NY State Senate Bill 2015-S4410A

Senate Bill S4410A

2015-2016 Legislative Session

Relates to eliminating state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizing localities to eliminate such taxes at the local level; repealer

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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
Jan 15, 2016	print number 4410a
Jan 15, 2016	amend and recommit to energy and telecommunications
Jan 06, 2016	referred to energy and telecommunications
Mar 19, 2015	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2015-S4410 - Details

See Assembly Version of this Bill:: A5177
Current Committee:: Senate Energy And Telecommunications
Law Section:: Tax Law
Laws Affected:: Rpld §§282-b, 282-c, 284-a & 284-c, amd Tax L, generally; amd §376, Pub Auth L; amd §10-c, Hway L

2015-S4410 - Summary

Relates to eliminating state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizing localities to eliminate such taxes at the local level; reduces the tax rate from four cents per gallon to two cents per gallon; makes technical changes.

2015-S4410 - Sponsor Memo

                                BILL NUMBER:S4410

TITLE OF BILL:  An act to amend the tax law, in relation to
eliminating state sales and compensating use taxes on motor fuels and
diesel motor fuels and authorizing localities to eliminate such taxes
at the local level; in relation to reducing the tax rate from four
cents per gallon to two cents per gallon, and to amend the public
authorities law, the highway law and the tax law, in relation to
making technical changes; and to repeal certain sections of the tax
law relating thereto

PURPOSE OR GENERAL IDEA OF BILL:

This bill eliminates the state sales and use tax on motor and diesel
motor fuels; allows local governments to also eliminate their portion
of sales and use tax on motor and diesel motor fuels; reduces the
state excise tax on motor and diesel motor fuels from 8 cents per
gallon to 2 cents per gallon; and provides any loss in revenue from
the excise tax reduction that is dedicated to the highway and bridge
trust funds be offset by the state general fund.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 exempts motor fuel and diesel motor fuel from state sales
and compensating use tax.

Sections 2 through 6 provides local governments with the option to
eliminate their portion of sales and compensating use tax on motor
fuel and diesel motor fuel.

Section 7 reduces the state excise tax on diesel motor fuel from four
cents per gallon to two cents per gallon.

Section 8 repeals the additional two cents per gallon excise tax on
diesel motor fuel.

Section 9 repeals the supplemental two cents per gallon excise tax on
diesel motor fuel.

Section 10 reduces the state excise tax on motor fuel from four cents
per gallon to two cents per gallon.

Section 11 repeals the additional two cents per gallon excise tax on
motor fuel.

Section 12 repeals the supplemental two cents per gallon excise tax on
motor fuel.

Sections 13 through 16 amends the public authorities law, the tax law
and the highway law with regards to the tax provisions being repealed
in this bill that are dedicated to the Mass Transportation Trust Fund,
the Highway and Bridge Trust Fund and the Mass Transportation
Operating Assistance Fund.

Section 17 provides that any revenue that would have been received by
the Commissioner of Taxation and Finance prior to the enactment of
this bill will now be funded by the State general Fund.


Section 18 provides the effective date.

JUSTIFICATION:

Even as gasoline prices decline nationwide New York State still has
some of the highest prices at the pump in the country. This is mainly
attributed to the high level of taxation that is in place on each
gallon of gasoline sold in New York State. This bill would reduce the
state taxes placed on a gallon of motor fuel from 34 cents per gallon
to 20 cents per gallon, a 14 cents per gallon reduction or 40%. Much
of the revenue generated by the taxes placed on gasoline is dedicated
for maintenance and improvements of highways, bridges and roads. This
bill ensures that those funds will continue to be provided for these
very important infrastructure projects from the State General Fund.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

It is estimated that this bill will provide $875 million in savings to
New York motorists.

EFFECTIVE DATE:

Immediately.

2015-S4410 - Bill Text download pdf

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

                                  4410

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 19, 2015
                               ___________

Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT to amend the tax law, in relation to eliminating state sales and
  compensating use taxes on motor  fuels  and  diesel  motor  fuels  and
  authorizing  localities to eliminate such taxes at the local level; in
  relation to reducing the tax rate from four cents per  gallon  to  two
  cents per gallon, and to amend the public authorities law, the highway
  law  and  the tax law, in relation to making technical changes; and to
  repeal certain sections of the tax law relating thereto

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

  Section  1.  Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 49 to read as follows:
  (49) MOTOR FUEL AND DIESEL MOTOR FUEL.
  S 2. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
adding a new clause 12 to read as follows:
  (12)  EXCEPT  AS  OTHERWISE PROVIDED BY LAW, THE EXEMPTION PROVIDED IN
PARAGRAPH FORTY-NINE  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
FIFTEEN  OF  THIS  ARTICLE  RELATING TO MOTOR FUEL AND DIESEL MOTOR FUEL
SHALL BE APPLICABLE PURSUANT TO A LOCAL  LAW,  ORDINANCE  OR  RESOLUTION
ADOPTED  BY  A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION. SUCH CITY
IS EMPOWERED TO ADOPT OR REPEAL SUCH A LOCAL LAW,  ORDINANCE  OR  RESOL-
UTION.  SUCH  ADOPTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY LOCAL
LAW, ORDINANCE OR RESOLUTION ENACTED  BY  SUCH  A  CITY  IMPOSING  TAXES
PURSUANT  TO  THE AUTHORITY OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED
TEN OF THIS CHAPTER.
  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 13 of the  laws  of  2013,  is  amended  to  read  as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08365-01-5

