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:S2194A

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

Section 1 amends subdivision (a) of section 1115 of the Tax Law by adding a new paragraph (44) titled Motor Fuel and Diesel Motor Fuel.

Section 2 amends subdivision (b) of section 1107 of the Tax Law by adding a new clause 12.

Section 3 amends subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 to allow local governments the option of eliminating or altering the local sales and compensating use tax on motor fuel.

Section 4 amends subdivision (d) of section 1210 of the Tax Law to allow for any exemption or repeal of such exemption to go into effect immediately.

Section 5 amends section 1210 of the Tax Law by adding a new subdivision (q) to eliminate the state sales and compensating use tax on motor fuels.

Section 6 authorizes the Commissioner of taxation and finance to implement the provisions of this act with respect to the elimination of the imposition of sales tax, additional taxes, and supplemental taxes on diesel motor fuel and motor fuel and all other taxes so addressed by this act.

Section 7 provides that this act shall take effect on the first day of the sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least 90 days after 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.

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

2011,2012: S.749 Referred to Energy and Telecommunications 2009,2010: S.3419A Referred to Energy and Telecommunications 2007,2008: S.395 Referred to Energy and Telecommunications 2006: S.6495 Referred to Energy and Telecommunications 2005: A.5728 Referred to Ways and Means 2003,2004: A.4680 Held in Ways and Means 2001,2002: A.7479 Held in Ways and Means

Fiscal implications

Undetermined.

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 1206 and 1217 of the tax law.