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

                                  8075

                            I N  S E N A T E

                              June 10, 2016
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to taxation  of  aviation  fuel
  businesses; and to repeal subdivision (f) of section 301-e of such law
  relating thereto

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

  Section 1. Subdivisions (c), (d) and (e) of section 301-e of  the  tax
law, subdivision (c) as amended by section 25 of part K of chapter 61 of
the  laws of 2011, subdivision (d) as amended by chapter 309 of the laws
of 1996, subdivision (e) as added by chapter 190 of the laws of 1990 and
paragraph 2 of subdivision (e) as amended by section  1  of  part  J  of
chapter 60 of the laws of 2004, are amended to read as follows:
  (c)  Kero-jet  fuel  component.  The  kero-jet fuel component shall be
determined by multiplying the kero-jet fuel rate  times  the  number  of
gallons of (1) kero-jet fuel imported or caused to be imported into this
state  by an aviation fuel business and consumed [in this state] by such
business in the operation of its aircraft; and (2) kero-jet fuel,  which
has  not  been  previously included in the measure of the tax imposed by
this section, (i) which is sold in this state by an aviation fuel  busi-
ness  to  persons  other  than  those  registered  under this article as
aviation fuel businesses or (ii) which is consumed in this state  by  an
aviation  fuel  business in the operation of its aircraft. Provided that
importation of kero-jet fuel in the fuel  tanks  of  aircraft  shall  be
importation  for  the  purposes of this section. The basic kero-jet fuel
rate shall be six and eight-tenths cents per gallon. The rate  shall  be
adjusted at the same time as the rates of the components of the petrole-
um  business tax imposed by section three hundred one-a of this article,
and the method of making adjustments to the kero-jet fuel rate shall  be
the same as the method used for such rates.
  (d)  (1)  An aviation fuel business shall be entitled to reimbursement
of the tax imposed by this section, less any credit  allowed  or  refund
granted,  with  respect to aviation gasoline purchased in this state and
consumed by such business exclusively as aviation fuel in the  operation

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

                                                           LBD15766-01-6

S. 8075                             2

of  its  aircraft  where  such aviation gasoline is not consumed in this
state, provided that the amount of such tax, less any credit or  refund,
has  been absorbed by such aviation fuel business. Provided, further, an
aviation  fuel  business  which has imported aviation gasoline into this
state and consumed such  aviation  gasoline  in  the  operation  of  its
aircraft  where  a  portion of such aviation gasoline is not consumed in
this state shall be allowed a credit for such gallonage not consumed  in
this state in computing the tax imposed by such section.
  (2)  [An  aviation fuel business shall be entitled to reimbursement of
the tax imposed by this section with respect to kero-jet fuel  purchased
in this state and consumed by such business exclusively as aviation fuel
in  the  operation  of  its  aircraft  where  such  kero-jet fuel is not
consumed in this state, provided that the entire amount of such tax  has
been absorbed by such aviation fuel business.
  (3)]  Any  purchaser  of  aviation gasoline in this state who consumes
such aviation gasoline exclusively as aviation fuel in the operation  of
its  aircraft  shall  be  entitled to a partial reimbursement of the tax
imposed by this section with respect  to  aviation  gasoline  which  was
purchased  by  such  purchaser  and  upon  which  such purchaser paid or
absorbed the full amount of the tax imposed by this  section  (where  no
partial  credit or refund under paragraph two of subdivision (b) of this
section was provided with respect to such aviation gasoline) where:  (i)
such  purchaser purchases the aviation gasoline from a fixed base opera-
tor which qualifies as a retail seller of aviation gasoline but  is  not
so  registered  under  article  twelve-A  of  this chapter, or (ii) such
purchaser purchases the aviation gasoline in bulk from a distributor  of
motor  fuel registered under article twelve-A of this chapter where such
distributor delivers such aviation gasoline directly into a bulk storage
facility of the purchaser which is at a fixed and permanent place at  an
airport  within  this state and is used solely to fill the fuel tanks of
its aircraft for use in  the  operations  thereof.  The  amount  of  the
reimbursement  allowable  under  this  paragraph  shall  be equal to the
amount of the partial credit or refund allowable under paragraph two  of
subdivision (b) of this section.
  [(4)]  (3)  The  commissioner  shall require such documentary proof to
qualify for any credit, refund or reimbursement of  tax  provided  under
this subdivision as the commissioner deems appropriate.
  (e) All the provisions of this article relating to the administration,
collection  and  disposition of the tax imposed on petroleum businesses,
including the registration provisions of section three  hundred  two  of
this  article applicable to residual petroleum product businesses, shall
apply to the tax imposed by this section and the registration under this
article of aviation fuel businesses with such  modification  as  may  be
necessary  in  order to adapt the language of such provisions to the tax
imposed by this section. When reference in this article is made to  "the
tax  imposed  under  this  article" or where words of similar import are
used, unless the context indicates otherwise, such reference shall be to
the tax imposed under section three hundred one-a of  this  article  and
this  section.  The  tax  imposed  by this section shall be administered
jointly in conjunction with, and as a part of, the tax imposed on petro-
leum businesses as if the provisions of subdivision (a) of this section,
imposing the tax under this section, were made a part of the  imposition
provisions  of section three hundred one-a, except where contrary or not
applicable to or inconsistent  with  the  provisions  of  this  section.
Provided, further, for the purpose of this section:

S. 8075                             3

  (1)  the  term  "aviation fuel business" shall mean a "petroleum busi-
ness" as described in paragraph one or paragraph two of subdivision  (b)
of  section  three  hundred  of  this article except that the activities
described therein shall separately relate  to  aviation  gasoline  (such
paragraph  one)  and  kero-jet  fuel  (such paragraph two) and such term
shall also include every corporation or unincorporated business  import-
ing  or  causing  to  be  imported  aviation  fuel  into this state [for
consumption by it in this state] by bringing  such  aviation  fuel  into
this  state  in aircraft fuel tanks which connect to the engines propel-
ling such aircraft.
  (2) [kero-jet fuel and] aviation gasoline consumed in this state shall
be presumed to mean all such fuel consumed during takeoffs  from  points
in this state;
  (3) where the commissioner [of taxation and finance] decides that with
respect to a certain petroleum business any of the methods prescribed in
paragraph  two  of  this subdivision do not fairly and equitably reflect
fuel consumed in this state, the commissioner shall prescribe methods of
attribution which fairly and equitably reflect  fuel  consumed  in  this
state.
  (4)  "aviation  fuel"  means  kero-jet  fuel and aviation gasoline (as
described in paragraph three of subdivision (a) of section three hundred
one-b of this article). Provided, further the term  kero-jet  shall  not
include  naphtha based aviation fuel refined and used solely for propel-
ling military jet airplanes of the United States Armed Forces.
  S 2. Subdivision (f) of section 301-e of the tax law is REPEALED.
  S 3. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.