NY State Senate Bill 2009-S3174

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Mar 12, 2009	referred to investigations and government operations

2009-S3174 (ACTIVE) - Details

See Assembly Version of this Bill:: A3774
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Rpld §301-e, amd §§301-g, 301-j, 301-l, 308 & 312, Tax L

2009-S3174 (ACTIVE) - Summary

Reduces the tax on aviation fuel businesses by repealing the Kero-jet fuel tax.

2009-S3174 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3174

 TITLE OF BILL :
An act to amend the tax law, in relation to reducing the tax on
aviation fuel businesses under article 13-A thereof; and to repeal
section 301-e of the tax law relating to aviation fuel taxes


 PURPOSE :
To reduce the tax on aviation fuel under Article 13-A by repealing the
kero-jet fuel tax.

 SUMMARY OF PROVISIONS :
§ 1- Repeals §301-e of the Tax Law. This section eliminates the
kero-jet fuel tax. § 2-§ 6- Amend various sections of the Tax Law to
remove references to § 301-e of the Tax Law which is being repealed by
§ 1 of the bill. § 7- Effective date.

 JUSTIFICATION :
The financial distress of the airline industry is a matter of public
record, particularly as it affects major carriers serving New York
State. Four major airlines are in bankruptcy and other major airlines
are in the midst of financial crises. Fuel costs exacerbate the
industry's problems and threaten retention of service levels,
particularly in marginal markets. Last year, the current aggregate tax
rate on kero-jet fuel was $0.06 per gallon (N.Y.S. Dept. Taxation and

Finance, Publication 908). The rate has progressively increased since
January 1, 2000, as the cost of petroleum rose over $120 a barrel in
2008. By most indicators, the upstate New York economy still lags the
economic growth rates of downstate New York and the nation. A region's
ability to attract investment and jobs is directly related to the
quality and cost of passenger air service. In addition, efforts to
bring conventions, conferences, other events and tourists to a region
are impacted by the cost of air travel. Air fares paid by consumers
flying to and from many of our upstate New York airports are still
among the highest in the nation. The taxation of kero-jet fuel adds to
the cost of every flight taking off from a New York State airport.
This added cost of doing business is a disincentive for airlines to
provide affordable and quality service, particularly for the smaller,
low-cost airlines.  Their overall revenues are far less than those of
their larger counterparts and, consequently, they are less able to
absorb such costs. Elimination of the kero-jet fuel tax would reduce a
major operating expense for airlines, translating into greater air
transportation access for businesses and residents throughout the
state.

 LEGISLATIVE HISTORY :
2008: S.2177 - Passed Senate/A.4897 - Referred to Ways & Means.
2007: S.2177 - Passed Senate/A.4897 - Referred to Ways & Means.

 FISCAL IMPLICATIONS :
$6 million to the State.

 EFFECTIVE DATE :
This act shall take effect April 1, 2010.

2009-S3174 (ACTIVE) - Bill Text download pdf

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

                                  3174

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 12, 2009
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to reducing the tax on aviation
  fuel businesses under article 13-A  thereof;  and  to  repeal  section
  301-e of the tax law relating to aviation fuel taxes

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

  Section 1. Section 301-e of the tax law is REPEALED.
  S 2. Subdivision (a) and paragraph 3 of  subdivision  (b)  of  section
301-g  of  the tax law, subdivision (a) as amended by chapter 170 of the
laws of 1994 and paragraph 3 of subdivision (b) as  amended  by  chapter
309 of the laws of 1996, are amended to read as follows:
  (a)  Imposition  of tax surcharge. In addition to the taxes imposed by
sections three hundred  one-a,  [three  hundred  one-e,]  three  hundred
one-h,  three hundred one-i and three hundred one-j of this article, for
taxable months commencing on or after September first, nineteen  hundred
ninety  up  to  and including the month of May, nineteen hundred ninety-
four, there is hereby imposed a tax surcharge for each or any part of  a
taxable  month  at the rate of fifteen percent of the applicable rate of
tax imposed by such sections three hundred one-a, [three hundred one-e,]
three hundred one-h, three hundred one-i and three hundred one-j of this
article with respect to the products included in each component of  such
taxes  imposed  by such sections, to be computed on a per quantity basis
(rounded to the nearest hundredth cent  per  quantity)[,  provided  that
such  tax  surcharge  shall not be imposed with respect to kero-jet fuel
included in the kero-jet fuel component under subdivision (c) of section
three hundred one-e for taxable months beginning prior  to  July  first,
nineteen  hundred  ninety-one].  Provided  further,  for  taxable months
commencing on or after June first, nineteen hundred  ninety-four  up  to
and  including  the month of May, nineteen hundred ninety-five, there is

