Mr. Byron Hoffman 

Acting Director, Airport Compliance & Management Analysis 

Federal Aviation Administration 

800 Independence Avenue SW 

Washington, DC 20591 

Re: FAA Revenue Use Policy 

New York Action Plan 

Dear Mr. Hoffman: 

Thank you for allowing New York State an extension of time to submit our action plan to 

bring the State into conformity with your Aviation Fuel Revenue Use Policy. 

On April 13 2016, Governor Cuomo signed into law Part Z of Chapter 60 of the Laws of 

2016 (enclosed), which brings New York into compliance with the Revenue Use Policy. As we 

previously represented, New York has two taxes that apply to aviation fuel -the Fuel Excise 

Tax and the State and Local sales taxes. The State portion of the sales tax is grandfathered, 

because the rate is the same rate as was in effect on December 30, 1987, and the base of the 

tax has not changed since it first took effect on August 1 , 1965. 

Chapter 60 brings the local portion of the sales tax into conformity by repealing the 

authority for localities to impose sales tax on aviation fuel. This repeal takes effect on 

December 1, 2017. 

Chapter 60 also conforms the fuel excise tax to the Revenue Use Policy, effective 

December 1, 2017. This is accomplished by establishing a new "aviation purpose account," into 

which all revenues collected from the fuel excise tax on aviation fuel will be deposited. Monies 

of this fund may only be used for the purposes authorized by the Revenue Use Policy. The 

creation of the new fund takes effect on April 1, 2017, and revenues from the fuel excise tax 

collected or received on and after December 1, 2017 would be directed to the aviation purpose 

account. 

W /\ Harrim<Jn Ci!mpus, 1\II.Jiiny NY 17"7 I (518) 530 5300 I www.l<'lx.ny.gov 

Encc. 

IN SENATE -- A BUDGET BILL, submitted by the Governor pursua:1t to article seven of the Constitution -- Eead twice and ordered printed, and 

when printed to be committed to the Committee on Finance -- ~::om;ni~tee 

discharged, bill amended, ordered reprinted as amended and recorrJnittej 

to said committee coMnittee discharged, bill amended, ordered 

reprinted as amended and recommi~ted to said committee -- committee 

discharged, bill amended, ordered reprinted as amended and recomrrdtted 

to said comJni ttee 

IN ASSEMBLY --A BUDGET BILL, submitted by the Governor pursuant. to 

article seven of the Constitution -- read once and referred Lo t:he 

Committee on \'lays and Means -- committee dischdrged, bill amende:::!, 

ordered reprinted as amended and recommitted to said cowmi'.:.tee ~­ again reported from said committee with amendments, ordered reprintF?d 

as amended and recommitted to said committee ~~ again reported frDm 

said committee with amendments, :::>rdered reprinted as amended an-::! 

recommitted to said committee 

AN ACT to amend the real property tax law and the tax la1·1 1 in r•~lation 

to transitioning the school tax relief (STAR) exemption into a 

personal income tax credit (Part A); intentionally omitted (Part B); 

intentionally omitted (Part C); to amend the real property tax lat-.', in 

relaLion to allowing applications for exemptions to be filed after the 

taxable status date in certain cases (Part D); to amend the tax lah' 

and :::he administrative code of r:he city of New York, in relation to 

establishing a nevi school tax reduction credit for residents of a ci Ly 

Hith a population over one million (Part: E); to amend the real property tax law, in relation to authorizing the commissioner of t.axati0n 

and finance to make direct payments of STAR tax savings to propert· y 

owners in certain cases (Part F); to amend chapter 61 ot the laws of 

2011, amending the real property ten: la'tl and other lat.,rs rela+_ing IJJ 

establishing standards for electronic tax administration, in relation 

to the effectiveness thereof (Part G); to an1end the public ho·J.sin·;r 

la11, in relation to extending the credit against income tax for 

persons or entities investing in l01·1~income housing (Part H); to amend 

the tax law, in relation to extending the hire a veteran credit for an 

additional tv10 years (Part I); to amend the tax law, in relatior. 1(1 

extending the empire state commercial production tax credit {Part J); 

EXPLANATION~-!1atter in italics (underscored) i_s nr=w; matter .i.n brackets 

is old law to be omitted. 

