S T A T E O F N E W Y O R K
________________________________________________________________________
8483
I N S E N A T E
March 4, 2022
___________
Introduced by Sens. AKSHAR, OBERACKER -- read twice and ordered printed,
and when printed to be committed to the Committee on Budget and Reven-
ue
AN ACT to amend the tax law, the general business law and the state
finance law, in relation to providing for the deposit into the dedi-
cated highway and bridge trust fund of a portion of the sales tax
revenue from the sale of motor fuel and establishing a temporary fuel
tax holiday; and to repeal certain provisions of the state finance law
relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1148 of the tax law, as amended by section 6-a of
part G of chapter 59 of the laws of 2019, is amended to read as follows:
§ 1148. Deposit and disposition of revenue. (a) All taxes, interest
and penalties collected or received by the commissioner under this arti-
cle shall be deposited and disposed of pursuant to the provisions of
section one hundred seventy-one-a of this chapter; provided however, the
comptroller shall on or before the twelfth day of each month, pay all
such taxes, interest and penalties collected under this article and
remaining to the comptroller's credit in such banks, banking houses or
trust companies at the close of business on the last day of the preced-
ing month, into the general fund of the state treasury.
(A-1) PROVIDED HOWEVER, BEFORE THE FUNDS MAY BE DISTRIBUTED PURSUANT
TO SUBDIVISION (A) OF THIS SECTION, ONE CENT OF THE TAXES COLLECTED OR
RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE FOR THE RETAIL SALE OF
EACH GALLON OF MOTOR FUEL SHALL BE DEPOSITED IN THE SPECIAL OBLIGATION
RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST
FUND, ESTABLISHED BY SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW.
(b) Provided however, [before] AFTER the funds [may be] ARE distrib-
uted pursuant to subdivision [(a)] (A-1) of this section BUT BEFORE SUCH
FUNDS ARE DISTRIBUTED PURSUANT TO SUBDIVISION (A) OF THIS SECTION, such
funds shall be distributed as otherwise provided in sections
ninety-two-d, ninety-two-h, and ninety-two-r of the state finance law
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05248-04-2
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and sections eleven hundred two, eleven hundred four and eleven hundred
nine of this article.
(c) Provided however, after funds are distributed pursuant to [subdi-
vision] SUBDIVISIONS (A-1) AND (b) of this section but before such funds
are distributed pursuant to subdivision (a) of this section, funds shall
be deposited by the comptroller into the New York central business
district trust fund established pursuant to section ninety-nine-ff of
the state finance law in accordance with the following schedule: (1) in
state fiscal year two thousand nineteen - two thousand twenty, one
hundred twelve million five hundred thousand dollars; (2) in state
fiscal year two thousand twenty - two thousand twenty-one, one hundred
fifty million dollars; and (3) in state fiscal year two thousand twen-
ty-one - two thousand twenty-two and every succeeding state fiscal year,
an amount equal to one hundred one percent of the amount deposited in
the immediately preceding state fiscal year. The funds deposited into
the New York central business district trust fund shall be deposited
monthly in equal installments.
§ 2. Subdivision (a-1) of section 1148 of the tax law, as added by
section one of this act, is amended to read as follows:
(a-1) Provided however, before the funds may be distributed pursuant
to subdivision (a) of this section, [one cent] TWO CENTS of the taxes
collected or received by the commissioner under this article for the
retail sale of each gallon of motor fuel shall be deposited in the
special obligation reserve and payment account of the dedicated highway
and bridge trust fund, established by section eighty-nine-b of the state
finance law.
§ 3. Subdivision (a-1) of section 1148 of the tax law, as amended by
section two of this act, is amended to read as follows:
(a-1) Provided however, before the funds may be distributed pursuant
to subdivision (a) of this section, [two] THREE cents of the taxes
collected or received by the commissioner under this article for the
retail sale of each gallon of motor fuel shall be deposited in the
special obligation reserve and payment account of the dedicated highway
and bridge trust fund, established by section eighty-nine-b of the state
finance law.
§ 4. Subdivision (a-1) of section 1148 of the tax law, as amended by
section three of this act, is amended to read as follows:
(a-1) Provided however, before the funds may be distributed pursuant
to subdivision (a) of this section, [three] FOUR cents of the taxes
collected or received by the commissioner under this article for the
retail sale of each gallon of motor fuel shall be deposited in the
special obligation reserve and payment account of the dedicated highway
and bridge trust fund, established by section eighty-nine-b of the state
finance law.