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06789-01-9

S. 3174                             2

hereby imposed a tax surcharge for each or any part of a  taxable  month
at the rate of twelve and one-half percent of the applicable rate of tax
imposed  by  such  sections  three hundred one-a, [three hundred one-e,]
three hundred one-h, three hundred one-i and three hundred one-j of this
article  with respect to the products included in each component of such
taxes imposed by such sections, to be computed on a per  quantity  basis
(rounded to the nearest hundredth cent per quantity).  Provided further,
for  taxable  months commencing on or after June first, nineteen hundred
ninety-five up to and including the month of May, nineteen hundred nine-
ty-six, there is hereby imposed a tax surcharge for each or any part  of
a  taxable month at the rate of seven and one-half percent of the appli-
cable rate of tax imposed by such sections three hundred  one-a,  [three
hundred  one-e,]  three  hundred  one-h,  three  hundred one-i and three
hundred one-j of this article with respect to the products  included  in
each component of such taxes imposed by such sections, to be computed on
a  per quantity basis (rounded to the nearest hundredth cent per quanti-
ty). Provided, further, for taxable months commencing on or  after  June
first, nineteen hundred ninety-six up to and including the month of May,
nineteen  hundred  ninety-seven, there is hereby imposed a tax surcharge
for each or any part of a taxable month at the rate of two and  one-half
percent  of  the  applicable  rate of tax imposed by such sections three
hundred one-a, [three hundred one-e,] three hundred one-h, three hundred
one-i and three hundred one-j  of  this  article  with  respect  to  the
products  included  in  each  component  of  such  taxes imposed by such
sections, to be computed on a per quantity basis (rounded to the nearest
hundredth cent per quantity). Provided, further, however,  for  purposes
of  imposition  of  the tax surcharge with respect to the tax imposed by
section three hundred one-h of this article, the rate of  the  surcharge
applicable  to  any  calendar  quarter  during which the rate of the tax
surcharge changes in accordance with the first three sentences  of  this
subdivision  shall  be  the  average  of  the rates otherwise applicable
pursuant to such first three sentences for each month of  such  calendar
quarter.  In  the  case  of  a taxpayer who files returns and pays taxes
under article twenty-one or article twenty-one-A of this chapter, as the
case may be, on an annual or other basis other than monthly or  quarter-
ly,  for purposes of imposition of the tax surcharge with respect to the
tax imposed by section three hundred one-h of this article, the rate  of
surcharge  for a return period which would include a change in such rate
but for this sentence shall be, in the case of taxpayers  filing  on  an
annual  basis, equal to the sum of the respective rates otherwise appli-
cable under this subdivision in each month of the return period  divided
by  the  number  of  months  in the return period, and, in the case of a
taxpayer filing on other than a  monthly,  quarterly  or  annual  basis,
equal to the sum of the respective rates otherwise applicable under this
subdivision  on  each  of  the  days of the return period divided by the
number of days in the return period.
  (3) Partial credit, refund or reimbursement with respect  to  aviation
gasoline.    (i)  A  partial  credit or refund of the tax surcharge paid
under this section relative to the tax imposed with respect to  aviation
gasoline  under [sections three hundred one-e and] SECTION three hundred
one-j of this article shall be available with respect to aviation  gaso-
line  which  qualifies for the partial credit or refund under [paragraph
two of subdivision (b) of section three hundred one-e of] this  article.
The  amount  of the credit or refund shall be equal to the tax surcharge
imposed [(A) with respect to the partial credit or refund allowed  under
paragraph  two of subdivision (b) of section three hundred one-e of this

