NY State Senate Bill 2015-S694A

Senate Bill S694A

2015-2016 Legislative Session

Relates to computing sales and compensating use tax retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in New York city

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 13, 2016	print number 694a
Apr 13, 2016	amend (t) and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S694 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1111, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6852
2013-2014: S663
2017-2018: S1278

2015-S694 - Summary

Relates to computing sales and compensating use tax in regard to retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in cities of one million or more.

2015-S694 - Sponsor Memo

                                 BILL NUMBER:  S694

 TITLE OF BILL :  An act to amend the tax law, in relation to
computing sales and compensating use tax retail sales of motor fuel
and diesel motor fuel at a rate of cents per gallon in cities of one
million or more

 PURPOSE OR GENERAL IDEA OF THE BILL :

The purpose of this legislation is to require the city of New York to
compute its sales and compensating use tax for gasoline and diesel
fuels at a flat, cents per gallon, rate rather than the current
percentage per gallon rate.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends paragraphs 3, 4 and 6 of subdivision (m)
of section 1111 of the tax law, as amended by section 1 of part M-1 of
chapter 109 of the laws of 2006, to remove prior discretion afforded
to the legislative body of the city of New York to choose to compute
its sales and compensating use taxes at a flat cents per gallon rate.
This will result in the city of New York being required to compute its
sales and compensating use tax for gasoline and diesel fuels at flat,
cents per gallon, rate rather than the current percentage per gallon
rate.

Section 2 of the bill states that a municipality shall set the rate of
tax as provided in paragraph (3) of subdivision (m) of section 1111 of
the tax law, beginning June 1, 2015, by local law, ordinance or
resolution, and such municipality shall mail, by certified or
registered mail, a certified copy of such local law, ordinance or
resolution to the commission of taxation and finance at his or her
office in Albany on or before May 21, 2015.

Section 3 sets forth an immediate effective date.

 JUSTIFICATION :

Pursuant to New York State tax law § 1111(m) (1), consumers pay a
sales and compensating use tax of 8 cents per gallon for retail sales
of motor fuel and diesel motor fuel. This flat rate remains constant
regardless of the fluctuations in the base price of a gallon of motor
or diesel motor fuel.

However, in the city of New York, in addition to the state sales and
compensating use tax on gas, consumers are also forced to pay a city
sales and compensating use tax based on a percentage of the sale price
of a gallon rather than a flat/fixed cents per gallon tax. The current
city sales and compensating use tax on the sale of motor and diesel
motor fuel is 4.00% per gallon. The city has continued this policy
despite being given authority by the state to go to a flat rate policy
in 2006.

Given the rapid and tremendous increase in the cost of oil in the past
few months, the application of a percentage based city sales and
compensating use tax has resulted in the city of New York benefitting
from an undeserved windfall in tax revenue on the backs of consumers
who must purchase gas within city lines. Not only are consumers being
gouged by the base price of oil but they are also being gouged by the
city of New York in its percentage rate collection of sales and
compensating use tax.

This legislation will amend the New York Tax Law and require the city
of New York to impose flat cents per gallon sales and compensating use
tax on the sale of motor and diesel motor fuel.

 LEGISLATIVE HISTORY :

2011-12: S.6852

 FISCAL IMPLICATIONS :

Yet to be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S694 - Bill Text download pdf

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

                                   694

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  AVELLA -- 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 computing sales and  compen-
  sating  use  tax retail sales of motor fuel and diesel motor fuel at a
  rate of cents per gallon in cities of one million or more

