Source: https://www.nysenate.gov/legislation/bills/2019/a3459
Timestamp: 2019-11-21 08:25:52
Document Index: 216156255

Matched Legal Cases: ['Art 21', '§530', '§171', '§99', '§ 530', '§  531', '§ 532', '§  533', '§  534', '§ 2', '§  99', '§ 3']

NY State Assembly Bill A3459
assembly Bill A3459
Relates to establishing a tax on carbon emissions and to establishing the carbon tax revenue fund
Get Status Alerts for A3459
Jan 29, 2019 referred to ways and means
A3459 (ACTIVE) - Details
Add Art 21-B §§530 - 534, amd §171, Tax L; add §99-ff, St Fin L
2015-2016: A8401
2017-2018: A3967
A3459 (ACTIVE) - Summary
Establishes a tax on carbon emissions and the carbon tax revenue fund; establishes an excise tax on carbon-based fuel sold in the state; establishes an initial rate of five dollars per ton of carbon.
A3459 (ACTIVE) - Bill Text download pdf
Introduced  by  M. of A. ORTIZ, SIMOTAS -- read once and referred to the
AN ACT to amend the tax law, in relation to establishing a tax on carbon
emissions; and to amend the state finance law, in relation  to  estab-
lishing the carbon tax revenue fund
Section 1. The tax law is amended by adding a new article 21-B to read
TAX ON CARBON EMISSION
SECTION 530. DEFINITIONS.
531. IMPOSITION AND RATE OF TAX.
532. EXEMPTIONS.
533. PENALTIES AND INTEREST.
534. DEPOSIT AND DISPOSITION OF REVENUE.
§ 530. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
(A) "CARBON-BASED FUEL" MEANS COAL, NATURAL  GAS,  PETROLEUM  PRODUCTS
AND  ANY  OTHER  PRODUCT  USED  FOR  FUEL THAT CONTAINS CARBON AND EMITS
CARBON DIOXIDE WHEN COMBUSTED; PROVIDED, HOWEVER, THAT CARBON-BASED FUEL
SHALL NOT INCLUDE ANY PRODUCT USED FOR  FUEL  THAT  IS  DERIVED  FROM  A
RESOURCE THAT IS LESS THAN ONE THOUSAND YEARS OLD IN ITS NATURAL STATE.
(B)  "DISTRIBUTOR" MEANS A PERSON WHO IMPORTS OR CAUSES TO BE IMPORTED
CARBON-BASED FUEL FOR USE, DISTRIBUTION, OR SALE WITHIN THE STATE, OR  A
PERSON  WHO  PRODUCES,  REFINES, MANUFACTURES, OR COMPOUNDS CARBON-BASED
FUEL WITHIN THE STATE FOR USE, DISTRIBUTION, OR SALE.
(C) "PETROLEUM PRODUCTS" MEANS PROPANE, GASOLINE,  UNLEADED  GASOLINE,
KEROSENE, NUMBER 2 HEATING OIL, DIESEL FUEL, KEROSENE BASE JET FUEL, AND
NUMBER 4, NUMBER 5 AND NUMBER 6 RESIDUAL OIL FOR UTILITY AND NON-UTILITY
USES,  AND  ALL PETROLEUM DERIVATIVES, WHETHER IN BOND OR NOT, WHICH ARE
LBD07529-01-9
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COMMONLY BURNED TO PRODUCE HEAT, POWER, ELECTRICITY OR MOTION  OR  WHICH
ARE COMMONLY PROCESSED TO PRODUCE SYNTHETIC GAS FOR BURNING.
(D)  "RETAIL  CUSTOMER" MEANS A PERSON WHO PURCHASES CARBON-BASED FUEL
FOR HIS OR HER OWN CONSUMPTION.
(E) "RETAIL PURCHASE" MEANS A PURCHASE OF CARBON-BASED FUEL MADE BY  A
PERSON FOR HIS OR HER OWN CONSUMPTION.