S. 4410                             2

  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the
corresponding  provisions  in  such  article twenty-eight, including the
definition and exemption provisions of  such  article,  so  far  as  the
provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized under this subdivision may not be  imposed  by  a  city  or  county
unless  the  local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of  receipts,  charges  or  rents,
subject  to  state  tax  under  sections  eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted  by  any  city  of  less  than  one
million  or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes  all  sales
of  tangible  personal  property  for  use  or  consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
the  provision  for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen  of  this
chapter.  (ii)  Any  local  law,  ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized  by  this
subdivision,  shall  omit the residential solar energy systems equipment
exemption provided for in subdivision (ee), the commercial solar  energy
systems  equipment  exemption  provided  for in subdivision (ii) and the
clothing and footwear exemption provided  for  in  paragraph  thirty  of
subdivision  (a)  of  section  eleven  hundred  fifteen of this chapter,
unless such city, county or  school  district  elects  otherwise  as  to
either  such  residential solar energy systems equipment exemption, such
commercial solar energy systems equipment exemption or such clothing and
footwear exemption.  ANY LOCAL LAW, ORDINANCE OR RESOLUTION  ENACTED  BY
ANY  CITY,  COUNTY  OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY
THIS SUBDIVISION, SHALL OMIT  THE  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL
EXEMPTION  PROVIDED  FOR  IN  PARAGRAPH FORTY-NINE OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY
OR SCHOOL DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY HAVING
A POPULATION OF ONE MILLION OR MORE ENACTS THE RESOLUTION  DESCRIBED  IN
SUBDIVISION  (Q) OF THIS SECTION OR REPEALS SUCH RESOLUTION, SUCH RESOL-
UTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY LOCAL  LAW,  ORDINANCE
OR RESOLUTION ENACTED BY SUCH A CITY IMPOSING SUCH TAXES PURSUANT TO THE
AUTHORITY  OF  THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES ARE SUSPENDED
AT THE TIME SUCH CITY ENACTS ITS RESOLUTION PURSUANT TO SUBDIVISION  (Q)
OF  THIS  SECTION  OR AT THE TIME OF ANY SUCH REPEAL; PROVIDED, FURTHER,
THAT ANY SUCH LOCAL LAW, ORDINANCE  OR  RESOLUTION  AND  SECTION  ELEVEN
HUNDRED  SEVEN  OF  THIS CHAPTER, AS DEEMED TO BE AMENDED IN THE EVENT A
CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION PURSUANT TO THE AUTHORI-
TY OF SUBDIVISION (Q) OF THIS SECTION,  SHALL  BE  FURTHER  AMENDED,  AS
PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS SUBPART, SO THAT THE

S. 4410                             3

MOTOR  FUEL AND DIESEL MOTOR FUEL EXEMPTION IN ANY SUCH LOCAL LAW, ORDI-
NANCE OR RESOLUTION OR IN SUCH SECTION  ELEVEN  HUNDRED  SEVEN  OF  THIS
CHAPTER IS THE SAME AS THE MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION IN
PARAGRAPH  FORTY-NINE  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER.
  S 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
section  37 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (d) A local law, ordinance or resolution imposing any tax pursuant  to
this  section,  increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy  sources  and
services  described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of  tax  imposed  on  such
energy  sources  and  services  or  providing  for  the credit or refund
described in clause six of subdivision (a)  of  section  eleven  hundred
nineteen  of this chapter must go into effect only on one of the follow-
ing dates: March first, June first, September first or  December  first;
provided,  that  a  local law, ordinance or resolution providing for the
exemption described in paragraph thirty of subdivision  (a)  of  section
eleven  hundred  fifteen of this chapter or repealing any such exemption
or a local law, ordinance or resolution providing for a refund or credit
described in subdivision (d) of section eleven hundred nineteen of  this
chapter or repealing such provision so provided must go into effect only
on March first; PROVIDED, FURTHER, THAT A LOCAL LAW, ORDINANCE OR RESOL-
UTION  PROVIDING  FOR THE EXEMPTION DESCRIBED IN PARAGRAPH FORTY-NINE OF
SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THIS  CHAPTER  OR
REPEALING ANY SUCH EXEMPTION SO PROVIDED AND A RESOLUTION ENACTED PURSU-
ANT  TO  THE AUTHORITY OF SUBDIVISION (Q) OF THIS SECTION PROVIDING SUCH
EXEMPTION OR REPEALING SUCH EXEMPTION SO PROVIDED  MAY  GO  INTO  EFFECT
IMMEDIATELY.  No such local law, ordinance or resolution shall be effec-
tive unless a certified copy of such law,  ordinance  or  resolution  is
mailed  by  registered  or  certified  mail  to  the commissioner at the
commissioner's office in Albany at least ninety days prior to  the  date
it  is  to  become  effective.  However,  the commissioner may waive and
reduce such ninety-day minimum notice requirement to a mailing  of  such
certified  copy  by  registered or certified mail within a period of not
less than thirty days prior to such effective date if  the  commissioner
deems  such action to be consistent with the commissioner's duties under
section twelve hundred fifty of this article and the  commissioner  acts
by  resolution.  Where  the  restriction  provided for in section twelve
hundred twenty-three of this article as to the effective date of  a  tax
and  the notice requirement provided for therein are applicable and have
not been waived, the  restriction  and  notice  requirement  in  section
twelve hundred twenty-three of this article shall also apply.
  S  5.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY;
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR  THE
SAME  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL  EXEMPT FROM STATE SALES AND
COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-NINE OF  SUBDIVISION
(A)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A
RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;

