senate Bill S7251

2013-2014 Legislative Session

Computes sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk and Nassau counties

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
Jun 09, 2014 advanced to third reading
Jun 03, 2014 2nd report cal.
Jun 02, 2014 1st report cal.1097
May 07, 2014 referred to investigations and government operations

Votes

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Jun 2, 2014 - Investigations and Government Operations committee Vote

S7251
7
0
committee
7
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Investigations and Government Operations Committee Vote: Jun 2, 2014

aye wr (2)

S7251 - Bill Details

See Assembly Version of this Bill:
A9839
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง1111, Tax L

S7251 - Bill Texts

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Enacts the county motor fuel tax pilot program; relates to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk county and Nassau county.

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BILL NUMBER:S7251

TITLE OF BILL: An act to amend the tax law, in relation to computing
sales and compensating use tax on retail sales of motor fuel and
diesel motor fuel at a rate of cents per gallon in Suffolk county and
Nassau county; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:

Computes sales and compensating use tax on retail sales of motor fuel
and diesel motor fuel at a rate of cents per gallon in Suffolk and
Nassau counties.

SUMMARY OF SPECIFIC PROVISIONS:

Section one creates the name of the "County motor fuel tax pilot
program." Section 2 amends subdivision (m) of section 1111 by adding a
new paragraph 8 to require the commissioner of Tax and Finance to
quarterly compute the sales tax rate in cents per gallon as determined
by the cost of fuel in Nassau and Suffolk counties.

Section 3 amends subdivision (e) of section 1111 of the tax law by
adding new subparagraph (iii) to require the sales and compensating
use taxes imposed by subpart b of part one of article twenty-in shall
be fully prepaid.

JUSTIFICATION:

This bill will not increase the sales tax on motor fuel. It protects
against county governments losing motor fuel sales tax revenue due to
fraud or error by converting in these counties the local sales tax
rate to a cents per gallon rate and requiring prepayment of these
taxes.

By requiring all sales tax on motor fuel be prepaid, this legislation
will ensure that the full county portion of the sales tax is collected
by the distributor from the retailer up front, thereby protecting the
counties from some retailers who are not currently paying the
appropriate amount in local sales tax. As a result, it is anticipated
that this legislation will increase sales tax revenue to these county
governments.

Certain unscrupulous gasoline retailers that take advantage of this
differential in collections and underpaying local sales taxes are
placing law-abiding and fully-compliant retailers at a competitive
disadvantage. Currently, the state requires 100% of the state's
portion of the sales tax be paid by retailers to distributors and then
remitted by distributor to the state. By requiring that the full state
AND local sales tax be collected up front by distributors, this bill
will ensure a fairer retail gas market while increasing revenue to
these counties.

Further, the requirement to fully prepay all sales taxes will provide
administrative relief to motor fuel retailers who currently need to
calculate daily reconciliations and file sales taxes owed on a
quarterly basis.


PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None to the state. Increased revenue for county governments.

EFFECTIVE DATE:

This act shall take effect immediately and shall expire and be deemed
repealed June 1, 2016.

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

                                  7251

                            I N  S E N A T E

                               May 7, 2014
                               ___________

Introduced  by  Sen.  BOYLE  -- 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 computing sales and  compen-
  sating  use tax on retail sales of motor fuel and diesel motor fuel at
  a rate of cents per gallon in Suffolk county and  Nassau  county;  and
  providing for the repeal of such provisions upon expiration thereof

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

  Section 1. This act shall be known and may be  cited  as  the  "County
motor fuel tax pilot program".
  S  2.  Subdivision  (m)  of  section 1111 of the tax law is amended by
adding a new paragraph 8 to read as follows:
  (8) THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBPART B OF  PART
ONE  OF ARTICLE TWENTY-NINE OF THIS CHAPTER IN REGARD TO RETAIL SALES OF
MOTOR FUEL AND DIESEL MOTOR FUEL, IN THE COUNTIES OF SUFFOLK AND NASSAU,
SHALL BE COMPUTED, AS DETERMINED QUARTERLY BY  THE  COMMISSIONER,  AT  A
RATE  OF CENTS PER GALLON, ROUNDED TO THE NEAREST CENT, AS DETERMINED BY
THE COUNTIES RESPECTIVELY, MULTIPLIED BY THE COST OF THE FUEL.
  S 3. Paragraph 2 of subdivision (e) of section 1111 of the tax law  is
amended by adding a new subparagraph (iii) to read as follows:
  (III) WHERE MOTOR FUEL IS IMPORTED, MANUFACTURED OR SOLD IN, OR DIESEL
MOTOR  FUEL  IS  SOLD  OR USED IN THE COUNTY OF SUFFOLK OR THE COUNTY OF
NASSAU, THE SALES AND COMPENSATING USE TAXES IMPOSED  BY  SUBPART  B  OF
PART  ONE OF ARTICLE TWENTY-NINE OF THIS CHAPTER AS COMPUTED PURSUANT TO
SUBDIVISION (M) OF THIS SECTION SHALL BE  PREPAID  PURSUANT  TO  SECTION
ELEVEN HUNDRED TWO OF THIS ARTICLE ON EACH GALLON OF FUEL.
  S  4.  This  act shall take effect immediately and shall expire and be
deemed repealed June 1, 2016.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13900-03-4

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