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

                                  3363

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2009
                               ___________

Introduced   by   M.   of  A.  EDDINGTON,  DelMONTE,  DESTITO,  GUNTHER,
  HYER-SPENCER, MAGNARELLI, RAMOS --  read  once  and  referred  to  the
  Committee on Ways and Means

AN  ACT to amend the tax law, in relation to eliminating state sales and
  compensating use taxes on motor fuels and  authorizing  localities  to
  eliminate such taxes

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

  Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
by adding a new paragraph 44 to read as follows:
  (44) MOTOR FUEL AND DIESEL MOTOR FUEL.
  S  2.  Subdivision  (b)  of  section 1107 of the tax law is amended by
adding a new clause 12 to read as follows:
  (12) EXCEPT AS OTHERWISE  PROVIDED  BY  LAW,  THE  EXEMPTION  PROVIDED
PURSUANT  TO  PARAGRAPH  FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN
HUNDRED FIFTEEN OF THIS ARTICLE RELATING TO MOTOR FUEL AND DIESEL  MOTOR
FUEL  SHALL  BE  APPLICABLE PURSUANT TO A LOCAL LAW, ORDINANCE OR RESOL-
UTION ADOPTED BY A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION.  SUCH
CITY  IS  AUTHORIZED  TO  ADOPT OR REPEAL SUCH A LOCAL LAW, ORDINANCE OR
RESOLUTION. SUCH ADOPTION OR REPEAL SHALL ALSO BE DEEMED  TO  AMEND  ANY
LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING TAXES
PURSUANT  TO SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS CHAP-
TER.
  S 3. Subparagraph (i) of paragraph 1 of  subdivision  (a)  of  section
1210  of the tax law, as amended by section 4 of part SS-1 of chapter 57
of the laws of 2008, is amended to read as follows:
  (i) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04602-01-9
              

A. 3363                             2

definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as  otherwise  provided.  Any  local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  of section eleven hundred nineteen of this chapter. Any local
law, ordinance or resolution enacted  by  any  city,  county  or  school
district,  imposing the taxes authorized by this subdivision, shall omit
the residential solar energy systems equipment exemption provided for in
subdivision (ee), the clothing and footwear exemption  provided  for  in
paragraph thirty of subdivision (a) and the qualified empire zone enter-
prise  exemptions  provided  for  in  subdivision  (z) of section eleven
hundred fifteen of this chapter, unless  such  city,  county  or  school
district  elects  otherwise  as  to either such residential solar energy
systems equipment exemption or such clothing and footwear  exemption  or
such  qualified empire zone enterprise exemptions; provided that if such
a city having a population of one million or more  in  which  the  taxes
imposed  by  section  eleven hundred seven of this chapter are in effect
enacts the resolution described in subdivision (k) of  this  section  or
repeals  such  resolution or enacts the resolution described in subdivi-
sion (l) of this section or repeals such resolution or enacts the resol-
ution described in subdivision (n)  of  this  section  or  repeals  such
resolution,  such resolution or repeal shall also be deemed to amend any
local law, ordinance or resolution enacted by such a city imposing  such
taxes pursuant to the authority of this subdivision, whether or not such
taxes are suspended at the time such city enacts its resolution pursuant
to  subdivision  (k),  (l)  or (n) of this section or at the time of any
such repeal; provided, further, that any such local  law,  ordinance  or
resolution  and  section eleven hundred seven of this chapter, as deemed
to be amended in the event a city of one million or more enacts a resol-
ution pursuant to the authority of subdivision (k), (l) or (n)  of  this
section, shall be further amended, as provided in section twelve hundred
eighteen  of  this subpart, so that the residential solar energy systems
equipment exemption or the clothing and footwear exemption or the quali-
fied empire zone enterprise exemptions in any such local law,  ordinance
or  resolution  or in such section eleven hundred seven are the same, as
the case may be, as  the  residential  solar  energy  systems  equipment
exemption  provided  for  in subdivision (ee), the clothing and footwear
exemption in paragraph thirty of subdivision (a) or the qualified empire

