S T A T E   O F   N E W   Y O R K
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                                  7512

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               May 6, 2011
                               ___________

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

AN  ACT to amend the tax law, in relation to computing sales and compen-
  sating use tax on motor fuel and diesel motor fuel; and to  amend  the
  tax  law and the general business law, in relation to requiring retail
  dealers of motor fuel and diesel motor fuel to reduce prices for  such
  fuel

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

  Section 1. The tax law is amended by adding a  new  section  282-d  to
read as follows:
  S  282-D.  EXEMPT RETAIL SALES PERIODS.  NOTWITHSTANDING ANY PROVISION
OF THE LAW TO THE CONTRARY, EXCISE TAXES IMPOSED ON  DIESEL  MOTOR  FUEL
PURSUANT TO SECTIONS TWO HUNDRED EIGHTY-TWO-A, TWO HUNDRED EIGHTY-TWO-B,
AND  TWO  HUNDRED  EIGHTY-TWO-C  OF THIS ARTICLE SHALL NOT BE IMPOSED ON
RETAIL SALES MADE DURING THE PERIOD COMMENCING FRIDAY,  MAY  TWENTY-SEV-
ENTH,  TWO  THOUSAND  ELEVEN THROUGH MONDAY, MAY THIRTIETH, TWO THOUSAND
ELEVEN, FRIDAY, JULY FIRST, TWO THOUSAND  ELEVEN  THROUGH  MONDAY,  JULY
FOURTH,  TWO THOUSAND ELEVEN, AND FRIDAY, SEPTEMBER SECOND, TWO THOUSAND
ELEVEN THROUGH MONDAY, SEPTEMBER  FIFTH,  TWO  THOUSAND  ELEVEN  TO  THE
EXTENT  SUCH RETAIL SALES OF SUCH DIESEL MOTOR FUEL WAS MADE PURSUANT TO
SUBDIVISION (R) OF  SECTION  ELEVEN  HUNDRED  ELEVEN  OF  THIS  CHAPTER.
PROVIDED,  HOWEVER,  SUCH  RETAIL  SALES SHALL NOT INCLUDE SALES MADE TO
VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER  ARTICLE  TWENTY-ONE  OF  THIS
CHAPTER.
  S  2.  The tax law is amended by adding a new section 284-f to read as
follows:
  S 284-F. EXEMPT RETAIL SALES PERIODS.   NOTWITHSTANDING ANY  PROVISION
OF  THE LAW TO THE CONTRARY, EXCISE TAXES IMPOSED ON MOTOR FUEL PURSUANT
TO SECTIONS TWO HUNDRED EIGHTY-FOUR, TWO HUNDRED EIGHTY-FOUR-A, AND  TWO
HUNDRED  EIGHTY-FOUR-C  OF  THIS  ARTICLE SHALL NOT BE IMPOSED ON RETAIL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11502-03-1
              

