Provides a tax exemption for petroleum products that are purchased for heating purposes

BILL NUMBER:S1445

Title of bill

An act to amend the tax law, in relation to eliminating the residential restriction for heating exemptions

Purpose

To extend the current heating fuel tax exemption to non-residential users.

Summary of provisions

Section 1 and 2: Amends Subdivision D of Section 301-b and Subdivision A of Section 301-C of the Tax Law to make petroleum used for non-residential heating fully, instead of partially, tax exempt.

Section 3: Effective immediately

Justification

High energy costs cited by many businesses in New York State as a serious deterrent to economic growth and prosperity. These energy costs are continually rising and putting more of a strain on struggling small businesses in our State. It has become imperative that New York find ways to assist businesses with high energy costs if we wish for these entities to remain viable and active in our state. Therefore, this legislation seeks to offset costs by providing a full, instead of a partial, State tax exemption for fuel sold for nonresidential heating. It is estimated that this change would result in decreasing energy expenses for these small businesses by approximately $7 million annually. This is another measure that New York can undertake to improve our business climate and ensure that businesses remain in our State.

Legislative history

2014- S.3471

Fiscal implications for state and local governments

To be determined

Effective date

One hundred and eighty days after it shall have become law.