S T A T E O F N E W Y O R K
________________________________________________________________________
7435
2011-2012 Regular Sessions
I N A S S E M B L Y
May 4, 2011
___________
Introduced by M. of A. CALHOUN -- read once and referred to the Commit-
tee 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 diesel motor fuels on sale
during certain periods and authorizing localities to eliminate such
taxes at the local level
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 SUITABLE FOR USE IN OPERATION OF
A MOTOR VEHICLE ENGINE, ON SALE DURING THE PERIOD COMMENCING ON MAY
TWENTY-SEVENTH, TWO THOUSAND ELEVEN AND ENDING ON SEPTEMBER SIXTH, TWO
THOUSAND ELEVEN.
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 IN
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 RESOLUTION
ADOPTED BY A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION. SUCH CITY
IS EMPOWERED TO ADOPT OR REPEAL SUCH A LOCAL LAW, ORDINANCE OR RESOL-
UTION. 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 THE AUTHORITY OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED
TEN OF THIS CHAPTER.
S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 3 of part GG of chapter 57 of the laws of 2010, is
amended to read as follows:
(1) 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11120-02-1
A. 7435 2
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
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. (i) 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) or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) 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) and the clothing and footwear
exemption provided for in paragraph thirty of subdivision (a) 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. ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY ANY CITY,
COUNTY OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS SUBDI-
VISION, SHALL OMIT THE MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION
PROVIDED FOR IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEV-
EN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY OR SCHOOL
DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY HAVING A POPU-
LATION OF ONE MILLION OR MORE ENACTS THE RESOLUTION DESCRIBED IN SUBDI-
VISION (P) 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 (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 OF THIS
CHAPTER IS THE SAME AS THE MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION IN
A. 7435 3
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 37 of part S-1 of chapter 57 of the laws of 2009, 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) of section
eleven hundred fifteen of this chapter or repealing any such exemption
or a local law, ordinance or resolution providing for a refund or credit
described in subdivision (d) of section eleven hundred nineteen of this
chapter or repealing such provision so provided must go into effect only
on March first; PROVIDED, FURTHER, THAT A LOCAL LAW, ORDINANCE OR RESOL-
UTION 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 PURSU-
ANT 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 effec-
tive unless a certified copy of such law, ordinance or resolution is
mailed by registered or certified 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 certified 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 THE 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
A. 7435 4
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 COMPENSATION 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.