S. 3174                             3

article and (B)] with respect to the  credit  or  refund  allowed  under
[paragraph  two  of]  subdivision  (b) of section three hundred one-j of
this article.
  (ii)  A  partial  reimbursement  of  the tax surcharge paid under this
section relative to the tax imposed with respect  to  aviation  gasoline
under  [sections three hundred one-e and] SECTION three hundred one-j of
this article shall be available with respect to aviation gasoline  which
qualifies for the partial reimbursement under [paragraph three of subdi-
vision (d) of section three hundred one-e of] this article and for which
no partial credit or refund under subparagraph (i) of this paragraph was
provided.    The  amount  of the reimbursement shall be equal to the tax
surcharge imposed [(A) with respect to the partial reimbursement allowed
under paragraph three of subdivision (d) of section three hundred  one-e
of this article and (B)] with respect to the reimbursement allowed under
[subparagraph]  PARAGRAPH  (ii) [of paragraph two] of subdivision (b) of
section three hundred one-j of this article.
  S 3. Paragraphs 1 and 5 of subdivision  (a)  and  subdivision  (c)  of
section  301-j  of the tax law, paragraphs 1 and 5 of subdivision (a) as
amended by chapter 309 of the laws of 1996, subdivision (c)  as  amended
by chapter 410 of the laws of 1991, are amended to read as follows:
  (1)  In  addition  to  the  taxes  imposed by [sections] SECTION 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  monthly  tax  for each or any part of a taxable month at a
rate of four and one-half 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 component of  the
tax imposed by such section three hundred one-e] of this article.
  (5)  Except  as  herein  provided,  the tax imposed under this section
shall be calculated in the same respective manner as the  taxes  imposed
by section three hundred one-a [and section three hundred one-e] of this
article.  Except for section three hundred one-d and except as otherwise
provided in this section, all the provisions of this article  applicable
to  the  taxes  imposed  by  [sections] SECTION three hundred one-a [and
three hundred one-e] of this article, shall apply with  respect  to  the
supplemental  tax  imposed  by  this section to the same extent as if it
were respectively imposed by such [sections] SECTION.
  (c) Rate adjustment and surcharge. Commencing January first,  nineteen
hundred  ninety-two and on the first day of January every year thereaft-
er, the rate of the supplemental tax shall be adjusted at the same  time
as  the  rates  of  the  components  of  the taxes imposed by [sections]
SECTION three hundred one-a [and three hundred one-e] of  this  article,
and the method of making adjustments to the rate of the supplemental tax
shall be the same as the method used for such rates.
  S 4. The opening paragraph and subdivision (c) of section 301-l of the
tax  law,  as  added  by chapter 170 of the laws of 1994, are amended to
read as follows:
  There shall be allowed to a registered petroleum business or  aviation
fuel  business  a  refund  under  this  section  for  the  taxes and tax
surcharge imposed  by  sections  three  hundred  one-a,  [three  hundred
one-e,]  three hundred one-g and three hundred one-j of this article for

