Assembly Bill A8512A

2009-2010 Legislative Session

Sets all local sales tax rates on diesel motor fuel at 4% per gallon

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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
Jul 01, 2010	held for consideration in ways and means
Jan 06, 2010	referred to ways and means
Jun 16, 2009	print number 8512a
Jun 16, 2009	amend and recommit to ways and means
May 26, 2009	referred to ways and means

Bill Amendments

2009-A8512 - Details

Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §523, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A2643
2013-2014: A2439

2009-A8512 - Summary

Sets all local sales tax rates on motor diesel fuel at 4% per gallon payable to those localities of the state which impose local sales and compensating use taxes on a cents per gallon basis pursuant to subpart B of part 1 of article 29 of this chapter.

2009-A8512 - Bill Text download pdf

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

                                  8512

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 26, 2009
                               ___________

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

AN ACT to amend the tax law, in relation to setting local sales tax at a
  rate of four percent per gallon upon the sale of a  gallon  of  diesel
  motor fuel

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

  Section 1. Subdivision (b) of section 523 of the tax law,  as  amended
by  section 7 of part M-1 of chapter 109 of the laws of 2006, is amended
to read as follows:
  (b) Rate of tax. The tax imposed by this section shall be at a compos-
ite rate determined by adding together (1) a fuel  tax  component  which
shall  be  equal  to  the applicable rate per gallon in effect under the
taxes on motor fuel and diesel motor fuel imposed by article twelve-A of
this chapter and (2) a sales tax component, which shall be equal to  the
sum of (A) a state sales and compensating use tax subcomponent, equal to
the  applicable rate per gallon in effect under the sales and compensat-
ing use taxes on motor fuel and diesel motor fuel  imposed  by  sections
eleven  hundred five and eleven hundred ten of this chapter as described
in subdivision (m) of section eleven hundred eleven of this chapter plus
(B) a local sales and compensating use tax subcomponent, which shall  be
[the  lower of (i) the lowest applicable rate per gallon in effect under
the sales and compensating use taxes on such  fuels  in  effect  in  any
county  of this state imposing a local sales and compensating use tax on
a cents per gallon basis pursuant to the authority of subpart B of  part
one  of article twenty-nine of this chapter, or (ii) the equivalent rate
per gallon based on the highest rate applicable to the receipts from the
sale of a gallon of motor fuel or diesel motor fuel  in  effect  in  any
locality  of  this state imposing a local sales and compensating use tax
on a percentage rate basis on the sale of motor fuel  and  diesel  motor
fuel pursuant to the authority of subpart B of part one of article twen-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11388-02-9

