NY State Senate Bill 2015-S330

Senate Bill S330

2015-2016 Legislative Session

Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities

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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
Jan 07, 2015	referred to investigations and government operations

2015-S330 (ACTIVE) - Details

See Assembly Version of this Bill:: A151
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§300, 301-a, 301-c, 1115 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7145, A9999
2013-2014: S1766, A1218
2017-2018: S4820, A6328
2019-2020: S3719, A5512
2021-2022: S5166, A5812
2023-2024: S2261, A3853

2015-S330 (ACTIVE) - Summary

Provides motor fuel tax exemption for sales of diesel motor fuel used in vessels used directly in a business providing sport fishing opportunities for hire to the general public from the tax on petroleum businesses and from sales and compensating use taxes.

2015-S330 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S330

 TITLE OF BILL :  An act to amend the tax law, in relation to
exempting fuel used in vessels used directly and predominantly in a
business providing sport fishing opportunities for hire to the general
public from the tax on petroleum businesses and from sales and
compensating use taxes

 PURPOSE :  Provides motor fuel tax exemption for sales of diesel
motor fuel used in vessels used directly in a business providing sport
fishing opportunities.

 SUMMARY OF PROVISIONS :  Amends the tax law to provide a full
exemption from both the petroleum business tax and sales and
compensating use tax for charter boats used directly and predominantly
in a business providing sport fishing opportunities for hire to the
general public.

 JUSTIFICATION :  The original intent of this policy, as it relates to
charter boats and commercial fishing vessels, was to prevent tax
evasion in the diesel fuel industry. However, it was not intended to
be burdensome to many of the state's industries such charter boats and
their fuel distributors.

The implementation of this law has caused a great deal of hardship for
the marine and party charter boat industry. The negative financial

consequences of this cash flow are a large burden for the charter boat
captains of this state.

The negative impacts of this law have also been carried over to the
fuel distributors of charter boats. Because of the payment
requirement, many captains are now purchasing their fuel at ports
outside of New York. This will result in the loss of thousands of
dollars in revenue for the state's fuel distributors. This legislation
would no longer require charter boats to pay any excise or state sales
taxes for the purchase of diesel motor fuel.

This legislation would provide a full exemption from both the
petroleum business tax and sales and compensating use tax for charter
boats used directly and predominantly in a business providing sport
fishing opportunities for hire to the general public.

 LEGISLATIVE HISTORY :  2013-14 S.1766A/A.1218A; 2012 S.7145

 FISCAL IMPLICATIONS : To be determined.

 EFFECTIVE DATE :  This act shall take effect on the ninetieth day
after it shall have become a law; provided, further that the
amendments to the opening paragraph of section 301-c of the tax law,
made by section four of this act shall affect the expiration and
repeal of such paragraph pursuant to section 19 of the part W-1 of
Chapter 109 of the Laws of 2006, as amended, and shall expire and be
deemed repealed therewith, when upon such date the provisions of
section five of this act shall take effect.

2015-S330 (ACTIVE) - Bill Text download pdf

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

    S. 330                                                    A. 151

                       2015-2016 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

IN ASSEMBLY -- Introduced by M. of A. THIELE, GRAF, GARBARINO,  SALADINO
  -- read once and referred to the Committee on Ways and Means

AN  ACT  to  amend  the  tax  law, in relation to exempting fuel used in
  vessels used directly and predominantly in a business providing  sport
  fishing  opportunities  for hire to the general public from the tax on
  petroleum businesses and from sales and compensating use taxes

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

  Section  1.    Section  300  of the tax law is amended by adding a new
subdivision (j-1) to read as follows:
  (J-1) "COMMERCIAL SPORT FISHING VESSEL" MEANS  A  VESSEL  OWNED  BY  A
PERSON,  WHO  HAS  BEEN  ISSUED  AND HOLDS A MARINE AND COASTAL DISTRICT
PARTY AND CHARTER BOAT LICENSE PURSUANT TO SECTION 13-0336 OF THE  ENVI-
RONMENTAL CONSERVATION LAW.
  S  2.  Paragraph 2 of subdivision (b) of section 301-a of the tax law,
as added by section 154 of part A of chapter 389 of the laws of 1997, is
amended to read as follows:
  (2) Motor fuel brought into this state in  the  fuel  tank  connecting
with  the  engine  of  a  vessel propelled by the use of such motor fuel
shall be deemed to constitute a  taxable  use  of  motor  fuel  for  the
purposes  of this subdivision to the extent that the fuel is consumed in
the operation of the vessel in this state. Provided, however, that  this
paragraph  shall  not  apply  to  (i)  a recreational motor boat or (ii)
subsequent to  August  thirty-first,  nineteen  hundred  ninety-four,  a
commercial  fishing  vessel  (as  defined  in subdivision (j) of section
three hundred of this article) if the motor fuel imported  and  consumed

