S. 3606 2
(m) Special rate adjustment for certain vessels. Notwithstanding any
provision of this section to the contrary, the use of non-highway diesel
motor fuel in the engine of a vessel to propel such vessel shall be
subject to tax at the motor fuel and highway diesel motor fuel rate
provided for in this section, and shall be subject to the provisions of
section three hundred one-j of this article, including the adjustment
set forth in paragraph [four] THREE of subdivision (a) of such section
three hundred one-j. A credit or refund shall be available to the extent
tax paid on gallonage used to propel any such vessel exceeds the amount
of tax due based on the tax rate set forth herein. Provided, however,
that the commissioner shall require such documentary proof to qualify
for any credit or reimbursement provided hereunder as the commissioner
deems appropriate.
§ 3. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g)
of section 301-a of the tax law are REPEALED.
§ 4. Subdivisions (a) and (d) of section 301-b of the tax law, subdi-
vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of
subdivision (a) as amended by section 3 of part E of chapter 59 of the
laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by
section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi-
sion (d) as amended by section 21 of part K of chapter 61 of the laws of
2011, are amended to read as follows:
(a) Products. (1) [Kerosene sold or used by a petroleum business which
is registered under article twelve-A of this chapter as a distributor of
diesel motor fuel so long as (i) such product has not been blended or
mixed with any other product constituting diesel motor fuel or motor
fuel or a residual petroleum product and (ii) such product is not used
by the petroleum business as fuel to operate a motor vehicle or sold by
such petroleum business to a consumer for use as fuel to operate a motor
vehicle.
(2) Kero-jet fuel (i) sold by a petroleum business which is registered
under article twelve-A of this chapter as a distributor of diesel motor
fuel to a consumer for use exclusively as jet aircraft fuel or to a
petroleum business registered under such article twelve-A as a "distrib-
utor of kero-jet fuel only" where such fixed base operator is engaged
solely in making or offering to make retail sales not in bulk of kero-
jet fuel directly into the fuel tank of an airplane for the purpose of
operating such airplane, (ii) used by a petroleum business, registered
under article twelve-A of this chapter as a distributor of diesel motor
fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in
bulk by a petroleum business registered under article twelve-A of this
chapter as a "distributor of kero-jet fuel only" where such fuel is
delivered directly into the fuel tank of a jet airplane for use in the
operation of such airplane.
(3)] Aviation gasoline, meeting the specifications set forth in Ameri-
can Standard Testing Material Specification D910 or Military Specifica-
tion MIL-G-5572, which is imported or caused to be imported into this
state by a petroleum business which is registered under article twelve-A
of this chapter as a distributor of motor fuel or produced, refined,
manufactured or compounded in this state by such a petroleum business.
[(4) Residual petroleum product sold by a petroleum business regis-
tered under this article as a residual petroleum product business if
such product is sold by such petroleum business to a consumer for use
exclusively as bunker fuel for vessels or if such product is used by
such petroleum business exclusively as bunker fuel in its own vessels.
S. 3606 3
(5)] (2) Liquefied petroleum gases, such as butane, ethane or propane,
USED FOR PURPOSES OTHER THAN AS MOTOR FUEL IN THE OPERATION OF A MOTOR
VEHICLE OR FOR USE IN THE OPERATION OF A PLEASURE OR RECREATIONAL MOTOR
BOAT OR USING OR CONSUMING LIQUEFIED PETROLEUM GAS FOR SUCH PURPOSE.
[(6)] (3) E85 imported or caused to be imported into this state or
produced, refined, manufactured or compounded in this state by a petro-
leum business registered under article twelve-A of this chapter, as a
distributor of motor fuel, and then sold by such petroleum business and
delivered to a filling station and placed in a storage tank of such
filling station for such E85 to be dispensed directly into a motor vehi-
cle for use in the operation of such vehicle.
[(7)] (4) (i) Partial B20 exemption. B20 imported or caused to be
imported into this state or produced, refined, manufactured or
compounded in this state by a petroleum business registered under arti-
cle twelve-A of this chapter, as a distributor of diesel motor fuel, and
then sold by such petroleum business.
(ii) Calculation of partial exemption. The amount of the partial
exemption under this paragraph shall be determined by multiplying the
quantity of B20 times twenty percent of the applicable taxes otherwise
imposed by this article on such fuel.
[(8)] (5) CNG or hydrogen.