S. 4410                             4

WHEREUPON,  UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND
(E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED
TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTION AS IF
IT  HAD  BEEN  DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.
  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  THE  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR PURCHASES OF MOTOR FUEL AND DIESEL MOTOR FUEL
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
FORTY-NINE OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THE
TAX  LAW  SHALL  ALSO  BE  EXEMPT  FROM SALES AND COMPENSATING USE TAXES
IMPOSED IN THIS JURISDICTION.
  SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE)  AND
SHALL  APPLY  TO  SALES  MADE  AND USES OCCURRING ON AND AFTER THAT DATE
ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
  S 6. The commissioner of taxation and finance is hereby authorized  to
implement  the  provisions of sections one through five of this act with
respect to the elimination of the imposition of  sales  tax,  additional
taxes,  and  supplemental  taxes on diesel motor fuel and motor fuel and
all other taxes so addressed by this act.
  S 7. Subdivision 1 of section 282-a of the  tax  law,  as  amended  by
section  2  of  part  W of chapter 59 of the laws of 2013, is amended to
read as follows:
  1. There is hereby levied and imposed with  respect  to  Diesel  motor
fuel  an  excise tax of [four] TWO cents per gallon upon the sale or use
of Diesel motor fuel in this state.
  The excise tax is imposed on the first sale or  use  of  Diesel  motor
fuel to occur which is not exempt from tax under this article. Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the removal of highway Diesel motor  fuel  from  a  terminal,
other  than  by pipeline, barge, tanker or other vessel, or the delivery
of Diesel motor fuel to a filling station or into the fuel tank connect-
ing with the engine of a motor vehicle for use in the operation  thereof
whichever event shall be first to occur. The tax shall be computed based
upon the number of gallons of Diesel motor fuel sold, removed or used or
the  number  of gallons of Diesel fuel delivered into the fuel tank of a
motor vehicle, as the case may be. Nothing  in  this  article  shall  be
construed  to require the payment of such excise tax more than once upon
the same Diesel motor fuel. Nor shall the collection of such tax be made
applicable to the sale or use of Diesel motor fuel  under  circumstances
which preclude the collection of such tax by reason of the United States
constitution  and of laws of the United States enacted pursuant thereto.
Provided, further, no Diesel motor fuel shall be included in the measure
of the tax unless it shall have previously come to rest within the mean-
ing of federal decisional law interpreting the United  States  constitu-
tion.  All tax for the period for which a return is required to be filed
shall be due on the date limited for the filing of the return  for  such
period,  regardless  of  whether  a  return is filed as required by this
article or whether the return which is filed correctly shows the  amount
of tax due.
  S 8. Section 282-b of the tax law is REPEALED.
  S 9. Section 282-c of the tax law is REPEALED.
  S 10. Subdivision 1 of section 284 of the tax law, as amended by chap-
ter 276 of the laws of 1986, is amended to read as follows:

S. 4410                             5

  1.    There  is  hereby levied and imposed an excise tax of [four] TWO
cents per gallon upon motor fuel (a)  imported  into  or  caused  to  be
imported  into the state by a distributor for use, distribution, storage
or sale in the state or upon motor  fuel  which  is  produced,  refined,
manufactured  or  compounded  by  a distributor in the state (which acts
shall hereinafter in this  subdivision  be  encompassed  by  the  phrase
"imported or manufactured") or (b) if the tax has not been imposed prior
to its sale in this state, which is sold by a distributor (which act, in
conjunction  with  the  acts described in paragraph (a) of this subdivi-
sion, shall hereinafter in this article be  encompassed  by  the  phrase
"imported, manufactured or sold"), except when imported, manufactured or
sold  under  circumstances  which preclude the collection of such tax by
reason of the United States constitution  and  of  laws  of  the  United
States  enacted  pursuant thereto or when imported or manufactured by 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 and except kero-jet  fuel  when  imported  or
manufactured  by an airline for use in its airplanes. Provided, further,
no motor fuel shall be included in the measure  of  the  tax  unless  it
shall  have  previously come to rest within the meaning of federal deci-
sional law interpreting the United States constitution. All tax for  the
period  for  which  a return is required to be filed shall be due on the
date limited for the filing of the return for such period, regardless of
whether a return is filed by such distributor as required by this  arti-
cle  or  whether the return which is filed correctly shows the amount of
tax due.
  S 11. Section 284-a of the tax law is REPEALED.
  S 12. Section 284-c of the tax law is REPEALED.
  S 13. Paragraph (b) of subdivision 5 of  section  376  of  the  public
authorities  law,  as  amended  by  chapter  55  of the laws of 1992, is
amended to read as follows:
  (b) To assure the continued operation and solvency  of  the  authority
for the carrying out of the purposes relating to this section, provision
is made in this section for the accumulation in the debt service reserve
fund  of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any succeeding calendar year on  all  bonds
of  the  authority  then  outstanding  and secured by such reserve fund;
provided however for such bonds issued  by  the  authority  after  April
first,  nineteen  hundred ninety-two, such debt service reserve fund may
in the discretion of the authority and  consistent  with  any  covenants
with  any  existing  bondholders and without impairing the rights of any
existing bondholders be sized in an amount equal to not less  than  one-
half of the maximum amount of principal and interest maturing and becom-
ing  due  in any succeeding calendar year on such bonds of the authority
then outstanding and secured by such debt service reserve fund. In order
to further assure the maintenance of such  debt  service  reserve  fund,
with  respect  to bonds of the authority issued pursuant to subdivisions
two-a, two-b and two-c of  this  section  after  April  first,  nineteen
hundred  ninety, the authority shall create a special subaccount in each
revenue fund established  pursuant  to  any  resolution  or  resolutions
authorizing  such  bonds.  [Such subaccounts shall consist of the moneys
available after  April  first,  nineteen  hundred  ninety,  pursuant  to
sections two hundred eighty-two-b, two hundred eighty-two-c, two hundred
eighty-four-a  and two hundred eighty-four-c of the tax law, respective-
ly, in  the  emergency  highway  reconditioning  and  preservation  fund

