Eliminates provisions of law that require the payment and subsequent refund of the ten cent diesel excise tax and sales tax on diesel motor fuel when sold to operators of commercial fishing vessels for use in the operation of such vessels.
STATE OF NEW YORK
________________________________________________________________________
10934
IN ASSEMBLY
April 10, 2026
___________
Introduced by M. of A. SCHIAVONI -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an exemption from
the payment of the motor fuels tax and the sales tax on motor fuels
used in the operation of commercial fishing vessels
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 3 of section 282-a of the tax
2 law, as amended by section 3 of part W of chapter 59 of the laws of
3 2013, is amended to read as follows:
4 (b) The tax on the incidence of sale or use imposed by subdivision one
5 of this section shall not apply to: (i) the sale or use of non-highway
6 Diesel motor fuel, but only if all of such fuel is consumed other than
7 on the public highways of this state (except for the use of the public
8 highway by farmers to reach adjacent farmlands); provided, however, this
9 exemption shall in no event apply to a sale of non-highway Diesel motor
10 fuel which involves a delivery at a filling station or into a repository
11 which is equipped with a hose or other apparatus by which such fuel can
12 be dispensed into the fuel tank of a motor vehicle (except for delivery
13 at a farm site which qualifies for the exemption under subdivision (g)
14 of section three hundred one-b of this chapter); or (ii) a sale to the
15 consumer consisting of not more than twenty gallons of water-white kero-
16 sene to be used and consumed exclusively for heating purposes; or (iii)
17 the sale to or delivery at a filling station or other retail vendor of
18 water-white kerosene provided such filling station or other retail
19 vendor only sells such water-white kerosene exclusively for heating
20 purposes in containers of no more than twenty gallons; or (iv) a sale of
21 kero-jet fuel to an airline for use in its airplanes or a use of kero-
22 jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
23 by a registered distributor of Diesel motor fuel to a fixed base opera-
24 tor registered under this article as a distributor of kero-jet fuel only
25 where such fixed base operator is engaged solely in making or offering
26 to make retail sales not in bulk of kero-jet fuel directly into the fuel
27 tank of an airplane for the purpose of operating such airplane; or (vi)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05995-01-5
A. 10934 2
1 a retail sale not in bulk of kero-jet fuel by a fixed base operator
2 registered under this article as a distributor of kero-jet fuel only
3 where such fuel is delivered directly into the fuel tank of an airplane
4 for use in the operation of such airplane; or (vii) the sale of previ-
5 ously untaxed qualified biodiesel to a person registered under this
6 article as a distributor of Diesel motor fuel other than (A) a retail
7 sale to such person or (B) a sale to such person which involves a deliv-
8 ery at a filling station or into a repository which is equipped with a
9 hose or other apparatus by which such qualified biodiesel can be
10 dispensed into the fuel tank of a motor vehicle; or (viii) the sale of
11 previously untaxed highway Diesel motor fuel by a person registered
12 under this article as a distributor of Diesel motor fuel to a person
13 registered under this article as a distributor of Diesel motor fuel
14 where the highway Diesel motor fuel is either: (A) being delivered by
15 pipeline, railcar, barge, tanker or other vessel to a terminal, the
16 operator of which terminal is registered under section two hundred
17 eighty-three-b of this article, or (B) within such a terminal where it
18 has been so delivered. Provided, however, that the exemption set forth
19 in this subparagraph shall not apply to any highway Diesel motor fuel if
20 it is removed from a terminal, other than by pipeline, barge, tanker or
21 other vessel; or (ix) a sale of Diesel motor fuel to a "commercial fish-
22 erman", as such term is defined in subdivision (i) of section three
23 hundred of this chapter, at retail under the circumstances set forth in
24 paragraph one of subdivision (g) of section three hundred one-c of this
25 chapter, and where such commercial fishing vessel is operated by a
26 commercial fisherman.
27 § 2. Subdivision 4 of section 282-a of the tax law, as amended by
28 section 5 of part K of chapter 61 of the laws of 2011, is amended to
29 read as follows:
30 4. The tax imposed by this section on Diesel motor fuel shall be
31 passed through by the seller and included as part of the selling price
32 to each purchaser of such fuel. Provided, however, the amount of the tax
33 imposed by this section may be excluded from the selling price of Diesel
34 motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
35 tion described in paragraph (a) of subdivision three of this section
36 solely for the purpose stated therein; (ii) a sale of non-highway Diesel
37 motor fuel is made to a consumer but only if such non-highway Diesel
38 motor fuel is not delivered to a filling station, nor delivered into a
39 storage tank which is equipped with a hose or other apparatus by which
40 such fuel can be dispensed into the fuel tank of a motor vehicle; or
41 (iii) the sale to or delivery at a filling station or other retail
42 vendor of water-white kerosene provided such filling station or other
43 retail vendor only sells such water-white kerosene exclusively for heat-
44 ing purposes in containers of no more than twenty gallons; or (iv) a
45 sale of kero-jet fuel is made to an airline for use in its airplanes; or
46 (v) a sale of Diesel motor fuel is made to a "commercial fisherman", as
47 such term is defined in subdivision (i) of section three hundred of this
48 chapter, at retail under the circumstances set forth in paragraph one of
49 subdivision (g) of section three hundred one-c of this chapter, and
50 where such commercial fishing vessel is operated by a commercial fisher-
51 man.
