Senate Bill S8539A

2021-2022 Legislative Session

Establishes a cap on the amount of tax charged on the sale of motor fuel and diesel motor fuel

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Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 11, 2022	print number 8539a
Mar 11, 2022	amend (t) and recommit to budget and revenue
Mar 09, 2022	referred to budget and revenue

Bill Amendments

Original

A (Active)

2021-S8539 - Details

See Assembly Version of this Bill:: A9498
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §47, Tax L

2021-S8539 - Summary

Establishes a twenty-five and three quarters cents per gallon cap on the amount of tax charged on the sale of motor fuel and diesel motor fuel; directs retail sellers to adjust the cost of motor fuel and diesel motor fuel to reflect such cap.

2021-S8539 - Sponsor Memo

                                 
BILL NUMBER: S8539

SPONSOR: MANNION
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a cap on the
amount of sales tax charged on the sale of motor fuel and diesel motor
fuel; and providing for the repeal of such provisions upon expiration
thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation will provide financial relief to New Yorkers by estab-
lishing a gasoline tax cap.

 
SUMMARY OF PROVISIONS:

Section 1. Amends tax law by adding a new section to cap sales tax on
motor fuel and diesel motor fuel. This cap shall be set at .25 cents per
gallon and will be equally distributed to the county and state govern-
ments. Retail sellers must adjust the sales tax to reflect this change.

Section 2. Effective Date. Will be repealed after one year.

 
JUSTIFICATION:

The United States is facing a rise in global energy prices and New York
State families are bearing the burden of the high cost of gasoline. To
assist in the accessibility and affordability of gasoline, this legis-
lation makes strides to lower the cost by introducing a cap on sales
tax.

The average 2021 price of $3.09 per gallon that the Division of Budget
used for its 2022-2023 revenue projections was used to determine the
tax. New York State collects a 4 percent tax on gasoline regardless of
the per gallon price, while County tax varies, it typically matches the
state's 4 percent. This legislation will not allow the sales tax on
gasoline to exceed 8 percent of $3.09 - the average cost of gasoline per
gallon in 2021 according to the New York State Energy Research and
Development Authority.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD

 
EFFECTIVE DATE:
Immediately

2021-S8539 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8539
 
                             I N  S E N A T E
 
                               March 9, 2022
                                ___________
 
 Introduced  by  Sen. MANNION -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to establishing a  cap  on  the
   amount of sales tax charged on the sale of motor fuel and diesel motor
   fuel;  and providing for the repeal of such provisions upon expiration
   thereof

   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 47 to read
 as follows:
   § 47. CAP ON SALES TAX FOR THE SALE OF MOTOR  FUEL  AND  DIESEL  MOTOR
 FUEL.  (A) FOR PURPOSES OF THIS SECTION:
   (1)  "MOTOR  FUEL" AND "DIESEL MOTOR FUEL" SHALL HAVE THE SAME MEANING
 AS SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (2) "FILLING STATION" SHALL HAVE  THE  SAME  MEANING  AS  SECTION  TWO
 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (3)  "RETAIL  SALE"  AND "SOLD AT RETAIL" SHALL MEAN ANY SALE OF MOTOR
 FUEL OR DIESEL MOTOR FUEL AT A FILLING STATION TO A PERSON FOR USE IN  A
 MOTOR VEHICLE.
   (4)  "RETAIL  SELLER"  SHALL  MEAN  ANY PERSON WHO SELLS MOTOR FUEL OR
 DIESEL MOTOR FUEL AT RETAIL.
   (5) "SALE" SHALL HAVE THE SAME MEANING AS SECTION TWO HUNDRED  EIGHTY-
 TWO OF THIS CHAPTER.
   (B) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 THERE  SHALL  BE  ESTABLISHED  A  CAP ON THE SALES TAX OF MOTOR FUEL AND
 DIESEL MOTOR  FUEL  OF  TWENTY-FIVE  CENTS  PER  GALLON  TOTAL,  EQUALLY
 DISTRIBUTED  BETWEEN  BOTH  THE  STATE  SALES  TAX RATE AND ANY LIKE TAX
 IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF  THIS  CHAP-
 TER.
   (C) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 RETAIL SELLERS SHALL ADJUST THE COST OF MOTOR FUEL AND DIESEL MOTOR FUEL
 TO  REFLECT  THE  MAXIMUM  TWENTY-FIVE CENTS PER GALLON SALES TAX ESTAB-
 LISHED PURSUANT TO THIS SECTION.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14995-02-2

co-Sponsors

2021-S8539A (ACTIVE) - Details

See Assembly Version of this Bill:: A9498
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §47, Tax L

2021-S8539A (ACTIVE) - Summary

2021-S8539A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8539A               Revised 3/15/2022

SPONSOR: MANNION
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a cap on the
amount of tax charged on the sale of motor fuel and diesel motor fuel;
and providing for the repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation will provide financial relief to New Yorkers by estab-
lishing a gasoline tax cap.

 
SUMMARY OF PROVISIONS:

Section 1. Amends tax law by adding a new section to cap tax on motor
fuel and diesel motor fuel. This cap shall be set at twenty-five and
three quarter cents per gallon. Up to seventeen cents will be allocated
to the state and up to eight and three quarter cents will be allocated
toward the county or city. Retail sellers must adjust the tax to reflect
this change.

