4

w RK **~TE** Department

of Taxation and Finance AMANDA

HI LL ER Deputy Commissioner
and C ounsel

April 15

, 2016 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: Than

k you for allowing New York State an extension

of time to submit our action plan to bring the State into conformity

wi th 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 loca

l portion
of the sales tax into conformity

by repealing the authority
for loca lities 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 d ir ected to the aviation purpose account.

W /\ H arr

i m <Jn C i!m p u s , 1\

I I.Jii n y N Y 17"7

I ( 518) 530 5300

I www.

l <'lx.ny.govWe trust this satisfies the requirements

of the Revenue Use Policy. Thank you for your consideration.

AMANDA HILLER Deputy Commissioner
and Counsel Encc.i STATE OF NEW YORK S. 6409--C SENATE ASSEMBLY January 14, 2016 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**S.6409--C2A.9009--Ctoamendchapter604ofthelawsof2011,amendingthetaxlawrelatingtothe,:reditforcompanieswhoprovidetransportationtopeoplewithdisabilities,inrelat:iontoextendingtheexpirationofsuchprovision;andtoamendthe taxlaw,inrelationtotheapplicationofacreditforcompanies1<1hopro'lidetransportationtoindividualswithcisabilities(PartK);toamendpartIofchapter58ofthelawsof2006,amendingthetaxlawrelatingtoprovidinganenhancedearnedir.cometo.;.;credit,inrelationtomakingtheenhancEdearnedincomeLaxcreditpermanent(PartL);toamendpartNofchapter61ofthelawsof2005amendingthetaxlaHreLH..ingtocertaintransactionsandrelatedinformationandrelatingtothevoluntarycomplianceinitiative,inrelationtoextendingtheexpirationthereof(PartH);toamendthetaxlaw,ir,relationtoe:{tendingthecleanheatingfuelcredit.forthreeyearsandupdatingthecredittoreflectnewminimumbiodieselfuelthresholds(PartN);toamendtheeconomicdevelopmentlat<Iandthetaxinrelationtoextendingthee:.;celsiorjobsprogramforfiveyears(Part0);toamendthetaxlawandtheadministrativecodeofthecityofNewYork,inrelationtomakingcorrectionstothecorporatetaxreformprovisions(PartP);toamendthe taxlawandtheadministrativecodeofthecityofNe1·1York,inrelationtothetimeforfilingreports(PartQ);intentionallyomitted(t-·artRl;intentionallyomitted(PartS);intentionallyomitted(PartT);tOamendchapter109ofthelat·Jsof2006amendingthe taxla•::andotherlawsrelatingtoprovidingexemptions,reimbursemen-csandcreditsfromvariousta:{CSforcertainalternativefuels,inrelationtoextendingthealternativefuelstaxexemptionsforfiveyears(PartU);toamendthetaxlaw,inrelationtoexemptingfromalcoholicbeveragetaxcertainalcoholicbeveragesfurnishedatnochargebycertainlicenseestocustomersorprospecti'Jecustomersatatastingheldinaccordance1-.1iththealcoholicbeveragecontrolla'N,andtcexpandthebeerproductioncredittoincludev.1ine,liquorandc.ider.(FartV);intentionallyomitted(PartW};toamendthetaxlawand'::headministrativecodeofthecityofNe\•1York,inrelationtoallO'tlingroomremarketerstopurchaseoccupanciesfromhoteloperatorsexem[.!tfromsalestaxundercertaincircumstances(PartX);toamendthetaxla\·.',inrelationt.ocharitablecontributionsandcharitableactivitiesbeingconsideredindeterminingdomicileforestatetaxpurposes(PartY);toamendthestatefinancela1<1,inrelationtocreatingtheaviationpurposeaccountandensuringthatthefundsdepositedintheaviationpurposeaccountareusedforairportimprovementprojects;toamendthetaxlavv,inrelationtoprovidingforthedistributionofrevenuesundersection301-eofsuchlaw;toexemptsalesoffuelsoldforuseincommercialaircraftandgeneralaviationaircraftfromtheprepaymentofsalestaximposedpursuanttoauthorityofsection1102ofsuchlav1;andtoexcludesalesoffuelsoldforuseincommercialaircraftandgeneralaviationaircraftfromtheoperationofsalesandusetaxesimposedpursuanttotheauthurityotsection1210otsuchla1<1(PartZ);intentionallyomitted(PartAl'.);toamendtheracing,pari-mutuel'·"ageringandbreedinglaw,inrelationtoincreasingracingregulatoryfee(PartBB);toamend"::hepari-mutuelwa9eringandbreedingla1<1,inrelationtotheLimingofharnesstrc.ckreimbursementsandothertechnicalamendments(PartCC);tuamendthetaxlaw,inrelationtothepaymentofvendors'tees(PartDO);t.oamendthetaxlaw,inrelationtovendorfeesatvendortracks(PartEE);"toamendtheracing,pari-mutuel\·.tagerinqandbreedinglaw,ir,relationtolicensesforsimulcast((