S. 4410                             6

reserve account established pursuant to paragraph (b) of subdivision two
of  section  eighty-nine  of  the state finance law and in the emergency
highway construction and reconstruction fund reserve account established
pursuant to paragraph (b) of subdivision two of section eighty-nine-a of
the state finance law, apportioned and paid to the authority for deposit
in such subaccount of the revenue fund.] Amounts in each such subaccount
shall be kept separate and shall not be commingled with any other moneys
in  the custody of the authority.  Amounts in each such subaccount shall
be applied solely to pay such sum, if any, as shall  semi-annually,  (on
such dates as are established under the terms of any cooperative highway
contractual  agreement  of the department of transportation with the New
York state thruway authority entered into on or after April first, nine-
teen hundred ninety which is then in effect), be certified by the chair-
man of the authority to the governor and state director of the budget as
necessary to provide funds in an amount sufficient together  with  other
moneys  available  to the authority for such purpose, to pay one-half of
the total annual principal and interest maturing and becoming due during
the next succeeding twelve calendar months on all bonds of the authority
issued pursuant to subdivisions two-a, two-b and two-c of  this  section
after  April  first,  nineteen hundred ninety and maintaining or funding
debt service reserve funds therefor. [Any surplus of funds in excess  of
such  certified  amounts  remaining  in  each such subaccount after such
payments, if any, have been made shall on the  dates  established  under
the  terms  of  such  cooperative  highway  agreements, be paid over for
deposit, respectively, in the emergency highway reconditioning and pres-
ervation fund reserve account established pursuant to paragraph  (b)  of
subdivision  two  of section eighty-nine of the state finance law and in
the emergency  highway  construction  and  reconstruction  fund  reserve
account  established  pursuant  to  paragraph  (b) of subdivision two of
section eighty-nine-a of the state finance law.]
  S 14. Paragraphs (b), (d) and (e) of subdivision 3 of section 289-c of
the tax law, paragraph (b) as amended by chapter  411  of  the  laws  of
1971, paragraph (d) as amended by chapter 836 and paragraph (e) as added
by chapter 756 of the laws of 1974, are amended to read as follows:
  (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]  SECTION 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]
SECTION 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] SECTION 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

S. 4410                             7

pursuant to such [sections] SECTION 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.
  (d) Any omnibus carrier which shall buy motor fuel on which the aggre-
gate  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  transporta-
tion  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  exclu-
sively in educational related activities.
  S  15.  Subdivision  1  of section 289-e of the tax law, as amended by
section 15 of part K of chapter 61 of the laws of 2011,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner under the taxes imposed  by  this  article,  except  as
provided  otherwise  in  subdivision  two  and subdivision three of this
section  [and   sections   two   hundred   eighty-two-b,   two   hundred
eighty-two-c,  two hundred eighty-four-a and two hundred eighty-four-c,]
other than the fee imposed by  section  two  hundred  eighty-four-d  and
penalties  and  interest on such fee, shall be deposited and disposed of
pursuant to the provisions of section one hundred seventy-one-a of  this
chapter;  provided that an amount equal to thirty-seven and one-half per
centum of the moneys collected under section two hundred eighty-four  of
this chapter shall be appropriated and used for the acquisition of prop-
erty  necessary  for the construction and reconstruction of highways and
bridges  or  culverts  on  the  state  highway  system,  and   for   the
construction,  maintenance  and  repair  of such highways and bridges or
culverts, all under the direction of the commissioner of transportation.
  S 16. Subdivision 5 of section 10-c of the highway law, as amended  by
chapter 20 of the laws of 1983, is amended to read as follows:
  5.  For  amounts  to be distributed pursuant to this section above the
funding level, as defined in this subdivision, received by  any  munici-
pality,  such  municipality  shall  use at least seventy-five percent of
such apportioned moneys for the construction, reconstruction or improve-
ment of  local  highways,  bridges  and/or  highway-railroad  crossings,
including   right  of  way  acquisition,  preliminary  engineering,  and
construction supervision and inspection, where the service life  of  the
project is at least ten years. Such moneys made available may be used to
match  other  state  and  federal funds made available for such projects

S. 4410                             8

under federal-aid highway acts. The remainder of the apportionment,  may
be used for any highway purposes, except debt service, including but not
limited to, the acquisition of materials and equipment devoted to opera-
tion  and maintenance of local highways, bridges and/or highway-railroad
crossings and the payment of any costs directly attributable  to  opera-
tion  and maintenance of local highways, bridges and/or highway-railroad
crossings. At the discretion of the commissioner, the requirement speci-
fied in this subdivision  may  be  waived  for  assistance  payments  in
amounts of less than five thousand dollars. For purposes of this section
"funding  level"  shall  mean  the  average amounts, calculated for each
municipality, received over two years ending March  thirty-first,  nine-
teen hundred eighty-two from the provisions of the town highway improve-
ment program, the distribution made by former section one hundred twelve
of this chapter, as repealed by section twenty-one of the transportation
systems  assistance  and financing act of 1981 of amounts collected from
taxes on motor fuel imposed by [sections] SECTION  two  hundred  eighty-
four  [and two hundred eighty-four-a] of the tax law and on Diesel motor
fuel imposed by [sections] SECTION two  hundred  eighty-two-a  [and  two
hundred  eighty-two-b]  of  the  tax  law,  and  from motor vehicle fees
collected from residents pursuant to the vehicle and  traffic  law,  and
the distribution made by former section two hundred seventy-nine of this
chapter, as repealed by section twenty-one of the transportation systems
assistance and financing act of 1981.
  S  17. Notwithstanding any other section of the law, any taxes, inter-
est, penalties and fees that would have been received by the commission-
er of taxation and finance prior to the  enactment  of  sections  seven,
eight,  nine,  ten, eleven and twelve of this act, be deposited pursuant
to section 289-e of the tax law from the state general fund.
  S 18. This act shall take effect immediately; provided, however,  that
sections one through five of this act shall take effect on the first day
of  the  sales  tax quarterly period, as described in subdivision (b) of
section 1136 of the tax law, next commencing at least 90 days after this
act shall have become a law and  shall  apply  in  accordance  with  the
applicable  transitional  provisions of section 1106 and 1217 of the tax
law.

