Eliminates state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizes localities to eliminate such taxes at the local level.
STATE OF NEW YORK
________________________________________________________________________
4930
2019-2020 Regular Sessions
IN ASSEMBLY
February 5, 2019
___________
Introduced by M. of A. TAGUE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to eliminating state sales and
compensating use taxes on biodiesel products produced, processed
and/or distributed in New York state and authorizing localities to
eliminate such taxes at the local level
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1-a of section 289-c of the tax law is amended
2 by adding a new paragraph (e) to read as follows:
3 (e) (i) Any person may exclude the amount of the tax or taxes imposed
4 by this article on biodiesel products produced, processed and/or
5 distributed in New York state from the selling price thereof if such
6 biodiesel product is delivered to a filling station and placed in a
7 storage tank of such filling station for such biodiesel product to be
8 dispensed directly into a motor vehicle for use in the operation of such
9 vehicle. Any person making a sale of such biodiesel product under the
10 circumstances described herein, whereby the tax or taxes otherwise
11 imposed by this article have not been passed through to the purchaser,
12 shall be allowed a refund or credit of the taxes imposed by this article
13 in the amount of such tax or taxes paid by such person on such biodiesel
14 product being sold or included in the price paid by such person for such
15 fuel. Claims for refunds or credits shall be presented, and refunds or
16 credits shall be made, only as authorized by the commissioner under such
17 rules and regulations as the commissioner may prescribe.
18 (ii) Any person may exclude the amount of the tax or taxes imposed by
19 this article from the selling price with respect to any sale of such
20 biodiesel product. Any person making a sale of such biodiesel product
21 upon which such person does not pass on more than eighty percent of the
22 taxes otherwise imposed by this article, where such person has purchased
23 such biodiesel product with the entire amount of the taxes imposed by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06397-01-9
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1 this article included in such person's purchase price, shall be entitled
2 to a refund or credit equal to the amount of the tax or taxes paid under
3 this article on such biodiesel product in excess of eighty percent of
4 the tax or taxes imposed by this article on diesel motor fuel. Claims
5 for refunds or credits shall be presented, and refunds or credits shall
6 be made, only as authorized by the commissioner under such rules and
7 regulations as the commissioner may prescribe.
8 (iii) Any person may exclude the amount of the tax or taxes imposed by
9 this article on such biodiesel product from the selling price thereof.
10 Any person making a sale of such biodiesel product, whereby the tax or
11 taxes otherwise imposed by this article have not been passed through to
12 the purchaser, shall be allowed a refund or credit of any taxes imposed
13 by this article in the amount of such tax or taxes paid by such person
14 on such biodiesel product being sold or included in the price paid by
15 such person for such biodiesel product. Claims for refunds or credits
16 shall be presented, and refunds or credits shall be made, only as
17 authorized by the commissioner under such rules and regulations as the
18 commissioner may prescribe.
19 § 2. Section 300 of the tax law is amended by adding a new subdivision
20 (t) to read as follows:
21 (t) The term "biodiesel" shall mean a diesel motor fuel substitute
22 produced from nonpetroleum renewable resources that meets the registra-
23 tion requirements for fuels and fuel additives established by the Envi-
24 ronmental Protection Agency under section 211 of the Clean Air Act (42
25 U.S.C. 7545) and that meets the American Society for Testing and Materi-
26 als D6751-02a Standard Specification for Biodiesel Fuel (B100) Blend
27 Stock for Distillate Fuels that has been produced, processed and/or
28 distributed in New York state.
29 § 3. Subdivision (a) of section 301-b of the tax law is amended by
30 adding a new paragraph 9 to read as follows:
31 (9)(i) Biodiesel exemption. Biodiesel products imported or caused to
32 be imported into this state or produced, refined, manufactured or
33 compounded in this state by a petroleum business registered under arti-
34 cle twelve-A of this chapter, as a distributor of diesel motor fuel, and
35 then sold by such petroleum business.
36 (ii) Calculation of exemption. The amount of the exemption under this
37 paragraph shall be determined by the applicable taxes otherwise imposed
38 by this article on such fuel.
