S T A T E O F N E W Y O R K
________________________________________________________________________
8728--A
I N S E N A T E
April 5, 2022
___________
Introduced by Sens. TEDISCO, JORDAN, BORRELLO, MARTUCCI, WEIK -- read
twice and ordered printed, and when printed to be committed to the
Committee on Budget and Revenue -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing limitations on
excise and sales taxes and petroleum business taxes on diesel motor
fuel and motor fuel and to authorize cities having a population of one
million or more and counties to adopt local laws limiting taxes on
diesel motor fuel and motor fuel
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 282-a of the tax law, as amended
by section 2 of part W of chapter 59 of the laws of 2013, is amended and
a new subdivision 1-a is added to read as follows:
1. [There] SUBJECT TO THE PROVISIONS OF SUBDIVISION ONE-A OF THIS
SECTION, THERE is hereby levied and imposed with respect to Diesel motor
fuel an excise tax of four cents per gallon upon the sale or use of
Diesel motor fuel in this state.
The excise tax is imposed on the first sale or use of Diesel motor
fuel to occur which is not exempt from tax under this article. Provided,
however, if the tax has not been imposed prior thereto, it shall be
imposed on the removal of highway Diesel motor fuel from a terminal,
other than by pipeline, barge, tanker or other vessel, or the delivery
of Diesel motor fuel to a filling station or into the fuel tank connect-
ing with the engine of a motor vehicle for use in the operation thereof
whichever event shall be first to occur. The tax shall be computed based
upon the number of gallons of Diesel motor fuel sold, removed or used or
the number of gallons of Diesel fuel delivered into the fuel tank of a
motor vehicle, as the case may be. Nothing in this article shall be
construed to require the payment of such excise tax more than once upon
the same Diesel motor fuel. Nor shall the collection of such tax be made
applicable to the sale or use of Diesel motor fuel under circumstances
which preclude the collection of such tax by reason of the United States
constitution and of laws of the United States enacted pursuant thereto.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15269-03-2
S. 8728--A 2
Provided, further, no Diesel motor fuel shall be included in the measure
of the tax unless it shall have previously come to rest within the mean-
ing of federal decisional law interpreting the United States constitu-
tion. All tax for the period for which a return is required to be filed
shall be due on the date limited for the filing of the return for such
period, regardless of whether a return is filed as required by this
article or whether the return which is filed correctly shows the amount
of tax due.
1-A. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY ONE-QUARTER OF A PERCENTAGE POINT
(.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR
FUEL PER GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED
ENTIRELY IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR
EXCEEDS THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN
THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS
SECTION SHALL BE ASSESSED IN INCREASES OF ONE-QUARTER OF A PERCENTAGE
POINT (.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
MOTOR FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF
MOTOR FUEL.
§ 2. Section 282-b of the tax law, as amended by section 1 of part EE
of chapter 63 of the laws of 2000, is amended to read as follows:
§ 282-b. Additional Diesel motor fuel tax. 1. In addition to the tax
imposed by section two hundred eighty-two-a of this [chapter] ARTICLE, a
like tax shall be imposed at the rate of three cents per gallon upon
sale or use within the state of Diesel motor fuel or upon the delivery
of Diesel motor fuel to a filling station or into the fuel tank of a
motor vehicle for use in the operation thereof. Except as otherwise
provided in this section, all of the provisions of this article shall
apply with respect to the additional tax imposed by this section to the
same extent as if it were imposed by said section two hundred eighty-
two-a. Beginning on April first, nineteen hundred ninety-one, four and
one-sixth per centum of the moneys received by the department pursuant
to the provisions of this section shall be deposited to the credit of
the emergency highway reconditioning and preservation fund reserve
account established pursuant to the provisions of paragraph (b) of
subdivision two of FORMER section eighty-nine of the state finance law.
