S T A T E O F N E W Y O R K
________________________________________________________________________
S. 3183 A. 4478
2019-2020 Regular Sessions
S E N A T E - A S S E M B L Y
February 4, 2019
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Budget and
Revenue
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred
to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an exemption from
the payment of the motor fuels tax and the sales tax on motor fuels
used in the operation of commercial fishing vessels
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 3 of section 282-a of the tax
law, as amended by section 3 of part W of chapter 59 of the laws of
2013, is amended to read as follows:
(b) The tax on the incidence of sale or use imposed by subdivision one
of this section shall not apply to: (i) the sale or use of non-highway
Diesel motor fuel, but only if all of such fuel is consumed other than
on the public highways of this state (except for the use of the public
highway by farmers to reach adjacent farmlands); provided, however, this
exemption shall in no event apply to a sale of non-highway Diesel motor
fuel which involves a delivery at a filling station or into a repository
which is equipped with a hose or other apparatus by which such fuel can
be dispensed into the fuel tank of a motor vehicle (except for delivery
at a farm site which qualifies for the exemption under subdivision (g)
of section three hundred one-b of this chapter); or (ii) a sale to the
consumer consisting of not more than twenty gallons of water-white kero-
sene to be used and consumed exclusively for heating purposes; or (iii)
the sale to or delivery at a filling station or other retail vendor of
water-white kerosene provided such filling station or other retail
vendor only sells such water-white kerosene exclusively for heating
purposes in containers of no more than twenty gallons; or (iv) a sale of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03163-01-9
S. 3183 2 A. 4478
kero-jet fuel to an airline for use in its airplanes or a use of kero-
jet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel
by a registered distributor of Diesel motor fuel to a fixed base opera-
tor registered under this article as a distributor of kero-jet fuel only
where such fixed base operator is engaged solely in making or offering
to make retail sales not in bulk of kero-jet fuel directly into the fuel
tank of an airplane for the purpose of operating such airplane; or (vi)
a retail sale not in bulk of kero-jet fuel by a fixed base operator
registered under this article as a distributor of kero-jet fuel only
where such fuel is delivered directly into the fuel tank of an airplane
for use in the operation of such airplane; or (vii) the sale of previ-
ously untaxed qualified biodiesel to a person registered under this
article as a distributor of Diesel motor fuel other than (A) a retail
sale to such person or (B) a sale to such person which involves a deliv-
ery at a filling station or into a repository which is equipped with a
hose or other apparatus by which such qualified biodiesel can be
dispensed into the fuel tank of a motor vehicle; or (viii) the sale of
previously untaxed highway Diesel motor fuel by a person registered
under this article as a distributor of Diesel motor fuel to a person
registered under this article as a distributor of Diesel motor fuel
where the highway Diesel motor fuel is either: (A) being delivered by
pipeline, railcar, barge, tanker or other vessel to a terminal, the
operator of which terminal is registered under section two hundred
eighty-three-b of this article, or (B) within such a terminal where it
has been so delivered. Provided, however, that the exemption set forth
in this subparagraph shall not apply to any highway Diesel motor fuel if
it is removed from a terminal, other than by pipeline, barge, tanker or
other vessel; OR (IX) A SALE OF DIESEL MOTOR FUEL TO A "COMMERCIAL FISH-
ERMAN", AS SUCH TERM IS DEFINED IN SUBDIVISION (I) OF SECTION THREE
HUNDRED OF THIS CHAPTER, AT RETAIL UNDER THE CIRCUMSTANCES SET FORTH IN
PARAGRAPH ONE OF SUBDIVISION (G) OF SECTION THREE HUNDRED ONE-C OF THIS
CHAPTER, AND WHERE SUCH COMMERCIAL FISHING VESSEL IS OPERATED BY A
COMMERCIAL FISHERMAN.
§ 2. Subdivision 4 of section 282-a of the tax law, as amended by
section 5 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
4. The tax imposed by this section on Diesel motor fuel shall be
passed through by the seller and included as part of the selling price
to each purchaser of such fuel. Provided, however, the amount of the tax
imposed by this section may be excluded from the selling price of Diesel
motor fuel where (i) a sale of Diesel motor fuel is made to an organiza-
tion described in paragraph (a) of subdivision three of this section
solely for the purpose stated therein; (ii) a sale of non-highway Diesel
motor fuel is made to a consumer but only if such non-highway Diesel
motor fuel is not delivered to a filling station, nor delivered into a
storage tank which is equipped with a hose or other apparatus by which
such fuel can be dispensed into the fuel tank of a motor vehicle; or
(iii) the sale to or delivery at a filling station or other retail
vendor of water-white kerosene provided such filling station or other
retail vendor only sells such water-white kerosene exclusively for heat-
ing purposes in containers of no more than twenty gallons; or (iv) a
sale of kero-jet fuel is made to an airline for use in its airplanes; OR
(V) A SALE OF DIESEL MOTOR FUEL IS MADE TO A "COMMERCIAL FISHERMAN", AS
SUCH TERM IS DEFINED IN SUBDIVISION (I) OF SECTION THREE HUNDRED OF THIS
CHAPTER, AT RETAIL UNDER THE CIRCUMSTANCES SET FORTH IN PARAGRAPH ONE OF
SUBDIVISION (G) OF SECTION THREE HUNDRED ONE-C OF THIS CHAPTER, AND
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WHERE SUCH COMMERCIAL FISHING VESSEL IS OPERATED BY A COMMERCIAL FISHER-
MAN.
§ 3. Section 301-b of the tax law is amended by adding a new subdivi-
sion (j) to read as follows:
(J) SALES OR USES OF DIESEL MOTOR FUEL AND RESIDUAL PETROLEUM PRODUCT
FOR COMMERCIAL FISHING. DIESEL MOTOR FUEL OR RESIDUAL PETROLEUM PRODUCT
SOLD TO OR USED BY A "COMMERCIAL FISHERMAN", AS SUCH TERM IS DEFINED IN
SUBDIVISION (I) OF SECTION THREE HUNDRED OF THIS ARTICLE, AT RETAIL
UNDER THE CIRCUMSTANCES SET FORTH IN PARAGRAPH ONE OF SUBDIVISION (G) OF
SECTION THREE HUNDRED ONE-C OF THIS ARTICLE, AND WHERE SUCH COMMERCIAL
FISHING VESSEL IS OPERATED BY A COMMERCIAL FISHERMAN.
§ 4. Subdivision (j) of section 1115 of the tax law, as amended by
section 41 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel, except
that the exemptions provided in paragraphs nine and forty-two of subdi-
vision (a) of this section shall apply to the tax required to be prepaid
pursuant to the provisions of section eleven hundred two of this article
and to the taxes imposed by sections eleven hundred five and eleven
hundred ten of this article with respect to sales and uses of kero-jet
fuel, CNG, hydrogen and E85, provided, however, the exemption allowed
for E85 shall be subject to the additional requirements provided in
section eleven hundred two of this article with respect to E85 AND
EXCEPT THAT THE EXEMPTION PROVIDED IN PARAGRAPH TWENTY-FOUR OF SUBDIVI-
SION (A) OF THIS SECTION SHALL APPLY TO THE TAXES IMPOSED BY SECTIONS
ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE WITH RESPECT
TO SALES AND USES OF DIESEL MOTOR FUEL USED IN THE OPERATION OF A FISH-
ING VESSEL AS DESCRIBED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A) OF
THIS SECTION. The exemption provided in subdivision (c) of this section
shall apply to sales and uses of non-highway diesel motor fuel but only
if all of such fuel is consumed other than on the public highways of
this state. The exemption provided in subdivision (c) of this section
shall apply to sales and uses of non-highway diesel motor fuel for use
or consumption either in the production for sale of tangible personal
property by farming or in a commercial horse boarding operation, or in
both but only if all of such fuel is consumed other than on the public
highways of this state (except for the use of the public highways to
reach adjacent farmlands or adjacent lands used in a commercial horse
boarding operation, or both).
§ 5. Subdivision (j) of section 1115 of the tax law, as amended by
section 41-a of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(j) The exemptions provided in this section shall not apply to the tax
required to be prepaid pursuant to the provisions of section eleven
hundred two of this article nor to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article with respect to
receipts from sales and uses of motor fuel or diesel motor fuel, except
that the exemption provided in paragraph nine of subdivision (a) of this
section shall apply to the tax required to be prepaid pursuant to the
provisions of section eleven hundred two of this article and to the
taxes imposed by sections eleven hundred five and eleven hundred ten of
this article with respect to sales and uses of kero-jet fuel AND EXCEPT
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THAT THE EXEMPTION PROVIDED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A)
OF THIS SECTION SHALL APPLY TO THE TAXES IMPOSED BY SECTIONS ELEVEN
HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE WITH RESPECT TO
SALES AND USES OF DIESEL MOTOR FUEL USED IN THE OPERATION OF A FISHING
VESSEL AS DESCRIBED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (A) OF THIS
SECTION. The exemption provided in subdivision (c) of this section
shall apply to sales and uses of non-highway diesel motor fuel but only
if all of such fuel is consumed other than on the public highways of
this state. The exemption provided in subdivision (c) of this section
shall apply to sales and uses of non-highway diesel motor fuel for use
or consumption either in the production for sale of tangible personal
property by farming or in a commercial horse boarding operation, or in
both but only if all of such fuel is consumed other than on the public
highways of this state (except for the use of the public highways to
reach adjacent farmlands or adjacent lands used in a commercial horse
boarding operation, or both).
§ 6. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, next commencing at least ninety days after this act shall have
become a law; sections four and five of this act shall apply to sales
made under and uses occurring on or after the dates such sections four
and five shall have taken effect, respectively, although made or occur-
ring under a prior contract; and provided further that such amendments
made by section four of this act shall be subject to the expiration and
reversion of such subdivision pursuant to section 19 of part W-1 of
chapter 109 of the laws of 2006, as amended, when upon such date the
provisions of section five of this act shall take effect.