S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4930
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2019
                                ___________
 
 Introduced  by M. of A. TAGUE -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to eliminating state sales  and
   compensating  use  taxes  on  biodiesel  products  produced, processed
   and/or distributed in New York state  and  authorizing  localities  to
   eliminate such taxes at the local level

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1-a of section 289-c of the tax law is  amended
 by adding a new paragraph (e) to read as follows:
   (E)  (I) ANY PERSON MAY EXCLUDE THE AMOUNT OF THE TAX OR TAXES IMPOSED
 BY  THIS  ARTICLE  ON  BIODIESEL  PRODUCTS  PRODUCED,  PROCESSED  AND/OR
 DISTRIBUTED  IN  NEW  YORK  STATE FROM THE SELLING PRICE THEREOF IF SUCH
 BIODIESEL PRODUCT IS DELIVERED TO A FILLING  STATION  AND  PLACED  IN  A
 STORAGE  TANK  OF  SUCH FILLING STATION FOR SUCH BIODIESEL PRODUCT TO BE
 DISPENSED DIRECTLY INTO A MOTOR VEHICLE FOR USE IN THE OPERATION OF SUCH
 VEHICLE. ANY PERSON MAKING A SALE OF SUCH BIODIESEL  PRODUCT  UNDER  THE
 CIRCUMSTANCES  DESCRIBED  HEREIN,  WHEREBY  THE  TAX  OR TAXES OTHERWISE
 IMPOSED BY THIS ARTICLE HAVE NOT BEEN PASSED THROUGH TO  THE  PURCHASER,
 SHALL BE ALLOWED A REFUND OR CREDIT OF THE TAXES IMPOSED BY THIS ARTICLE
 IN THE AMOUNT OF SUCH TAX OR TAXES PAID BY SUCH PERSON ON SUCH BIODIESEL
 PRODUCT BEING SOLD OR INCLUDED IN THE PRICE PAID BY SUCH PERSON FOR SUCH
 FUEL.  CLAIMS  FOR REFUNDS OR CREDITS SHALL BE PRESENTED, AND REFUNDS OR
 CREDITS SHALL BE MADE, ONLY AS AUTHORIZED BY THE COMMISSIONER UNDER SUCH
 RULES AND REGULATIONS AS THE COMMISSIONER MAY PRESCRIBE.
   (II) ANY PERSON MAY EXCLUDE THE AMOUNT OF THE TAX OR TAXES IMPOSED  BY
 THIS  ARTICLE  FROM  THE  SELLING PRICE WITH RESPECT TO ANY SALE OF SUCH
 BIODIESEL PRODUCT.  ANY PERSON MAKING A SALE OF SUCH  BIODIESEL  PRODUCT
 UPON  WHICH SUCH PERSON DOES NOT PASS ON MORE THAN EIGHTY PERCENT OF THE
 TAXES OTHERWISE IMPOSED BY THIS ARTICLE, WHERE SUCH PERSON HAS PURCHASED
 SUCH BIODIESEL PRODUCT WITH THE ENTIRE AMOUNT OF THE  TAXES  IMPOSED  BY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06397-01-9