§ 5. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 4 of chapter 368 of the laws of 2019,
is amended to read as follows:
(a) The special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions of sections two hundred
five, two hundred eighty-nine-e, three hundred one-j, five hundred
fifteen, ELEVEN HUNDRED FORTY-EIGHT and eleven hundred sixty-seven of
the tax law, section four hundred one and article [twelve-d] TWELVE-D of
the vehicle and traffic law, and section thirty-one of chapter fifty-six
of the laws of nineteen hundred ninety-three, (ii) all fees, fines or
penalties collected by the commissioner of transportation and the
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commissioner of motor vehicles pursuant to section fifty-two, section
three hundred twenty-six, section eighty-eight of the highway law,
subdivision fifteen of section three hundred eighty-five of the vehicle
and traffic law, section two of part U1 of chapter sixty-two of the laws
of two thousand three, subdivision (d) of section three hundred four-a,
paragraph one of subdivision (a) and subdivision (d) of section three
hundred five, subdivision six-a of section four hundred fifteen and
subdivision (g) of section twenty-one hundred twenty-five of the vehicle
and traffic law, section fifteen of this chapter, excepting moneys
deposited with the state on account of betterments performed pursuant to
subdivision twenty-seven or subdivision thirty-five of section ten of
the highway law, and section one hundred forty-five of the transporta-
tion law, (iii) any moneys collected by the department of transportation
for services provided pursuant to agreements entered into in accordance
with section ninety-nine-r of the general municipal law, and (iv) any
other moneys collected therefor or credited or transferred thereto from
any other fund, account or source.
§ 6. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 5 of chapter 368 of the laws of 2019,
is amended to read as follows:
(a) The special obligation reserve and payment account shall consist
(i) of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions of sections two hundred
eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
FORTY-EIGHT and eleven hundred sixty-seven of the tax law, section four
hundred one and article [twelve-d] TWELVE-D of the vehicle and traffic
law, and section thirty-one of chapter fifty-six of the laws of nineteen
hundred ninety-three, (ii) all fees, fines or penalties collected by the
commissioner of transportation and the commissioner of motor vehicles
pursuant to section fifty-two, section three hundred twenty-six, section
eighty-eight of the highway law, subdivision fifteen of section three
hundred eighty-five of the vehicle and traffic law, section fifteen of
this chapter, excepting moneys deposited with the state on account of
betterments performed pursuant to subdivision twenty-seven or subdivi-
sion thirty-five of section ten of the highway law, and section one
hundred forty-five of the transportation law, (iii) any moneys collected
by the department of transportation for services provided pursuant to
agreements entered into in accordance with section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected therefor or
credited or transferred thereto from any other fund, account or source.
§ 7. Paragraph (a) of subdivision 3 of section 89-b of the state
finance law, as amended by section 8 of part UU of chapter 59 of the
laws of 2018, is REPEALED.
§ 8. 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 FOURTEEN DAYS AFTER THE EFFECTIVE
DATE OF THIS SECTION THROUGH SEPTEMBER FIRST, TWO THOUSAND TWENTY-TWO.
(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.
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(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
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.
§ 9. Section 88-a of the state finance law is amended by adding a new
subdivision 8 to read as follows:
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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.
§ 10. 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,
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.
§ 11. 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.
§ 12. 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.
§ 13. 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
S. 8483 6
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.
§ 14. 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 fourteen days after
the effective date of this section through September first, two thousand
twenty-two, by local law, ordinance or resolution, if such 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 subdivi-
sion (a) of section forty-seven of the tax law.
§ 15. The commissioner of taxation and finance shall (a) on an emer-
gency 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.
§ 16. This act shall take effect immediately; provided, however, that:
(a) section one of this act shall take effect April 1, 2022;
(b) section two of this act shall take effect April 1, 2023;
(c) section three of this act shall take effect April 1, 2024;
(d) section four of this act shall take effect April 1, 2025; and
(e) the amendments to paragraph (a) of subdivision 3 of section 89-b
of the state finance law, made by section five of this act, shall be
subject to the expiration and reversion of such paragraph pursuant to
section 13 of part U1 of chapter 62 of the laws of 2003, as amended,
when upon such date the provisions of section six of this act shall take
effect.