~Bt112674-C~-6 
Lax credit permanent (Part L); to amend part N of chapter 61 of the 

laws of 2005 amending the tax laH reLH .. ing to certain transactions and 

related information and relating to the voluntary compliance initiative, in relation to extending the expiration thereof (Part H); to 

amend the tax law, ir, relation to e:{tending the clean heating fuel 

credit. for three years and updating the credit to reflect new minimum 

biodiesel fuel thresholds (Part N); to amend the economic development 

lat<I and the tax in relation to extending the e:.;celsior jobs 

program for five years (Part 0); to amend the tax law and the administrative code of the city of New York, in relation to making 

corrections to the corporate tax reform provisions (Part P); to amend 

the tax law and the administrative code of the city of Ne1·1 York, in 

relation to the time for filing reports (Part Q); intentionally omitted (t-·art Rl; intentionally omitted (Part S); intentionally omitted 

(Part T); tO amend chapter 109 of the lat·Js of 2006 amending the tax 

la•:: and other laws relating to providing exemptions, reimbursemen-cs 

and credits from various ta:{CS for certain alternative fuels, in 

relation to extending the alternative fuels tax exemptions for five years (Part U); to amend the tax law, in relation to exempting from 

alcoholic beverage tax certain alcoholic beverages furnished at no 

charge by certain licensees to customers or prospecti'Je customers at a 

tasting held in accordance 1-.1ith the alcoholic beverage control la'N, 

and tc expand the beer production credit to include v.1ine, liquor and 

c.ider. (Fart V); intentionally omitted (Part W}; to amend the tax law 

and '::he administrative code of the city of Ne\•1 York, in relation to allO'tling room remarketers to purchase occupancies from hotel operators 

exem[.!t from sales tax under certain circumstances (Part X); to amend 

the tax la\·.', in relation t.o charitable contributions and charitable 

activities being considered in determining domicile for estate tax 

purposes (Part Y); to amend the state finance la1<1, in relation to 

creating the aviation purpose account and ensuring that the funds 

deposited in the aviation purpose account are used for airport 

improvement projects; to amend the tax lavv, in relation to providing 

for the distribution of revenues under section 301-e of such law; to 

exempt sales of fuel sold for use in commercial aircraft and general 

aviation aircraft from the prepayment of sales tax imposed pursuant to 

authority of section 1102 of such lav1; and to exclude sales of 

fuel sold for use in commercial aircraft and general aviation aircraft 

from the operation of sales and use taxes imposed pursuant to the 

authurity ot section 1210 ot such la1<1 (Part Z); intentionally omitted 

(Part Al'.); to amend the racing, pari-mutuel '·"agering and breeding law, 

in relation to increasing racing regulatory fee (Part BB); to amend 

"::he pari-mutuel wa9ering and breeding la1<1, in relation to the 

Liming of harness trc.ck reimbursements and other technical amendments 

(Part CC); tu amend the tax law, in relation to the payment of 

vendors' tees (Part DO); t.o amend the tax law, in relation to vendor 

fees at vendor tracks (PartEE); "to amend the racing, pari-mutuel 

\·.tagerinq and breeding law, ir, relation to licenses for simulcast 

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,,~ tax loll~, ir. 

relation to capital a1-1ards to vendor tracks (Fart GG); t.o amend the 

state finance la1tl, in relation to allocations from the comrr,ercial 

gaming revenue fund; to amend the t01~: la1~, in relation to cr;mmissions 

payable to certain vendor racetracks (Part HHI; to amend the tax lat·J, 

in relation to further clarifying disclosure procedures re1arding medical marihuana (Part II) ; to amend the real properi~ y ':-ax law, in 

relation to STAR recoupment program (Part ~>J); to amend the t-on: law 

and the state finance la'N, in relation to the fees associated wit.h a 

certificate of registration and decal imposed by article 21 of the tax 

la'.~ for certain vehicles operating on public highways in NevJ York 

state (Part KK); to amend the tax la\"J, in relation to mui-:ing corrections to the corporate tax reform provisions (Part LL); to amend 

