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Sponsors
1 Co-sponsor
History
- Referred to rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to taxation of aviation fuel businesses; and to repeal subdivision (f) of section 301-e of such law relating thereto
Purpose
Taxes aviation fuel businesses for all kero-jet fuel they bring into the state; repealer
Summary of provisions
Section 1 amends subdivisions (c), (d) and (e) of Section 301-e of the Tax Law removing the limitation on taxation of kero-jet fuel, to such fuel that is consumed only within the State of New York.
Section 2 repeals subdivision (f) of Section 301-e of the Tax Law.
Section 3 sets forth the effective date of this legislation.
Justification
According to the Tax Foundation, New York currently ranks near the bottom of the states when it comes to its effective tax rate on commercial jet fuel, at #44 nationwide. In large part, this is due to a loophole in the Tax Law that limits taxation on this jet fuel to only the fuel that is burned within New York State, a large part of which is consumed during the takeoff stage of a flight. New York is one of only three states that taxes only the fuel that is estimated to be burned within state borders. along with New Jersey and Washington. Calculations suggest that taxing only the fuel burned in New York represents a collected tax of approximately .5 cents per gallon. when the stated tax rate of the Petroleum Business Tax is set at 6.8 cents per gallon. This represents a significant loss of tax revenue to the State. All airlines within New York paid a total of 58 million under the Petroleum Business Tax in 2015. suggesting that tens of millions of dollars of tax revenue went uncollected due to this loophole in that year alone.
Additionally, New York law also provides for a complete exemption from the Petroleum Business Tax for carriers that provide nonstop service between four or more cities in New York State. This loophole further exacerbates the loss of revenue to the State that is inherent in the provisions of Section 301-c of the Tax Law.
Prior legislative history
New bill.
Fiscal impact
This legislation presents no cost to the State, but instead will significantly increase annual revenues.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.