S. 3174                             4

the tax paid under such sections with  respect  to  gallonage  which  is
represented by a worthless debt as follows:
  (c)  Upon  receipt of a claim for refund in processible form, interest
shall be allowed and paid at the overpayment rate set by the commission-
er pursuant to subdivision twenty-sixth of section one hundred  seventy-
one  of this chapter from the date of the receipt of the refund claim to
the date immediately preceding the date of the refund  check  except  no
such  interest  shall  be  allowed or paid if the refund check is mailed
within ninety days of such receipt  and  except  no  interest  shall  be
allowed  or  paid  if  the amount thereof would be less than one dollar.
Provided, further, the refund shall be granted pro rata against sections
three hundred one-a, [three hundred  one-e,]  three  hundred  one-g  and
three  hundred  one-j  of  this article, as the case may be, to the same
extent as represented by the remittance of  the  petroleum  business  or
aviation  fuel business with respect to the gallonage represented by the
worthless debt.
  S 5. Subdivision (a) of section 308 of the  tax  law,  as  amended  by
chapter 2 of the laws of 1995, is amended to read as follows:
  (a) General.--Every petroleum business subject to tax under this arti-
cle shall monthly, on or before the twentieth day following the close of
its  taxable  month,  file  a return which shall state (i) the number of
gallons of motor fuel imported or caused to be imported into this  state
for  use,  distribution,  storage  or  sale  in  the  state or produced,
refined, manufactured or compounded in the state  during  the  preceding
calendar  month, (ii) the number of gallons of diesel motor fuel sold or
used or, with respect to gallonage which  prior  thereto  has  not  been
included in the measure of the tax imposed by this article, delivered by
the  petroleum  business  to  a  filling  station  or into the fuel tank
connecting with the engine of a motor vehicle for use in  the  operation
thereof during the preceding calendar month, (iii) the number of gallons
of,  and  the resultant product produced, manufactured or blended, using
diesel motor fuel as a component of such resultant product and the sales
of such resultant product, and (iv) the number of  gallons  of  residual
petroleum product sold or used in this state and the sales of such resi-
dual  petroleum  product, for the period covered by such return. A resi-
dual petroleum business shall include  in  its  reports  the  number  of
gallons  of  residual  petroleum  product  imported  into  the  state or
purchased in this state, the number of  gallons  of  diesel  motor  fuel
purchased  in this state and the number of gallons of, and the resultant
product produced, manufactured or blended by  such  petroleum  business,
using  diesel  motor  fuel as a component of such resultant product. The
commissioner of taxation and finance may permit the filing of  a  return
on  a  quarterly  basis  in  the case of a petroleum business which only
makes sales of diesel motor fuel solely for residential heating purposes
and which is registered under article twelve-A  of  this  chapter  as  a
diesel  motor  fuel  distributor under a limited registration applicable
only to the importation, sale and distribution of diesel motor fuel  for
the  purposes described in subparagraph (i) of paragraph (b) of subdivi-
sion three of section two hundred eighty-two-a of this chapter or in the
case of a petroleum business registered as a  "distributor  of  kero-jet
fuel  only" pursuant to the provisions of subdivision two of section two
hundred eighty-two-a of this  chapter.  In  the  case  of  such  returns
permitted to be filed on a quarterly basis, the adjustments to the rates
of  tax  then  in  effect,  as  provided for in [sections] SECTION three
hundred one-a [and three hundred one-e]  of  this  article,  which  take
effect  on  the first day of January of each year shall, with respect to