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SALES MADE DURING THE PERIOD COMMENCING FRIDAY, MAY TWENTY-SEVENTH,  TWO
THOUSAND  ELEVEN  THROUGH  MONDAY,  MAY  THIRTIETH, TWO THOUSAND ELEVEN,
FRIDAY, JULY FIRST, TWO THOUSAND ELEVEN THROUGH MONDAY, JULY FOURTH, TWO
THOUSAND  ELEVEN  AND  FRIDAY,  SEPTEMBER  SECOND,  TWO  THOUSAND ELEVEN
THROUGH MONDAY, SEPTEMBER FIFTH, TWO THOUSAND ELEVEN TO THE EXTENT  SUCH
SALES  OF  MOTOR  FUEL  WAS  MADE PURSUANT TO SUBDIVISION (R) OF SECTION
ELEVEN HUNDRED ELEVEN OF THIS CHAPTER.  PROVIDED, HOWEVER,  SUCH  RETAIL
SALES  SHALL  NOT  INCLUDE SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE
TAX UNDER ARTICLE TWENTY-ONE OF THIS CHAPTER.
  S 3. Section 301-a of the tax law is amended by adding a new  subdivi-
sion (n) to read as follows:
  (N)  NOTWITHSTANDING  ANY  PROVISION OF THE LAW TO THE CONTRARY, TAXES
IMPOSED ON DIESEL MOTOR FUEL AND MOTOR FUEL FOR THE PRIVILEGE OF  ENGAG-
ING  IN  BUSINESS,  DOING BUSINESS, EMPLOYING CAPITAL, OWNING OR LEASING
PROPERTY, OR MAINTAINING AN OFFICE IN  THIS  STATE  UNDER  THIS  SECTION
SHALL  NOT  BE IMPOSED ON RETAIL SALES MADE DURING THE PERIOD COMMENCING
FRIDAY, MAY TWENTY-SEVENTH, TWO  THOUSAND  ELEVEN  THROUGH  MONDAY,  MAY
THIRTIETH,  TWO THOUSAND ELEVEN, FRIDAY, JULY FIRST, TWO THOUSAND ELEVEN
THROUGH MONDAY, JULY FOURTH, TWO THOUSAND ELEVEN AND  FRIDAY,  SEPTEMBER
SECOND,  TWO  THOUSAND ELEVEN THROUGH MONDAY, SEPTEMBER FIFTH, TWO THOU-
SAND ELEVEN TO THE EXTENT SUCH SALES OF DIESEL MOTOR FUEL OR MOTOR  FUEL
WAS MADE PURSUANT TO SUBDIVISION (R) OF SECTION ELEVEN HUNDRED ELEVEN OF
THIS  CHAPTER.    PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL NOT INCLUDE
SALES MADE TO VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER ARTICLE  TWENTY-
ONE OF THIS CHAPTER.
  S  4.  Section 1111 of the tax law is amended by adding a new subdivi-
sion (r) to read as follows:
  (R)(1) THE SALES TAX IMPOSED BY  SUBDIVISION  (A)  OF  SECTION  ELEVEN
HUNDRED  FIVE  OF  THIS  ARTICLE AND THE COMPENSATING USE TAX IMPOSED BY
SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, IN REGARD TO RETAIL SALES OF
MOTOR FUEL AND DIESEL MOTOR FUEL SHALL NOT BE IMPOSED DURING THE  PERIOD
COMMENCING  FRIDAY,  MAY  TWENTY-SEVENTH,  TWO  THOUSAND  ELEVEN THROUGH
MONDAY, MAY THIRTIETH, TWO THOUSAND  ELEVEN,  FRIDAY,  JULY  FIRST,  TWO
THOUSAND  ELEVEN  THROUGH  MONDAY,  JULY FOURTH, TWO THOUSAND ELEVEN AND
FRIDAY, SEPTEMBER SECOND, TWO THOUSAND ELEVEN THROUGH MONDAY,  SEPTEMBER
FIFTH,  TWO THOUSAND ELEVEN.  PROVIDED, HOWEVER, SUCH RETAIL SALES SHALL
NOT INCLUDE SALES MADE TO VEHICLES SUBJECT  TO  HIGHWAY  USE  TAX  UNDER
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (2) THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBDIVISION (A) OF
SECTION  ELEVEN  HUNDRED NINE OF THIS ARTICLE, IN REGARD TO RETAIL SALES
OF MOTOR FUEL AND DIESEL MOTOR FUEL SHALL  NOT  BE  IMPOSED  DURING  THE
PERIOD  COMMENCING  FRIDAY,  MAY  TWENTY-SEVENTH,  TWO  THOUSAND  ELEVEN
THROUGH MONDAY, MAY THIRTIETH, TWO THOUSAND ELEVEN, FRIDAY, JULY  FIRST,
TWO THOUSAND ELEVEN THROUGH MONDAY, JULY FOURTH, TWO THOUSAND ELEVEN AND
FRIDAY,  SEPTEMBER SECOND, TWO THOUSAND ELEVEN THROUGH MONDAY, SEPTEMBER
FIFTH, TWO THOUSAND ELEVEN.  PROVIDED, HOWEVER, SUCH RETAIL SALES  SHALL
NOT  INCLUDE  SALES  MADE  TO  VEHICLES SUBJECT TO HIGHWAY USE TAX UNDER
ARTICLE TWENTY-ONE OF THIS CHAPTER.
  (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL  APPLY  TO  THE  SALE  AND
COMPENSATING  USE  TAXES  IMPOSED UNDER LOCAL LAWS, ORDINANCES OR RESOL-
UTIONS BY A MUNICIPALITY OR CITY PURSUANT TO  AUTHORIZATION  UNDER  THIS
CHAPTER,  IN  REGARD  TO  MOTOR  FUEL AND DIESEL MOTOR FUEL.   PROVIDED,
HOWEVER, THE LOCAL LEGISLATIVE BODY OF A MUNICIPALITY OR  CITY  PURSUANT
TO  AUTHORIZATION  UNDER THIS CHAPTER, BY LOCAL LAW, ORDINANCE OR RESOL-
UTION IN THE FORM PREPARED BY THE COMMISSIONER, MAY ELECT NOT TO  EXEMPT
TAXES IMPOSED ON RETAIL SALES OF MOTOR AND DIESEL MOTOR FUEL PURSUANT TO