S. 6409--C

3 facilities, sums relating

to track simulcast, simulcast

of out-ofstate thoroughbred races, simulcasting

of races run by
0

1 Jt-of-statf" harness tracks and distributions

of wagers;
to amend chapter 28:. of the laws of 1994 amending the radng, pari-mutuel 1-1ager:i.ng and breed- ing law and other **la>~s** relating

to simulcasting,

in relation

to the effectiveness thereof;

to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel **~-1agering** and breeding la1·1 and other laws relating

to simulcasting
and the imposition

of certain taxes,
in relation

to extending certain provision thereof; and t,o arr.er.d the racing, pari-mutuel wagering and breeding law, in relation

to extending certain provisions thereof (Port FF); to amend **u-,,~** 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)123456891011:203Hl516!)181920212223242526272829J(lc13/.333536378:394041.J243444647424950'JlS.6409--CA.9009--CThAPeopleoftheStateofNewYork,representedinSenateandAssembly,doenactasfollows:Section1.Thisactenactsintola1-1majorcomponentsoflegislation•.-,rhicharenecessarytoimplementthestatefiscalplanforthe2016-2017statefiscalyear.EachcomponentisI"Ihollycontained1-Iic:hinaPartidentifiedasPartsAthroughI'J'o'LTheeffectivedateforeachparticularprovisioncontainedwithinsuchPartissetforthinthelastsectionofsuchPart.Anyprovisioninanysectioncontainedv1ithinaPart,includingtheeffectivedateofthePart,1-1hichmakesareferencetoasection"oftnisact",whenusedinconnectionwiththatparticularcomponent,shallbedeemedtomeanandrefertothecorrespondingsectionofthePartin1-1hichitisfound.Sectionthreeofthisactsetsforththeger.eraleffectivedateofthisact.PJI.RTASection1.Paragraph(a)ofsubdivision6ofsection425oftherealpropertyt.axasamendedbychapter6ofthela'HSof2010,andasfurtheramendedbysubdivision{b)ofsection1ofpart1"1ofchapter56ofth&la\·ISof2010,isamendedtoreadasfollows:(a}Ger,erally.AllownersofthepropertywhoprimarilyresidethereonandwhoarenotsubJecttotheofsubdivisionofmustjointlyfileanapplicationforexemptionwiththeassessoronorbeforetheappropriatetaxablestatusdate.Suchapplicationmaybefiledbymailifitisenclosedinapostpaidenvelopeproperlyaddressedtotheappropriateassessor,depositedinapostofficeorofficialdepositoryundertheexclusivecareoftheUnitedStatespostalservice,andpostmarkedbytheUnitedStatespostalserviceonorbeforetheapplicabletaxablestatusdate.Eachsuchapplicationshallbemadeonaformprescribedbythecorrunissioner,whichshallrequiretheapplicantorapplicantstoagreetonotifytheassessoriftheirprimaryresidencechangestheirpropertyisreceivingtheexemption.Theassessormayrequestthatproofofresidencybesubmittedwiththeapplication.Ittheapplicantrequestsareceiptfromtheassessorasproofofsubmissionoftheapplication,theassessorshallprovidesuchre<:eipt.Ifsuchrequestismadebyotherthanpersonalrequest,theapplicantshallprovidetheaself-addressedpostpaiden•.•elopein'.·Jhichtomailthereceipt.§2.425oftherealpropertytaxlawisamendedbyaddingane1·1subdivision16torGadasfollows:16.topersonaltax(a)Beglnning1<1ithassessmentrollsusedtolevyschooltaxesforthet1<1othousandSlxteenthousandseventeenschoolyear,noapplicationforanexemptlonundersectionmaybeorapprovedunlessatleastoneoftheapplLcantsheldtitletothepropertyonthetaxablestatusdateoftheassessmentrollthatwasusedtolevyschooltaxesforthetwothousandflfteen-bJothousandschoolyearandthepropertywasgrantedanpursuanttothissectiononthatassessmentroll.Intheeventansubmittedtotheassessorthatcannotbeapprovedduetorestriction,theassessorshalltheappllcantthatheorshelSrequiredbylawtodenytheapplicatlon,butthat,lieuofaSTARexemption,theappllcantmayclalmthepersonaltaxcreditauthorizedbysubsection(eee)ofhundredsLxofthetaxLfeligible,andthatthecantmaycontactthedepartmentoftaxationandfinanceforfurther(i