S. 3174                             5

such quarterly return, take effect on the first day of the next succeed-
ing March. Returns shall be  filed  with  the  commissioner  in  a  form
prescribed  by the commissioner, setting forth such other information as
the  commissioner  may  prescribe.   Every petroleum business shall also
transmit such other returns  and  such  facts  and  information  as  the
commissioner  may  require  in the administration of this article. Every
petroleum business which is a corporation  subject  to  tax  under  this
article  and  which ceases to exercise its franchise or to be subject to
the tax imposed by this article shall transmit  to  the  commissioner  a
return  on  the  date  of  such  cessation, or at such other time as the
commissioner may require, covering each month or  period  for  which  no
return  was theretofore filed. The commissioner may, if the commissioner
deems it necessary in order to insure the payment of the tax imposed  by
this article, require returns to be made at such times and covering such
periods  as  the  commissioner  may  deem necessary. Notwithstanding the
foregoing provisions of this subdivision, the commissioner  may  require
any corporation or unincorporated business which engages in transactions
involving  petroleum  or  similar products, including aviation fuels, to
file a monthly return, which shall contain any data  specified  by  him,
regardless  of  whether  such  corporation or unincorporated business is
subject to tax under this article.
  S 6. Subdivision (b) of section 312 of the  tax  law,  as  amended  by
section  8  of  part EE of chapter 63 of the laws of 2000, is amended to
read as follows:
  (b) Of all of the taxes collected or received by the  commissioner  on
or  before  March  thirty-first,  nineteen  hundred ninety-one under the
taxes imposed by [sections]  SECTION  three  hundred  one-a  [and  three
hundred  one-e] of this article, and all interest and penalties relating
thereto, eighty-seven and five-hundredths percent  of  such  collections
shall be deposited and disposed of pursuant to the provisions of section
one  hundred seventy-one-a of this chapter and the balance thereof shall
be deposited in the mass transportation operating assistance fund to the
credit of the  metropolitan  mass  transportation  operating  assistance
account  and  the  public  transportation  systems  operating assistance
account thereof in the manner provided by subdivision eleven of  section
one  hundred  eighty-two-a  of  this chapter. Of all taxes, interest and
penalties collected  or  received  after  March  thirty-first,  nineteen
hundred  ninety-one,  and  before  April first, nineteen hundred ninety-
three, from the taxes imposed by [sections] SECTION three hundred  one-a
[and three hundred one-e] of this article, initially thirty-five percent
shall  be deposited and disposed of pursuant to such section one hundred
seventy-one-a. The balance thereof shall then be disposed of as follows:
seventy-two and seven-tenths percent shall be deposited and disposed  of
pursuant  to such section one hundred seventy-one-a and twenty-seven and
three-tenths percent shall be  deposited  in  such  mass  transportation
operating  assistance  fund  as  prescribed  in  the aforestated manner.
Except as otherwise provided,  of  all  taxes,  interest  and  penalties
collected  or  received after March thirty-first, nineteen hundred nine-
ty-three, and before April first, nineteen hundred ninety-four, from the
taxes imposed by [sections]  SECTION  three  hundred  one-a  [and  three
hundred  one-e]  of this article, (i) initially fifty-four percent shall
be deposited, as prescribed by subdivision (d) of section three  hundred
one-j  of this chapter, (ii) twenty-eight and three-tenths percent shall
be deposited and disposed of pursuant to such section one hundred seven-
ty-one-a of this chapter in the general fund  and  (iii)  seventeen  and
seven-tenths  percent  shall  be  deposited  in such mass transportation

S. 3174                             6

operating assistance fund  as  prescribed  in  the  aforestated  manner.
Provided,  however,  that,  prior  to  such deposit, from the amounts so
collected or received during the period  commencing  on  January  first,
nineteen  hundred ninety-four and ending on March thirty-first, nineteen
hundred ninety-four, an amount equal to the portion of the taxes, inter-
est and penalties so received or collected resulting from the amendments
made by  sections  forty-two,  forty-three  and  forty-four  of  chapter
fifty-seven of the laws of nineteen hundred ninety-three shall be depos-
ited  and  disposed  of pursuant to the provisions of subdivision one of
section one hundred seventy-one-a of this chapter. Except  as  otherwise
provided,  of all taxes, interest and penalties collected or received on
or after April first,  nineteen  hundred  ninety-four,  from  the  taxes
imposed  by  [sections]  SECTION  three hundred one-a [and three hundred
one-e] of this article, (i) initially fifty-four percent shall be depos-
ited, as prescribed by subdivision (d) of section three hundred one-j of
this article, (ii) twenty-eight and three-tenths percent shall be depos-
ited and disposed of pursuant to such section one hundred  seventy-one-a
of  this  chapter  in  the  general  fund,  (iii) seven and nine hundred
sixty-five thousandths percent shall be deposited in such mass transpor-
tation operating assistance fund as prescribed in the aforestated manner
and (iv) nine and seven hundred thirty-five thousandths percent shall be
deposited  in  the  revenue  accumulation  fund.  Except  as   otherwise
provided,  of all taxes, interest and penalties collected or received on
or after  September  first,  nineteen  hundred  ninety-four  and  before
September first, nineteen hundred ninety-five, from the taxes imposed by
[sections] SECTION three hundred one-a [and three hundred one-e] of this
article,  (i)  initially  fifty-nine  percent  shall  be  deposited,  as
prescribed by subdivision (d) of section three  hundred  one-j  of  this
article,  (ii) twenty-two and four-tenths percent shall be deposited and
disposed of pursuant to such section one hundred seventy-one-a  of  this
chapter in the general fund, (iii) eight and three hundred seventy thou-
sandths percent shall be deposited in such mass transportation operating
assistance fund as prescribed in the aforestated manner and (iv) ten and
two hundred thirty thousandths percent shall be deposited in the revenue
accumulation  fund. Except as otherwise provided, of all taxes, interest
and penalties, collected or received on or after September first,  nine-
teen  hundred ninety-five and before April first, nineteen hundred nine-
ty-six from the taxes imposed by [sections] SECTION three hundred  one-a
[and  three  hundred one-e] of this article, (i) initially sixty-two and
eight-tenths percent shall be deposited as prescribed by subdivision (d)
of section three hundred one-j of this article,  (ii)  eighteen  percent
shall  be  deposited  and  disposed  of  pursuant to section one hundred
seventy-one-a of this chapter in the general fund, (iii) eight  and  six
hundred forty thousandths percent shall be deposited in such mass trans-
portation  operating  assistance  fund  as prescribed in the aforestated
manner and (iv) ten and five hundred sixty thousandths percent shall  be
deposited   in  the  revenue  accumulation  fund.  Except  as  otherwise
provided, of all taxes, interest and penalties collected or received  on
or  after  April  first, nineteen hundred ninety-six, and before January
first,  nineteen  hundred  ninety-seven  from  the  taxes   imposed   by
[sections] SECTION three hundred one-a [and three hundred one-e] of this
article,  (i)  initially  sixty-three  and three-tenths percent shall be
deposited, as prescribed by subdivision (d)  of  section  three  hundred
one-j  of  this article, (ii) seventeen and four-tenths percent shall be
deposited and disposed of pursuant to such section one hundred  seventy-
one-a  of this chapter in the general fund and (iii) nineteen and three-