Beginning on April first, nineteen hundred ninety-one, four and one-
sixth per centum of the moneys received by the department pursuant to
the provisions of this section shall be deposited to the credit of the
emergency highway construction and reconstruction fund reserve account
established pursuant to the provisions of paragraph (b) of subdivision
two of FORMER section eighty-nine-a of the state finance law. Beginning
on April first, nineteen hundred ninety-two, an additional eight and
one-third per centum of the moneys received by the department pursuant
to the provisions of this section shall be deposited to the credit of
the emergency highway reconditioning and preservation fund reserve
account established pursuant to the provisions of paragraph (b) of
subdivision two of FORMER section eighty-nine of the state finance law.
Beginning on April first, nineteen hundred ninety-two, an additional
eight and one-third per centum of the moneys received by the department
pursuant to the provisions of this section shall be deposited to the
S. 8728--A 3
credit of the emergency highway construction and reconstruction fund
reserve account established pursuant to the provisions of paragraph (b)
of subdivision two of FORMER section eighty-nine-a of the state finance
law. Beginning on April first, two thousand one, seventy-five per centum
of the moneys received by the department pursuant to the provisions of
this section shall be deposited in the dedicated fund accounts pursuant
to subdivision (d) of section three hundred one-j of this chapter.
Beginning on April first, two thousand three, all of the moneys received
by the department pursuant to the provisions of this section shall be
deposited in the dedicated fund accounts pursuant to subdivision (d) of
section three hundred one-j of this chapter.
2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY TWO-TENTHS OF A PERCENTAGE POINT (.002)
FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER
GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF
THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR EXCEEDS THREE
DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS SECTION
SHALL BE ASSESSED IN INCREASES OF TWO-TENTHS OF A PERCENTAGE POINT
(.002) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR
FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF
MOTOR FUEL.
§ 3. Section 282-c of the tax law, as amended by section 2 of part EE
of chapter 63 of the laws of 2000, is amended to read as follows:
§ 282-c. Supplemental Diesel motor fuel tax. 1. In addition to the
taxes imposed by sections two hundred eighty-two-a and two hundred
eighty-two-b of this [chapter] ARTICLE, a like tax shall be imposed at
the rate of one cent per gallon upon the sale or use within the state of
Diesel motor fuel or upon the delivery of Diesel motor fuel to a filling
station or into the fuel tank of a motor vehicle for use in the opera-
tion thereof. Except for paragraph (b) of subdivision three of section
two hundred eighty-nine-c OF THIS ARTICLE, all the provisions of this
article shall apply with respect to the supplemental tax imposed by this
section to the same extent as if it were imposed by said section two
hundred eighty-two-a. On and after the first day of October, nineteen
hundred seventy-two, twenty-five per centum of the monies received by
the department pursuant to the provisions of this section shall be
deposited to the credit of the emergency highway reconditioning and
preservation fund established pursuant to the provisions of FORMER
section eighty-nine of the state finance law. Beginning on April first,
nineteen hundred eighty-three, twenty-five per centum of the monies
received by the department pursuant to the provisions of this section
shall be deposited to the credit of the emergency highway construction
and reconstruction fund established pursuant to the provisions of FORMER
section eighty-nine-a of the state finance law. Beginning on April
first, nineteen hundred ninety, an additional twelve and one-half per
centum of the moneys received by the department pursuant to the
provisions of this section shall be deposited to the credit of the emer-
gency highway reconditioning and preservation fund reserve account
established pursuant to the provisions of paragraph (b) of subdivision
two of FORMER section eighty-nine of the state finance law. Beginning on
S. 8728--A 4
April first, nineteen hundred ninety, an additional twelve and one-half
per centum of the moneys received by the department pursuant to the
provisions of this section shall be deposited to the credit of the emer-
gency highway construction and reconstruction fund reserve account
established pursuant to the provisions of paragraph (b) of subdivision
two of FORMER section eighty-nine-a of the state finance law. Beginning
on April first, nineteen hundred ninety-one, an additional twelve and
one-half per centum of the moneys received by the department pursuant to
the provisions of this section shall be deposited to the credit of the
emergency highway reconditioning and preservation fund reserve account
established pursuant to the provisions of paragraph (b) of subdivision
two of FORMER section eighty-nine of the state finance law. Beginning on
April first, nineteen hundred ninety-one, an additional twelve and one-
half per centum of the moneys received by the department pursuant to the
provisions of this section shall be deposited to the credit of the emer-
gency construction and reconstruction fund reserve account established
pursuant to the provisions of paragraph (b) of subdivision two of FORMER
section eighty-nine-a of the state finance law. Beginning on April
first, two thousand three, all of the moneys received by the department
pursuant to the provisions of this section shall be deposited in the
dedicated fund accounts pursuant to subdivision (d) of section three
hundred one-j of this chapter.
2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY SIXTY-SIX HUNDREDTHS OF A PERCENTAGE
POINT (.0066) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
MOTOR FUEL PER GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE
SUSPENDED ENTIRELY IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
EQUALS OR EXCEEDS THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF
MOTOR FUEL IN THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX
IMPOSED BY THIS SECTION SHALL BE ASSESSED IN INCREASES OF SIXTY-SIX
HUNDREDTHS OF A PERCENTAGE POINT (.0066) FOR EVERY INCREMENT OF FIVE
CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON UNTIL THE AVERAGE
PRICE OF MOTOR FUEL IN THE STATE DECREASES TO TWO DOLLARS AND TWENTY-
FIVE CENTS PER GALLON, AT WHICH TIME THE FULL AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL APPLY TO SALES OF MOTOR FUEL.
§ 4. Subdivision 1 of section 284 of the tax law, as amended by chap-
ter 276 of the laws of 1986, is amended and a new subdivision 3 is added
to read as follows:
1. [There] SUBJECT TO THE PROVISIONS OF SUBDIVISION THREE OF THIS
SECTION, THERE is hereby levied and imposed an excise tax of four cents
per gallon upon motor fuel (a) imported into or caused to be imported
into the state by a distributor for use, distribution, storage or sale
in the state or upon motor fuel which is produced, refined, manufactured
or compounded by a distributor in the state (which acts shall hereinaft-
er in this subdivision be encompassed by the phrase "imported or manu-
factured") or (b) if the tax has not been imposed prior to its sale in
this state, which is sold by a distributor (which act, in conjunction
with the acts described in paragraph (a) of this subdivision, shall
hereinafter in this article be encompassed by the phrase "imported,
manufactured or sold"), except when imported, manufactured or sold under
circumstances which preclude the collection of such tax by reason of the
United States constitution and of laws of the United States enacted
pursuant thereto or when imported or manufactured by an organization
S. 8728--A 5
described in paragraph one or two of subdivision (a) of section eleven
hundred sixteen of this chapter or a hospital included in the organiza-
tions described in paragraph four of such subdivision for its own use or
consumption and except kero-jet fuel when imported or manufactured by an
airline for use in its airplanes. Provided, further, no motor fuel shall
be included in the measure of the tax unless it shall have previously
come to rest within the meaning of federal decisional law interpreting
the United States constitution. All tax for the period for which a
return is required to be filed shall be due on the date limited for the
filing of the return for such period, regardless of whether a return is
filed by such distributor as required by this article or whether the
return which is filed correctly shows the amount of tax due.
3. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY ONE-QUARTER OF A PERCENTAGE POINT
(.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR
FUEL PER GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED
ENTIRELY IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR
EXCEEDS THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN
THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS
SECTION SHALL BE ASSESSED IN INCREASES OF ONE-QUARTER OF A PERCENTAGE
POINT (.0025) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
MOTOR FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF
MOTOR FUEL.
§ 5. Section 284-a of the tax law, as amended by section 3 of part EE
of chapter 63 of the laws of 2000, is amended to read as follows:
§ 284-a. Additional motor fuel tax. 1. In addition to the tax imposed
by section two hundred eighty-four of this [chapter] ARTICLE, a like tax
shall be imposed at the rate of three cents per gallon upon motor fuel
imported, manufactured or sold within this state by a distributor.
Except as otherwise provided in this section, all the provisions of this
article except subdivision two of section two hundred eighty-nine-e of
this article shall apply with respect to the additional tax imposed by
this section to the same extent as if it were imposed by said section
two hundred eighty-four. Beginning on April first, nineteen hundred
ninety-one, four and one-sixth per centum of the moneys received by the
department pursuant to the provisions of this section shall be deposited
to the credit of the emergency highway reconditioning and preservation
fund reserve account established pursuant to the provisions of paragraph
(b) of subdivision two of FORMER section eighty-nine of the state
finance law. Beginning on April first, nineteen hundred ninety-one,
four and one-sixth per centum of the moneys received by the department
pursuant to the provisions of this section shall be deposited to the
credit of the emergency highway construction and reconstruction fund
reserve account established pursuant to the provisions of paragraph (b)
of subdivision two of FORMER section eighty-nine-a of the state finance
law. Beginning on April first, nineteen hundred ninety-two, an addi-
tional eight and one-third per centum of the moneys received by the
department pursuant to the provisions of this section shall be deposited
to the credit of the emergency highway reconditioning and preservation
fund reserve account established pursuant to the provisions of paragraph
(b) of subdivision two of FORMER section eighty-nine of the state
S. 8728--A 6
finance law. Beginning on April first, nineteen hundred ninety-two, an
additional eight and one-third per centum of the moneys received by the
department pursuant to the provisions of this section shall be deposited
to the credit of the emergency highway construction and reconstruction
fund reserve account established pursuant to the provisions of paragraph
(b) of subdivision two of FORMER section eighty-nine-a of the state
finance law. Beginning on April first, two thousand, seventy-five per
centum of the moneys received by the department pursuant to the
provisions of this section shall be deposited in the dedicated fund
accounts pursuant to subdivision (d) of section three hundred one-j of
this chapter. Beginning on April first, two thousand three, all of the
moneys received by the department pursuant to the provisions of this
section shall be deposited in the dedicated fund accounts pursuant to
subdivision (d) of section three hundred one-j of this chapter.
2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY TWO-TENTHS OF A PERCENTAGE POINT (.002)
FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER
GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF
THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR EXCEEDS THREE
DOLLARS PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
FALLS BELOW THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS SECTION
SHALL BE ASSESSED IN INCREASES OF TWO-TENTHS OF A PERCENTAGE POINT
(.002) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR
FUEL PER GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
DECREASES TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME
THE FULL AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF
MOTOR FUEL.
§ 6. Section 284-c of the tax law, as amended by section 4 of part EE
of chapter 63 of the laws of 2000, is amended to read as follows:
§ 284-c. Supplemental motor fuel tax. 1. In addition to the taxes
imposed by sections two hundred eighty-four and two hundred
eighty-four-a of this [chapter] ARTICLE, a like tax shall be imposed at
the rate of one cent per gallon upon motor fuel imported, manufactured
or sold within this state by a distributor. Except for paragraph (b) of
subdivision three of section two hundred eighty-nine-c OF THIS ARTICLE,
all the provisions of this article shall apply with respect to the
supplemental tax imposed by this section to the same extent as if it
were imposed by said section two hundred eighty-four. On and after the
first day of October, nineteen hundred seventy-two, twenty-five per
centum of the monies received by the department pursuant to the
provisions of this section shall be deposited to the credit of the emer-
gency highway reconditioning and preservation fund established pursuant
to the provisions of FORMER section eighty-nine of the state finance
law. Beginning on April first, nineteen hundred eighty-three, twenty-
five per centum of the monies received by the department pursuant to the
provisions of this section shall be deposited to the credit of the emer-
gency highway construction and reconstruction fund established pursuant
to the provisions of FORMER section eighty-nine-a of the state finance
law. Beginning on April first, nineteen hundred ninety, an additional
twelve and one-half per centum of the monies received by the department
pursuant to the provisions of this section shall be deposited to the
credit of the emergency highway reconditioning and preservation fund
reserve account established pursuant to the provisions of paragraph (b)
S. 8728--A 7
of subdivision two of FORMER section eighty-nine of the state finance
law. Beginning on April first, nineteen hundred ninety, an additional
twelve and one-half per centum of the moneys received by the department
pursuant to the provisions of this section shall be deposited to the
credit of the emergency highway construction and reconstruction fund
reserve account established pursuant to the provisions of paragraph (b)
of subdivision two of FORMER section eighty-nine-a of the state finance
law. Beginning on April first, nineteen hundred ninety-one, an addi-
tional twelve and one-half per centum of the moneys received by the
department pursuant to the provisions of this section shall be deposited
to the credit of the emergency highway reconditioning and preservation
fund reserve account established pursuant to the provisions of paragraph
(b) of subdivision two of FORMER section eighty-nine of the state
finance law. Beginning on April first, nineteen hundred ninety-one, an
additional twelve and one-half per centum of the moneys received by the
department pursuant to the provisions of this section shall be deposited
to the credit of the emergency highway construction and reconstruction
fund reserve account established pursuant to the provisions of paragraph
(b) of subdivision two of FORMER section eighty-nine-a of the state
finance law. Beginning on April first, two thousand three, all of the
moneys received by the department pursuant to the provisions of this
section shall be deposited in the dedicated fund accounts pursuant to
subdivision (d) of section three hundred one-j of this chapter.
2. THE FULL AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO
SALES OF MOTOR FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS
PER GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO
DOLLARS AND TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL BE REDUCED BY SIXTY-SIX HUNDREDTHS OF A PERCENTAGE
POINT (.0066) FOR EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF
MOTOR FUEL PER GALLON. THE TAX IMPOSED BY THIS SECTION SHALL BE
SUSPENDED ENTIRELY IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE
EQUALS OR EXCEEDS THREE DOLLARS PER GALLON. IF THE AVERAGE PRICE OF
MOTOR FUEL IN THE STATE FALLS BELOW THREE DOLLARS PER GALLON, THE TAX
IMPOSED BY THIS SECTION SHALL BE ASSESSED IN INCREASES OF SIXTY-SIX
HUNDREDTHS OF A PERCENTAGE POINT (.0066) FOR EVERY INCREMENT OF FIVE
CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON UNTIL THE AVERAGE
PRICE OF MOTOR FUEL IN THE STATE DECREASES TO TWO DOLLARS AND TWENTY-
FIVE CENTS PER GALLON, AT WHICH TIME THE FULL AMOUNT OF TAX IMPOSED BY
THIS SECTION SHALL APPLY TO SALES OF MOTOR FUEL.
§ 7. Subdivision (b) of section 1105 of the tax law is amended by
adding a new paragraph 5 to read as follows:
(5) NOTWITHSTANDING THE PROVISIONS OF OF THIS SUBDIVISION, THE FULL
AMOUNT OF THE TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF MOTOR
FUEL AT PRICES UP TO TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON. IF
THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE EXCEEDS TWO DOLLARS AND
TWENTY-FIVE CENTS PER GALLON, THE AMOUNT OF TAX IMPOSED BY THIS SECTION
SHALL BE REDUCED BY ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR EVERY
INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON.
THE TAX IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF THE AVER-
AGE PRICE OF MOTOR FUEL IN THE STATE EQUALS OR EXCEEDS THREE DOLLARS PER
GALLON. IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE FALLS BELOW
THREE DOLLARS PER GALLON, THE TAX IMPOSED BY THIS SECTION SHALL BE
ASSESSED IN INCREASES OF ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR
EVERY INCREMENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER
GALLON UNTIL THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE DECREASES TO
TWO DOLLARS AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME THE FULL
S. 8728--A 8
AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL APPLY TO SALES OF MOTOR
FUEL.
