Add Art 18-A SS435 - 439, Transp L; add S301-n, amd SS301-a & 312, Tax L
Establishes the "New Century Railroad Investment Program" to preserve, improve and enhance the state's railroad infrastructure including a credit against the petroleum based tax for certain qualifying railroad capital improvements; provides for the repeal of a certain portion of such tax for railroads commencing January 1, 2012 and provides for the repeal of capital improvement tax credit program on such date.
STATE OF NEW YORK
________________________________________________________________________
6837
2009-2010 Regular Sessions
IN ASSEMBLY
March 13, 2009
___________
Introduced by M. of A. SCOZZAFAVA -- read once and referred to the
Committee on Transportation
AN ACT to amend the transportation law and the tax law, in relation to
establishing the New Century railroad investment program and providing
for certain tax credits for rail carriers; and providing for the
repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The transportation law is amended by adding a new article
2 18-A to read as follows:
3 ARTICLE 18-A
4 NEW CENTURY RAILROAD INVESTMENT PROGRAM
5 Section 435. Legislative intent.
6 436. Program objectives.
7 437. Eligibility.
8 438. Railroad capital facility.
9 439. Joint applications.
10 § 435. Legislative intent. The continuation and improvement of the
11 appropriate level of rail freight and passenger service and the enhance-
12 ment of the state's railroad infrastructure are a necessary component in
13 establishing and maintaining the economic vitality of the state and its
14 communities. The purchase and division of the Conrail system has the
15 potential to invigorate competition among rail carriers in New York and
16 establish the state as an increasingly important crossroad for freight
17 on both the east-west and north-south corridors. In order to meet the
18 anticipated level of rail freight service in the post-Conrail era,
19 modifications and improvements to the state's rail infrastructure will
20 be necessary. The new century railroad investment program will provide
21 the state's rail carriers with a timely partnership that will stimulate
22 investment by the rail carriers into the next century. This program will
23 permit the railroad companies to improve the state's rail infrastructure
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08520-01-9
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1 in a manner that will enhance their ability to compete for business. In
2 turn, this investment will provide the state with new opportunities for
3 economic development and will enhance the increasingly important
4 relationships between the various modes of transportation.
5 § 436. Program objectives. The objectives of the new century railroad
6 investment program shall be:
7 1. The preservation, improvement and enhancement of the railroad
8 infrastructure;
9 2. The improvement of the quality and quantity of railroad freight and
10 passenger service, including the development of intermodal connections;
11 and
12 3. The facilitation of investment that will stimulate the cost-effec-
13 tive movement of freight and passengers throughout the state, including
14 those areas that were previously underserved.
15 § 437. Eligibility. 1. A railroad company, as defined in section two
16 of this chapter, shall be eligible for a tax credit against the petrole-
17 um based tax imposed pursuant to section three hundred one-a of the tax
18 law for qualifying projects certified by the commissioner pursuant to
19 the requirements set forth in this section. An investment made in New
20 York shall be deemed a qualifying project if it provides for the acqui-
21 sition, construction, reconstruction, establishment, improvement or
22 rehabilitation of a railroad capital facility. Standard maintenance of
23 railroad facilities will not be considered a qualifying project under
24 this program.
25 2. A railroad may submit an application for certification of a quali-
26 fying project under this program in such form and containing such infor-
27 mation as the commissioner may require. If the project meets the statu-
28 tory requirements set forth in this section, the commissioner shall
29 certify to its eligibility for the tax credit in a manner that will
30 facilitate granting of the credit or reimbursement set forth in section
31 three hundred one-n of the tax law. If the commissioner rejects any such
32 application he or she shall state the reasons therefor in writing and
33 may make recommendations for modification.
34 § 438. Railroad capital facility. For the purposes of this article, a
35 railroad capital facility shall mean and include railroad rights of way,
36 as well as trackage, rails, bridges, clearances, signals, stations,
37 terminals, storage yards, repair and maintenance shops, yards, offices
38 and real estate used or held for or incidental to the operation, reha-
39 bilitation or improvement of any railroad operating rail freight and
40 rail passenger transportation services.
41 § 439. Joint applications. Two or more railroad companies may submit
42 joint applications to the commissioner for qualifying projects in which
43 more than one railroad plans to participate. The tax credit or
44 reimbursement allowed by section three hundred one-n of the tax law
45 pursuant to this program shall be based upon the amount of capital
46 invested by each railroad in any such project.