S. 3174                             7

tenths percent shall be deposited in such mass transportation  operating
assistance  fund  as  prescribed  in the aforestated manner.   Except as
otherwise provided, of all taxes, interest and  penalties  collected  or
received  on  or  after January first, nineteen hundred ninety-seven and
before January first,  nineteen  hundred  ninety-eight  from  the  taxes
imposed  by  [sections]  SECTION  three hundred one-a [and three hundred
one-e] of this article, (i) initially sixty-six and  two-tenths  percent
shall  be  deposited,  as prescribed by subdivision (d) of section three
hundred one-j of this article, (ii) fourteen and one-half percent  shall
be deposited and disposed of pursuant to such section one hundred seven-
ty-one-a  of  this  chapter  in  the general fund and (iii) nineteen and
three-tenths percent shall be  deposited  in  such  mass  transportation
operating  assistance  fund  as  prescribed  in  the aforestated manner.
Except as otherwise provided,  of  all  taxes,  interest  and  penalties
collected  or received on or after January first, nineteen hundred nine-
ty-eight and before April first, nineteen hundred ninety-nine  from  the
taxes  imposed  by  [sections]  SECTION  three  hundred one-a [and three
hundred one-e] of this article, (i) initially sixty-eight and  one-tenth
percent  shall be deposited, as prescribed by subdivision (d) of section
three hundred one-j of this article, (ii) twelve and four-tenths percent
shall be deposited and disposed of pursuant to such section one  hundred
seventy-one-a of this chapter in the general fund and (iii) nineteen and
one-half  percent shall be deposited in such mass transportation operat-
ing assistance fund as prescribed in the aforestated manner.  Except  as
otherwise  provided,  of  all taxes, interest and penalties collected or
received on or after April first, nineteen hundred ninety-nine, from the
taxes imposed by [sections]  SECTION  three  hundred  one-a  [and  three
hundred  one-e]  of  this  article,  (i) initially sixty-nine and eight-
tenths percent shall be deposited, as prescribed by subdivision  (d)  of
section  three  hundred one-j of this article, (ii) ten and seven-tenths
percent shall be deposited and disposed of pursuant to such section  one
hundred  seventy-one-a  of  this  chapter  in the general fund and (iii)
nineteen and one-half percent shall be deposited in such mass  transpor-
tation  operating  assistance  fund  as  prescribed  in  the aforestated
manner. Except as otherwise provided, of all taxes, interest and  penal-
ties  collected  or  received on or after April first, two thousand one,
from the taxes imposed by [sections] SECTION three  hundred  one-a  [and
three  hundred  one-e]  of this article, (i) initially eighty and three-
tenths percent shall be deposited, as prescribed by subdivision  (d)  of
section  three  hundred  one-j  of  this  article  and (ii) nineteen and
seven-tenths percent shall be  deposited  in  such  mass  transportation
operating assistance fund as prescribed in the aforestated manner.
  Provided,  further,  that  on  or  before the twenty-fifth day of each
month commencing with October, nineteen hundred ninety  and  terminating
with  the month of March, two thousand one, the comptroller shall deduct
the amount of six hundred twenty-five  thousand  dollars  prior  to  any
deposit or disposition of the taxes, interest and penalties collected or
received  pursuant  to  such [sections] SECTION three hundred one-a [and
three hundred one-e] and shall pay such amount to the state treasury  to
the  credit of the general fund. Provided, further that on or before the
twenty-fifth day of each month commencing with April, two thousand  one,
the comptroller shall deduct the amount of six hundred twenty-five thou-
sand dollars prior to any deposit or disposition of the taxes, interest,
and  penalties collected or received pursuant to such [sections] SECTION
three hundred one-a [and three hundred one-e]  and  shall  deposit  such
amount  in  the  dedicated  fund accounts pursuant to subdivision (d) of

