Rpld §301-a sub (g) ¶4, sub (f) ¶3, §301-c subs (i), (j) & (l), §301-d, §301-e sub (f), §1105 sub (c) ¶3 sub¶
(xi), §1115 sub (a) ¶9, amd Tax L, generally
Relates to tax on sales of motor fuel and petroleum products and makes conforming changes; repeals provisions relating to manufacturing gallonage for purposes of the imposition of certain taxes; repeals provisions relating to reimbursement; repeals provisions relating to a utility credit or reimbursement; repeals provisions relating to an aviation fuel business which services four or more cities; repeals provisions relating to services rendered with respect to certain property; repeals provisions relating to fuel sold to an airline for use in its airplanes.
STATE OF NEW YORK
________________________________________________________________________
3606--A
2025-2026 Regular Sessions
IN SENATE
January 28, 2025
___________
Introduced by Sens. KRUEGER, BRISPORT, CLEARE, FERNANDEZ, GIANARIS,
GONZALEZ, GOUNARDES, HARCKHAM, HOYLMAN-SIGAL, JACKSON, KAVANAGH, MAY,
MYRIE, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRANO, STAVISKY
-- read twice and ordered printed, and when printed to be committed to
the Committee on Commerce, Economic Development and Small Business --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to tax on sales of motor fuel
and petroleum products and to make conforming changes; to amend the
tax law, in relation to taxes not authorized and the disposition of
revenue; to repeal paragraph 3 of subdivision (f) and paragraph 4 of
subdivision (g) of section 301-a of the tax law relating to manufac-
turing gallonage for purposes of the imposition of certain taxes; to
repeal subdivisions (i), (j), and (l) of section 301-c of the tax law
relating to reimbursement; to repeal section 301-d of the tax law
relating to a utility credit or reimbursement; to repeal subdivision
(f) of section 301-e of the tax law relating to an aviation fuel busi-
ness which services four or more cities; to repeal subparagraph (xi)
of paragraph 3 of subdivision (c) of section 1105 of the tax law
relating to services rendered with respect to certain property; and to
repeal paragraph 9 of subdivision (a) of section 1115 of the tax law
relating to fuel sold to an airline for use in its airplanes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "Stop Climate Polluter Handouts Act".
3 § 2. Subdivision (m) of section 301-a of the tax law, as added by
4 section 20 of part K of chapter 61 of the laws of 2011, is amended to
5 read as follows:
6 (m) Special rate adjustment for certain vessels. Notwithstanding any
7 provision of this section to the contrary, the use of non-highway diesel
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06545-03-5
S. 3606--A 2
1 motor fuel in the engine of a vessel to propel such vessel shall be
2 subject to tax at the motor fuel and highway diesel motor fuel rate
3 provided for in this section, and shall be subject to the provisions of
4 section three hundred one-j of this article, including the adjustment
5 set forth in paragraph [four] three of subdivision (a) of such section
6 three hundred one-j. A credit or refund shall be available to the extent
7 tax paid on gallonage used to propel any such vessel exceeds the amount
8 of tax due based on the tax rate set forth herein. Provided, however,
9 that the commissioner shall require such documentary proof to qualify
10 for any credit or reimbursement provided hereunder as the commissioner
11 deems appropriate.
12 § 3. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g)
13 of section 301-a of the tax law are REPEALED.
14 § 4. Subdivisions (a) and (d) of section 301-b of the tax law, subdi-
15 vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of
16 subdivision (a) as amended by section 3 of part E of chapter 59 of the
17 laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by
18 section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi-
19 sion (d) as amended by section 21 of part K of chapter 61 of the laws of
20 2011, are amended to read as follows:
21 (a) Products. (1) [Kerosene sold or used by a petroleum business which
22 is registered under article twelve-A of this chapter as a distributor of
23 diesel motor fuel so long as (i) such product has not been blended or
24 mixed with any other product constituting diesel motor fuel or motor
25 fuel or a residual petroleum product and (ii) such product is not used
26 by the petroleum business as fuel to operate a motor vehicle or sold by
27 such petroleum business to a consumer for use as fuel to operate a motor
28 vehicle.
