S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8479--A
 
                             I N  S E N A T E
 
                               March 4, 2022
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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, the state  finance  law,  and  the  general
   business  law,  in  relation  to  enacting the "gas tax holiday act of
   2022"

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "gas tax holiday act of 2022".
   § 2. The tax law is amended by adding a new  section  45  to  read  as
 follows:
   § 45. FUEL TAX HOLIDAY. (A) DEFINITIONS. FOR PURPOSES OF THIS SECTION:
   (1)  "APPLICABLE  PERIOD"  SHALL MEAN FROM THE FIRST OF THE MONTH NEXT
 SUCCEEDING THE EFFECTIVE DATE OF THIS  SECTION  UNTIL  DECEMBER  THIRTY-
 FIRST, TWO THOUSAND TWENTY-TWO.
   (2)  "DIESEL  MOTOR FUEL" AND "MOTOR FUEL" SHALL HAVE THE SAME MEANING
 AS SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (3) "FILLING STATION" SHALL HAVE  THE  SAME  MEANING  AS  SECTION  TWO
 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (4)  "FUEL GAS" SHALL HAVE THE SAME MEANING AS IN SECTION 1-103 OF THE
 ENERGY LAW.
   (5)  "RETAIL  SALE"  AND  "SOLD AT RETAIL" SHALL MEAN: (I) ANY SALE OF
 FUEL GAS; OR (II) ANY SALE OF MOTOR FUEL OR DIESEL MOTOR FUEL AT A FILL-
 ING STATION TO A PERSON FOR USE IN A MOTOR VEHICLE.
   (6) "RETAIL SELLER" SHALL MEAN ANY PERSON  WHO  SELLS  MOTOR  FUEL  OR
 DIESEL MOTOR FUEL AT RETAIL.
   (7)  "SALE" SHALL HAVE THE SAME MEANING AS SECTION TWO HUNDRED EIGHTY-
 TWO OF THIS CHAPTER.
   (8) "UTILITY" SHALL MEAN A MUNICIPALITY, TELEPHONE CORPORATION, UTILI-
 TY CORPORATION,  STEAM  CORPORATION,  WATERWORKS  CORPORATION, AN  ELEC-
 TRIC  CORPORATION, A GAS CORPORATION, AND A COMBINATION GAS AND ELECTRIC
 CORPORATION AS SUCH TERMS ARE DEFINED   IN   SECTION TWO OF  THE  PUBLIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14876-02-2
 S. 8479--A                          2
 