 A. 4930                             2
 
 THIS ARTICLE INCLUDED IN SUCH PERSON'S PURCHASE PRICE, SHALL BE ENTITLED
 TO A REFUND OR CREDIT EQUAL TO THE AMOUNT OF THE TAX OR TAXES PAID UNDER
 THIS  ARTICLE  ON  SUCH BIODIESEL PRODUCT IN EXCESS OF EIGHTY PERCENT OF
 THE  TAX  OR  TAXES IMPOSED BY THIS ARTICLE ON DIESEL MOTOR FUEL. CLAIMS
 FOR REFUNDS OR CREDITS SHALL BE PRESENTED, AND REFUNDS OR CREDITS  SHALL
 BE  MADE,  ONLY  AS  AUTHORIZED BY THE COMMISSIONER UNDER SUCH RULES AND
 REGULATIONS AS THE COMMISSIONER MAY PRESCRIBE.
   (III) ANY PERSON MAY EXCLUDE THE AMOUNT OF THE TAX OR TAXES IMPOSED BY
 THIS ARTICLE ON SUCH BIODIESEL PRODUCT FROM THE SELLING  PRICE  THEREOF.
 ANY  PERSON  MAKING A SALE OF SUCH BIODIESEL PRODUCT, WHEREBY THE TAX OR
 TAXES OTHERWISE IMPOSED BY THIS ARTICLE HAVE NOT BEEN PASSED THROUGH  TO
 THE  PURCHASER, SHALL BE ALLOWED A REFUND OR CREDIT OF ANY TAXES IMPOSED
 BY THIS ARTICLE IN THE AMOUNT OF SUCH TAX OR TAXES PAID BY  SUCH  PERSON
 ON  SUCH  BIODIESEL  PRODUCT BEING SOLD OR INCLUDED IN THE PRICE PAID BY
 SUCH PERSON FOR SUCH BIODIESEL PRODUCT. CLAIMS FOR  REFUNDS  OR  CREDITS
 SHALL  BE  PRESENTED,  AND  REFUNDS  OR  CREDITS  SHALL BE MADE, ONLY AS
 AUTHORIZED BY THE COMMISSIONER UNDER SUCH RULES AND REGULATIONS  AS  THE
 COMMISSIONER MAY PRESCRIBE.
   § 2. Section 300 of the tax law is amended by adding a new subdivision
 (t) to read as follows:
   (T)  THE  TERM  "BIODIESEL"  SHALL MEAN A DIESEL MOTOR FUEL SUBSTITUTE
 PRODUCED FROM NONPETROLEUM RENEWABLE RESOURCES THAT MEETS THE  REGISTRA-
 TION  REQUIREMENTS FOR FUELS AND FUEL ADDITIVES ESTABLISHED BY THE ENVI-
 RONMENTAL PROTECTION AGENCY UNDER SECTION 211 OF THE CLEAN AIR  ACT  (42
 U.S.C. 7545) AND THAT MEETS THE AMERICAN SOCIETY FOR TESTING AND MATERI-
 ALS  D6751-02A  STANDARD  SPECIFICATION  FOR BIODIESEL FUEL (B100) BLEND
