S T A T E O F N E W Y O R K
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3620
2015-2016 Regular Sessions
I N A S S E M B L Y
January 27, 2015
___________
Introduced by M. of A. LALOR, NOJAY -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, the public authorities law and the highway
law, in relation to limiting the tax on motor fuels to the national
average; and to repeal sections 282-b, 282-c, 284-a and 284-c of the
tax law relating to additional and supplemental fuel taxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 284 of the tax law, as amended by
chapter 276 of the laws of 1986, is amended and a new subdivision 3 is
added to read as follows:
1. There is hereby levied and imposed an excise tax [of four cents per
gallon] AS DETERMINED ANNUALLY BY A MAJORITY OF THE LEGISLATURE NO LATER
THAN APRIL FIRST, NOT TO EXCEED THE NATIONAL AVERAGE OF TAXES ON MOTOR
FUEL BY STATES AND THE DISTRICT OF COLUMBIA, INCLUDING ANY TAXES AND
FEES IMPOSED BY LOCAL GOVERNMENTS, AS COMPILED ANNUALLY BY THE DEPART-
MENT, 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 subdivision be encompassed by the phrase "imported or manufac-
tured") 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 herein-
after in this article be encompassed by the phrase "imported, manufac-
tured 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 organiza-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00771-01-5
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tions described in paragraph 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 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.
3. THE METHODOLOGY BY WHICH THE DEPARTMENT COMPUTES THE NATIONAL AVER-
AGE OF SALES TAXES IMPOSED ON MOTOR FUEL BY STATES AND THE DISTRICT OF
COLUMBIA FOR THE PURPOSES OF LIMITING THE ANNUAL EXCISE TAX IMPOSED BY
SUBDIVISION ONE OF THIS SECTION SHALL BE SUBJECT TO THE REVIEW AND
APPROVAL OF A MAJORITY OF THE LEGISLATURE EVERY FOUR YEARS NO LATER THAN
APRIL FIRST.
S 2. Subdivision 1 of section 282-a of the tax law, as amended by
section 2 of part W of chapter 59 of the laws of 2013, is amended and a
new subdivision 1-a is added to read as follows:
1. There is hereby levied and imposed with respect to Diesel motor
fuel an excise tax [of four cents per gallon] AS DETERMINED ANNUALLY BY
A MAJORITY OF THE LEGISLATURE NO LATER THAN APRIL FIRST, NOT TO EXCEED
THE NATIONAL AVERAGE OF TAXES ON DIESEL FUEL BY STATES AND THE DISTRICT
OF COLUMBIA INCLUDING ANY TAXES AND FEES IMPOSED BY LOCAL GOVERNMENTS AS
COMPILED ANNUALLY BY THE DEPARTMENT, upon the sale or use of Diesel
motor fuel in this state.
The excise tax is imposed on the first sale or use of Diesel motor
fuel to occur which is not exempt from tax under this article. Provided,
however, if the tax has not been imposed prior thereto, it shall be
imposed on the removal of highway Diesel motor fuel from a terminal,
other than by pipeline, barge, tanker or other vessel, or the delivery
of Diesel motor fuel to a filling station or into the fuel tank connect-
ing with the engine of a motor vehicle for use in the operation thereof
whichever event shall be first to occur. The tax shall be computed based
upon the number of gallons of Diesel motor fuel sold, removed or used or
the number of gallons of Diesel fuel delivered into the fuel tank of a
motor vehicle, as the case may be. Nothing in this article shall be
construed to require the payment of such excise tax more than once upon
the same Diesel motor fuel. Nor shall the collection of such tax be made
applicable to the sale or use of Diesel motor fuel 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.
Provided, further, no Diesel motor fuel shall be included in the measure
of the tax unless it shall have previously come to rest within the mean-
ing of federal decisional law interpreting the United States constitu-
tion. 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 as required by this
article or whether the return which is filed correctly shows the amount
of tax due.
1-A. THE METHODOLOGY BY WHICH THE DEPARTMENT COMPUTES THE NATIONAL
AVERAGE OF SALES TAXES IMPOSED ON DIESEL FUEL BY STATES AND THE DISTRICT
OF COLUMBIA FOR THE PURPOSES OF LIMITING THE ANNUAL EXCISE TAX IMPOSED
BY SUBDIVISION ONE OF THIS SECTION SHALL BE SUBJECT TO THE REVIEW AND
APPROVAL OF A MAJORITY OF THE LEGISLATURE EVERY FOUR YEARS NO LATER THAN
APRIL FIRST.
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S 3. Sections 282-b, 282-c, 284-a and 284-c of the tax law are
REPEALED.
