICES TO THE TRANSIT DISABLED.
  S  4. Section 301-c of the tax law is amended by adding a new subdivi-
sion (p) to read as follows:
  (P) REIMBURSEMENT FOR PROVIDERS  OF  TRANSPORTATION  SERVICES  TO  THE
TRANSIT  DISABLED. A USE BY A PROVIDER OF TRANSPORTATION SERVICES TO THE
DISABLED AS DESCRIBED IN SECTION TWO HUNDRED EIGHTY-TWO-A OF THIS  CHAP-
TER OF DIESEL MOTOR FUEL OR RESIDUAL PETROLEUM PRODUCT WHERE SUCH DIESEL
MOTOR  FUEL  OR  RESIDUAL PETROLEUM PRODUCT WAS USED AND CONSUMED EXCLU-
SIVELY IN PROVIDING TRANSPORTATION SERVICES  TO  THE  TRANSIT  DISABLED.
THIS  REIMBURSEMENT MAY BE CLAIMED ONLY WHERE (1) ANY TAX IMPOSED PURSU-
ANT TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SUCH GALLONAGE AND THE
ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY SUCH PURCHASER,  AND  (2)
SUCH  PURCHASER  POSSESSES DOCUMENTARY PROOF SATISFACTORY TO THE COMMIS-
SIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE AMOUNT OF SUCH TAX.
PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF  TO
QUALIFY FOR ANY REIMBURSEMENT PROVIDED HEREUNDER AS THE COMMISSIONER MAY
DEEM APPROPRIATE.
  S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44) FUEL SOLD TO A PROVIDER OF TRANSPORTATION SERVICES TO THE TRANSIT
DISABLED AS DESCRIBED IN SECTION TWO HUNDRED EIGHTY-TWO-A OF THIS  CHAP-
TER  FOR  USE  IN PROVIDING TRANSPORTATION SERVICES TO THE TRANSIT DISA-
BLED.
  S 6. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.