(d) Sales to consumers for heating purposes. [(1)] Total residential
heating exemption. Non-highway diesel motor fuel sold by a petroleum
business registered under article twelve-A of this chapter as a distrib-
utor of diesel motor fuel or residual petroleum product sold by a petro-
leum business registered under this article as a residual petroleum
product business to the consumer exclusively for residential heating
purposes only if such non-highway diesel motor fuel is delivered into a
storage tank which is not equipped with a hose or other apparatus by
which such fuel can be dispensed into the fuel tank of a motor vehicle
and such storage tank is attached to the heating unit burning such fuel.
[(2) Partial non-residential heating exemption. (A) Non-highway diesel
motor fuel sold by a petroleum business registered under article
twelve-A of this chapter as a distributor of diesel motor fuel or resi-
dual petroleum product sold by a petroleum business registered under
this article as a residual petroleum product business to the consumer
exclusively for heating, other than residential heating purposes only if
such non-highway diesel motor fuel is delivered into a storage tank
which is not equipped with a hose or other apparatus by which such fuel
can be dispensed into the fuel tank of a motor vehicle and such storage
tank is attached to the heating unit burning such fuel (B) Calculation
of partial exemption. The partial exemption under this paragraph shall
be determined by multiplying the quantity of non-highway diesel motor
fuel and residual petroleum product eligible for the exemption times the
sum of the then current rate of the supplemental tax imposed by section
three hundred one-j of this article and forty-six percent of the then
current rate of the tax imposed by section three hundred one-a of this
article, with respect to the specific non-highway diesel motor fuel or
residual petroleum product rate, as the case may be.]
§ 5. The subdivision heading and paragraph 1 of subdivision (c) of
section 301-b of the tax law, as added by chapter 190 of the laws of
1990, are amended to read as follows:
Sales to [New York state and] the federal government. (1) Motor fuel
imported or caused to be imported into this state or produced, refined,
manufactured or compounded in this state by a petroleum business regis-
tered under article twelve-A of this chapter, as a distributor of motor
S. 3606 4
fuel, and then sold by such petroleum business to an organization
described in paragraph [one or] two of subdivision (a) of section eleven
hundred sixteen of this chapter where such motor fuel is used by such
organization for its own use or consumption.
§ 6. The opening paragraph and subdivisions (a) and (b) of section
301-c of the tax law, the opening paragraph as amended by section 2 of
part T of chapter 59 of the laws of 2022, subdivision (a) as amended by
section 23 of part K of chapter 61 of the laws of 2011, and subdivision
(b) as amended by chapter 330 of the laws of 1991, are 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)] (I), (K) OR (L) of this section or used by such purchaser in
accordance with subdivision (c), (d), (f), (g), [(i), (l), (m)] (J) or
[(q)] (N) of this section, which gallonage has been included in the
measure of the tax imposed by this article on a petroleum business:
(a) [Non-highway Diesel motor fuel used for heating purposes. (1)]
Total residential heating reimbursement. Non-highway Diesel motor fuel
purchased in this state and sold by such purchaser to a consumer for use
exclusively for residential heating purposes but only where (i) such
non-highway diesel motor fuel is delivered into a storage tank which is
not equipped with a hose or other apparatus by which such non-highway
Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle
and such storage tank is attached to the heating unit burning such non-
highway Diesel motor fuel, (ii) the tax imposed pursuant to this article
has been paid with respect to such non-highway diesel motor fuel and the
entire amount of such tax has been absorbed by such purchaser, and (iii)
such purchaser possesses documentary proof satisfactory to the commis-
sioner evidencing the absorption by it of the entire amount of the tax
imposed pursuant to this article. Provided, however, that the commis-
sioner is authorized, in the event that the commissioner determines that
it would not threaten the integrity of the administration and enforce-
ment of the tax imposed by this article, to provide a reimbursement with
respect to a retail sale to a consumer for residential heating purposes
of less than ten gallons of non-highway diesel motor fuel provided such
fuel is not dispensed into the tank of a motor vehicle.
[(2) Partial non-residential heating reimbursement. (A) Non-highway
Diesel motor fuel purchased in this state and sold by such purchaser to
a consumer for use exclusively for heating, other than for residential
heating purposes, but only where (i) such non-highway diesel motor fuel
is delivered into a storage tank which is not equipped with a hose or
other apparatus by which such non-highway Diesel motor fuel can be
dispensed into the fuel tank of a motor vehicle and such storage tank is
attached to the heating unit burning such non-highway Diesel motor fuel,
(ii) the tax imposed pursuant to this article has been paid with respect
to such non-highway diesel motor fuel and the entire amount of such tax
has been absorbed by such purchaser, and (iii) such purchaser possesses
documentary proof satisfactory to the commissioner evidencing the
absorption by it of the entire amount of the tax imposed pursuant to
this article.
