NY State Senate Bill 2023-S4925

Current 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Feb 17, 2023	referred to budget and revenue

2023-S4925 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §48, amd §1817, Tax L; amd §89-b, St Fin L; amd §392-i, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S8479

2023-S4925 (ACTIVE) - Summary

Enacts the "gas tax holiday act of 2023"; provides that from the first of the month after the effective date of the section until December 31, 2023 the taxes imposed on retail sales of fuel gas, motor fuel and diesel motor fuel shall be exempt from certain taxes.

2023-S4925 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4925

SPONSOR: PARKER
 
TITLE OF BILL:

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 2023"

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to establish a freeze on the taxes imposed
on the manufacturing, distribution, storage, and sale of gasoline in the
state until December 31, 2023, and ensure customers receive the benefits
from reduced prices. A short freeze is critical in responding to the
surging gas pump prices and the abrupt hikes in customer's monthly ener-
gy bills.

 
SUMMARY OF PROVISIONS:

Section 1 identifies the title of the bill.

Section 2 proposed the fuel tax holiday; Provides that the taxes imposed

on retail sales of motor fuel and natural gas made during the applicable
period shall be exempt from the taxes imposed by articles twelve-A,
thirteen-A, and twenty-eight of this chapter; retailers should provide a
price reduction in the amount of tax in excess of the prepaid amount
that would have been collected by the customer; provides that a retail
seller may advertise that the motor fuel and/or natural gas is being or
will be sold without the state taxes.  A retailer is 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, article
twenty-eight of this chapter; Retailer May claim the credit for the
sales of motor fuel and diesel fuel for the applicable period.

Section 3 amends the state finance law, authorizing the comptroller, in
consultation with the director of the division of the budget, shall
authorize the appropriate method for the appropriation of funds special
obligation reserve and 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

Section 4 amends the general business law to provide that price
reductions shall reflect change in sales tax computation.

Section 5 provides that the benefits flow down to customer requiring
every person engaged in the retail sale of motor fuel and natural gas
and/or a distributor of such, by reducing the prices charged for motor
fuel and natural gas 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.

Section 6 provides that a municipality may elect to eliminate all taxes
and motor fuel and diesel motor fuel.

Section 7 authorization the commissioner of taxation and finance to
promulgate rules, on an emergency basis necessary to provide the tax
freeze.

Section 8 sets the effective date.

 
JUSTIFICATION:

Existing law, the motor vehicle fuel tax law, imposes a tax upon each
gallon of motor vehicle fuel removed from a refinery or terminal rack in
this state, entered by this state, or sold in this state, at a specified
rate per gallon. A sales and use tax is also imposed on natural gas.

Currently, gas prices at the pump for motor fuel nears $3.5 per gallon
across the state, due to supply chain shortages and tax prices.  Abrupt
hikes recently imposed on customer energy bills, also for similar
reasons, has left many with bills 4 times higher than their previous and
usual amount. Subsequently, consumers are left unable to pay their ener-
gy bills and overwhelmed with the prospects of a lengthy debt sentence
Especially problematic as the state continues to struggle with account-
ing arrears and the payment of such. These prices show little indication
that they will decrease without intervention.

A "gas tax holiday" is a limited yet effective way to provide families
with modest relief and support local businesses and employers.
Although, gas cannot play a long-term role nor will any new gas infras-
tructures be built in the state, it plays a short-term role in reducing
our reliance on coal-fired electricity for a smooth transition to inter-
mittent renewable sources such as solar and wind.  A momentary tax break
in response to the recent surges would not thwart our climate goals but
keeps current rates justifiable and assists in the just transition to
renewable energy.

This bill would suspend the imposition of taxes on motor fuel gas and
the state sales and use tax until December 31, 2023. The rate will be
lower for sellers and distributors, who must then pass it down to
consumers via lower utility rates and lower fuel cost. The benefits
received from the tax shall also be properly appropriated under the act.

 
PRIOR LEGISLATIVE HISTORY:

2021/22: S8479A - Amend and recommit to budget and revenue

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect take effect immediately.

2023-S4925 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4925
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 17, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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, the state  finance  law,  and  the  general
   business  law,  in  relation  to  enacting the "gas tax holiday act of
   2023"

   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 2023".
   § 2. The tax law is amended by adding a new  section  48  to  read  as
 follows:
   § 48. 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-THREE.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06329-01-3

 S. 4925                             2
 
 CORPORATION AS SUCH TERMS ARE DEFINED   IN   SECTION TWO OF  THE  PUBLIC
 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
 S. 4925                             3

 INCLUDES  THE  APPLICABLE  PERIOD.  NOTWITHSTANDING  THE FOREGOING, IF A
 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-EIGHT 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-EIGHT 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-EIGHT
 OF  THE TAX LAW, EXEMPTION FROM TAXATION PURSUANT TO SECTION FORTY-EIGHT
 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-EIGHT OF THIS CHAPTER, EXEMPTION FROM TAXATION PURSUANT TO
 SECTION FORTY-EIGHT 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  compen-
 sating  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.
 S. 4925                             4
 
   §  6. Notwithstanding any law to the contrary, a municipality may make
 the election to eliminate all taxes on fuel gas, motor fuel  and  diesel
 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-eight
 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.

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Senate Bill S4925

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S4925 (ACTIVE) - Details

2023-S4925 (ACTIVE) - Summary

2023-S4925 (ACTIVE) - Sponsor Memo

2023-S4925 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4925

Share this bill

Sponsored By

Kevin S. Parker

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S4925 (ACTIVE) - Details

2023-S4925 (ACTIVE) - Summary

2023-S4925 (ACTIVE) - Sponsor Memo

2023-S4925 (ACTIVE) - Bill Text download pdf

Comments