BILL NUMBER: S2190
SPONSOR: PALUMBO
 
TITLE OF BILL:
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
 
PURPOSE:
Provides a motor fuel tax exemption for sales of diesel motor fuel made
to commercial fishermen.
 
SUMMARY OF PROVISIONS:
This bill amends the tax law in order to eliminate the statute that
requires the payment and subsequent refund of the eight-cent diesel
excise tax and the sales tax on diesel fuel when sold to operators of
commercial fishing vessels. Under the current law, both taxes must be
paid by commercial fishermen, notwithstanding their exempt status from
these taxes. The commercial fishermen are then allowed to file for a
refund of these taxes from the Department of Taxation and Finance.
 
JUSTIFICATION:
The original intent of this policy, as it relates to commercial fishing
vessels, was to prevent tax evasion in the diesel fuel industry. Howev-
er, it was not intended to be burdensome to many of the state's indus-
tries such as commercial fishermen and their fuel distributors.
The implementation of this law has caused a great deal of hardship for
commercial fishermen. A fisherman operating a trawler vessel burning
85,000 gallons per year, must advance approximately $13,600 annually in
taxes to the State. The negative financial consequences of this cash
flow are a large burden for the commercial fishermen of this state.
The negative impacts of this law have also been carried over to the fuel
distributors of the commercial fishermen. Because of the payment
requirement, many fishermen are now purchasing their fuel at ports
outside of New York. This will result in the loss of thousands of
dollars in revenue for the state's fuel distributors. This legislation
would no longer require commercial fishermen to pay any excise or state
sales taxes for the purchase of diesel motor fuel.
 
LEGISLATIVE HISTORY:
2024 S.2091; 2022 S.5164/A.5815; 2020 S.3183/A.5815; 2017-18
S.1600/A.938; 2015-16 S.331/A.152; 2013-14 S.782B/A.138B; 2012 S.6879;
2009-10 A.1903A; 2007-08 A.989; 2005- 06 A.3854; 2003-04 A.1416; 2001-02
A.2289; 1999-00 A.2840A.
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
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
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 the amendments made by
section four of this act shall be subject to the expiration and rever-
sion 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.

Statutes affected:
S2190: 282-a tax law, 282-a(3) tax law, 282-a(4) tax law, 301-b tax law, 1115 tax law