Relates to the state sales and compensating use tax on the retail sales of motor fuel and diesel motor fuel; establishes that the sales tax and compensating use tax on the retail sale of motor fuel shall be eight cents or four percent, whichever is less; requires the commissioner of taxation and finance to quarterly establish the lowest price for motor fuel and diesel motor fuel based on the lowest price being charged on any given day during the three consecutive months beginning four months prior to the start of any sales tax quarter by surveying a minimum of ten selected truck stops widely scattered throughout the state.
STATE OF NEW YORK
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S. 4723--A A. 6895--A
2015-2016 Regular Sessions
SENATE - ASSEMBLY
April 10, 2015
___________
IN SENATE -- Introduced by Sens. LAVALLE, DeFRANCISCO, FUNKE -- read
twice and ordered printed, and when printed to be committed to the
Committee on Investigations and Government Operations -- recommitted
to the Committee on Investigations and Government Operations in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
IN ASSEMBLY -- Introduced by M. of A. THIELE, COLTON, COOK, CURRAN,
FITZPATRICK, GRAF, HOOPER, LAWRENCE, LUPINACCI, McKEVITT, RAIA, PALUM-
BO -- Multi-Sponsored by -- M. of A. MAGEE, MALLIOTAKIS,
PEOPLES-STOKES, ROBINSON -- read once and referred to the Committee on
Ways and Means -- recommitted to the Committee on Ways and Means in
accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law, in relation to the state sales and compen-
sating use tax on the retail sales of motor fuel and diesel motor fuel
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (m) of section 1111 of the tax law, as amended
2 by section 1 of part M1 of chapter 109 of the laws of 2006 and paragraph
3 7 as amended by section 11 of subpart I of part VI of chapter 57 of the
4 laws of 2009, is amended to read as follows:
5 (m) Notwithstanding any provision of law to the contrary:
6 (1) The sales tax imposed by subdivision (a) of section eleven hundred
7 five of this [article] part and the compensating use tax imposed by
8 section eleven hundred ten of this [article] part, in regard to retail
9 sales of motor fuel and diesel motor fuel, shall be eight cents per
10 gallon or four percent, whichever is less, as computed pursuant to para-
11 graph five of this subdivision.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09086-02-6
S. 4723--A 2 A. 6895--A
1 (2) The sales and compensating use taxes imposed by subdivision (a) of
2 section eleven hundred nine of this article, in regard to retail sales
3 of motor fuel and diesel motor fuel, shall be three-quarters of one cent
4 per gallon, or three-eighths of a percent, whichever is less, as
5 computed pursuant to paragraph five of this subdivision.
6 (3) Paragraph one of this subdivision shall not apply to the sales and
7 compensating use taxes imposed by subdivision (a) of section eleven
8 hundred seven of this article in regard to retail sales of motor fuel
9 and diesel motor fuel. However, the legislative body of a city in which
10 the taxes imposed by such section eleven hundred seven are in effect, by
11 local law, ordinance, or resolution in exactly the form prepared by the
12 commissioner, may elect that such taxes, in regard to retail sales of
13 motor fuel and diesel motor fuel, shall be computed, as determined by
14 the commissioner, at a rate of cents per gallon, rounded to the nearest
15 cent, equal to two or three dollars, as determined by the municipality,
16 multiplied by the percentage rate of such taxes within the municipality.
17 (4) Paragraph one of this subdivision shall not apply to the sales and
18 compensating use taxes imposed by a local law, ordinance or resolution
19 of a municipality pursuant to the authority of subpart B of part one of
20 article twenty-nine of this chapter, in regard to retail sales of motor
21 fuel and diesel motor fuel. The legislative body of such a municipality,
22 by local law, ordinance or resolution in exactly the form prepared by
23 the commissioner, may elect that its sales and compensating use taxes,
24 in regard to the retail sale of motor fuel and diesel motor fuel, shall
25 be computed, as determined by the commissioner, at a rate of cents per
26 gallon, rounded to the nearest cent, equal to two or three dollars, as
27 determined by the municipality, multiplied by the percentage rate of
28 such taxes within the municipality.
29 (5)(i) Prior to the start of any sales tax quarter, the commissioner
30 shall apply the local percentage sales tax rate of each county or city
31 that has elected a cents per gallon rate pursuant to paragraph three or
32 four of this subdivision to the [average] lowest price of motor fuel and
33 diesel motor fuel, not including sales tax and the motor fuel excise
34 tax[, for three consecutive months beginning four months prior to the
35 start of any sales tax quarter]. The commissioner shall for each calen-
36 dar quarter establish the lowest price for motor fuel and diesel motor
37 fuel based on the lowest price being charged on any given day during the
38 three consecutive months beginning four months prior to the start of any
39 sales tax quarter by surveying a minimum of ten selected truck stops
40 widely scattered throughout the state. If the result of this computa-
41 tion is less than the elected cents per gallon rate for a county or
42 city, the cents per gallon rate for such county or city shall be
43 adjusted to be equal to such computation, rounded to the nearest one
44 cent. Such rates shall be published by the commissioner and effective in
45 the next succeeding sales tax quarter.
46 (ii) Prior to the start of any sales tax quarter, the commissioner
47 shall also adjust in a like manner the cents per gallon rates prescribed
48 by paragraphs one and two of this subdivision based on percentage sales
49 tax rates of four percent and three-eighths of a percent respectively.
50 Provided, however, adjustments made to the cents per gallon rate
51 prescribed by [paragraph] paragraphs one and two of this subdivision
52 shall be rounded to the nearest one-tenth of one cent.
53 (6) A local law, ordinance or resolution making or revoking the
54 election made pursuant to paragraph three or four of this subdivision
55 must go into effect in accordance with the provisions of subdivisions
56 (d) and (e) of section twelve hundred ten of this chapter.
S. 4723--A 3 A. 6895--A
1 (7) Notwithstanding any foregoing provision of this subdivision or
2 other law to the contrary, this subdivision, subdivision (h) of section
3 eleven hundred nine of this part and subdivision (n) of section eighteen
4 hundred seventeen of this chapter, section three hundred ninety-two-i of
5 the general business law and other provisions of law which refer or
6 relate to this subdivision shall apply only to (A) motor fuel or diesel
7 motor fuel sold for use directly and exclusively in the engine of a
8 motor vehicle and (B) motor fuel or diesel motor fuel, other than
9 water-white kerosene sold exclusively for heating purposes in containers
10 of no more than twenty gallons, sold by a retail gas station. For
11 purposes of this subdivision and such other provisions of law, "retail
12 gas station" shall mean a filling station where such fuel is stored
13 primarily for sale by delivery directly into the ordinary fuel tank
14 connected with the engine of a motor vehicle to be consumed in the oper-
15 ation of such motor vehicle or where such fuel is stored primarily for
16 sale by delivery directly into the ordinary fuel tank connected with the
17 engine of a vessel to be consumed in the operation of such vessel. The
18 commissioner is hereby authorized to require the use of certificates or
19 other documents, and procedures related thereto, to effect the purposes
20 of this subdivision; and any such certificate or other document so
21 required by the commissioner for a purchaser to tender to a vendor to
22 purchase such fuel subject to tax on the reduced base established by or
23 pursuant to this subdivision is hereby deemed to be an exemption certif-
24 icate as such term is used in subdivision (c) of section eleven hundred
25 thirty-two of this article and as if the provisions of such subdivision
26 (c) referred to such a certificate or document required pursuant to this
27 subdivision.
28 § 2. This act shall take effect immediately.