29 (2) Kero-jet fuel (i) sold by a petroleum business which is registered
30 under article twelve-A of this chapter as a distributor of diesel motor
31 fuel to a consumer for use exclusively as jet aircraft fuel or to a
32 petroleum business registered under such article twelve-A as a "distrib-
33 utor of kero-jet fuel only" where such fixed base operator is engaged
34 solely in making or offering to make retail sales not in bulk of kero-
35 jet fuel directly into the fuel tank of an airplane for the purpose of
36 operating such airplane, (ii) used by a petroleum business, registered
37 under article twelve-A of this chapter as a distributor of diesel motor
38 fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in
39 bulk by a petroleum business registered under article twelve-A of this
40 chapter as a "distributor of kero-jet fuel only" where such fuel is
41 delivered directly into the fuel tank of a jet airplane for use in the
42 operation of such airplane.
43 (3)] Aviation gasoline, meeting the specifications set forth in Ameri-
44 can Standard Testing Material Specification D910 or Military Specifica-
45 tion MIL-G-5572, which is imported or caused to be imported into this
46 state by a petroleum business which is registered under article twelve-A
47 of this chapter as a distributor of motor fuel or produced, refined,
48 manufactured or compounded in this state by such a petroleum business.
49 [(4) Residual petroleum product sold by a petroleum business regis-
50 tered under this article as a residual petroleum product business if
51 such product is sold by such petroleum business to a consumer for use
52 exclusively as bunker fuel for vessels or if such product is used by
53 such petroleum business exclusively as bunker fuel in its own vessels.
54 (5)] (2) Liquefied petroleum gases, such as butane, ethane or propane,
55 used for purposes other than as motor fuel in the operation of a motor
S. 3606--A 3
1 vehicle or for use in the operation of a pleasure or recreational motor
2 boat or using or consuming liquefied petroleum gas for such purpose.
3 [(6)] (3) E85 imported or caused to be imported into this state or
4 produced, refined, manufactured or compounded in this state by a petro-
5 leum business registered under article twelve-A of this chapter, as a
6 distributor of motor fuel, and then sold by such petroleum business and
7 delivered to a filling station and placed in a storage tank of such
8 filling station for such E85 to be dispensed directly into a motor vehi-
9 cle for use in the operation of such vehicle.
10 [(7)] (4) (i) Partial B20 exemption. B20 imported or caused to be
11 imported into this state or produced, refined, manufactured or
12 compounded in this state by a petroleum business registered under arti-
13 cle twelve-A of this chapter, as a distributor of diesel motor fuel, and
14 then sold by such petroleum business.
15 (ii) Calculation of partial exemption. The amount of the partial
16 exemption under this paragraph shall be determined by multiplying the
17 quantity of B20 times twenty percent of the applicable taxes otherwise
18 imposed by this article on such fuel.
19 [(8)] (5) CNG or hydrogen.
20 (d) Sales to consumers for heating purposes. [(1)] Total residential
21 heating exemption. Non-highway diesel motor fuel sold by a petroleum
22 business registered under article twelve-A of this chapter as a distrib-
23 utor of diesel motor fuel or residual petroleum product sold by a petro-
24 leum business registered under this article as a residual petroleum
25 product business to the consumer exclusively for residential heating
26 purposes only if such non-highway diesel motor fuel is delivered into a
27 storage tank which is not equipped with a hose or other apparatus by
28 which such fuel can be dispensed into the fuel tank of a motor vehicle
29 and such storage tank is attached to the heating unit burning such fuel.
