Eliminates state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizes localities to eliminate such taxes

2 Co-sponsors

• George D. Maziarz
• Michael H. Ranzenhofer

BILL NUMBER:S749

Title of bill

An act to amend the tax law, in relation to eliminating state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizing localities to eliminate such taxes at the local level

Purpose

This bill would eliminate state sales and compensating use taxes on motor fuels and diesel motor fuels and authorizes localities to eliminate such tax.

Summary of provisions

Subdivision (a) of section 1115 of the Tax Law is amended by adding a new paragraph (44) titled Motor Fuel and Diesel Motor Fuel.

Subdivision (b) of section 1107 of the Tax Law is amended by adding a new clause 12.

Subparagraph (ii) of and paragraph 1 of subdivision (a) of section 1210 is amended to allow local governments the option of eliminating or altering the local sales and compensating use tax on motor fuel.

Section 1210 is amended by adding a new subdivision (p) to eliminate the state sales and compensating use tax on motor fuels.

Justification

The price of gasoline has risen dramatically. This excessive price growth has had a devastating effect on the budgets of families across New York. This high price of gasoline also threatens to damage the economic climate of New York State as the cost of transportation, tourism and agricultural production are forced to deal with exorbitant costs. Ultimately these costs will be passed on to the consumer thus providing an additional drain on family budgets.

Faced with such a situation it is incumbent on the New York State Legislature to look for remedies. Currently, federal, state and local taxes on the production, distribution, and sale of motor fuel account for approximately 54% of the price of gasoline at the pump. This tax burden unnecessarily inflates the price of gasoline. It is therefore reasonable and responsible to lower these taxes as a means of keeping the cost of gasoline to a minimum. Also, it is known that tax cuts spur economic growth. Therefore this legislation can not only ease financial burdens faced by our families, but also help to create the jobs New York needs to grow.

Legislative history

2009-2010: S.3419-A Referred to Energy & Telecommunications 2007-2008: S.395 Referred to Energy & Telecommunications 2006: S.6495 Referred to Energy & Telecommunications

2005: A.5728 Referred to Ways & Means 2003-2004: A.4680 Held in Ways & Means 2001-2002: A.7479 Held in Ways & Means

Fiscal implications

Unknown.

Effective date

This act shall take effect on the first day of the sales tax quarterly period next commencing at least 90 days after this act shall have become law in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.