S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3853
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced by M. of A. THIELE -- 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03826-01-3
              

 A. 3853                             2
 
 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 2 of part T of chapter 59 of the laws of 2022, 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), (m) or (q) of this  section,  which
 gallonage  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 section 3 of part T of chapter 59 of the laws of 2022, 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), (m) or (q) of this section, which gallo-
 nage 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:
   (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
 A. 3853                             3
 
 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 amended by section 5 of part J of chapter 59 of
 the laws of 2021, 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 (n) to read as follows:
   (N)  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
 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
 A. 3853                             4
 
 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 2023) 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 repeal of such paragraph pursuant to section 19  of
 part  W-1  of  chapter 109 of the laws of 2006, as amended, and shall be
 deemed repealed therewith, when upon such date the provisions of section
 five of this act shall take effect.