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SECTION 289-C
Refunds
Tax (TAX) CHAPTER 60, ARTICLE 12-A
§ 289-c. Refunds. 1. The tax imposed by this article though payable by
the distributor, shall be borne by the purchaser and when paid by the
distributor shall be deemed to have been so paid for the account of the
purchaser. No person shall sell, advertise, or offer for sale motor
fuel, separate from the tax herein imposed; and the price paid by the
purchaser for motor fuel on which the tax has been paid, if such price
be not less than the amount of the tax thereon, shall be presumed for
the purposes of this section to have included the tax.

1-a. (a) Any person selling motor fuel to an organization described in
paragraph one or two of subdivision (a) of section eleven hundred
sixteen of this chapter or a hospital included in the organizations
described in paragraph four of such subdivision for its own use or
consumption or selling kero-jet fuel to an airline for use in its
airplanes may exclude the amount of the tax or taxes imposed by this
article from the selling price thereof.

(b) (i) Any person registered as a distributor of motor fuel selling
aviation gasoline to a fixed base operator registered under this article
as a "retail seller of aviation gasoline" may exclude the amount of the
tax or taxes imposed by this article from the selling price thereof
where such aviation gasoline is delivered to the fixed base operator's
premises and placed in a storage facility used exclusively for the
purpose of fueling airplanes. The commissioner may register as a "retail
seller of aviation gasoline" a fixed base operator who makes no sales of
aviation gasoline other than retail sales not in bulk delivered directly
into the fuel tank of an airplane and who makes no sales of motor fuel
other than the foregoing described retail sales of aviation gasoline
delivered directly into the fuel tank of airplanes (provided, in no
event, shall kero-jet fuel be construed to constitute motor fuel). Such
registration shall apply only to the wholesale purchase of only aviation
gasoline by such "retail seller of aviation gasoline" and the retail
sale by such person of aviation gasoline not in bulk for delivery
directly into the fuel tank of an airplane for use in the operation
thereof. In no event shall the registration as a "retail seller of
aviation gasoline" be deemed to be an authorization to import, or cause
to be imported, motor fuel including aviation gasoline, into this state.
All the provisions of section two hundred eighty-three-a (except
subdivision one) of this article shall be applicable to the registration
of "retail sellers of aviation gasoline" with the same force and effect
as if the language of such section had been incorporated in full herein
and had expressly referred to the registration of "retail sellers of
aviation gasoline", with such modification as may be necessary in order
to adapt the language so as to apply to the registration of applicants
for and persons registered as "retail sellers of aviation gasoline".
Provided, however, that if the commissioner is satisfied that certain
requirements of such foregoing provisions with respect to registration
are not necessary in order to protect tax revenues, the commissioner may
waive, limit or modify such requirements with respect to the
registration of "retail sellers of aviation gasoline". The department,
where applicable, shall coordinate the registration process with respect
to a fixed base operator applying for registration as a "retail seller
of aviation gasoline" and as a distributor of kero-jet fuel only with
the purpose of eliminating any duplicative information or procedures
required of the applicant. Every person registered as a "retail seller
of aviation gasoline" shall keep complete and accurate records of
purchases and sales of aviation gasoline (including individual invoices
identifying each purchase or sale of aviation gasoline) to and from such
"retail seller of aviation gasoline". The commissioner shall, if it is
determined to be appropriate, establish a requirement that a certificate
be given by a "retail seller of aviation gasoline" prior to the sale of
aviation gasoline pursuant to this paragraph.

(ii) Any person registered as a distributor of motor fuel and also
registered as a "retail seller of aviation gasoline" may exclude the
amount of the tax or taxes imposed by this article from the selling
price thereof on such retail sale of aviation gasoline.

(c) (i) Any person making a sale of motor fuel under the circumstances
described in paragraph (a), or subparagraph (i) of paragraph (b) of this
subdivision or making a sale of Diesel motor fuel under the
circumstances described in subdivision four of section two hundred
eighty-two-a of this article whereby the tax or taxes imposed by this
article have not been passed through to the purchaser, shall be allowed
a refund or credit of the tax or taxes imposed by this article in the
amount of such tax or taxes paid by such person on such motor fuel or
Diesel motor fuel being sold or included in the price paid by such
person for such fuel. Claims for refunds or credits shall be presented,
and refunds or credits shall be made, only as authorized by the
commissioner under such rules and regulations as he may prescribe.