47 § 2. The tax law is amended by adding a new section 301-n to read as
48 follows:
49 § 301-n. Credit for capital improvements by railroads. A railroad
50 company, as defined in section two of the transportation law, shall be
51 entitled to a credit against that portion of the tax imposed by section
52 three hundred one-a of this article which is deposited pursuant to
53 section one hundred seventy-one-a of this chapter, or a reimbursement of
54 such tax, up to the amount of capital investment made in a qualifying
55 project as defined in section four hundred thirty-seven of the transpor-
56 tation law.
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1 § 3. Paragraph 4 of subdivision (e) of section 301-a of the tax law,
2 as added by chapter 309 of the laws of 1996, is amended to read as
3 follows:
4 (4) Notwithstanding any other provision of this article, commencing
5 January first, nineteen hundred ninety-seven, the per gallon rate with
6 respect to "railroad diesel" shall be the adjusted motor fuel and auto-
7 motive-type diesel motor fuel rate under paragraphs one through three of
8 this subdivision for the period commencing such January first, nineteen
9 hundred ninety-seven, minus one and three tenths cents per gallon.
10 Commencing on the first day of January each year thereafter, the per
11 gallon rate with respect to "railroad diesel" shall be [determined by
12 taking the then motor fuel and automotive-type diesel motor fuel rate
13 under paragraphs one through three of this subdivision which commences
14 on such first day of January and subtracting one and three tenths] one
15 and forty-six hundredths cents per gallon.
16 § 4. Subdivision (b) of section 312 of the tax law, as amended by
17 section 8 of part EE of chapter 63 of the laws of 2000, is amended to
18 read as follows:
19 (b) Of all of the taxes collected or received by the commissioner on
20 or before March thirty-first, nineteen hundred ninety-one under the
21 taxes imposed by sections three hundred one-a and three hundred one-e of
22 this article, and all interest and penalties relating thereto, eighty-
23 seven and five-hundredths percent of such collections shall be deposited
24 and disposed of pursuant to the provisions of section one hundred seven-
25 ty-one-a of this chapter and the balance thereof shall be deposited in
26 the mass transportation operating assistance fund to the credit of the
27 metropolitan mass transportation operating assistance account and the
28 public transportation systems operating assistance account thereof in
29 the manner provided by subdivision eleven of section one hundred eight-
30 y-two-a of this chapter. Of all taxes, interest and penalties collected
31 or received after March thirty-first, nineteen hundred ninety-one, and
32 before April first, nineteen hundred ninety-three, from the taxes
33 imposed by sections three hundred one-a and three hundred one-e of this
34 article, initially thirty-five percent shall be deposited and disposed
35 of pursuant to such section one hundred seventy-one-a. The balance ther-
36 eof shall then be disposed of as follows: seventy-two and seven-tenths
37 percent shall be deposited and disposed of pursuant to such section one
38 hundred seventy-one-a and twenty-seven and three-tenths percent shall be
39 deposited in such mass transportation operating assistance fund as
40 prescribed in the aforestated manner. Except as otherwise provided, of
41 all taxes, interest and penalties collected or received after March
42 thirty-first, nineteen hundred ninety-three, and before April first,
43 nineteen hundred ninety-four, from the taxes imposed by sections three
44 hundred one-a and three hundred one-e of this article, (i) initially
45 fifty-four percent shall be deposited, as prescribed by subdivision (d)
46 of section three hundred one-j of this [chapter] article, (ii) twenty-
47 eight and three-tenths percent shall be deposited and disposed of pursu-
48 ant to such section one hundred seventy-one-a of this chapter in the
49 general fund and (iii) seventeen and seven-tenths percent shall be
50 deposited in such mass transportation operating assistance fund as
51 prescribed in the aforestated manner. Provided, however, that, prior to
52 such deposit, from the amounts so collected or received during the peri-
53 od commencing on January first, nineteen hundred ninety-four and ending
54 on March thirty-first, nineteen hundred ninety-four, an amount equal to
55 the portion of the taxes, interest and penalties so received or
56 collected resulting from the amendments made by sections forty-two,
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1 forty-three and forty-four of chapter fifty-seven of the laws of nine-
2 teen hundred ninety-three shall be deposited and disposed of pursuant to
3 the provisions of subdivision one of section one hundred seventy-one-a
4 of this chapter. Except as otherwise provided, of all taxes, interest
5 and penalties collected or received on or after April first, nineteen
6 hundred ninety-four, from the taxes imposed by sections three hundred
7 one-a and three hundred one-e of this article, (i) initially fifty-four
8 percent shall be deposited, as prescribed by subdivision (d) of section
9 three hundred one-j of this article, (ii) twenty-eight and three-tenths
10 percent shall be deposited and disposed of pursuant to such section one
11 hundred seventy-one-a of this chapter in the general fund, (iii) seven
12 and nine hundred sixty-five thousandths percent shall be deposited in
13 such mass transportation operating assistance fund as prescribed in the
14 aforestated manner and (iv) nine and seven hundred thirty-five thou-
15 sandths percent shall be deposited in the revenue accumulation fund.
