STATE OF NEW YORK
        ________________________________________________________________________
                                           194
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ENGLE-
          BRIGHT, GUNTHER, LUPARDO, L. ROSENTHAL -- read once  and  referred  to
          the Committee on Ways and Means
        AN  ACT to amend the tax law, in relation to eliminating the residential
          restriction for heating exemptions
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision (d) of section 301-b of the tax law, as amended
     2  by section 21 of part K of chapter 61 of the laws of 2011, is amended to
     3  read as follows:
     4    (d)  Sales  to  consumers for heating purposes. [(1) Total residential
     5  heating] Heating exemption. Non-highway diesel  motor  fuel  sold  by  a
     6  petroleum  business registered under article twelve-A of this chapter as
     7  a distributor of diesel motor fuel or residual petroleum product sold by
     8  a petroleum business registered under this article as a residual  petro-
     9  leum  product  business  to  the  consumer exclusively for [residential]
    10  heating purposes only if such non-highway diesel motor fuel is delivered
    11  into a storage tank which is not equipped with a hose or other apparatus
    12  by which such fuel can be dispensed into the fuel tank of a motor  vehi-
    13  cle  and  such storage tank is attached to the heating unit burning such
    14  fuel.
    15    [(2) Partial non-residential heating exemption. (A) Non-highway diesel
    16  motor fuel  sold  by  a  petroleum  business  registered  under  article
    17  twelve-A  of this chapter as a distributor of diesel motor fuel or resi-
    18  dual petroleum product sold by a  petroleum  business  registered  under
    19  this  article  as  a residual petroleum product business to the consumer
    20  exclusively for heating, other than residential heating purposes only if
    21  such non-highway diesel motor fuel is  delivered  into  a  storage  tank
    22  which  is not equipped with a hose or other apparatus by which such fuel

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00063-01-9

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     1  can be dispensed into the fuel tank of a motor vehicle and such  storage
     2  tank is attached to the heating unit burning such fuel
     3    (B) Calculation of partial exemption. The partial exemption under this
     4  paragraph shall be determined by multiplying the quantity of non-highway
     5  diesel  motor  fuel  and  residual  petroleum  product  eligible for the
     6  exemption times the sum of the then current rate of the supplemental tax
     7  imposed by section three hundred one-j of  this  article  and  forty-six
     8  percent  of  the  then  current rate of the tax imposed by section three
     9  hundred one-a of this article, with respect to the specific  non-highway
    10  diesel  motor  fuel  or residual petroleum product rate, as the case may
    11  be.]
    12    § 2. Subdivision (a) of section 301-c of the tax law,  as  amended  by
    13  section  23  of  part K of chapter 61 of the laws of 2011, is amended to
    14  read as follows:
    15    (a) Non-highway Diesel motor fuel  used  for  heating  purposes.  [(1)
    16  Total  residential  heating]  Heating  reimbursement. Non-highway Diesel
    17  motor fuel purchased in this state and  sold  by  such  purchaser  to  a
    18  consumer for use exclusively for [residential] heating purposes but only
    19  where (i) such non-highway diesel motor fuel is delivered into a storage
    20  tank  which is not equipped with a hose or other apparatus by which such
    21  non-highway Diesel motor fuel can be dispensed into the fuel tank  of  a
    22  motor  vehicle  and  such  storage  tank is attached to the heating unit
    23  burning such non-highway Diesel motor fuel, (ii) the tax imposed  pursu-
    24  ant  to  this  article  has  been  paid with respect to such non-highway
    25  diesel motor fuel and the entire amount of such tax has been absorbed by
    26  such purchaser, and (iii) such  purchaser  possesses  documentary  proof
    27  satisfactory  to the commissioner evidencing the absorption by it of the
    28  entire amount of the tax imposed pursuant  to  this  article.  Provided,
    29  however,  that  the  commissioner  is  authorized, in the event that the
    30  commissioner determines that it would not threaten the integrity of  the
    31  administration  and  enforcement  of the tax imposed by this article, to
    32  provide a reimbursement with respect to a retail sale to a consumer  for
    33  [residential]  heating  purposes of less than ten gallons of non-highway
    34  diesel motor fuel provided such fuel is not dispensed into the tank of a
    35  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,

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     1  with respect to the non-highway diesel motor fuel rate, as the case  may
     2  be.]
     3    §  3.  This act shall take effect April 1, 2019; provided, however, if
     4  this act shall become a law after such date it shall be deemed  to  have
     5  been in full force and effect on and after April 1, 2019.