S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8526
 
                             I N  S E N A T E
 
                               March 9, 2022
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, the general  business  law  and  the  state
   finance law, in relation to establishing a temporary fuel tax holiday
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 47  to  read
 as follows:
   § 47. FUEL TAX HOLIDAY. (A) DEFINITIONS. FOR PURPOSES OF THIS SECTION,
   (1)  "APPLICABLE PERIOD" SHALL MEAN THE PERIOD BEGINNING FOURTEEN DAYS
 AFTER THE EFFECTIVE DATE OF THIS SECTION AND ENDING ONE YEAR AFTER  SUCH
 BEGINNING DATE.
   (2)  "DIESEL  MOTOR FUEL" AND "MOTOR FUEL" SHALL HAVE THE SAME MEANING
 AS SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (3) "FILLING STATION" SHALL HAVE  THE  SAME  MEANING  AS  SECTION  TWO
 HUNDRED EIGHTY-TWO OF THIS CHAPTER.
   (4)  "RETAIL  SALE"  AND "SOLD AT RETAIL" SHALL MEAN ANY SALE OF MOTOR
 FUEL OR DIESEL MOTOR FUEL AT A FILLING STATION TO A PERSON FOR USE IN  A
 MOTOR VEHICLE.
   (5)  "RETAIL  SELLER"  SHALL  MEAN  ANY PERSON WHO SELLS MOTOR FUEL OR
 DIESEL MOTOR FUEL AT RETAIL.
   (6) "SALE" SHALL HAVE THE SAME MEANING AS SECTION TWO HUNDRED  EIGHTY-
 TWO OF THIS CHAPTER.
   (B)  EXEMPTION  FROM  TAXATION. NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW, RULE OR REGULATION TO THE CONTRARY, THE  TAXES  IMPOSED  ON  RETAIL
 SALES  OF  MOTOR  FUEL  AND DIESEL MOTOR FUEL MADE DURING THE APPLICABLE
 PERIOD SHALL BE EXEMPT FROM THE  TAXES  IMPOSED  BY  ARTICLES  TWELVE-A,
 THIRTEEN-A,  AND  TWENTY-EIGHT  OF THIS CHAPTER. IF THE RETAIL SELLER IS
 LOCATED WITHIN A MUNICIPALITY THAT HAS  ELECTED  TO  ELIMINATE  THE  TAX
 IMPOSED  PURSUANT  TO  ARTICLE  TWENTY-NINE  OF THIS CHAPTER, SUCH TAXES
 SHALL NOT BE IMPOSED ON THE RETAIL SALE OF MOTOR FUEL  OR  DIESEL  MOTOR
 FUEL DURING THE APPLICABLE PERIOD.
   (C)  PRICE REDUCTION. DURING THE APPLICABLE PERIOD, EACH RETAIL SELLER
 SHALL REDUCE THE PRICE PER GALLON OF MOTOR FUEL AND  DIESEL  MOTOR  FUEL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14953-01-2
 S. 8526                             2
 
