What's happening
This bill allows retroactive reimbursement of petroleum business tax on highway diesel used in farm production back to January 1, 2012.
Why it matters
Provides financial relief to farmers. by allowing them to claim petroleum business tax reimbursements for diesel used in farm production as far back as January 1, 2012, potentially resulting in significant retroactive refunds.
Waives a key administrative hurdle. the “prior clearance” usually required for tax reimbursement—making it easier for farmers to claim these refunds for past fuel use, as long as they have documentary proof.
May encourage better record-keeping and administrative compliance. among farmers, since proof of payment and usage for the exempt period will be required to access this benefit.
Could impact state tax revenues and budgets. , as the state may need to process and pay out a large number of retroactive claims, affecting fiscal planning and resource allocation.
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Who cares
Headline styles
Refund Diesel Tax for Farmers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- 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.
Refund Diesel Tax for Farms
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 6071 A. 7716
2017-2018 Regular Sessions
SENATE - ASSEMBLY
May 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 -- read once and referred to the Committee on Ways and Means
AN ACT to amend part AA of chapter 59 of the laws of 2015, amending the tax law relating to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production, in relation thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2 of part AA of chapter 59 of the laws of 2015, amending the tax law relating to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production, is amended to read as follows:
§ 2. This act shall take effect immediately; and shall apply to use or consumption occurring on or after January 1, 2012 and consumers of highway diesel motor fuel shall be entitled to reimbursement of tax paid pursuant to article 13-A of the tax law; provided, however, that the commissioner of taxation and finance shall waive the prior clearance required under subdivision (f) of section 301-c of the tax law for such use or consumption occurring prior to the effective date of this act, as long as such consumers provide documentary proof, sufficient to show that the tax on the highway diesel motor fuel was paid for the exempt use or consumption during the exempt period.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04118-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend part AA of chapter 59 of the laws of 2015, amending the tax law relating to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used in farm production, in relation thereto
Purpose
Makes the provisions of section 2 of part AA of Chapter 59 of the Laws of 2015, amending the tax law relating to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used for farm production applicable to use or consumption occurring on or after January 1, 2012 and consumers of tax paid pursuant to article 13-a of the tax law.
Summary of provisions
Makes the provisions of section 2 of part AA of Chapter 59 of the Laws of 2015, amending the tax law relating to allowing a reimbursement of the petroleum business tax for highway diesel motor fuel used for farm production applicable to use or consumption occurring on or after January 1, 2012 and consumers of highway diesel motor fuel shall be entitled to reimbursement of tax paid pursuant to article 13-a of the tax law; provided, however, that the Commissioner of Taxation and finance shall waive the prior clearance required under subdivision (f) of section 301-c of the tax law for such use or consumption occurring prior to the effective date of this act, as long as such consumers provide documentary proof, sufficient to show that the tax on the highway diesel fuel was paid for the exempt use or consumption during the exempt period.
Justification
New York Farmers are exempt from paying tax on highway diesel motor fuel used in the production of agricultural crops. In years past, farmers who have purchased and used taxable diesel fuel for farm production methods have always been able to apply for reimbursement from New York State for that portion used for production purposes. In the past few years, New York State Department of Taxation and Finance has misinterpreted the exemption allowed for under New York State Law and has required some farmers to return the reimbursement. In 2015, New York took corrective measures to fix this technicality by passing legislation, however the corrective legislation did not allow for farmers who were penalized to get their taxes back. This measure will allow those farmers to be reimbursed for the exemption they should have had all along as is the intent of the law.
Legislative history
2016 S.7951A/A.10456A
Fiscal implications
TBD
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.