Senate Bill S341

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    341
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- 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 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,

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

                                                            LBD00135-01-7

 S. 341                              2
 
 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
 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-

 S. 341                              3
 
 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:
   (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.
   § 2. Subdivision (f) of section 301-e of the tax law is REPEALED.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.