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

                                  1378

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M. of A. CAHILL, MORELLE, LUPARDO, GUNTHER, ROSENTHAL --
  Multi-Sponsored by -- M. of A. ENGLEBRIGHT -- read once  and  referred
  to the Committee on Ways and Means

AN  ACT to amend the tax law, in relation to eliminating the residential
  restriction for heating exemptions

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

  Section 1. Subdivision (d) of section 301-b of the tax law, as amended
by section 21 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (d)  Sales  to  consumers for heating purposes. [(1) Total residential
heating] HEATING exemption. Non-highway diesel  motor  fuel  sold  by  a
petroleum  business registered under article twelve-A of this chapter as
a distributor of diesel motor fuel or residual petroleum product sold by
a petroleum business registered under this article as a residual  petro-
leum  product  business  to  the  consumer exclusively for [residential]
heating purposes only if such non-highway diesel motor fuel is delivered
into a storage tank which is not equipped with a hose or other apparatus
by which such fuel can be dispensed into the fuel tank of a motor  vehi-
cle  and  such storage tank is attached to the heating unit burning such
fuel.
  [(2) Partial non-residential heating exemption. (A) Non-highway diesel
motor fuel  sold  by  a  petroleum  business  registered  under  article
twelve-A  of this chapter as a distributor of diesel motor fuel or resi-
dual petroleum product sold by a  petroleum  business  registered  under
this  article  as  a residual petroleum product business to the consumer
exclusively for heating, other than residential heating purposes only if
such non-highway diesel motor fuel is  delivered  into  a  storage  tank
which  is not equipped with a hose or other apparatus by which such fuel

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03531-01-3
              

A. 1378                             2

can be dispensed into the fuel tank of a motor vehicle and such  storage
tank is attached to the heating unit burning such fuel
  (B) Calculation of partial exemption. The partial exemption under this
paragraph shall be determined by multiplying the quantity of non-highway
diesel  motor  fuel  and  residual  petroleum  product  eligible for the
exemption times the sum of the then current rate of the supplemental tax
imposed by section three hundred one-j of  this  article  and  forty-six
percent  of  the  then  current rate of the tax imposed by section three
hundred one-a of this article, with respect to the specific  non-highway
diesel  motor  fuel  or residual petroleum product rate, as the case may
be.]
  S 2. Subdivision (a) of section 301-c of the tax law,  as  amended  by
section  23  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (a) Non-highway Diesel motor fuel  used  for  heating  purposes.  [(1)
Total  residential  heating]  HEATING  reimbursement. Non-highway Diesel
motor fuel purchased in this state and  sold  by  such  purchaser  to  a
consumer for use exclusively for [residential] heating purposes but only
where (i) such non-highway diesel motor fuel is delivered into a storage
tank  which is not equipped with a hose or other apparatus by which such
non-highway Diesel motor fuel can be dispensed into the fuel tank  of  a
motor  vehicle  and  such  storage  tank is attached to the heating unit
burning such non-highway Diesel motor fuel, (ii) the tax imposed  pursu-
ant  to  this  article  has  been  paid with respect to such non-highway
diesel motor fuel and the entire amount of such tax has been absorbed by
such purchaser, and (iii) such  purchaser  possesses  documentary  proof
satisfactory  to the commissioner evidencing the absorption by it of the
entire amount of the tax imposed pursuant  to  this  article.  Provided,
however,  that  the  commissioner  is  authorized, in the event that the
commissioner determines that it would not threaten the integrity of  the
administration  and  enforcement  of the tax imposed by this article, to
provide a reimbursement with respect to a retail sale to a consumer  for
[residential]  heating  purposes of less than ten gallons of non-highway
diesel motor fuel provided such fuel is not dispensed into the tank of a
motor vehicle.
  [(2) Partial non-residential heating  reimbursement.  (A)  Non-highway
Diesel  motor fuel purchased in this state and sold by such purchaser to
a consumer for use exclusively for heating, other than  for  residential
heating  purposes, but only where (i) such non-highway diesel motor fuel
is delivered into a storage tank which is not equipped with  a  hose  or
other  apparatus  by  which  such  non-highway  Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle and such storage tank is
attached to the heating unit burning such non-highway Diesel motor fuel,
(ii) the tax imposed pursuant to this article has been paid with respect
to such non-highway diesel motor fuel and the entire amount of such  tax
has  been absorbed by such purchaser, and (iii) such purchaser possesses
documentary  proof  satisfactory  to  the  commissioner  evidencing  the
absorption  by  it  of  the entire amount of the tax imposed pursuant to
this article.
  (B) Calculation of partial reimbursement.  Notwithstanding  any  other
provision  of  this  article, the amount of the reimbursement under this
paragraph shall be determined by multiplying the quantity of non-highway
diesel motor fuel eligible for the reimbursement times the  sum  of  the
then  current  rate  of  the  supplemental  tax imposed by section three
hundred one-j of this article and forty-six percent of the then  current
rate  of the tax imposed by section three hundred one-a of this article,

A. 1378                             3

with respect to the non-highway diesel motor fuel rate, as the case  may
be.]
  S  3.  This act shall take effect April 1, 2013; provided, however, if
this act shall become a law after such date it shall be deemed  to  have
been in full force and effect on and after April 1, 2013.