S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    197
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  M.  of A. CAHILL -- Multi-Sponsored by -- M. of A. COOK,
   CRESPO, CUSICK, DenDEKKER, ENGLEBRIGHT, 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:
   §  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-
 FOURTH,  TWO  THOUSAND  NINETEEN THROUGH MONDAY, MAY TWENTY-SEVENTH, TWO
 THOUSAND NINETEEN, THURSDAY, JULY FOURTH, TWO THOUSAND NINETEEN  THROUGH
 MONDAY,  JULY  EIGHTH, TWO THOUSAND NINETEEN, AND FRIDAY, AUGUST THIRTI-
 ETH, TWO THOUSAND NINETEEN THROUGH MONDAY, SEPTEMBER SECOND,  TWO  THOU-
 SAND  NINETEEN TO THE EXTENT SUCH RETAIL SALES OF SUCH DIESEL 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.
   § 2. The tax law is amended by adding a new section 284-f to  read  as
 follows:
   §  284-F.  EXEMPT RETAIL SALES PERIODS.  NOTWITHSTANDING ANY PROVISION
 OF THE LAW TO THE CONTRARY, EXCISE TAXES IMPOSED ON MOTOR FUEL  PURSUANT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD05603-01-9

 A. 197                              2
 
 TO  SECTIONS TWO HUNDRED EIGHTY-FOUR, TWO HUNDRED EIGHTY-FOUR-A, AND TWO
 HUNDRED EIGHTY-FOUR-C OF THIS ARTICLE SHALL NOT  BE  IMPOSED  ON  RETAIL
 SALES  MADE  DURING THE PERIOD COMMENCING FRIDAY, MAY TWENTY-FOURTH, TWO
 THOUSAND NINETEEN THROUGH MONDAY, MAY TWENTY-SEVENTH, TWO THOUSAND NINE-
 TEEN,  THURSDAY, JULY FOURTH, TWO THOUSAND NINETEEN THROUGH MONDAY, JULY
 EIGHTH, TWO THOUSAND NINETEEN, AND FRIDAY, AUGUST THIRTIETH,  TWO  THOU-
 SAND NINETEEN THROUGH MONDAY, SEPTEMBER SECOND, TWO THOUSAND NINETEEN 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.
   §  3. Section 301-a of the tax law is amended by adding a new subdivi-
 sion (n) to read as follows:
   (N) EXEMPT RETAIL SALES PERIODS.  NOTWITHSTANDING ANY PROVISION OF THE
 LAW TO THE CONTRARY, TAXES IMPOSED ON DIESEL MOTOR FUEL AND  MOTOR  FUEL
 FOR  THE  PRIVILEGE  OF  ENGAGING 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-FOURTH,  TWO  THOUSAND
 NINETEEN  THROUGH  MONDAY,  MAY  TWENTY-SEVENTH,  TWO THOUSAND NINETEEN,
 THURSDAY, JULY  FOURTH,  TWO  THOUSAND  NINETEEN  THROUGH  MONDAY,  JULY
 EIGHTH,  TWO  THOUSAND NINETEEN, AND FRIDAY, AUGUST THIRTIETH, TWO THOU-
 SAND NINETEEN THROUGH MONDAY, SEPTEMBER SECOND, TWO THOUSAND NINETEEN 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.
   § 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-FOURTH,  TWO  THOUSAND  NINETEEN  THROUGH
 MONDAY,  MAY  TWENTY-SEVENTH,  TWO  THOUSAND  NINETEEN,  THURSDAY,  JULY
 FOURTH, TWO THOUSAND NINETEEN THROUGH MONDAY, JULY EIGHTH, TWO  THOUSAND
 NINETEEN,  AND  FRIDAY,  AUGUST THIRTIETH, TWO THOUSAND NINETEEN THROUGH
 MONDAY, SEPTEMBER SECOND, TWO THOUSAND  NINETEEN.    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-FOURTH,  TWO  THOUSAND  NINETEEN
 THROUGH  MONDAY,  MAY  TWENTY-SEVENTH,  TWO THOUSAND NINETEEN, THURSDAY,
 JULY FOURTH, TWO THOUSAND NINETEEN  THROUGH  MONDAY,  JULY  EIGHTH,  TWO
 THOUSAND  NINETEEN,  AND FRIDAY, AUGUST THIRTIETH, TWO THOUSAND NINETEEN
 THROUGH MONDAY, SEPTEMBER SECOND,  TWO  THOUSAND  NINETEEN.    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

 A. 197                              3
 
 TO  AUTHORIZATION  UNDER THIS CHAPTER, BY LOCAL LAW, ORDINANCE OR RESOL-
 UTION IN THE FORM PREPARED BY THE COMMISSIONER, MAY ELECT NOT TO  EXEMPT
 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.
   §  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.
   § 6. The general business law is amended by adding a new section 392-k
 to read as follows:
   § 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.
   §  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.
   §  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-

 A. 197                              4
 
 cable.    Notwithstanding  any  other provisions of this act, the vendor
 shall not be required to collect the taxes imposed on  retail  sales  of
 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.
   § 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-
 lations to comply with the notice requirements.
   § 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.
   § 11. This act shall take effect immediately.