§  531.  IMPOSITION  AND  RATE  OF TAX. (A) THERE IS HEREBY LEVIED AND
IMPOSED A TAX AT A RATE OF  FIVE  DOLLARS  PER  TON  OF  CARBON  IN  ANY
CARBON-BASED FUEL THAT IS SOLD TO RETAIL CUSTOMERS IN THE STATE. THE TAX
SHALL INCREASE BY AT LEAST THE RATE OF ANNUAL INFLATION PLUS ONE PERCENT
FOR  THE FIRST TEN YEARS THAT THIS SECTION IS IN EFFECT, AND BY AT LEAST
THE RATE OF ANNUAL INFLATION THEREAFTER. THE DEPARTMENT SHALL  CALCULATE
THE TAX LIABILITY ASSOCIATED WITH ANY RETAIL PURCHASE BY MULTIPLYING THE
RATE  DESIGNATED  IN  THIS SECTION BY THE TOTAL AMOUNT OF CARBON IN EACH
CARBON-BASED FUEL SOLD TO RETAIL CONSUMERS IN THE STATE. FOR THE PURPOSE
OF CALCULATING THE TAX, THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION
SHALL  DETERMINE  THE PERCENTAGE OF CARBON IN EACH CARBON-BASED FUEL AND
REPORT THOSE PERCENTAGES TO THE DEPARTMENT.
(B) A DISTRIBUTOR SHALL PAY TO THE  COMMISSIONER  AN  EXCISE  TAX  PER
GALLON  DETERMINED BY THE DEPARTMENT PURSUANT TO SUBDIVISION (A) OF THIS
SECTION UPON EACH GALLON OF CARBON-BASED FUEL SOLD BY  SUCH  DISTRIBUTOR
IN  THE  STATE  DURING THE CALENDAR MONTH COVERED BY THE RETURN REQUIRED
PURSUANT TO SUBDIVISION (C) OF THIS SECTION. THE TAX IMPOSED UNDER  THIS
SECTION  SHALL  BE  COLLECTED  BY THE DISTRIBUTOR UPON COMPLETION OF ANY
SALE OR DELIVERY OF FUEL.
(C) EVERY DISTRIBUTOR THAT MAKES SALES SUBJECT TO THE TAX  IMPOSED  BY
THIS  SECTION  SHALL, ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, FILE
WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE  COMMIS-
SIONER,  SHOWING  ITS RECEIPTS FROM THE RETAIL SALE OF CARBON-BASED FUEL
DURING THE PRECEDING CALENDAR MONTH AND THE AMOUNT OF TAX  DUE  THEREON.
SUCH  RETURNS SHALL CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER
MAY REQUIRE.  EVERY DISTRIBUTOR REQUIRED TO FILE  A  RETURN  UNDER  THIS
SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSION-
ER  THE TOTAL AMOUNT OF TAX DUE ON ITS RETAIL SALES OF CARBON-BASED FUEL
FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN  IS  NOT  FILED  WHEN
DUE,  THE TAX SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO
§ 532. EXEMPTIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE TAX  IMPOSED
BY SECTION FIVE HUNDRED THIRTY-ONE OF THIS ARTICLE:
(A) CARBON-BASED FUEL SOLD TO THE UNITED STATES GOVERNMENT, ITS SUBDI-
VISIONS,  OR UNDER ANY OTHER CIRCUMSTANCES IN WHICH THE STATE IS WITHOUT
POWER TO IMPOSE THE TAX; AND
(B) CARBON-BASED FUEL SOLD BY A  DISTRIBUTOR  THAT  HAS  ALREADY  BEEN
SUBJECTED  TO THE TAX IMPOSED BY SECTION FIVE HUNDRED THIRTY-ONE OF THIS
ARTICLE, IF THE SALES INVOICE CLEARLY INDICATES THE AMOUNT OF FUEL  THAT
HAS ALREADY BEEN SUBJECTED TO THE TAX.
§  533.  PENALTIES AND INTEREST. (A) A DISTRIBUTOR WHO FAILS TO FILE A
RETURN OR TO PAY ANY TAX WITHIN THE TIME REQUIRED BY OR PURSUANT TO THIS
ARTICLE (DETERMINED WITH REGARD TO ANY EXTENSION OF TIME FOR  FILING  OR
PAYING) SHALL BE SUBJECT TO A PENALTY OF TEN PER CENTUM OF THE AMOUNT OF
TAX DETERMINED TO BE DUE AS PROVIDED IN THIS ARTICLE PLUS ONE PER CENTUM
OF  SUCH  AMOUNT  FOR  EACH  MONTH OR FRACTION THEREOF DURING WHICH SUCH
FAILURE CONTINUES AFTER THE EXPIRATION OF THE  FIRST  MONTH  AFTER  SUCH
STATEMENT WAS REQUIRED TO BE FILED OR SUCH TAX BECAME DUE, NOT EXCEEDING
THIRTY PER CENTUM IN THE AGGREGATE.