Section 2. Effective Date. Will be repealed after one year.

 
JUSTIFICATION:

The United States is facing a rise in global energy prices and New York
State families are bearing the burden of the high cost of gasoline. To
assist in the accessibility and affordability of gasoline, this legis-
lation makes strides to lower the cost by introducing a cap on tax.

The average 2021 price of $3.09 per gallon, that the Division of Budget
used for its 2022-2023 revenue projections, was used to determine this
tax cap. New York State collects a 4 percent sales tax on gasoline
regardless of the per gallon price, in addition to NYS petroleum busi-
ness tax, NYS spill tax, NYS petroleum testing fee, and NYS excise tax.
County and city tax varies, it typically matches the state's 4 percent
sales tax. This legislation will not allow the tax on gasoline to exceed
8 percent of $3.09 - the average cost of gasoline per gallon in 2021
according to the New York State Energy Research and Development Authori-
ty.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD

 
EFFECTIVE DATE:
Immediately

2021-S8539A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8539--A
 
                             I N  S E N A T E
 
                               March 9, 2022
                                ___________
 
 Introduced  by  Sen. MANNION -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the tax law, in relation to establishing a  cap  on  the
   amount of tax charged on the sale of motor fuel and diesel motor fuel;
   and providing for the repeal of such provisions upon expiration there-
   of
 
   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 47  to  read
 as follows:
   §  47.  CAP  ON  TAX FOR THE SALE OF MOTOR FUEL AND DIESEL MOTOR FUEL.
 (A) FOR PURPOSES OF THIS SECTION:
   (1) "MOTOR FUEL" AND "DIESEL MOTOR FUEL" SHALL HAVE THE  SAME  MEANING
 AS SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (2)  "FILLING  STATION"  SHALL  HAVE  THE  SAME MEANING AS SECTION TWO
 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (3) "RETAIL SALE" AND "SOLD AT RETAIL" SHALL MEAN ANY  SALE  OF  MOTOR
 FUEL  OR DIESEL MOTOR FUEL AT A FILLING STATION TO A PERSON FOR USE IN A
 MOTOR VEHICLE.
   (4) "RETAIL SELLER" SHALL MEAN ANY PERSON  WHO  SELLS  MOTOR  FUEL  OR
 DIESEL MOTOR FUEL AT RETAIL.
   (5)  "SALE" SHALL HAVE THE SAME MEANING AS SECTION TWO HUNDRED EIGHTY-
 TWO OF THIS CHAPTER.
   (B) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 THERE SHALL BE ESTABLISHED A CAP ON THE TAX OF  MOTOR  FUEL  AND  DIESEL
 MOTOR FUEL OF TWENTY-FIVE AND THREE QUARTERS CENTS PER GALLON TOTAL.  OF
 THE TWENTY-FIVE AND THREE QUARTERS CENTS, UP TO SEVENTEEN CENTS SHALL BE
 ALLOCATED TO THE STATE AND UP TO EIGHT AND THREE QUARTERS CENTS SHALL BE
 ALLOCATED TO THE COUNTY OR CITY IN WHICH THE FILLING STATION IS LOCATED.
 THE FOLLOWING NEW YORK STATE TAXES SHALL EQUAL SEVENTEEN CENTS IN TOTAL-
 ITY:
   (1) NEW YORK STATE PETROLEUM BUSINESS TAX;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14995-05-2
 S. 8539--A                          2
 
   (2) NEW YORK STATE SPILL TAX;
   (3) NEW YORK STATE PETROLEUM TESTING FEE;
   (4) NEW YORK STATE EXCISE TAX;
   (5) NEW YORK STATE SALES TAX; AND
   (6)  ANY  OTHER  NEW YORK STATE TAX OR FEE ENACTED AFTER THE EFFECTIVE
 DATE OF THIS SECTION AND ANY LIKE TAX IMPOSED PURSUANT TO THE  AUTHORITY
 OF ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (C) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 RETAIL SELLERS SHALL ADJUST THE COST OF MOTOR FUEL AND DIESEL MOTOR FUEL
 TO  REFLECT  THE  MAXIMUM  TWENTY-FIVE  CENTS PER GALLON TAX ESTABLISHED
 PURSUANT TO THIS SECTION.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed one year after such date.

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Senate Bill S8539A

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

Bill Amendments

2021-S8539 - Details

2021-S8539 - Summary

2021-S8539 - Sponsor Memo

2021-S8539 - Bill Text download pdf

co-Sponsors

2021-S8539A (ACTIVE) - Details

2021-S8539A (ACTIVE) - Summary

2021-S8539A (ACTIVE) - Sponsor Memo

2021-S8539A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

John W. Mannion

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

Bill Amendments

2021-S8539 - Details

2021-S8539 - Summary

2021-S8539 - Sponsor Memo

2021-S8539 - Bill Text download pdf

co-Sponsors

Shelley B. Mayer

2021-S8539A (ACTIVE) - Details

2021-S8539A (ACTIVE) - Summary

2021-S8539A (ACTIVE) - Sponsor Memo

2021-S8539A (ACTIVE) - Bill Text download pdf

Comments