S T A T E   O F   N E W   Y O R K
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    S. 7951                                                 A. 10456

                      S E N A T E - A S S E M B L Y

                              May 27, 2016
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

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

AN  ACT  to  amend  the  tax  law, in relation to motor fuel and highway
  diesel motor fuel used for farm production

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

  Section 1. Subdivision (f) of section 301-c of the tax law, as amended
by section 1 of part AA of chapter 59 of the laws of 2015, is amended to
read as follows:
  (f) Motor fuel and highway diesel motor fuel used for farm production.
No more than one thousand five hundred gallons of motor fuel and no more
than  four  thousand  five  hundred gallons of highway diesel motor fuel
purchased in this state in a thirty-day period or a greater amount which
has been given prior clearance by the commissioner, by  a  consumer  for
use  or  consumption directly and exclusively in the production for sale
of tangible personal property by farming, but only if all of such  motor
fuel  or  highway diesel motor fuel is delivered on the farm site and is
consumed other than on the public highways of this state (except for the
use of the public highway to reach adjacent farmlands). This  reimburse-
ment  to such purchaser who used such motor fuel or highway diesel motor
fuel in the manner specified in this subdivision  may  be  claimed  only
where,  (i)  the tax imposed pursuant to this article has been paid with
respect to such motor fuel or highway diesel motor fuel and  the  entire
amount  of  such  tax has been absorbed by such purchaser, and (ii) 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 shall
require such documentary proof to qualify for any reimbursement  of  tax
provided  by this subdivision as the commissioner deems appropriate. The
commissioner is hereby empowered  to  make  such  provisions  as  deemed

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

                                                           LBD15487-01-6

S. 7951                             2                           A. 10456

necessary  to  define  the  procedures  for granting prior clearance for
purchases of more than one thousand five hundred gallons of  motor  fuel
or  four thousand five hundred gallons of highway diesel motor fuel in a
thirty-day  period.    FOR  THE  PURPOSES OF THIS SECTION, PURCHASERS OF
HIGHWAY DIESEL MOTOR FUEL SHALL BE  ENTITLED  TO  REIMBURSEMENT  OF  TAX
PURSUANT TO THIS TITLE FOR ANY PAYMENTS ABSORBED BY THE PURCHASER IN THE
PRECEDING THREE YEARS PRIOR TO TWO THOUSAND FIFTEEN.
  S 2. This act shall take effect immediately.