 SERVICE LAW, AND ANY OTHER COMMUNITY WATER SYSTEM AS DEFINED IN 10 NYCRR
 § 5-1.1.
   (9)  "UTILITY  CORPORATION" SHALL HAVE THE SAME MEANING AS SUBDIVISION
 TWENTY-FOUR OF SECTION TWO OF THE PUBLIC SERVICE LAW.
   (B) EXEMPTION FROM TAXATION. NOTWITHSTANDING ANY  OTHER  PROVISION  OF
 LAW,  RULE  OR  REGULATION  TO THE CONTRARY, THE TAXES IMPOSED ON RETAIL
 SALES OF FUEL GAS, MOTOR FUEL AND DIESEL  MOTOR  FUEL  MADE  DURING  THE
 APPLICABLE  PERIOD  SHALL  BE  EXEMPT FROM THE TAXES IMPOSED BY ARTICLES
 TWELVE-A, THIRTEEN-A, AND TWENTY-EIGHT OF THIS CHAPTER.  IF  THE  RETAIL
 SELLER  IS  LOCATED  WITHIN A MUNICIPALITY THAT HAS ELECTED TO ELIMINATE
 THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-NINE OF  THIS  CHAPTER,  SUCH
 TAXES  SHALL  NOT  BE IMPOSED ON THE RETAIL SALE OF MOTOR FUEL OR DIESEL
 MOTOR FUEL DURING THE APPLICABLE PERIOD.
   (C) PRICE REDUCTION. (1) DURING THE  APPLICABLE  PERIOD,  EACH  RETAIL
 SELLER  SHALL REDUCE THE PRICE PER GALLON OF MOTOR FUEL AND DIESEL MOTOR
 FUEL OFFERED FOR SALE BY THE AMOUNT OF THE TAXES THAT THE RETAIL  SELLER
 PREPAID ON THE GALLON OF MOTOR FUEL AND DIESEL MOTOR FUEL AND THE AMOUNT
 OF  TAX  IN  EXCESS OF THE PREPAID AMOUNT THAT WOULD HAVE BEEN COLLECTED
 FROM THE CONSUMER IF THE SALE OF THE MOTOR FUEL OR DIESEL MOTOR FUEL HAD
 NOT BEEN EXEMPT FROM TAX PURSUANT TO SUBDIVISION (B) OF THIS SECTION.
   (2) DURING THE  APPLICABLE  PERIOD,  EACH  UTILITY  CORPORATION  SHALL
 REDUCE  THE  RATE  OF  FUEL  GAS RELATED UTILITY RATES PER KILOWATT HOUR
 (KWH) OFFERED  BY  THE  AMOUNT   OF THE TAXES THAT  THE  UTILITY  CORPO-
 RATION  PREPAID  ON  THE FUEL GAS AND THE AMOUNT OF TAX IN EXCESS OF THE
 PREPAID AMOUNT THAT WOULD  HAVE  BEEN   COLLECTED FROM THE  CONSUMER  IF
 THE  FUEL GAS RATES HAD NOT BEEN EXEMPT FROM TAX PURSUANT TO SUBDIVISION
 (B) OF THIS SECTION.
   (D) ADVERTISING. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
 CONTRARY, A RETAIL SELLER MAY  ADVERTISE  THAT  THE  MOTOR  FUEL  AND/OR
 DIESEL MOTOR FUEL IS BEING OR WILL BE SOLD WITHOUT THE STATE TAXES. SUCH
 ADVERTISEMENT  MAY COMMENCE NO EARLIER THAN THREE DAYS BEFORE THE APPLI-
 CABLE PERIOD AND SHALL END BY THE END OF THE APPLICABLE PERIOD.
   (2) NOTWITHSTANDING ANY  OTHER PROVISION OF LAW  TO  THE  CONTRARY,  A
 UTILITY  CORPORATION MAY ADVERTISE THAT FUEL GAS UTILITY RATES ARE BEING
 OR WILL BE CALCULATED WITHOUT THE IMPOSITION OF STATE SALES TAXES.  SUCH
 ADVERTISEMENT  MAY COMMENCE NO EARLIER THAN THREE DAYS BEFORE THE APPLI-
 CABLE PERIOD AND SHALL END BY THE END OF THE APPLICABLE PERIOD.
   (E) REFUNDS AND CREDITS. (1) NOTWITHSTANDING ANY  OTHER  PROVISION  OF
 LAW  TO  THE  CONTRARY, THE RETAIL SELLER SHALL BE ENTITLED TO RECEIVE A
 CREDIT AGAINST THE TAXES DUE PURSUANT TO ARTICLE  TWENTY-EIGHT  OF  THIS
 CHAPTER FOR THE AMOUNT OF TAX THAT THE RETAIL SELLER PREPAID PURSUANT TO
 ARTICLES  TWELVE-A, THIRTEEN-A, TWENTY-EIGHT AND, IF APPLICABLE, TWENTY-
 NINE OF THIS CHAPTER. IF THE RETAIL SELLER IS LOCATED WITHIN  A  MUNICI-
 PALITY THAT HAS ELECTED TO ELIMINATE THE TAX IMPOSED PURSUANT TO ARTICLE
 TWENTY-NINE  OF  THIS  CHAPTER,  THE  RETAIL SELLER SHALL BE ENTITLED TO
 CLAIM A CREDIT AGAINST THE TAXES DUE PURSUANT TO ARTICLE TWENTY-EIGHT OF
 THIS CHAPTER FOR SUCH PREPAID TAXES. THE AMOUNT OF  CREDIT  SHALL  EQUAL
 THE  AMOUNT OF TAX THAT WAS PREPAID PURSUANT TO ARTICLES TWELVE-A, THIR-
 TEEN-A, TWENTY-EIGHT AND, IF APPLICABLE, TWENTY-NINE OF THIS CHAPTER FOR
 EACH GALLON OF MOTOR FUEL AND DIESEL MOTOR FUEL SOLD  AT  RETAIL  DURING
 THE  APPLICABLE  PERIOD. SUCH CREDIT SHALL NOT BE ALLOWED FOR SALES THAT
 WOULD HAVE OTHERWISE BEEN EXEMPT FROM TAX.
   (2) A RETAIL SELLER MAY CLAIM THE CREDIT PRESCRIBED IN  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION WHEN THE RETAIL SELLER FILES ITS RETURN OF TAX FOR
 THE SALES OF MOTOR FUEL AND  DIESEL  MOTOR  FUEL  FOR  THE  PERIOD  THAT
 INCLUDES  THE  APPLICABLE  PERIOD.  NOTWITHSTANDING  THE FOREGOING, IF A
 S. 8479--A                          3
 