39 § 4. Section 301-c of the tax law is amended by adding a new subdivi-
40 sion (q) to read as follows:
41 (q) Reimbursement for biodiesel products. (1) Biodiesel products
42 purchased in this state and sold by such purchaser in this state where
43 (i) the tax imposed pursuant to this article has been paid with respect
44 to such biodiesel products and the entire amount of such tax has been
45 absorbed by such purchaser, and (ii) such purchaser possesses documenta-
46 ry proof satisfactory to the commissioner evidencing the absorption by
47 it of the entire amount of the tax imposed pursuant to this article.
48 Provided, that the commissioner shall require such documentary proof to
49 qualify for any reimbursement provided hereunder as the commissioner
50 deems appropriate.
51 (2) Calculation of reimbursement. The amount of the reimbursement
52 under this subdivision shall be determined by the amount of the applica-
53 ble taxes otherwise imposed by this article on such fuel.
54 § 5. Subdivision (b) of section 1101 of the tax law is amended by
55 adding a new paragraph 39 to read as follows:
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1 (39) Biodiesel. A diesel motor fuel substitute produced from nonpe-
2 troleum renewable resources that meets the registration requirements for
3 fuels and fuel additives established by the Environmental Protection
4 Agency under section 211 of the Clean Air Act (42 U.S.C. 7545) and that
5 meets the American Society for Testing and Materials D6751-02a Standard
6 Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels
7 that has been produced, processed and/or distributed in New York state.
8 § 6. Subdivision (b) of section 1107 of the tax law is amended by
9 adding a new clause 12 to read as follows:
10 (12) Except as otherwise provided by law, the exemption provided in
11 paragraph forty-five of subdivision (a) of section eleven hundred
12 fifteen of this article relating to biodiesel products produced, proc-
13 essed and/or distributed in New York state shall be applicable pursuant
14 to a local law, ordinance or resolution adopted by a city subject to the
15 provisions of this section. Such city is empowered to adopt or repeal
16 such a local law, ordinance or resolution. Such adoption or repeal shall
17 also be deemed to amend any local law, ordinance or resolution enacted
18 by such a city imposing taxes pursuant to the authority of subdivision
19 (a) of section twelve hundred ten of this chapter.
20 § 7. Subdivision (a) of section 1115 of the tax law is amended by
21 adding a new paragraph 45 to read as follows:
22 (45) Biodiesel products produced, processed and/or distributed in New
23 York state.
24 § 8. Paragraph 1 of subdivision (a) of section 1210 of the tax law is
25 amended by adding a new closing paragraph to read as follows:
26 Any local law, ordinance or resolution enacted by any city, county or
27 school district, imposing the taxes authorized by this subdivision,
28 shall omit the biodiesel products produced, processed and/or distributed
29 in New York state exemption provided for in paragraph forty-five of
30 subdivision (a) of section eleven hundred fifteen of this chapter,
31 unless such city, county or school district elects otherwise; provided
32 that if such a city having a population of one million or more enacts
33 the resolution described in subdivision (p) of this section or repeals
34 such resolution, such resolution or repeal shall also be deemed to amend
35 any local law, ordinance or resolution enacted by such a city imposing
36 such taxes pursuant to the authority of this subdivision, whether or not
37 such taxes are suspended at the time such city enacts its resolution
38 pursuant to subdivision (p) of this section or at the time of any such
39 repeal; provided, further, that any such local law, ordinance or resol-
40 ution and section eleven hundred seven of this chapter, as deemed to be
41 amended in the event a city of one million or more enacts a resolution
42 pursuant to the authority of subdivision (p) of this section, shall be
43 further amended, as provided in section twelve hundred eighteen of this
44 subpart, so that the biodiesel products produced, processed and/or
45 distributed in New York state exemption in any such local law, ordinance
46 or resolution or in such section eleven hundred seven is the same as the
47 biodiesel products produced, processed and/or distributed in New York
48 state exemption in paragraph forty-five of subdivision (a) of section
49 eleven hundred fifteen of this chapter.
