What's happening
This bill exempts commercial fishing vessels from paying motor fuels and sales tax on diesel fuel used in their operations.
Why it matters
Reduces operating costs for commercial fishermen. By exempting commercial fishing vessels from paying motor fuels and sales tax on diesel fuel, the bill lowers a significant expense, potentially improving the economic viability of commercial fishing businesses and supporting jobs in the sector.
Levels the playing field with other fuel-tax exempt industries. The exemption aligns commercial fishing with other industries (like farming and air transport) that already benefit from fuel tax exemptions, addressing concerns about fairness in state tax policy for essential food-producing sectors.
May impact state tax revenues and local economies. While the exemption provides financial relief to fishermen, it also means decreased tax revenue for the state, which could affect funding for programs supported by fuel and sales taxes. However, it could boost local economies in fishing communities by increasing profitability and reinvestment.
Targets only qualified commercial fishing operations. The bill narrowly defines eligibility, ensuring that only diesel fuel used by licensed commercial fishermen operating commercial fishing vessels qualifies for the exemption, minimizing risk of broader abuse or unintended tax avoidance.
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Who cares
Headline styles
Tax Break for Fishermen Fuel
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
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.
No Fuel Tax for Fishermen
In Senate Committee · Investigations And Government Operations · Sponsor Kenneth P. LaValle
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1600 A. 938
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 10, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
IN ASSEMBLY -- Introduced by M. of A. THIELE -- Multi-Sponsored by -- M. of A. MURRAY -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing an exemption from the payment of the motor fuels tax and the sales tax on motor fuels used in the operation of commercial fishing vessels
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 3 of section 282-a of the tax law, as amended by section 3 of part W of chapter 59 of the laws of 2013, is amended to read as follows:
(b) The tax on the incidence of sale or use imposed by subdivision one of this section shall not apply to: (i) the sale or use of non-highway Diesel motor fuel, but only if all of such fuel is consumed other than on the public highways of this state (except for the use of the public highway by farmers to reach adjacent farmlands); provided, however, this exemption shall in no event apply to a sale of non-highway Diesel motor fuel which involves a delivery at a filling station or into a repository which is equipped with a hose or other apparatus by which such fuel can be dispensed into the fuel tank of a motor vehicle (except for delivery at a farm site which qualifies for the exemption under subdivision (g) of section three hundred one-b of this chapter); or (ii) a sale to the consumer consisting of not more than twenty gallons of water-white kerosene to be used and consumed exclusively for heating purposes; or (iii) the sale to or delivery at a filling station or other retail vendor of water-white kerosene provided such filling station or other retail vendor only sells such water-white kerosene exclusively for heating
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02091-01-7
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purposes in containers of no more than twenty gallons; or (iv) a sale of kero-jet fuel to an airline for use in its airplanes or a use of kerojet fuel by an airline in its airplanes; or (v) a sale of kero-jet fuel by a registered distributor of Diesel motor fuel to a fixed base operator registered under this article as a distributor of kero-jet fuel only where such fixed base operator is engaged solely in making or offering to make retail sales not in bulk of kero-jet fuel directly into the fuel tank of an airplane for the purpose of operating such airplane; or (vi) a retail sale not in bulk of kero-jet fuel by a fixed base operator registered under this article as a distributor of kero-jet fuel only where such fuel is delivered directly into the fuel tank of an airplane for use in the operation of such airplane; or (vii) the sale of previously untaxed qualified biodiesel to a person registered under this article as a distributor of Diesel motor fuel other than (A) a retail sale to such person or (B) a sale to such person which involves a delivery at a filling station or into a repository which is equipped with a hose or other apparatus by which such qualified biodiesel can be dispensed into the fuel tank of a motor vehicle; or (viii) the sale of previously untaxed highway Diesel motor fuel by a person registered under this article as a distributor of Diesel motor fuel to a person registered under this article as a distributor of Diesel motor fuel where the highway Diesel motor fuel is either: (A) being delivered by pipeline, railcar, barge, tanker or other vessel to a terminal, the operator of which terminal is registered under section two hundred eighty-three-b of this article, or (B) within such a terminal where it has been so delivered. Provided, however, that the exemption set forth in this subparagraph shall not apply to any highway Diesel motor fuel if it is removed from a terminal, other than by pipeline, barge, tanker or other vessel; or (ix) a sale of Diesel motor fuel to a "commercial fisherman", as such term is defined in subdivision (i) of section three hundred of this chapter, at retail under the circumstances set forth in paragraph one of subdivision (g) of section three hundred one-c of this chapter, and where such commercial fishing vessel is operated by a commercial fisherman.