1 2 3 4 5 6 7 B 9 10 11 12 13 14 1 5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 4 2 43 44 45 46 47 48 49 50 51 52 53 54

S

. 6409--C

47

A

. 9009 -- C ( f) Tax treatment

of char itab le contri but ions for determ

i ning dom2- cile. Notw it h stand ing any other prov

i sion of any other law to the contrary

, the making
of

a

f inanci al contr ibu t1on, gif t, bequest, donati on

o r any **oth~r f1~ancial**  1nstr ument or pledg

e in any amount or the donation

or loan of any object of any value,
or the volunteer ing, giving
or donat1on
of uncomp en sated tim e, or an y combina tion

c f the foregoing, considered

a charitable contribution under

s ubsec t1on (c) of sect ion one hundred seven ty of th e inte rnal

r evenue
co de

, or to

a not

for -profit organiza tio n, as defin ed in subd1vi sion seven of section one hundred seventy-nine-q

of the state finance law, shall not be used 1n any manner
to determ

i ne where an 1ndividu

a l is domiciled

at the t1me of h is or her

d ea th. § 3
. This act shall take ef fect imme diate ly

. PART

Z Section

1
. Subdivision

2 of se ction 89

- b o f the state finance law

, as amended
by chapte

r 56 of the laws of 1993

, is amended
to read as foll ows

: 2

. The ded icate

d highway and bridge trust fund shall consist
of **[t~e]** three accou nts: (a)

t h e
s p ec

i al obliga tion re serve and

p aymen

t accou nt; [ art.-ei

] (b) the

h ighway

a nd br idge cap ital acco

u nt; and (c) the aviation pu rpo se acco unt. Moneys

i n each acco

u n t shall be kept sepa rate and

n ot commingled with any other moneys in the custody
of the compt rol ler

. § 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 acco unt shall consist
of all moneys requ1r ed to be depos

i ted by sect1on three hundred twe lv e of

t he tax law and any other mon eys credited

or tran sf erred thereto from any

o ther fund, accou nt or source. ( b) Moneys 2n the aviatio

n
p urpose
ac cou nt shall

b e util1zed for airp orts and aviation facil1ti
es and equi pment and re lat ed pr oJects, i ncluding but not l1mited