16 Except as otherwise provided, of all taxes, interest and penalties
17 collected or received on or after September first, nineteen hundred
18 ninety-four and before September first, nineteen hundred ninety-five,
19 from the taxes imposed by sections three hundred one-a and three hundred
20 one-e of this article, (i) initially fifty-nine percent shall be depos-
21 ited, as prescribed by subdivision (d) of section three hundred one-j of
22 this article, (ii) twenty-two and four-tenths percent shall be deposited
23 and disposed of pursuant to such section one hundred seventy-one-a of
24 this chapter in the general fund, (iii) eight and three hundred seventy
25 thousandths percent shall be deposited in such mass transportation oper-
26 ating assistance fund as prescribed in the aforestated manner and (iv)
27 ten and two hundred thirty thousandths percent shall be deposited in the
28 revenue accumulation fund. Except as otherwise provided, of all taxes,
29 interest and penalties, collected or received on or after September
30 first, nineteen hundred ninety-five and before April first, nineteen
31 hundred ninety-six from the taxes imposed by sections three hundred
32 one-a and three hundred one-e of this article, (i) initially sixty-two
33 and eight-tenths percent shall be deposited as prescribed by subdivision
34 (d) of section three hundred one-j of this article, (ii) eighteen
35 percent shall be deposited and disposed of pursuant to section one
36 hundred seventy-one-a of this chapter in the general fund, (iii) eight
37 and six hundred forty thousandths percent shall be deposited in such
38 mass transportation operating assistance fund as prescribed in the
39 aforestated manner and (iv) ten and five hundred sixty thousandths
40 percent shall be deposited in the revenue accumulation fund. Except as
41 otherwise provided, of all taxes, interest and penalties collected or
42 received on or after April first, nineteen hundred ninety-six, and
43 before January first, nineteen hundred ninety-seven from the taxes
44 imposed by sections three hundred one-a and three hundred one-e of this
45 article, (i) initially sixty-three and three-tenths percent shall be
46 deposited, as prescribed by subdivision (d) of section three hundred
47 one-j of this article, (ii) seventeen and four-tenths percent shall be
48 deposited and disposed of pursuant to such section one hundred seventy-
49 one-a of this chapter in the general fund and (iii) nineteen and three-
50 tenths percent shall be deposited in such mass transportation operating
51 assistance fund as prescribed in the aforestated manner. Except as
52 otherwise provided, of all taxes, interest and penalties collected or
53 received on or after January first, nineteen hundred ninety-seven and
54 before January first, nineteen hundred ninety-eight from the taxes
55 imposed by sections three hundred one-a and three hundred one-e of this
56 article, (i) initially sixty-six and two-tenths percent shall be depos-
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1 ited, as prescribed by subdivision (d) of section three hundred one-j of
2 this article, (ii) fourteen and one-half percent shall be deposited and
3 disposed of pursuant to such section one hundred seventy-one-a of this
4 chapter in the general fund and (iii) nineteen and three-tenths percent
5 shall be deposited in such mass transportation operating assistance fund
6 as prescribed in the aforestated manner. Except as otherwise provided,
7 of all taxes, interest and penalties collected or received on or after
8 January first, nineteen hundred ninety-eight and before April first,
9 nineteen hundred ninety-nine from the taxes imposed by sections three
10 hundred one-a and three hundred one-e of this article, (i) initially
11 sixty-eight and one-tenth percent shall be deposited, as prescribed by
12 subdivision (d) of section three hundred one-j of this article, (ii)
13 twelve and four-tenths percent shall be deposited and disposed of pursu-
14 ant to such section one hundred seventy-one-a of this chapter in the
15 general fund and (iii) nineteen and one-half percent shall be deposited
16 in such mass transportation operating assistance fund as prescribed in
17 the aforestated manner. Except as otherwise provided, of all taxes,
18 interest and penalties collected or received on or after April first,
19 nineteen hundred ninety-nine, from the taxes imposed by sections three
20 hundred one-a and three hundred one-e of this article, (i) initially
21 sixty-nine and eight-tenths percent shall be deposited, as prescribed by
22 subdivision (d) of section three hundred one-j of this article, (ii) ten
23 and seven-tenths percent shall be deposited and disposed of pursuant to
