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Sponsors
2 Co-sponsors
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Amends the tax law to increase the prepaid state tax amount collected on motor fuel
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6602 REVISED 2/12/14
Title of bill
An act to amend the tax law, in relation to increasing the amount of tax required to be prepaid on motor fuel
Purpose or general idea of bill
Amends the tax law to increase the prepaid sales tax amount collected on motor fuel.
Summary of specific provisions
Section 1 amends paragraph 2 of subdivision (e) of section 1111 of the tax law to increase the prepaid sales tax amount from 14 3/4 cents to 18 cents for the Metropolitan Commuter Transportation region and 14 cents to 16 cents for the rest of the state.
Justification
This bill does not increase the sales tax on motor fuel. It protects against county governments losing motor fuel sales tax revenue due to fraud by increasing the prepaid portion of these taxes.
By increasing the prepaid sales tax amount, this legislation will ensure counties collect more sales tax revenue up front, thereby protecting them from fraudulent retailers who do not currently pay the appropriate amount in local sales tax per gallon. As a result, it is anticipated that this legislation will increase sales tax revenue to county governments.
Currently, motor fuel distributors are required to prepay sales tax (14 3/4 cents per gallon in the Metropolitan Commuter Transportation region and 14 cents per gallon for the rest of the state) upon import of motor fuel. This amount of prepaid tax has not been modified since 2006, when the price of gasoline was approximately $2.50 per gallon.
Due to the fact that fuel prices have increased since the current prepaid rates were set, these amounts only provide for prepayment of approximately 40-60% of the local sales tax. Certain unscrupulous gas retailers take advantage of this differential by not paying their proper taxes. They benefit by committing fraud while placing law-abiding retailers at a competitive disadvantage. By requiring that the state sales tax and a larger share of the local sales tax be paid up front by distributors, this bill will ensure a fairer retail gas market while increasing revenue to our counties.
Prior legislative history
New bill.
Fiscal implications
None to the state. Increased revenue for county governments.
Effective date
Sixty (60) days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.