BILL NUMBER:  S6071

 TITLE OF BILL :  An act to amend part AA of chapter 59 of the laws of
2015, amending the tax law relating to allowing a reimbursement of the
petroleum business tax for highway diesel motor fuel used in farm
production, in relation thereto

 PURPOSE :

Makes the provisions of section 2 of part AA of Chapter 59 of the Laws
of 2015, amending the tax law relating to allowing a reimbursement of
the petroleum business tax for highway diesel motor fuel used for farm
production applicable to use or consumption occurring on or after
January 1, 2012 and consumers of tax paid pursuant to article 13-a of
the tax law.

 SUMMARY OF PROVISIONS :

Makes the provisions of section 2 of part AA of Chapter 59 of the Laws
of 2015, amending the tax law relating to allowing a reimbursement of
the petroleum business tax for highway diesel motor fuel used for farm
production applicable to use or consumption occurring on or after
January 1, 2012 and consumers of highway diesel motor fuel shall be
entitled to reimbursement of tax paid pursuant to article 13-a of the
tax law; provided, however, that the Commissioner of Taxation and
finance shall waive the prior clearance required under subdivision (f)
              

of section 301-c of the tax law for such use or consumption occurring
prior to the effective date of this act, as long as such consumers
provide documentary proof, sufficient to show that the tax on the
highway diesel fuel was paid for the exempt use or consumption during
the exempt period.

 JUSTIFICATION :

New York Farmers are exempt from paying tax on highway diesel motor
fuel used in the production of agricultural crops. In years past,
farmers who have purchased and used taxable diesel fuel for farm
production methods have always been able to apply for reimbursement
from New York State for that portion used for production purposes. In
the past few years, New York State Department of Taxation and Finance
has misinterpreted the exemption allowed for under New York State Law
and has required some farmers to return the reimbursement. In 2015,
New York took corrective measures to fix this technicality by passing
legislation, however the corrective legislation did not allow for
farmers who were penalized to get their taxes back. This measure will
allow those farmers to be reimbursed for the exemption they should
have had all along as is the intent of the law.

 LEGISLATIVE HISTORY :

2016 S.7951A/A.10456A

 FISCAL IMPLICATIONS :

TBD

 EFFECTIVE DATE :
Immediately.