S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    39
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ENGLE-
   BRIGHT, GUNTHER, LUPARDO, MORELLE, ROSENTHAL -- read once and referred
   to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to eliminating the  residential
   restriction for heating exemptions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (d) of section 301-b of the tax law, as amended
 by section 21 of part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (d) Sales to consumers for heating purposes.  [(1)  Total  residential
 heating]  HEATING  exemption.  Non-highway  diesel  motor fuel sold by a
 petroleum business registered under article twelve-A of this chapter  as
 a distributor of diesel motor fuel or residual petroleum product sold by
 a  petroleum business registered under this article as a residual petro-
 leum product business to  the  consumer  exclusively  for  [residential]
 heating purposes only if such non-highway diesel motor fuel is delivered
 into a storage tank which is not equipped with a hose or other apparatus
 by  which such fuel can be dispensed into the fuel tank of a motor vehi-
 cle and such storage tank is attached to the heating unit  burning  such
 fuel.
   [(2) Partial non-residential heating exemption. (A) Non-highway diesel
 motor  fuel  sold  by  a  petroleum  business  registered  under article
 twelve-A of this chapter as a distributor of diesel motor fuel or  resi-
 dual  petroleum  product  sold  by a petroleum business registered under
 this article as a residual petroleum product business  to  the  consumer
 exclusively for heating, other than residential heating purposes only if
 such  non-highway  diesel  motor  fuel  is delivered into a storage tank
 which is not equipped with a hose or other apparatus by which such  fuel

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

                                                            LBD01323-01-7

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 can  be dispensed into the fuel tank of a motor vehicle and such storage
 tank is attached to the heating unit burning such fuel
   (B) Calculation of partial exemption. The partial exemption under this
 paragraph shall be determined by multiplying the quantity of non-highway
 diesel  motor  fuel  and  residual  petroleum  product  eligible for the
 exemption times the sum of the then current rate of the supplemental tax
 imposed by section three hundred one-j of  this  article  and  forty-six
 percent  of  the  then  current rate of the tax imposed by section three
 hundred one-a of this article, with respect to the specific  non-highway
 diesel  motor  fuel  or residual petroleum product rate, as the case may
 be.]
   § 2. Subdivision (a) of section 301-c of the tax law,  as  amended  by
 section  23  of  part K of chapter 61 of the laws of 2011, is amended to
 read as follows:
   (a) Non-highway Diesel motor fuel  used  for  heating  purposes.  [(1)
 Total  residential  heating]  HEATING  reimbursement. Non-highway Diesel
 motor fuel purchased in this state and  sold  by  such  purchaser  to  a
 consumer for use exclusively for [residential] heating purposes but only
 where (i) such non-highway diesel motor fuel is delivered into a storage
 tank  which is not equipped with a hose or other apparatus by which such
 non-highway Diesel motor fuel can be dispensed into the fuel tank  of  a
 motor  vehicle  and  such  storage  tank is attached to the heating unit
 burning such non-highway Diesel motor fuel, (ii) the tax imposed  pursu-
 ant  to  this  article  has  been  paid with respect to such non-highway
 diesel motor fuel and the entire amount of such tax has been absorbed by
 such purchaser, and (iii) such  purchaser  possesses  documentary  proof
 satisfactory  to the commissioner evidencing the absorption by it of the
 entire amount of the tax imposed pursuant  to  this  article.  Provided,
 however,  that  the  commissioner  is  authorized, in the event that the
 commissioner determines that it would not threaten the integrity of  the
 administration  and  enforcement  of the tax imposed by this article, to
 provide a reimbursement with respect to a retail sale to a consumer  for
 [residential]  heating  purposes of less than ten gallons of non-highway
 diesel motor fuel provided such fuel is not dispensed into the tank of a
 motor vehicle.
   [(2) Partial non-residential heating  reimbursement.  (A)  Non-highway
 Diesel  motor fuel purchased in this state and sold by such purchaser to
 a consumer for use exclusively for heating, other than  for  residential
 heating  purposes, but only where (i) such non-highway diesel motor fuel
 is delivered into a storage tank which is not equipped with  a  hose  or
 other  apparatus  by  which  such  non-highway  Diesel motor fuel can be
 dispensed into the fuel tank of a motor vehicle and such storage tank is
 attached to the heating unit burning such non-highway Diesel motor fuel,
 (ii) the tax imposed pursuant to this article has been paid with respect
 to such non-highway diesel motor fuel and the entire amount of such  tax
 has  been absorbed by such purchaser, and (iii) such purchaser possesses
 documentary  proof  satisfactory  to  the  commissioner  evidencing  the
 absorption  by  it  of  the entire amount of the tax imposed pursuant to
 this article.
   (B) Calculation of partial reimbursement.  Notwithstanding  any  other
 provision  of  this  article, the amount of the reimbursement under this
 paragraph shall be determined by multiplying the quantity of non-highway
 diesel motor fuel eligible for the reimbursement times the  sum  of  the
 then  current  rate  of  the  supplemental  tax imposed by section three
 hundred one-j of this article and forty-six percent of the then  current
 rate  of the tax imposed by section three hundred one-a of this article,

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 with respect to the non-highway diesel motor fuel rate, as the case  may
 be.]
   §  3.  This act shall take effect April 1, 2017; provided, however, if
 this act shall become a law after such date it shall be deemed  to  have
 been in full force and effect on and after April 1, 2017.