§ 301-j. Supplemental petroleum business tax and supplemental tax on
aviation gasoline component of aviation fuel business tax. (a)
Imposition of tax. (1) In addition to the taxes imposed by sections
three hundred one-a and three hundred one-e of this article, there is
hereby imposed upon every petroleum business subject to tax imposed
under section three hundred one-a of this article and every aviation
fuel business subject to the aviation gasoline component of the tax
imposed under section three hundred one-e of this article, a
supplemental monthly tax for each or any part of a taxable month at a
rate of six and eight-tenths cents per gallon with respect to the
products included in each component of the taxes imposed by such section
three hundred one-a and the aviation gasoline component of the tax
imposed by such section three hundred one-e of this article.

(2) Provided, however, "commercial gallonage," as such term is defined
in subdivision (k) of section three hundred of this article, shall be
exempt from the measure of the tax imposed under this section.

(3) Provided, further, "railroad diesel," as such term is defined in
subdivision (l) of section three hundred of this article, shall be
exempt from the measure of the tax imposed under this section.

(4) Provided, further, a separate per gallon rate shall apply with
respect to highway diesel motor fuel. Such rate shall be determined by
taking the adjusted rate per gallon of tax imposed under paragraph one
of this subdivision as adjusted in accordance with paragraph five of
this subdivision and subtracting therefrom one and three-quarters cents.
Commencing January first, two thousand twelve, and each January
thereafter, the per gallon rate applicable to highway diesel motor fuel
shall be the adjusted rate under paragraph one of this subdivision as
adjusted in accordance with paragraph five of this subdivision which
commences on such date minus one and three-quarters cents. The resulting
rate under this paragraph shall be expressed in hundredths of a cent.

(5) Except as herein provided, the tax imposed under this section
shall be calculated in the same respective manner as the taxes imposed
by section three hundred one-a and section three hundred one-e of this
article. Except for section three hundred one-d and except as otherwise
provided in this section, all the provisions of this article applicable
to the taxes imposed by sections three hundred one-a and three hundred
one-e of this article, shall apply with respect to the supplemental tax
imposed by this section to the same extent as if it were respectively
imposed by such sections.

(b) Credit, refund or reimbursement with respect to aviation gasoline.
(i) A credit or refund of the tax paid under this section relative to
the tax imposed on aviation gasoline under section three hundred one-e
of this article shall be available with respect to aviation gasoline
which qualifies for the partial credit or refund under paragraph two of
subdivision (b) of section three hundred one-e of this article.

(ii) A reimbursement of the tax paid under this section relative to
the tax imposed on aviation gasoline under section three hundred one-e
of this article shall be available with respect to aviation gasoline
which qualifies for the partial reimbursement under paragraph three of
subdivision (d) of section three hundred one-e of this article and for
which no credit or refund under subparagraph (i) of this paragraph was
provided.

(iii) The commissioner shall require such documentary proof to qualify
for any credit, refund or reimbursement of tax provided by this
paragraph as the commissioner deems appropriate.

(c) Rate adjustment. The rate of the supplemental tax shall be
adjusted at the same time as the rates of the components of the taxes
imposed by sections three hundred one-a and three hundred one-e of this
article, and the method of making adjustments to the rate of the
supplemental tax shall be the same as the method used for such rates.

(d) Deposit and disposition of revenue. All taxes, and any interest
and penalties relating thereto, collected or received with respect to
the supplemental petroleum and aviation fuel business tax imposed by
this section up to and including March thirty-first, nineteen hundred
ninety-three shall be deposited and disposed of pursuant to the
provisions of section one hundred seventy-one-a of this chapter. Except
as otherwise provided, on and after April first, nineteen hundred
ninety-three, all taxes, and any interest and penalties relating
thereto, collected or received in any month with respect to such
supplemental petroleum and aviation fuel business tax imposed by this
section, together with any other moneys specified in this chapter to be
deposited under this subdivision, shall be deposited, on or before the
fifteenth day of each succeeding month, proportionately into the
following dedicated fund accounts without priority; sixty-three percent
in the dedicated highway and bridge trust fund established pursuant to
section eighty-nine-b of the state finance law, thirty-four percent in
the dedicated mass transportation trust fund established pursuant to
section eighty-nine-c of the state finance law to be distributed as
follows: eighty-five percent of such amount shall be allocated to the
New York city transit authority and its subsidiaries and the Staten
Island rapid transit operating authority and fifteen percent of such
amount shall be allocated to the Long Island Rail Road Company and metro
north commuter railroad company in accordance with the procedures for
payment and distribution specified in section one thousand two hundred
seventy-c of the public authorities law, for payment, subject to
appropriation, to the metropolitan transportation authority dedicated
tax fund established pursuant to section twelve hundred seventy-c of the
public authorities law, and three percent in such dedicated mass
transportation trust fund to be distributed, subject to appropriation,
for purposes authorized by section eighty-nine-c of the state finance
law, to entities other than the mass transit operating agencies which
receive money from the metropolitan transportation authority dedicated
tax fund. Notwithstanding any general or special law to the contrary,
other than a law which makes specific reference to this sentence of this
section, so long as such metropolitan transportation authority dedicated
tax fund shall exist, any appropriation from the dedicated mass
transportation trust fund to the metropolitan transportation authority,
its affiliates or its subsidiaries shall be deemed to be an
appropriation to the metropolitan transportation authority and the total
amount paid pursuant to such appropriation or appropriations or section
thirty-one of chapter fifty-six of the laws of nineteen hundred
ninety-three including the second clause of the first sentence of
subdivisions a and b thereof, shall be deposited to such metropolitan
transportation authority dedicated tax fund and distributed in
accordance with the provisions of section twelve hundred seventy-c of
the public authorities law.

Prior to making deposits as provided in this subdivision, the
comptroller shall retain such amount as the commissioner may determine
to be necessary, subject to the approval of the director of the budget,
for reasonable costs of the department in administering and collecting
the taxes deposited pursuant to this subdivision and for refunds and
reimbursements with respect to such taxes, out of which the comptroller
shall pay any refunds or reimbursements of such taxes to which taxpayers
shall be entitled. Provided, further, however, that, prior to such
deposit, from the amounts so collected or received during the period
commencing on January first, nineteen hundred ninety-four and ending on
March thirty-first, nineteen hundred ninety-four, an amount equal to the
portion of the taxes, interest and penalties so received or collected
resulting from the amendments made by sections forty-two, forty-three
and forty-four of chapter fifty-seven of the laws of nineteen hundred
ninety-three shall be deposited and disposed of pursuant to the
provisions of subdivision one of section one hundred seventy-one-a of
this chapter.