30 [(2) Partial non-residential heating exemption. (A) Non-highway diesel
31 motor fuel sold by a petroleum business registered under article
32 twelve-A of this chapter as a distributor of diesel motor fuel or resi-
33 dual petroleum product sold by a petroleum business registered under
34 this article as a residual petroleum product business to the consumer
35 exclusively for heating, other than residential heating purposes only if
36 such non-highway diesel motor fuel is delivered into a storage tank
37 which is not equipped with a hose or other apparatus by which such fuel
38 can be dispensed into the fuel tank of a motor vehicle and such storage
39 tank is attached to the heating unit burning such fuel (B) Calculation
40 of partial exemption. The partial exemption under this paragraph shall
41 be determined by multiplying the quantity of non-highway diesel motor
42 fuel and residual petroleum product eligible for the exemption times the
43 sum of the then current rate of the supplemental tax imposed by section
44 three hundred one-j of this article and forty-six percent of the then
45 current rate of the tax imposed by section three hundred one-a of this
46 article, with respect to the specific non-highway diesel motor fuel or
47 residual petroleum product rate, as the case may be.]
48 § 5. The subdivision heading and paragraph 1 of subdivision (c) of
49 section 301-b of the tax law, as added by chapter 190 of the laws of
50 1990, are amended to read as follows:
51 Sales to [New York state and] the federal government. (1) Motor fuel
52 imported or caused to be imported into this state or produced, refined,
53 manufactured or compounded in this state by a petroleum business regis-
54 tered under article twelve-A of this chapter, as a distributor of motor
55 fuel, and then sold by such petroleum business to an organization
56 described in paragraph [one or] two of subdivision (a) of section eleven
S. 3606--A 4
1 hundred sixteen of this chapter where such motor fuel is used by such
2 organization for its own use or consumption.
3 § 6. The opening paragraph and subdivisions (a) and (b) of section
4 301-c of the tax law, the opening paragraph as amended by section 2 of
5 part T of chapter 59 of the laws of 2022, subdivision (a) as amended by
6 section 23 of part K of chapter 61 of the laws of 2011, and subdivision
7 (b) as amended by chapter 330 of the laws of 1991, are amended to read
8 as follows:
9 A subsequent purchaser shall be eligible for reimbursement of tax with
10 respect to the following gallonage, subsequently sold by such purchaser
11 in accordance with subdivision (a), (b), (e), (h), [(j), (k), (n) or
12 (o)] (i), (k) or (l) of this section or used by such purchaser in
13 accordance with subdivision (c), (d), (f), (g), [(i), (l), (m)] (j) or
14 [(q)] (n) of this section, which gallonage has been included in the
15 measure of the tax imposed by this article on a petroleum business:
16 (a) [Non-highway Diesel motor fuel used for heating purposes. (1)]
17 Total residential heating reimbursement. Non-highway Diesel motor fuel
18 purchased in this state and sold by such purchaser to a consumer for use
19 exclusively for residential heating purposes but only where (i) such
20 non-highway diesel motor fuel is delivered into a storage tank which is
21 not equipped with a hose or other apparatus by which such non-highway
22 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle
23 and such storage tank is attached to the heating unit burning such non-
24 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article
25 has been paid with respect to such non-highway diesel motor fuel and the
26 entire amount of such tax has been absorbed by such purchaser, and (iii)
27 such purchaser possesses documentary proof satisfactory to the commis-
28 sioner evidencing the absorption by it of the entire amount of the tax
29 imposed pursuant to this article. Provided, however, that the commis-
30 sioner is authorized, in the event that the commissioner determines that
31 it would not threaten the integrity of the administration and enforce-
32 ment of the tax imposed by this article, to provide a reimbursement with
33 respect to a retail sale to a consumer for residential heating purposes
34 of less than ten gallons of non-highway diesel motor fuel provided such
35 fuel is not dispensed into the tank of a motor vehicle.
36 [(2) Partial non-residential heating reimbursement. (A) Non-highway
37 Diesel motor fuel purchased in this state and sold by such purchaser to
38 a consumer for use exclusively for heating, other than for residential
39 heating purposes, but only where (i) such non-highway diesel motor fuel
40 is delivered into a storage tank which is not equipped with a hose or
41 other apparatus by which such non-highway Diesel motor fuel can be
42 dispensed into the fuel tank of a motor vehicle and such storage tank is
43 attached to the heating unit burning such non-highway Diesel motor fuel,
44 (ii) the tax imposed pursuant to this article has been paid with respect
45 to such non-highway diesel motor fuel and the entire amount of such tax
46 has been absorbed by such purchaser, and (iii) such purchaser possesses
47 documentary proof satisfactory to the commissioner evidencing the
48 absorption by it of the entire amount of the tax imposed pursuant to
49 this article.