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SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF
THIS ARTICLE.
  S  5.  Section 1817 of the tax law is amended by adding a new subdivi-
sion (o) to read as follows:
  (O) (1) EVERY PERSON ENGAGED IN THE RETAIL SALE OF MOTOR  FUEL  AND/OR
DIESEL  MOTOR  FUEL  SHALL  COMPLY  WITH THE PROVISIONS OF SECTION THREE
HUNDRED NINETY-TWO-J OF THE GENERAL BUSINESS LAW BY REDUCING THE  PRICES
CHARGED  FOR  MOTOR FUEL AND DIESEL MOTOR FUEL IN AN AMOUNT EQUAL TO ANY
REDUCTION IN TAXES  IMPOSED  ON  RETAIL  CUSTOMERS  RESULTING  FROM  TAX
EXEMPTIONS PURSUANT TO SECTIONS TWO HUNDRED EIGHTY-TWO-D AND TWO HUNDRED
EIGHTY-FOUR-F,  SUBDIVISION (N) OF SECTION THREE HUNDRED ONE-A AND PARA-
GRAPHS ONE, TWO, AND THREE OF SUBDIVISION (R) OF  SECTION  ONE  THOUSAND
ONE HUNDRED ELEVEN OF THIS CHAPTER.
  (2)   THE   COMMISSIONER,  IN  COOPERATION  WITH  THE  STATE  CONSUMER
PROTECTION BOARD, SHALL MONITOR THE PRICES CHARGED BY PERSONS ENGAGED IN
THE RETAIL SALE OR DISTRIBUTION OF MOTOR FUEL AND DIESEL MOTOR FUEL.
  (3) UPON A FINDING BY THE COMMISSIONER THAT A PERSON  ENGAGED  IN  THE
RETAIL  SALE  OF  MOTOR  FUEL  AND/OR DIESEL MOTOR FUEL HAS VIOLATED THE
PROVISIONS OF SECTION THREE HUNDRED NINETY-TWO-J OF THE GENERAL BUSINESS
LAW, THE COMMISSIONER SHALL PROVIDE NOTICE OF  SUCH  VIOLATION  TO  SUCH
PERSON AND HOLD A HEARING ON SUCH VIOLATION, WITH AN OPPORTUNITY FOR THE
ACCUSED  TO BE HEARD, NOT LESS THAN TEN DAYS AFTER NOTICE IS PROVIDED. A
VIOLATION OF SECTION THREE HUNDRED NINETY-TWO-J OF THE GENERAL  BUSINESS
LAW  SHALL  SUBJECT THE PERSON VIOLATING SUCH SECTION TO A CIVIL PENALTY
OF UP TO FIVE THOUSAND DOLLARS FOR EACH DAY SUCH VIOLATION OCCURS.
  S 6. The general business law is amended by adding a new section 392-j
to read as follows:
  S 392-J. PRICES REDUCED TO REFLECT CHANGE IN  TAX  COMPUTATION.  EVERY
PERSON ENGAGED IN THE RETAIL SALE OF MOTOR FUEL AND/OR DIESEL MOTOR FUEL
SHALL  REDUCE THE PRICE SUCH PERSON CHARGES FOR MOTOR FUEL AND/OR DIESEL
MOTOR FUEL IN AN AMOUNT EQUAL TO ANY REDUCTION IN TAXES PAID  BY  RETAIL
CUSTOMERS RESULTING FROM TAX EXEMPTIONS PURSUANT TO SECTIONS TWO HUNDRED
EIGHTY-TWO-D  AND  TWO HUNDRED EIGHTY-FOUR-F, SUBDIVISION (N) OF SECTION
THREE HUNDRED ONE-A AND PARAGRAPHS ONE, TWO, AND  THREE  OF  SUBDIVISION
(R) OF SECTION ONE THOUSAND ONE HUNDRED ELEVEN OF THE TAX LAW.
  S  7.  Notwithstanding  any  other  provision  of this act, exemptions
provided under this act shall apply only to (a)  motor  fuel  or  diesel
motor  fuel  sold  for  use  directly and exclusively in the engine of a
motor vehicle and (b) motor fuel or diesel motor fuel sold by  a  retail
gas station.  For purposes of this act and such other provisions of law,
"retail  gas  station"  shall  mean a filling station where such fuel is
stored primarily for sale by delivery directly into  the  ordinary  fuel
tank  connected with the engine of a motor vehicle to be consumed in the
operation of such motor vehicle or where such fuel is  stored  primarily
for sale by delivery directly into the ordinary fuel tank connected with
the engine of a vessel to be consumed in the operation of such vessel.
  S  8. The commissioner of taxation and finance is hereby authorized to
require the use of  certificates  or  other  documents,  and  procedures
related thereto, to effect the purposes of this act.  Provided, further,
such  purpose  shall  include  refunds  of the taxes prepaid by vendors,
distributors, and petroleum businesses to the extent retail  sales  were
exempted  under  this  act,  and  the  commissioner shall be required to
administer such refund of taxes as soon as practicable.  Notwithstanding
any other provisions of this act, the vendor shall not  be  required  to
collect the taxes imposed on retail sales of motor fuel and diesel motor
fuel made to vehicles subject to highway use tax under article 21 of the