A. 3363                             3

zone enterprise exemptions in subdivision (z) of section eleven  hundred
fifteen of this chapter.  ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED
BY ANY CITY, COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY
THIS  SUBDIVISION,  SHALL  OMIT  THE  MOTOR  FUEL  AND DIESEL MOTOR FUEL
EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY
OR SCHOOL DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY HAVING
A  POPULATION  OF ONE MILLION OR MORE ENACTS THE RESOLUTION DESCRIBED IN
SUBDIVISION (P) OF THIS SECTION OR REPEALS SUCH RESOLUTION, SUCH  RESOL-
UTION  OR  REPEAL SHALL ALSO BE DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE
OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING SUCH TAXES PURSUANT TO THE
AUTHORITY OF THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES  ARE  SUSPENDED
AT  THE TIME SUCH CITY ENACTS ITS RESOLUTION PURSUANT TO SUBDIVISION (P)
OF THIS SECTION OR AT THE TIME OF ANY SUCH  REPEAL;  PROVIDED,  FURTHER,
THAT  ANY  SUCH  LOCAL  LAW,  ORDINANCE OR RESOLUTION AND SECTION ELEVEN
HUNDRED SEVEN OF THIS CHAPTER, AS DEEMED TO BE AMENDED IN  THE  EVENT  A
CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION PURSUANT TO THE AUTHORI-
TY  OF  SUBDIVISION  (P)  OF  THIS SECTION, SHALL BE FURTHER AMENDED, AS
PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS SUBPART, SO THAT THE
MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION IN ANY SUCH LOCAL LAW,  ORDI-
NANCE  OR RESOLUTION OR IN SUCH SECTION ELEVEN HUNDRED SEVEN IS THE SAME
AS  THE  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL  EXEMPTION  IN  PARAGRAPH
FORTY-FOUR  OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
CHAPTER.
  S 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
section  12  of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
  (d) A local law, ordinance or resolution imposing any tax pursuant  to
this  section,  increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy  sources  and
services  described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of  tax  imposed  on  such
energy  sources  and  services  or  providing  for  the credit or refund
described in clause six of subdivision (a)  of  section  eleven  hundred
nineteen  of this chapter must go into effect only on one of the follow-
ing dates: March first, June first, September first or  December  first;
provided,  that  a  local law, ordinance or resolution providing for the
exemption described in paragraph thirty of subdivision (a) or  providing
for  the  exemptions  described  in  subdivision  (z)  of section eleven
hundred fifteen of this chapter  or  repealing  any  such  exemption  so
provided  and a resolution enacted pursuant to the authority of subdivi-
sion (k) of this section providing such exemption or subdivision (l)  of
this  section  providing  such exemptions or repealing such exemption or
exemptions so  provided  must  go  into  effect  only  on  March  first;
PROVIDED,  FURTHER,  THAT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING
FOR THE EXEMPTION DESCRIBED IN PARAGRAPH FORTY-FOUR OF  SUBDIVISION  (A)
OF  SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR REPEALING ANY SUCH
EXEMPTION SO PROVIDED AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY
OF SUBDIVISION (P) OF THIS SECTION PROVIDING SUCH EXEMPTION OR REPEALING
SUCH EXEMPTION SO PROVIDED MAY GO INTO EFFECT IMMEDIATELY. No such local
law, ordinance or resolution shall be effective unless a certified  copy
of  such  law, ordinance or resolution is mailed by registered or certi-
fied mail to the commissioner at the commissioner's office in Albany  at
least  ninety days prior to the date it is to become effective. However,
the commissioner may waive and reduce  such  ninety-day  minimum  notice
requirement  to a mailing of such certified copy by registered or certi-

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fied mail within a period of not less than thirty  days  prior  to  such
effective  date  if  the commissioner deems such action to be consistent
with the commissioner's duties under section  twelve  hundred  fifty  of
this  article  and  the  commissioner  acts  by  resolution.  Where  the
restriction provided for in section twelve hundred twenty-three of  this
article  as  to  the  effective date of a tax and the notice requirement
provided for therein are  applicable  and  have  not  been  waived,  the
restriction  and  notice  requirement  in section twelve hundred twenty-
three of this article shall also apply.
  S 5. Section 1210 of the tax law is amended by adding a  new  subdivi-
sion (p) to read as follows:
  (P)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
AND  EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR THE
SAME MOTOR FUEL AND DIESEL  MOTOR  FUEL  EXEMPT  FROM  STATE  SALES  AND
COMPENSATING  USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF SUBDIVISION
(A) OF SECTION ELEVEN HUNDRED FIFTEEN OF  THIS  CHAPTER  BY  ENACTING  A
RESOLUTION  IN  THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION;
WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS  (D)  AND
(E)  OF  THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL BE DEEMED
TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTION AS IF
IT HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND  APPROVED  BY  THE
GOVERNOR.
  (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
CONTRACTED TO BE GIVEN FOR PURCHASES OF MOTOR FUEL AND DIESEL MOTOR FUEL
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
FORTY-FOUR  OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THE
TAX LAW SHALL ALSO BE EXEMPT  FROM  SALES  AND  COMPENSATING  USE  TAXES
IMPOSED IN THIS JURISDICTION.
  SECTION  TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE) AND
SHALL APPLY TO SALES MADE AND USES OCCURRING  ON  AND  AFTER  THAT  DATE
ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
  S  6. The commissioner of taxation and finance is hereby authorized to
implement the provisions of this act with respect to the elimination  of
the imposition of sales tax, additional taxes, and supplemental taxes on
diesel  motor  fuel  and  motor fuel and all other taxes so addressed by
this act.
  S 7. This act shall take effect immediately and shall apply  to  sales
made,  services  rendered  and uses occurring on and after such date, in
accordance with the applicable transitional provisions in  section  1217
of the tax law.