50 § 9. Subdivision (d) of section 1210 of the tax law, as amended by
51 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
52 read as follows:
53 (d) A local law, ordinance or resolution imposing any tax pursuant to
54 this section, increasing or decreasing the rate of such tax, repealing
55 or suspending such tax, exempting from such tax the energy sources and
56 services described in paragraph three of subdivision (a) or of subdivi-
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1 sion (b) of this section or changing the rate of tax imposed on such
2 energy sources and services or providing for the credit or refund
3 described in clause six of subdivision (a) of section eleven hundred
4 nineteen of this chapter, or electing or repealing the exemption for
5 residential solar equipment and electricity in subdivision (ee) of
6 section eleven hundred fifteen of this article, or the exemption for
7 commercial solar equipment and electricity in subdivision (ii) of
8 section eleven hundred fifteen of this article, or electing or repealing
9 the exemption for commercial fuel cell electricity generating systems
10 equipment and electricity generated by such equipment in subdivision
11 (kk) of section eleven hundred fifteen of this article must go into
12 effect only on one of the following dates: March first, June first,
13 September first or December first; provided, that a local law, ordinance
14 or resolution providing for the exemption described in paragraph thirty
15 of subdivision (a) of section eleven hundred fifteen of this chapter or
16 repealing any such exemption or a local law, ordinance or resolution
17 providing for a refund or credit described in subdivision (d) of section
18 eleven hundred nineteen of this chapter or repealing such provision so
19 provided must go into effect only on March first; provided, further,
20 that a local law, ordinance or resolution providing for the exemption
21 described in paragraph forty-five of subdivision (a) of section eleven
22 hundred fifteen of this chapter or repealing any such exemption so
23 provided and a resolution enacted pursuant to the authority of subdivi-
24 sion (p) of this section providing such exemption or repealing such
25 exemption so provided may go into effect immediately. No such local
26 law, ordinance or resolution shall be effective unless a certified copy
27 of such law, ordinance or resolution is mailed by registered or certi-
28 fied mail to the commissioner at the commissioner's office in Albany at
29 least ninety days prior to the date it is to become effective. However,
30 the commissioner may waive and reduce such ninety-day minimum notice
31 requirement to a mailing of such certified copy by registered or certi-
32 fied mail within a period of not less than thirty days prior to such
33 effective date if the commissioner deems such action to be consistent
34 with the commissioner's duties under section twelve hundred fifty of
35 this article and the commissioner acts by resolution. Where the
36 restriction provided for in section twelve hundred twenty-three of this
37 article as to the effective date of a tax and the notice requirement
38 provided for therein are applicable and have not been waived, the
39 restriction and notice requirement in section twelve hundred twenty-
40 three of this article shall also apply.
41 § 10. Section 1210 of the tax law is amended by adding a new subdivi-
42 sion (p) to read as follows:
43 (p) Notwithstanding any other provision of state or local law, ordi-
44 nance or resolution to the contrary:
45 (1) Any city having a population of one million or more in which the
46 taxes imposed by section eleven hundred seven of this chapter are in
47 effect, acting through its local legislative body, is hereby authorized
48 and empowered to elect to provide the exemption from such taxes for the
49 same biodiesel products produced, processed and/or distributed in New
50 York state exempt from state sales and compensating use taxes described
51 in paragraph forty-five of subdivision (a) of section eleven hundred
52 fifteen of this chapter by enacting a resolution in the form set forth
53 in paragraph two of this subdivision; whereupon, upon compliance with
54 the provisions of subdivisions (d) and (e) of this section, such enact-
55 ment of such resolution shall be deemed to be an amendment to such
56 section eleven hundred seven and such section eleven hundred seven shall
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1 be deemed to incorporate such exemption as if it had been duly enacted
2 by the state legislature and approved by the governor.
3 (2) Form of Resolution: Be it enacted by the (insert proper title of
4 local legislative body) as follows:
5 Section one. Receipts from sales of and consideration given or
6 contracted to be given for purchases of biodiesel products produced,
7 processed and/or distributed in New York state exempt from state sales
8 and compensating use taxes pursuant to paragraph forty-five of subdivi-
9 sion (a) of section eleven hundred fifteen of the tax law shall also be
10 exempt from sales and compensating use taxes imposed in this jurisdic-
11 tion.
12 Section two. This resolution shall take effect, (insert the date) and
13 shall apply to sales made and uses occurring on and after that date
14 although made or occurring under a prior contract.
15 § 11. The commissioner of taxation and finance is hereby authorized to
16 implement the provisions of this act with respect to the elimination of
17 the imposition of sales tax, additional taxes, and supplemental taxes on
18 biodiesel products produced, processed and/or distributed in New York
19 state and all other taxes so addressed by this act.
20 § 12. This act shall take effect April 1, 2020.