BILL NUMBER: S8947

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend part RR of chapter 59 of the laws of 2022 amending the
tax law relating to suspending the excise tax, prepaid sales tax and
state sales taxes on motor fuel and Diesel motor fuel, and authorizing
localities to elect a cents-per-gallon rate of tax on such fuels based
on four dollars, in relation to providing special requirements for
notice and mailing of local enactments electing a cents-per-gallon rate
of sales and use tax and for the effective date of the repeal thereof

 
PURPOSE:

Extend certification period for local counties to elect to suspend
certain taxes on motor fuel and diesel motor fuel and provide an expira-
tion and repeal of such election.

 
SUMMARY OF PROVISIONS:

Paragraph 1, allows a county who opts-in to suspend the excise tax,
              

prepaid sales tax and state sales taxes on motor fuel and Diesel motor
fuel to submit a certified copy of a local law, ordinance or resolution
making the election authorized by paragraph (4) of subdivision (m) of
section 1111 of the tax law that is to take effect on June 1, 2022 by
certified or registered mail to the Albany office of the Commissioner of
Taxation and Finance on or before May 16, 2022.

Paragraph 2, advises, such election shall expire and be deemed repealed
on January 1, 2023.

Paragraph 3, advises, the Commissioner of Taxation and Finance to accept
and give effect to an otherwise legally sufficient local law, ordinance
or resolution making the election provided for a repeal date of January
1, 2023 and that was properly mailed according to the provisions of
subdivision (d) of section 1210 of the tax law prior to the effective
date of that act to become a law if the locality notifies such commis-
sioner or his or her designee in writing no later than May 16, 2022,
that it intends such local law, ordinance or resolution to take effect
and to be repealed as provided therein.

 
EXISTING LAW:

Chapter 59 of the, laws of 2022 amends the tax law, in relation to
suspending the excise tax, prepaid sales tax and state sales taxes on
motor fuel and Diesel motor fuel, and authorizes localities to elect a
cents-per-gallon rate of tax on such fuels based on four dollars.

 
JUSTIFICATION:

In an effort to provide tax relief to New York families with rising fuel
costs, a suspension of certain taxes pertaining to motor fuel and Diesel
motor fuel, was enacted in Part RR of Chapter 59 of the laws of 2022
from June 1, 2022 until December 31, 2022.  This law authorizes locali-
ties to elect a cents-per-gallon rate of tax on such fuels based on four
dollars, in relation to providing special requirements for notice and
mailing of local enactments electing a cents-per-gallon rate of sales
and use tax.
However, according to the current tax law, in order for local counties
to opt-in they must make their election to cap the tax at $2.00, $3.00,
or $4.00 and send a certification of such election to the Commissioner
of Taxation and Finance by May 2, 2022, to take effect on June 1, 2022.
Most counties are unable to meet this deadline due to a number of
reasons including the mailing requirement and process as designated by
Tax and Finance. As such, the current law is being amended to extend the
certification time period until May 16, 2022, thereby giving each local-
ity enough time to respond should they choose to opt-in and suspend
certain taxes pertaining to motor fuel and Diesel motor fuel on June 1,
2022.

In addition, there is a technical fix to the law, in which Tax and
Finance has added that such election shall expire and be deemed repealed
on January 1, 2023.

 
LEGISLATIVE HISTORY:

Part RR, Chapter 59 of the laws of 2022

 
BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.