S T A T E O F N E W Y O R K
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S. 3719 A. 5512
2019-2020 Regular Sessions
S E N A T E - A S S E M B L Y
February 13, 2019
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IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Budget and
Revenue
IN ASSEMBLY -- Introduced by M. of A. THIELE, GARBARINO -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting fuel used in
vessels used directly and predominantly in a business providing sport
fishing opportunities for hire to the general public from the tax on
petroleum businesses and from sales and compensating use taxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 300 of the tax law is amended by adding a new
subdivision (j-1) to read as follows:
(J-1) "COMMERCIAL SPORT FISHING VESSEL" MEANS A VESSEL OWNED BY A
PERSON, WHO HAS BEEN ISSUED AND HOLDS A MARINE AND COASTAL DISTRICT
PARTY AND CHARTER BOAT LICENSE PURSUANT TO SECTION 13-0336 OF THE ENVI-
RONMENTAL CONSERVATION LAW.
§ 2. Paragraph 2 of subdivision (b) of section 301-a of the tax law,
as added by section 154 of part A of chapter 389 of the laws of 1997, is
amended to read as follows:
(2) Motor fuel brought into this state in the fuel tank connecting
with the engine of a vessel propelled by the use of such motor fuel
shall be deemed to constitute a taxable use of motor fuel for the
purposes of this subdivision to the extent that the fuel is consumed in
the operation of the vessel in this state. Provided, however, that this
paragraph shall not apply to (i) a recreational motor boat or (ii)
subsequent to August thirty-first, nineteen hundred ninety-four, a
commercial fishing vessel (as defined in subdivision (j) of section
three hundred of this article) if the motor fuel imported and consumed
in this state is used to operate such vessel while it is engaged in the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03218-01-9
S. 3719 2 A. 5512
harvesting of fish for sale OR (III) A COMMERCIAL SPORT FISHING VESSEL,
IF SUCH VESSEL PROVIDES ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR
HER TOTAL ANNUAL INCOME. Provided, further, that tax liability for
gallonage that a vessel consumes shall be the tax liability with respect
to the positive difference between the gallonage consumed in this state
during the reporting period and the gallonage purchased in this state
(upon which the tax imposed by this section has been paid) during such
period. A credit or refund shall be available for any excess of tax
liability for gallonage purchased in this state during the period over
tax liability on gallonage so consumed in this state during such period,
which excess shall be presumed to have been used outside this state.
§ 3. Subparagraph (B) of paragraph 1 of subdivision (c) of section
301-a of the tax law, as amended by section 19 of part K of chapter 61
of the laws of 2011, is amended to read as follows:
(B) Highway diesel motor fuel brought into this state in the fuel tank
connecting with the engine of a vessel propelled by the use of such
diesel motor fuel shall be deemed to constitute a taxable use of diesel
motor fuel for the purpose of this paragraph to the extent of the fuel
that is consumed in the operation of the vessel in this state. Provided,
however, this paragraph shall not apply to (i) a recreational motor boat
or (ii) a commercial fishing vessel (as defined in subdivision (j) of
section three hundred of this article) if the highway diesel motor fuel
imported into and consumed in this state is used to operate such commer-
cial fishing vessel while it is engaged in the harvesting of fish for
sale OR (III) A COMMERCIAL SPORT FISHING VESSEL, IF SUCH VESSEL PROVIDES
ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR HER TOTAL ANNUAL INCOME.
Provided, further, that tax liability for gallonage that a vessel
consumes in this state shall be the tax liability with respect to the
positive difference between the gallonage consumed in this state during
the reporting period and the gallonage purchased in this state (upon
which the tax imposed by this section has been paid) during such period.
A credit or refund shall be available for any excess of tax liability
for gallonage purchased in this state during the period over tax liabil-
ity on gallonage so consumed in this state during such period, which
excess shall be presumed to have been used outside this state.