(B) Calculation of partial reimbursement. Notwithstanding any other
provision of this article, the amount of the reimbursement under this
paragraph shall be determined by multiplying the quantity of non-highway
diesel motor fuel eligible for the reimbursement times the sum of the
then current rate of the supplemental tax imposed by section three
S. 3606 5
hundred one-j of this article and forty-six percent of the then current
rate of the tax imposed by section three hundred one-a of this article,
with respect to the non-highway diesel motor fuel rate, as the case may
be.]
(b) Sales to [New York state and] the federal government. Motor fuel
and diesel motor fuel purchased in this state and sold by such purchaser
in this state to an organization described in paragraph [one or] two of
subdivision (a) of section eleven hundred sixteen of this chapter where
(i) such motor fuel or diesel motor fuel is for such organization's own
use or consumption, (ii) the tax imposed pursuant to this article has
been paid with respect to such motor fuel or diesel motor fuel and the
entire amount of such tax has been absorbed by such purchaser and, (iii)
such purchaser possesses documentary proof satisfactory to the commis-
sioner of taxation and finance evidencing the absorption by it of the
entire amount of the tax imposed pursuant to this article. Provided,
however, that the commissioner [of taxation and finance] shall require
such documentary proof to qualify for any reimbursement of tax provided
by this section as the commissioner deems appropriate, including the
expansion of any certification required pursuant to section two hundred
eighty-five-a or two hundred eighty-five-b of this chapter to cover the
taxes imposed pursuant to this article.
§ 6-a. 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)] (I) of
this section or used by such purchaser in accordance with subdivision
(c), (d), (f), (g), [(i), (l), (m)] (J) or [(q)] (N) of this section,
which gallonage has been included in the measure of the tax imposed by
this article on a petroleum business:
§ 7. Subdivisions (i), (j) and (l) of section 301-c of the tax law are
REPEALED.
§ 8. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c of
the tax law are relettered subdivisions (i), (j), (k), (l), (m) and (n).
§ 9. Section 301-d of the tax law is REPEALED.
§ 10. Subdivision (f) of section 301-e of the tax law is REPEALED.
§ 11. Subdivision (a) of section 301-j of the tax law, as amended by
chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by
section 29 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(a) Imposition of tax. (1) In addition to the taxes imposed by
sections three hundred one-a and three hundred one-e of this article,
there is hereby imposed upon every petroleum business subject to tax
imposed under section three hundred one-a of this article and every
aviation fuel business subject to the aviation gasoline component of the
tax imposed under section three hundred one-e of this article, a supple-
mental monthly tax for each or any part of a taxable month at a rate of
six and eight-tenths cents per gallon with respect to the products
included in each component of the taxes imposed by such section three
hundred one-a and the aviation gasoline component of the tax imposed by
such section three hundred one-e of this article.
(2) [Provided, however, "commercial gallonage," as such term is
defined in subdivision (k) of section three hundred of this article,
shall be exempt from the measure of the tax imposed under this section.
S. 3606 6
(3)] Provided, further, "railroad diesel," as such term is defined in
subdivision (l) of section three hundred of this article, shall be
exempt from the measure of the tax imposed under this section.
[(4)] (3) Provided, further, a separate per gallon rate shall apply
with respect to highway diesel motor fuel. Such rate shall be determined
by taking the adjusted rate per gallon of tax imposed under paragraph
one of this subdivision as adjusted in accordance with paragraph [five]
FOUR of this subdivision and subtracting therefrom one and three-quar-
ters cents. Commencing January first, two thousand twelve, and each
January thereafter, the per gallon rate applicable to highway diesel
motor fuel shall be the adjusted rate under paragraph one of this subdi-
vision as adjusted in accordance with paragraph [five] FOUR of this
subdivision which commences on such date minus one and three-quarters
cents. The resulting rate under this paragraph shall be expressed in
hundredths of a cent.