the tax latv, in relation to the real property ta~~ credit for manu.:acturers (Part MM); to amend the t:ax la>·i and the administrative code of 

the city of ne1-1 York, in relation to the value of leased real property (Part NN); to amend the racing, pari-mutuel ~~agering and breeding lau, in relation to health insurance for jockeys (Part 00); to amend the 

racing, pari-mutuel 1-1agering and breeding law, in relation to the Nev1 

York Jockey Injury Compensation Fund, Inc. (Part PP); to amend the 

economic development la1·1 and the tax la\"J, in relation to the economic 

transformation and facility redevelopment program tax credit (Part 

QQ); to amend the tax law, in relation to creating a farm workforce 

relention credit (Part RR); to amend the tax lat~ and the racing, pari- mutuel wagering and breeding law, in relation to authorization to 

operate video lottery terminals and capital a1-1ards at certain facilities (Part SS); to amend the tax la1~, ln relation to providing a middle income tax cut under the personal income tax; to repeal subpar- agraph (B) of paragraph 1 of subsection (a), subparagraph {B) of para- graph 1 of subsection (b) and subparagraph (B) of para<Jraph l of subsection {c) of section 601 of the tax law relating to the imposi- t:ion of tax; and to repeal subsection (d-2) of section 601 of thp tax 

law relating to tax table benefit recapture for tax years att.-;r t1·10 thousand seventeen (Part TT); to amend the tax law, in relation to 

requiring 1-1holesalers of motor fuel to regis~:.er and file returns {Part UU); to amend the labor law, in relation to enhancing the urban youth jobs program tax credit by increasing the sum of money alloL~ated to 

programs four and five (Part VV); and to amend the tax la\"J, in 

relation to exempting commercial fuel cell electricity qeneratinq 

systems and electricity provided by such sources from the sales tax 

imposed by article 28 of the tax la'.~ and omitting such exemption from 

the taxes imposed pursuant to the authority of article 29 of the tax 

law, unless a locality elects othen~ise {Part Wtl) 
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such Part. Any provision in any section contained v1ithin a Part, including the effective date of the Part, 1-1hich makes a reference to a section 

"of tnis act", when used in connection with that particular component, 

shall be deemed to mean and refer to the corresponding section of the 

Part in 1-1hich it is found. Section three of this act sets forth the 

ger.eral effective date of this act. 

PJI.RT A 

Section 1. Paragraph (a) of subdivision 6 of section 425 of the real 

property t.ax as amended by chapter 6 of the la'HS of 2010, and as 

further amended by subdivision {b) of section 1 of part 1"1 of chapter 56 

of th& la\·IS of 2010, is amended to read as follows: 

(a} Ger,erally. All owners of the property who primarily reside thereon 

and who are not subJect to the of subdivision of 

must jointly file an application for exemption with the assessor 

on or before the appropriate taxable status date. Such application may 

be filed by mail if it is enclosed in a postpaid envelope properly 

addressed to the appropriate assessor, deposited in a post office or 

official depository under the exclusive care of the United States postal 

service, and postmarked by the United States postal service on or before 

the applicable taxable status date. Each such application shall be made 

on a form prescribed by the corrunissioner, which shall require the applicant or applicants to agree to notify the assessor if their primary 

residence changes their property is receiving the exemption. The 

assessor may request that proof of residency be submitted with the 

application. It the applicant requests a receipt from the assessor as 

proof of submission of the application, the assessor shall provide such 

re<:eipt. If such request is made by other than personal request, the 

applicant shall provide the a self-addressed postpaid 

en•.•elope in '.·Jhich to mail the receipt. 

§ 2. 425 of the real property tax law is amended by adding a 

ne1·1 subdivision 16 to rGad as follows: 

16. to personal tax (a) Beglnning 1<1ith 

assessment rolls used to levy school taxes for the t1<1o thousand 

Slxteen thousand seventeen school year, no application for an 

exemptlon under section may be or approved unless at least 

one of the applLcants held title to the property on the taxable status 

date of the assessment roll that was used to levy school taxes 

for the two thousand flfteen -bJo thousand school year and the 

property was granted an pursuant to this section on that 

assessment roll. In the event an submitted to the 

assessor that cannot be approved due to restriction, the assessor 

shall the appllcant that he or she lS required by law to deny the 

applicatlon, but that, lieu of a STAR exemption, the appllcant may 

clalm the personal tax credit authorized by subsection (eee) of 

hundred sLx of the tax Lf eligible, and that the 

cant may contact the department of taxation and finance for further 
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n subd1vision seven of section one 

hundred seventy-nine-q of the state finance law, shall not be used 1n 

any manner to determi ne where an 1ndividua l is domiciled at the t1me of 

h is or her d eath. 

§ 3 . This act shall take effect immediately . 

PART Z 

Section 1 . Subdivision 2 of section 89- b o f the state finance law, as 

amended by chapter 56 of the laws of 1993 , is amended to read as 

follows : 

2 . The dedicated highway and bridge trust fund shall consist of [t~e] 

three accounts: (a) t h e s p eci al obligation reserve and p ayment account; 

[ art.-ei] (b) the 

h ighway a nd bridge capital accou nt; and (c) the aviation 

purpose account. Moneys i n each accoun t shall be kept separate and n ot 

commingled with any other moneys in the custody of the comptroller . 

§ 2 . Section 89- b of the state finance law is amended by adding a new 

subdivision 4- a to read as follows : 

4-a. (a) The aviation p urpose account shall consist of all moneys 

requ1red to be deposi ted by sect1on three hundred twelve of t he tax law 

and any other moneys credited or transferred thereto from any o ther 

fund, account or source. 

(b) Moneys 2n the aviation p urpose account shall b e util1zed for 

airports and aviation facil1ties and equipment and related proJects, 

i ncluding but not l1mited to the acquisit1on of real or tangible 

personal property, construction, reconstruction, reconditioning, preservation, maintenance or improvement of airp ort or aviation capital facili ties and noise mitigation projects, and any other p urpose not prohibit- ed by federal law. 

§ 3 . Section 312 of t h e t ax law, as amended by section 32 of part K of 

chapter 61 of the laws of 2011 , is amended t o read as f ollows: 

§ 312 . Deposit and disposition of revenue .-- (a) Except as otherwise 

provided , o f all taxes, interest and penal ties collected or received on 

or after April first , two thousand one , from the taxes imposed by see~iefl~ ] section three hundred one- a a~h

~-ee-hund

ed-ene-e ] o f this 

article , (i ) initially e ight y and three- t enths percent shall be d eposited, as prescribed by s ubdivis i on (d) o f section three 

h undred one-j of 

this article a nd (ii) n i neteen and seven-tenths percent shall be dep osited in such mass transportation operating assistance fund to the credi t 

of the metropolitan mass transportation ope r ating assistance account and 

the public t r ansportation systems operating assistance account the reof 

in the manner p rovided by subdivisi on eleven of section one hundred 

e ighty-two- a o f this chapter . Provided , f urther t hat on or before the 

twe n ty- fifth day of each mon th commencing with April , two thousand one , 

the comptr oller shall deduct t he amount of six hundred twenty-five thousand dollars prior to any deposit or disposition of the taxes, interest, 

and penalties collected or received pursuant to such sect~~s] sect1on 

three hundred one-a ane--~A£ee-h~

er~ne-e) and shal l deposit such 
1~ troller shall forthwith, after receiving such certificate, deduct the 1::.- amoun~ o:t: such credit so certified by the commissioner prior to any 

l3 deposit or disposition of the taxes, interest and penalties collected or 

14 received pursuant to such [s-ect:t-ons] sectl.on three hundred one-a [anti 

15 three- fl<Ntdred <.:n'>e--e] and shall pay such amount so certified and deducted 

16 inr.:o the statG treasury to the credit of the general fund. Also, subse17 quently, durir,g the fiscal year \~hen the commissioner becomes aware of l~ ~hanges or modifications with respect to actual credit usage, the 

19 commissioner shall, as soon as practicable, issue a certification 

2U setting forth the amount of any required adjustment to the amount of 

2i actual credit usage previously certified. After receiving the certif22 icate of the commissioner v1ith respect to actual credit usage or modifi23 cation of the same, the comptroller shall forthwith adjust general fund 

24 receipts and the revenues to be deposited or disposed of under this 

2S article to reflect the difference so certified by the co~~issioner. The 

26 commissioner shall not be liable for any overestimate or underestimate 

27 of the amount oi' the utility credit which has been accrued to reduce tax 

28 liability under such section one hundred eighty-six-a. Nor shall the 

29 .:::orr.missioner be liable for any inaccuracy in any certificate ~~ith 30 respect to the amount of such credit actually used or any required 

Jl adjustment 1~i th respect to actual credit usage, but the commissioner 

32 shall as soon as practicable after discovery of any error adjust the 

33 next certification under this section to reflect any such error. 

34 Prior to maKing deposits as provided in this section, the comptroller 

JS shall retain such amount as the cornnissioner may determine to be neces36 sary, subject to the approval of the director of the budge~, for reason37 dble co.sls of the department in administering and collecting the taxes 

Je deposited pursuant to this section and for refunds and reimbursements 

3Y 1-1~ th respect to such taxes, out of which the comptroller shall pay any 

40 refunds or reimbursements of such taxes to which taxpuycrs shall be 

"11. entitled. 

42 (b) Notwithstanding any other provis~on of law, all taxes, interest, 

43 and penalt~es collected or rece~ved on or after December first, two 

44 thousand seventeen from the taxes ~mposed by sectl.On three hundred one e 

45 of ~hl.s art~cle shall be deposited in the avl.at~on purpose account of 

46 the d.;,dlcated h~ghway and br~dge trust fund established by section 

4 ~· el.ghty n~ne b of the state finance law. 

48 § 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as 

49 amended by section 8 of part ltJ-1 of chapter 109 of the la1~s of 2006, is 

SO amended lo read as follows: 

51 il) Every distributor of motor fuel shall pay, as a prepayment on 

52 account :•t the taxes imposed by this article and put:suant to the author53 ity of article twenty-nine of this chapter, u tax on each gallon of 

54 motor fuel (i) 1~hich he imports or causes to be imported into this state 

S5 for us~, distribution, storage or sale in the state or produces, 

56 refines, manufdctures or compounds in this state or (ii) if the tax has 

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graph four of such subdivision for its Oltm CJ.se and consumption and 

except kero-jet fuel when imported by an airline for use in its 

airplanes, and except_ C:NG, and except hydrogen, and exc:ept t:f35 v,·!Jen 

delivered to a filling station and placed in a storage tar,% of such 

filling station for such E85 to be dispensed direcLly into a mot.or Yehicle for use in the operation of such vehiclB, and except avlatlon gasoline sold for use ln commerclal a1rcraft and general av1at1on a1rcraft. 

§ 4 a. Paragraph 1 of subdivision {a) of sect.ion 1102 of the t:_ax la\•,', 

as amended by chapter 261 of the lav1s of 1988, is amended r:o .read as 

follows: 

(l) Every distributor of motor fuel shall pay, as a prepaymen~ on 

account of the taxes imposed by this article and pursuant to the authority o.E article tt<~enty-nine or this chapter, a tax on each gallon or 

motor fuel {i) which he imports or causes to be imported into this state 

for use, distribution, storage or sale in the state or produces, 

refines, manufactures or compounds in this state or (ii) if the tax ha.s 

not been imposed prior to its sale in this state, which he sells {h1hich 

acts shall in regard to motor fuel hereinafter in this article be encompassed by the phrase "imported, manufactured or sold"), except •,.,rhen 

imported, manufactured or sold under circumstances which preclude the 

collection of such tax by reason of the Uniced States constitution and 

of the laws of the United States enacted pursuant thereto or when 

imported or manufactured by an organization described in paragraph cne 

or two of subdivision (a) of section eleven hundred sh:teen of this 

article or a hospital included in the organizations described in paragraph four of such subdivision for its own use and consumption and 

except kero-jet fuel t·1hen imported by an airline for use in it::; 

airplanes, and except aviation gasol~ne sold for use ~n comJn<2rr'lal 

a~rcraft and general av1at~on alrcraft. 

