Establishes a motor fuel and Diesel motor fuel holiday tax credit to be taken against personal income taxes for certain summer holiday weekends

Summary of provisions

Section One - amends section 606 tax law by adding a new subsection (vv). (vv) Motor fuel holiday tax credit. (1) Residents. For the tax year beginning on January 1, 2013 and ending before January 1, 2014, a tax payer shall be allowed a credit, to be computed as provided in paragraph four of this subsection, against the taxes imposed by this article for taxes paid upon motor fuel and diesel motor fuel tax holiday; provided, that such credit shall not exceed twenty-five dollars. If the amount of credit allowable under this subsection for any tax year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.

Section One - also states (2) Nonresidents. In the case of a nonresident taxpayer or a part-year resident taxpayer, the credit determined under this subsection shall be limited to the amount determined by multiplying the amount of such credit by the New York source fraction as set forth in paragraph three of subsection (e) of section six hundred one of this article. The credit as so limited shall be applied as provided in paragraph one of this subsection.

Section One - defines "Motor fuel tax holiday" shall mean (i) the period commencing on the Friday immediately preceding the fourth of July and ending on the first Monday after the fourth of July; and

(ii) the period commencing on the Friday immediately preceding Labor day and ending on the first Tuesday following Labor day. "Diesel motor fuel" and "motor fuel" shall have the same meanings, and "filling station" shall have the same meaning as section 282 of this chapter.

Section One - states that the credit computation for the purchase of motor fuel, the credit shall equal the product of 33 cents multiplied by the number of gallon of gasoline purchased in this state during a motor fuel tax holiday, provided that such claim is supported by receipts listing the number of gallons purchased and the location of the filling station where such motor fuel was purchased. For the purchase of diesel motor fuel, the credit shall equal the product of 32 cents multiplied by the number of gallons of diesel motor fuel purchased in this state during a motor fuel tax holiday, provided that such claim is supported by receipts listing the number of gallons purchased and the location of the filling station where such diesel motor fuel was purchased. Section Two - this act shall take effect immediately.

Justification

Whether brought on by market tensions or mere speculation, New Yorkers are being negatively impacted by rising gas

prices. Projections estimate gas prices could reach five dollars a gallon by summer, perhaps even higher.

This legislation would suspend the three separate state taxes on fuel the 8-cent excise tax, the 8-cent sales tax and the 17-cent Petroleum Business Tax - during the busy four-day Independence Day and Labor Day holiday weekends, providing consumers an immediate savings of 33-cents per gallon of gasoline - about $5 to S6 a fill-up.

While other countries are getting rich at our expense, Our blue collar families and small business owners are being mugged. Governments should not smile and watch their government coffers grow as taxpayer misery skyrockets with ever increasing gas prices.

New York prides itself on the colorful diversity of vacation spots throughout the state. Whether it is camping in the Adirondacks, going to the Saratoga Race Track, hitting the beaches in Coney Island, seeing a show on Broadway or touring the grape growing regions of central and western New York, as a state we have so much to offer.

As we come closer to the busy summer travel season, it is often on the Independence Day and Labor Day four-day weekends that New Yorkers have the opportunity to take a vacation and spend time traveling. This legislation helps people across the State of New York enjoy their time off with families, while giving our local economy a boost.

Legislative history

06/13/12 Amend and recommit to finance

Fiscal implications

Approximately $60 million to the state.

Effective date

Immediately.