52 § 3. Section 301-b of the tax law is amended by adding a new subdivi-
53 sion (k) to read as follows:
54 (k) Sales or uses of diesel motor fuel and residual petroleum product
55 for commercial fishing. Diesel motor fuel or residual petroleum product
56 sold to or used by a "commercial fisherman", as such term is defined in
A. 10934 3
1 subdivision (i) of section three hundred of this article, at retail
2 under the circumstances set forth in paragraph one of subdivision (g) of
3 section three hundred one-c of this article, and where such commercial
4 fishing vessel is operated by a commercial fisherman.
5 § 4. Subdivision (j) of section 1115 of the tax law, as amended by
6 section 41 of part K of chapter 61 of the laws of 2011, is amended to
7 read as follows:
8 (j) The exemptions provided in this section shall not apply to the tax
9 required to be prepaid pursuant to the provisions of section eleven
10 hundred two of this article nor to the taxes imposed by sections eleven
11 hundred five and eleven hundred ten of this article with respect to
12 receipts from sales and uses of motor fuel or diesel motor fuel, except
13 that the exemptions provided in paragraphs nine and forty-two of subdi-
14 vision (a) of this section shall apply to the tax required to be prepaid
15 pursuant to the provisions of section eleven hundred two of this article
16 and to the taxes imposed by sections eleven hundred five and eleven
17 hundred ten of this article with respect to sales and uses of kero-jet
18 fuel, CNG, hydrogen and E85, provided, however, the exemption allowed
19 for E85 shall be subject to the additional requirements provided in
20 section eleven hundred two of this article with respect to E85 and
21 except that the exemption provided in paragraph twenty-four of subdivi-
22 sion (a) of this section shall apply to the taxes imposed by sections
23 eleven hundred five and eleven hundred ten of this article with respect
24 to sales and uses of diesel motor fuel used in the operation of a fish-
25 ing vessel as described in paragraph twenty-four of subdivision (a) of
26 this section. The exemption provided in subdivision (c) of this section
27 shall apply to sales and uses of non-highway diesel motor fuel but only
28 if all of such fuel is consumed other than on the public highways of
29 this state. The exemption provided in subdivision (c) of this section
30 shall apply to sales and uses of non-highway diesel motor fuel for use
31 or consumption either in the production for sale of tangible personal
32 property by farming or in a commercial horse boarding operation, or in
33 both but only if all of such fuel is consumed other than on the public
34 highways of this state (except for the use of the public highways to
35 reach adjacent farmlands or adjacent lands used in a commercial horse
36 boarding operation, or both).
37 § 5. Subdivision (j) of section 1115 of the tax law, as amended by
38 section 41-a of part K of chapter 61 of the laws of 2011, is amended to
39 read as follows:
40 (j) The exemptions provided in this section shall not apply to the tax
41 required to be prepaid pursuant to the provisions of section eleven
42 hundred two of this article nor to the taxes imposed by sections eleven
43 hundred five and eleven hundred ten of this article with respect to
44 receipts from sales and uses of motor fuel or diesel motor fuel, except
45 that the exemption provided in paragraph nine of subdivision (a) of this
46 section shall apply to the tax required to be prepaid pursuant to the
47 provisions of section eleven hundred two of this article and to the
48 taxes imposed by sections eleven hundred five and eleven hundred ten of
49 this article with respect to sales and uses of kero-jet fuel and except
50 that the exemption provided in paragraph twenty-four of subdivision (a)
51 of this section shall apply to the taxes imposed by sections eleven
52 hundred five and eleven hundred ten of this article with respect to
53 sales and uses of diesel motor fuel used in the operation of a fishing
54 vessel as described in paragraph twenty-four of subdivision (a) of this
55 section. The exemption provided in subdivision (c) of this section
56 shall apply to sales and uses of non-highway diesel motor fuel but only
A. 10934 4
1 if all of such fuel is consumed other than on the public highways of
2 this state. The exemption provided in subdivision (c) of this section
3 shall apply to sales and uses of non-highway diesel motor fuel for use
4 or consumption either in the production for sale of tangible personal
5 property by farming or in a commercial horse boarding operation, or in
6 both but only if all of such fuel is consumed other than on the public
7 highways of this state (except for the use of the public highways to
8 reach adjacent farmlands or adjacent lands used in a commercial horse
9 boarding operation, or both).
10 § 6. This act shall take effect on the first day of a sales tax quar-
11 terly period, as described in subdivision (b) of section 1136 of the tax
12 law, next commencing at least ninety days after this act shall have
13 become a law; sections four and five of this act shall apply to sales
14 made under and uses occurring on or after the dates such sections four
15 and five shall have taken effect, respectively, although made or occur-
16 ring under a prior contract; and provided further that such amendments
17 made by section four of this act shall be subject to the expiration and
18 reversion of such subdivision pursuant to section 19 of part W-1 of
19 chapter 109 of the laws of 2006, as amended, when upon such date the
20 provisions of section five of this act shall take effect.