50 (B) Calculation of partial reimbursement. Notwithstanding any other
51 provision of this article, the amount of the reimbursement under this
52 paragraph shall be determined by multiplying the quantity of non-highway
53 diesel motor fuel eligible for the reimbursement times the sum of the
54 then current rate of the supplemental tax imposed by section three
55 hundred one-j of this article and forty-six percent of the then current
56 rate of the tax imposed by section three hundred one-a of this article,
S. 3606--A 5
1 with respect to the non-highway diesel motor fuel rate, as the case may
2 be.]
3 (b) Sales to [New York state and] the federal government. Motor fuel
4 and diesel motor fuel purchased in this state and sold by such purchaser
5 in this state to an organization described in paragraph [one or] two of
6 subdivision (a) of section eleven hundred sixteen of this chapter where
7 (i) such motor fuel or diesel motor fuel is for such organization's own
8 use or consumption, (ii) the tax imposed pursuant to this article has
9 been paid with respect to such motor fuel or diesel motor fuel and the
10 entire amount of such tax has been absorbed by such purchaser and, (iii)
11 such purchaser possesses documentary proof satisfactory to the commis-
12 sioner of taxation and finance evidencing the absorption by it of the
13 entire amount of the tax imposed pursuant to this article. Provided,
14 however, that the commissioner [of taxation and finance] shall require
15 such documentary proof to qualify for any reimbursement of tax provided
16 by this section as the commissioner deems appropriate, including the
17 expansion of any certification required pursuant to section two hundred
18 eighty-five-a or two hundred eighty-five-b of this chapter to cover the
19 taxes imposed pursuant to this article.
20 § 6-a. The opening paragraph of section 301-c of the tax law, as
21 amended by section 3 of part T of chapter 59 of the laws of 2022, is
22 amended to read as follows:
23 A subsequent purchaser shall be eligible for reimbursement of tax with
24 respect to the following gallonage, subsequently sold by such purchaser
25 in accordance with subdivision (a), (b), (e), (h), [(j)] or [(k)] (i) of
26 this section or used by such purchaser in accordance with subdivision
27 (c), (d), (f), (g), [(i), (l), (m)] (j) or [(q)] (n) of this section,
28 which gallonage has been included in the measure of the tax imposed by
29 this article on a petroleum business:
30 § 7. Subdivisions (i), (j) and (l) of section 301-c of the tax law are
31 REPEALED.
32 § 8. Subdivisions (k), (m), (n), (o), (p) and (q) of section 301-c of
33 the tax law are relettered subdivisions (i), (j), (k), (l), (m) and (n).
34 § 9. Section 301-d of the tax law is REPEALED.
35 § 10. Subdivision (f) of section 301-e of the tax law is REPEALED.
36 § 11. Subdivision (a) of section 301-j of the tax law, as amended by
37 chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by
38 section 29 of part K of chapter 61 of the laws of 2011, is amended to
39 read as follows:
40 (a) Imposition of tax. (1) In addition to the taxes imposed by
41 sections three hundred one-a and three hundred one-e of this article,
42 there is hereby imposed upon every petroleum business subject to tax
43 imposed under section three hundred one-a of this article and every
44 aviation fuel business subject to the aviation gasoline component of the
45 tax imposed under section three hundred one-e of this article, a supple-
46 mental monthly tax for each or any part of a taxable month at a rate of
47 six and eight-tenths cents per gallon with respect to the products
48 included in each component of the taxes imposed by such section three
49 hundred one-a and the aviation gasoline component of the tax imposed by
50 such section three hundred one-e of this article.
51 (2) [Provided, however, "commercial gallonage," as such term is
52 defined in subdivision (k) of section three hundred of this article,
53 shall be exempt from the measure of the tax imposed under this section.