24 such section one hundred seventy-one-a of this chapter in the general
25 fund and (iii) nineteen and one-half percent shall be deposited in such
26 mass transportation operating assistance fund as prescribed in the
27 aforestated manner. Except as otherwise provided, of all taxes, interest
28 and penalties collected or received on or after April first, two thou-
29 sand one, from the taxes imposed by sections three hundred one-a and
30 three hundred one-e of this article, (i) initially eighty and three-
31 tenths percent shall be deposited, as prescribed by subdivision (d) of
32 section three hundred one-j of this article and (ii) nineteen and
33 seven-tenths percent shall be deposited in such mass transportation
34 operating assistance fund as prescribed in the aforestated manner,
35 except that for taxes collected for railroad diesel imposed pursuant to
36 section three hundred one-a of this article one hundred percent shall be
37 deposited into such fund.
38 Provided, further, that on or before the twenty-fifth day of each
39 month commencing with October, nineteen hundred ninety and terminating
40 with the month of March, two thousand one, the comptroller shall deduct
41 the amount of six hundred twenty-five thousand dollars prior to any
42 deposit or disposition of the taxes, interest and penalties collected or
43 received pursuant to such sections three hundred one-a and three hundred
44 one-e and shall pay such amount to the state treasury to the credit of
45 the general fund. Provided, further that on or before the twenty-fifth
46 day of each month commencing with April, two thousand one, the comp-
47 troller shall deduct the amount of six hundred twenty-five thousand
48 dollars prior to any deposit or disposition of the taxes, interest, and
49 penalties collected or received pursuant to such sections three hundred
50 one-a and three hundred one-e and shall deposit such amount in the dedi-
51 cated fund accounts pursuant to subdivision (d) of section three hundred
52 one-j of this article. Provided, further, that commencing January
53 fifteenth, nineteen hundred ninety-one, and on or before the tenth day
54 of March and the fifteenth day of June and September of such year, the
55 commissioner shall, based on information supplied by taxpayers and other
56 appropriate sources, estimate the amount of the utility credit author-
A. 6837 6
1 ized by section three hundred one-d of this article which has been
2 accrued to reduce tax liability under section one hundred eighty-six-a
3 of this chapter during the period covered by such estimate and certify
4 to the state comptroller such estimated amount. The comptroller shall
5 forthwith, after receiving such certificate, deduct the amount of such
6 credit so certified by the commissioner prior to any deposit or disposi-
7 tion of the taxes, interest and penalties collected or received pursuant
8 to such sections three hundred one-a and three hundred one-e and shall
9 pay such amount so certified and deducted into the state treasury to the
10 credit of the general fund. As soon as practicable after April first,
11 nineteen hundred ninety-one, nineteen hundred ninety-two and nineteen
12 hundred ninety-three, but before June fifteenth of each such year, the
13 commissioner shall determine the amount of the utility tax credit which
14 has been actually used to reduce tax liability under such section one
15 hundred eighty-six-a and shall certify the difference between such actu-
16 al amount and the earlier estimated amount. Also, subsequently, during
17 the fiscal year when the commissioner becomes aware of changes or
18 modifications with respect to actual credit usage, the commissioner
19 shall, as soon as practicable, issue a certification setting forth the
20 amount of any required adjustment to the amount of actual credit usage
21 previously certified. After receiving the certificate of the commission-
22 er with respect to actual credit usage or modification of the same, the
23 comptroller shall forthwith adjust general fund receipts and the reven-
24 ues to be deposited or disposed of under this article to reflect the
25 difference so certified by the commissioner. The commissioner shall not
26 be liable for any overestimate or underestimate of the amount of the
27 utility credit which has been accrued to reduce tax liability under such
28 section one hundred eighty-six-a. Nor shall the commissioner be liable
29 for any inaccuracy in any certificate with respect to the amount of such
30 credit actually used or any required adjustment with respect to actual
31 credit usage, but the commissioner shall as soon as practicable after
32 discovery of any error adjust the next certification under this section
33 to reflect any such error.
