Senate Bill S3889

                                BILL NUMBER:S3889

TITLE  OF  BILL:    An  act  to  amend  the  tax  law,  in relation to
establishing a motor fuel holiday tax credit for the 2013 tax year

PURPOSE:  This legislation will remove New York State fuel sales taxes
on the specific holiday weekends of Independence  Day  and  Labor  Day
during the summer months of 2013.

SUMMARY OF PROVISIONS:

Section  One  -  amends section 606 tax law by adding a new subsection
(vv). (vv) Motor fuel holiday tax credit. (1) Residents. For  the  tax
year beginning on January 1, 2013 and ending before January 1, 2014, a
tax  payer  shall  be  allowed a credit, to be computed as provided in
paragraph four of this subsection, against the taxes imposed  by  this
article  for  taxes  paid  upon  motor  fuel and diesel motor fuel tax
holiday; provided, that  such  credit  shall  not  exceed  twenty-five
dollars.  If  the amount of credit allowable under this subsection for
any tax year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years.

Section One  -  also  states  (2)  Nonresidents.  In  the  case  of  a
nonresident  taxpayer  or  a  part-year  resident taxpayer, the credit
determined under this  subsection  shall  be  limited  to  the  amount
              

determined  by  multiplying  the amount of such credit by the New York
source fraction as set forth in paragraph three of subsection  (e)  of
section  six  hundred  one  of  this article. The credit as so limited
shall be applied as provided in paragraph one of this subsection.

Section One - defines "Motor fuel tax  holiday"  shall  mean  (i)  the
period  commencing  on  the Friday immediately preceding the fourth of
July and ending on the first Monday after the fourth of July; and

(ii) the period commencing on the Friday immediately  preceding  Labor
day and ending on the first Tuesday following Labor day. "Diesel motor
fuel"  and  "motor  fuel"  shall  have the same meanings, and "filling
station" shall have the same meaning as section 282 of this chapter.

Section One - states that the credit computation for the  purchase  of
motor  fuel, the credit shall equal the product of 33 cents multiplied
by the number of gallon of gasoline purchased in this state  during  a
motor  fuel  tax  holiday,  provided  that  such claim is supported by
receipts listing the number of gallons purchased and the  location  of
the  filling  station  where  such  motor  fuel was purchased. For the
purchase of diesel motor fuel, the credit shall equal the  product  of
32  cents  multiplied  by  the  number of gallons of diesel motor fuel
purchased in this state during a motor fuel tax holiday, provided that
such claim is supported by receipts  listing  the  number  of  gallons
purchased  and  the  location of the filling station where such diesel
motor fuel was purchased. Section Two - this  act  shall  take  effect
immediately.

JUSTIFICATION:    Whether  brought  on  by  market  tensions  or  mere
speculation, New Yorkers are being negatively impacted by  rising  gas


prices.  Projections  estimate  gas  prices could reach five dollars a
gallon by summer, perhaps even higher.

This  legislation would suspend the three separate state taxes on fuel
the 8-cent excise tax, the 8-cent sales tax and the 17-cent  Petroleum
Business Tax - during the busy four-day Independence Day and Labor Day
holiday weekends, providing consumers an immediate savings of 33-cents
per gallon of gasoline - about $5 to S6 a fill-up.

While other countries are getting rich at our expense, Our blue collar
families  and  small  business  owners  are  being mugged. Governments
should not smile and watch their government coffers grow  as  taxpayer
misery skyrockets with ever increasing gas prices.

New  York  prides  itself  on the colorful diversity of vacation spots
throughout the state. Whether it is camping in the Adirondacks,  going
to  the  Saratoga  Race  Track,  hitting  the beaches in Coney Island,
seeing a show on Broadway or touring  the  grape  growing  regions  of
central and western New York, as a state we have so much to offer.

As we come closer to the busy summer travel season, it is often on the
Independence Day and Labor Day four-day weekends that New Yorkers have
the  opportunity  to  take  a vacation and spend time traveling.  This
legislation helps people across the State of New York enjoy their time
off with families, while giving our local economy a boost.

LEGISLATIVE HISTORY:  06/13/12 Amend and recommit to finance

FISCAL IMPLICATIONS:  Approximately $60 million to the state.

EFFECTIVE DATE:  Immediately.