A. 7512                             4

tax  law,  and  the  commissioner shall collect such taxes if such sales
made to vehicles subject to highway use tax under article 21 of the  tax
law were not collected during the exempt sales period under this act.
  S 9. A municipality may make the election pursuant to paragraph (3) of
subdivision  (r)  of section 1111 of the tax law, as the case may be, by
local law, ordinance or resolution.    Provided,  however,  the  minimum
notice requirements to the commissioner of taxation and finance shall be
deemed  complied with if such municipality or city mails by certified or
registered mail, a certified copy of such local law, ordinance or resol-
ution to such commissioner prior to  the  retail  sale  period  exempted
under  this  act.    Notwithstanding  any  other  provisions of law, the
commissioner shall establish emergency regulation  to  comply  with  the
notice requirements.
  S  10.  Notwithstanding  any  provision  of  law  to the contrary, the
commissioner of taxation and finance shall determine and certify to  the
comptroller the amount of revenue foregone as a result of tax exemptions
under  this  act and shall deposit the amounts certified by such commis-
sioner as such revenue foregone to the credit of the funds and  accounts
affected by this act to the debit of the general fund.  Provided, howev-
er, the commissioner shall not deposit the amount of revenue foregone in
regard  to  sales  and use taxes exempted on motor fuel and diesel motor
fuel pursuant to paragraph (3) of subdivision (r) of section 1111 of the
tax law.
  S 11. This act shall take effect immediately.