S T A T E   O F   N E W   Y O R K
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                                  1445

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 12, 2015
                               ___________

Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to eliminating the  residential
  restriction for heating exemptions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (d) 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:
  (d) Sales to consumers for heating purposes.  [(1)  Total  residential
heating]  HEATING  exemption.  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 residual petroleum product sold by
a  petroleum business registered under this article as a residual petro-
leum 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 vehi-
cle 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

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07419-01-5

S. 1445                             2

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.]
  S 2. Subdivision (a) of section 301-c of the tax law,  as  amended  by
section  23  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  (a) Non-highway Diesel motor fuel  used  for  heating  purposes.  [(1)
Total  residential  heating]  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  pursu-
ant  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.  Provided,
however,  that  the  commissioner  is  authorized, in the event that the
commissioner determines that it would not threaten the integrity of  the
administration  and  enforcement  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
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.]
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.