 RETAIL SELLER IS REQUIRED TO FILE ITS RETURN MORE THAN THIRTY DAYS AFTER
 THE CLOSE OF THE APPLICABLE PERIOD DEFINED IN PARAGRAPH ONE OF  SUBDIVI-
 SION  (A)  OF THIS SECTION, SUCH RETAILER SHALL BE AUTHORIZED TO FILE AN
 AMENDMENT  TO  ITS  MOST  RECENTLY FILED RETURN TO CLAIM SUCH CREDIT. NO
 CREDIT MAY  BE  CLAIMED  FOR  THE  TAXES  PREPAID  PURSUANT  TO  ARTICLE
 TWELVE-A,  THIRTEEN-A,  TWENTY-EIGHT  OR,  IF APPLICABLE, TWENTY-NINE OF
 THIS CHAPTER PURSUANT TO THIS SECTION  IF  THE  CLAIM  WOULD  HAVE  BEEN
 BARRED  PURSUANT  TO THE ARTICLE THAT REQUIRED PREPAYMENT OF SUCH TAXES.
 NO INTEREST SHALL BE PAID ON ANY CLAIMS FOR CREDIT MADE PURSUANT TO THIS
 SECTION.
   § 3. Subdivision 3 of section 89-b of the state finance law is amended
 by adding a new paragraph (g) to read as follows:
   (G) WITHIN FORTY-FIVE DAYS AFTER THE APPLICABLE PERIOD AS  DEFINED  BY
 SUBDIVISION  (A)  OF SECTION FORTY-FIVE OF THE TAX LAW, THE COMPTROLLER,
 IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE  BUDGET,  SHALL
 TRANSFER  FROM  THE  GENERAL  FUND TO THE SPECIAL OBLIGATION RESERVE AND
 PAYMENT ACCOUNT AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE  OTHERWISE
 BEEN  DEPOSITED  IN  THE  SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT
 PURSUANT TO THIS SECTION IF THE EXEMPTION DEFINED IN SUBDIVISION (B)  OF
 SECTION FORTY-FIVE OF THE TAX LAW HAD NOT BEEN AUTHORIZED.
   §  4. Section 392-i of the general business law, as amended by section
 5 of part M-1 of chapter 109 of the laws of 2006, is amended to read  as
 follows:
   §  392-i.  Prices  reduced to reflect change in sales tax computation.
 Every person engaged in the retail sale  of  motor  fuel  and/or  diesel
 motor  fuel  or  a  distributor  of  such  fuels,  as defined in article
 twelve-A of the tax law, shall reduce the price such person charges  for
 motor  fuel and/or diesel motor fuel in an amount equal to any reduction
 in taxes prepaid by the distributor, CREDIT  FOR  THE  AMOUNT  OF  TAXES
 PREPAID BY THE RETAIL SELLER ALLOWABLE PURSUANT TO SECTION FORTY-FIVE OF
 THE  TAX  LAW, EXEMPTION FROM TAXATION PURSUANT TO SECTION FORTY-FIVE OF
 THE TAX LAW TO THE EXTENT THAT THE TAX THAT WOULD  HAVE  BEEN  OTHERWISE
 DUE  EXCEEDS  THE  AMOUNT  OF  TAX  PREPAID, or paid by retail customers
 resulting from computing sales and compensating use AND OTHER taxes at a
 cents per gallon rate pursuant to the provisions  of  paragraph  two  of
 subdivision  (e) and subdivision (m) of section eleven hundred eleven of
 the tax law.
   § 5. Paragraph 1 of subdivision (n) of section 1817 of the tax law, as
 amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
 of 2009, is amended to read as follows:
   (1) Every person engaged in the  retail  sale  of  motor  fuel  and/or
 diesel  motor fuel or a distributor of such fuels, as defined in article
 twelve-A of this chapter, shall comply with the  provisions  of  section
 three  hundred  ninety-two-i 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 prepaid by the distributor, CREDIT FOR THE
 AMOUNT OF TAXES PREPAID BY  THE  RETAIL  SELLER  ALLOWABLE  PURSUANT  TO
 SECTION  FORTY-FIVE OF THIS CHAPTER, EXEMPTION FROM TAXATION PURSUANT TO
 SECTION FORTY-FIVE OF THIS CHAPTER TO THE EXTENT THAT THE TAX THAT WOULD
 HAVE BEEN OTHERWISE DUE EXCEEDS THE AMOUNT OF TAX PREPAID, or imposed on
 retail customers resulting from computing sales and compensating use AND
 OTHER taxes at a cents per gallon rate pursuant  to  the  provisions  of
 paragraph  two  of  subdivision  (e)  and subdivision (m) of section one
 thousand one hundred eleven of this chapter.
   § 6. Notwithstanding any law to the contrary, a municipality may  make
 the  election  to eliminate all taxes on fuel gas, motor fuel and diesel
 S. 8479--A                          4

 motor fuel pursuant to sections eleven hundred seven and eleven  hundred
 eight  of  the  tax  law  or  article twenty-nine of the tax law for the
 applicable period, as defined by subdivision (a) of  section  forty-five
 of the tax law, as added by section two of this act, by local law, ordi-
 nance  or resolution, if such municipality mails, by certified or regis-
 tered mail, a certified copy of such local law, ordinance or  resolution
 to  the  commissioner  of  taxation  and finance at his or her office in
 Albany no later than the Wednesday immediately preceding the  first  day
 of the applicable period.
   §  7.  The commissioner of taxation and finance shall, on an emergency
 basis, promulgate and/or amend any rules and  regulations  necessary  to
 provide  for the tax free sales of fuel gas, motor fuel and diesel motor
 fuel and refunds of prepaid tax to retail sellers.
   § 8. This act shall take effect immediately.