Bill Text: NY S00341 | 2017-2018 | General Assembly | Introduced

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Bill Title: Taxes aviation fuel businesses for all kero-jet fuel they bring into the state.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00341 Detail]

Download: New_York-2017-S00341-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           341
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by  Sen. PERALTA -- 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 taxation  of  aviation  fuel
          businesses; and to repeal subdivision (f) of section 301-e of such law
          relating thereto
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivisions (c), (d) and (e) of section 301-e of  the  tax
     2  law, subdivision (c) as amended by section 25 of part K of chapter 61 of
     3  the  laws of 2011, subdivision (d) as amended by chapter 309 of the laws
     4  of 1996, subdivision (e) as added by chapter 190 of the laws of 1990 and
     5  paragraph 2 of subdivision (e) as amended by section  1  of  part  J  of
     6  chapter 60 of the laws of 2004, are amended to read as follows:
     7    (c)  Kero-jet  fuel  component.  The  kero-jet fuel component shall be
     8  determined by multiplying the kero-jet fuel rate  times  the  number  of
     9  gallons of (1) kero-jet fuel imported or caused to be imported into this
    10  state  by an aviation fuel business and consumed [in this state] by such
    11  business in the operation of its aircraft; and (2) kero-jet fuel,  which
    12  has  not  been  previously included in the measure of the tax imposed by
    13  this section, (i) which is sold in this state by an aviation fuel  busi-
    14  ness  to  persons  other  than  those  registered  under this article as
    15  aviation fuel businesses or (ii) which is consumed in this state  by  an
    16  aviation  fuel  business in the operation of its aircraft. Provided that
    17  importation of kero-jet fuel in the fuel  tanks  of  aircraft  shall  be
    18  importation  for  the  purposes of this section. The basic kero-jet fuel
    19  rate shall be six and eight-tenths cents per gallon. The rate  shall  be
    20  adjusted at the same time as the rates of the components of the petrole-
    21  um  business tax imposed by section three hundred one-a of this article,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00135-01-7
        S. 341                              2
     1  and the method of making adjustments to the kero-jet fuel rate shall  be
     2  the same as the method used for such rates.
     3    (d)  (1)  An aviation fuel business shall be entitled to reimbursement
     4  of the tax imposed by this section, less any credit  allowed  or  refund
     5  granted,  with  respect to aviation gasoline purchased in this state and
     6  consumed by such business exclusively as aviation fuel in the  operation
     7  of  its  aircraft  where  such aviation gasoline is not consumed in this
     8  state, provided that the amount of such tax, less any credit or  refund,
     9  has  been absorbed by such aviation fuel business. Provided, further, an
    10  aviation fuel business which has imported aviation  gasoline  into  this
    11  state  and  consumed  such  aviation  gasoline  in  the operation of its
    12  aircraft where a portion of such aviation gasoline is  not  consumed  in
    13  this  state shall be allowed a credit for such gallonage not consumed in
    14  this state in computing the tax imposed by such section.
    15    (2) [An aviation fuel business shall be entitled to  reimbursement  of
    16  the  tax imposed by this section with respect to kero-jet fuel purchased
    17  in this state and consumed by such business exclusively as aviation fuel
    18  in the operation of  its  aircraft  where  such  kero-jet  fuel  is  not
    19  consumed  in this state, provided that the entire amount of such tax has
    20  been absorbed by such aviation fuel business.