34 On or before July thirty-first, nineteen hundred ninety-two and on or
35 before July thirty-first, nineteen hundred ninety-three, the commission-
36 er shall conduct the following reconciliation with respect to the
37 preceding fiscal year: he shall multiply the total of all taxes, penal-
38 ties and interest, after refunds and reimbursements, which are derived
39 from the motor fuel component, the automotive-type diesel motor fuel
40 component and the aviation gasoline component by twenty fifty-fifths;
41 the total of all taxes, penalties and interest, after refunds and
42 reimbursements, which are derived from the nonautomotive-type diesel
43 motor fuel component (excluding taxes, penalties and interest which are
44 derived from product with respect to which the credit or reimbursement
45 provided by section three hundred one-d is taken) by twenty-fiftieths;
46 and all taxes, penalties and interest, after refunds and reimbursements,
47 which are derived from the residual petroleum product component (exclud-
48 ing taxes, penalties and interest which are derived from product with
49 respect to which the credit or reimbursement provided by section three
50 hundred one-d is taken) by twenty-fortieths. The products of the forego-
51 ing multiplications shall be added together and the resulting sum of
52 such products shall be compared with the total of the amounts initially
53 distributed during such fiscal year with respect to such components
54 (excluding receipts derived from product with respect to which the cred-
55 it or reimbursement provided by section three hundred one-d is taken and
56 excluding any amount which represents a reconciliation adjustment pursu-
A. 6837 7
1 ant to this paragraph) pursuant to section one hundred seventy-one-a of
2 this chapter which represented thirty-five percent of the total, after
3 refunds and reimbursements, of all taxes, penalties and interest
4 collected or received during such fiscal year under sections three
5 hundred one-a and three hundred one-e during the months of such fiscal
6 year with respect to such components. The commissioner shall then certi-
7 fy the amount of such difference to the comptroller. If the amounts
8 initially distributed in such fiscal year are greater than the sum of
9 such products, the comptroller shall withhold an amount equal to twen-
10 ty-seven and three-tenths percent of such difference from the first
11 moneys otherwise payable to the general fund pursuant to this subdivi-
12 sion and shall pay such amount to the mass transportation operating
13 assistance fund to the credit of the metropolitan mass transportation
14 operating assistance account and the public transportation systems oper-
15 ating assistance account thereof in the aforestated manner. If the
16 amounts initially distributed in such fiscal year are less than the sum
17 of such products, the comptroller shall withhold an amount equal to
18 twenty-seven and three-tenths percent of such difference from the first
19 moneys otherwise payable to the mass transportation operating assistance
20 fund pursuant to this subdivision and shall pay such amount to the
21 general fund.
22 When the commissioner becomes aware of changes or modifications with
23 respect to the distribution of revenue under this article, the commis-
24 sioner shall, as soon as practicable, issue a certification setting
25 forth the amount of any required adjustment. After receiving the certif-
26 icate of the commissioner with respect to any adjustments, the comp-
27 troller shall forthwith adjust general fund receipts and the revenues to
28 be deposited or disposed of under this article to reflect the difference
29 so certified by the commissioner. The commissioner shall not be liable
30 for any overestimate or underestimate of the amount of the distribution.
31 Nor shall the commissioner be liable for any inaccuracy in any certif-
32 icate with respect to the amount of the distribution or any required
33 adjustment with respect to the distribution, but the commissioner shall
34 as soon as practicable after discovery of any error adjust the next
35 certification under this section to reflect any such error.
36 Prior to making deposits as provided in this subdivision, the comp-
37 troller shall retain such amount as the commissioner may determine to be
38 necessary, subject to the approval of the director of the budget, for
39 reasonable costs of the department in administering and collecting the
40 taxes deposited pursuant to this subdivision and for refunds and
41 reimbursements with respect to such taxes, out of which the comptroller
42 shall pay any refunds or reimbursements of such taxes to which taxpayers
43 shall be entitled.
44 § 5. This act shall take effect October 1, 2009; provided however that
45 sections one and two of this act shall expire and be deemed repealed
46 December 31, 2011, and sections three and four of this act shall take
47 effect January 1, 2012. Effective immediately the commissioner of trans-
48 portation and the commissioner of taxation and finance are authorized to
49 promulgate any rules and regulations necessary for the timely implemen-
50 tation of this act on or before its effective date.
