What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Held for consideration in ways and means
- Referred to ways and means
- Print number 8512a
- Amend and recommit to ways and means
- Referred to ways and means
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A8512A
Title of bill
An act to amend the tax law, in relation to setting local sales tax at a rate of four percent per gallon upon the sale of a gallon of diesel motor fuel
Purpose
The current tax system provides a competitive disadvantage to New York trucking companies who are paying higher fuel taxes than their out-of-state competition when hauling freight in New York. Out-of-state trucking companies are able to purchase their fuel outside New York and satisfy their highway use tax obligations at a current rate of 36.65 cents per gallon. During the height of high gas and diesel prices in the summer of 2006, this rate was approximately 14 cents per gallon less than the tax rates charged on most of the diesel fuel purchases at the pump in New York. In addition to hurting New York truck stops and New York based trucking companies, it also costs the state $24 million a year in under collected revenue when prices are high.
Read the full memo (651 words)
Summary of provisions
Under Section 523 of the Tax Law, all local sales taxes for diesel motor fuel will be replaced with a statewide local sales tax to be indexed yearly at 4%. This uniform tax will then be added to the other existing state taxes. This statewide tax rate on diesel fuel will be used as the International Fuel Tax Agreement (IFTA) tax rate for out of state trucks. Creating a uniform tax burden for all trucking companies traveling in New York State and rectifying the under collection of taxes from out of state trucking companies
Justification
Diesel fuel is currently 10 percent of the total fuel consumed on the road in New York State and it is primarily used to fuel large trucks. Currently, the State tax rate on diesel fuel exceeds the fuel use tax rate established by the International Fuel Tax Agreement (IFTA) which has created an opportunity for out-of-state trucking firms to legally evade the full tax paid by trucking firms that purchase diesel fuel in New York State. The State is losing money because of this disparity between the IFTA fuel use tax rate and local tax rates due to trucking companies opting to purchase cheaper fuel outside of New York State. In 2005, approximately 167 million gallons of diesel fuel were purchased outside of New York State but burned by trucks traveling through New York. Because they were bought out of state they were taxed at a New York IFTA rate that was 14 cents per gallon less than the taxes charged on fuel actually bought in New York. This represented a loss of $24 million dollars to the State. This unification of the motor fuel tax presents New York State with an opportunity to create a fair and equitable tax code for all consumers involved in interstate trucking.
By removing the local sales tax on diesel motor fuel and imposing a statewide 4% indexed local tax on diesel motor fuel you will fix these imbalances.
The tax rate will be determined annually by the Department of Tax and Finance in which this rate will be used by IFTA to determine the tax liability of out of state carriers when they travel through New York. This tax rate will be the same for all trucks operating in New York. New York retailers of diesel fuel will have new customers and the tax incentive to avoid making diesel purchases in New York having been
eliminated. A uniform statewide tax on diesel motor fuel will level the playing field for New York based businesses and eliminate the under collection of motor fuel taxes on out of state trucking.
Legislative history
New Bill.
Fiscal implications
An estimated $24 Million dollars in extra revenue from out of state trucking companies.
Effective date
This Act shall take effect immediately and shall apply to the next taxable year and all subsequent taxable years.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.