S T A T E   O F   N E W   Y O R K
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                                  3541

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2015
                               ___________

Introduced  by  M.  of  A.  CAHILL  --  Multi-Sponsored  by  -- M. of A.
  BROOK-KRASNY, COOK, CRESPO, CUSICK,  DenDEKKER,  ENGLEBRIGHT,  LAVINE,
  MORELLE,  RAMOS,  THIELE,  WEPRIN  --  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-NINTH,
TWO  THOUSAND  FIFTEEN THROUGH MONDAY, JUNE FIRST, TWO THOUSAND FIFTEEN,
FRIDAY, JULY THIRD, TWO THOUSAND FIFTEEN THROUGH MONDAY, JULY SIXTH, TWO
THOUSAND FIFTEEN, AND FRIDAY, SEPTEMBER  FOURTH,  TWO  THOUSAND  FIFTEEN
THROUGH  MONDAY,  SEPTEMBER  SEVENTH, TWO THOUSAND FIFTEEN TO THE EXTENT
SUCH RETAIL SALES OF SUCH DIESEL MOTOR FUEL WERE MADE PURSUANT TO SUBDI-
VISION (S) 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06305-01-5
              

A. 3541                             2

HUNDRED EIGHTY-FOUR-C OF THIS ARTICLE SHALL NOT  BE  IMPOSED  ON  RETAIL
SALES  MADE  DURING  THE PERIOD COMMENCING FRIDAY, MAY TWENTY-NINTH, TWO
THOUSAND FIFTEEN THROUGH  MONDAY,  JUNE  FIRST,  TWO  THOUSAND  FIFTEEN,
FRIDAY, JULY THIRD, TWO THOUSAND FIFTEEN THROUGH MONDAY, JULY SIXTH, TWO
THOUSAND  FIFTEEN,  AND  FRIDAY,  SEPTEMBER FOURTH, TWO THOUSAND FIFTEEN
THROUGH MONDAY, SEPTEMBER SEVENTH, TWO THOUSAND FIFTEEN  TO  THE  EXTENT
SUCH  SALES  OF  MOTOR  FUEL  WERE  MADE  PURSUANT TO SUBDIVISION (S) 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-NINTH,  TWO  THOUSAND  FIFTEEN THROUGH MONDAY, JUNE
FIRST, TWO THOUSAND FIFTEEN, FRIDAY, JULY THIRD,  TWO  THOUSAND  FIFTEEN
THROUGH  MONDAY, JULY SIXTH, TWO THOUSAND FIFTEEN, AND FRIDAY, SEPTEMBER
FOURTH, TWO THOUSAND FIFTEEN  THROUGH  MONDAY,  SEPTEMBER  SEVENTH,  TWO
THOUSAND  FIFTEEN TO THE EXTENT SUCH SALES OF DIESEL MOTOR FUEL OR MOTOR
FUEL WERE MADE PURSUANT TO SUBDIVISION (S)  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 (s) to read as follows:
  (S)(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-NINTH,  TWO  THOUSAND  FIFTEEN  THROUGH
MONDAY, JUNE FIRST, TWO THOUSAND FIFTEEN, FRIDAY, JULY THIRD, TWO  THOU-
SAND  FIFTEEN  THROUGH  MONDAY,  JULY  SIXTH,  TWO THOUSAND FIFTEEN, AND
FRIDAY, SEPTEMBER FOURTH, TWO THOUSAND FIFTEEN THROUGH MONDAY, SEPTEMBER
SEVENTH, TWO THOUSAND FIFTEEN.   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-NINTH, TWO THOUSAND FIFTEEN THROUGH
MONDAY, JUNE FIRST, TWO THOUSAND FIFTEEN, FRIDAY, JULY THIRD, TWO  THOU-
SAND  FIFTEEN  THROUGH  MONDAY,  JULY  SIXTH,  TWO THOUSAND FIFTEEN, AND
FRIDAY, SEPTEMBER FOURTH, TWO THOUSAND FIFTEEN THROUGH MONDAY, SEPTEMBER
SEVENTH, TWO THOUSAND FIFTEEN.   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

A. 3541                             3

TAXES IMPOSED ON RETAIL SALES OF MOTOR AND DIESEL MOTOR FUEL PURSUANT TO
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-K 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 (S) OF SECTION ELEVEN  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-K 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-K 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-k
to read as follows:
  S 392-K. 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
(S) OF SECTION ELEVEN 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 of taxation and finance
shall be required to administer such refund of taxes as soon as  practi-
cable.    Notwithstanding  any  other provisions of this act, the vendor
shall not be required to collect the taxes imposed on  retail  sales  of

A. 3541                             4

motor fuel and diesel motor fuel made to vehicles subject to highway use
tax  under  article  21 of the tax law, and the commissioner of taxation
and finance 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 (s) 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  of  taxation  and  finance shall establish emergency regu-
lation 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 of taxation  and  finance  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  subdivi-
sion (s) of section 1111 of the tax law.
  S 11. This act shall take effect immediately.