NY State Senate Bill 2023-S4799

Senate Bill S4799

2023-2024 Legislative Session

Relates to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Feb 14, 2023	referred to budget and revenue

2023-S4799 (ACTIVE) - Details

See Assembly Version of this Bill:: A2425
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §1111, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A7411
2021-2022: S4593, A6776

2023-S4799 (ACTIVE) - Summary

Computes sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon and requires prepayment.

2023-S4799 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4799

SPONSOR: PALUMBO
 
TITLE OF BILL:

An act to amend the tax law, in relation to computing sales and compen-
sating use tax on retail sales of motor fuel and diesel motor fuel at a
rate of cents per gallon

 
PURPOSE:

Computing sales and compensating use tax on retail sales of motor fuel
and diesel motor fuels at a rate of cents per gallon will help prevent
potential revenue loss.

 
SUMMARY OF PROVISIONS:

Section 1 amends the tax law by adding a new paragraph (8) to establish
the quarterly computation of motor fuel and diesel motor fuel by the
commissioner, a rate of cents per gallon rounded to the nearest cent and
multiplied by the cost of the fuel.

Section 2 amends the tax law by adding a new subparagraph (iv) which
establishes that the sales and compensating use taxes on motor fuel and
diesel motor fuel in New York State shall be prepaid on each gallon of
fuel.

Section 2 provides the effective date.

 
JUSTIFICATION:

Currently, in New York State, fuel tax is collected in a complicated
two-part system. First, retail locations (gas stations) must prepay the
New York State specific tax upon delivery of their product.  Distribu-
tors are than required to collect and deliver that tax to New York
State. Second, retail locations are then required to collect a county
sales tax which is calculated in real-time instead of prepaid as the
product is sold. This complicated system of tax collection has unfortu-
nately left substantial room for tax evasion. Less reputable retailers
have been found under reporting sales allowing them to pay less in coun-
ty tax. The auditing process often takes such a substantial amount of
time that when discrepancies are discovered, the gas station in question
has often either shut down or changed legal names leaving New York State
and its counties with enormous lost revenue

 
LEGISLATIVE HISTORY:

2022 S.4593A.6776; 2020 A.7411; 2016 A.7923; 2014 A.9839.

 
FISCAL IMPLICATIONS:

Increased tax revenue for local governments.

 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales quarterly period.

2023-S4799 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4799
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2023
                                ___________
 
 Introduced  by  Sen. PALUMBO -- 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, in relation to computing sales and  compen-
   sating  use tax on retail sales of motor fuel and diesel motor fuel at
   a rate of cents per gallon

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision (m) of section 1111 of the tax law is amended
 by adding a new paragraph 8 to read as follows:
   (8) THE SALES AND COMPENSATING USE TAXES IMPOSED BY SUBPART B OF  PART
 ONE  OF ARTICLE TWENTY-NINE OF THIS CHAPTER IN REGARD TO RETAIL SALES OF
 MOTOR FUEL AND DIESEL MOTOR FUEL SHALL BE COMPUTED, AS DETERMINED  QUAR-
 TERLY BY THE COMMISSIONER, AT A RATE OF CENTS PER GALLON, ROUNDED TO THE
 NEAREST CENT, MULTIPLIED BY THE COST OF THE FUEL.
   §  2. Paragraph 2 of subdivision (e) of section 1111 of the tax law is
 amended by adding a new subparagraph (iv) to read as follows:
   (IV) WHERE MOTOR FUEL IS IMPORTED, MANUFACTURED OR SOLD IN, OR  DIESEL
 MOTOR FUEL IS SOLD OR USED IN THIS STATE, THE SALES AND COMPENSATING USE
 TAXES  IMPOSED  BY  SUBPART B OF PART ONE OF ARTICLE TWENTY-NINE OF THIS
 CHAPTER AS COMPUTED PURSUANT TO SUBDIVISION (M) OF THIS SECTION SHALL BE
 PREPAID PURSUANT TO SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE  ON  EACH
 GALLON OF FUEL.
   §  3. This act shall take effect on the first day of a sales tax quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law, next commencing at least ninety days after the date this act  shall
 have  become  a  law  and  shall apply in accordance with the applicable
 transitional provisions of sections 1106 and 1217 of the tax law.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07134-01-3

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