What's happening
This bill allows the tax commissioner to adjust prepayment rates for motor and diesel fuel sales tax in Nassau and Suffolk counties based on average retail prices to prevent sales tax refunds.
Why it matters
Allows the tax commissioner to adjust prepayment rates for sales tax on motor and diesel fuel in Nassau and Suffolk counties. , making these rates more responsive to actual average retail fuel prices in the region.
Aims to reduce unnecessary sales tax refunds. that occur when prepayment rates are set too high compared to actual sales tax owed, potentially saving administrative costs and reducing cash flow disruptions for fuel retailers.
Creates a more dynamic, fair system for calculating tax prepayment. by empowering the commissioner to update rates as market prices fluctuate, increasing accuracy and reducing discrepancies between tax collected and tax due.
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Who cares
Headline styles
Let Tax Chief Set Fuel Rate
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 4
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5074
2017-2018 Regular Sessions
IN SENATE
March 7, 2017
Introduced by Sen. BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to motor fuel and diesel tax in Nassau and Suffolk counties
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 2 of subdivision (e) of section 1111 of the tax law, as amended by section 1 of part LL of chapter 59 of the laws of 2014, is amended to read as follows:
(2) (i) Where the motor fuel is imported, manufactured or sold in, or diesel motor fuel is sold or used in the region referred to in subparagraph (i) of paragraph one of this subdivision, the tax required to be prepaid pursuant to section eleven hundred two of this article on each gallon of such fuel shall be seventeen and one-half cents.
(ii) Where motor fuel is imported, manufactured or sold in, or diesel motor fuel is sold or used in the region referred to in subparagraph (ii) of paragraph one of this subdivision, the tax required to be prepaid pursuant to section eleven hundred two of this article on each gallon of such fuel shall be twenty-one cents. Except when the commissioner determines that the price of motor fuel or diesel motor fuel results in the payment of sales tax refunds based on the amount of the prepayment provided for in this section, the commissioner, based on such determination, is authorized and empowered to prescribe from time to time, the amount of tax prepayment provided by this subparagraph for the second region to be collected upon each gallon of motor fuel and diesel motor fuel sold at retail in the second region. Such calculation by the commissioner shall be based on the average retail sales in the second region. The commissioner shall determine a prepayment rate which is approximately equal to the percentage of the prepayment rate otherwise applicable without causing refunds, based on the amount of tax prepay-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10317-01-7
S. 5074 2
ment, considering the regional average retail sales prices of such fuel in the second region. Such amended schedules with reference to the tax required by this subparagraph to be prepaid on motor fuel or diesel motor fuel, may fix the rate per gallon in multiples of one-tenth of one cent, depending, in the case of such fuel, on the average retail sales prices in the second region, where such fuel is, as the case may be, imported, manufactured, sold or used. Where schedules fixing the rate per gallon in multiples of one-tenth of one cent have been promulgated, the price shown on any metered pump or other dispensing device from which the fuel is sold to a purchaser of fuel to be delivered directly to any vehicle propelled by such fuel, shall include the tax at the prepayment rate so fixed.
(iii) Where motor fuel is imported, manufactured or sold in, or diesel motor fuel is sold or used in the region referred to in subparagraph (iii) of paragraph one of this subdivision, the tax required to be prepaid pursuant to section eleven hundred two of this article on each gallon of such fuel shall be sixteen cents.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to motor fuel and diesel tax in Nassau and Suffolk counties
Purpose or general idea of bill
This legislation would give the Commissioner of the Department of Taxation and Finance the authority to make periodic adjustments for wholesalers of motor fuel.
Summary of specific provisions
Section 1. Amends Section 111 of the tax law. Authorizes the Commissioner of Tax and Finance to make periodic adjustments for wholesalers of motor fuel.
Section 2. Effective date
Justification
In 2014, New York State established different wholesale prepaid tax rates based on region. We unfortunately found that wholesalers were avoiding paying higher prepaid tax rates by buying in one region to sell in another. Last year, we addressed this issue in the budget by requiring the registration and filing of monthly information returns.
Due to the low price in gasoline, some downstate wholesalers have been overpaying sales and use taxes. Refunds to wholesalers from the Department of Taxation and Finance are being delayed by six months or more. Many of these small businesses cannot afford to wait over half a year to receive their adjustments. Authorizing the Commissioner to adjust these receipts will expedite this lengthy refund process. Furthermore, this legislation will solve this overpayment problem without jeopardizing the regional tax rate program, as the price of gas continues to fluctuate.
Prior legislative history
New Bill
Fiscal implications
None.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.