A. 8512                             2

ty-nine  of  this  chapter.  Provided,  however, that the total rate per
gallon applicable to the receipts from the sale  of  a  gallon  of  such
fuels  imposed under clause (ii) of subparagraph (B) of paragraph two of
this  subdivision  shall  not exceed three percent. Such equivalent rate
per gallon under clause (ii) of subparagraph B of paragraph two of  this
subdivision shall be determined as provided in subdivision (d) or (m) of
section  eleven  hundred  eleven  of  this  chapter  and  the  schedules
prescribed by the commissioner pursuant to  such  subdivision  (d),  and
shall  be  based  on the average price per gallon (including all federal
and state and any local taxes included in such price or imposed  on  the
use  or  consumption  of such fuels upon which the state and local sales
and compensating use taxes  are  computed  but  determined  without  the
inclusion of any state or local sales tax on receipts from sales of such
fuels)  paid  by  the  carrier during the reporting period for all motor
fuel and diesel motor fuel purchased for use in  its  operations  either
within  or  without  this state. For purposes of clause (ii) of subpara-
graph (B) of paragraph two of this subdivision, the price for motor fuel
and diesel motor fuel purchased by such carrier shall be  deemed  to  be
the  prevailing  price  for  motor fuel and diesel motor fuel, as estab-
lished by the  commissioner  each  calendar  quarter  pursuant  to  this
section,  applicable  to the reporting period] AT A RATE OF FOUR PERCENT
PER GALLON UPON THE SALE OF A GALLON OF DIESEL MOTOR  FUEL,  PAYABLE  TO
THOSE  LOCALITIES OF THE STATE WHICH IMPOSE LOCAL SALES AND COMPENSATING
USE TAXES ON A CENTS PER GALLON BASIS PURSUANT TO SUBPART B OF PART  ONE
OF ARTICLE TWENTY-NINE OF THIS CHAPTER.  The commissioner shall for each
calendar  quarter establish a prevailing price for motor fuel and diesel
motor fuel based on the prices being charged on any given day during the
first fifteen days of the previous calendar quarter at a minimum of  ten
selected  truck  stops  widely  scattered  throughout the state. The tax
imposed by this section shall be computed by multiplying such  composite
rate  by  the amount of motor fuel or diesel motor fuel, as the case may
be, used by a carrier in its operations within this  state  during  each
reporting period. The amount of motor fuel and diesel motor fuel used in
the  operations  of any carrier within this state shall be determined by
dividing the number of miles traveled in this state subject to tax under
this section by the average miles per gallon for the type of fuel. Where
the records of any carrier are inadequate or incomplete,  the  qualified
motor  vehicles  of  a  carrier  filing  returns shall be deemed to have
consumed, on the average, one gallon of diesel motor fuel for every four
miles traveled or one gallon of motor fuel for every three  miles  trav-
eled  unless  substantial evidence discloses that a different amount was
consumed; provided, however, that if  the  commissioner  enters  into  a
cooperative  agreement  pursuant to section five hundred twenty-eight of
this article and such agreement prescribes a different average miles per
gallon deemed to be consumed,  the  commissioner  shall  prescribe  such
different average.
  S  2.  This  act  shall take effect immediately and shall apply to the
next taxable year and all subsequent taxable years.

2009-A8512A (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §523, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A2643
2013-2014: A2439

2009-A8512A (ACTIVE) - Summary

2009-A8512A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8512A

TITLE OF BILL:  An act to amend the tax law, in relation to setting
local sales tax at a rate of four percent per gallon upon the sale of
a gallon of diesel motor fuel

PURPOSE: The current tax system provides a competitive disadvantage to
New York trucking companies who are paying higher fuel taxes than
their out-of-state competition when hauling freight in New York.
Out-of-state trucking companies are able to purchase their fuel
outside New York and satisfy their highway use tax obligations at a
current rate of 36.65 cents per gallon. During the height of high gas
and diesel prices in the summer of 2006, this rate was approximately
14 cents per gallon less than the tax rates charged on most of the
diesel fuel purchases at the pump in New York. In addition to hurting
New York truck stops and New York based trucking companies, it also
costs the state $24 million a year in under collected revenue when
prices are high.

SUMMARY OF PROVISIONS:  Under Section 523 of the Tax Law, all local
sales taxes for diesel motor fuel will be replaced with a statewide
local sales tax to be indexed yearly at 4%. This uniform tax will then
be added to the other existing state taxes. This statewide tax rate on
diesel fuel will be used as the International Fuel Tax Agreement
(IFTA) tax rate for out of state trucks. Creating a uniform tax burden
for all trucking companies traveling in New York State and rectifying

the under collection of taxes from out of state trucking companies

JUSTIFICATION:  Diesel fuel is currently 10 percent of the total fuel
consumed on the road in New York State and it is primarily used to
fuel large trucks.  Currently, the State tax rate on diesel fuel
exceeds the fuel use tax rate established by the International Fuel
Tax Agreement (IFTA) which has created an opportunity for out-of-state
trucking firms to legally evade the full tax paid by trucking firms
that purchase diesel fuel in New York State. The State is losing money
because of this disparity between the IFTA fuel use tax rate and local
tax rates due to trucking companies opting to purchase cheaper fuel
outside of New York State. In 2005, approximately 167 million gallons
of diesel fuel were purchased outside of New York State but burned by
trucks traveling through New York. Because they were bought out of
state they were taxed at a New York IFTA rate that was 14 cents per
gallon less than the taxes charged on fuel actually bought in New
York. This represented a loss of $24 million dollars to the State.
This unification of the motor fuel tax presents New York State with an
opportunity to create a fair and equitable tax code for all consumers
involved in interstate trucking.