[(5)] (4) Except as herein provided, the tax imposed under this
section shall be calculated in the same respective manner as the taxes
imposed by section three hundred one-a and section three hundred one-e
of this article. Except [for section three hundred one-d and except] as
otherwise provided in this section, all the provisions of this article
applicable to the taxes imposed by sections three hundred one-a and
three hundred one-e of this article, shall apply with respect to the
supplemental tax imposed by this section to the same extent as if it
were respectively imposed by such sections.
§ 12. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of
subdivision (c) of section 1105 of the tax law, subparagraph (ix) of
paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph
(x) of paragraph 3 as added by section 1 of part FF of chapter 407 of
the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws
of 2005, are amended to read as follows:
(ix) [such services rendered with respect to tangible property used or
consumed directly and predominantly in the production for sale of gas or
oil by manufacturing, processing, generating, assembling, refining,
mining, or extracting.
(x)] such services rendered with respect to property described in
paragraph twelve-a of subdivision (a) of section eleven hundred fifteen
of this article.
(5) Maintaining, servicing or repairing real property, property or
land, as such terms are defined in the real property tax law, whether
the services are performed in or outside of a building, as distinguished
from adding to or improving such real property, property or land, by a
capital improvement as such term capital improvement is defined in para-
graph nine of subdivision (b) of section eleven hundred one of this
article, but excluding (i) services rendered by an individual who is not
in a regular trade or business offering [his] SUCH INDIVIDUAL'S services
to the public, (ii) [services rendered directly with respect to real
property, property or land used or consumed directly and predominantly
in the production for sale of gas or oil by manufacturing, processing,
generating, assembling, refining, mining, or extracting, (iii)] services
rendered with respect to real property, property or land used or
consumed predominantly either in the production of tangible personal
property, for sale, by farming or in a commercial horse boarding opera-
tion, or in both and [(iv)] (III) services of removal of waste material
from a facility regulated as a transfer station or construction and
demolition debris processing facility by the department of environmental
S. 3606 7
conservation, provided that the waste material to be removed was not
generated by the facility.
§ 13. Subparagraph (xi) of paragraph 3 of subdivision (c) of section
1105 of the tax law is REPEALED.
§ 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is
REPEALED.
§ 15. Paragraphs 3 and 4 of subdivision (a) of section 1221 of the tax
law, paragraph 3 as amended by chapter 2 of the laws of 1995 and para-
graph 4 as added by chapter 93 of the laws of 1965, are amended and a
new paragraph 5 is added to read as follows:
(3) except in accordance with the provisions of section twenty-b of
the general city law, a tax upon gross incomes, gross operating incomes
or gross receipts of persons subject to taxation under the provisions of
section one hundred eighty-six-a or one hundred eighty-six-e of this
chapter, but this clause shall not be deemed to restrict the power to
tax persons not subject to taxation under such section of this chapter
who are otherwise subject to taxation under subdivision (a) of section
twelve hundred one OF THIS ARTICLE, nor the power to provide for credits
against any tax imposed pursuant to such subdivision, nor to limit the
rates of taxes authorized to be imposed by such subdivision [(a) of such
section twelve hundred one], [or]
(4) a tax upon interest or dividends received from a corporation by a
person referred to in this section[.], OR
(5) A TAX ON FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES.
§ 16. Section 1148 of the tax law is amended by adding a new subdivi-
sion (d) to read as follows:
(D) PROVIDED, HOWEVER, BEFORE SUCH FUNDS ARE DISTRIBUTED PURSUANT TO
SUBDIVISION (A) OF THIS SECTION, ANY REVENUE COLLECTED BY THE STATE,
FROM FUEL SOLD TO AN AIRLINE FOR USE IN ITS AIRPLANES, UNDER THE AUTHOR-
ITY GRANTED TO THE STATE BY THIS ARTICLE SHALL BE DEDICATED TO THE
AVIATION PURPOSE ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND,
PROVIDED THAT THE PORTION FOR THE AIRPORT OR AVIATION STATE PROGRAM
SHALL BE NO LESS THAN FORTY MILLION DOLLARS ANNUALLY, WITH THE REMAINING
REVENUE COLLECTED FROM SUCH TAXES BEING DEDICATED TO THE CAPITAL
PROJECTS FUND FOR AVIATION PURPOSES REQUIRED IN CONNECTION THEREWITH OF
AIRPORTS AND AVIATION FACILITIES, EQUIPMENT AND RELATED PROJECTS.