S. 3174                             8

section three hundred one-j of this  article.  Provided,  further,  that
commencing  January  fifteenth,  nineteen  hundred ninety-one, and on or
before the tenth day of March and the fifteenth day of June and  Septem-
ber  of such year, the commissioner shall, based on information supplied
by taxpayers and other appropriate sources, estimate the amount  of  the
utility credit authorized by section three hundred one-d of this article
which has been accrued to reduce tax liability under section one hundred
eighty-six-a  of this chapter during the period covered by such estimate
and certify to the state comptroller such estimated  amount.  The  comp-
troller  shall  forthwith,  after receiving such certificate, deduct the
amount of such credit so certified by  the  commissioner  prior  to  any
deposit or disposition of the taxes, interest and penalties collected or
received  pursuant  to  such [sections] SECTION three hundred one-a [and
three hundred one-e] and shall pay such amount so certified and deducted
into the state treasury to the credit of the general fund.  As  soon  as
practicable  after  April  first,  nineteen hundred ninety-one, nineteen
hundred ninety-two and nineteen hundred ninety-three,  but  before  June
fifteenth of each such year, the commissioner shall determine the amount
of  the  utility  tax  credit which has been actually used to reduce tax
liability under such section one hundred eighty-six-a and shall  certify
the  difference  between  such  actual  amount and the earlier estimated
amount. Also, subsequently, during the fiscal year when the commissioner
becomes aware of changes or modifications with respect to actual  credit
usage,  the  commissioner shall, as soon as practicable, issue a certif-
ication setting forth the amount  of  any  required  adjustment  to  the
amount  of actual credit usage previously certified. After receiving the
certificate of the commissioner with respect to actual credit  usage  or
modification of the same, the comptroller shall forthwith adjust general
fund receipts and the revenues to be deposited or disposed of under this
article  to reflect the difference so certified by the commissioner. The
commissioner shall not be liable for any overestimate  or  underestimate
of the amount of the utility credit which has been accrued to reduce tax
liability  under  such  section  one hundred eighty-six-a. Nor shall the
commissioner be liable  for  any  inaccuracy  in  any  certificate  with
respect  to  the  amount  of  such  credit actually used or any required
adjustment with respect to actual credit  usage,  but  the  commissioner
shall  as  soon  as  practicable after discovery of any error adjust the
next certification under this section to reflect any such error.
  On or before July thirty-first, nineteen hundred ninety-two and on  or
before July thirty-first, nineteen hundred ninety-three, the commission-
er  shall  conduct  the  following  reconciliation  with  respect to the
preceding fiscal year: he shall multiply the total of all taxes,  penal-
ties  and  interest, after refunds and reimbursements, which are derived
from the motor fuel component, the  automotive-type  diesel  motor  fuel
component  and  the  aviation gasoline component by twenty fifty-fifths;
the total of all  taxes,  penalties  and  interest,  after  refunds  and
reimbursements,  which  are  derived  from the nonautomotive-type diesel
motor fuel component (excluding taxes, penalties and interest which  are
derived  from  product with respect to which the credit or reimbursement
provided by section three hundred one-d is taken)  by  twenty-fiftieths;
and all taxes, penalties and interest, after refunds and reimbursements,
which are derived from the residual petroleum product component (exclud-
ing  taxes,  penalties  and interest which are derived from product with
respect to which the credit or reimbursement provided by  section  three
hundred one-d is taken) by twenty-fortieths. The products of the forego-
ing  multiplications  shall  be  added together and the resulting sum of