§ 8. Section 301-a of the tax law is amended by adding a new subdivi-
sion (n) to read as follows:
(N) NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, THE FULL
AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL ONLY APPLY WHEN THE AVERAGE
PRICE OF MOTOR FUEL IN THE STATE IS TWO DOLLARS AND TWENTY-FIVE CENTS OR
LESS. IF THE AVERAGE PRICE OF MOTOR FUEL EXCEEDS TWO DOLLARS AND TWEN-
TY-FIVE CENTS, THE AMOUNT OF TAX IMPOSED BY THIS SECTION SHALL BE
REDUCED BY ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR EVERY INCREMENT
OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON. THE TAX
IMPOSED BY THIS SECTION SHALL BE SUSPENDED ENTIRELY IF THE AVERAGE PRICE
OF MOTOR FUEL IN THE STATE EQUALS OR EXCEEDS THREE DOLLARS PER GALLON.
IF THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE FALLS BELOW THREE
DOLLARS PER GALLON, THE TAX IMPOSED BY THIS SECTION SHALL BE ASSESSED IN
INCREASES OF ONE-QUARTER OF A PERCENTAGE POINT (.0025) FOR EVERY INCRE-
MENT OF FIVE CENTS INCREASE IN THE COST OF MOTOR FUEL PER GALLON UNTIL
THE AVERAGE PRICE OF MOTOR FUEL IN THE STATE DECREASES TO TWO DOLLARS
AND TWENTY-FIVE CENTS PER GALLON, AT WHICH TIME THE FULL AMOUNT OF TAX
IMPOSED BY THIS ARTICLE SHALL APPLY.
§ 9. Section 1201 of the tax law is amended by adding a new subdivi-
sion (n) to read as follows:
(N) ANY CITY IN THIS STATE HAVING A POPULATION OF ONE MILLION OR MORE,
ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, MAY IMPOSE LIMITATIONS ON
TAXES ON DIESEL MOTOR FUEL AND MOTOR FUEL IN ACCORDANCE WITH THE
PROVISIONS OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED FIVE OF THIS
CHAPTER.
§ 10. Section 1202 of the tax law is amended by adding a new subdivi-
sion (h) to read as follows:
(H) ANY COUNTY IN THIS STATE, EXCEPT A COUNTY WHOLLY WITHIN A CITY,
ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, MAY IMPOSE LIMITATIONS ON
TAXES ON DIESEL MOTOR FUEL AND MOTOR FUEL IN ACCORDANCE WITH THE
PROVISIONS OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED FIVE OF THIS
CHAPTER.
§ 11. The tax law is amended by adding a section 45 to read as
follows:
§ 45. EVERY PERSON ENGAGED IN THE RETAIL SALE OF MOTOR FUEL OR DIESEL
MOTOR FUEL OR A DISTRIBUTOR OF SUCH FUELS, SHALL COMPLY WITH THE
PROVISIONS OF SECTIONS TWO HUNDRED EIGHTY-TWO-A, TWO HUNDRED
EIGHTY-TWO-B, TWO HUNDRED EIGHTY-TWO-C, TWO HUNDRED EIGHTY-FOUR, TWO
HUNDRED EIGHTY-FOUR-A, TWO HUNDRED EIGHTY-FOUR-C, ELEVEN HUNDRED FIVE,
TWELVE HUNDRED ONE, TWELVE HUNDRED TWO, AND THREE HUNDRED ONE-A OF THIS
CHAPTER 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 OR IMPOSED ON RETAIL CUSTOMERS RESULTING FROM THE SUSPENSION
OF TAXES ON MOTOR FUEL AND DIESEL MOTOR FUEL UNDER THOSE SECTIONS.
§ 12. This act shall take effect on the ninetieth day after it shall
have become a law and shall apply to sales of diesel motor fuel and
motor fuel occurring on and after such date.