§ 17. Paragraph (ii) of subdivision (b) of section 1115 of the tax
law, as amended by section 30 of part Y of chapter 63 of the laws of
2000, is amended to read as follows:
(ii) [Gas, electricity] ELECTRICITY, refrigeration and steam, and
[gas,] electric, refrigeration and steam service of whatever nature for
use or consumption directly and exclusively in research and development
in the experimental or laboratory sense shall be exempt from the tax
imposed under subdivision (b) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten of this
article. Such research and development shall not be deemed to include
the ordinary testing or inspection of materials or products for quality
control, efficiency surveys, management studies, consumer surveys,
advertising, promotions or research in connection with literary, histor-
ical or similar projects.
§ 18. Paragraph 1 of subdivision (c) of section 1115 of the tax law,
as amended by section 7 of part B of chapter 63 of the laws of 2000, is
amended to read as follows:
(1) [Fuel, gas, electricity] ELECTRICITY, refrigeration and steam, and
[gas,] electric, refrigeration and steam service of whatever nature for
use or consumption directly and exclusively in the production of tangi-
S. 3606 8
ble personal property, [gas,] electricity, refrigeration or steam, for
sale, by manufacturing, processing, assembling, generating, refining,
mining or extracting shall be exempt from the taxes imposed under subdi-
visions (a) and (b) of section eleven hundred five and the compensating
use tax imposed under section eleven hundred ten of this article.
§ 19. Subdivision (j) of section 1115 of the tax law, as amended by
section 41 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel, except
that the exemptions provided in [paragraphs nine and] PARAGRAPH forty-
two of subdivision (a) of this section shall apply to the tax required
to be prepaid pursuant to the provisions of section eleven hundred two
of this article and to the taxes imposed by sections eleven hundred five
and eleven hundred ten of this article with respect to sales and uses of
[kero-jet fuel,] CNG, hydrogen and E85, provided, however, the exemption
allowed for E85 shall be subject to the additional requirements provided
in section eleven hundred two of this article with respect to E85. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel but only if all of such
fuel is consumed other than on the public highways of this state. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel for use or consumption
either in the production for sale of tangible personal property by farm-
ing or in a commercial horse boarding operation, or in both but only if
all of such fuel is consumed other than on the public highways of this
state (except for the use of the public highways to reach adjacent farm-
lands or adjacent lands used in a commercial horse boarding operation,
or both).
§ 19-a. Subdivision (j) of section 1115 of the tax law, as amended by
section 41-a of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel[, except
that the exemption provided in paragraph nine of subdivision (a) of this
section shall apply to the tax required to be prepaid pursuant to the
provisions of section eleven hundred two of this article and to the
taxes imposed by sections eleven hundred five and eleven hundred ten of
this article with respect to sales and uses of kero-jet fuel]. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel but only if all of such
fuel is consumed other than on the public highways of this state. The
exemption provided in subdivision (c) of this section shall apply to
sales and uses of non-highway diesel motor fuel for use or consumption
either in the production for sale of tangible personal property by farm-
ing or in a commercial horse boarding operation, or in both but only if
all of such fuel is consumed other than on the public highways of this
state (except for the use of the public highways to reach adjacent farm-
lands or adjacent lands used in a commercial horse boarding operation,
or both).
S. 3606 9
§ 20. Subdivision (s) of section 1115 of the tax law, as added by
chapter 201 of the laws of 1995, is relettered subdivision (p).
§ 21. Subdivision (w) of section 1115 of the tax law, as added by
section 32 of part Y of chapter 63 of the laws of 2000, is amended to
read as follows:
(w) Receipts from the sale of [gas or] electricity or [gas or] elec-
tric service of whatever nature and consideration given or contracted to
be given for, or for the use of, [gas or] electricity or [gas or] elec-
tric service of whatever nature purchased for use or consumption direct-
ly and exclusively to provide [gas or] electric service of whatever
nature consisting of operating [a gas pipeline or gas distribution line
or] an electric transmission or distribution line [and ensuring the
necessary working pressure in an underground gas storage facility] shall
be exempt from sales and compensating use taxes imposed by this article.