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

  Section  1.   Paragraphs 3, 4 and 6 of subdivision (m) of section 1111
of the tax law, as amended by section 1 of part M-1 of  chapter  109  of
the laws of 2006, are amended to read as follows:
  (3)  [Paragraph  one  of  this subdivision shall not apply to the] THE
sales and compensating use taxes imposed by subdivision (a)  of  section
eleven  hundred seven of this article in regard to retail sales of motor
fuel and diesel motor fuel[. However, the legislative body of a city  in
which  the  taxes  imposed  by  such section eleven hundred seven are in
effect, by local law, ordinance,  or  resolution  in  exactly  the  form
prepared  by  the  commissioner, may elect that such taxes, in regard to
retail sales of motor fuel and diesel motor fuel,] shall be computed, as
determined by the commissioner, at a rate of cents per  gallon,  rounded
to the nearest cent, equal to two or three dollars, as determined by the
[municipality]  CITY  IN  WHICH  SUCH  TAX IS IMPOSED, multiplied by the
percentage rate of such taxes within the municipality.
  (4) [Paragraph] EXCEPT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI-
SION, PARAGRAPH one of this subdivision shall not apply to the sales and
compensating use taxes imposed by a local law, ordinance  or  resolution
of  a municipality pursuant to the authority of subpart B of part one of
article twenty-nine of this chapter, in regard to retail sales of  motor
fuel and diesel motor fuel. The legislative body of such a municipality,
by  local  law,  ordinance or resolution in exactly the form prepared by

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

                                                           LBD00446-01-5

S. 694                              2

the commissioner, may elect that its sales and compensating  use  taxes,
in  regard to the retail sale of motor fuel and diesel motor fuel, shall
be computed, as determined by the commissioner, at a rate of  cents  per
gallon,  rounded  to the nearest cent, equal to two or three dollars, as
determined by the municipality, multiplied by  the  percentage  rate  of
such taxes within the municipality.
  (6)  A  local  law,  ordinance  or  resolution SETTING THE RATE OF TAX
PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION OR  making  or  revoking
the election made pursuant to paragraph [three or] four of this subdivi-
sion  must  go into effect in accordance with the provisions of subdivi-
sions (d) and (e) of section twelve hundred ten of this chapter.
  S 2. A municipality shall set the rate of tax as provided by paragraph
(3) of subdivision (m) of section 1111 of the tax law, beginning June 1,
2015, by local law, ordinance or resolution, and such municipality shall
mail, by certified or registered 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 on or before May 21, 2015.
  S 3. This act shall take effect immediately.

2015-S694A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1111, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6852
2013-2014: S663
2017-2018: S1278

2015-S694A (ACTIVE) - Summary

Relates to computing sales and compensating use tax in regard to retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in cities of one million or more.

2015-S694A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S694A

 PURPOSE OR GENERAL IDEA OF THE BILL :

The purpose of this legislation is to require the city of New York to
compute its sales and compensating use tax for gasoline and diesel
fuels at a flat, cents per gallon, rate rather than the current
percentage per gallon rate.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends paragraphs 3, 4 and 6 of subdivision (m)
of section 1111 of the tax law, as amended by section 1 of part M-1 of
chapter 109 of the laws of 2006, to remove prior discretion afforded
to the legislative body of the city of New York to choose to compute
its sales and compensating use taxes at a flat cents per gallon rate.
This will result in the city of New York being required to compute its
sales and compensating use tax for gasoline and diesel fuels at flat,
cents per gallon, rate rather than the current percentage per gallon
rate.

Section 2 of the bill states that a municipality shall set the rate of
tax as provided in paragraph (3) of subdivision (m) of section 1111 of
the tax law, beginning June 1, 2017, by local law, ordinance or
resolution, and such municipality shall mail, by certified or
registered mail, a certified copy of such local law, ordinance or

resolution to the commission of taxation and finance at his or her
office in Albany on or before May 21, 2017.

Section 3 sets forth an immediate effective date.

 JUSTIFICATION :

Pursuant to New York State tax law § 1111(m) (1), consumers pay a
sales and compensating use tax of 8 cents per gallon for retail sales
of motor fuel and diesel motor fuel. This flat rate remains constant
regardless of the fluctuations in the base price of a gallon of motor
or diesel motor fuel.