(ii) Any airline registered as a distributor of motor fuel who imports
aviation gasoline into this state for use in its airplanes and a
distributor described in subparagraph (ii) of paragraph (b) of this
subdivision shall be allowed a refund or credit of the tax or taxes
imposed by this article in the amount of such tax or taxes paid by such
person on such aviation gasoline so imported and used exclusively in the
operation of its airplanes. The refund or credit shall accrue at the
time the aviation gasoline is delivered and stored as prescribed in
subparagraph (i) of paragraph (b) of this subdivision. Claims for
refunds or credits shall be presented and refunds or credits shall be
made only as authorized by the commissioner, including documentary proof
required to substantiate refund claims.

* (d)(i) Any person may exclude the amount of the tax or taxes imposed
by this article on E85 from the selling price thereof where E85 is
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
vehicle for use in the operation of such vehicle. Any person making a
sale of E85 under the circumstances described herein, whereby the tax or
taxes otherwise imposed by this article have not been passed through to
the purchaser, shall be allowed a refund or credit of the taxes imposed
by this article in the amount of such tax or taxes paid by such person
on such E85 being sold or included in the price paid by such person for
such fuel. Claims for refunds or credits shall be presented, and refunds
or credits shall be made, only as authorized by the commissioner under
such rules and regulations as the commissioner may prescribe.

(ii) Any person may exclude twenty percent of the amount of the tax or
taxes imposed by this article from the selling price with respect to any
sale of B20. Any person making a sale of B20 upon which such person does
not pass on more than eighty percent of the taxes otherwise imposed by
this article, where such person has purchased such B20 with the entire
amount of the taxes imposed by this article included in such person's
purchase price, shall be entitled to a refund or credit equal to the
amount of the tax or taxes paid under this article on such B20 in excess
of eighty percent of the tax or taxes imposed by this article on diesel
motor fuel. Claims for refunds or credits shall be presented, and
refunds or credits shall be made, only as authorized by the commissioner
under such rules and regulations as the commissioner may prescribe.

(iii) Any person may exclude the amount of the tax or taxes imposed by
this article on CNG or hydrogen from the selling price thereof. Any
person making a sale of CNG or hydrogen, whereby the tax or taxes
otherwise imposed by this article have not been passed through to the
purchaser, shall be allowed a refund or credit of any taxes imposed by
this article in the amount of such tax or taxes paid by such person on
such CNG or hydrogen being sold or included in the price paid by such
person for such CNG or hydrogen. Claims for refunds or credits shall be
presented, and refunds or credits shall be made, only as authorized by
the commissioner under such rules and regulations as the commissioner
may prescribe.

* NB Repealed September 1, 2026

2. However, the intention of this article is to place the ultimate
burden resulting from such tax, so far as possible, on persons who use
the public highways of the state for operating motor vehicles thereon,
or who use the waterways of the state including any other waterways
bordering on the state for operating pleasure or recreational motor
boats thereon, and the following refunds are provided to that end,
subject to the provisions of subdivision five of this section.

3. (a) Except as otherwise provided in paragraph (b) of this section,
any person who shall buy any motor fuel or diesel motor fuel, on which
the tax imposed by this article shall have been paid, and shall consume
the same in any manner except in the operation of a motor vehicle upon
or over the public highways of this state, or in the operation of a
pleasure or recreational motor boat upon or over the waterways of the
state including waterways bordering on the state, shall be reimbursed
the amount of such tax in the manner and subject to the conditions
herein provided except that there shall be no reimbursement of tax paid
on motor fuel or diesel motor fuel taken out of this state in a fuel
tank connected with the engine of a motor vehicle and consumed outside
of this state.

(b) Any omnibus carrier which shall buy any motor fuel on which the
aggregate tax imposed by section two hundred eighty-four and section two
hundred eighty-four-a of this chapter, or any diesel motor fuel on which
the aggregate tax imposed by section two hundred eighty-two-a and
section two hundred eighty-two-b of this chapter, shall have been paid,
shall be reimbursed, in the case of such motor fuel, the amount paid
pursuant to such sections two hundred eighty-four and two hundred
eighty-four-a in excess of four cents per gallon, and in the case of
diesel motor fuel, the amount paid pursuant to such sections two hundred
eighty-two-a and two hundred eighty-two-b in excess of six cents per
gallon, provided such motor fuel or diesel motor fuel has been consumed
by such carrier in the operation of an omnibus in this state. Any
taxicab licensee, as defined by subdivision ten of section two hundred
eighty-two of this chapter, who or which shall buy any motor fuel on
which the aggregate tax imposed by section two hundred eighty-four and
section two hundred eighty-four-a of this chapter or any diesel motor
fuel on which the aggregate tax imposed by section two hundred
eighty-two-a and section two hundred eighty-two-b of this chapter, shall
have been paid, shall be reimbursed, in the case of such motor fuel, the
amount paid pursuant to such sections two hundred eighty-four and two
hundred eighty-four-a in excess of four cents per gallon, and in the
case of diesel motor fuel, the amount paid pursuant to such sections two
hundred eighty-two-a and two hundred eighty-two-b in excess of six cents
per gallon, provided such motor fuel or diesel fuel has been consumed by
such licensee in the operation of a taxicab in this state.