54 (3)] Provided, further, "railroad diesel," as such term is defined in
55 subdivision (l) of section three hundred of this article, shall be
56 exempt from the measure of the tax imposed under this section.
S. 3606--A 6
1 [(4)] (3) Provided, further, a separate per gallon rate shall apply
2 with respect to highway diesel motor fuel. Such rate shall be determined
3 by taking the adjusted rate per gallon of tax imposed under paragraph
4 one of this subdivision as adjusted in accordance with paragraph [five]
5 four of this subdivision and subtracting therefrom one and three-quar-
6 ters cents. Commencing January first, two thousand twelve, and each
7 January thereafter, the per gallon rate applicable to highway diesel
8 motor fuel shall be the adjusted rate under paragraph one of this subdi-
9 vision as adjusted in accordance with paragraph [five] four of this
10 subdivision which commences on such date minus one and three-quarters
11 cents. The resulting rate under this paragraph shall be expressed in
12 hundredths of a cent.
13 [(5)] (4) Except as herein provided, the tax imposed under this
14 section shall be calculated in the same respective manner as the taxes
15 imposed by section three hundred one-a and section three hundred one-e
16 of this article. Except [for section three hundred one-d and except] as
17 otherwise provided in this section, all the provisions of this article
18 applicable to the taxes imposed by sections three hundred one-a and
19 three hundred one-e of this article, shall apply with respect to the
20 supplemental tax imposed by this section to the same extent as if it
21 were respectively imposed by such sections.
22 § 12. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of
23 subdivision (c) of section 1105 of the tax law, subparagraph (ix) of
24 paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph
25 (x) of paragraph 3 as added by section 1 of part FF of chapter 407 of
26 the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws
27 of 2005, are amended to read as follows:
28 (ix) [such services rendered with respect to tangible property used or
29 consumed directly and predominantly in the production for sale of gas or
30 oil by manufacturing, processing, generating, assembling, refining,
31 mining, or extracting.
32 (x)] such services rendered with respect to property described in
33 paragraph twelve-a of subdivision (a) of section eleven hundred fifteen
34 of this article.
35 (5) Maintaining, servicing or repairing real property, property or
36 land, as such terms are defined in the real property tax law, whether
37 the services are performed in or outside of a building, as distinguished
38 from adding to or improving such real property, property or land, by a
39 capital improvement as such term capital improvement is defined in para-
40 graph nine of subdivision (b) of section eleven hundred one of this
41 article, but excluding (i) services rendered by an individual who is not
42 in a regular trade or business offering [his] such individual's services
43 to the public, (ii) [services rendered directly with respect to real
44 property, property or land used or consumed directly and predominantly
45 in the production for sale of gas or oil by manufacturing, processing,
46 generating, assembling, refining, mining, or extracting, (iii)] services
47 rendered with respect to real property, property or land used or
48 consumed predominantly either in the production of tangible personal
49 property, for sale, by farming or in a commercial horse boarding opera-
50 tion, or in both and [(iv)] (iii) services of removal of waste material
51 from a facility regulated as a transfer station or construction and
52 demolition debris processing facility by the department of environmental
53 conservation, provided that the waste material to be removed was not
54 generated by the facility.
55 § 13. Subparagraph (xi) of paragraph 3 of subdivision (c) of section
56 1105 of the tax law is REPEALED.
S. 3606--A 7
1 § 14. Paragraph 9 of subdivision (a) of section 1115 of the tax law is
2 REPEALED.
3 § 15. Paragraphs 3 and 4 of subdivision (a) of section 1221 of the tax
4 law, paragraph 3 as amended by chapter 2 of the laws of 1995 and para-
5 graph 4 as added by chapter 93 of the laws of 1965, are amended and a
6 new paragraph 5 is added to read as follows:
7 (3) except in accordance with the provisions of section twenty-b of
8 the general city law, a tax upon gross incomes, gross operating incomes
9 or gross receipts of persons subject to taxation under the provisions of
10 section one hundred eighty-six-a or one hundred eighty-six-e of this
11 chapter, but this clause shall not be deemed to restrict the power to
12 tax persons not subject to taxation under such section of this chapter
13 who are otherwise subject to taxation under subdivision (a) of section
14 twelve hundred one of this article, nor the power to provide for credits
15 against any tax imposed pursuant to such subdivision, nor to limit the
16 rates of taxes authorized to be imposed by such subdivision [(a) of such
17 section twelve hundred one], [or]
18 (4) a tax upon interest or dividends received from a corporation by a
19 person referred to in this section[.], or
20 (5) a tax on fuel sold to an airline for use in its airplanes.