 STOCK FOR DISTILLATE FUELS THAT  HAS  BEEN  PRODUCED,  PROCESSED  AND/OR
 DISTRIBUTED IN NEW YORK STATE.
   §  3.  Subdivision  (a)  of section 301-b of the tax law is amended by
 adding a new paragraph 9 to read as follows:
   (9)(I) BIODIESEL EXEMPTION. BIODIESEL PRODUCTS IMPORTED OR  CAUSED  TO
 BE  IMPORTED  INTO  THIS  STATE  OR  PRODUCED,  REFINED, MANUFACTURED OR
 COMPOUNDED IN THIS STATE BY A PETROLEUM BUSINESS REGISTERED UNDER  ARTI-
 CLE TWELVE-A OF THIS CHAPTER, AS A DISTRIBUTOR OF DIESEL MOTOR FUEL, AND
 THEN SOLD BY SUCH PETROLEUM BUSINESS.
   (II)  CALCULATION OF EXEMPTION. THE AMOUNT OF THE EXEMPTION UNDER THIS
 PARAGRAPH SHALL BE DETERMINED BY THE APPLICABLE TAXES OTHERWISE  IMPOSED
 BY THIS ARTICLE ON SUCH FUEL.
   §  4. Section 301-c of the tax law is amended by adding a new subdivi-
 sion (q) to read as follows:
   (Q) REIMBURSEMENT  FOR  BIODIESEL  PRODUCTS.  (1)  BIODIESEL  PRODUCTS
 PURCHASED  IN  THIS STATE AND SOLD BY SUCH PURCHASER IN THIS STATE WHERE
 (I) THE TAX IMPOSED PURSUANT TO THIS ARTICLE HAS BEEN PAID WITH  RESPECT
 TO  SUCH  BIODIESEL  PRODUCTS AND THE ENTIRE AMOUNT OF SUCH TAX HAS BEEN
 ABSORBED BY SUCH PURCHASER, AND (II) SUCH PURCHASER POSSESSES DOCUMENTA-
 RY PROOF SATISFACTORY TO THE COMMISSIONER EVIDENCING THE  ABSORPTION  BY
 IT  OF  THE  ENTIRE  AMOUNT OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE.
 PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF  TO
 QUALIFY  FOR  ANY  REIMBURSEMENT  PROVIDED HEREUNDER AS THE COMMISSIONER
 DEEMS APPROPRIATE.
   (2) CALCULATION OF REIMBURSEMENT.  THE  AMOUNT  OF  THE  REIMBURSEMENT
 UNDER THIS SUBDIVISION SHALL BE DETERMINED BY THE AMOUNT OF THE APPLICA-
 BLE TAXES OTHERWISE IMPOSED BY THIS ARTICLE ON SUCH FUEL.
   §  5.  Subdivision  (b)  of  section 1101 of the tax law is amended by
 adding a new paragraph 39 to read as follows:

 A. 4930                             3
 
   (39) BIODIESEL.  A DIESEL MOTOR FUEL SUBSTITUTE PRODUCED  FROM  NONPE-
 TROLEUM RENEWABLE RESOURCES THAT MEETS THE REGISTRATION REQUIREMENTS FOR
 FUELS  AND  FUEL  ADDITIVES  ESTABLISHED BY THE ENVIRONMENTAL PROTECTION
 AGENCY UNDER SECTION 211 OF THE CLEAN AIR ACT (42 U.S.C. 7545) AND  THAT
 MEETS  THE AMERICAN SOCIETY FOR TESTING AND MATERIALS D6751-02A STANDARD
 SPECIFICATION FOR BIODIESEL FUEL (B100) BLEND STOCK FOR DISTILLATE FUELS
 THAT HAS BEEN PRODUCED, PROCESSED AND/OR DISTRIBUTED IN NEW YORK STATE.
   § 6. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
 adding a new clause 12 to read as follows:
   (12)  EXCEPT  AS  OTHERWISE PROVIDED BY LAW, THE EXEMPTION PROVIDED IN
 PARAGRAPH FORTY-FIVE  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
 FIFTEEN  OF  THIS ARTICLE RELATING TO BIODIESEL PRODUCTS PRODUCED, PROC-
 ESSED AND/OR DISTRIBUTED IN NEW YORK STATE SHALL BE APPLICABLE  PURSUANT
 TO A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY A CITY SUBJECT TO THE
 PROVISIONS  OF  THIS SECTION.  SUCH CITY IS EMPOWERED TO ADOPT OR REPEAL
 SUCH A LOCAL LAW, ORDINANCE OR RESOLUTION. SUCH ADOPTION OR REPEAL SHALL
 ALSO BE DEEMED TO AMEND ANY LOCAL LAW,  ORDINANCE OR RESOLUTION  ENACTED
 BY  SUCH  A CITY IMPOSING TAXES PURSUANT TO THE AUTHORITY OF SUBDIVISION
 (A) OF SECTION TWELVE HUNDRED TEN OF THIS CHAPTER.
   § 7. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 45 to read as follows:
   (45)  BIODIESEL PRODUCTS PRODUCED, PROCESSED AND/OR DISTRIBUTED IN NEW
 YORK STATE.
   § 8. Paragraph 1 of subdivision (a) of section 1210 of the tax law  is
 amended by adding a new closing paragraph to read as follows:
   ANY  LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY ANY CITY, COUNTY OR
 SCHOOL DISTRICT, IMPOSING THE  TAXES  AUTHORIZED  BY  THIS  SUBDIVISION,
 SHALL OMIT THE BIODIESEL PRODUCTS PRODUCED, PROCESSED AND/OR DISTRIBUTED
 IN  NEW  YORK  STATE  EXEMPTION  PROVIDED FOR IN PARAGRAPH FORTY-FIVE OF
 SUBDIVISION (A) OF SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER,
 UNLESS  SUCH  CITY, COUNTY OR SCHOOL DISTRICT ELECTS OTHERWISE; PROVIDED
 THAT IF SUCH A CITY HAVING A POPULATION OF ONE MILLION  OR  MORE  ENACTS
 THE  RESOLUTION  DESCRIBED IN SUBDIVISION (P) OF THIS SECTION OR REPEALS
 SUCH RESOLUTION, SUCH RESOLUTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND
 ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED BY SUCH A  CITY  IMPOSING
 SUCH TAXES PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION, WHETHER OR NOT
 SUCH  TAXES  ARE  SUSPENDED  AT THE TIME SUCH CITY ENACTS ITS RESOLUTION
 PURSUANT TO SUBDIVISION (P) OF THIS SECTION OR AT THE TIME OF  ANY  SUCH
 REPEAL;  PROVIDED, FURTHER, THAT ANY SUCH LOCAL LAW, ORDINANCE OR RESOL-
 UTION AND SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER, AS DEEMED TO  BE
 AMENDED  IN  THE EVENT A CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION
 PURSUANT TO THE AUTHORITY OF SUBDIVISION (P) OF THIS SECTION,  SHALL  BE
 FURTHER  AMENDED, AS PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS
 SUBPART, SO THAT  THE  BIODIESEL  PRODUCTS  PRODUCED,  PROCESSED  AND/OR
 DISTRIBUTED IN NEW YORK STATE EXEMPTION IN ANY SUCH LOCAL LAW, ORDINANCE
 OR RESOLUTION OR IN SUCH SECTION ELEVEN HUNDRED SEVEN IS THE SAME AS THE
 BIODIESEL  PRODUCTS  PRODUCED,  PROCESSED AND/OR DISTRIBUTED IN NEW YORK
 STATE EXEMPTION IN PARAGRAPH FORTY-FIVE OF SUBDIVISION  (A)  OF  SECTION
 ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER.
   §  9.  Subdivision  (d)  of section 1210 of the tax law, as amended by
 section 4 of part WW of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (d)  A local law, ordinance or resolution imposing any tax pursuant to
 this section, increasing or decreasing the rate of such  tax,  repealing
 or  suspending  such tax, exempting from such tax the energy sources and
 services described in paragraph three of subdivision (a) or of  subdivi-