(c) All claims for reimbursement shall be in such form and contain
such information as the commissioner shall prescribe and shall be filed
within three years from (i) the date of the purchase, in the case of the
purchaser; or (ii) the date of the sale, in the case of the seller, of
the motor fuel so subject to reimbursement. Every such claim shall
include a certificate by or on behalf of the party presenting the same
to the effect that it is just, true and correct, that no part thereof
has been paid, except as stated therein, and that the balance therein
stated is actually due and owing. The claimant shall satisfy the
department that the claimant has borne the tax and that the motor fuel
has been consumed by the claimant in a manner other than the operation
of a motor vehicle upon or over the public highways of this state, the
operation of a pleasure or recreational motorboat upon or over the
waterways of the state including waterways bordering on the state or, in
the case of an omnibus carrier, taxicab licensee, nonpublic school
operator or volunteer ambulance service, that the claimant has borne the
tax and that the amount claimed is the amount of such tax reimbursable
under paragraph (b), (d), (e) or (f) of this subdivision. The department
may require such further information or proof as it shall deem necessary
for the administration of such claim. Claims for reimbursement approved
by the department shall be paid from revenues collected under this
article and deposited to the credit of the comptroller as hereinafter
provided; but no such claims shall be paid unless the department is
satisfied that the amount of the tax for which the reimbursement is
claimed has actually been collected by the state. The amount of any
erroneous or excessive payment to a claimant for reimbursement may be
determined by the department and may be recovered from such claimant in
the same manner as a tax imposed by this article, provided, however,
that any such determination shall be made within three years after the
date of such erroneous or excessive payment.

(d) Any omnibus carrier which shall buy motor fuel on which the
aggregate tax imposed by section two hundred eighty-four, section two
hundred eighty-four-a and section two hundred eighty-four-c of this
chapter or any diesel motor fuel on which the aggregate tax imposed by
section two hundred eighty-two-a, section two hundred eighty-two-b and
section two hundred eighty-two-c of this chapter shall have been paid,
shall be reimbursed the amount paid provided such motor fuel or diesel
motor fuel has been consumed by such carrier in the operation of an
omnibus in local transit service in this state pursuant to a certificate
of convenience and necessity issued by the commissioner of
transportation of this state or by the interstate commerce commission of
the United States or pursuant to a contract, franchise or consent
between such carrier and a city having a population of more than one
million inhabitants, or any agency of such city.

(e) Any nonpublic school operator which shall buy motor fuel on which
the aggregate tax imposed by section two hundred eighty-four, section
two hundred eighty-four-a and section two hundred eighty-four-c of this
chapter or any diesel motor fuel on which the aggregate tax imposed by
section two hundred eighty-two-a, section two hundred eighty-two-b and
section two hundred eighty-two-c of this chapter shall have been paid,
shall be reimbursed the amount paid provided such motor fuel or diesel
motor fuel has been consumed by such nonpublic school operator
exclusively in educational related activities.

(f) Any voluntary ambulance service, as defined in section thirty
hundred one of the public health law, which shall buy motor fuel on
which the tax or taxes imposed by this article shall have been paid
shall be reimbursed the amount of such tax in the manner and subject to
the conditions herein set forth, provided such motor fuel has been
consumed by such volunteer ambulance service vehicle in the course of
operating within the state.

(g) An organization described in paragraph one or two of subdivision
(a) of section eleven hundred sixteen of this chapter or a hospital
included in the organizations described in paragraph four of such
subdivision, or a fire company or fire department, as defined in section
three of the volunteer firefighters' benefit law, or a volunteer rescue
squad supported in whole or in part by tax money where any such entity
is the purchaser, user or consumer of motor fuel or diesel motor fuel in
a vehicle owned and operated by it and used exclusively for its
purposes, or an airline where it has purchased kero-jet fuel for use in
its airplanes shall be reimbursed the amount of the taxes on motor fuel
and diesel motor fuel imposed by or pursuant to the authority of this
article included in the price paid for such motor fuel or diesel motor
fuel.