21 § 16. Section 1148 of the tax law is amended by adding a new subdivi-
22 sion (d) to read as follows:
23 (d) Provided, however, before such funds are distributed pursuant to
24 subdivision (a) of this section, any revenue collected by the state,
25 from fuel sold to an airline for use in its airplanes, under the author-
26 ity granted to the state by this article shall be dedicated to the
27 aviation purpose account of the dedicated highway and bridge trust fund,
28 provided that the portion for the airport or aviation state program
29 shall be no less than forty million dollars annually, with the remaining
30 revenue collected from such taxes being dedicated to the capital
31 projects fund for aviation purposes required in connection therewith of
32 airports and aviation facilities, equipment and related projects.
33 § 17. Paragraph (ii) of subdivision (b) of section 1115 of the tax
34 law, as amended by section 30 of part Y of chapter 63 of the laws of
35 2000, is amended to read as follows:
36 (ii) [Gas, electricity] Electricity, refrigeration and steam, and
37 [gas,] electric, refrigeration and steam service of whatever nature for
38 use or consumption directly and exclusively in research and development
39 in the experimental or laboratory sense shall be exempt from the tax
40 imposed under subdivision (b) of section eleven hundred five and the
41 compensating use tax imposed under section eleven hundred ten of this
42 article. Such research and development shall not be deemed to include
43 the ordinary testing or inspection of materials or products for quality
44 control, efficiency surveys, management studies, consumer surveys,
45 advertising, promotions or research in connection with literary, histor-
46 ical or similar projects.
47 § 18. Paragraph 1 of subdivision (c) of section 1115 of the tax law,
48 as amended by section 7 of part B of chapter 63 of the laws of 2000, is
49 amended to read as follows:
50 (1) [Fuel, gas, electricity] Electricity, refrigeration and steam, and
51 [gas,] electric, refrigeration and steam service of whatever nature for
52 use or consumption directly and exclusively in the production of tangi-
53 ble personal property, [gas,] electricity, refrigeration or steam, for
54 sale, by manufacturing, processing, assembling, generating, refining,
55 mining or extracting shall be exempt from the taxes imposed under subdi-
S. 3606--A 8
1 visions (a) and (b) of section eleven hundred five and the compensating
2 use tax imposed under section eleven hundred ten of this article.
3 § 19. Subdivision (j) of section 1115 of the tax law, as amended by
4 section 41 of part K of chapter 61 of the laws of 2011, is amended to
5 read as follows:
6 (j) The exemptions provided in this section shall not apply to the tax
7 required to be prepaid pursuant to the provisions of section eleven
8 hundred two of this article nor to the taxes imposed by sections eleven
9 hundred five and eleven hundred ten of this article with respect to
10 receipts from sales and uses of motor fuel or diesel motor fuel, except
11 that the exemptions provided in [paragraphs nine and] paragraph forty-
12 two of subdivision (a) of this section shall apply to the tax required
13 to be prepaid pursuant to the provisions of section eleven hundred two
14 of this article and to the taxes imposed by sections eleven hundred five
15 and eleven hundred ten of this article with respect to sales and uses of
16 [kero-jet fuel,] CNG, hydrogen and E85, provided, however, the exemption
17 allowed for E85 shall be subject to the additional requirements provided
18 in section eleven hundred two of this article with respect to E85. The
19 exemption provided in subdivision (c) of this section shall apply to
20 sales and uses of non-highway diesel motor fuel but only if all of such
21 fuel is consumed other than on the public highways of this state. The
22 exemption provided in subdivision (c) of this section shall apply to
23 sales and uses of non-highway diesel motor fuel for use or consumption
24 either in the production for sale of tangible personal property by farm-
25 ing or in a commercial horse boarding operation, or in both but only if
26 all of such fuel is consumed other than on the public highways of this
27 state (except for the use of the public highways to reach adjacent farm-
28 lands or adjacent lands used in a commercial horse boarding operation,
29 or both).