2015-S4410A (ACTIVE) - Details

See Assembly Version of this Bill:: A5177
Current Committee:: Senate Energy And Telecommunications
Law Section:: Tax Law
Laws Affected:: Rpld §§282-b, 282-c, 284-a & 284-c, amd Tax L, generally; amd §376, Pub Auth L; amd §10-c, Hway L

2015-S4410A (ACTIVE) - Summary

2015-S4410A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4410A

 TITLE OF BILL :  An act to amend the tax law, in relation to
eliminating state sales and compensating use taxes on motor fuels and
diesel motor fuels and authorizing localities to eliminate such taxes
at the local level; in relation to reducing the tax rate from four
cents per gallon to two cents per gallon, and to amend the public
authorities law, the highway law and the tax law, in relation to
making technical changes; and to repeal certain sections of the tax
law relating thereto

 PURPOSE OR GENERAL IDEA OF BILL :

This bill eliminates the state sales and use tax on motor and diesel
motor fuels; allows local governments to also eliminate their portion
of sales and use tax on motor and diesel motor fuels; reduces the
state excise tax on motor and diesel motor fuels from 8 cents per
gallon to 2 cents per gallon; and provides any loss in revenue from
the excise tax reduction that is dedicated to the highway and bridge
trust funds be offset by the state general fund.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 exempts motor fuel and diesel motor fuel from state sales
and compensating use tax.

Sections 2 through 6 provides local governments with the option to
eliminate their portion of sales and compensating use tax on motor
fuel and diesel motor fuel.

Section 7 reduces the state excise tax on diesel motor fuel from four
cents per gallon to two cents per gallon.

Section 8 repeals the additional two cents per gallon excise tax on
diesel motor fuel.

Section 9 repeals the supplemental two cents per gallon excise tax on
diesel motor fuel.

Section 10 reduces the state excise tax on motor fuel from four cents
per gallon to two cents per gallon.

Section 11 repeals the additional two cents per gallon excise tax on
motor fuel.

Section 12 repeals the supplemental two cents per gallon excise tax on
motor fuel.

Sections 13 through 16 amends the public authorities law, the tax law
and the highway law with regards to the tax provisions being repealed
in this bill that are dedicated to the Mass Transportation Trust Fund,
the Highway and Bridge Trust Fund and the Mass Transportation
Operating Assistance Fund.

Section 17 provides that any revenue that would have been received by
the Commissioner of Taxation and Finance prior to the enactment of
this bill will now be funded by the State general Fund.

Section 18 provides the effective date.

 JUSTIFICATION :

Even as gasoline prices decline nationwide New York State still has
some of the highest prices at the pump in the country. This is mainly
attributed to the high level of taxation that is in place on each
gallon of gasoline sold in New York State. This bill would reduce the
state taxes placed on a gallon of motor fuel from 34 cents per gallon
to 20 cents per gallon, a 14 cents per gallon reduction or 40%. Much
of the revenue generated by the taxes placed on gasoline is dedicated
for maintenance and improvements of highways, bridges and roads. This
bill ensures that those funds will continue to be provided for these
very important infrastructure projects from the State General Fund.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

It is estimated that this bill will provide $875 million in savings to
New York motorists.

 EFFECTIVE DATE :
Immediately.

2015-S4410A (ACTIVE) - Bill Text download pdf

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

                                 4410--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 19, 2015
                               ___________

Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations 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 eliminating state sales and
  compensating use taxes on motor  fuels  and  diesel  motor  fuels  and
  authorizing  localities to eliminate such taxes at the local level; in
  relation to reducing the tax rate from four cents per  gallon  to  two
  cents per gallon, and to amend the public authorities law, the highway
  law  and  the tax law, in relation to making technical changes; and to
  repeal certain sections of the tax law relating thereto

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

  Section  1.  Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
  (44) MOTOR FUEL AND DIESEL MOTOR FUEL.
  S 2. Subdivision (b) of section 1107 of the  tax  law  is  amended  by
adding a new clause 12 to read as follows:
  (12)  EXCEPT  AS  OTHERWISE PROVIDED BY LAW, THE EXEMPTION PROVIDED IN
PARAGRAPH FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN  HUNDRED
FIFTEEN  OF  THIS  ARTICLE  RELATING TO MOTOR FUEL AND DIESEL MOTOR FUEL
SHALL BE APPLICABLE PURSUANT TO A LOCAL  LAW,  ORDINANCE  OR  RESOLUTION
ADOPTED  BY  A CITY SUBJECT TO THE PROVISIONS OF THIS SECTION. SUCH CITY
IS EMPOWERED TO ADOPT OR REPEAL SUCH A LOCAL LAW,  ORDINANCE  OR  RESOL-
UTION.  SUCH  ADOPTION OR REPEAL SHALL ALSO BE DEEMED TO AMEND ANY LOCAL
LAW, ORDINANCE OR RESOLUTION ENACTED  BY  SUCH  A  CITY  IMPOSING  TAXES
PURSUANT  TO  THE AUTHORITY OF SUBDIVISION (A) OF SECTION TWELVE HUNDRED
TEN OF THIS CHAPTER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08365-03-6

S. 4410--A                          2

  S 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 3 of part Z of chapter 59 of the  laws  of  2015,  is
amended to read as follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the
corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
and  electricity exemption provided for in subdivision (ee), the commer-
cial solar energy systems equipment and electricity  exemption  provided
for in subdivision (ii) and the clothing and footwear exemption provided
for  in  paragraph  thirty  of subdivision (a) of section eleven hundred
fifteen of this chapter, unless such city,  county  or  school  district
elects  otherwise  as  to  either  such residential solar energy systems
equipment  and  electricity  exemption,  such  commercial  solar  energy
systems  equipment  and electricity exemption or such clothing and foot-
wear exemption.  ANY LOCAL LAW, ORDINANCE OR RESOLUTION ENACTED  BY  ANY
CITY,  COUNTY  OR SCHOOL DISTRICT, IMPOSING THE TAXES AUTHORIZED BY THIS
SUBDIVISION, SHALL OMIT THE MOTOR FUEL AND DIESEL MOTOR  FUEL  EXEMPTION
PROVIDED FOR IN PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEV-
EN  HUNDRED  FIFTEEN OF THIS CHAPTER, UNLESS SUCH CITY, COUNTY OR SCHOOL
DISTRICT ELECTS OTHERWISE; PROVIDED THAT IF SUCH A CITY HAVING  A  POPU-
LATION  OF ONE MILLION OR MORE ENACTS THE RESOLUTION DESCRIBED IN SUBDI-
VISION (P) OF THIS SECTION OR REPEALS SUCH RESOLUTION,  SUCH  RESOLUTION
OR  REPEAL  SHALL  ALSO  BE  DEEMED TO AMEND ANY LOCAL LAW, ORDINANCE OR
RESOLUTION ENACTED BY SUCH A CITY IMPOSING SUCH TAXES  PURSUANT  TO  THE
AUTHORITY  OF  THIS SUBDIVISION, WHETHER OR NOT SUCH TAXES ARE SUSPENDED
AT THE TIME SUCH CITY ENACTS ITS RESOLUTION PURSUANT TO SUBDIVISION  (P)
OF  THIS  SECTION  OR AT THE TIME OF ANY SUCH REPEAL; PROVIDED, FURTHER,
THAT ANY SUCH LOCAL LAW, ORDINANCE  OR  RESOLUTION  AND  SECTION  ELEVEN

