NY Tax L § 523 (2021)
2021 New York Laws TAX - Tax Article 21-A - Tax on Fuel Use 523 - Fuel Use Tax.

§  523.  Fuel  use tax. (a) Imposition. There is hereby imposed on and after January first, nineteen hundred ninety-six a tax on fuel  use  for the  privilege  of operating any qualified motor vehicle upon the public highways of this state.  (b) Rate of tax. The tax  imposed  by  this  section  shall  be  at  a composite  rate  determined  by adding together (1) a fuel tax component which shall be equal to the applicable rate per gallon in  effect  under the  taxes  on  motor  fuel  and  diesel  motor  fuel imposed by article twelve-A of this chapter and (2) a sales tax component, which  shall  be equal  to  the  sum  of  (A)  a  state  sales  and  compensating use tax subcomponent, equal to the applicable rate per gallon  in  effect  under the sales and compensating use taxes on motor fuel and diesel motor fuel imposed  by  sections eleven hundred five and eleven hundred ten of this chapter as described in subdivision (m) of section eleven hundred eleven of this chapter  plus  (B)  a  local  sales  and  compensating  use  tax subcomponent, which shall be the lower of (i) the lowest applicable rate per  gallon in effect under the sales and compensating use taxes on such fuels in effect in any county of this state imposing a local  sales  and compensating  use  tax  on  a  cents  per  gallon  basis pursuant to the authority of subpart B of  part  one  of  article  twenty-nine  of  this chapter,  or  (ii)  the  equivalent rate per gallon based on the highest rate applicable to the receipts from the sale of a gallon of motor  fuel or  diesel motor fuel in effect in any locality of this state imposing a local sales and compensating use tax on a percentage rate basis  on  the sale  of  motor  fuel and diesel motor fuel pursuant to the authority of subpart B of part one of article twenty-nine of this chapter.  Provided, however,  that the total rate per gallon applicable to the receipts from the sale of a  gallon  of  such  fuels  imposed  under  clause  (ii)  of subparagraph  (B)  of paragraph two of this subdivision shall not exceed three percent. Such equivalent rate per  gallon  under  clause  (ii)  of subparagraph  B of paragraph two of this subdivision shall be determined as provided in subdivision (d) or (m) of section eleven  hundred  eleven of  this  chapter  and  the  schedules  prescribed  by  the commissioner pursuant to such subdivision (d), and shall  be  based  on  the  average price  per  gallon  (including all federal and state and any local taxes included in such price or imposed on the  use  or  consumption  of  such fuels  upon  which  the state and local sales and compensating use taxes are computed but determined without the inclusion of any state or  local sales  tax  on  receipts  from  sales of such fuels) paid by the carrier during the reporting period for all motor fuel  and  diesel  motor  fuel purchased for use in its operations either within or without this state. For purposes of clause (ii) of subparagraph (B) of paragraph two of this subdivision, the price for motor fuel and diesel motor fuel purchased by such  carrier  shall be deemed to be the prevailing price for motor fuel and diesel motor fuel, as established by the commissioner each  calendar quarter  pursuant  to  this section, applicable to the reporting period. The commissioner shall for each calendar quarter establish a  prevailing price  for  motor  fuel  and diesel motor fuel based on the prices being charged on any given day during the first fifteen days of  the  previous calendar  quarter  at  a  minimum  of  ten  selected  truck stops widely scattered throughout the state. The tax imposed by this section shall be computed by multiplying such composite rate by the amount of motor  fuel or  diesel  motor  fuel,  as  the  case may be, used by a carrier in its operations within this state during each reporting period. The amount of motor fuel and diesel motor fuel used in the operations of  any  carrier within  this  state  shall be determined by dividing the number of miles traveled in this state subject to tax under this section by the  average miles  per gallon for the type of fuel. Where the records of any carrier  are inadequate or incomplete, the qualified motor vehicles of a  carrier filing  returns  shall  be  deemed to have consumed, on the average, one gallon of diesel motor fuel for every four miles traveled or one  gallon of motor fuel for every three miles traveled unless substantial evidence discloses  that a different amount was consumed; provided, however, that if the commissioner enters into  a  cooperative  agreement  pursuant  to section  five  hundred  twenty-eight  of this article and such agreement prescribes a different average miles per gallon deemed to  be  consumed, the commissioner shall prescribe such different average.