S. 3174                             9

such products shall be compared with the total of the amounts  initially
distributed  during  such  fiscal  year  with respect to such components
(excluding receipts derived from product with respect to which the cred-
it or reimbursement provided by section three hundred one-d is taken and
excluding any amount which represents a reconciliation adjustment pursu-
ant  to this paragraph) pursuant to section one hundred seventy-one-a of
this chapter which represented thirty-five percent of the  total,  after
refunds  and  reimbursements,  of  all  taxes,  penalties  and  interest
collected or received during such fiscal year under  [sections]  SECTION
three  hundred one-a [and three hundred one-e] during the months of such
fiscal year with respect to such components. The commissioner shall then
certify the amount of such difference to the comptroller. If the amounts
initially distributed in such fiscal year are greater than  the  sum  of
such  products,  the comptroller shall withhold an amount equal to twen-
ty-seven and three-tenths percent of  such  difference  from  the  first
moneys  otherwise  payable to the general fund pursuant to this subdivi-
sion and shall pay such amount  to  the  mass  transportation  operating
assistance  fund  to  the credit of the metropolitan mass transportation
operating assistance account and the public transportation systems oper-
ating assistance account thereof  in  the  aforestated  manner.  If  the
amounts  initially distributed in such fiscal year are less than the sum
of such products, the comptroller shall  withhold  an  amount  equal  to
twenty-seven  and three-tenths percent of such difference from the first
moneys otherwise payable to the mass transportation operating assistance
fund pursuant to this subdivision and  shall  pay  such  amount  to  the
general fund.
  When  the  commissioner becomes aware of changes or modifications with
respect to the distribution of revenue under this article,  the  commis-
sioner  shall,  as  soon  as  practicable, issue a certification setting
forth the amount of any required adjustment. After receiving the certif-
icate of the commissioner with respect to  any  adjustments,  the  comp-
troller shall forthwith adjust general fund receipts and the revenues to
be deposited or disposed of under this article to reflect the difference
so  certified  by the commissioner. The commissioner shall not be liable
for any overestimate or underestimate of the amount of the distribution.
Nor shall the commissioner be liable for any inaccuracy in  any  certif-
icate  with  respect  to  the amount of the distribution or any required
adjustment with respect to the distribution, but the commissioner  shall
as  soon  as  practicable  after  discovery of any error adjust the next
certification under this section to reflect any such error.
  Prior to making deposits as provided in this  subdivision,  the  comp-
troller shall retain such amount as the commissioner may determine to be
necessary,  subject  to  the approval of the director of the budget, for
reasonable costs of the department in administering and  collecting  the
taxes  deposited  pursuant  to  this  subdivision  and  for  refunds and
reimbursements with respect to such taxes, out of which the  comptroller
shall pay any refunds or reimbursements of such taxes to which taxpayers
shall be entitled.
  S  7. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.

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Senate Bill S3174

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2009-S3174 (ACTIVE) - Details

2009-S3174 (ACTIVE) - Summary

2009-S3174 (ACTIVE) - Sponsor Memo

2009-S3174 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3174

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Sponsored By

Andrew J. Lanza

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2009-S3174 (ACTIVE) - Details

2009-S3174 (ACTIVE) - Summary

2009-S3174 (ACTIVE) - Sponsor Memo

2009-S3174 (ACTIVE) - Bill Text download pdf

Comments