 A. 4930                             4
 
 sion  (b)  of  this  section or changing the rate of tax imposed on such
 energy sources and services  or  providing  for  the  credit  or  refund
 described  in  clause  six  of subdivision (a) of section eleven hundred
 nineteen  of  this  chapter,  or electing or repealing the exemption for
 residential solar equipment  and  electricity  in  subdivision  (ee)  of
 section  eleven  hundred  fifteen  of this article, or the exemption for
 commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
 section eleven hundred fifteen of this article, or electing or repealing
 the  exemption  for  commercial fuel cell electricity generating systems
 equipment and electricity generated by  such  equipment  in  subdivision
 (kk)  of  section  eleven  hundred  fifteen of this article must go into
 effect only on one of the following  dates:  March  first,  June  first,
 September first or December first; provided, that a local law, ordinance
 or  resolution providing for the exemption described in paragraph thirty
 of subdivision (a) of section eleven hundred fifteen of this chapter  or
 repealing  any  such  exemption  or a local law, ordinance or resolution
 providing for a refund or credit described in subdivision (d) of section
 eleven hundred nineteen of this chapter or repealing such  provision  so
 provided  must  go  into  effect only on March first; PROVIDED, FURTHER,
 THAT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING  FOR  THE  EXEMPTION
 DESCRIBED  IN  PARAGRAPH FORTY-FIVE OF SUBDIVISION (A) OF SECTION ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER  OR  REPEALING  ANY  SUCH  EXEMPTION  SO
 PROVIDED  AND A RESOLUTION ENACTED PURSUANT TO THE AUTHORITY OF SUBDIVI-
 SION (P) OF THIS SECTION PROVIDING  SUCH  EXEMPTION  OR  REPEALING  SUCH
 EXEMPTION  SO  PROVIDED  MAY  GO INTO EFFECT IMMEDIATELY.  No such local
 law, ordinance or resolution shall be effective unless a certified  copy
 of  such  law, ordinance or resolution is mailed by registered or certi-
 fied mail to the commissioner at the commissioner's office in Albany  at
 least  ninety days prior to the date it is to become effective. However,
 the commissioner may waive and reduce  such  ninety-day  minimum  notice
 requirement  to a mailing of such certified copy by registered or certi-
 fied mail within a period of not less than thirty  days  prior  to  such
 effective  date  if  the commissioner deems such action to be consistent
 with the commissioner's duties under section  twelve  hundred  fifty  of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction provided for in section twelve hundred twenty-three of  this
 article  as  to  the  effective date of a tax and the notice requirement
 provided for therein are  applicable  and  have  not  been  waived,  the
 restriction  and  notice  requirement  in section twelve hundred twenty-
 three of this article shall also apply.
   § 10. Section 1210 of the tax law is amended by adding a new  subdivi-
 sion (p) to read as follows:
   (P)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
 NANCE OR RESOLUTION TO THE CONTRARY:
   (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
 TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
 EFFECT, ACTING THROUGH ITS LOCAL  LEGISLATIVE BODY, IS HEREBY AUTHORIZED
 AND EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR  THE
 SAME  BIODIESEL  PRODUCTS PRODUCED, PROCESSED AND/OR DISTRIBUTED  IN NEW
 YORK STATE EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES  DESCRIBED
 IN  PARAGRAPH  FORTY-FIVE  OF  SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
 FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM  SET  FORTH
 IN  PARAGRAPH  TWO  OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH
 THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS SECTION, SUCH  ENACT-
 MENT  OF  SUCH  RESOLUTION  SHALL  BE  DEEMED TO BE AN AMENDMENT TO SUCH
 SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL

 A. 4930                             5
 
 BE DEEMED TO INCORPORATE SUCH EXEMPTION AS IF IT HAD BEEN  DULY  ENACTED
 BY THE STATE LEGISLATURE AND APPROVED BY THE GOVERNOR.
   (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
 LOCAL LEGISLATIVE BODY) AS FOLLOWS:
   SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
 CONTRACTED  TO  BE  GIVEN  FOR PURCHASES OF BIODIESEL PRODUCTS PRODUCED,
 PROCESSED AND/OR DISTRIBUTED IN NEW YORK STATE EXEMPT FROM  STATE  SALES
 AND  COMPENSATING USE TAXES PURSUANT TO PARAGRAPH FORTY-FIVE OF SUBDIVI-
 SION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW SHALL ALSO  BE
 EXEMPT  FROM  SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDIC-
 TION.
   SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE)  AND
 SHALL  APPLY  TO  SALES   MADE AND USES OCCURRING ON AND AFTER THAT DATE
 ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
   § 11. The commissioner of taxation and finance is hereby authorized to
 implement the provisions of this act with respect to the elimination  of
 the imposition of sales tax, additional taxes, and supplemental taxes on
 biodiesel  products  produced,  processed and/or distributed in New York
 state and all other taxes so addressed by this act.
   § 12. This act shall take effect April 1, 2020.