S. 4410--A                          3

HUNDRED  SEVEN  OF  THIS CHAPTER, AS DEEMED TO BE AMENDED IN THE EVENT A
CITY OF ONE MILLION OR MORE ENACTS A RESOLUTION PURSUANT TO THE AUTHORI-
TY OF SUBDIVISION (P) OF THIS SECTION,  SHALL  BE  FURTHER  AMENDED,  AS
PROVIDED IN SECTION TWELVE HUNDRED EIGHTEEN OF THIS SUBPART, SO THAT THE
MOTOR  FUEL AND DIESEL MOTOR FUEL EXEMPTION IN ANY SUCH LOCAL LAW, ORDI-
NANCE OR RESOLUTION OR IN SUCH SECTION  ELEVEN  HUNDRED  SEVEN  OF  THIS
CHAPTER IS THE SAME AS THE MOTOR FUEL AND DIESEL MOTOR FUEL EXEMPTION IN
PARAGRAPH  FORTY-FOUR  OF  SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER.
  S 4. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
section  4-a  of part Z of chapter 59 of the laws of 2015, is amended to
read as follows:
  (d) A local law, ordinance or resolution imposing any tax pursuant  to
this  section,  increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy  sources  and
services  described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of  tax  imposed  on  such
energy  sources  and  services  or  providing  for  the credit or refund
described in clause six of subdivision (a)  of  section  eleven  hundred
nineteen  of  this  chapter,  or electing or repealing the exemption for
residential solar equipment  and  electricity  in  subdivision  (ee)  of
section  eleven  hundred  fifteen  of this article, or the exemption for
commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
section  eleven hundred fifteen of this article must go into effect only
on one of the following dates: March first, June first, September  first
or  December  first; provided, that a local law, ordinance or resolution
providing for the exemption described in paragraph thirty of subdivision
(a) of section eleven hundred fifteen of this chapter or  repealing  any
such  exemption  or a local law, ordinance or resolution providing for a
refund or credit described in subdivision (d) of section eleven  hundred
nineteen of this chapter or repealing such provision so provided must go
into  effect  only  on March first; PROVIDED, FURTHER, THAT A LOCAL LAW,
ORDINANCE OR RESOLUTION PROVIDING FOR THE EXEMPTION DESCRIBED  IN  PARA-
GRAPH FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS  CHAPTER  OR  REPEALING ANY SUCH EXEMPTION SO PROVIDED AND A RESOL-
UTION ENACTED PURSUANT TO THE  AUTHORITY  OF  SUBDIVISION  (P)  OF  THIS
SECTION PROVIDING SUCH EXEMPTION OR REPEALING SUCH EXEMPTION SO PROVIDED
MAY  GO INTO EFFECT IMMEDIATELY.  No such local law, ordinance or resol-
ution shall be effective unless a certified copy of such law,  ordinance
or  resolution  is mailed by registered or certified mail to the commis-
sioner at the commissioner's office in Albany at least ninety days prior
to the date it is to become effective.  However,  the  commissioner  may
waive and reduce such ninety-day minimum notice requirement to a mailing
of  such  certified copy by registered or certified mail within a period
of not less than thirty days prior to such effective date if the commis-
sioner deems such action to be consistent with the commissioner's duties
under section twelve hundred fifty of this article and the  commissioner
acts by resolution. Where the restriction provided for in section twelve
hundred  twenty-three  of this article as to the effective date of a tax
and the notice requirement provided for therein are applicable and  have
not  been  waived,  the  restriction  and  notice requirement in section
twelve hundred twenty-three of this article shall also apply.
  S 5. Section 1210 of the tax law is amended by adding a  new  subdivi-
sion (p) to read as follows:
  (P)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
NANCE OR RESOLUTION TO THE CONTRARY;