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

                                                           LBD00718-01-5

S. 330                              2                             A. 151

in  this state is used to operate such vessel while it is engaged in the
harvesting of fish for sale OR (III) A COMMERCIAL SPORT FISHING  VESSEL,
IF  SUCH VESSEL PROVIDES ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR
HER  TOTAL  ANNUAL  INCOME.    Provided, further, that tax liability for
gallonage that a vessel consumes shall be the tax liability with respect
to the positive difference between the gallonage consumed in this  state
during  the  reporting  period and the gallonage purchased in this state
(upon which the tax imposed by this section has been paid)  during  such
period.  A  credit  or  refund  shall be available for any excess of tax
liability for gallonage purchased in this state during the  period  over
tax liability on gallonage so consumed in this state during such period,
which excess shall be presumed to have been used outside this state.
  S  3.  Subparagraph  (B)  of paragraph 1 of subdivision (c) of section
301-a of the tax law, as amended by section 19 of part K of  chapter  61
of the laws of 2011, is amended to read as follows:
  (B) Highway diesel motor fuel brought into this state in the fuel tank
connecting  with  the  engine  of  a vessel propelled by the use of such
diesel motor fuel shall be deemed to constitute a taxable use of  diesel
motor  fuel  for the purpose of this paragraph to the extent of the fuel
that is consumed in the operation of the vessel in this state. Provided,
however, this paragraph shall not apply to (i) a recreational motor boat
or (ii) a commercial fishing vessel (as defined in  subdivision  (j)  of
section  three hundred of this article) if the highway diesel motor fuel
imported into and consumed in this state is used to operate such commer-
cial fishing vessel while it is engaged in the harvesting  of  fish  for
sale OR (III) A COMMERCIAL SPORT FISHING VESSEL, IF SUCH VESSEL PROVIDES
ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR HER TOTAL ANNUAL INCOME.
Provided,  further,  that  tax  liability  for  gallonage  that a vessel
consumes in this state shall be the tax liability with  respect  to  the
positive  difference between the gallonage consumed in this state during
the reporting period and the gallonage purchased  in  this  state  (upon
which the tax imposed by this section has been paid) during such period.
A  credit  or  refund shall be available for any excess of tax liability
for gallonage purchased in this state during the period over tax liabil-
ity on gallonage so consumed in this state  during  such  period,  which
excess shall be presumed to have been used outside this state.
  S 4. The opening paragraph of section 301-c of the tax law, as amended
by  section 5 of part W-1 of chapter 109 of the laws of 2006, is amended
to read as follows:
  A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such  purchaser
in  accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or (o)
of this section or used by such purchaser in accordance with subdivision
(c), (d), (f), (g), (G-1), (i), (l) or (m) of this section, which gallo-
nage has been included in the measure of the tax imposed by this article
on a petroleum business:
  S 5. The opening paragraph of section 301-c of the tax law, as amended
by chapter 468 of the laws of 2000, is amended to read as follows:
  A subsequent purchaser shall be eligible for reimbursement of tax with
respect to the following gallonage, subsequently sold by such  purchaser
in  accordance  with  subdivision (a), (b), (e), (h), (j) or (k) of this
section or used by such purchaser in accordance  with  subdivision  (c),
(d),  (f),  (g), (G-1), (i), (l) or (m) of this section, which gallonage
has been included in the measure of the tax imposed by this article on a
petroleum business:

S. 330                              3                             A. 151

  S 6. Section 301-c of the tax law is amended by adding a new  subdivi-
sion (g-1) to read as follows:
  (G-1)  DIESEL  MOTOR  FUEL  AND  MOTOR  FUEL  USED IN THE OPERATION OF
COMMERCIAL SPORT FISHING  VESSELS.  DIESEL  MOTOR  FUEL  OR  MOTOR  FUEL
PURCHASED  IN  THIS  STATE BY THE OPERATOR OF A COMMERCIAL SPORT FISHING
VESSEL AT RETAIL WHEREIN SUCH DIESEL MOTOR FUEL OR SUCH  MOTOR  FUEL  IS
DELIVERED  BY A PUMP EQUIPPED WITH A HOSE DIRECTLY INTO THE FUEL TANK OF
A COMMERCIAL SPORT FISHING VESSEL TO BE USED AS FUEL IN THE OPERATION OF
SUCH VESSEL FOR THE PURPOSE OF PROVIDING SPORT FISHING OPPORTUNITIES FOR
HIRE TO THE GENERAL PUBLIC; BUT ONLY WHERE (1) THE TAX IMPOSED  PURSUANT
TO  THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SUCH DIESEL MOTOR FUEL OR
SUCH MOTOR FUEL AND THE ENTIRE AMOUNT OF SUCH TAX HAS BEEN  ABSORBED  BY
SUCH PURCHASER, (2) SUCH PURCHASER POSSESSES DOCUMENTARY PROOF SATISFAC-
TORY  TO  THE COMMISSIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE
AMOUNT OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE, AND (3)  THE  VESSEL
PROVIDES ITS OWNER WITH AT LEAST FIFTY PERCENT OF HIS OR HER TOTAL ANNU-
AL  INCOME.  PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL REQUIRE SUCH
DOCUMENTARY PROOF TO QUALIFY FOR ANY REIMBURSEMENT OF  TAX  PROVIDED  BY
THIS SECTION AS THE COMMISSIONER DEEMS APPROPRIATE.
  S  7.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 24-a to read as follows:
  (24-A) FUEL USED IN VESSELS USED DIRECTLY AND PREDOMINANTLY IN A BUSI-
NESS PROVIDING SPORT FISHING  OPPORTUNITIES  FOR  HIRE  TO  THE  GENERAL
PUBLIC; PROVIDED THAT SUCH VESSEL PROVIDES ITS OWNER WITH AT LEAST FIFTY
PERCENT OF HIS OR HER TOTAL ANNUAL INCOME.
  S  8.  Subparagraph  (i)  of paragraph 1 of subdivision (a) of section
1210 of the tax law, as amended by chapter 13 of the laws  of  2013,  is
amended to read as follows:
  (i) Any local law, ordinance or resolution enacted by any city of less
than one million or by any county or school district, imposing the taxes
authorized  by this subdivision, shall, notwithstanding any provision of
law to the contrary, exclude from the operation of such local taxes  all
sales  of tangible personal property for use or consumption directly and
predominantly in the production  of  tangible  personal  property,  gas,
electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
essing, generating, assembly, refining, mining or  extracting;  and  all
sales of tangible personal property for use or consumption predominantly
either  in  the  production  of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or  in  both;  and,
unless such city, county or school district elects otherwise, shall omit
THE FUEL USED IN COMMERCIAL SPORT FISHING VESSELS EXEMPTION PROVIDED FOR
IN  PARAGRAPH TWENTY-FOUR-A OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER, the provision for credit or refund contained in
clause six of subdivision (a)  or  subdivision  (d)  of  section  eleven
hundred nineteen of this chapter.
  S  9.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE FUEL USED IN COMMERCIAL SPORT FISHING VESSELS EXEMPTION  FROM  STATE
SALES AND COMPENSATING USE TAXES DESCRIBED IN PARAGRAPH TWENTY-FOUR-A OF
SUBDIVISION  (A)  OF  SECTION  ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY

S. 330                              4                             A. 151

ENACTING A RESOLUTION IN THE FORM SET FORTH IN  PARAGRAPH  TWO  OF  THIS
SUBDIVISION;  WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVI-
SIONS (D) AND (E) OF THIS SECTION, SUCH  ENACTMENT  OF  SUCH  RESOLUTION
SHALL  BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN
AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL  BE  DEEMED  TO  INCORPORATE
SUCH  EXEMPTIONS  AS IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLA-
TURE AND APPROVED BY THE GOVERNOR.
  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR, OR FOR THE USE  OF,  PROPERTY  AND  SERVICES
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO PARAGRAPH
TWENTY-FOUR-A  OF  SUBDIVISION  (A) OF SECTION 1115 OF THE TAX LAW SHALL
ALSO BE EXEMPT FROM SALES AND COMPENSATING USE  TAXES  IMPOSED  IN  THIS
JURISDICTION.
  SECTION  TWO.  THIS  RESOLUTION  SHALL TAKE EFFECT JUNE 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2010) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE  IN  ACCORD-
ANCE  WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216
AND 1217 OF THE NEW YORK TAX LAW.
  S 10.  This act shall take effect on the ninetieth day after it  shall
have become a law; provided, further, that the amendments to the opening
paragraph  of section 301-c of the tax law, made by section four of this
act shall not affect the expiration and repeal of such paragraph  pursu-
ant  to  section  19  of part W-1 of chapter 109 of the laws of 2006, as
amended, and shall expire and be deemed repealed  therewith,  when  upon
such date the provisions of section five of this act shall take effect.

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