NY State Senate Bill 2015-S3078

Senate Bill S3078

2015-2016 Legislative Session

Creates the federal tax elimination supplemental tax to take effect if the federal fuel tax rate is reduced below 5 cents per gallon

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to investigations and government operations
Feb 02, 2015	referred to investigations and government operations

2015-S3078 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §284-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S5895
2013-2014: S3290
2017-2018: S4580

2015-S3078 (ACTIVE) - Summary

Creates the federal tax elimination supplemental tax to take effect if the federal fuel tax rate is reduced below 5 cents per gallon.

2015-S3078 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3078

TITLE OF BILL:

An act to amend the tax law, in relation to the creation of the
federal tax elimination supplemental tax

PURPOSE:

This bill would create the federal tax elimination supplemental tax to
take effect if the federal fuel tax raze is reduced below 5 cents per
gallon.

SUMMARY OF SPECIFIC PROVISIONS:

Article 12-A of the tax law is amended by adding a new section 284-b
which would only be implemented or 'triggered' if the federal fuel tax
falls below the rate of 5 cents per gallon. This legislation would not
increase the tax the consumer would pay at the pump for every gallon
of gas, but would maintain the current tax rate and allow the State,
not the federal government, to use that money for desperately needed
road and bridge repairs and mass transit.

Currently the federal government collects this revenue and distributes
to the states as they feel is appropriate. With the 'Trigger'
legislation the money collected by the state will enable New York to

utilize this important funding stream for critically needed repairs to
our infrastructure without actually increasing the taxes paid at the
gas pump. The consumer will see no tax increase but will reap
tremendous benefits throughout the state with 75 percent of the
revenue assigned solely to the dedicated highway and bridge trust fund
established pursuant to section eighty-nine-b of the state finance law
for road and bridges. The remaining 25 percent will be dedicated to
the mass transportation trust fund established pursuant to section
eighty-nine-c of the state finance law to be spent on mass
transportation. Additionally, the consumer will see a total tax
decrease of approximately $.05 per gallon of gas.

JUSTIFICATION:

New York's roads and bridges are in deplorable condition and our mass
transit systems are also suffering greatly from the poor economic
climate and New York's inability to control spending. For many years,
the state has seen fit to siphon critical revenue intended for
transportation related expenses between non transportation related
purposes leaving our transportation system in a shambles. This bill
will rectify some of that misguided spending by focusing gas tax
revenue solely on road and bridge repair and necessary mass transit
expenditures.

Five other states have enacted similar statutes to be prepared to use
these funds for transportation costs should the federal government let
the collection of these dollars expire. California passed legislation
in 2011, Arkansas in 1953, Oklahoma in 1965, Nevada in 1973 and the
Tennessee statute took effect in 2009.


Because New York State currently transfers more revenue to the Federal
Government under the gas tax than it receives back in federal
transportation funding, this legislation would significantly increase
the funds available for transportation should it be triggered by the
expiration of the federal tax.

FISCAL IMPLICATIONS:

Increased revenue for the state is undetermined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S3078 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3078

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 2, 2015
                               ___________

Introduced  by  Sen. KRUEGER -- 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 the creation of the  federal
  tax elimination supplemental tax

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  The tax law is amended by adding a new  section  284-b  to
read as follows:
  S  284-B.  FEDERAL TAX ELIMINATION SUPPLEMENTAL TAX. 1. IF THE FEDERAL
FUEL TAX IS BELOW THE RATE OF FIVE CENTS PER  GALLON,  THERE  IS  HEREBY
LEVIED  AND  IMPOSED  AN  EXCISE TAX OF NINE CENTS PER GALLON UPON MOTOR
FUEL (A) IMPORTED INTO OR CAUSED TO BE IMPORTED  INTO  THE  STATE  BY  A
DISTRIBUTOR  FOR USE, DISTRIBUTION, STORAGE OR SALE IN THE STATE OR UPON
MOTOR FUEL WHICH IS PRODUCED, REFINED, MANUFACTURED OR COMPOUNDED  BY  A
DISTRIBUTOR  IN THE STATE (WHICH ACTS SHALL HEREINAFTER IN THIS SUBDIVI-
SION BE ENCOMPASSED BY THE PHRASE "IMPORTED OR MANUFACTURED") OR (B)  IF
THE  TAX  HAS NOT BEEN IMPOSED PRIOR TO ITS SALE IN THIS STATE, WHICH IS
SOLD BY A DISTRIBUTOR (WHICH ACT, IN CONJUNCTION WITH THE ACTS DESCRIBED
IN PARAGRAPH (A) OF THIS SUBDIVISION, SHALL HEREINAFTER IN THIS  ARTICLE
BE  ENCOMPASSED  BY THE PHRASE "IMPORTED, MANUFACTURED OR SOLD"), EXCEPT
WHEN IMPORTED, MANUFACTURED OR SOLD UNDER CIRCUMSTANCES  WHICH  PRECLUDE
THE  COLLECTION  OF SUCH TAX BY REASON OF THE UNITED STATES CONSTITUTION
AND OF LAWS OF THE  UNITED  STATES  ENACTED  PURSUANT  THERETO  OR  WHEN
IMPORTED  OR  MANUFACTURED BY AN ORGANIZATION DESCRIBED IN PARAGRAPH ONE
OR TWO OF SUBDIVISION (A) OF SECTION  ELEVEN  HUNDRED  SIXTEEN  OF  THIS
CHAPTER  OR  A HOSPITAL INCLUDED IN THE ORGANIZATIONS DESCRIBED IN PARA-
GRAPH FOUR OF SUCH SUBDIVISION FOR ITS OWN USE OR CONSUMPTION AND EXCEPT
KERO-JET FUEL WHEN IMPORTED OR MANUFACTURED BY AN AIRLINE FOR USE IN ITS
AIRPLANES. PROVIDED, FURTHER, NO MOTOR FUEL SHALL  BE  INCLUDED  IN  THE
MEASURE  OF  THE TAX UNLESS IT SHALL HAVE PREVIOUSLY COME TO REST WITHIN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05459-01-5

S. 3078                             2

THE MEANING OF FEDERAL DECISIONAL LAW  INTERPRETING  THE  UNITED  STATES
CONSTITUTION.  ALL  TAX FOR THE PERIOD FOR WHICH A RETURN IS REQUIRED TO
BE FILED SHALL BE DUE ON THE DATE LIMITED FOR THE FILING OF  THE  RETURN
FOR  SUCH  PERIOD,  REGARDLESS  OF  WHETHER  A  RETURN  IS FILED BY SUCH
DISTRIBUTOR AS REQUIRED BY THIS ARTICLE OR WHETHER THE RETURN  WHICH  IS
FILED CORRECTLY SHOWS THE AMOUNT OF TAX DUE.
  2.  ALL  TAXES  COLLECTED  PURSUANT TO THIS SECTION SHALL BE DEPOSITED
PROPORTIONATELY INTO THE FOLLOWING ACCOUNTS: THREE-QUARTERS TO THE DEDI-
CATED HIGHWAY AND BRIDGE TRUST  FUND  ESTABLISHED  PURSUANT  TO  SECTION
EIGHTY-NINE-B OF THE STATE FINANCE LAW, AND ONE-QUARTER TO THE DEDICATED
MASS   TRANSPORTATION   TRUST   FUND  ESTABLISHED  PURSUANT  TO  SECTION
EIGHTY-NINE-C OF THE STATE FINANCE LAW.
  S 2. This act shall take effect immediately.

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