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History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1097
- 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.
Computes sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk and Nassau counties
In Assembly Committee · Ways And Means · Sponsor Edward Hennessey
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7251
Title of bill
An act to amend the tax law, in relation to computing sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk county and Nassau county; and providing for the repeal of such provisions upon expiration thereof
Purpose or general idea of bill
Computes sales and compensating use tax on retail sales of motor fuel and diesel motor fuel at a rate of cents per gallon in Suffolk and Nassau counties.
Summary of specific provisions
Section one creates the name of the "County motor fuel tax pilot program." Section 2 amends subdivision (m) of section 1111 by adding a new paragraph 8 to require the commissioner of Tax and Finance to quarterly compute the sales tax rate in cents per gallon as determined by the cost of fuel in Nassau and Suffolk counties.
Section 3 amends subdivision (e) of section 1111 of the tax law by adding new subparagraph (iii) to require the sales and compensating use taxes imposed by subpart b of part one of article twenty-in shall be fully prepaid.
Justification
This bill will not increase the sales tax on motor fuel. It protects against county governments losing motor fuel sales tax revenue due to fraud or error by converting in these counties the local sales tax rate to a cents per gallon rate and requiring prepayment of these taxes.
By requiring all sales tax on motor fuel be prepaid, this legislation will ensure that the full county portion of the sales tax is collected by the distributor from the retailer up front, thereby protecting the counties from some retailers who are not currently paying the appropriate amount in local sales tax. As a result, it is anticipated that this legislation will increase sales tax revenue to these county governments.
Certain unscrupulous gasoline retailers that take advantage of this differential in collections and underpaying local sales taxes are placing law-abiding and fully-compliant retailers at a competitive disadvantage. Currently, the state requires 100% of the state's portion of the sales tax be paid by retailers to distributors and then remitted by distributor to the state. By requiring that the full state AND local sales tax be collected up front by distributors, this bill will ensure a fairer retail gas market while increasing revenue to these counties.
Further, the requirement to fully prepay all sales taxes will provide administrative relief to motor fuel retailers who currently need to calculate daily reconciliations and file sales taxes owed on a quarterly basis.
Prior legislative history
New bill.
Fiscal implications
None to the state. Increased revenue for county governments.
Effective date
This act shall take effect immediately and shall expire and be deemed repealed June 1, 2016.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.