S. 4410--A                          4

  (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
AND  EMPOWERED TO ELECT TO PROVIDE THE EXEMPTION FROM SUCH TAXES FOR THE
SAME  MOTOR  FUEL  AND  DIESEL  MOTOR  FUEL  EXEMPT FROM STATE SALES AND
COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH FORTY-FOUR OF  SUBDIVISION
(A)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS CHAPTER BY ENACTING A
RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF  THIS  SUBDIVISION;
WHEREUPON,  UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND
(E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED
TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION
ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTION AS IF
IT  HAD  BEEN  DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.
  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  THE  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR PURCHASES OF MOTOR FUEL AND DIESEL MOTOR FUEL
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
FORTY-FOUR OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN  OF  THE
TAX  LAW  SHALL  ALSO  BE  EXEMPT  FROM SALES AND COMPENSATING USE TAXES
IMPOSED IN THIS JURISDICTION.
  SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT, (INSERT THE DATE)  AND
SHALL  APPLY  TO  SALES  MADE  AND USES OCCURRING ON AND AFTER THAT DATE
ALTHOUGH MADE OR OCCURRING UNDER A PRIOR CONTRACT.
  S 6. The commissioner of taxation and finance is hereby authorized  to
implement  the  provisions of sections one through five of this act with
respect to the elimination of the imposition of  sales  tax,  additional
taxes,  and  supplemental  taxes on diesel motor fuel and motor fuel and
all other taxes so addressed by this act.
  S 7. Subdivision 1 of section 282-a of the  tax  law,  as  amended  by
section  2  of  part  W of chapter 59 of the laws of 2013, is amended to
read as follows:
  1. There is hereby levied and imposed with  respect  to  Diesel  motor
fuel  an  excise tax of [four] TWO cents per gallon upon the sale or use
of Diesel motor fuel in this state.
  The excise tax is imposed on the first sale or  use  of  Diesel  motor
fuel to occur which is not exempt from tax under this article. Provided,
however,  if  the  tax  has  not been imposed prior thereto, it shall be
imposed on the removal of highway Diesel motor  fuel  from  a  terminal,
other  than  by pipeline, barge, tanker or other vessel, or the delivery
of Diesel motor fuel to a filling station or into the fuel tank connect-
ing with the engine of a motor vehicle for use in the operation  thereof
whichever event shall be first to occur. The tax shall be computed based
upon the number of gallons of Diesel motor fuel sold, removed or used or
the  number  of gallons of Diesel fuel delivered into the fuel tank of a
motor vehicle, as the case may be. Nothing  in  this  article  shall  be
construed  to require the payment of such excise tax more than once upon
the same Diesel motor fuel. Nor shall the collection of such tax be made
applicable to the sale or use of Diesel motor fuel  under  circumstances
which preclude the collection of such tax by reason of the United States
constitution  and of laws of the United States enacted pursuant thereto.
Provided, further, no Diesel motor fuel shall be included in the measure
of the tax unless it shall have previously come to rest within the mean-
ing of federal decisional law interpreting the United  States  constitu-
tion.  All tax for the period for which a return is required to be filed

S. 4410--A                          5

shall be due on the date limited for the filing of the return  for  such
period,  regardless  of  whether  a  return is filed as required by this
article or whether the return which is filed correctly shows the  amount
of tax due.
  S 8. Section 282-b of the tax law is REPEALED.
  S 9. Section 282-c of the tax law is REPEALED.
  S 10. Subdivision 1 of section 284 of the tax law, as amended by chap-
ter 276 of the laws of 1986, is amended to read as follows:
  1.    There  is  hereby levied and imposed an excise tax of [four] TWO
cents per gallon upon motor fuel (a)  imported  into  or  caused  to  be
imported  into the state by a distributor for use, distribution, storage
or sale in the state or upon motor  fuel  which  is  produced,  refined,
manufactured  or  compounded  by  a distributor in the state (which acts
shall hereinafter in this  subdivision  be  encompassed  by  the  phrase
"imported or manufactured") or (b) if the tax has not been imposed prior
to its sale in this state, which is sold by a distributor (which act, in
conjunction  with  the  acts described in paragraph (a) of this subdivi-
sion, shall hereinafter in this article be  encompassed  by  the  phrase
"imported, manufactured or sold"), except when imported, manufactured or
sold  under  circumstances  which preclude the collection of such tax by
reason of the United States constitution  and  of  laws  of  the  United
States  enacted  pursuant thereto or when imported or manufactured by 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 and except kero-jet  fuel  when  imported  or
manufactured  by an airline for use in its airplanes. Provided, further,
no motor fuel shall be included in the measure  of  the  tax  unless  it
shall  have  previously come to rest within the meaning of federal deci-
sional law interpreting the United States constitution. All tax for  the
period  for  which  a return is required to be filed shall be due on the
date limited for the filing of the return for such period, regardless of
whether a return is filed by such distributor as required by this  arti-
cle  or  whether the return which is filed correctly shows the amount of
tax due.
  S 11. Section 284-a of the tax law is REPEALED.
  S 12. Section 284-c of the tax law is REPEALED.
  S 13. Paragraph (b) of subdivision 5 of  section  376  of  the  public
authorities  law,  as  amended  by  chapter  55  of the laws of 1992, is
amended to read as follows:
  (b) To assure the continued operation and solvency  of  the  authority
for the carrying out of the purposes relating to this section, provision
is made in this section for the accumulation in the debt service reserve
fund  of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any succeeding calendar year on  all  bonds
of  the  authority  then  outstanding  and secured by such reserve fund;
provided however for such bonds issued  by  the  authority  after  April
first,  nineteen  hundred ninety-two, such debt service reserve fund may
in the discretion of the authority and  consistent  with  any  covenants
with  any  existing  bondholders and without impairing the rights of any
existing bondholders be sized in an amount equal to not less  than  one-
half of the maximum amount of principal and interest maturing and becom-
ing  due  in any succeeding calendar year on such bonds of the authority
then outstanding and secured by such debt service reserve fund. In order
to further assure the maintenance of such  debt  service  reserve  fund,
with  respect  to bonds of the authority issued pursuant to subdivisions