§ 5. Subparagraph (i) of p.:1ragraph 1 of subdivisior, (a) of section 

1210 of the tax law, as amended by section 3 of part Z of chapter 59 ot 

the la\vs of 2015, is amended to read as fo:lO\,'S: 

(i) Any local lat·J, ordinance or resolution enacted by any city of le.ss 

than one million or by any county or school district, imposing the -:axes 

authorized by this subdivision, shall, not11ithstanding any provision of 

law to the contrary, exclude from the operation of such local taxes all 

sales of tangible personal property for use or consumption directly and 

predominantly in the production of tangible personal property, gas, electricity, refrigeration or ::;team, for sale, by manufacturing, pr:JCessing, generating, assembly, refining, mining or extracting; and all 

sales of tangible personal property for use or consumption predominantly 

either in the production of tangible personal property, for sale, by farming or in a coi!h"'flercial horse boarding operation, or in bor:.h; and all 

sales of fuel sold for use ~n commerclal a~rcraft and general av1atlcm 

a~rcraft; and, unless such city, county or school district Glects other 

wise, shall omit the provision for credit or refund contained in clause 
~ subdivision (ee) of section eleven hundred fifteen of this chapter; 

·:o [and] (xiii} shall omit, unless such city elects othenlise, the 

ll exemption for commercial solar energy syscems equipment and electricity 

12 provided in subdivision (ii) of section eleven hundred fifteen of this 

13 chapter[. and (x~v) shall exclude from the operat~on of such local 

14 taxes all sales of fuel sold for use in commercial aircraft and general 

1'-, av~atJ.on a:~.rcraft. 

16 § 7. N0t~.vithstanding any law tc' the contrary, the comptroller is here 

17 by authorized and directed to tcansfer from the general fund for deposit 

18 into the mass t:ransp,)rtation operating assistance fund, pursuant to 

19 section 88-a of the state finance law and the dedicated mass transporta20 tion trust fund, pursuant to section 89-c of the state finance law, upon 

2l request of the director of the budget, on or before March 31 of each 

22 year, an amount equal to the amount of revenue received by the commis23 sioner of taxation and finance during the s~ate fiscal year from petro24 leum business taxes imposed pursuant to the authority of section 301-e 

:<:':i of the tax la1c~ that ~emuld have ot:her~e1ise been directed to such funds 

26 pursuant to section 312 of the tax law as such section was in effect on 

27 the day before this act became a la>·l. 

28 § i:l. This act shall take effect immediately, provided ho~e1ever that 

29 sections one, two and seven of this act shall take effect April 1, 2017; 

30 provided further that sections three, four, five and six of this act 

31 shall take effect December 1, 2017; and provided further that the amend32 mer,t:s to paragraph 1 of subdivision (a) of section 1102 of the tax law 

33 made by section four of this act shall be subject to the expiration and 

j4 reversion of such paragraph pursuant to section 19 of part \fl-1 of chap35 ter 109 o.r the la\·IS of 2006, as amended, when upon such date the 

36 pro\'i sions of section four-a of this ac<: shall take effect. 

37 PART AA 

38 Inr.:entlonally Omitted 

::\9 PART BB 

4CI S•2ction l. Subdivision 1 of section 236 of the racing, pari-mutuel 

41 \.'Jagering and breeding lav1, as amended by chapter 18 of the laws of 

42 2008, is amended to read as fol..i.O\)S: 

4J 1. Every corporar.ion authorized under this chapter to conduct pari-mu44 LGel betting at a race meeting on races run thereat, except as provided 

45 in section t1~0 hundred thirty-eight of this article 1~ith respect to the 

46 franchised corporation, shall distribute all sums deposited in any pari47 mGt.uel pool UJ the holders of 1-;inning tickets therein, providing such 

48 tickets be presented for payment: before April ficst of the year follow49 ing the year of their purchase, less an amount (whi-ch] that shall be ~0 established and retained by such racing corporation of between fourteen ~l to tl>.~enty [per -eeB-tum] percent of the total deposits in pools resulting ~L from regular on-track bets and less sixteen to twenty-two [pe-r- -c-ent--um]