A. 3459                             3
(B)  IF  ANY  AMOUNT  OF  TAX  IS  NOT PAID ON OR BEFORE THE LAST DATE
PRESCRIBED IN THIS ARTICLE FOR PAYMENT, INTEREST ON SUCH AMOUNT  AT  THE
UNDERPAYMENT RATE SET BY THE COMMISSIONER OF TAXATION AND FINANCE PURSU-
ANT  TO  SUBDIVISION  TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF
THIS  CHAPTER  SHALL  BE  PAID FOR THE PERIOD FROM SUCH LAST DATE TO THE
DATE PAID, WHETHER OR NOT ANY EXTENSION OF TIME FOR PAYMENT WAS GRANTED.
INTEREST UNDER THIS SUBSECTION SHALL NOT BE PAID IF THE  AMOUNT  THEREOF
IS LESS THAN ONE DOLLAR.
§  534.  DEPOSIT  AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, AND
PENALTIES COLLECTED OR RECEIVED BY  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE  UNDER  THE  TAXES IMPOSED BY THIS ARTICLE SHALL BE DEPOSITED IN
THE CARBON TAX REVENUE FUND AND DISPOSED OF PURSUANT TO SECTION  NINETY-
NINE-FF OF THE STATE FINANCE LAW.
§ 2. The state finance law is amended by adding a new section 99-ff to
§  99-FF.  CARBON  TAX REVENUE FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE STATE COMPTROLLER AND COMMISSIONER OF  TAXATION
AND FINANCE A FUND TO BE KNOWN AS THE "CARBON TAX REVENUE FUND".
2.  SUCH  ACCOUNT  SHALL CONSIST OF REVENUES FROM ALL TAXES, INTEREST,
AND PENALTIES IMPOSED BY ARTICLE TWENTY-ONE-B OF THE TAX LAW.
3. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR,  THE  COMPTROLLER
ER  OF  THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF
THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE AMOUNT OF MONEY DEPOSITED  IN
THE  CARBON  TAX  REVENUE FUND DURING THE PRECEDING CALENDAR YEAR AS THE
RESULT OF REVENUE DERIVED PURSUANT TO ARTICLE TWENTY-ONE-B  OF  THE  TAX
4.  MONEYS  OF  THE  FUND MAY BE INVESTED BY THE STATE COMPTROLLER AND
INCOME FROM SUCH INVESTMENTS SHALL BE CREDITED TO THE FUND.
5. MONEYS OF THE FUND SHALL BE APPROPRIATED  BY  THE  LEGISLATURE  AND
PAID OUT PURSUANT TO THE TERMS OF SUCH APPROPRIATION.
§ 3. Paragraph a of subdivision 26th of section 171 of the tax law, as
amended  by section 1 of subpart D of part V-1 of chapter 57 of the laws
a. Set the overpayment and underpayment rates of interest for purposes
of  articles  twelve-A,   eighteen,   twenty   [and],   twenty-one   AND
TWENTY-ONE-B  of  this  chapter. Such rates shall be the overpayment and
underpayment rates of interest set pursuant to subsection (e) of section
one thousand ninety-six of this chapter, but the underpayment rate shall
not be less than seven and one-half percent per annum.  Any  such  rates
set  by  such commissioner shall apply to taxes, or any portion thereof,
which remain or become due or overpaid (other  than  overpayments  under
such  article twenty and not including reimbursements, if any, under any
of such articles) on or after the date on which such rates become effec-
tive and shall apply only with respect to interest computed  or  comput-
able  for  periods or portions of periods occurring in the period during
which such rates are in effect. In computing the amount of any  interest
required  to  be paid under such articles by such commissioner or by the
taxpayer, or any other amount determined by reference to such amount  of
interest, such interest and such amount shall be compounded daily.