(h) Notwithstanding any provision of the law to the contrary, tax paid
pursuant to this article in respect to motor fuel or diesel motor fuel
purchased by a government entity and paid for by such government entity
with a credit card shall be reimbursed or credited to the issuer of the
credit card used for such purchase or the fuel distributor designated in
accordance with and subject to the provisions of sections eleven hundred
thirty-eight, eleven hundred thirty-nine, eleven hundred forty-two, and
eleven hundred forty-five of this chapter concerning such credit card
issuers, fuel distributors and government entities. Such provisions
shall apply with respect to the administration of and procedure with
respect to the taxes imposed under this article in the same manner and
with the same force and effect as if the language of such provisions had
been incorporated in full into this article and had expressly referred
to the tax under this article, with such modifications as may be
necessary in order to adapt the language of such provisions to the taxes
imposed by this article, except to the extent that any such provision is
not relevant to this article.

5. If the provisions of this section providing for reimbursement of
the amount of the tax paid be held unconstitutional by a court of
competent jurisdiction, the other constitutional provisions of this
article nevertheless shall stand, it being the express intention of the
legislature that even though such provision for reimbursement be held
unconstitutional the tax provided for by this article shall be imposed,
collected and distributed as provided in this article, regardless in
that event of the manner in which the motor fuel is consumed.

6. Moneys paid in error under this article may be refunded. Where
motor fuel, upon which the tax imposed by this article has been paid, is
sold, under such circumstances that, if the tax had not been paid, the
sale would not have been taxable under this article, the tax may be
refunded. Refunds shall be made only as authorized by the commissioner
under such rules and regulations as the commissioner may prescribe
provided an application therefor is filed with the commissioner within
three years from the time the erroneous payment was made, or tax paid
motor fuel was so sold. Refunds authorized by the commissioner shall be
paid from revenues collected under this article and deposited to the
credit of the comptroller as hereinafter provided.

7. If an agreement under the provisions of section two hundred
eighty-eight (extending the period for determination of tax imposed by
this article) is made within the three-year period for the filing of an
application for refund under subdivision six of this section or, in the
case of a claim for reimbursement under subdivision three of this
section, if such agreement is made within three years from the date of
purchase or sale (as the case may be) of the motor fuel, the period for
filing an application for refund or a claim for reimbursement shall not
expire prior to six months after the expiration of the period within
which determination may be made pursuant to the agreement or any
extension thereof.

8. With respect to motor fuel imported, manufactured or sold or
purchased in this state, and with respect to the sale or use of Diesel
motor fuel, a refund or credit shall be allowed a distributor or a
purchaser of the tax required to be paid pursuant to this article upon
such motor fuel or Diesel motor fuel in the amount of such tax paid by
or included in the price paid by a distributor or such purchaser to the
seller thereof if such fuel was exported from this state for sale or use
outside this state, such distributor or such purchaser, as the case may
be, exporting such fuel is duly registered with or licensed by the
taxing authorities of the state to which such fuel is exported as a
distributor or a dealer in the fuel being so exported, and in connection
with such exportation such fuel was immediately shipped to an identified
facility in the state to which such fuel is exported, and the applicant
complies with all requirements and rules and regulations of the
commissioner, including evidentiary requirements, relating thereto; and
provided further that upon receipt of a claim for refund in processible
form, interest shall be allowed and paid at the overpayment rate set by
the commissioner pursuant to subdivision twenty-sixth of section one
hundred seventy-one of this chapter from the due date of the return to
the date immediately preceding the date of the refund check except no
such interest shall be allowed or paid if the refund check is mailed
within thirty days of such receipt and except no interest shall be
allowed or paid if the amount thereof would be less than one dollar. For
the purpose of this article, "export" from this state shall in no event
be construed to include motor fuel or diesel motor fuel taken out of
this state in the fuel tank connected with the engine of a motor vehicle
or any conveyance and consumed in the operation thereof outside of this
state.

9. With respect to any organization described in paragraph four of
subdivision (a) of section eleven hundred sixteen of this chapter which
is eligible pursuant to this section for reimbursement of the tax
required to be paid pursuant to this article, upon receipt of a claim
for reimbursement in processible form, interest shall be allowed and
paid at the overpayment rate set by the commissioner of taxation and
finance pursuant to subdivision twenty-sixth of section one hundred
seventy-one of this chapter from the date of the application for
reimbursement to the date immediately preceding the date of the
reimbursement check except no such interest shall be allowed or paid if
the reimbursement check is mailed within forty-five days of such receipt
and except no interest shall be allowed or paid if the amount thereof
would be less than one dollar. Provided, however, the department shall
process applications for reimbursement as expeditiously as possible.