30 § 19-a. Subdivision (j) of section 1115 of the tax law, as amended by
31 section 41-a of part K of chapter 61 of the laws of 2011, is amended to
32 read as follows:
33 (j) The exemptions provided in this section shall not apply to the tax
34 required to be prepaid pursuant to the provisions of section eleven
35 hundred two of this article nor to the taxes imposed by sections eleven
36 hundred five and eleven hundred ten of this article with respect to
37 receipts from sales and uses of motor fuel or diesel motor fuel[, except
38 that the exemption provided in paragraph nine of subdivision (a) of this
39 section shall apply to the tax required to be prepaid pursuant to the
40 provisions of section eleven hundred two of this article and to the
41 taxes imposed by sections eleven hundred five and eleven hundred ten of
42 this article with respect to sales and uses of kero-jet fuel]. The
43 exemption provided in subdivision (c) of this section shall apply to
44 sales and uses of non-highway diesel motor fuel but only if all of such
45 fuel is consumed other than on the public highways of this state. The
46 exemption provided in subdivision (c) of this section shall apply to
47 sales and uses of non-highway diesel motor fuel for use or consumption
48 either in the production for sale of tangible personal property by farm-
49 ing or in a commercial horse boarding operation, or in both but only if
50 all of such fuel is consumed other than on the public highways of this
51 state (except for the use of the public highways to reach adjacent farm-
52 lands or adjacent lands used in a commercial horse boarding operation,
53 or both).
54 § 20. Subdivision (s) of section 1115 of the tax law, as added by
55 chapter 201 of the laws of 1995, is relettered subdivision (p).
S. 3606--A 9
1 § 21. Subdivision (w) of section 1115 of the tax law, as added by
2 section 32 of part Y of chapter 63 of the laws of 2000, is amended to
3 read as follows:
4 (w) Receipts from the sale of [gas or] electricity or [gas or] elec-
5 tric service of whatever nature and consideration given or contracted to
6 be given for, or for the use of, [gas or] electricity or [gas or] elec-
7 tric service of whatever nature purchased for use or consumption direct-
8 ly and exclusively to provide [gas or] electric service of whatever
9 nature consisting of operating [a gas pipeline or gas distribution line
10 or] an electric transmission or distribution line [and ensuring the
11 necessary working pressure in an underground gas storage facility] shall
12 be exempt from sales and compensating use taxes imposed by this article.
13 Such exempt [gas or] electricity or [gas or] electric service of whatev-
14 er nature shall include, but shall not be limited to, such [gas or]
15 electricity or [gas or] electric service of whatever nature used or
16 consumed directly and exclusively to (1) [ensure necessary working pres-
17 sure in a gas pipeline used to transport, transmit or distribute gas,
18 (2) operate compressors used to transport, transmit or distribute gas
19 through such a gas pipeline or distribution line or used to ensure
20 necessary working pressure in such a storage facility, (3) operate heat-
21 ers to prevent gas in such a pipeline or distribution line from freez-
22 ing, (4) operate equipment which removes impurities and moisture from
23 gas in such a pipeline or distribution line, (5)] operate substations
24 and equipment related to electric transmission and distribution lines
25 such as transformers, capacitors, meters, switches, communication
26 devices and heating and cooling equipment, and [(6)] (2) ensure the
27 reliability of electricity or electric service transmitted or distrib-
28 uted through such lines, for example, by operating reserve capacity
29 machinery and equipment.
