Bill S5982-2013

Phases out the petroleum tax

Phases out the petroleum tax in four year increments.

Details

Actions

  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Nov 13, 2013: REFERRED TO RULES

Memo

BILL NUMBER:S5982

TITLE OF BILL: An act to amend the tax law, in relation to the phase out of the petroleum business tax

PURPOSE OF THE BILL:

To phase out the petroleum business tax ( PBT) on motor fuel over four years.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1 through § 3- Amends subdivision (b), paragraph 1 of subdivision (c) and the opening paragraph of paragraph 2 of subdivision (c) of 301-a of the Tax Law to phase out the PBT on motor fuel 25% each year until 2018 when the PBT will no longer be levied.

§ 4- Effective date.

JUSTIFICATION:

Current state taxes on a gallon of gasoline include the petroleum business tax (18.6 cents per gallon, adjusted annually), the motor fuel excise tax (8.0 cents) and the state sales tax (capped at 8.0 cents), as well as a petroleum testing fee (0.5 cents). These taxes total approximately 35 cents per gallon for gasoline, while the total tax on highway diesel motor fuel is a few cents lower. Added to that is the local sales tax, which varies by locality.

This legislation would phase out the petroleum business tax (PBT) on all motor fuel sales over the next four years, to allow for a gradual cutting in half of the overall state tax levy on gasoline and diesel fuel. This would lower total state taxes on a gallon of gasoline or diesel fuel to 16.05 cents and move New York State out of the top spot for state gasoline taxes, and even out of the top ten states.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

An estimated reduction in state revenue of $550,000 for the 2015 tax year, $1.1 million for the 2016 tax year, $1.65 million for the 2017 tax year, and $2.2 million for tax year 2018 and thereafter.

EFFECTIVE DATE:

This act shall take effect on the sixtieth day after it shall have become a law; provided that the Commissioner of Taxation and Finance is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date on or before such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 5982 2013-2014 Regular Sessions IN SENATE November 13, 2013 ___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to the phase out of the petro- leum business tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (b) of section 301-a of the tax law is amended by adding a new paragraph 3 to read as follows: (3) COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF SEVENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSU- ANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF FIFTY PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF TWENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO TAX SHALL BE IMPOSED PURSUANT TO THIS SUBDIVISION. S 2. Paragraph 1 of subdivision (c) of section 301-a of the tax law is amended by adding a new subparagraph (C) to read as follows: (C) COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF SEVENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSU- ANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF FIFTY PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE MULTIPLIED BY A RATE OF TWENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO TAX SHALL BE IMPOSED PURSUANT TO THIS SUBDIVISION.
S 3. The opening paragraph of paragraph 2 of subdivision (c) of section 301-a of the tax law is designated subparagraph (A) and a new subparagraph (B) is added to read as follows: (B) COMMENCING ON JANUARY FIRST, TWO THOUSAND FIFTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE MULTIPLIED BY A RATE OF SEVENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SIXTEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE MULTIPLIED BY A RATE OF FIFTY PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND SEVEN- TEEN, THE MOTOR FUEL COMPONENT CALCULATED PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE MULTIPLIED BY A RATE OF TWENTY-FIVE PERCENT. COMMENCING ON JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO TAX SHALL BE IMPOSED PURSUANT TO THIS SUBDIVISION. S 4. This act shall take effect on the sixtieth day after it shall have become a law; provided that the commissioner of taxation and finance is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date on or before such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus