STATE OF NEW YORK
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11583
IN ASSEMBLY
June 5, 2026
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Palmesano,
Ra) -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to suspending certain taxes on
motor fuel and diesel motor fuel; and providing for the repeal of such
provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 50 to read
2 as follows:
3 § 50. Suspension of certain taxes on motor fuel and diesel motor fuel.
4 (a) Definitions. For purposes of this section:
5 (1) "Distributor" shall have the same meaning as that term is defined
6 in subdivision one of section two hundred eighty-two of this chapter.
7 (2) "Motor fuel" shall have the same meaning as that term is defined
8 in subdivision two of section two hundred eighty-two of this chapter.
9 (3) "Diesel motor fuel" shall mean "highway diesel motor fuel" as
10 defined in subdivision sixteen-a of section two hundred eighty-two of
11 this chapter.
12 (4) The terms "retail sale", "sale" and "use" shall have the same
13 meanings as those terms are defined in section eleven hundred one of
14 this chapter.
15 (b) Notwithstanding any other law to the contrary, the following taxes
16 shall be suspended beginning on June first, two thousand twenty-six and
17 ending on December thirty-first, two thousand twenty-six:
18 (1) the taxes imposed on diesel motor fuel by subdivision one of
19 section two hundred eighty-two-a, and sections two hundred eighty-two-b
20 and two hundred eighty-two-c of this chapter;
21 (2) the taxes imposed on motor fuel by sections two hundred eighty-
22 four, two hundred eighty-four-a and two hundred eighty-four-c of this
23 chapter; and
24 (3) the prepaid sales taxes imposed on motor fuel and diesel motor
25 fuel by subdivision (a) of section eleven hundred two of this chapter.
26 (c) Notwithstanding any other law to the contrary, beginning on June
27 first, two thousand twenty-six and ending on December thirty-first, two
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16003-02-6
A. 11583 2
1 thousand twenty-six, the state sales and use taxes imposed by sections
2 eleven hundred five, eleven hundred nine and eleven hundred ten of this
3 chapter shall not apply to sales or uses of motor fuel or diesel motor
4 fuel, and the provisions of subdivision (e) and paragraphs one and two
5 of subdivision (m) of section eleven hundred eleven of this chapter
6 shall be suspended. Nothing in this subdivision shall affect the appli-
7 cation of the taxes imposed pursuant to the authority of article twen-
8 ty-nine of this chapter to motor fuel or diesel motor fuel.
9 (d) The taxes described in subdivisions (b) and (c) of this section
10 shall not be included in the price of motor fuel or diesel motor fuel
11 sold for the period beginning on June first, two thousand twenty-six and
12 ending on December thirty-first, two thousand twenty-six. Any retailer
13 that purchases motor fuel or diesel motor fuel during such period upon
14 which such taxes were previously paid and included in the price paid by
15 such retailer shall be entitled to a refund or credit of such taxes.
16 (e) Notwithstanding any other law to the contrary, beginning on June
17 first, two thousand twenty-six and ending on December thirty-first, two
18 thousand twenty-six, the composite rates of tax applicable for purposes
19 of subdivision two of section five hundred three-a and subdivision (b)
20 of section five hundred twenty-three of this chapter shall be determined
21 without reference to the suspension of the taxes described by subdivi-
22 sions (b) and (c) of this section, but shall be computed using the
23 respective rates in effect on May thirty-first, two thousand twenty-six.
24 (f) Notwithstanding any other provision of law to the contrary, on or
25 before the fifth day each month for the period beginning July, two thou-
26 sand twenty-six and ending January, two thousand twenty-seven, the comp-
27 troller shall, in consultation with the director of the division of the
28 budget, transfer from the general fund to the mass transportation oper-
29 ating assistance fund created by section eighty-eight-a of the state
30 finance law, the dedicated highway and bridge trust fund established by
31 section eighty-nine-b of such law, and the dedicated mass transportation
32 trust fund established by section eighty-nine-c of such law, amounts
33 equal to the revenue distributed to such funds from the taxes described
34 in subdivisions (b) and (c) of this section in state fiscal year two
35 thousand twenty-five--two thousand twenty-six, adjusted by the change in
36 such amounts projected for state fiscal year two thousand twenty-six--
37 two thousand twenty-seven as if the suspension of such taxes had not
38 occurred, as reflected in the state fiscal year two thousand twenty-six-
39 -two thousand twenty-seven enacted budget.
40 (g) Every person engaged in the retail sale of motor fuel or diesel
41 motor fuel or a distributor of such fuels, shall comply with the
42 provisions of this section by reducing the prices charged for motor fuel
43 and diesel motor fuel in an amount equal to any reduction in taxes
44 prepaid by the distributor or imposed on retail customers resulting from
45 the suspension of taxes on motor fuel and diesel motor fuel under this
46 section.
47 § 2. This act shall take effect immediately and shall expire and be
48 deemed repealed December 31, 2026.
