Bill Text: NY S00300 | 2009-2010 | General Assembly | Introduced
Bill Title: Exempts from taxation, diesel motor fuel and residual petroleum product which will be used at or by a non-road operation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00300 Detail]
Download: New_York-2009-S00300-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
300
2009-2010 Regular Sessions
I N S E N A T E
(PREFILED)
January 7, 2009
___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to exempting Diesel motor fuel
and residual petroleum product used at or in a non-road operation from
taxation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 282-a of the tax law is amended by adding a new
2 subdivision 6 to read as follows:
3 6. NOTWITHSTANDING ANY OTHER PROVISION, NO EXCISE TAX SHALL BE IMPOSED
4 PURSUANT TO THIS SECTION ON SALES TRANSACTIONS OF ANY DIESEL MOTOR FUEL
5 OR RESIDUAL PETROLEUM PRODUCT THAT IS DYED NON-ROAD, LOCOMOTIVE OR
6 MARINE DIESEL FUEL (NRLM) WHERE THE INTENDED END SALE AND USE OF SUCH
7 DIESEL MOTOR FUEL OR RESIDUAL PETROLEUM PRODUCT IS FOR A NON-ROAD OPERA-
8 TION SUCH AS FARMING.
9 S 2. Subdivision 1 and paragraph (b) of subdivision 3 of section 285-b
10 of the tax law, subdivision 1 as added by chapter 261 of the laws of
11 1988 and paragraph (b) of subdivision 3 as amended by chapter 245 of the
12 laws of 1989, are amended to read as follows:
13 1. Except with respect to the exemptions from the excise tax on Diesel
14 motor fuel set forth in [subdivision] SUBDIVISIONS three AND SIX of
15 section two hundred eighty-two-a of this article, no person shall
16 purchase Diesel motor fuel in this state unless the taxes imposed by
17 this article have been assumed by a registered distributor of Diesel
18 motor fuel in accordance with a certification under subdivision four of
19 this section or paid by such distributor and, in each of such instances,
20 except in the case of an exemption from the pass through of such tax
21 authorized in subdivision four of such section two hundred eighty-two-a,
22 are passed through to such purchaser. In addition to any other civil and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00964-01-9
S. 300 2
1 criminal penalties which may apply, any person who purchases Diesel
2 motor fuel without having received a certification from the seller in
3 accordance with subdivision four of this section shall be jointly and
4 severally liable to pay the taxes imposed by this article with respect
5 to such Diesel motor fuel.
6 (b) A claim for the exemption from tax provided for in subparagraph
7 (ii) or (viii) of paragraph (b) of subdivision three OR A CLAIM BY A
8 DISTRIBUTOR FOR THE EXEMPTION FROM TAX PROVIDED FOR IN SUBDIVISION SIX
9 of section two hundred eighty-two-a of this article shall be established
10 by means of an interdistributor sale certificate. If such exemption is
11 applicable, such certificate shall be provided by the purchaser to the
12 seller at the time of or prior to delivery of the Diesel motor fuel.
13 Such certificate shall set forth the name and address of the purchaser,
14 the purchaser's registration number, an affirmation by such purchaser
15 that the purchaser is registered as a distributor and that such regis-
16 tration has not been suspended or cancelled and shall be signed by such
17 purchaser and by the seller. Such certificate shall be in such form and
18 contain such other information as the commissioner [of taxation and
19 finance] shall require. Where a proper and complete interdistributor
20 sale certificate has been furnished and accepted by the seller in good
21 faith, such certificate under such circumstance shall relieve the seller
22 of the burden of proving that the Diesel motor fuel covered by such
23 certificate is exempt from tax by reason of subparagraph (ii) or (viii)
24 of paragraph (b) of subdivision three OR SUBDIVISION SIX of such section
25 two hundred eighty-two-a. For purposes of this paragraph, a seller shall
26 not have accepted such certificate in good faith if the purchaser's
27 registration is invalid because it has been suspended or cancelled, or
28 if the purchaser is not registered, and the commissioner [of taxation
29 and finance] has furnished registered distributors with information
30 identifying all those persons then validly registered as distributors of
31 Diesel motor fuel and those persons whose registrations have been
32 suspended or cancelled. Any purchaser who furnishes to his OR HER seller
33 a false or fraudulent interdistributor sale certificate for the purpose
34 of establishing an exemption from the tax imposed by section two hundred
35 eighty-two-a of this article shall be jointly and severally liable for
36 the tax imposed by such section.
37 S 3. The opening paragraph of subdivision (g) of section 301-b of the
38 tax law is designated paragraph 1 and a new paragraph 2 is added to read
39 as follows:
40 (2) SALES OF DIESEL MOTOR FUEL AND RESIDUAL PETROLEUM PRODUCT WHERE
41 THE INTENDED END SALE AND USE OF SUCH DIESEL MOTOR FUEL OR RESIDUAL
42 PETROLEUM PRODUCT IS FOR A NON-ROAD OPERATION SUCH AS FARMING.
43 S 4. Subdivision (c) of section 1115 of the tax law is amended by
44 adding a new paragraph 3 to read as follows:
45 (3) DIESEL MOTOR FUEL AND RESIDUAL PETROLEUM PRODUCT SOLD IN ANY TRAN-
46 SACTION WHERE THE INTENDED END SALE AND USE OF SUCH DIESEL MOTOR FUEL OR
47 RESIDUAL PETROLEUM PRODUCT IS FOR A NON-ROAD OPERATION SUCH AS FARMING.
48 S 5. The commissioner of taxation and finance is hereby authorized and
49 directed to promulgate any rules and regulations necessary to implement
50 the provisions of this act.
51 S 6. This act shall take effect immediately, except that sections one,
52 two, three and four of this act shall take effect on the first of Janu-
53 ary next succeeding the date on which it shall have become a law.