30 § 22. Subdivision (k) of section 300 of the tax law, as amended by
31 section 17 of part K of chapter 61 of the laws of 2011, is amended to
32 read as follows:
33 (k) "Commercial gallonage" means gallonage (1) which is non-highway
34 diesel motor fuel or residual petroleum product, (2) [which is included
35 in the full measure of the non-highway diesel motor fuel component or
36 the residual petroleum product component of the tax imposed under
37 section three hundred one-a of this article, (3)] which does not (and
38 will not) qualify (A) [for the utility credit or reimbursement provided
39 for in section three hundred one-d of this article, (B)] as "manufactur-
40 ing gallonage", as such term is defined in subdivision (m) of this
41 section, [(C)] or (B) for the not-for-profit organization exemption
42 provided for in subdivision (h) of section three hundred one-b of this
43 article, [or (D) for the heating exemption provided for in paragraph two
44 of subdivision (d) of section three hundred one-b of this article or the
45 heating reimbursement provided for in paragraph two of subdivision (a)
46 of section three hundred one-c of this article,] and [(4)] (3) which
47 will not be used nor has been used in the fuel tank connecting with the
48 engine of a vessel. No gallonage shall qualify as "commercial gallonage"
49 where such gallonage is eligible for the [(i) utility credit or
50 reimbursement under such section three hundred one-d of this article,
51 (ii) "manufacturing exemption" under paragraph three of subdivision (f)
52 of section three hundred one-a of this article, (iii)] not-for-profit
53 organization exemption under subdivision (h) of section three hundred
54 one-b of this article[, or (iv) heating exemption provided for in para-
55 graph two of subdivision (d) of section three hundred one-b of this
56 article or the heating reimbursement provided for in paragraph two of
S. 3606--A 10
1 subdivision (a) of section three hundred one-c of this article]. The
2 commissioner shall require such documentary proof to substantiate the
3 classification of product as "commercial gallonage" as the commissioner
4 deems appropriate.
5 § 23. Paragraph 1 of subdivision (f) of section 301-b of the tax law,
6 as amended by section 21 of part K of chapter 61 of the laws of 2011, is
7 amended to read as follows:
8 (1) Residual petroleum product and non-highway diesel motor fuel sold
9 to an electric corporation, [as described in subdivision (a) of section
10 three hundred one-d of this article,] as defined in subdivision thirteen
11 of section two of the public service law, subject to the supervision of
12 the department of public service, which is registered with the depart-
13 ment as a petroleum business tax direct pay permittee, and used by such
14 electric corporation to fuel generators for the purpose of manufacturing
15 or producing electricity where such electric corporation provides a copy
16 of a direct pay permit authorized and issued by the commissioner, to the
17 petroleum business making such sale. If so registered, such corporation
18 shall be a taxpayer under this article and (i) such electric corporation
19 shall file a return monthly and pay the applicable tax under this arti-
20 cle, after the application of allowable credits, on all such purchases
21 directly to the commissioner, (ii) such electric corporation shall be
22 subject to all of the provisions of this article relating to the respon-
23 sibilities and liabilities of taxpayers under this article with respect
24 to such residual petroleum product and non-highway diesel motor fuel.
25 § 24. This act shall take effect immediately and shall apply to taxa-
26 ble years commencing on or after the first of January next succeeding
27 the date on which it shall have become a law; provided, however, that:
28 (a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of
29 section 301-b of the tax law made by section four of this act shall not
30 affect the repeal of such paragraphs and shall be deemed repealed there-
31 with;
32 (b) the amendments to the opening paragraph of section 301-c of the
33 tax law made by section six of this act shall be subject to the expira-
34 tion and reversion of such paragraph pursuant to section 19 of part W-1
35 of chapter 109 of the laws of 2006, as amended, when upon such date the
36 provisions of section six-a of this act shall take effect;
37 (c) the amendments to subdivisions (k) and (l) of section 301-c of the
38 tax law made by section eight of this act shall not affect the repeal of
39 such subdivisions and shall be deemed repealed therewith; and
40 (d) the amendments to subdivision (j) of section 1115 of the tax law
41 made by section nineteen of this act shall be subject to the expiration
42 and reversion of such subdivision pursuant to section 19 of part W-1 of
43 chapter 109 of the laws of 2006, as amended, when upon such date the
44 provisions of section nineteen-a of this act shall take effect.