 OFFERED  FOR  SALE  BY  THE  AMOUNT  OF THE TAXES THAT THE RETAIL SELLER
 PREPAID ON THE GALLON OF MOTOR FUEL AND DIESEL MOTOR FUEL AND THE AMOUNT
 OF TAX IN EXCESS OF THE PREPAID AMOUNT THAT WOULD  HAVE  BEEN  COLLECTED
 FROM THE CONSUMER IF THE SALE OF THE MOTOR FUEL OR DIESEL MOTOR FUEL HAD
 NOT BEEN EXEMPT FROM TAX PURSUANT TO SUBDIVISION (B) OF THIS SECTION.
   (D)  ADVERTISING.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE
 CONTRARY, A RETAIL SELLER MAY  ADVERTISE  THAT  THE  MOTOR  FUEL  AND/OR
 DIESEL MOTOR FUEL IS BEING OR WILL BE SOLD WITHOUT THE STATE TAXES. SUCH
 ADVERTISEMENT  MAY COMMENCE NO EARLIER THAN THREE DAYS BEFORE THE APPLI-
 CABLE PERIOD AND MUST END BY THE END OF THE APPLICABLE PERIOD.
   (E) REFUNDS AND CREDITS. (1) NOTWITHSTANDING ANY  OTHER  PROVISION  OF
 LAW  TO  THE  CONTRARY, THE RETAIL SELLER SHALL BE ENTITLED TO RECEIVE A
 CREDIT AGAINST THE TAXES DUE PURSUANT TO ARTICLE  TWENTY-EIGHT  OF  THIS
 CHAPTER FOR THE AMOUNT OF TAX THAT THE RETAIL SELLER PREPAID PURSUANT TO
 ARTICLES  TWELVE-A, THIRTEEN-A, TWENTY-EIGHT AND, IF APPLICABLE, TWENTY-
 NINE OF THIS CHAPTER. IF THE RETAIL SELLER IS LOCATED WITHIN  A  MUNICI-
 PALITY THAT HAS ELECTED TO ELIMINATE THE TAX IMPOSED PURSUANT TO ARTICLE
 TWENTY-NINE  OF  THIS  CHAPTER,  THE  RETAIL SELLER SHALL BE ENTITLED TO
 CLAIM A CREDIT AGAINST THE TAXES DUE PURSUANT TO ARTICLE TWENTY-EIGHT OF
 THIS CHAPTER FOR SUCH PREPAID TAXES. THE AMOUNT OF  CREDIT  SHALL  EQUAL
 THE  AMOUNT OF TAX THAT WAS PREPAID PURSUANT TO ARTICLES TWELVE-A, THIR-
 TEEN-A, TWENTY-EIGHT AND, IF APPLICABLE, TWENTY-NINE OF THIS CHAPTER FOR
 EACH GALLON OF MOTOR FUEL AND DIESEL MOTOR FUEL SOLD  AT  RETAIL  DURING
 THE  APPLICABLE  PERIOD. SUCH CREDIT SHALL NOT BE ALLOWED FOR SALES THAT
 WOULD HAVE OTHERWISE BEEN EXEMPT FROM TAX.
   (2) A RETAIL SELLER MAY CLAIM THE CREDIT PRESCRIBED IN  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION WHEN THE RETAIL SELLER FILES ITS RETURN OF TAX FOR
 THE SALES OF MOTOR FUEL AND  DIESEL  MOTOR  FUEL  FOR  THE  PERIOD  THAT
 INCLUDES  THE  APPLICABLE  PERIOD.  NOTWITHSTANDING  THE FOREGOING, IF A
 RETAILER SELLER IS REQUIRED TO FILE ITS RETURN  MORE  THAN  THIRTY  DAYS
 AFTER  THE  CLOSE  OF  THE APPLICABLE PERIOD DEFINED IN PARAGRAPH ONE OF
 SUBDIVISION (A) OF THIS SECTION, SUCH RETAILER SHALL  BE  AUTHORIZED  TO
 FILE  AN AMENDMENT TO ITS MOST RECENTLY FILED RETURN TO CLAIM SUCH CRED-
 IT. NO CREDIT MAY BE CLAIMED FOR THE TAXES PREPAID PURSUANT  TO  ARTICLE
 TWELVE-A,  THIRTEEN-A,  TWENTY-EIGHT  OR,  IF APPLICABLE, TWENTY-NINE OF
 THIS CHAPTER PURSUANT TO THIS SECTION  IF  THE  CLAIM  WOULD  HAVE  BEEN
 BARRED  PURSUANT  TO THE ARTICLE THAT REQUIRED PREPAYMENT OF SUCH TAXES.
 NO INTEREST SHALL BE PAID ON ANY CLAIMS FOR CREDIT MADE PURSUANT TO THIS
 SECTION.
   § 2. Section 88-a of the state finance law is amended by adding a  new
 subdivision 8 to read as follows:
   8.  BY  MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, THE COMPTROLLER
 SHALL TRANSFER FROM THE GENERAL FUND TO THE MASS TRANSPORTATION  OPERAT-
 ING ASSISTANCE FUND AN AMOUNT NO GREATER THAN THE AMOUNT THAT WOULD HAVE
 OTHERWISE BEEN DEPOSITED IN THE MASS TRANSPORTATION OPERATING ASSISTANCE
 FUND  PURSUANT  TO  THIS SECTION IF THE EXEMPTION DEFINED IN SUBDIVISION
 (B) OF SECTION FORTY-SEVEN OF THE  TAX  LAW  HAD  NOT  BEEN  AUTHORIZED;
 PROVIDED  HOWEVER  THAT  THE  COMPTROLLER  SHALL MAKE SUCH TRANSFER ONLY
 AFTER THE DIRECTOR OF THE BUDGET HAS DETERMINED IN HIS OR HER DISCRETION
 THAT THE TRANSFER IS NECESSARY TO ENSURE A POSITIVE FUND BALANCE OF  THE
 MASS  TRANSPORTATION  OPERATING  ASSISTANCE  FUND  AT THE END OF THE TWO
 THOUSAND ELEVEN-TWO THOUSAND TWELVE STATE FISCAL YEAR.
   § 3. Subdivision 3 of section 89-b of the state finance law is amended
 by adding a new paragraph (g) to read as follows:
   (G) WITHIN FORTY-FIVE DAYS AFTER AN APPLICABLE PERIOD  AS  DEFINED  BY
 SUBDIVISION  (A) OF SECTION FORTY-SEVEN OF THE TAX LAW, THE COMPTROLLER,
 S. 8526                             3
 
 IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE  BUDGET,  SHALL
 TRANSFER  FROM  THE  GENERAL  FUND TO THE SPECIAL OBLIGATION RESERVE AND
 PAYMENT ACCOUNT AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE  OTHERWISE
 BEEN  DEPOSITED  IN  THE  SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT
 PURSUANT TO THIS SECTION IF THE EXEMPTION DEFINED IN SUBDIVISION (B)  OF
 SECTION FORTY-SEVEN OF THE TAX LAW HAD NOT BEEN AUTHORIZED.
   §  4. Section 89-c of the state finance law is amended by adding a new
 subdivision 4 to read as follows:
   4. WITHIN FORTY-FIVE DAYS AFTER AN APPLICABLE  PERIOD  AS  DEFINED  BY
 SUBDIVISION  (A) OF SECTION FORTY-SEVEN OF THE TAX LAW, THE COMPTROLLER,
 IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF THE  BUDGET,  SHALL
 TRANSFER  FROM  THE  GENERAL  FUND  TO THE DEDICATED MASS TRANSPORTATION
 TRUST FUND AN AMOUNT EQUAL TO THE AMOUNT THAT WOULD HAVE OTHERWISE  BEEN
 DEPOSITED  IN  THE  DEDICATED MASS TRANSPORTATION TRUST FUND PURSUANT TO
 THIS SECTION IF THE EXEMPTION DEFINED  IN  SUBDIVISION  (B)  OF  SECTION
 FORTY-SEVEN OF THE TAX LAW HAD NOT BEEN AUTHORIZED.
   §  5. Section 392-i of the general business law, as amended by section
 5 of part M-1 of chapter 109 of the laws of 2006, is amended to read  as
 follows:
   §  392-i.  Prices  reduced to reflect change in sales tax computation.
 Every person engaged in the retail sale  of  motor  fuel  and/or  diesel
 motor  fuel  or  a  distributor  of  such  fuels,  as defined in article
 twelve-A of the tax law, shall reduce the price such person charges  for
 motor  fuel and/or diesel motor fuel in an amount equal to any reduction
 in taxes prepaid by the distributor, CREDIT  FOR  THE  AMOUNT  OF  TAXES
 PREPAID  BY  THE RETAIL SELLER ALLOWABLE PURSUANT TO SECTION FORTY-SEVEN
 OF THE TAX LAW, EXEMPTION FROM TAXATION PURSUANT TO SECTION  FORTY-SEVEN
 OF THE TAX LAW TO THE EXTENT THAT THE TAX THAT WOULD HAVE BEEN OTHERWISE
 DUE  EXCEEDS  THE  AMOUNT  OF  TAX  PREPAID, or paid by retail customers
 resulting from computing sales and compensating use AND OTHER taxes at a
 cents per gallon rate pursuant to the provisions  of  paragraph  two  of
 subdivision  (e) and subdivision (m) of section eleven hundred eleven of
 the tax law.
   § 6. Paragraph 1 of subdivision (n) of section 1817 of the tax law, as
 amended by section 30 of subpart I of part V-1 of chapter 57 of the laws
 of 2009, is amended to read as follows:
   (1) Every person engaged in the  retail  sale  of  motor  fuel  and/or
 diesel  motor fuel or a distributor of such fuels, as defined in article
 twelve-A of this chapter, shall comply with the  provisions  of  section
 three  hundred  ninety-two-i of the general business law by reducing the
 prices charged for motor fuel and diesel motor fuel in an  amount  equal
 to  any  reduction  in  taxes prepaid by the distributor, CREDIT FOR THE
 AMOUNT OF TAXES PREPAID BY  THE  RETAIL  SELLER  ALLOWABLE  PURSUANT  TO
 SECTION  FORTY-SEVEN OF THE TAX LAW, EXEMPTION FROM TAXATION PURSUANT TO
 SECTION FORTY-SEVEN OF THE TAX LAW TO THE EXTENT THAT THE TAX THAT WOULD
 HAVE BEEN OTHERWISE DUE EXCEEDS THE AMOUNT OF TAX PREPAID, or imposed on
 retail customers resulting from computing  sales  and  compensating  use
 taxes at a cents per gallon rate pursuant to the provisions of paragraph
 two  of  subdivision (e) and subdivision (m) of section one thousand one
 hundred eleven of this chapter.
   § 7. Notwithstanding any law to the contrary, a municipality may  make
 the  election to eliminate all taxes on motor fuel and diesel motor fuel
 pursuant to sections eleven hundred seven and eleven  hundred  eight  of
 the  tax  law  or  article twenty-nine of the tax law beginning fourteen
 days after the effective date of this section and ending one year  after
 such  beginning  date,  by  local  law, ordinance or resolution, if such
 S. 8526                             4

 municipality mails, by certified or registered mail, a certified copy of
 such local law, ordinance or resolution to the commissioner of  taxation
 and  finance  at his or her office in Albany no later than the Wednesday
 immediately  preceding the applicable period as defined by paragraph one
 of subdivision (a) of section forty-seven of the tax law.
   § 8. The commissioner of taxation and finance shall (a) on an emergen-
 cy basis, promulgate and/or amend any rules and regulations necessary to
 provide for the tax free sales of motor fuel and diesel motor  fuel  and
 refunds of prepaid tax to retail sellers; and
   (b) immediately make provisions for retail sellers to apply for credit
 for  the  taxes  prepaid  pursuant   to articles twelve-A,   thirteen-A,
 twenty-eight, and, if applicable, twenty-nine of the tax law.
   § 9. This act shall take effect immediately.