However, in the city of New York, in addition to the state sales and
compensating use tax on gas, consumers are also forced to pay a city
sales and compensating use tax based on a percentage of the sale price
of a gallon rather than a flat/fixed cents per gallon tax. The current
city sales and compensating use tax on the sale of motor and diesel
motor fuel is 4.00% per gallon. The city has continued this policy
despite being given authority by the state to go to a flat rate policy
in 2006.

Given the rapid and tremendous increase in the cost of oil in the past
few months, the application of a percentage based city sales and
compensating use tax has resulted in the city of New York benefitting
from an undeserved windfall in tax revenue on the backs of consumers
who must purchase gas within city lines. Not only are consumers being
gouged by the base price of oil but they are also being gouged by the
city of New York in its percentage rate collection of sales and
compensating use tax.

This legislation will amend the New York Tax Law and require the city
of New York to impose flat cents per gallon sales and compensating use
tax on the sale of motor and diesel motor fuel.

 LEGISLATIVE HISTORY :

2013-14: S.663
2011-12: S.6852

 FISCAL IMPLICATIONS :

Yet to be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S694A (ACTIVE) - Bill Text download pdf

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

                                 694--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to computing sales and compen-
  sating use tax on retail sales of motor fuel and diesel motor fuel  at
  a rate of cents per gallon in cities of one million or more

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

  Section 1.  Paragraphs 3, 4 and 6 of subdivision (m) of  section  1111
of  the  tax  law, as amended by section 1 of part M-1 of chapter 109 of
the laws of 2006, are amended to read as follows:
  (3) [Paragraph one of this subdivision shall not  apply  to  the]  THE
sales  and  compensating use taxes imposed by subdivision (a) of section
eleven hundred seven of this article in regard to retail sales of  motor
fuel  and diesel motor fuel[. However, the legislative body of a city in
which the taxes imposed by such section  eleven  hundred  seven  are  in
effect,  by  local  law,  ordinance,  or  resolution in exactly the form
prepared by the commissioner, may elect that such taxes,  in  regard  to
retail sales of motor fuel and diesel motor fuel,] shall be computed, as
determined  by  the commissioner, at a rate of cents per gallon, rounded
to the nearest cent, equal to two or three dollars, as determined by the
[municipality] CITY IN WHICH SUCH TAX  IS  IMPOSED,  multiplied  by  the
percentage rate of such taxes within the municipality.
  (4) [Paragraph] EXCEPT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI-
SION, PARAGRAPH one of this subdivision shall not apply to the sales and
compensating  use  taxes imposed by a local law, ordinance or resolution
of a municipality pursuant to the authority of subpart B of part one  of

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

                                                           LBD00446-02-6

S. 694--A                           2

article  twenty-nine of this chapter, in regard to retail sales of motor
fuel and diesel motor fuel. The legislative body of such a municipality,
by local law, ordinance or resolution in exactly the  form  prepared  by
the  commissioner,  may elect that its sales and compensating use taxes,
in regard to the retail sale of motor fuel and diesel motor fuel,  shall
be  computed,  as determined by the commissioner, at a rate of cents per
gallon, rounded to the nearest cent, equal to two or three  dollars,  as
determined  by  the  municipality,  multiplied by the percentage rate of
such taxes within the municipality.
  (6) A local law, ordinance or  resolution  SETTING  THE  RATE  OF  TAX
PURSUANT  TO  PARAGRAPH  THREE OF THIS SUBDIVISION OR making or revoking
the election made pursuant to paragraph [three or] four of this subdivi-
sion must go into effect in accordance with the provisions  of  subdivi-
sions (d) and (e) of section twelve hundred ten of this chapter.
  S 2. A municipality shall set the rate of tax as provided by paragraph
(3) of subdivision (m) of section 1111 of the tax law, beginning June 1,
2017, by local law, ordinance or resolution, and such municipality shall
mail,  by  certified  or registered 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 on or before May 21, 2017.
  S 3. This act shall take effect immediately.

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