By removing the local sales tax on diesel motor fuel and imposing a
statewide 4% indexed local tax on diesel motor fuel you will fix these
imbalances.

The tax rate will be determined annually by the Department of Tax and
Finance in which this rate will be used by IFTA to determine the tax
liability of out of state carriers when they travel through New York.
This tax rate will be the same for all trucks operating in New York.
New York retailers of diesel fuel will have new customers and the tax
incentive to avoid making diesel purchases in New York having been


eliminated. A uniform statewide tax on diesel motor fuel will level
the playing field for New York based businesses and eliminate the
under collection of motor fuel taxes on out of state trucking.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: An estimated $24 Million dollars in extra revenue
from out of state trucking companies.

EFFECTIVE DATE: This Act shall take effect immediately and shall apply
to the next taxable year and all subsequent taxable years.

2009-A8512A (ACTIVE) - Bill Text download pdf

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

                                 8512--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 26, 2009
                               ___________

Introduced  by  M. of A. GABRYSZAK, KOON, GORDON, FIELDS, BURLING, RAIA,
  McDONOUGH, CASTRO -- Multi-Sponsored by -- M. of A. BARCLAY, DelMONTE,
  DESTITO, REILLY, SKARTADOS, THIELE, TOWNSEND -- read once and referred
  to the Committee on Ways  and  Means  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the tax law, in relation to setting local sales tax at a
  rate of four percent per gallon upon the sale of a  gallon  of  diesel
  motor fuel

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

  Section 1. Subdivision (b) of section 523 of the tax law,  as  amended
by  section 7 of part M-1 of chapter 109 of the laws of 2006, is amended
to read as follows:
  (b) Rate of tax. The tax imposed by this section shall be at a compos-
ite rate determined by adding together (1) a fuel  tax  component  which
shall  be  equal  to  the applicable rate per gallon in effect under the
taxes on motor fuel and diesel motor fuel imposed by article twelve-A of
this chapter and (2) a sales tax component, which shall be equal to  the
sum of (A) a state sales and compensating use tax subcomponent, equal to
the  applicable rate per gallon in effect under the sales and compensat-
ing use taxes on motor fuel and diesel motor fuel  imposed  by  sections
eleven  hundred five and eleven hundred ten of this chapter as described
in subdivision (m) of section eleven hundred eleven of this chapter plus
(B) a local sales and compensating use tax subcomponent, which shall  be
[the  lower of (i) the lowest applicable rate per gallon in effect under
the sales and compensating use taxes on such  fuels  in  effect  in  any
county  of this state imposing a local sales and compensating use tax on
a cents per gallon basis pursuant to the authority of subpart B of  part
one  of article twenty-nine of this chapter, or (ii) the equivalent rate
per gallon based on the highest rate applicable to the receipts from the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11388-03-9

