Establishes a twenty-five and three quarters cents per gallon cap on the amount of tax charged on the sale of motor fuel and diesel motor fuel; directs retail sellers to adjust the cost of motor fuel and diesel motor fuel to reflect such cap.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9498A
SPONSOR: Hunter
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a cap on the
amount of tax charged on the sale of motor fuel and diesel motor fuel;
and providing for the repeal of such provisions upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation will provide financial relief to New Yorkers by estab-
lishing a gasoline tax cap.
 
SUMMARY OF PROVISIONS:
Section 1. Amends tax law by adding a new section to cap sales tax on
motor fuel and diesel motor fuel. This cap shall be set at .25 cents per
gallon and will be equally distributed to the county and state govern-
ments. Retail sellers must adjust the sales tax to reflect this change.
Section 2. Effective Date. Will be repealed after one year.
 
JUSTIFICATION:
The United States is facing a rise in global energy prices and New York
State families are bearing the burden of the high cost of gasoline. This
legislation makes strides to lower the cost by introducing a cap on
sales tax to assist in the accessibility and affordability of gasoline
while maintaining state and local revenue to maintain crucial infras-
tructure.
New York State collects a 4 percent tax on gasoline and, while County
tax varies, it typically matches the state's 4 percent. This bill will
establish a cap of twenty-five and three quarters cents gallon total. Of
this, up to seventeen cents shall be allocated to the state and up to
eight and three quarters cents shall be allocated to the county or city
in which the filling station is located.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD
 
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
9498--A
IN ASSEMBLY
March 10, 2022
___________
Introduced by M. of A. HUNTER, WOERNER, JONES, LUPARDO -- read once and
referred to the Committee on Ways and Means -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the tax law, in relation to establishing a cap on the
amount of tax charged on the sale of motor fuel and diesel motor fuel;
and providing for the repeal of such provisions upon expiration there-
of
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 47 to read
2 as follows:
3 § 47. Cap on tax for the sale of motor fuel and diesel motor fuel.
4 (a) For purposes of this section:
5 (1) "Motor fuel" and "diesel motor fuel" shall have the same meaning
6 as section two hundred eighty-two of this chapter.
7 (2) "Filling station" shall have the same meaning as section two
8 hundred eighty-two of this chapter.
9 (3) "Retail sale" and "sold at retail" shall mean any sale of motor
10 fuel or diesel motor fuel at a filling station to a person for use in a
11 motor vehicle.
12 (4) "Retail seller" shall mean any person who sells motor fuel or
13 diesel motor fuel at retail.
14 (5) "Sale" shall have the same meaning as section two hundred eighty-
15 two of this chapter.
16 (b) Notwithstanding any other law, rule or regulation to the contrary,
17 there shall be established a cap on the tax of motor fuel and diesel
18 motor fuel of twenty-five and three quarters cents per gallon total. Of
19 the twenty-five and three quarters cents, up to seventeen cents shall be
20 allocated to the state and up to eight and three quarters cents shall be
21 allocated to the county or city in which the filling station is located.
22 The following New York state taxes shall equal seventeen cents in total-
23 ity:
24 (1) New York state petroleum business tax;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14995-06-2
A. 9498--A 2
1 (2) New York state spill tax;
2 (3) New York state petroleum testing fee;
3 (4) New York state excise tax;
4 (5) New York state sales tax; and
5 (6) any other New York state tax or fee enacted after the effective
6 date of this section and any like tax imposed pursuant to the authority
7 of article twenty-nine of this chapter.
8 (c) Notwithstanding any other law, rule or regulation to the contrary,
9 retail sellers shall adjust the cost of motor fuel and diesel motor fuel
10 to reflect the maximum twenty-five cents per gallon tax established
11 pursuant to this section.
12 § 2. This act shall take effect immediately and shall expire and be
13 deemed repealed one year after such date.