Enacts the county motor fuel tax pilot program; relates to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk county and Nassau county.
TITLE OF BILL: An act to amend the tax law, in relation to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk county and Nassau county; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
Computes sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk and Nassau counties.
SUMMARY OF SPECIFIC PROVISIONS:
Section one creates the name of the "County motor fuel tax pilot program." Section 2 amends subdivision (m) of section 1111 by adding a new paragraph 8 to require the commissioner of Tax and Finance to quarterly compute the sales tax rate in cents per gallon as determined by the cost of fuel in Nassau and Suffolk counties.
Section 3 amends subdivision (e) of section 1111 of the tax law by adding new subparagraph (iii) to require the sales and compensating use taxes imposed by subpart b of part one of article twenty-in shall be fully prepaid.
This bill will not increase the sales tax on motor fuel. It protects against county governments losing motor fuel sales tax revenue due to fraud or error by converting in these counties the local sales tax rate to a cents per gallon rate and requiring prepayment of these taxes.
By requiring all sales tax on motor fuel be prepaid, this legislation will ensure that the full county portion of the sales tax is collected by the distributor from the retailer up front, thereby protecting the counties from some retailers who are not currently paying the appropriate amount in local sales tax. As a result, it is anticipated that this legislation will increase sales tax revenue to these county governments.
Certain unscrupulous gasoline retailers that take advantage of this differential in collections and underpaying local sales taxes are placing law-abiding and fully-compliant retailers at a competitive disadvantage. Currently, the state requires 100% of the state's portion of the sales tax be paid by retailers to distributors and then remitted by distributor to the state. By requiring that the full state AND local sales tax be collected up front by distributors, this bill will ensure a fairer retail gas market while increasing revenue to these counties.
Further, the requirement to fully prepay all sales taxes will provide administrative relief to motor fuel retailers who currently need to calculate daily reconciliations and file sales taxes owed on a quarterly basis.
PRIOR LEGISLATIVE HISTORY:
None to the state. Increased revenue for county governments.
This act shall take effect immediately and shall expire and be deemed repealed June 1, 2016.
STATE OF NEW YORK ________________________________________________________________________ 7251 IN SENATE May 7, 2014 ___________Introduced by Sen. BOYLE -- 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 on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk county and Nassau county; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "County motor fuel tax pilot program". S 2. Subdivision (m) of section 1111 of the tax law is amended by adding a new paragraph 8 to read as follows: (8) THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF THIS CHAPTER IN REGARD TO RETAIL SALES OF MOTOR FUEL AND DIESEL MOTOR FUEL, IN THE COUNTIES OF SUFFOLK AND NASSAU, SHALL BE COMPUTED, AS DETERMINED QUARTERLY BY THE COMMISSIONER, AT A RATE OF CENTS PER GALLON, ROUNDED TO THE NEAREST CENT, AS DETERMINED BY THE COUNTIES RESPECTIVELY, MULTIPLIED BY THE COST OF THE FUEL. S 3. Paragraph 2 of subdivision (e) of section 1111 of the tax law is amended by adding a new subparagraph (iii) to read as follows: (III) WHERE MOTOR FUEL IS IMPORTED, MANUFACTURED OR SOLD IN, OR DIESEL MOTOR FUEL IS SOLD OR USED IN THE COUNTY OF SUFFOLK OR THE COUNTY OF NASSAU, THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF THIS CHAPTER AS COMPUTED PURSUANT TO SUBDIVISION (M) OF THIS SECTION SHALL BE PREPAID PURSUANT TO SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE ON EACH GALLON OF FUEL. S 4. This act shall take effect immediately and shall expire and be deemed repealed June 1, 2016.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13900-03-4