Such exempt [gas or] electricity or [gas or] electric service of whatev-
er nature shall include, but shall not be limited to, such [gas or]
electricity or [gas or] electric service of whatever nature used or
consumed directly and exclusively to (1) [ensure necessary working pres-
sure in a gas pipeline used to transport, transmit or distribute gas,
(2) operate compressors used to transport, transmit or distribute gas
through such a gas pipeline or distribution line or used to ensure
necessary working pressure in such a storage facility, (3) operate heat-
ers to prevent gas in such a pipeline or distribution line from freez-
ing, (4) operate equipment which removes impurities and moisture from
gas in such a pipeline or distribution line, (5)] operate substations
and equipment related to electric transmission and distribution lines
such as transformers, capacitors, meters, switches, communication
devices and heating and cooling equipment, and [(6)] (2) ensure the
reliability of electricity or electric service transmitted or distrib-
uted through such lines, for example, by operating reserve capacity
machinery and equipment.
§ 22. Subdivision (k) of section 300 of the tax law, as amended by
section 17 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(k) "Commercial gallonage" means gallonage (1) which is non-highway
diesel motor fuel or residual petroleum product, (2) [which is included
in the full measure of the non-highway diesel motor fuel component or
the residual petroleum product component of the tax imposed under
section three hundred one-a of this article, (3)] which does not (and
will not) qualify (A) [for the utility credit or reimbursement provided
for in section three hundred one-d of this article, (B)] as "manufactur-
ing gallonage", as such term is defined in subdivision (m) of this
section, [(C)] OR (B) for the not-for-profit organization exemption
provided for in subdivision (h) of section three hundred one-b of this
article, [or (D) for the heating exemption provided for in paragraph two
of subdivision (d) of section three hundred one-b of this article or the
heating reimbursement provided for in paragraph two of subdivision (a)
of section three hundred one-c of this article,] and [(4)] (3) which
will not be used nor has been used in the fuel tank connecting with the
engine of a vessel. No gallonage shall qualify as "commercial gallonage"
where such gallonage is eligible for the [(i) utility credit or
reimbursement under such section three hundred one-d of this article,
(ii) "manufacturing exemption" under paragraph three of subdivision (f)
of section three hundred one-a of this article, (iii)] not-for-profit
organization exemption under subdivision (h) of section three hundred
one-b of this article[, or (iv) heating exemption provided for in para-
S. 3606 10
graph two of subdivision (d) of section three hundred one-b of this
article or the heating reimbursement provided for in paragraph two of
subdivision (a) of section three hundred one-c of this article]. The
commissioner shall require such documentary proof to substantiate the
classification of product as "commercial gallonage" as the commissioner
deems appropriate.
§ 23. Paragraph 1 of subdivision (f) of section 301-b of the tax law,
as amended by section 21 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
(1) Residual petroleum product and non-highway diesel motor fuel sold
to an electric corporation, [as described in subdivision (a) of section
three hundred one-d of this article,] AS DEFINED IN SUBDIVISION THIRTEEN
OF SECTION TWO OF THE PUBLIC SERVICE LAW, SUBJECT TO THE SUPERVISION OF
THE DEPARTMENT OF PUBLIC SERVICE, which is registered with the depart-
ment as a petroleum business tax direct pay permittee, and used by such
electric corporation to fuel generators for the purpose of manufacturing
or producing electricity where such electric corporation provides a copy
of a direct pay permit authorized and issued by the commissioner, to the
petroleum business making such sale. If so registered, such corporation
shall be a taxpayer under this article and (i) such electric corporation
shall file a return monthly and pay the applicable tax under this arti-
cle, after the application of allowable credits, on all such purchases
directly to the commissioner, (ii) such electric corporation shall be
subject to all of the provisions of this article relating to the respon-
sibilities and liabilities of taxpayers under this article with respect
to such residual petroleum product and non-highway diesel motor fuel.
§ 24. This act shall take effect immediately and shall apply to taxa-
ble years commencing on or after the first of January next succeeding
the date on which it shall have become a law; provided, however, that:
(a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of
section 301-b of the tax law made by section four of this act shall not
affect the repeal of such paragraphs and shall be deemed repealed there-
with;
(b) the amendments to the opening paragraph of section 301-c of the
tax law made by section six of this act shall be subject to the expira-
tion and reversion of such paragraph pursuant to section 19 of part W-1
of chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section six-a of this act shall take effect;
(c) the amendments to subdivisions (k) and (l) of section 301-c of the
tax law made by section eight of this act shall not affect the repeal of
such subdivisions and shall be deemed repealed therewith; and
(d) the amendments to subdivision (j) of section 1115 of the tax law
made by section nineteen of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 19 of part W-1 of
chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section nineteen-a of this act shall take effect.