to the acquisit1on

of real or ta ngible personal property, const ruction, reconst ruc tion, recondition ing, pr ese rvation, mainte nan ce or impr ove ment of air
p ort or aviation cap ita

l facil

i ties and noise mitigation projects, and any other

p urpose
no

t prohi bit- ed by federal law. § 3

. Sec tion 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 amende d t
o read as

f ollows

: § 312

. Deposit and disposition

of revenue

. -- (a) Except
as otherw ise provided

, o f all taxes

, interest and pena

l ties collect ed or received

on or after April first

, two thousand
one

, from the taxes impose

d by **see ~iefl~** 

**]** section three hu ndre

d one

- a **a~h ~-ee-hund**  **ed-ene-e**

**]** o f th is article

, (i
) ini ti ally

e igh

t y and three

- t enth

s percent sha ll be
d e pos it

ed

, as presc ri bed by

s u bdivi

s i on (d)

o f se ction three

h u ndred one-

j of this artic le

a nd (ii)

n i n et een and seve n-te nths percent shall be de p os

ited in such mass transportation operating assistance fund to the cred

i t of the metropolitan mass transp ortation ope

r ating assistance account and the public

t r ansport ation systems operating assistance accoun

t the re of in the manner

p rovide

d by subdivis

i on eleven
of section one hundred e ighty-two

- a o f this chapte

r
. Provided

, f urth er

t hat on or befor

e the tw e n ty

- fi fth day of each mon th commenci
ng with April

, two thousan

d one

, the compt

r oller shall deduct

t he amount of six hundred twenty-five thousand dollars prior to any depos it or disposition

of th e taxes, intere st, and penalties collec ted or receive

d pursuant

to such **sect ~~s]**  sect1on three hundred one-a
**ane --~**  **A£e e-h~**  **er~ne-**

**e)** and sha

l l depos it suchS. 6409--C

48

A. 9009--C l o.rr,ount
in the dedicated fund accounts pursuant

to subdivision

(d) of 2 sectior1 three hundred one-j
of this article. Provided, further, that 3 <:ommencing ,January fifteenth, nineteen hundred ninety-one,
and on or 4 hefore the tenth day of !·larch and the fifteenth day of June and Septem- ,'J ber of such year, the commissioner shall, based on information supplied 6 by tc.xpayers
and other appropriate sources, estimate the amount
of the 7 ut.ility credit authorized

by section three hundred one-d of this article 8 which has been accrued
to reduce tax liability under section one hundred 9 eighty-s.ix-a

of this chapter during the period covered
by such estimate 10 and certify

to the state comptroller such estimated amount. The comp- **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

(1 2 3 4 5 6 7 8 3 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 I 28 ' 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 S. 6409--C

49

A. 9\109--C not been imposed prior to its sale in this state, which he sells (1·1hich acts shall in regard
to motor fuel hereinafter

in this article
be encorrpassed by the phrase "imported, manufactured

or sold"), **excep~** whe::1 imported, manufactured

or sold under circumstances **~1hich** preclude tlle collection

of such tax by reason
of the United States constitution

and of the la'A'S of the United States enacted pursuant thereto
or when imported

or manufactured

by an organization described

in paraqrc.ph
one or two of subdivision

(a) of section eleven hundred sixteen
of this article
or

a hospital included

in the organi;::ations describe-d

in J=--ardgraph 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

{h

1 hich 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 clausec o. **6409-~C**

so 1 six of subdivision

(a) or subdivision 2 nineteen

of Lhis chapter.

A. 9009--C [d) of section eleven hundred 3

§ 6. Subparagraphs (xii) and (xiii) of paragraph

4 of subdivision

(a) 4 of section 1210 of Lhe tax 1a1v, as amended
by section

3 of part

Z of 5 chapter

59 of the laws of 2015, are amended and

a new subparagraph (xiv) 6 is added to read as follows: 7 (;<:ii) shall omit, unless such city elects othen-Iise,
the exemption
for S residential solar energy systems equipment and electricity provided

in **~** 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]