S 4. Subdivision 1 of section 289-e of the tax law, as amended by
section 15 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner under the taxes imposed by this article, except as
provided otherwise in subdivision two and subdivision three of this
section [and sections two hundred eighty-two-b, two hundred
eighty-two-c, two hundred eighty-four-a and two hundred eighty-four-c,]
other than the fee imposed by section two hundred eighty-four-d and
penalties and interest on such fee, shall be deposited and disposed of
pursuant to the provisions of section one hundred seventy-one-a of this
chapter; provided that an amount equal to thirty-seven and one-half per
centum of the moneys collected under section two hundred eighty-four of
this [chapter] ARTICLE shall be appropriated and used for the acquisi-
tion of property necessary for the construction and reconstruction of
highways and bridges or culverts on the state highway system, and for
the construction, maintenance and repair of such highways and bridges or
culverts, all under the direction of the commissioner of transportation.
S 5. Paragraphs (b), (d) and (e) of subdivision 3 of section 289-c of
the tax law, paragraph (b) as amended by chapter 411 of the laws of
1971, paragraph (d) as amended by chapter 836 of the laws of 1974 and
paragraph (e) as added by chapter 756 of the laws of 1974, are amended
to read as follows:
(b) Any omnibus carrier which shall buy any motor fuel on which the
[aggregate] tax imposed by section two hundred eighty-four [and section
two hundred eighty-four-a] of this [chapter] ARTICLE, or any diesel
motor fuel on which the [aggregate] tax imposed by section two hundred
eighty-two-a [and section two hundred eighty-two-b] of this [chapter]
ARTICLE, shall have been paid, shall be reimbursed, in the case of such
motor fuel, the amount paid pursuant to such [sections] SECTION two
hundred eighty-four [and two hundred eighty-four-a] in excess of four
cents per gallon, and in the case of diesel motor fuel, the amount paid
pursuant to such [sections] SECTION two hundred eighty-two-a [and two
hundred eighty-two-b] in excess of six cents per gallon, provided such
motor fuel or diesel motor fuel has been consumed by such carrier in the
operation of an omnibus in this state. Any taxicab licensee, as defined
by subdivision ten of section two hundred eighty-two of this [chapter]
ARTICLE, who or which shall buy any motor fuel on which the [aggregate]
tax imposed by section two hundred eighty-four [and section two hundred
eighty-four-a] of this [chapter] ARTICLE or any diesel motor fuel on
which the [aggregate] tax imposed by section two hundred eighty-two-a
[and section two hundred eighty-two-b] of this [chapter] ARTICLE, shall
have been paid, shall be reimbursed, in the case of such motor fuel, the
amount paid pursuant to such [sections] SECTION two hundred eighty-four
[and two hundred eighty-four-a] in excess of four cents per gallon, and
in the case of diesel motor fuel, the amount paid pursuant to such
[sections] SECTION two hundred eighty-two-a [and two hundred
eighty-two-b] in excess of six cents per gallon, provided such motor
fuel or diesel fuel has been consumed by such licensee in the operation
of a taxicab in this state.
(d) Any omnibus carrier which shall buy motor fuel on which the
[aggregate] tax imposed by section two hundred eighty-four[, section two
hundred eighty-four-a and section two hundred eighty-four-c] of this
[chapter] ARTICLE or any diesel motor fuel on which the [aggregate] tax
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imposed by section two hundred eighty-two-a[, section two hundred eight-
y-two-b and section two hundred eighty-two-c] of this [chapter] ARTICLE
shall have been paid, shall be reimbursed the amount paid provided such
motor fuel or diesel motor fuel has been consumed by such carrier in the
operation of an omnibus in local transit service in this state pursuant
to a certificate of convenience and necessity issued by the commissioner
of transportation of this state or by the interstate commerce commission
of the United States or pursuant to a contract, franchise or consent
between such carrier and a city having a population of more than one
million inhabitants, or any agency of such city.
(e) Any nonpublic school operator which shall buy motor fuel on which
the [aggregate] tax imposed by section two hundred eighty-four[, section
two hundred eighty-four-a and section two hundred eighty-four-c] of this
[chapter] ARTICLE or any diesel motor fuel on which the [aggregate] tax
imposed by section two hundred eighty-two-a[, section two hundred eight-
y-two-b and section two hundred eighty-two-c] of this [chapter] ARTICLE
shall have been paid, shall be reimbursed the amount paid provided such
motor fuel or diesel motor fuel has been consumed by such nonpublic
school operator exclusively in educational related activities.