    21    (3)] Any purchaser of aviation gasoline in  this  state  who  consumes
    22  such  aviation gasoline exclusively as aviation fuel in the operation of
    23  its aircraft shall be entitled to a partial  reimbursement  of  the  tax
    24  imposed  by  this  section  with  respect to aviation gasoline which was
    25  purchased by such purchaser  and  upon  which  such  purchaser  paid  or
    26  absorbed  the  full  amount of the tax imposed by this section (where no
    27  partial credit or refund under paragraph two of subdivision (b) of  this
    28  section  was provided with respect to such aviation gasoline) where: (i)
    29  such purchaser purchases the aviation gasoline from a fixed base  opera-
    30  tor  which  qualifies as a retail seller of aviation gasoline but is not
    31  so registered under article twelve-A  of  this  chapter,  or  (ii)  such
    32  purchaser  purchases the aviation gasoline in bulk from a distributor of
    33  motor fuel registered under article twelve-A of this chapter where  such
    34  distributor delivers such aviation gasoline directly into a bulk storage
    35  facility  of the purchaser which is at a fixed and permanent place at an
    36  airport within this state and is used solely to fill the fuel  tanks  of
    37  its  aircraft  for  use  in  the  operations  thereof. The amount of the
    38  reimbursement allowable under this  paragraph  shall  be  equal  to  the
    39  amount  of the partial credit or refund allowable under paragraph two of
    40  subdivision (b) of this section.
    41    [(4)] (3) The commissioner shall require  such  documentary  proof  to
    42  qualify  for  any  credit, refund or reimbursement of tax provided under
    43  this subdivision as the commissioner deems appropriate.
    44    (e) All the provisions of this article relating to the administration,
    45  collection and disposition of the tax imposed on  petroleum  businesses,
    46  including  the  registration  provisions of section three hundred two of
    47  this article applicable to residual petroleum product businesses,  shall
    48  apply to the tax imposed by this section and the registration under this
    49  article  of  aviation  fuel  businesses with such modification as may be
    50  necessary in order to adapt the language of such provisions to  the  tax
    51  imposed  by this section. When reference in this article is made to "the
    52  tax imposed under this article" or where words  of  similar  import  are
    53  used, unless the context indicates otherwise, such reference shall be to
    54  the  tax  imposed  under section three hundred one-a of this article and
    55  this section. The tax imposed by  this  section  shall  be  administered
    56  jointly in conjunction with, and as a part of, the tax imposed on petro-
        S. 341                              3
     1  leum businesses as if the provisions of subdivision (a) of this section,
     2  imposing  the tax under this section, were made a part of the imposition
     3  provisions of section three hundred one-a, except where contrary or  not
     4  applicable  to  or  inconsistent  with  the  provisions of this section.
     5  Provided, further, for the purpose of this section:
     6    (1) the term "aviation fuel business" shall mean  a  "petroleum  busi-
     7  ness"  as described in paragraph one or paragraph two of subdivision (b)
     8  of section three hundred of this  article  except  that  the  activities
     9  described  therein  shall  separately  relate to aviation gasoline (such
    10  paragraph one) and kero-jet fuel (such  paragraph  two)  and  such  term
    11  shall  also include every corporation or unincorporated business import-
    12  ing or causing to  be  imported  aviation  fuel  into  this  state  [for
    13  consumption  by  it  in  this state] by bringing such aviation fuel into
    14  this state in aircraft fuel tanks which connect to the  engines  propel-
    15  ling such aircraft.
    16    (2) [kero-jet fuel and] aviation gasoline consumed in this state shall
    17  be  presumed  to mean all such fuel consumed during takeoffs from points
    18  in this state;
    19    (3) where the commissioner [of taxation and finance] decides that with
    20  respect to a certain petroleum business any of the methods prescribed in
    21  paragraph two of this subdivision do not fairly  and  equitably  reflect
    22  fuel consumed in this state, the commissioner shall prescribe methods of
    23  attribution  which  fairly  and  equitably reflect fuel consumed in this
    24  state.
    25    (4) "aviation fuel" means kero-jet  fuel  and  aviation  gasoline  (as
    26  described in paragraph three of subdivision (a) of section three hundred
    27  one-b  of  this  article). Provided, further the term kero-jet shall not
    28  include naphtha based aviation fuel refined and used solely for  propel-
    29  ling military jet airplanes of the United States Armed Forces.
    30    § 2. Subdivision (f) of section 301-e of the tax law is REPEALED.
    31    §  3. This act shall take effect on the first of January next succeed-
    32  ing the date on which it shall have become a law.