§ 2. Subdivision 4 of section 282-a of the tax law, as amended by section 5 of part K of chapter 61 of the laws of 2011, is amended to read as follows:
4. The tax imposed by this section on Diesel motor fuel shall be passed through by the seller and included as part of the selling price to each purchaser of such fuel. Provided, however, the amount of the tax imposed by this section may be excluded from the selling price of Diesel motor fuel where (i) a sale of Diesel motor fuel is made to an organization described in paragraph (a) of subdivision three of this section solely for the purpose stated therein; (ii) a sale of non-highway Diesel motor fuel is made to a consumer but only if such non-highway Diesel motor fuel is not delivered to a filling station, nor delivered into a storage tank which is equipped with a hose or other apparatus by which such fuel can be dispensed into the fuel tank of a motor vehicle; or (iii) the sale to or delivery at a filling station or other retail vendor of water-white kerosene provided such filling station or other retail vendor only sells such water-white kerosene exclusively for heating purposes in containers of no more than twenty gallons; or (iv) a sale of kero-jet fuel is made to an airline for use in its airplanes; or (v) a sale of Diesel motor fuel is made to a "commercial fisherman", as such term is defined in subdivision (i) of section three hundred of this chapter, at retail under the circumstances set forth in paragraph one of
S. 1600 3 A. 938
subdivision (g) of section three hundred one-c of this chapter, and where such commercial fishing vessel is operated by a commercial fisherman.
§ 3. Section 301-b of the tax law is amended by adding a new subdivision (j) to read as follows:
(j) Sales or uses of diesel motor fuel and residual petroleum product for commercial fishing. Diesel motor fuel or residual petroleum product sold to or used by a "commercial fisherman", as such term is defined in subdivision (i) of section three hundred of this article, at retail under the circumstances set forth in paragraph one of subdivision (g) of section three hundred one-c of this article, and where such commercial fishing vessel is operated by a commercial fisherman.
§ 4. Subdivision (j) of section 1115 of the tax law, as amended by section 41 of part K of chapter 61 of the laws of 2011, is amended to read as follows:
(j) The exemptions provided in this section shall not apply to the tax required to be prepaid pursuant to the provisions of section eleven hundred two of this article nor to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article with respect to receipts from sales and uses of motor fuel or diesel motor fuel, except that the exemptions provided in paragraphs nine and forty-two of subdivision (a) of this section shall apply to the tax required to be prepaid pursuant to the provisions of section eleven hundred two of this article and to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article with respect to sales and uses of kero-jet fuel, CNG, hydrogen and E85, provided, however, the exemption allowed for E85 shall be subject to the additional requirements provided in section eleven hundred two of this article with respect to E85 and except that the exemption provided in paragraph twenty-four of subdivision (a) of this section shall apply to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article with respect to sales and uses of diesel motor fuel used in the operation of a fishing vessel as described in paragraph twenty-four of subdivision (a) of this section. The exemption provided in subdivision (c) of this section shall apply to sales and uses of non-highway diesel motor fuel but only if all of such fuel is consumed other than on the public highways of this state. The exemption provided in subdivision (c) of this section shall apply to sales and uses of non-highway diesel motor fuel for use or consumption either in the production for sale of tangible personal property by farming or in a commercial horse boarding operation, or in both but only if all of such fuel is consumed other than on the public highways of this state (except for the use of the public highways to reach adjacent farmlands or adjacent lands used in a commercial horse boarding operation, or both).
§ 5. Subdivision (j) of section 1115 of the tax law, as amended by section 41-a of part K of chapter 61 of the laws of 2011, is amended to read as follows:
(j) The exemptions provided in this section shall not apply to the tax required to be prepaid pursuant to the provisions of section eleven hundred two of this article nor to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article with respect to receipts from sales and uses of motor fuel or diesel motor fuel, except that the exemption provided in paragraph nine of subdivision (a) of this section shall apply to the tax required to be prepaid pursuant to the provisions of section eleven hundred two of this article and to the taxes imposed by sections eleven hundred five and eleven hundred ten of
S. 1600 4 A. 938
this article with respect to sales and uses of kero-jet fuel and except that the exemption provided in paragraph twenty-four of subdivision (a) of this section shall apply to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article with respect to sales and uses of diesel motor fuel used in the operation of a fishing vessel as described in paragraph twenty-four of subdivision (a) of this section. The exemption provided in subdivision (c) of this section shall apply to sales and uses of non-highway diesel motor fuel but only if all of such fuel is consumed other than on the public highways of this state. The exemption provided in subdivision (c) of this section shall apply to sales and uses of non-highway diesel motor fuel for use or consumption either in the production for sale of tangible personal property by farming or in a commercial horse boarding operation, or in both but only if all of such fuel is consumed other than on the public highways of this state (except for the use of the public highways to reach adjacent farmlands or adjacent lands used in a commercial horse boarding operation, or both).
§ 6. This act shall take effect on the first day of a sales tax quarterly period, as described in subdivision (b) of section 1136 of the tax law, next commencing at least ninety days after this act shall have become a law; sections four and five of this act shall apply to sales made under and uses occurring on or after the dates such sections four and five shall have taken effect, respectively, although made or occurring under a prior contract; and provided further that such amendments made by section four of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 19 of part W-1 of chapter 109 of the laws of 2006, as amended, when upon such date the provisions of section five of this act shall take effect.
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