S 6. Paragraph (b) of subdivision 5 of section 376 of the public
authorities law, as amended by chapter 55 of the laws of 1992, is
amended to read as follows:
(b) To assure the continued operation and solvency of the authority
for the carrying out of the purposes relating to this section, provision
is made in this section for the accumulation in the debt service reserve
fund of an amount equal to the maximum amount of principal and interest
maturing and becoming due in any succeeding calendar year on all bonds
of the authority then outstanding and secured by such reserve fund;
provided however for such bonds issued by the authority after April
first, nineteen hundred ninety-two, such debt service reserve fund may
in the discretion of the authority and consistent with any covenants
with any existing bondholders and without impairing the rights of any
existing bondholders be sized in an amount equal to not less than one-
half of the maximum amount of principal and interest maturing and becom-
ing due in any succeeding calendar year on such bonds of the authority
then outstanding and secured by such debt service reserve fund. In order
to further assure the maintenance of such debt service reserve fund,
with respect to bonds of the authority issued pursuant to subdivisions
two-a, two-b and two-c of this section after April first, nineteen
hundred ninety, the authority shall create a special subaccount in each
revenue fund established pursuant to any resolution or resolutions
authorizing such bonds. [Such subaccounts shall consist of the moneys
available after April first, nineteen hundred ninety, pursuant to
sections two hundred eighty-two-b, two hundred eighty-two-c, two hundred
eighty-four-a and two hundred eighty-four-c of the tax law, respective-
ly, in the emergency highway reconditioning and preservation fund
reserve account established pursuant to paragraph (b) of subdivision two
of section eighty-nine of the state finance law and in the emergency
highway construction and reconstruction fund reserve account established
pursuant to paragraph (b) of subdivision two of section eighty-nine-a of
the state finance law, apportioned and paid to the authority for deposit
in such subaccount of the revenue fund.] Amounts in each such subaccount
shall be kept separate and shall not be commingled with any other moneys
in the custody of the authority. Amounts in each such subaccount shall
be applied solely to pay such sum, if any, as shall semi-annually, (on
such dates as are established under the terms of any cooperative highway
A. 3620 5
contractual agreement of the department of transportation with the New
York state thruway authority entered into on or after April first, nine-
teen hundred ninety which is then in effect), be certified by the chair-
man of the authority to the governor and state director of the budget as
necessary to provide funds in an amount sufficient together with other
moneys available to the authority for such purpose, to pay one-half of
the total annual principal and interest maturing and becoming due during
the next succeeding twelve calendar months on all bonds of the authority
issued pursuant to subdivisions two-a, two-b and two-c of this section
after April first, nineteen hundred ninety and maintaining or funding
debt service reserve funds therefor. [Any surplus of funds in excess of
such certified amounts remaining in each such subaccount after such
payments, if any, have been made shall on the dates established under
the terms of such cooperative highway agreements, be paid over for
deposit, respectively, in the emergency highway reconditioning and pres-
ervation fund reserve account established pursuant to paragraph (b) of
subdivision two of section eighty-nine of the state finance law and in
the emergency highway construction and reconstruction fund reserve
account established pursuant to paragraph (b) of subdivision two of
section eighty-nine-a of the state finance law.]
S 7. Subdivision 5 of section 10-c of the highway law, as amended by
chapter 20 of the laws of 1983, is amended to read as follows:
5. For amounts to be distributed pursuant to this section above the
funding level, as defined in this subdivision, received by any munici-
pality, such municipality shall use at least seventy-five percent of
such apportioned moneys for the construction, reconstruction or improve-
ment of local highways, bridges and/or highway-railroad crossings,
including right of way acquisition, preliminary engineering, and
construction supervision and inspection, where the service life of the
project is at least ten years. Such moneys made available may be used to
match other state and federal funds made available for such projects
under federal-aid highway acts. The remainder of the apportionment, may
be used for any highway purposes, except debt service, including but not
limited to, the acquisition of materials and equipment devoted to opera-
tion and maintenance of local highways, bridges and/or highway-railroad
crossings and the payment of any costs directly attributable to opera-
tion and maintenance of local highways, bridges and/or highway-railroad
crossings. At the discretion of the commissioner, the requirement speci-
fied in this subdivision may be waived for assistance payments in
amounts of less than five thousand dollars. For purposes of this section
"funding level" shall mean the average amounts, calculated for each
municipality, received over two years ending March thirty-first, nine-
teen hundred eighty-two from the provisions of the town highway improve-
ment program, the distribution made by former section one hundred twelve
of this chapter, as repealed by section twenty-one of the transportation
systems assistance and financing act of 1981 of amounts collected from
taxes on motor fuel imposed by [sections] SECTION two hundred eighty-
four [and two hundred eighty-four-a] of the tax law and on Diesel motor
fuel imposed by [sections] SECTION two hundred eighty-two-a [and two
hundred eighty-two-b] of the tax law, and from motor vehicle fees
collected from residents pursuant to the vehicle and traffic law, [and]
the distribution made by former section two hundred seventy-nine of this
chapter, as repealed by section twenty-one of the transportation systems
assistance and financing act of 1981, AND THE DISTRIBUTIONS MADE BY
FORMER SECTIONS TWO HUNDRED EIGHTY-TWO-B AND TWO HUNDRED EIGHT-FOUR-A OF
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THE TAX LAW, AS REPEALED BY A CHAPTER OF THE LAWS OF TWO THOUSAND
FIFTEEN WHICH AMENDED THIS SUBDIVISION.
S 8. This act shall take effect on the ninetieth day after it shall
have become a law.