§ 4. The opening paragraph of section 301-c of the tax law, as amended
by section 5 of part W-1 of chapter 109 of the laws of 2006, is amended
to read as follows:
A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such purchaser
in accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or (o)
of this section or used by such purchaser in accordance with subdivision
(c), (d), (f), (g), (G-1), (i), (l) or (m) of this section, which gallo-
nage has been included in the measure of the tax imposed by this article
on a petroleum business:
§ 5. The opening paragraph of section 301-c of the tax law, as amended
by chapter 468 of the laws of 2000, is amended to read as follows:
A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such purchaser
in accordance with subdivision (a), (b), (e), (h), (j) or (k) of this
section or used by such purchaser in accordance with subdivision (c),
(d), (f), (g), (G-1), (i), (l) or (m) of this section, which gallonage
has been included in the measure of the tax imposed by this article on a
petroleum business:
§ 6. Section 301-c of the tax law is amended by adding a new subdivi-
sion (g-1) to read as follows:
S. 3719 3 A. 5512
(G-1) DIESEL MOTOR FUEL AND MOTOR FUEL USED IN THE OPERATION OF
COMMERCIAL SPORT FISHING VESSELS. DIESEL MOTOR FUEL OR MOTOR FUEL
PURCHASED IN THIS STATE BY THE OPERATOR OF A COMMERCIAL SPORT FISHING
VESSEL AT RETAIL WHEREIN SUCH DIESEL MOTOR FUEL OR SUCH MOTOR FUEL IS
DELIVERED BY A PUMP EQUIPPED WITH A HOSE DIRECTLY INTO THE FUEL TANK OF
A COMMERCIAL SPORT FISHING VESSEL TO BE USED AS FUEL IN THE OPERATION OF
SUCH VESSEL FOR THE PURPOSE OF PROVIDING SPORT FISHING OPPORTUNITIES FOR
HIRE TO THE GENERAL PUBLIC; BUT ONLY WHERE (1) THE TAX IMPOSED PURSUANT
TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SUCH DIESEL MOTOR FUEL OR
SUCH MOTOR FUEL AND THE ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY
SUCH PURCHASER, (2) SUCH PURCHASER POSSESSES DOCUMENTARY PROOF SATISFAC-
TORY TO THE COMMISSIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE
AMOUNT OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE, AND (3) THE VESSEL
PROVIDES ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR HER TOTAL ANNU-
AL INCOME. PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL REQUIRE SUCH
DOCUMENTARY PROOF TO QUALIFY FOR ANY REIMBURSEMENT OF TAX PROVIDED BY
THIS SECTION AS THE COMMISSIONER DEEMS APPROPRIATE.
§ 7. Subdivision (a) of section 1115 of the tax law is amended by
adding a new paragraph 24-a to read as follows:
(24-A) FUEL USED IN VESSELS USED DIRECTLY AND PREDOMINANTLY IN A BUSI-
NESS PROVIDING SPORT FISHING OPPORTUNITIES FOR HIRE TO THE GENERAL
PUBLIC; PROVIDED THAT SUCH VESSEL PROVIDES ITS OWNER WITH AT LEAST FIFTY
PERCENT OF HIS OR HER TOTAL ANNUAL INCOME.
§ 8. Subparagraph (i) of paragraph 1 of subdivision (a) of section
1210 of the tax law, as separately amended by section 2 of part WW and
section 5 of part Z of chapter 60 of the laws of 2016, is amended to
read as follows:
(i) Any local law, ordinance or resolution enacted by any city of less
than one million or by any county or school district, imposing the taxes
authorized by this subdivision, shall, notwithstanding any provision of
law to the contrary, exclude from the operation of such local taxes all
sales of tangible personal property for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or in both; and all
sales of fuel sold for use in commercial aircraft and general aviation
aircraft; AND THE FUEL USED IN COMMERCIAL SPORT FISHING VESSELS
EXEMPTION PROVIDED FOR IN PARAGRAPH TWENTY-FOUR-A OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER; and, unless such city,
county or school district elects otherwise, shall omit the provision for
credit or refund contained in clause six of subdivision (a) or subdivi-
sion (d) of section eleven hundred nineteen of this chapter.
§ 9. Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
(Q) 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 SAME EXEMPTIONS FROM SUCH TAXES AS
THE FUEL USED IN COMMERCIAL SPORT FISHING VESSELS EXEMPTION FROM STATE
SALES AND COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH TWENTY-FOUR-A OF
SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY
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ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS
SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVI-
SIONS (D) AND (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION
SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN
AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE
SUCH EXEMPTIONS AS IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLA-
TURE 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, OR FOR THE USE OF, PROPERTY AND SERVICES
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
TWENTY-FOUR-A OF SUBDIVISION (A) OF SECTION 1115 OF THE TAX LAW SHALL
ALSO BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS
JURISDICTION.
SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT JUNE 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2010) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE IN ACCORD-
ANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216
AND 1217 OF THE NEW YORK TAX LAW.
§ 10. This act shall take effect on the ninetieth day after it shall
have become a law; provided, that the amendments to the opening para-
graph of section 301-c of the tax law, made by section four of this act
shall not affect the expiration and repeal of such paragraph pursuant to
section 19 of part W-1 of chapter 109 of the laws of 2006, as amended,
and shall expire and be deemed repealed therewith, when upon such date
the provisions of section five of this act shall take effect.