S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8626
 
                           I N  A S S E M B L Y
 
                             January 10, 2022
                                ___________
 
 Introduced by M. of A. CUSICK -- 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 payments of the petroleum business tax on the operation of commer-
   cial tugboats, barges and other commercial towboats
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings  and  declarations. The legislature
 hereby finds that commercial tugboat, barge and other commercial towboat
 operators are subject to the petroleum business tax when  their  vessels
 are used in commercial tugboat, barge and other commercial towboat oper-
 ations.  The  legislature  further  finds  that such commercial tugboat,
 barge and other commercial towboat operators  endure  an  administrative
 and  unexpected  financial  burden  as  a result of such law that is not
 warranted by the minimal amounts to be  collected  from  the  commercial
 tugboat, barge and other commercial towboat operators under such law, as
 determined by the state of New York.
   The  legislature,  therefore, declares that it is in the best interest
 of the commercial tugboat, barge and other commercial  towboat  industry
 of  the  state  of  New York to exempt the commercial tugboat, barge and
 other commercial towboat industry from this tax.
   § 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
 in this state is used to operate such vessel while it is engaged in  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13954-03-1
 A. 8626                             2
 
 harvesting of fish for sale  OR (III) SUBSEQUENT TO AUGUST THIRTY-FIRST,
 TWO THOUSAND TWENTY-TWO, A COMMERCIAL TUGBOAT, BARGE OR OTHER COMMERCIAL
 TOWBOAT  OPERATOR  IF THE MOTOR FUEL IMPORTED AND CONSUMED IN THIS STATE
 IS  USED  TO  OPERATE  VESSELS  OF SUCH OPERATORS WHILE SUCH OPERATOR IS
 ENGAGED IN COMMERCIAL TUGBOAT, BARGE OR OTHER COMMERCIAL  TOWBOAT  OPER-
 ATIONS IN THE STATE. 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 liabil-
 ity  on  gallonage  so  consumed in this state during such period, which
 excess shall be presumed to have been used outside this state.
   § 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) SUBSEQUENT TO AUGUST THIRTY-FIRST,  TWO  THOUSAND  TWENTY-
 TWO, A COMMERCIAL TUGBOAT, BARGE OR OTHER COMMERCIAL TOWBOAT OPERATOR IF
 THE  HIGHWAY  DIESEL  MOTOR  FUEL IMPORTED AND CONSUMED IN THIS STATE IS
 USED TO OPERATE VESSELS OF SUCH OPERATOR WHILE SUCH OPERATOR IS  ENGAGED
 IN  COMMERCIAL  TUGBOAT, BARGE OR OTHER COMMERCIAL TOWBOAT OPERATIONS IN
 THIS STATE. 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 liability on gallonage so consumed in this state during such period,
 which excess shall be presumed to have been used outside this state.
   § 4. Section 301-b of the tax law is amended by adding a new  subdivi-
 sion (j) to read as follows:
   (J)  EXEMPTION  FOR  COMMERCIAL  TUGBOAT,  BARGE,  OR OTHER COMMERCIAL
 TOWBOAT OPERATORS. A USE  BY  A  COMMERCIAL  TUGBOAT,  BARGE,  OR  OTHER
 COMMERCIAL TOWBOAT OPERATOR OF NON-HIGHWAY DIESEL MOTOR FUEL OR RESIDUAL
 PETROLEUM  PRODUCT  WHERE SUCH NON-HIGHWAY DIESEL MOTOR FUEL OR RESIDUAL
 PETROLEUM PRODUCT WAS USED AND CONSUMED BY A COMMERCIAL TUGBOAT,  BARGE,
 OR  OTHER  COMMERCIAL  TOWBOAT OPERATOR IN COMMERCIAL TUGBOAT, BARGE, OR
 OTHER COMMERCIAL TOWBOAT OPERATIONS IN THE STATE.
   § 5. This act shall take effect August 31, 2022.