A. 8512--A                          2

sale of a gallon of motor fuel or diesel motor fuel  in  effect  in  any
locality  of  this state imposing a local sales and compensating use tax
on a percentage rate basis on the sale of motor fuel  and  diesel  motor
fuel pursuant to the authority of subpart B of part one of article twen-
ty-nine  of  this  chapter.  Provided,  however, that the total rate per
gallon applicable to the receipts from the sale  of  a  gallon  of  such
fuels  imposed under clause (ii) of subparagraph (B) of paragraph two of
this subdivision shall not exceed three percent.  Such  equivalent  rate
per  gallon under clause (ii) of subparagraph B of paragraph two of this
subdivision shall be determined as provided in subdivision (d) or (m) of
section  eleven  hundred  eleven  of  this  chapter  and  the  schedules
prescribed  by  the  commissioner  pursuant to such subdivision (d), and
shall be based on the average price per gallon  (including  all  federal
and  state  and any local taxes included in such price or imposed on the
use or consumption of such fuels upon which the state  and  local  sales
and  compensating  use  taxes  are  computed  but determined without the
inclusion of any state or local sales tax on receipts from sales of such
fuels) paid by the carrier during the reporting  period  for  all  motor
fuel  and  diesel  motor fuel purchased for use in its operations either
within or without this state. For purposes of clause  (ii)  of  subpara-
graph (B) of paragraph two of this subdivision, the price for motor fuel
and  diesel  motor  fuel purchased by such carrier shall be deemed to be
the prevailing price for motor fuel and diesel  motor  fuel,  as  estab-
lished  by  the  commissioner  each  calendar  quarter  pursuant to this
section, applicable to the reporting period] AT A RATE OF  FOUR  PERCENT
PER  GALLON  UPON  THE SALE OF A GALLON OF DIESEL MOTOR FUEL, PAYABLE TO
THOSE LOCALITIES OF THE STATE WHICH IMPOSE LOCAL SALES AND  COMPENSATING
USE  TAXES ON A CENTS PER GALLON BASIS PURSUANT TO SUBPART B OF PART ONE
OF ARTICLE TWENTY-NINE OF THIS CHAPTER.   SUCH  UNIFORM  RATE  SHALL  BE
SUBJECT  TO ADJUSTMENT ON A QUARTERLY BASIS.  The commissioner shall for
each calendar quarter establish a prevailing price for  motor  fuel  and
diesel  motor  fuel  based  on the prices being charged on any given day
during the first fifteen days of the  previous  calendar  quarter  at  a
minimum  of  ten  selected  truck  stops widely scattered throughout the
state.  SUCH TAX FOR DIESEL MOTOR FUEL SHALL BE COMPUTED BY  TAKING  THE
COMPOSITE RATE MINUS THE STATE EXCISE TAX AND MINUS THE STATE SALES TAX;
THE  RESULTANT  TAXABLE SALES NUMBER SHALL BE MULTIPLIED BY FOUR PERCENT
AND THIS SHALL ESTABLISH THE CENTS PER GALLON STATEWIDE LOCAL SALES  TAX
ON  A  GALLON  OF  DIESEL  MOTOR  FUEL FOR THE CALENDAR QUARTER. The tax
imposed by this section shall be computed by multiplying such  composite
rate  by the amount of motor fuel [or diesel motor fuel, as the case may
be], used by a carrier in its operations within this state  during  each
reporting period. The amount of motor fuel and diesel motor fuel used in
the  operations  of any carrier within this state shall be determined by
dividing the number of miles traveled in this state subject to tax under
this section by the average miles per gallon for the type of fuel. Where
the records of any carrier are inadequate or incomplete,  the  qualified
motor  vehicles  of  a  carrier  filing  returns shall be deemed to have
consumed, on the average, one gallon of diesel motor fuel for every four
miles traveled or one gallon of motor fuel for every three  miles  trav-
eled  unless  substantial evidence discloses that a different amount was
consumed; provided, however, that if  the  commissioner  enters  into  a
cooperative  agreement  pursuant to section five hundred twenty-eight of
this article and such agreement prescribes a different average miles per
gallon deemed to be consumed,  the  commissioner  shall  prescribe  such
different  average.  THE COMMISSIONER SHALL BE CHARGED WITH DEVELOPING A

A. 8512--A                          3

MECHANISM TO COMPENSATE THOSE COUNTIES CHARGING A RATE HIGHER THAN  FOUR
PERCENT ON DIESEL MOTOR FUEL SALES FOR SUCH COUNTIES' LOSS IN TAX REVEN-
UES.
  S  2.  This  act  shall take effect immediately and shall apply to the
next taxable year and all subsequent taxable years.

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Assembly Bill A8512A

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A8512 - Details

2009-A8512 - Summary

2009-A8512 - Bill Text download pdf

2009-A8512A (ACTIVE) - Details

2009-A8512A (ACTIVE) - Summary

2009-A8512A (ACTIVE) - Sponsor Memo

2009-A8512A (ACTIVE) - Bill Text download pdf

Comments

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Assembly Bill A8512A

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Sponsored By

GABRYSZAK

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A8512 - Details

2009-A8512 - Summary

2009-A8512 - Bill Text download pdf

2009-A8512A (ACTIVE) - Details

2009-A8512A (ACTIVE) - Summary

2009-A8512A (ACTIVE) - Sponsor Memo

2009-A8512A (ACTIVE) - Bill Text download pdf

Comments