S. 4410--A                          6

two-a, two-b and two-c of  this  section  after  April  first,  nineteen
hundred  ninety, the authority shall create a special subaccount in each
revenue fund established  pursuant  to  any  resolution  or  resolutions
authorizing  such  bonds.  [Such subaccounts shall consist of the moneys
available after  April  first,  nineteen  hundred  ninety,  pursuant  to
sections two hundred eighty-two-b, two hundred eighty-two-c, two hundred
eighty-four-a  and two hundred eighty-four-c of the tax law, respective-
ly, in  the  emergency  highway  reconditioning  and  preservation  fund
reserve account established pursuant to paragraph (b) of subdivision two
of  section  eighty-nine  of  the state finance law and in the emergency
highway construction and reconstruction fund reserve account established
pursuant to paragraph (b) of subdivision two of section eighty-nine-a of
the state finance law, apportioned and paid to the authority for deposit
in such subaccount of the revenue fund.] Amounts in each such subaccount
shall be kept separate and shall not be commingled with any other moneys
in the custody of the authority.  Amounts in each such subaccount  shall
be  applied  solely to pay such sum, if any, as shall semi-annually, (on
such dates as are established under the terms of any cooperative highway
contractual agreement of the department of transportation with  the  New
York state thruway authority entered into on or after April first, nine-
teen hundred ninety which is then in effect), be certified by the chair-
man of the authority to the governor and state director of the budget as
necessary  to  provide funds in an amount sufficient together with other
moneys available to the authority for such purpose, to pay  one-half  of
the total annual principal and interest maturing and becoming due during
the next succeeding twelve calendar months on all bonds of the authority
issued  pursuant  to subdivisions two-a, two-b and two-c of this section
after April first, nineteen hundred ninety and  maintaining  or  funding
debt  service reserve funds therefor. [Any surplus of funds in excess of
such certified amounts remaining in  each  such  subaccount  after  such
payments,  if  any,  have been made shall on the dates established under
the terms of such cooperative  highway  agreements,  be  paid  over  for
deposit, respectively, in the emergency highway reconditioning and pres-
ervation  fund  reserve account established pursuant to paragraph (b) of
subdivision two of section eighty-nine of the state finance law  and  in
the  emergency  highway  construction  and  reconstruction  fund reserve
account established pursuant to paragraph  (b)  of  subdivision  two  of
section eighty-nine-a of the state finance law.]
  S 14. Paragraphs (b), (d) and (e) of subdivision 3 of section 289-c of
the  tax  law,  paragraph  (b)  as amended by chapter 411 of the laws of
1971, paragraph (d) as amended by chapter 836 of the laws  of  1974  and
paragraph  (e)  as added by chapter 756 of the laws of 1974, are amended
to read as follows:
  (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] SECTION 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]
SECTION  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

S. 4410--A                          7

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]  SECTION  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] SECTION 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.
  (d) Any omnibus carrier which shall buy motor fuel on which the aggre-
gate 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 transporta-
tion 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 exclu-
sively in educational related activities.
  S 15. Subdivision 1 of section 289-e of the tax  law,  as  amended  by
section  15  of  part K of chapter 61 of the laws of 2011, is amended to
read as follows:
  1. All taxes, interest, penalties and fees collected  or  received  by
the  commissioner  under  the  taxes  imposed by this article, except as
provided otherwise in subdivision two  and  subdivision  three  of  this
section   [and   sections   two   hundred   eighty-two-b,   two  hundred
eighty-two-c, two hundred eighty-four-a and two hundred  eighty-four-c,]
other  than  the  fee  imposed  by section two hundred eighty-four-d and
penalties and interest on such fee, shall be deposited and  disposed  of
pursuant  to the provisions of section one hundred seventy-one-a of this
chapter; provided that an amount equal to thirty-seven and one-half  per
centum  of the moneys collected under section two hundred eighty-four of
this chapter shall be appropriated and used for the acquisition of prop-
erty necessary for the construction and reconstruction of  highways  and
bridges   or   culverts  on  the  state  highway  system,  and  for  the
construction, maintenance and repair of such  highways  and  bridges  or
culverts, all under the direction of the commissioner of transportation.
  S  16. Subdivision 5 of section 10-c of the highway law, as amended by
chapter 20 of the laws of 1983, is amended to read as follows:

S. 4410--A                          8

  5. For amounts to be distributed pursuant to this  section  above  the
funding  level,  as defined in this subdivision, received by any munici-
pality, such municipality shall use at  least  seventy-five  percent  of
such apportioned moneys for the construction, reconstruction or improve-
ment  of  local  highways,  bridges  and/or  highway-railroad crossings,
including  right  of  way  acquisition,  preliminary  engineering,   and
construction  supervision  and inspection, where the service life of the
project is at least ten years. Such moneys made available may be used to
match other state and federal funds made  available  for  such  projects
under  federal-aid highway acts. The remainder of the apportionment, may
be used for any highway purposes, except debt service, including but not
limited to, the acquisition of materials and equipment devoted to opera-
tion and maintenance of local highways, bridges and/or  highway-railroad
crossings  and  the payment of any costs directly attributable to opera-
tion and maintenance of local highways, bridges and/or  highway-railroad
crossings. At the discretion of the commissioner, the requirement speci-
fied  in  this  subdivision  may  be  waived  for assistance payments in
amounts of less than five thousand dollars. For purposes of this section
"funding level" shall mean the  average  amounts,  calculated  for  each
municipality,  received  over two years ending March thirty-first, nine-
teen hundred eighty-two from the provisions of the town highway improve-
ment program, the distribution made by former section one hundred twelve
of this chapter, as repealed by section twenty-one of the transportation
systems assistance and financing act of 1981 of amounts  collected  from
taxes  on  motor  fuel imposed by [sections] SECTION two hundred eighty-
four [and two hundred eighty-four-a] of the tax law and on Diesel  motor
fuel  imposed  by  [sections]  SECTION two hundred eighty-two-a [and two
hundred eighty-two-b] of the  tax  law,  and  from  motor  vehicle  fees
collected  from  residents  pursuant to the vehicle and traffic law, and
the distribution made by former section two hundred seventy-nine of this
chapter, as repealed by section twenty-one of the transportation systems
assistance and financing act of 1981.
  S 17. Notwithstanding any other section of the law, any taxes,  inter-
est, penalties and fees that would have been received by the commission-
er  of  taxation  and  finance prior to the enactment of sections seven,
eight, nine, ten, eleven and twelve of this act, be  deposited  pursuant
to section 289-e of the tax law from the state general fund.
  S  18. This act shall take effect immediately; provided, however, that
sections one through five of this act shall take effect on the first day
of the sales tax quarterly period, as described in  subdivision  (b)  of
section 1136 of the tax law, next commencing at least 90 days after this
act  shall  have  become  a  law  and shall apply in accordance with the
applicable transitional provisions of section 1106 and 1217 of  the  tax
law.

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